USAID awards $20.3M contract to Tetra Tech ES for decarbonized power sector transition in West Africa

Contract Overview

Contract Amount: $20,315,424 ($20.3M)

Contractor: Tetra Tech ES, Inc.

Awarding Agency: Agency for International Development

Start Date: 2024-06-25

End Date: 2029-06-25

Contract Duration: 1,826 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE AWARD WILL CONTRIBUTE TO ADDRESSING THIS DEMAND BY ESTABLISHING A PARTNERSHIP MODEL BETWEEN POWER AFRICA COLLABORATORS AND WEST AFRICAN COUNTERPARTS. THIS MODEL AIMS TO FACILITATE THE TRANSITION TO A DECARBONIZED POWER SECTOR IN A JUST AND EQUITA

Plain-Language Summary

Agency for International Development obligated $20.3 million to TETRA TECH ES, INC. for work described as: THE AWARD WILL CONTRIBUTE TO ADDRESSING THIS DEMAND BY ESTABLISHING A PARTNERSHIP MODEL BETWEEN POWER AFRICA COLLABORATORS AND WEST AFRICAN COUNTERPARTS. THIS MODEL AIMS TO FACILITATE THE TRANSITION TO A DECARBONIZED POWER SECTOR IN A JUST AND EQUITA Key points: 1. Contract aims to foster partnerships for a just and equitable transition to a decarbonized power sector in West Africa. 2. Focus on establishing a partnership model between Power Africa collaborators and West African counterparts. 3. The contract duration of 5 years suggests a long-term commitment to the program's objectives. 4. Awarded under full and open competition, indicating a broad search for qualified contractors. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while ensuring contractor effort. 6. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services.

Value Assessment

Rating: good

The contract value of $20.3 million over five years appears reasonable for a program focused on complex energy sector transitions in multiple West African nations. Benchmarking against similar international development contracts for energy sector reform and technical assistance suggests this is within a typical range. The Cost Plus Fixed Fee (CPFF) contract type, while potentially leading to higher costs than fixed-price contracts, allows for flexibility in addressing the evolving needs of decarbonization efforts and ensures contractor engagement. Further analysis would require detailed cost breakdowns and comparison to specific project scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that the Agency for International Development (USAID) sought a wide range of potential bidders to ensure the best value. The presence of 7 bids indicates a healthy level of interest and competition for this type of specialized consulting service. This broad competition is generally favorable for price discovery and allows the agency to select a contractor with the most suitable technical expertise and a competitive price.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovative solutions from multiple offerors.

Public Impact

West African nations will benefit from technical assistance and partnership models aimed at transitioning to a decarbonized power sector. The project supports the goals of Power Africa, an initiative to increase access to electricity in sub-Saharan Africa. This initiative has the potential to improve energy infrastructure, leading to economic development and job creation in the region. The focus on a 'just and equitable' transition implies consideration for social impacts and community benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Complexity of coordinating efforts across multiple West African nations could pose logistical challenges.
Ensuring equitable benefits and avoiding unintended negative consequences in the energy transition requires careful management.

Positive Signals

Award to an experienced contractor like Tetra Tech ES, Inc., suggests a strong likelihood of technical competence.
The long contract duration (5 years) indicates a commitment to achieving sustainable outcomes.
The focus on decarbonization aligns with global climate change mitigation efforts.

Sector Analysis

This contract falls within the broader 'Other Scientific and Technical Consulting Services' sector, specifically focusing on energy and environmental consulting. The global market for energy transition consulting is substantial and growing, driven by climate change initiatives and the need for sustainable development. This award aligns with increasing international investment in renewable energy and grid modernization in developing regions. Comparable spending benchmarks would typically be found within programs supporting energy infrastructure development, climate adaptation, and technical assistance for public sector reform in emerging economies.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting plans for this contract. As it was awarded under full and open competition, the primary focus was likely on the overall best value and technical capability. Further investigation into the contractor's subcontracting practices would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Agency for International Development (USAID) contracting officers and program managers. Accountability measures would be embedded within the contract's performance work statement, requiring regular reporting and adherence to milestones. Transparency is typically facilitated through public contract databases and reporting requirements for federal awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Power Africa
International Development Assistance
Climate Change Mitigation Programs
Energy Sector Reform
West Africa Development Initiatives

Risk Flags

Potential for geopolitical instability in West African nations impacting project implementation.
Risk of insufficient local capacity or political will to adopt and implement decarbonization strategies.
Challenges in securing long-term financing for renewable energy projects in the region.
Complexity of coordinating efforts across multiple countries with varying energy sector maturity and regulatory environments.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $20.3 million to TETRA TECH ES, INC.. THE AWARD WILL CONTRIBUTE TO ADDRESSING THIS DEMAND BY ESTABLISHING A PARTNERSHIP MODEL BETWEEN POWER AFRICA COLLABORATORS AND WEST AFRICAN COUNTERPARTS. THIS MODEL AIMS TO FACILITATE THE TRANSITION TO A DECARBONIZED POWER SECTOR IN A JUST AND EQUITA

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 $20.3 million.

What is the period of performance?

Start: 2024-06-25. End: 2029-06-25.

What is Tetra Tech ES, Inc.'s track record with USAID and similar international development contracts, particularly in the energy sector?

Tetra Tech ES, Inc. has a significant history of working with USAID and other federal agencies on a variety of projects, including those related to energy, environment, and infrastructure. Their portfolio often includes technical assistance, program management, and consulting services for international development initiatives. Specifically within the energy sector, Tetra Tech has been involved in projects focused on power system modernization, renewable energy integration, energy efficiency, and policy reform in various developing countries. Their experience with programs like Power Africa, which aims to increase electricity access and drive economic growth in sub-Saharan Africa, suggests a strong alignment with the objectives of this new contract. A detailed review of their past performance evaluations and contract history with USAID would provide further insight into their capabilities and reliability for this specific award.

How does the $20.3 million contract value compare to similar energy sector transition projects managed by USAID or other development agencies in West Africa?

The $20.3 million contract value over five years for Tetra Tech ES, Inc. appears to be within a reasonable range for a complex, multi-faceted energy sector transition program in West Africa. Similar initiatives by USAID, the World Bank, or regional development banks often involve significant funding for technical assistance, capacity building, policy development, and project implementation support. For instance, contracts focused on renewable energy integration, grid stability, or regulatory reform in comparable regions can range from several million to tens of millions of dollars, depending on the scope, duration, and number of countries involved. The 'just and equitable transition' aspect, which includes social and economic considerations alongside technical ones, can also add to the complexity and cost. Without specific details on the exact deliverables and target countries within this award, a precise benchmark is difficult, but the allocated amount seems commensurate with the stated goals.

What are the primary risks associated with implementing a decarbonized power sector transition in West Africa, and how does this contract aim to mitigate them?

Key risks in transitioning West African power sectors towards decarbonization include political instability, regulatory hurdles, inadequate infrastructure, financing challenges, and the need for skilled local workforce development. Furthermore, ensuring a 'just and equitable' transition requires careful management to avoid exacerbating existing inequalities or displacing communities reliant on traditional energy sources. This contract aims to mitigate these risks by establishing a partnership model between Power Africa collaborators and West African counterparts. This collaborative approach is designed to foster local ownership, build institutional capacity, and tailor solutions to specific country contexts. The focus on technical consulting services suggests that the contract will provide expertise in navigating regulatory frameworks, identifying appropriate technologies, and developing sustainable financing mechanisms. By working closely with local stakeholders, the project intends to build consensus and ensure that the transition benefits are broadly shared.

What specific services or deliverables are expected under this 'Other Scientific and Technical Consulting Services' contract, and how will their success be measured?

Under the NAICS code 541690, 'Other Scientific and Technical Consulting Services,' this contract is expected to encompass a range of expert advisory and analytical services related to the decarbonization of West Africa's power sector. Specific deliverables likely include policy analysis and recommendations, feasibility studies for renewable energy projects, technical assessments of existing infrastructure, development of regulatory frameworks, capacity building programs for local energy sector professionals, and facilitation of partnerships between international and regional stakeholders. Success measurement will be tied to the contract's Performance Work Statement (PWS), which will outline key performance indicators (KPIs). These KPIs could include the number of successful partnerships established, the adoption rate of recommended policies, the progress made in decarbonization targets within partner countries, the effectiveness of capacity-building initiatives, and the overall contribution to a 'just and equitable' energy transition as defined by USAID and its partners.

How does this $20.3 million award fit into the broader context of USAID's Power Africa initiative and its overall goals for energy development in Africa?

This $20.3 million contract is a direct component of USAID's Power Africa initiative, which aims to increase electricity access across sub-Saharan Africa. Power Africa's goals are multifaceted, encompassing not only expanding access to electricity but also promoting sustainable energy development, fostering private sector investment, and supporting policy and regulatory reforms. This specific award focuses on the critical aspect of decarbonization, aligning with global efforts to combat climate change while ensuring that energy development is environmentally sound and socially equitable. By establishing partnership models and providing technical expertise, the contract supports Power Africa's objective of building resilient and sustainable energy systems. It complements other Power Africa activities that might focus on infrastructure development, financing, or grid expansion, by providing the strategic guidance and technical support necessary for a clean energy future.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting 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: 72067423R00002

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $73,048,710

Exercised Options: $73,048,710

Current Obligation: $20,315,424

Actual Outlays: $4,012,066

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $96,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline