USAID's Power Africa Initiative contract awarded to Tetra Tech ES, Inc. for $144.5M to boost energy access

Contract Overview

Contract Amount: $144,530,340 ($144.5M)

Contractor: Tetra Tech ES, Inc.

Awarding Agency: Agency for International Development

Start Date: 2014-05-15

End Date: 2022-02-07

Contract Duration: 2,825 days

Daily Burn Rate: $51.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF POWER AFRICA TRANSACTIONS AND REFORMS PROGRAM (PATRP). THE PURPOSE OF THIS PROGRAM IS TO PROVIDE TECHNICAL ASSISTANCE, CAPACITY BUILDING, AND PROJECT TRANSACTION SUPPORT SERVICES UNDER THE US PRESIDENT'S POWER AFRICA INITIATIVE.

Plain-Language Summary

Agency for International Development obligated $144.5 million to TETRA TECH ES, INC. for work described as: IGF::CL::IGF POWER AFRICA TRANSACTIONS AND REFORMS PROGRAM (PATRP). THE PURPOSE OF THIS PROGRAM IS TO PROVIDE TECHNICAL ASSISTANCE, CAPACITY BUILDING, AND PROJECT TRANSACTION SUPPORT SERVICES UNDER THE US PRESIDENT'S POWER AFRICA INITIATIVE. Key points: 1. Contract provides technical assistance and capacity building for energy sector development. 2. Competition was full and open, suggesting a robust market for these services. 3. Contract duration of over 7 years indicates a long-term commitment to the initiative. 4. Services align with a critical development goal of increasing energy access in Africa. 5. The cost-plus-fixed-fee structure incentivizes efficient service delivery. 6. The contract's value is substantial, reflecting the scale of the Power Africa initiative.

Value Assessment

Rating: good

The contract value of $144.5 million over approximately 7.5 years for technical assistance and capacity building in the energy sector appears reasonable given the scope of the Power Africa initiative. Benchmarking against similar large-scale, multi-year technical assistance contracts for international development programs suggests this level of investment is within expected ranges. The cost-plus-fixed-fee (CPFF) contract type, while potentially leading to cost overruns if not managed carefully, allows for flexibility in addressing complex and evolving needs in developing energy markets. The fixed fee component provides a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 9 bidders suggests a competitive marketplace for these specialized technical assistance services. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive pricing for the services rendered. The agency likely benefited from a range of technical approaches and cost proposals.

Taxpayer Impact: Full and open competition typically leads to better value for taxpayers by fostering a competitive environment that drives down prices and encourages innovation among bidders.

Public Impact

The primary beneficiaries are partner countries in Africa, which receive support to improve their energy sectors. Services delivered include technical assistance, capacity building, and project transaction support. The geographic impact is broad, covering multiple countries participating in the Power Africa initiative. Workforce implications include the potential for local capacity building and the engagement of international technical experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost growth inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Complexity of managing a multi-year, multi-country technical assistance program.
Ensuring effective knowledge transfer and sustainability of capacity building efforts.
Measuring and attributing direct impact on energy access from technical assistance.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Long contract duration suggests sustained effort and commitment to program goals.
Focus on critical development area of energy access aligns with US foreign policy objectives.
Tetra Tech's experience in international development and technical services is a positive signal.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically related to international development and energy infrastructure. The market for such services is characterized by a mix of large, established government contractors and specialized consulting firms. Spending in this area is driven by U.S. foreign policy objectives, particularly in promoting economic growth and stability in developing regions through improved energy access. Comparable spending benchmarks would involve other large-scale USAID or State Department technical assistance programs focused on infrastructure, governance, or economic development in similar regions.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the large contract value and specialized nature of the services, it is likely that larger firms dominated the bidding process. However, Tetra Tech ES, Inc. may engage small businesses as subcontractors to provide specific expertise or services, contributing to the small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID), likely through its contracting officers and program managers. The Inspector General of USAID would also have jurisdiction to investigate potential fraud, waste, or abuse. Transparency is facilitated through contract award databases and reporting requirements, though the specifics of technical assistance delivery may have varying levels of public disclosure.

Related Government Programs

Power Africa Initiative
USAID Technical Assistance Programs
International Energy Development Programs
Global Development Programs

Risk Flags

Contract duration exceeds 7 years.
Cost-plus-fixed-fee contract type requires careful oversight.
Complexity of international development programs.
Measuring direct impact of technical assistance can be challenging.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $144.5 million to TETRA TECH ES, INC.. IGF::CL::IGF POWER AFRICA TRANSACTIONS AND REFORMS PROGRAM (PATRP). THE PURPOSE OF THIS PROGRAM IS TO PROVIDE TECHNICAL ASSISTANCE, CAPACITY BUILDING, AND PROJECT TRANSACTION SUPPORT SERVICES UNDER THE US PRESIDENT'S POWER AFRICA 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 $144.5 million.

What is the period of performance?

Start: 2014-05-15. End: 2022-02-07.

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

Tetra Tech ES, Inc. has a significant history of working with USAID and other federal agencies on large-scale international development projects. Their portfolio often includes environmental services, infrastructure development, energy sector support, and technical assistance in various regions globally. For USAID, they have been involved in numerous programs aimed at improving governance, promoting economic growth, and enhancing environmental sustainability. Their experience with complex, multi-year contracts, often in challenging environments, suggests a capacity to manage the scope and requirements of the Power Africa Transactions and Reforms Program (PATRP). A review of past performance evaluations and contract histories would provide a more detailed understanding of their success rates, adherence to timelines, and client satisfaction on similar engagements.

How does the $144.5 million contract value compare to other Power Africa initiative funding or similar energy development programs?

The $144.5 million awarded to Tetra Tech ES, Inc. for the PATRP represents a substantial investment within the broader Power Africa initiative. Power Africa itself is a multi-agency U.S. government initiative that mobilizes resources from the private sector and partner governments, with U.S. government commitments often in the billions over several years. This specific contract focuses on technical assistance and transaction support, which is a critical but distinct component from direct energy generation investments or infrastructure financing. When compared to other large technical assistance contracts managed by USAID or other development agencies (like the World Bank or regional development banks) for energy sector reform in developing countries, this value appears to be within a reasonable range, reflecting the complexity and long-term nature of fostering energy sector transformation. It is not unusual for such programs to span multiple years and require significant funding to achieve their objectives.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include the inherent complexities of implementing technical assistance and capacity building in diverse African energy markets, potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) structure, and challenges in achieving measurable impact on energy access. Political instability or changes in partner government policies in recipient countries could also disrupt program implementation. Mitigation strategies likely involve robust project management by Tetra Tech ES, Inc., close monitoring and oversight by USAID, clearly defined performance metrics and milestones, and adaptive management approaches to address unforeseen challenges. The CPFF structure requires careful financial oversight to manage the 'cost' component, while the 'fixed fee' provides a degree of predictability. USAID's established procedures for contract management and performance evaluation are designed to address these risks.

How effective has the Power Africa initiative been in achieving its goals, and how does this contract contribute?

The effectiveness of the Power Africa initiative has been subject to various analyses and reports, with mixed results and evolving targets over time. While significant progress has been made in mobilizing private sector investment and increasing energy generation capacity, achieving the ultimate goal of widespread energy access for millions has faced challenges. This contract, the PATRP, is designed to directly address critical bottlenecks by providing technical assistance, improving regulatory frameworks, and facilitating project transactions. Its contribution is in building the foundational capacity and enabling environment necessary for energy projects to move forward and for sustainable energy sector development. Therefore, its effectiveness is measured not just by direct energy connections, but by its role in unblocking and accelerating other investments and reforms within the Power Africa ecosystem.

What are the historical spending patterns for technical assistance in the energy sector under Power Africa or similar U.S. government programs?

Historical spending patterns for technical assistance within Power Africa and similar U.S. government programs show a consistent allocation of funds towards capacity building, policy reform, regulatory strengthening, and transaction advisory services. These programs often represent a significant portion of the overall U.S. government contribution to energy development initiatives, as they are crucial for creating an enabling environment for private investment and sustainable energy sector growth. Agencies like USAID, the Department of Energy, and the State Department have historically funded such activities. The average contract values for these types of services can range widely, from smaller, focused consultancies to multi-year, multi-million dollar programs like PATRP. Spending is typically driven by the specific needs and challenges identified in partner countries, with a focus on improving governance and attracting investment.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 9

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: $148,458,549

Exercised Options: $148,458,549

Current Obligation: $144,530,340

Actual Outlays: $2,642,404

Subaward Activity

Number of Subawards: 70

Total Subaward Amount: $990,964,839

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline