MCC awards $2.1M technical assistance contract for energy sector development to Tetra Tech ES, Inc

Contract Overview

Contract Amount: $2,116,606 ($2.1M)

Contractor: Tetra Tech ES, Inc.

Awarding Agency: Millennium Challenge Corporation

Start Date: 2024-02-16

End Date: 2027-02-15

Contract Duration: 1,095 days

Daily Burn Rate: $1.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MCC REQUIRES A FIRM TO PROVIDE A WIDE RANGE OF TECHNICAL ASSISTANCE TASKS IN THE AREAS OF ENERGY TO SUPPORT EARLY STAGE OF COMPACT DEVELOPMENT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Millennium Challenge Corporation obligated $2.1 million to TETRA TECH ES, INC. for work described as: MCC REQUIRES A FIRM TO PROVIDE A WIDE RANGE OF TECHNICAL ASSISTANCE TASKS IN THE AREAS OF ENERGY TO SUPPORT EARLY STAGE OF COMPACT DEVELOPMENT Key points: 1. Contract focuses on early-stage compact development in the energy sector, indicating a strategic investment in foundational planning. 2. The award to Tetra Tech ES, Inc. suggests a reliance on established expertise for complex technical assistance. 3. A Time and Materials contract type allows for flexibility but requires diligent oversight to manage costs. 4. The contract duration of 1095 days (3 years) provides a stable period for project execution and impact. 5. The procurement method 'COMPETED UNDER SAP' implies a streamlined process for smaller value contracts, potentially impacting the breadth of competition. 6. The contract's value is modest within the broader federal spending landscape, suggesting a targeted initiative.

Value Assessment

Rating: good

The contract value of approximately $2.1 million over three years appears reasonable for specialized technical assistance in the energy sector. Benchmarking against similar contracts for early-stage development support would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing structure necessitates careful monitoring of labor hours and rates to ensure cost efficiency and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of exceptional value is challenging, but the price point seems aligned with the scope of services described.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a more limited number of bidders compared to full and open competition. While this can expedite the procurement process, it may not always yield the most competitive pricing or the widest range of potential solutions. The specific number of bidders is not provided, but the 'COMPETED UNDER SAP' designation suggests a focused competition rather than a broad market solicitation.

Taxpayer Impact: For taxpayers, competing under SAP can lead to faster delivery of services but may forgo potential cost savings that could arise from a wider, more intense bidding process.

Public Impact

Beneficiaries include the Millennium Challenge Corporation (MCC) and potentially partner countries receiving support for energy sector development. Services delivered include a wide range of technical assistance tasks crucial for planning and developing energy compacts. The geographic impact is likely focused on countries undergoing compact development, with a specific emphasis on their energy infrastructure and policy. Workforce implications may involve specialized technical experts and consultants contributing to project planning and execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Time and Materials contract type if not closely managed.
Limited competition under SAP may result in less aggressive pricing than a full and open competition.
Dependence on a single contractor (Tetra Tech ES, Inc.) for critical early-stage technical assistance.

Positive Signals

Award to an established firm (Tetra Tech ES, Inc.) suggests a degree of confidence in their capabilities.
Focus on energy sector development aligns with global development priorities and potential for significant impact.
Defined contract period provides a clear framework for service delivery and oversight.

Sector Analysis

The energy sector is a critical component of economic development, requiring significant technical expertise for planning, infrastructure development, and policy reform. Federal spending in this area often supports international development initiatives, research, and domestic energy security. Contracts for technical assistance in energy can range from feasibility studies and environmental impact assessments to grid modernization and renewable energy integration. This contract fits within the broader category of professional, scientific, and technical services supporting international development goals, specifically within the energy domain.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a competed contract under SAP, it's possible that small businesses could have participated, but there's no explicit indication of a small business focus. The prime contractor, Tetra Tech ES, Inc., is likely a large business. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific needs of the technical assistance tasks.

Oversight & Accountability

Oversight will likely be managed by the Millennium Challenge Corporation (MCC) program officials responsible for energy compact development. Accountability measures would be tied to the delivery of technical assistance tasks as outlined in the contract statement of work. Transparency is generally facilitated through federal contract databases, but detailed performance reports and cost breakdowns may not be publicly available. Inspector General jurisdiction would typically extend to potential fraud, waste, or abuse related to federal funds.

Related Government Programs

International Development Assistance
Energy Sector Support Programs
Technical and Management Consulting Services
Millennium Challenge Corporation Compacts

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition may impact price discovery.
Reliance on contractor expertise requires strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

Millennium Challenge Corporation awarded $2.1 million to TETRA TECH ES, INC.. MCC REQUIRES A FIRM TO PROVIDE A WIDE RANGE OF TECHNICAL ASSISTANCE TASKS IN THE AREAS OF ENERGY TO SUPPORT EARLY STAGE OF COMPACT DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is TETRA TECH ES, INC..

Which agency awarded this contract?

Awarding agency: Millennium Challenge Corporation (Millennium Challenge Corporation).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2024-02-16. End: 2027-02-15.

What is Tetra Tech ES, Inc.'s track record with the Millennium Challenge Corporation and similar energy sector development contracts?

Tetra Tech ES, Inc. has a history of performing various technical and professional services for government agencies, including potentially the Millennium Challenge Corporation (MCC) and other international development organizations. Their expertise often spans environmental consulting, engineering, and program management. To assess their track record specifically with MCC and in energy sector development, a review of past contract awards, performance evaluations (if available), and any reported issues would be necessary. Without direct access to detailed performance data or a comprehensive contract history specific to this client and sector, it's difficult to provide a definitive assessment. However, their established presence suggests they are a recognized provider in this space.

How does the $2.1 million contract value compare to similar technical assistance contracts for early-stage energy compact development?

The $2.1 million contract value over three years for early-stage energy compact development appears to be within a reasonable range for specialized technical assistance. However, a precise comparison requires benchmarking against contracts with similar scopes of work, geographic focus, and complexity. Early-stage development often involves feasibility studies, policy analysis, and stakeholder engagement, which can be resource-intensive. If this contract covers a broad spectrum of technical tasks across multiple potential compacts or a single complex one, the value might be considered moderate. Conversely, if it's for a very specific, limited set of tasks, it could be on the higher side. Data on comparable contracts, particularly those managed by agencies like USAID or other development finance institutions, would be crucial for a definitive assessment.

What are the primary risks associated with this Time and Materials (T&M) contract, and how are they mitigated?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns if the contractor's effort is not efficiently managed or if the scope of work expands without adequate control. Unlike fixed-price contracts, T&M contracts pay for the actual labor hours and materials used, plus a fee. Mitigation strategies employed by the MCC would typically include establishing clear ceilings on the total contract value, detailed monitoring of labor hours and rates, requiring regular progress reports, and implementing robust oversight by contracting officers and technical experts. Defining specific deliverables and milestones, even within a T&M framework, helps ensure accountability and provides benchmarks for progress and cost.

What is the expected effectiveness of this contract in advancing early-stage energy compact development?

The effectiveness of this contract hinges on the quality of technical assistance provided by Tetra Tech ES, Inc. and the MCC's ability to leverage this expertise. Early-stage compact development is critical for laying the groundwork for successful, impactful energy projects in partner countries. The technical assistance is expected to help identify viable energy projects, assess their feasibility (technical, economic, environmental), navigate regulatory frameworks, and build local capacity. If the contractor delivers high-quality analysis, strategic advice, and effective stakeholder engagement, this contract can significantly de-risk and accelerate the development of future energy compacts, ultimately contributing to improved energy access and economic growth in recipient nations.

How does this contract fit into the MCC's broader strategy for energy sector investment and development?

This contract aligns with the MCC's strategic objective of supporting partner countries in achieving sustainable economic growth, often through investments in critical infrastructure like the energy sector. By providing technical assistance for early-stage compact development, the MCC aims to ensure that potential energy projects are well-conceived, technically sound, economically viable, and environmentally sustainable before significant capital is committed. This proactive approach helps maximize the impact and long-term success of MCC-funded programs, reducing the likelihood of project failures and ensuring that investments address genuine development needs. It represents a crucial upstream investment in project preparation.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 95332423Q0061

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

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: $3,861,194

Exercised Options: $2,116,606

Current Obligation: $2,116,606

Actual Outlays: $386,526

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline