USAID/Mexico MLED Program contract awarded to Tetra Tech ES, Inc. for over $19 million

Contract Overview

Contract Amount: $19,050,850 ($19.1M)

Contractor: Tetra Tech ES, Inc.

Awarding Agency: Agency for International Development

Start Date: 2011-09-01

End Date: 2016-09-30

Contract Duration: 1,856 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: USAID/MEXICO/MLED PROGRAM

Plain-Language Summary

Agency for International Development obligated $19.1 million to TETRA TECH ES, INC. for work described as: USAID/MEXICO/MLED PROGRAM Key points: 1. Contract value of over $19 million suggests a significant investment in technical services. 2. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of work. 3. A definitive contract type implies a commitment to a specific set of deliverables over its duration. 4. The contract duration of 1856 days (over 5 years) points to a long-term project. 5. The absence of small business set-aside flags suggests the primary contractor is likely a large business. 6. The cost-plus-fixed-fee pricing structure can incentivize contractor efficiency while managing risk.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service details. However, a $19 million contract over five years for technical services is substantial. The cost-plus-fixed-fee structure requires careful monitoring to ensure costs remain reasonable and the fixed fee is justified by the scope and complexity of the work. Without comparable contract data for similar USAID programs in Mexico, a precise value-for-money assessment is difficult.

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. With 3 bidders, this suggests a moderate level of competition. While not an extremely high number, it provides some basis for price discovery and ensures that the government is not limited to a single source. The agency likely evaluated proposals based on a combination of technical merit and cost.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better quality services compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are likely USAID and the Mexican government or entities receiving technical assistance. Services delivered under this contract would focus on professional, scientific, and technical support for development programs in Mexico. The geographic impact is concentrated within Mexico, supporting USAID's mission in the region. Workforce implications could include employment for technical experts, consultants, and support staff, both within the contractor's organization and potentially local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
The broad NAICS code makes it difficult to ascertain the exact nature and potential risks of the services provided.
Long contract durations can sometimes lead to scope creep or outdated service delivery methods if not actively managed.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
The fixed fee component provides some cost certainty for the government.
The contract duration of over five years allows for sustained program support and relationship building.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under NAICS code 541990. This broad category encompasses a wide range of services, including research, consulting, and technical support. USAID frequently utilizes such contracts to implement development programs globally. Comparable spending in this sector by government agencies is substantial, reflecting the demand for specialized expertise in areas like program management, engineering, and scientific analysis.

Small Business Impact

The contract data indicates that small business set-asides were not utilized for this award (ss: false, sb: false). This suggests that the primary contract was awarded to a large business. There is no explicit information on subcontracting plans or performance. Without this data, it's difficult to assess the impact on the small business ecosystem, though typically large prime contracts offer opportunities for small businesses to participate as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with USAID's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The contract's cost-plus-fixed-fee structure necessitates rigorous financial oversight to validate costs incurred and the justification for the fixed fee. Transparency would depend on USAID's reporting practices and any specific clauses related to public disclosure within the contract.

Related Government Programs

USAID Development Assistance Programs
International Technical Assistance Contracts
Professional and Technical Services Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Broad NAICS code lacks specificity on services and associated risks.
Limited competition (3 bidders) may not yield optimal pricing.
Lack of small business subcontracting data.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $19.1 million to TETRA TECH ES, INC.. USAID/MEXICO/MLED PROGRAM

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 $19.1 million.

What is the period of performance?

Start: 2011-09-01. End: 2016-09-30.

What specific technical services were provided under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad classification suggests the services could encompass a wide array of activities, such as program management support, technical consulting, research and analysis, feasibility studies, or specialized scientific expertise related to USAID's development objectives in Mexico. Without further details from the contract award or performance reports, the precise nature of the services remains unspecified. USAID typically uses such contracts to implement complex development projects requiring diverse skill sets.

How does the $19 million contract value compare to similar USAID programs in Mexico?

Direct comparison of the $19 million contract value to similar USAID programs in Mexico is difficult without access to a comprehensive database of USAID's contract spending specifically for that region and service category. However, $19 million over approximately five years represents a significant investment. USAID's total global obligations can run into billions annually, and contracts of this magnitude are not uncommon for major program support or implementation efforts. The value is substantial enough to indicate a critical or long-term need for the services provided.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract of this size?

The primary risk with a CPFF contract of this size is potential cost overruns if the government does not maintain stringent oversight. While the fixed fee provides some cost certainty for the contractor's profit, the 'cost plus' portion means the government bears the risk of actual allowable costs. Key risks include inadequate cost tracking by the contractor, scope creep that increases costs without commensurate adjustments to the fixed fee, and potential for the contractor to prioritize revenue generation over efficiency. Effective management requires detailed review of incurred costs and justification for the fixed fee.

What was the contractor's track record prior to this award?

Information regarding Tetra Tech ES, Inc.'s specific track record prior to this award is not detailed in the provided data. However, Tetra Tech is a well-established company known for providing engineering and technical services globally, including significant work with government agencies like USAID. Their broader corporate history likely includes numerous contracts of varying sizes and complexities. A thorough assessment would require reviewing their past performance evaluations, any past performance questionnaires submitted during the bidding process, and their overall financial stability and experience in similar international development contexts.

How does the competition level (3 bidders) impact taxpayer value?

A competition level of three bidders for a contract of this magnitude suggests a moderate degree of competition. While more bidders generally lead to better price discovery and potentially lower costs for taxpayers, three bidders still provide a basis for comparison. It indicates that the opportunity was not restricted and that multiple firms were interested and capable of performing the work. This level of competition is often sufficient to drive reasonable pricing, although it might not achieve the same cost efficiencies as a situation with five or more highly competitive bids. The government's evaluation criteria (technical vs. price) also play a crucial role.

What is the historical spending pattern for this type of service by USAID in Mexico?

The provided data does not include historical spending patterns for USAID in Mexico or for this specific NAICS code. To determine historical spending, one would need to query federal procurement databases (like FPDS or USASpending.gov) for contracts awarded by USAID to Mexico under NAICS 541990 or similar service categories over previous fiscal years. Analyzing this data would reveal trends in contract values, durations, types of services procured, and the number of competitors, providing context for the current $19 million award.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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: $19,050,850

Exercised Options: $19,050,850

Current Obligation: $19,050,850

Actual Outlays: $-130,177

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $11,827,367

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline