USAID's $101M Power Africa contract to Deloitte aims to boost electricity in Nigeria, impacting millions

Contract Overview

Contract Amount: $101,150,511 ($101.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2018-04-02

End Date: 2024-09-30

Contract Duration: 2,373 days

Daily Burn Rate: $42.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS AWARD FEE

Sector: Energy

Official Description: IGF::CL,CT::IGF THIS TASK ORDER INTENDS TO FACILITATE USAIDS ABILITY TO ACHIEVE POWER AFRICA OVERALL GOALS OF ADDING 30,000 MEGAWATTS (MW) OF ELECTRICITY GENERATION CAPACITY AND DELIVER ELECTRICITY TO 60 MILLION HOUSEHOLDS AND BUSINESSES THROUGHOUT SUB-SAHARAN AFRICA (SSA) BY INCREASING ELECTRICITY AVAILABILITY AND ACCESS IN NIGERIA. AS DESCRIBED IN SECTION C, THE CONTRACTOR WILL FACILITATE THE FINANCIAL CLOSURE OF POWER TRANSACTIONS AND STRENGTHEN THE ENABLING ENVIRONMENT FOR PRIVATE SECTOR INVESTMENT IN NIGERIA POWER SECTOR, AS WELL AS ADDRESSING THE KEY CONSTRAINTS TO SUCH INVESTMENT.

Plain-Language Summary

Agency for International Development obligated $101.2 million to DELOITTE CONSULTING LLP for work described as: IGF::CL,CT::IGF THIS TASK ORDER INTENDS TO FACILITATE USAIDS ABILITY TO ACHIEVE POWER AFRICA OVERALL GOALS OF ADDING 30,000 MEGAWATTS (MW) OF ELECTRICITY GENERATION CAPACITY AND DELIVER ELECTRICITY TO 60 MILLION HOUSEHOLDS AND BUSINESSES THROUGHOUT SUB-SAHARAN AFRICA (SSA) BY INC… Key points: 1. Contract focuses on facilitating financial closure of power transactions and improving the investment climate. 2. Aims to significantly increase electricity generation capacity and household access in Sub-Saharan Africa. 3. Deloitte Consulting LLP is the prime contractor for this significant USAID initiative. 4. The contract is structured as a Cost Plus Award Fee, incentivizing performance. 5. This task order is a key component of the broader Power Africa goals. 6. Geographic focus on Nigeria to address specific energy sector constraints.

Value Assessment

Rating: good

The contract value of $101.15 million over approximately 6.5 years for consulting services related to energy sector development appears reasonable given the ambitious goals of Power Africa. Benchmarking against similar large-scale, multi-year international development contracts, the cost aligns with the complexity and scope of facilitating private sector investment in challenging markets. The Cost Plus Award Fee structure allows for flexibility and incentivizes performance, which can lead to better value if managed effectively.

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 competitive process is expected to have driven a more favorable price and a wider range of innovative solutions. The presence of 9 bidders suggests a robust interest in this significant USAID initiative, further supporting the likelihood of a competitive outcome.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing for government services.

Public Impact

The primary beneficiaries are the citizens and businesses of Nigeria, who stand to gain increased electricity availability and access. Services delivered include facilitating financial closure of power transactions and strengthening the investment environment. The geographic impact is focused on Nigeria, a key country within the Power Africa initiative's Sub-Saharan Africa mandate. The contract aims to stimulate private sector investment, potentially creating jobs and economic growth within the energy sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely monitored.
Success is heavily reliant on external factors like political stability and regulatory reforms in Nigeria.
Measuring the direct impact of consulting services on achieving large-scale energy goals can be challenging.

Positive Signals

Clear alignment with a high-priority USAID development objective (Power Africa).
Full and open competition suggests a strong initial vetting of potential contractors.
The contract structure incentivizes performance through award fees.
Long-term duration allows for sustained effort and relationship building with stakeholders.

Sector Analysis

This contract operates within the energy sector, specifically focusing on power generation and distribution infrastructure development in emerging markets. The market for energy consulting services in developing nations is substantial, driven by the need for both public and private investment to address energy deficits. This contract fits within the broader Power Africa initiative, a U.S. government-led partnership aimed at doubling access to electricity across Sub-Saharan Africa. Comparable spending benchmarks would involve other large-scale USAID or development finance institution contracts focused on energy sector reform and investment facilitation in similar regions.

Small Business Impact

There is no explicit indication of small business set-asides for this particular task order. However, large prime contractors like Deloitte often engage small businesses as subcontractors to fulfill specific project needs or meet socio-economic goals. The subcontracting plan, if any, would be crucial in determining the extent of small business participation and its impact on the small business ecosystem within the energy consulting and development sector.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the U.S. Agency for International Development (USAID). Accountability measures are embedded within the Cost Plus Award Fee structure, where performance against defined objectives dictates a portion of the contractor's fee. Transparency is facilitated through contract reporting requirements and public contract databases. While specific Inspector General jurisdiction is not detailed here, USAID's Office of Inspector General would likely have oversight authority for fraud, waste, and abuse.

Related Government Programs

Power Africa
USAID Energy Sector Programs
Sub-Saharan Africa Development Initiatives
International Financial Institution Energy Investments

Risk Flags

Geopolitical Instability
Regulatory Uncertainty
Market Volatility
Security Concerns
Execution Risk

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $101.2 million to DELOITTE CONSULTING LLP. IGF::CL,CT::IGF THIS TASK ORDER INTENDS TO FACILITATE USAIDS ABILITY TO ACHIEVE POWER AFRICA OVERALL GOALS OF ADDING 30,000 MEGAWATTS (MW) OF ELECTRICITY GENERATION CAPACITY AND DELIVER ELECTRICITY TO 60 MILLION HOUSEHOLDS AND BUSINESSES THROUGHOUT SUB-SAHARAN AFRICA (SSA) BY INCREASING ELECTRICITY AVAILABILITY AND ACCESS IN NIGERIA. AS DESCRIBED IN SECTION C, THE CONTRACTOR WILL FACILITATE THE FINANCIAL CLOSURE OF POWER TRANSACTIONS AND STRENGTHEN THE ENABLING ENVIRONMENT FOR PRIVATE SECTOR INV

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

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 $101.2 million.

What is the period of performance?

Start: 2018-04-02. End: 2024-09-30.

What is Deloitte Consulting LLP's track record with USAID and similar international development contracts, particularly in the energy sector?

Deloitte Consulting LLP has a significant history of working with USAID and other government agencies on large-scale international development projects. Their expertise spans various sectors, including economic growth, governance, and infrastructure. Within the energy sector, Deloitte has been involved in numerous initiatives aimed at improving energy access, promoting renewable energy, and facilitating private sector investment in developing countries. Their experience often includes complex financial advisory, policy reform, and program management. While specific performance metrics for past USAID energy contracts are not detailed here, their consistent selection for major initiatives suggests a generally positive track record and capability to handle complex, high-value projects. Further analysis would involve reviewing past performance evaluations and contract awards specific to energy projects in Sub-Saharan Africa.

How does the $101 million cost compare to similar USAID energy sector facilitation contracts?

The $101.15 million cost for this task order is substantial, reflecting the complexity and long-term nature of facilitating private sector investment in Nigeria's power sector under the Power Africa initiative. Benchmarking against similar contracts is challenging without access to proprietary data, but large-scale USAID energy projects often range from tens to hundreds of millions of dollars over several years. Contracts focused on policy reform, financial structuring, and market development in challenging environments typically command higher costs due to the specialized expertise required and the inherent risks. The Cost Plus Award Fee structure also allows for costs to fluctuate based on performance, making direct cost comparisons difficult. However, given the ambitious goals of increasing generation capacity and household access, the investment appears aligned with the scale of the problem being addressed.

What are the primary risks associated with the successful implementation of this contract?

The primary risks associated with this contract are multifaceted. Firstly, political and regulatory instability within Nigeria could hinder the enabling environment for private sector investment, a core objective of the contract. Secondly, macroeconomic volatility, including currency fluctuations and inflation, can impact the financial viability of power projects and the cost of implementation. Thirdly, the success of facilitating financial closure is dependent on the willingness and capacity of private investors, which can be influenced by global market conditions and perceived risks in the region. Fourthly, security concerns in certain areas of Nigeria could impede project implementation and access. Finally, the inherent complexity of coordinating multiple stakeholders, including government agencies, private developers, and financial institutions, presents significant execution risks.

How effective is the Cost Plus Award Fee (CPAF) contract type in achieving USAID's Power Africa goals?

The Cost Plus Award Fee (CPAF) contract type is often employed by USAID for complex, long-term projects where the scope may evolve and performance-based incentives are desired. For the Power Africa initiative, CPAF allows the contractor, Deloitte, to be reimbursed for allowable costs plus a base fee, with the potential for an award fee based on performance against pre-defined criteria. This structure incentivizes Deloitte to achieve specific objectives, such as facilitating financial closure and strengthening the investment environment, as higher performance can lead to greater total compensation. While CPAF offers flexibility and encourages high performance, it also requires robust oversight from USAID to ensure that costs are reasonable and that award fees are justified. Effective implementation of CPAF hinges on clear performance metrics and diligent monitoring by the contracting officer.

What is the historical spending trend for USAID's Power Africa initiative, and how does this task order fit within it?

The Power Africa initiative, launched in 2013, has seen significant cumulative spending across various task orders and implementing partners over the years. While specific historical spending figures for the entire initiative are vast and distributed across numerous contracts, this $101 million task order represents a substantial single investment within the program. It is designed to directly contribute to the initiative's overarching goals of adding generation capacity and expanding electricity access. This task order appears to be a key, high-value component focused on the critical financial and investment aspects necessary to unlock private sector capital, particularly in a large and crucial market like Nigeria. Its duration (ending September 2024) suggests it is a significant, multi-year effort within the broader, ongoing Power Africa framework.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SOL-674-16-000023

Offers Received: 9

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $109,258,794

Exercised Options: $109,258,794

Current Obligation: $101,150,511

Actual Outlays: $79,489,252

Subaward Activity

Number of Subawards: 123

Total Subaward Amount: $92,644,482

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 72067418D00003

IDV Type: IDC

Timeline