USAID's Power Africa Beyond the Grid contract awarded to RTI for $50.8M to boost off-grid energy access in Africa

Contract Overview

Contract Amount: $50,860,573 ($50.9M)

Contractor: Research Triangle Institute

Awarding Agency: Agency for International Development

Start Date: 2018-11-13

End Date: 2023-11-12

Contract Duration: 1,825 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Energy

Official Description: IGF::CL::IGF POWER AFRICA BEYOND THE GRID (BTG) WILL UNDERTAKE/IMPLEMENT OR SUPPORT THE FOLLOWING ACTIVITIES THROUGH A 4-YEAR TASK ORDER: PRIVATE SECTOR ENGAGEMENT INVESTOR ENGAGEMENT ENABLING ENVIRONMENT ENGAGEMENT WITH GOVERNMENTS AND OTHER RELEVANT STAKEHOLDERS CATALYZING OFF-GRID OPPORTUNITIES FUND (GRANTS UNDER CONTRACT) INNOVATIVE PROGRAM DESIGN, COMMUNICATIONS&IMPLEMENTATION SUPPORT THE ACTIVITY SCOPE IS WEST, EAST, AND CENTRAL AFRICA. UGANDA WILL ONLY BE COVERED UNDER THIS ACTIVITY STARTING AT THE END OF 2019 AS THEY HAVE AN EXISTING MECHANISM IMPLEMENTING BTG ACTIVITIES THAT ENDS IN 2019. SOUTHERN AFRICA AND NIGERIA OFF-GRID ENERGY ACCESS ACTIVITIES ARE PROVIDED UNDER OTHER POWER AFRICA MECHANISMS.

Plain-Language Summary

Agency for International Development obligated $50.9 million to RESEARCH TRIANGLE INSTITUTE for work described as: IGF::CL::IGF POWER AFRICA BEYOND THE GRID (BTG) WILL UNDERTAKE/IMPLEMENT OR SUPPORT THE FOLLOWING ACTIVITIES THROUGH A 4-YEAR TASK ORDER: PRIVATE SECTOR ENGAGEMENT INVESTOR ENGAGEMENT ENABLING ENVIRONMENT ENGAGEMENT WITH GOVERNMENTS AND OTHER RELEVANT STAKEHOLDERS CATALYZING OFF… Key points: 1. Contract focuses on private sector, investor, and government engagement to catalyze off-grid energy opportunities. 2. Includes a grant fund for innovative off-grid energy solutions. 3. Activity scope covers West, East, and Central Africa, with specific phased inclusion of Uganda. 4. This contract is part of the broader Power Africa initiative aimed at increasing energy access. 5. The contract duration is 4 years, aligning with long-term development goals. 6. The primary service is administrative and management consulting, supporting program implementation.

Value Assessment

Rating: good

The contract value of $50.8 million over four years for a multi-country energy access initiative appears reasonable. Benchmarking against similar large-scale USAID development contracts suggests this is within a typical range for complex, multi-year programs. The Cost Plus Fixed Fee (CPFF) contract type allows for cost control while incentivizing efficient performance. Further analysis would require comparing specific deliverables and overhead rates to similar contracts.

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 yield a fair price and ensure the selection of a capable contractor. The presence of multiple bidders generally leads to better price discovery and a wider range of innovative solutions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for money and reduce the risk of overpayment. Full and open competition increases the likelihood that the selected contractor offers efficient and effective services.

Public Impact

The primary beneficiaries are populations in West, East, and Central Africa lacking reliable electricity access. The contract aims to deliver increased private sector investment and government engagement in the off-grid energy sector. Geographic impact is broad, covering multiple regions across Africa, with a phased approach to Uganda's inclusion. Workforce implications include potential job creation in the renewable energy sector within the target countries through supported projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a multi-year, multi-country program if not managed tightly.
Reliance on government and private sector buy-in, which can be subject to political and economic shifts.
Effectiveness of grant disbursement and oversight for innovative solutions needs careful monitoring.

Positive Signals

Clear focus on catalyzing private sector investment, a key driver for sustainable energy access.
The grant mechanism can foster innovation and reach underserved markets.
The Power Africa initiative provides a strong framework and established partnerships.

Sector Analysis

This contract falls within the broader energy sector, specifically focusing on off-grid renewable energy solutions in developing economies. The market for off-grid energy in Africa is rapidly growing, driven by the need for electrification and declining technology costs. This contract aims to accelerate that growth by de-risking investments and improving the enabling environment, aligning with global trends in sustainable development and energy access.

Small Business Impact

The provided data does not indicate specific small business set-asides or subcontracting requirements for this contract. However, large development contracts often include provisions for small business participation. The success of the Power Africa initiative could indirectly benefit small and medium-sized enterprises in the energy sector by creating a more favorable market environment.

Oversight & Accountability

Oversight is likely managed by USAID's contracting officers and program officers, with potential involvement from Inspector General audits. The contract's performance will be monitored through regular reporting, site visits, and achievement of defined milestones. Transparency is expected through public reporting on Power Africa's overall progress and potentially through specific project outcomes.

Related Government Programs

Power Africa
USAID Development Assistance
Sub-Saharan Africa Energy Programs
Off-Grid Renewable Energy Initiatives

Risk Flags

Geopolitical instability in target regions.
Regulatory hurdles and policy changes impacting energy sector investments.
Currency exchange rate volatility affecting financial planning.
Challenges in coordinating diverse stakeholders across multiple countries.
Effectiveness of grant management and oversight for innovative solutions.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $50.9 million to RESEARCH TRIANGLE INSTITUTE. IGF::CL::IGF POWER AFRICA BEYOND THE GRID (BTG) WILL UNDERTAKE/IMPLEMENT OR SUPPORT THE FOLLOWING ACTIVITIES THROUGH A 4-YEAR TASK ORDER: PRIVATE SECTOR ENGAGEMENT INVESTOR ENGAGEMENT ENABLING ENVIRONMENT ENGAGEMENT WITH GOVERNMENTS AND OTHER RELEVANT STAKEHOLDERS CATALYZING OFF-GRID OPPORTUNITIES FUND (GRANTS UNDER CONTRACT) INNOVATIVE PROGRAM DESIGN, COMMUNICATIONS&IMPLEMENTATION SUPPORT THE ACTIVITY SCOPE IS WEST, EAST, AND CENTRAL AFRICA. UGANDA WILL ONLY BE COVERED UNDER THIS ACTIVITY STA

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 $50.9 million.

What is the period of performance?

Start: 2018-11-13. End: 2023-11-12.

What is the track record of Research Triangle Institute (RTI) in managing large-scale international development contracts, particularly in the energy sector?

Research Triangle Institute (RTI) has a significant track record in managing complex international development projects for agencies like USAID. They have extensive experience in areas such as health, education, economic growth, and democracy and governance. Within the energy sector, RTI has been involved in various initiatives aimed at improving energy access, promoting sustainable energy practices, and supporting policy reforms in developing countries. Their past performance on similar large-scale contracts, including those under the Power Africa umbrella, suggests a capacity to handle the scope and complexity of the 'Power Africa Beyond the Grid' task order. Evaluating specific past projects, their outcomes, and client feedback would provide a more detailed assessment of their suitability for this particular contract.

How does the awarded amount of $50.8 million compare to other USAID energy access initiatives in Africa?

The $50.8 million award for the 'Power Africa Beyond the Grid' task order is substantial, reflecting the broad scope and multi-year duration of the initiative. USAID has funded numerous energy access programs across Africa, with varying contract values depending on their geographic focus, technical approach, and duration. Large, multi-country programs like this one, which aim to catalyze private sector investment and address systemic barriers, typically command higher budgets. For instance, other Power Africa-related mechanisms or broader energy sector support programs have seen awards in the tens to hundreds of millions of dollars. This specific award appears to be in line with significant USAID investments designed for impactful, long-term energy development across multiple nations.

What are the primary risks associated with implementing an off-grid energy program across West, East, and Central Africa?

Implementing an off-grid energy program across such a vast and diverse region presents several key risks. Political instability and changing regulatory environments in different countries can hinder private sector investment and project implementation. Infrastructure limitations, including poor transportation networks and unreliable communication systems, can complicate logistics and service delivery. Furthermore, varying levels of local capacity, potential for corruption, and the need to adapt solutions to diverse socio-economic contexts pose significant challenges. Currency fluctuations can also impact the financial viability of projects and the value of grants. Finally, ensuring effective coordination among governments, private sector actors, and local communities across multiple nations requires robust management and adaptive strategies.

What are the expected outcomes and performance indicators for this contract?

The expected outcomes for the 'Power Africa Beyond the Grid' contract are centered around increasing access to electricity for households and businesses through off-grid solutions. Key performance indicators (KPIs) would likely include the number of new electricity connections facilitated, the amount of private sector investment mobilized, the number of new off-grid energy systems deployed, and improvements in the policy and regulatory environment for off-grid energy. The contract also aims to support innovative program design and implementation, so indicators related to the successful launch and scaling of new initiatives, including those funded by the Catalyzing Off-Grid Opportunities Fund, would be crucial. Measuring the impact on economic development and quality of life in beneficiary communities would also be a key objective.

How has USAID's spending on energy access programs in Africa evolved over the past five years?

USAID's spending on energy access programs in Africa has generally seen a sustained commitment, reflecting the strategic importance of energy for development. While specific figures fluctuate annually based on program cycles and new initiatives, the overall trend indicates significant investment. The Power Africa initiative, launched in 2013, has been a major vehicle for this spending, encompassing a wide range of activities from grid expansion to off-grid solutions. Spending has increasingly focused on mobilizing private sector finance and addressing policy and regulatory barriers, moving beyond direct implementation. There's also a growing emphasis on renewable energy sources and climate-resilient energy infrastructure. Analyzing USAID's annual budget documents and contract award data would provide precise figures and trends for energy access spending over the past five years.

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

Offers Received: 3

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 Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,992,361

Exercised Options: $54,992,361

Current Obligation: $50,860,573

Actual Outlays: $47,313,015

Subaward Activity

Number of Subawards: 134

Total Subaward Amount: $25,091,106

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 72067418D00004

IDV Type: IDC

Timeline