USAID Pakistan's Clean Energy Project Exceeds $31M, Awarded to Tetra Tech ES, Inc

Contract Overview

Contract Amount: $31,061,321 ($31.1M)

Contractor: Tetra Tech ES, Inc.

Awarding Agency: Agency for International Development

Start Date: 2017-03-08

End Date: 2024-10-18

Contract Duration: 2,781 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF - THE PURPOSE OF USAID/PAKISTAN'S CLEAN ENERGY FOR PAKISTAN'S ECONOMY (CEPE) PROJECT IS TO SUPPORT THE GOVERNMENT OF PAKISTAN'S EFFORTS TO INCREASE THE SUSTAINABLE DELIVERY OF CLEAN ENERGY SERVICES TO SPUR THE ECONOMIC AND SOCIAL DEVELOPMENT OF THE COUNTRY.

Plain-Language Summary

Agency for International Development obligated $31.1 million to TETRA TECH ES, INC. for work described as: IGF::OT::IGF - THE PURPOSE OF USAID/PAKISTAN'S CLEAN ENERGY FOR PAKISTAN'S ECONOMY (CEPE) PROJECT IS TO SUPPORT THE GOVERNMENT OF PAKISTAN'S EFFORTS TO INCREASE THE SUSTAINABLE DELIVERY OF CLEAN ENERGY SERVICES TO SPUR THE ECONOMIC AND SOCIAL DEVELOPMENT OF THE COUNTRY. Key points: 1. Project aims to boost Pakistan's sustainable clean energy delivery for economic and social development. 2. Tetra Tech ES, Inc. is the sole contractor for this initiative. 3. The contract duration is substantial, spanning over 2700 days. 4. Spending falls under 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts in similar technical services is difficult without more granular data on specific deliverables and overhead.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the single awardee indicates that Tetra Tech ES, Inc. was the most competitive bidder for this specific scope of work.

Taxpayer Impact: Taxpayer funds are being utilized to support Pakistan's clean energy initiatives, aiming for long-term economic and social benefits within the country.

Public Impact

Enhances energy infrastructure in Pakistan, potentially leading to job creation and economic growth. Supports environmental sustainability by promoting clean energy sources. Strengthens diplomatic ties through development assistance. Aims to improve the quality of life for citizens through reliable energy access.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can be susceptible to cost escalation.
Long contract duration requires sustained oversight.
Limited public information on specific performance metrics.

Positive Signals

Supports a critical development sector for Pakistan.
Awarded via full and open competition.
Clear objective of economic and social development.

Sector Analysis

This project falls within the professional, scientific, and technical services sector, specifically focusing on energy development. Spending benchmarks for similar international development projects vary widely based on scope, location, and specific technical requirements.

Small Business Impact

The data does not indicate any specific set-asides or participation goals for small businesses in this contract. The primary contractor, Tetra Tech ES, Inc., is a large business.

Oversight & Accountability

The Agency for International Development (USAID) is responsible for oversight. Given the CPFF structure and long duration, robust monitoring and evaluation mechanisms are crucial to ensure cost-effectiveness and achievement of project objectives.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Long contract duration requires sustained oversight.
Dependency on a single contractor.
Limited transparency on specific performance metrics.
Geopolitical risks in the operating region.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $31.1 million to TETRA TECH ES, INC.. IGF::OT::IGF - THE PURPOSE OF USAID/PAKISTAN'S CLEAN ENERGY FOR PAKISTAN'S ECONOMY (CEPE) PROJECT IS TO SUPPORT THE GOVERNMENT OF PAKISTAN'S EFFORTS TO INCREASE THE SUSTAINABLE DELIVERY OF CLEAN ENERGY SERVICES TO SPUR THE ECONOMIC AND SOCIAL DEVELOPMENT OF THE COUNTRY.

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 $31.1 million.

What is the period of performance?

Start: 2017-03-08. End: 2024-10-18.

What are the key performance indicators (KPIs) for the CEPE project, and how is progress being measured against them?

Key performance indicators for the CEPE project likely focus on metrics such as increased installed capacity of clean energy, reduction in greenhouse gas emissions, number of beneficiaries reached, and economic impact assessments. USAID's oversight would involve regular reporting from Tetra Tech ES, Inc., site visits, and independent evaluations to track progress against these defined KPIs and ensure the project's objectives are being met effectively and efficiently.

What specific risks are associated with the Cost Plus Fixed Fee (CPFF) contract structure for this project, and how are they being mitigated?

The primary risk with CPFF contracts is the potential for cost overruns if the contractor's costs exceed initial estimates, as the fixed fee provides less incentive for cost control compared to fixed-price contracts. Mitigation strategies likely include stringent cost accounting standards, detailed review of incurred costs, regular audits, and clear definition of allowable costs within the contract terms to ensure efficient use of taxpayer funds.

How does the success of the CEPE project contribute to USAID's broader development goals in Pakistan and globally?

The CEPE project directly contributes to USAID's goals of promoting sustainable economic growth, improving energy security, and mitigating climate change impacts in Pakistan. Success in this project can serve as a model for other developing nations, demonstrating the viability of clean energy investments and fostering a more stable and prosperous environment, aligning with broader U.S. foreign policy objectives.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 4601 N FAIRFAX DR STE 600, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $32,000,000

Exercised Options: $32,000,000

Current Obligation: $31,061,321

Actual Outlays: $17,095,216

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $26,087,133

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1300028

IDV Type: IDC

Timeline