USAID contract to Tetra Tech ES, Inc. aims to bolster Moldova's energy security with $32.5M investment

Contract Overview

Contract Amount: $32,535,475 ($32.5M)

Contractor: Tetra Tech ES, Inc.

Awarding Agency: Agency for International Development

Start Date: 2022-03-03

End Date: 2026-09-30

Contract Duration: 1,672 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MESA S OBJECTIVE IS TO STRENGTHEN MOLDOVA S ENERGY SECURITY BY: 1 ADVANCING THE PHYSICAL AND MARKET INTEGRATION OF THE MOLDOVAN ENERGY SECTOR WITH EUROPE; 2 INCREASING RENEWABLE ENERGY INTEGRATION; AND 3 INCREASING INVESTMENT IN ENERGY EFFICIENCY.

Plain-Language Summary

Agency for International Development obligated $32.5 million to TETRA TECH ES, INC. for work described as: MESA S OBJECTIVE IS TO STRENGTHEN MOLDOVA S ENERGY SECURITY BY: 1 ADVANCING THE PHYSICAL AND MARKET INTEGRATION OF THE MOLDOVAN ENERGY SECTOR WITH EUROPE; 2 INCREASING RENEWABLE ENERGY INTEGRATION; AND 3 INCREASING INVESTMENT IN ENERGY EFFICIENCY. Key points: 1. Focuses on integrating Moldova's energy sector with Europe and increasing renewable energy and efficiency investments. 2. Contract awarded via full and open competition, suggesting a competitive bidding process. 3. Performance period spans over four years, indicating a long-term commitment to the objective. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 5. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services'. 6. This initiative aligns with broader US foreign policy goals of enhancing energy security in Eastern Europe.

Value Assessment

Rating: good

The contract value of $32.5 million over approximately four years appears reasonable for a complex international development project focused on energy sector reform. Benchmarking against similar USAID-funded energy security initiatives would provide further context, but the scope includes physical integration, market reform, and investment promotion, which are substantial undertakings. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent oversight to ensure costs remain aligned with the fixed fee and project objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The presence of multiple bidders suggests a healthy market for these types of technical and professional services.

Taxpayer Impact: Taxpayers benefit from a competitive process that is expected to yield the best value for the allocated funds, ensuring that the investment in Moldova's energy security is made efficiently.

Public Impact

The primary beneficiaries are Moldova and its citizens, who stand to gain from enhanced energy security and a more integrated energy market. Services delivered include technical assistance, market analysis, policy support, and project management for energy infrastructure and efficiency improvements. The geographic impact is focused on Moldova, with potential ripple effects on regional energy stability. Workforce implications may include local employment opportunities for technical experts and support staff within Moldova and potentially for US-based contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust monitoring to prevent cost overruns and ensure the fixed fee remains appropriate.
The long performance period necessitates sustained oversight to ensure objectives are met and adapt to changing geopolitical or energy market conditions.
Measuring the tangible impact of technical assistance on energy security and market integration can be challenging.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potential for value.
Clear objectives focused on critical areas like energy security and renewable integration.
Long-term commitment allows for sustained impact and development.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically addressing international development and energy policy. The market for such services is global, with significant demand from governments and international organizations seeking expertise in energy infrastructure, market reform, and security. Comparable spending benchmarks would involve looking at other USAID or similar international aid agency contracts focused on energy sector development in Eastern Europe or other developing regions.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not explicitly provided in the data. However, for contracts of this nature and value, prime contractors are often encouraged or required to engage small businesses for specialized services. Further analysis would be needed to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight is likely managed by USAID's contracting officers and program officials, who are responsible for monitoring performance, costs, and adherence to contract terms. Accountability measures would include regular reporting requirements from Tetra Tech ES, Inc., performance reviews, and potential site visits. Transparency is typically facilitated through contract award databases and public reporting on foreign assistance programs.

Related Government Programs

USAID Energy Programs
European Energy Security Initiatives
Moldova Economic Development Programs
International Renewable Energy Support

Risk Flags

Geopolitical Risk
Economic Volatility
Regulatory Uncertainty
Technical Integration Challenges
Potential for Cost Overruns (CPFF)

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $32.5 million to TETRA TECH ES, INC.. MESA S OBJECTIVE IS TO STRENGTHEN MOLDOVA S ENERGY SECURITY BY: 1 ADVANCING THE PHYSICAL AND MARKET INTEGRATION OF THE MOLDOVAN ENERGY SECTOR WITH EUROPE; 2 INCREASING RENEWABLE ENERGY INTEGRATION; AND 3 INCREASING INVESTMENT IN ENERGY EFFICIENCY.

Who is the contractor on this award?

The obligated recipient is TETRA TECH ES, INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $32.5 million.

What is the period of performance?

Start: 2022-03-03. End: 2026-09-30.

What is Tetra Tech ES, Inc.'s track record with USAID and similar international energy projects?

Tetra Tech ES, Inc. has a significant history of working with USAID and other government agencies on a wide range of projects, including energy, environment, and infrastructure development. Their portfolio often includes technical assistance, feasibility studies, policy development, and project implementation in various countries. For energy-specific projects, they have been involved in initiatives related to renewable energy integration, energy efficiency, grid modernization, and market restructuring. A detailed review of their past performance on similar USAID energy security contracts would reveal their success rates, client satisfaction, and ability to manage complex, multi-year international engagements within budget and schedule.

How does the $32.5 million contract value compare to similar energy security initiatives in Eastern Europe?

The $32.5 million contract value for a four-year initiative focused on Moldova's energy security appears to be within a reasonable range for large-scale international development projects of this nature. Similar initiatives by USAID or other development agencies in Eastern Europe or comparable regions often range from tens to hundreds of millions of dollars, depending on the scope, duration, and specific objectives. Factors influencing cost include the complexity of market integration, the scale of renewable energy targets, the extent of infrastructure investment required, and the level of technical expertise needed. Without specific comparable contract data, it's difficult to provide a precise benchmark, but the allocated amount suggests a significant commitment to addressing Moldova's energy challenges.

What are the primary risks associated with implementing energy security projects in Moldova?

Key risks in implementing energy security projects in Moldova include geopolitical instability, particularly concerning relations with Russia and the ongoing conflict in neighboring Ukraine, which can impact energy supply and transit. Economic volatility within Moldova can affect investment capacity and the ability to sustain reforms. Regulatory and political risks are also significant, as changes in government policy or the slow pace of reform can hinder progress. Technical risks involve the challenges of integrating aging infrastructure with modern European grids and the complexities of increasing renewable energy penetration. Furthermore, corruption and governance issues can impede effective project implementation and resource allocation. Finally, market risks, such as fluctuating energy prices and demand, can impact the long-term viability of the project's objectives.

How will the success of this contract be measured in terms of program effectiveness?

The effectiveness of this contract will likely be measured against the specific objectives outlined in the contract statement of work, which include advancing physical and market integration with Europe, increasing renewable energy integration, and boosting investment in energy efficiency. Key performance indicators (KPIs) could include the volume of energy traded across borders, the percentage of renewable energy in the national grid mix, the amount of private and public investment attracted to energy efficiency projects, and the reduction in energy import dependency. USAID's program monitoring and evaluation framework will be crucial in tracking progress against these KPIs, assessing the impact of technical assistance, and determining the overall success in strengthening Moldova's energy security.

What has been the historical spending trend for USAID energy security programs in Eastern Europe?

USAID has consistently allocated significant funding towards energy security programs in Eastern Europe, particularly in countries seeking to reduce reliance on single energy suppliers and integrate with European energy markets. Historical spending trends show a focus on diversifying energy sources, improving energy efficiency, developing natural gas infrastructure (including LNG terminals and interconnectors), and promoting renewable energy adoption. The amount allocated can fluctuate year-to-year based on geopolitical priorities, specific country needs, and the availability of funds. Countries like Ukraine, Moldova, and the Baltic states have historically been major recipients of such assistance, reflecting their strategic importance in regional energy security.

What is the significance of the Cost Plus Fixed Fee (CPFF) contract type for this project?

The Cost Plus Fixed Fee (CPFF) contract type means that Tetra Tech ES, Inc. will be reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is well-defined but there is uncertainty about the exact costs involved, such as in research and development or complex technical services. For this energy security project, CPFF allows flexibility in adapting to unforeseen technical challenges or market changes while providing an incentive for the contractor to manage costs efficiently, as the fee is fixed. However, it necessitates robust oversight from USAID to ensure that costs are reasonable and allocable, and that the fixed fee remains appropriate for the work performed.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 72011721R00004

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 1320 N COURTHOUSE RD STE 600, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $144,785,130

Exercised Options: $144,785,130

Current Obligation: $32,535,475

Actual Outlays: $23,535,250

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $17,734,148

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 7200AA19D00029

IDV Type: IDC

Timeline