Deloitte Consulting LLP awarded $51.8M contract for governance activity in Tunisia by USAID

Contract Overview

Contract Amount: $51,811,669 ($51.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2017-09-11

End Date: 2022-03-25

Contract Duration: 1,656 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF. TUNISIA ACCOUNTABLE GOVERNANCE ACTIVITY-TADAEEM- HAS THREE KEY OBJECTIVES: IMPROVE CITIZEN PARTICIPATION IN AND OVERSIGHT OF KEY GOVERNMENT FUNCTIONS; MUNICIPAL INSTITUTIONAL AND SERVICE DELIVERY PERFORMANCE IMPROVED; REGIONAL AND NATIONAL COORDINATION AND SERVICE DELIVERY MECHANISMS IMPROVED TO RESPOND TO NEEDS OF CITIZENS VIA LOCAL GOVERNMENT STRUCTURES.

Plain-Language Summary

Agency for International Development obligated $51.8 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF. TUNISIA ACCOUNTABLE GOVERNANCE ACTIVITY-TADAEEM- HAS THREE KEY OBJECTIVES: IMPROVE CITIZEN PARTICIPATION IN AND OVERSIGHT OF KEY GOVERNMENT FUNCTIONS; MUNICIPAL INSTITUTIONAL AND SERVICE DELIVERY PERFORMANCE IMPROVED; REGIONAL AND NATIONAL COORDINATION AND SERVICE D… Key points: 1. Contract aims to improve citizen participation and oversight of government functions in Tunisia. 2. Focus on enhancing municipal institutional performance and service delivery. 3. Seeks to improve regional and national coordination mechanisms for citizen needs. 4. Contract duration of 1656 days indicates a substantial, long-term engagement. 5. The contract type, Cost Plus Fixed Fee, allows for flexibility but requires careful cost management. 6. This award represents a significant investment in Tunisia's governance and development.

Value Assessment

Rating: good

The contract value of $51.8 million over approximately 4.5 years appears reasonable for a complex international development program focused on governance. Benchmarking against similar USAID-funded governance projects in the Middle East and North Africa region suggests this is within the expected range for a multi-faceted initiative. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for such programs, necessitates robust oversight to ensure costs remain controlled and the fixed fee is justified by the scope and complexity of services provided.

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. This competitive process is designed to foster price discovery and ensure the government receives the best value. The presence of multiple bidders typically leads to more competitive pricing and a wider range of proposed solutions, allowing the agency to select the most capable and cost-effective offer.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most efficient use of funds for achieving the program's objectives.

Public Impact

Tunisian citizens are the primary beneficiaries through improved government services and participation. The contract supports enhanced public administration and institutional capacity building within Tunisia. Geographic impact is focused on Tunisia, with potential benefits extending to regional coordination. The program may indirectly impact the Tunisian workforce through training and capacity development initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
Ensuring the fixed fee accurately reflects the complexity and risk of the project is crucial.
Measuring the tangible impact of governance improvements on citizen lives requires robust monitoring.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contract duration of over four years allows for sustained impact and program development.
The stated objectives align with USAID's mission to promote democracy and development abroad.

Sector Analysis

This contract falls within the professional and management development training sector, specifically applied to international development and governance. The market for such services is global, with numerous firms specializing in public administration reform, capacity building, and technical assistance for developing nations. USAID is a major procurer in this space, often awarding large, multi-year contracts to address complex development challenges in partner countries. Benchmarking involves comparing the scope and value to similar USAID or other international donor-funded governance programs.

Small Business Impact

While this contract was awarded to Deloitte Consulting LLP, there is no explicit information provided regarding small business set-asides or subcontracting plans. Large, complex international development contracts often involve subcontracting opportunities for specialized services. Further analysis would be needed to determine if small businesses were engaged as subcontractors and the extent of their participation in fulfilling the contract's objectives.

Oversight & Accountability

USAID typically employs a range of oversight mechanisms for its international contracts, including regular performance reviews, financial audits, and site visits. The Inspector General's office likely has jurisdiction for oversight and investigation of potential fraud, waste, or abuse. Transparency is generally maintained through public contract databases and reporting requirements, though the depth of public insight into day-to-day operations can vary.

Related Government Programs

USAID Democracy and Governance Programs
International Development Assistance
Public Administration Reform Contracts
Capacity Building Initiatives
Foreign Aid Management

Risk Flags

Potential for cost overruns in CPFF contract
Political and economic instability in the region
Challenges in measuring intangible governance improvements
Risk of resistance to reform from established interests

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $51.8 million to DELOITTE CONSULTING LLP. IGF::OT::IGF. TUNISIA ACCOUNTABLE GOVERNANCE ACTIVITY-TADAEEM- HAS THREE KEY OBJECTIVES: IMPROVE CITIZEN PARTICIPATION IN AND OVERSIGHT OF KEY GOVERNMENT FUNCTIONS; MUNICIPAL INSTITUTIONAL AND SERVICE DELIVERY PERFORMANCE IMPROVED; REGIONAL AND NATIONAL COORDINATION AND SERVICE DELIVERY MECHANISMS IMPROVED TO RESPOND TO NEEDS OF CITIZENS VIA LOCAL GOVERNMENT STRUCTURES.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

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 $51.8 million.

What is the period of performance?

Start: 2017-09-11. End: 2022-03-25.

What is Deloitte Consulting LLP's track record with USAID for similar governance programs?

Deloitte Consulting LLP has a significant history of working with USAID on various international development projects, including those focused on governance, public administration, and institutional strengthening. Their experience often spans multiple regions and thematic areas. For governance programs specifically, Deloitte has been involved in initiatives aimed at improving public financial management, anti-corruption efforts, and citizen engagement. A review of past USAID awards and performance evaluations would provide a more detailed picture of their specific successes and challenges in delivering similar projects, including their ability to meet performance targets, manage budgets effectively, and adapt to local contexts. Their extensive experience suggests a strong understanding of USAID's programmatic requirements and operational frameworks.

How does the $51.8 million contract value compare to other USAID governance programs in the MENA region?

The $51.8 million contract value for the Tunisia Accountable Governance Activity (Tadaeem) appears to be within the typical range for large-scale, multi-year USAID governance programs in the Middle East and North Africa (MENA) region. USAID often awards contracts in the tens of millions of dollars for initiatives that aim for comprehensive institutional reform, capacity building, and citizen engagement over several years. For instance, similar programs focusing on judicial reform, public sector modernization, or civil society strengthening in countries like Jordan, Morocco, or Egypt have seen awards of comparable magnitude. The specific value is influenced by the program's duration, the breadth of activities, the number of implementing partners, and the complexity of the political and economic environment.

What are the primary risks associated with implementing a governance program in Tunisia, and how might they be mitigated?

Implementing a governance program in Tunisia, like in many countries undergoing democratic transitions or seeking to strengthen institutions, carries several inherent risks. Political instability or shifts in government priorities could impact program sustainability and effectiveness. Bureaucratic hurdles and resistance to reform from entrenched interests pose operational challenges. Corruption risks, even within the scope of an anti-corruption program, require vigilant monitoring and mitigation strategies. Socio-economic factors, such as high youth unemployment or regional disparities, can create complex challenges that governance reforms must address. USAID and Deloitte would likely mitigate these risks through adaptive management, strong local partnerships, robust monitoring and evaluation frameworks, stakeholder engagement to build buy-in, and strict anti-fraud and corruption protocols. Building local ownership and capacity is also key to long-term success.

What specific performance metrics are likely used to evaluate the success of this governance activity?

The success of the Tunisia Accountable Governance Activity (Tadaeem) would likely be evaluated using a combination of quantitative and qualitative performance metrics aligned with its three key objectives. For improving citizen participation and oversight, metrics could include the number of citizens engaged in public consultations, the number of oversight mechanisms established or strengthened, and citizen satisfaction surveys regarding government responsiveness. For improved municipal institutional and service delivery performance, metrics might track improvements in budget execution rates, efficiency of service delivery (e.g., reduced processing times for permits), adoption of performance management systems, and increased local government revenue generation. For enhanced coordination, metrics could involve the number of inter-agency agreements or joint initiatives implemented, and the effectiveness of communication channels between national and local levels. Robust monitoring and evaluation plans would detail specific targets, data collection methods, and reporting frequencies.

What is the historical spending trend for USAID governance programs in North Africa over the last five years?

Over the last five years, USAID has maintained a consistent and significant investment in democracy and governance programs across North Africa, reflecting the region's ongoing political and economic transitions. While specific figures fluctuate annually based on country needs, strategic priorities, and available funding, the overall trend indicates sustained commitment. Countries like Tunisia, Morocco, and Egypt have typically received substantial portions of this funding, directed towards strengthening democratic institutions, supporting civil society, promoting rule of law, and enhancing public administration. The total annual spending by USAID on governance initiatives in the broader North Africa region likely amounts to several hundred million dollars, with individual large contracts, such as the one awarded to Deloitte for the Tadaeem activity, representing a significant component of this investment. This consistent funding reflects a long-term U.S. foreign policy interest in promoting stability and democratic development in the region.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

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

Solicitation ID: SOL-664-17-000003

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $54,245,114

Exercised Options: $54,245,114

Current Obligation: $51,811,669

Actual Outlays: $35,624,130

Subaward Activity

Number of Subawards: 52

Total Subaward Amount: $38,934,429

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: AIDOAAI1400065

IDV Type: IDC

Timeline