USAID's $57M Papua New Guinea Electrification Partnership Activity awarded to Research Triangle Institute, with $19.4M initially obligated

Contract Overview

Contract Amount: $50,396,980 ($50.4M)

Contractor: Research Triangle Institute

Awarding Agency: Agency for International Development

Start Date: 2020-10-27

End Date: 2025-03-25

Contract Duration: 1,610 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: USAID-PAPUA NEW GUINEA ELECTRIFICATION PARTNERSHIP (PEP) ACTIVITY BASE AWARD $56,974,990 WITH INITIAL OBLIGATION OF $19,449,419

Plain-Language Summary

Agency for International Development obligated $50.4 million to RESEARCH TRIANGLE INSTITUTE for work described as: USAID-PAPUA NEW GUINEA ELECTRIFICATION PARTNERSHIP (PEP) ACTIVITY BASE AWARD $56,974,990 WITH INITIAL OBLIGATION OF $19,449,419 Key points: 1. Value for money appears fair, with a significant portion of the total award obligated upfront. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, given the project's duration and cost-plus-fixed-fee structure. 4. Performance context is tied to a critical development goal: electrification in Papua New Guinea. 5. Sector positioning is within professional, scientific, and technical services, supporting development initiatives.

Value Assessment

Rating: fair

The contract's total value is $56,974,990, with an initial obligation of $19,449,419. Benchmarking this against similar USAID development activities requires detailed analysis of scope and deliverables. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed, plus a fixed fee, which can incentivize efficiency but also carries risk if not managed closely. The initial obligation represents about 34% of the total award, suggesting a phased approach to funding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 7 bidders suggests a reasonably competitive environment. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, though the specific nature of the services (technical and scientific) can influence the number of qualified proposers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the chances of securing the best value by encouraging a wide range of qualified contractors to bid, driving down prices through market forces.

Public Impact

The primary beneficiaries are the citizens of Papua New Guinea, who will gain access to electricity. Services delivered include technical assistance, project management, and support for electrification efforts. Geographic impact is focused on Papua New Guinea, a region with significant energy access challenges. Workforce implications may include local employment opportunities during project implementation and capacity building for local entities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not rigorously monitored.
The long duration of the contract (over 4 years) increases the potential for scope creep or unforeseen challenges.
Dependency on a single contractor for a critical development activity can pose risks if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contractor, Research Triangle Institute, is a reputable organization with experience in international development.
The project addresses a critical development need (electrification), aligning with USAID's mission.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting international development initiatives. The market for such services is global, with numerous organizations specializing in technical assistance, project management, and capacity building for developing nations. USAID's spending in this area is substantial, aiming to foster economic growth and improve living standards through targeted interventions like electrification projects.

Small Business Impact

The data indicates that small business participation was not a specific set-aside criterion for this contract (ss: false, sb: false). While there is no explicit requirement for small business subcontracting mentioned in the provided data, the contractor may still engage small businesses as part of their overall project execution. The impact on the small business ecosystem would depend on whether Research Triangle Institute actively seeks out and utilizes small business partners for specialized services or supplies.

Oversight & Accountability

Oversight for this contract is likely managed by USAID's contracting officers and program officers, who are responsible for monitoring performance, costs, and compliance. Accountability measures are built into the contract through reporting requirements and performance metrics. Transparency is facilitated through contract databases and public reporting, though detailed operational oversight specifics are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USAID Development Assistance
Global Electrification Programs
International Technical Assistance Contracts
Energy Sector Development

Risk Flags

Potential for cost overruns due to CPFF structure
Logistical challenges in remote terrain
Sustainability of energy infrastructure post-project

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $50.4 million to RESEARCH TRIANGLE INSTITUTE. USAID-PAPUA NEW GUINEA ELECTRIFICATION PARTNERSHIP (PEP) ACTIVITY BASE AWARD $56,974,990 WITH INITIAL OBLIGATION OF $19,449,419

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

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 $50.4 million.

What is the period of performance?

Start: 2020-10-27. End: 2025-03-25.

What is Research Triangle Institute's track record with USAID on similar large-scale development projects?

Research Triangle Institute (RTI) has a significant history of working with USAID on various international development projects. RTI is known for its expertise in areas such as health, education, agriculture, and economic growth. While specific details on their performance for the Papua New Guinea Electrification Partnership Activity are not fully available in this summary, RTI's general track record with USAID suggests they are a capable implementer. Their past projects often involve complex logistical and technical challenges in diverse environments. A deeper dive into RTI's past performance ratings, past performance questionnaires, and any documented successes or challenges on comparable USAID contracts would provide a more comprehensive understanding of their suitability and potential risks for this specific activity. Examining their financial health and management capacity would also be prudent for a contract of this magnitude and duration.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar development activities?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development or complex services where the scope is not fully defined at the outset, or where innovation is a key component. For development activities like electrification, where unforeseen technical or logistical challenges are likely, CPFF allows for flexibility. The government reimburses the contractor for allowable costs and pays a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but can be more adaptable. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF), CPFF provides a fixed profit margin, potentially offering less incentive for exceptional performance beyond meeting basic requirements, but also less risk of escalating fees if performance targets are exceeded. The key is rigorous oversight to ensure costs are reasonable and allocable.

What are the primary risks associated with implementing an electrification project in Papua New Guinea?

Implementing an electrification project in Papua New Guinea presents several significant risks. Geographically, the country is characterized by rugged terrain, dense rainforests, and numerous islands, making infrastructure development and maintenance extremely challenging and costly. Political and security risks can also be present, potentially impacting project continuity and safety. Socio-cultural factors, including land tenure issues and community engagement, require careful navigation to ensure project acceptance and sustainability. Furthermore, the existing limited infrastructure, including transportation and communication networks, can hinder supply chains and project management. Economic risks may include currency fluctuations and the availability of local funding for ongoing operations and maintenance post-project completion. Technical risks involve the reliability of chosen technologies in remote and harsh environments and the availability of skilled local labor for installation and upkeep.

What is the historical spending trend for USAID's electrification programs in similar regions?

Analyzing USAID's historical spending on electrification programs in regions comparable to Papua New Guinea (e.g., other Pacific island nations, developing countries in Southeast Asia or Africa with similar geographical and economic profiles) is crucial for benchmarking. While specific figures for this contract are provided, understanding the broader trend helps assess if this award is in line with previous investments. Factors to consider include the average award size, the duration of similar projects, the types of technologies funded (e.g., grid extension, off-grid solutions, renewable energy), and the success rates of these past initiatives. Significant deviations from historical spending patterns, either higher or lower, could warrant further investigation into the specific context, scope, or market conditions influencing this particular contract. This historical data provides a baseline for evaluating the value and appropriateness of the current investment.

How will the success of this electrification activity be measured and evaluated?

The success of the USAID-PAPUA NEW GUINEA ELECTRIFICATION PARTNERSHIP (PEP) ACTIVITY will be measured through a defined set of performance metrics and evaluation criteria outlined in the contract. These typically include indicators related to the number of households or communities gaining access to electricity, the reliability and affordability of the new energy services, the types of energy sources utilized (e.g., renewable vs. fossil fuels), and the impact on economic development and quality of life. USAID will likely conduct regular monitoring and reporting, potentially supplemented by independent evaluations at key project milestones and upon completion. Key performance indicators (KPIs) will track progress against objectives, such as installed capacity, energy generated, and user adoption rates. The evaluation will assess not only the achievement of outputs but also the sustainability of the interventions and their broader development impact.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 72049219R00017

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3040 E CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 27709

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

Financial Breakdown

Contract Ceiling: $56,974,990

Exercised Options: $56,974,990

Current Obligation: $50,396,980

Actual Outlays: $44,112,632

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $21,191,939

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline