Deloitte Consulting awarded $61.7M task order for Power Africa West Africa Energy Program

Contract Overview

Contract Amount: $61,706,307 ($61.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2019-03-13

End Date: 2024-07-14

Contract Duration: 1,950 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TO AWARD A COST-PLUS-FIXED-FEE COMPLETION TASK ORDER TO IMPLEMENT THE POWER AFRICA WEST AFRICA ENERGY PROGRAM (WAEP)

Plain-Language Summary

Agency for International Development obligated $61.7 million to DELOITTE CONSULTING LLP for work described as: TO AWARD A COST-PLUS-FIXED-FEE COMPLETION TASK ORDER TO IMPLEMENT THE POWER AFRICA WEST AFRICA ENERGY PROGRAM (WAEP) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The task order is a cost-plus-fixed-fee type, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial at 1950 days, indicating a long-term program requirement. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 5. The contract's value is significant, reflecting the scale of the Power Africa West Africa Energy Program. 6. The award was made by the Agency for International Development (USAID), a key player in foreign assistance.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without detailed cost breakdowns and comparison to similar USAID energy program implementations. However, the fixed-fee component suggests an attempt to control costs. The total award amount of $61.7 million over approximately five years indicates a substantial investment in consulting services for a complex program. Further analysis would require understanding the specific deliverables and the market rates for such specialized consulting in the West African region.

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 is generally favored for ensuring fair pricing and access to a broad range of capabilities. The presence of three bidders (as indicated by 'no': 3) suggests a reasonable level of competition for this significant task order, which should contribute to price discovery and value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the funds expended on this critical energy program.

Public Impact

The Power Africa West Africa Energy Program aims to increase access to electricity in the region. This contract supports USAID's broader mission of promoting economic growth and development in West Africa. The program's success could lead to improved living standards and economic opportunities for populations in West Africa. Consulting services provided by Deloitte will likely focus on program management, technical assistance, and policy support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts carry inherent risks of cost escalation if not meticulously managed and monitored.
The long duration of the contract (1950 days) necessitates robust oversight to ensure continued alignment with program objectives and prevent scope creep.

Positive Signals

Awarded through full and open competition, indicating a robust and fair selection process.
The fixed-fee component provides a degree of cost certainty for the government, assuming the scope is well-defined.
Deloitte Consulting LLP is a large, established firm with significant experience in government contracting and international development.

Sector Analysis

This contract falls within the management and professional services sector, specifically consulting. The Power Africa initiative is a U.S. government-led development program focused on increasing access to electricity in sub-Saharan Africa. USAID, as the awarding agency, frequently procures consulting services to support its complex development programs. Comparable spending benchmarks would involve looking at other large-scale, multi-year consulting contracts awarded by USAID or other development agencies for similar program management and technical assistance in energy or economic development sectors.

Small Business Impact

The data does not indicate any specific small business set-aside or subcontracting requirements for this particular task order. As a large contract awarded to a major consulting firm, the primary focus is likely on the prime contractor's capabilities. However, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses, which could provide opportunities within the broader ecosystem of the Power Africa West Africa Energy Program.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). Mechanisms likely include regular progress reports, performance reviews, and potentially site visits to ensure deliverables are met and funds are used appropriately. Accountability is established through the contract's terms and conditions, including the fixed-fee structure. Transparency would be enhanced through public reporting on the Power Africa initiative's progress and outcomes, though specific details of this task order's internal operations may be less public.

Related Government Programs

Power Africa Initiative
USAID Foreign Assistance Programs
West Africa Economic Development Programs
Energy Sector Development Contracts

Risk Flags

Cost-Plus-Fixed-Fee contract type may lead to cost overruns if not managed tightly.
Long contract duration requires sustained oversight to ensure objectives remain relevant and achievable.
Complexity of energy sector development in West Africa presents inherent program execution risks.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $61.7 million to DELOITTE CONSULTING LLP. TO AWARD A COST-PLUS-FIXED-FEE COMPLETION TASK ORDER TO IMPLEMENT THE POWER AFRICA WEST AFRICA ENERGY PROGRAM (WAEP)

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 $61.7 million.

What is the period of performance?

Start: 2019-03-13. End: 2024-07-14.

What is Deloitte Consulting LLP's track record with USAID, particularly on large-scale energy or development programs?

Deloitte Consulting LLP has a substantial history of contracting with USAID, undertaking a wide array of projects globally. Their experience spans areas such as economic growth, public health, governance, and infrastructure development. Specifically concerning energy and development programs, Deloitte has been involved in initiatives aimed at improving energy access, promoting renewable energy, and supporting policy reforms in various developing regions. Their extensive portfolio suggests a strong capability to manage complex, multi-year programs like the Power Africa West Africa Energy Program. However, a detailed review of past performance evaluations and any past performance issues or successes on similar USAID contracts would provide a more precise assessment of their suitability and past value delivery.

How does the $61.7 million cost compare to similar USAID energy program consulting contracts?

Directly comparing the $61.7 million cost without granular details of the scope of work, specific deliverables, and the duration of comparable contracts is difficult. However, for large, multi-year, comprehensive energy sector development programs managed by a major consulting firm like Deloitte, this figure is within a plausible range. USAID often awards multi-million dollar contracts for complex initiatives requiring extensive technical expertise, program management, and policy advisory services over several years. To provide a more precise benchmark, one would need to analyze contracts with similar objectives (e.g., increasing energy access, improving grid infrastructure, promoting private sector investment in energy) awarded by USAID or other development agencies to large consulting firms over comparable timeframes.

What are the primary risks associated with a Cost-Plus-Fixed-Fee (CPFF) contract for this type of program?

The primary risk with a Cost-Plus-Fixed-Fee (CPFF) contract, like the one awarded to Deloitte for the Power Africa West Africa Energy Program, is the potential for cost escalation. While the 'fixed fee' provides a defined profit margin for the contractor, the 'cost-plus' element means the government reimburses the contractor for all allowable costs incurred. If the contractor's costs exceed initial estimates due to unforeseen challenges, inefficiencies, or scope creep, the total contract value can increase significantly. Effective management and stringent oversight by USAID are crucial to mitigate this risk by ensuring that all costs are reasonable, allocable, and necessary for program execution. Without diligent monitoring, CPFF contracts can become more expensive than initially anticipated.

How effective has the Power Africa initiative been historically, and how does this contract contribute to its goals?

The Power Africa initiative, launched in 2013, has aimed to add 30,000 megawatts (MW) of electricity generation capacity and 60 million new connections across sub-Saharan Africa. While progress has been made, achieving these ambitious targets has faced challenges related to policy, regulatory environments, and financing. This specific task order for the West Africa Energy Program (WAEP) is a crucial component designed to advance these goals within a specific, vital region. By providing expert consulting services for program implementation, technical assistance, and policy engagement, this contract directly supports USAID's efforts to overcome barriers and accelerate energy development, contributing to the overall success and impact of the broader Power Africa initiative.

What is the historical spending trend for administrative management and general management consulting services (NAICS 541611) by USAID?

USAID historically spends significant amounts on administrative management and general management consulting services (NAICS 541611) to support its diverse global development programs. These services are essential for program planning, implementation, monitoring, evaluation, and policy advisory across various sectors, including energy, health, education, and economic growth. While specific annual spending figures fluctuate based on program priorities and funding levels, consulting services represent a consistent and substantial portion of USAID's operational budget. The $61.7 million task order for the WAEP is a notable award within this category, reflecting the complexity and scale of the energy program it supports, and aligns with USAID's ongoing reliance on expert external support for its mission-critical activities.

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: 72067418R00026

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Touche Tohmatsu Limited

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: $73,850,693

Exercised Options: $73,850,693

Current Obligation: $61,706,307

Actual Outlays: $52,565,514

Subaward Activity

Number of Subawards: 83

Total Subaward Amount: $35,454,908

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