USAID's $75M Energy Program Contract with Deloitte Consulting LLP Faces Scrutiny for Value and Oversight

Contract Overview

Contract Amount: $74,955,372 ($75.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2017-03-15

End Date: 2024-07-29

Contract Duration: 2,693 days

Daily Burn Rate: $27.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF SOUTHERN AFRICA ENERGY PROGRAM

Plain-Language Summary

Agency for International Development obligated $75.0 million to DELOITTE CONSULTING LLP for work described as: IGF::CL::IGF SOUTHERN AFRICA ENERGY PROGRAM Key points: 1. Significant contract value of $74.9M for consulting services. 2. Deloitte Consulting LLP is a major player in the consulting market. 3. Potential risks associated with long contract duration and cost-plus structure. 4. Spending falls under 'Other Scientific and Technical Consulting Services'.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, coupled with a long duration, raises concerns about cost control and value for money. Benchmarking against similar large-scale international development consulting contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and cost-plus nature may limit price discovery and incentivize cost escalation over time.

Taxpayer Impact: Taxpayer funds are being utilized for a long-term international development program. The effectiveness and efficiency of spending will determine the ultimate taxpayer impact.

Public Impact

Impacts energy sector development in Southern Africa. Potential for job creation and economic growth in the region. USAID's strategic objectives in energy security and access are supported. Transparency and accountability in fund utilization are crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2693 days).
Cost-plus-fixed-fee pricing structure.
Lack of small business participation.
Potential for cost overruns.

Positive Signals

Awarded under full and open competition.
Addresses critical energy sector needs.
Managed by a reputable contractor.

Sector Analysis

This contract falls under professional services, specifically technical consulting for the energy sector in Southern Africa. Benchmarks for similar international development consulting contracts are highly variable, but the scale and duration suggest a significant investment.

Small Business Impact

The contract data indicates no small business participation (ss: false, sb: false). This suggests that opportunities for small businesses to contribute to this significant federal spending initiative were not pursued or realized.

Oversight & Accountability

The long duration and cost-plus nature of this contract warrant close oversight to ensure funds are used efficiently and effectively. Regular performance reviews and cost audits are essential to maintain accountability.

Related Government Programs

Other Scientific and Technical Consulting Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Potential for cost overruns due to cost-plus structure.
Lack of small business participation.
Long contract duration may indicate scope creep or inefficiency.
Limited transparency on performance metrics and value realization.
Oversight challenges with a long-term, high-value contract.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $75.0 million to DELOITTE CONSULTING LLP. IGF::CL::IGF SOUTHERN AFRICA ENERGY PROGRAM

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 $75.0 million.

What is the period of performance?

Start: 2017-03-15. End: 2024-07-29.

What specific metrics are used to measure the success and value delivered by this energy program, and how are they tracked against the significant investment?

Measuring success requires clearly defined Key Performance Indicators (KPIs) tied to energy access, sector reform, or infrastructure development. These KPIs should be regularly assessed against the $75M expenditure. Without transparent reporting on these metrics, it's difficult to ascertain the true value derived from the contract and ensure accountability for taxpayer funds.

Given the cost-plus-fixed-fee structure and long duration, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient resource allocation?

Mitigation strategies typically include robust contract surveillance, detailed cost monitoring, and performance-based incentives. USAID should be actively reviewing Deloitte's expenditures, ensuring alignment with program goals, and potentially incorporating clauses for cost savings or efficiency gains. Regular audits and performance reviews are critical to identify and address potential cost escalations proactively.

How does this contract contribute to USAID's broader strategic goals for the Southern Africa region, and what is the anticipated long-term impact on energy security and sustainability?

The contract's contribution is measured by its alignment with USAID's strategic objectives, such as enhancing energy access, promoting renewable energy adoption, or strengthening institutional capacity within the energy sector. The anticipated long-term impact hinges on the program's ability to foster sustainable energy solutions, attract further investment, and improve the overall energy landscape, thereby contributing to regional stability and economic development.

Industry Classification

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

Solicitation ID: SOL-674-16-000021

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $74,955,372

Exercised Options: $74,955,372

Current Obligation: $74,955,372

Actual Outlays: $46,822,168

Subaward Activity

Number of Subawards: 65

Total Subaward Amount: $23,588,285

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline