Georgia Energy Security Initiative contract awarded to Tetra Tech ES, Inc. for over $18.5 million

Contract Overview

Contract Amount: $18,549,618 ($18.5M)

Contractor: Tetra Tech ES, Inc.

Awarding Agency: Agency for International Development

Start Date: 2002-12-15

End Date: 2009-08-02

Contract Duration: 2,422 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GEORGIA ENERGY SECURITY INITIATIVE

Plain-Language Summary

Agency for International Development obligated $18.5 million to TETRA TECH ES, INC. for work described as: GEORGIA ENERGY SECURITY INITIATIVE Key points: 1. The contract's value of over $18.5 million suggests a significant investment in energy security initiatives. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and contractor selection. 3. Risk indicators are evaluated to identify potential challenges in contract performance and delivery. 4. Performance context is established by examining the duration and scope of the services provided. 5. Sector positioning places this contract within the broader context of energy consulting and management services.

Value Assessment

Rating: fair

Benchmarking this contract's value against similar energy security initiatives is challenging without more specific data on the scope and deliverables. The total award of $18.5 million over its duration indicates a substantial commitment. However, without comparable contract data or detailed cost breakdowns, a precise value-for-money assessment is difficult. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator 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 bidders had the opportunity to submit proposals. This competitive process is generally expected to yield better pricing and a wider selection of qualified contractors. The presence of multiple bidders suggests a healthy market for these types of services.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The primary beneficiaries are likely the Georgian government and its energy sector stakeholders, who receive support for enhancing energy security. Services delivered include management consulting related to energy security, potentially encompassing policy development, infrastructure assessment, and strategic planning. The geographic impact is focused on Georgia, aiming to improve its energy resilience and sustainability. Workforce implications could involve the engagement of specialized consultants and potentially the transfer of knowledge to local Georgian entities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project objectives are not clearly defined and managed.
Dependency on contractor expertise could limit long-term in-house capacity building.
Geopolitical factors in Georgia could impact project implementation and effectiveness.

Positive Signals

Focus on a critical area of national security (energy security) suggests high strategic importance.
Firm fixed-price contract incentivizes cost control and efficient delivery.
Awarded through full and open competition, suggesting a robust selection process.

Sector Analysis

This contract falls within the management consulting services sector, specifically focusing on energy security. The global market for energy consulting is substantial, driven by evolving energy landscapes, regulatory changes, and the increasing demand for sustainable and secure energy solutions. This contract represents a specific investment in bolstering energy infrastructure and policy within Georgia, aligning with broader international efforts to enhance energy independence and resilience.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, is not explicitly detailed in the provided data. Without this information, it is difficult to assess the impact on the small business ecosystem. Typically, larger contracts may include provisions for small business involvement to ensure broader economic participation.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the Agency for International Development (USAID). Accountability measures would be tied to the contract's performance metrics and deliverables. Transparency is generally facilitated through contract award databases and reporting requirements, though specific details of ongoing oversight are not provided.

Related Government Programs

International Development Assistance
Energy Sector Support Programs
Foreign Aid and Technical Assistance
National Security Initiatives

Risk Flags

Contract Duration
Geopolitical Risk
Scope Management

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $18.5 million to TETRA TECH ES, INC.. GEORGIA ENERGY SECURITY INITIATIVE

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 $18.5 million.

What is the period of performance?

Start: 2002-12-15. End: 2009-08-02.

What specific energy security challenges was this initiative designed to address in Georgia?

The 'Georgia Energy Security Initiative' was likely designed to address a range of challenges pertinent to Georgia's energy landscape. These could include reducing reliance on single energy suppliers, enhancing the resilience of energy infrastructure against physical or cyber threats, improving energy efficiency across sectors, diversifying energy sources (e.g., through renewables), and strengthening the regulatory and policy framework for energy security. The initiative's focus would aim to ensure a stable, reliable, and affordable energy supply for the nation, contributing to its overall economic stability and national security.

How does the $18.5 million award compare to typical spending on similar international energy security projects?

Comparing the $18.5 million award requires context on the project's scope, duration, and specific objectives. International energy security projects can vary widely in cost. Smaller technical assistance or policy advisory contracts might range from a few hundred thousand to a few million dollars. Larger infrastructure development or comprehensive security enhancement programs could easily exceed tens or even hundreds of millions. This $18.5 million award suggests a significant, multi-year engagement focused on substantial strategic support rather than a small-scale, short-term intervention. Without knowing the exact deliverables and the specific threats or vulnerabilities being addressed, a precise benchmark is difficult, but it indicates a considerable investment.

What were the key performance indicators (KPIs) used to evaluate the success of this contract?

Key performance indicators (KPIs) for a contract like the 'Georgia Energy Security Initiative' would typically be tailored to the specific objectives outlined in the contract statement of work. Potential KPIs could include metrics related to the reduction in energy import dependency, the increase in the share of diversified or renewable energy sources, improvements in energy infrastructure reliability (e.g., reduced outage times), the successful implementation of new energy policies or regulations, enhanced cybersecurity measures for energy systems, and the development of strategic energy plans. The Agency for International Development (USAID) would have established these KPIs to measure the contractor's effectiveness in achieving the desired energy security outcomes for Georgia.

What is Tetra Tech ES, Inc.'s track record in managing large-scale international energy security projects?

Tetra Tech ES, Inc. has a significant track record in providing a wide range of technical and management consulting services, including those related to energy, environment, and infrastructure globally. While specific details on their past performance on 'Georgia Energy Security Initiative'-type projects would require a deeper dive into their project portfolio and client feedback, the company is known for undertaking complex international assignments. Their experience often spans areas like energy infrastructure development, policy reform, renewable energy integration, and environmental management. Their ability to secure and execute contracts of this magnitude suggests a demonstrated capacity to manage large-scale, complex projects in challenging international environments.

Were there any notable risks or challenges encountered during the execution of this contract?

Executing large-scale international development contracts, especially those focused on sensitive areas like energy security, inherently involves risks. For this contract, potential challenges could have included navigating the complex political and economic landscape of Georgia, ensuring effective coordination with local government agencies and stakeholders, managing the logistical complexities of project implementation in the region, and adapting to unforeseen geopolitical events or changes in energy markets. The firm fixed-price nature of the contract also means that managing costs effectively to avoid financial losses was a key consideration for the contractor. Specific documented challenges would typically be found in contract performance reports or audits.

How has spending on energy security initiatives in Georgia evolved over time, and does this contract represent a significant shift?

Spending on energy security initiatives in Georgia has likely evolved in response to regional geopolitical dynamics, global energy market trends, and Georgia's own development priorities. Historically, many post-Soviet states have focused on diversifying energy sources and transit routes to reduce dependency on dominant suppliers. This $18.5 million contract, awarded in the mid-2000s and spanning several years, represents a substantial and focused investment by the U.S. Agency for International Development during that period. It signifies a commitment to bolstering Georgia's energy resilience through expert consulting and strategic planning, potentially marking a significant effort to address identified vulnerabilities and promote a more secure energy future for the country.

Industry Classification

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc. (UEI: 045224250)

Address: 4601 N FAIRFAX DR STE 600, ARLINGTON, VA, 08

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

Financial Breakdown

Contract Ceiling: $526,366,568

Exercised Options: $467,528,058

Current Obligation: $18,549,618

Timeline