USAID Awards $3M for Jordan Power Interconnection A&E Services to Mostaqbal Engineering

Contract Overview

Contract Amount: $3,256,682 ($3.3M)

Contractor: Mostaqbal Engineering & Environmental Consultants

Awarding Agency: Agency for International Development

Start Date: 2022-10-02

End Date: 2026-07-31

Contract Duration: 1,398 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: RELEASE OF NEW AWARD, A&E SERVICES FOR JORDAN IRAQ POWER INTERCONNECTION ACTIVITY, THIS IS A BUY-IN TO THE EDY IDIQ, APPROXIMATELY $3,000,000

Plain-Language Summary

Agency for International Development obligated $3.3 million to MOSTAQBAL ENGINEERING & ENVIRONMENTAL CONSULTANTS for work described as: RELEASE OF NEW AWARD, A&E SERVICES FOR JORDAN IRAQ POWER INTERCONNECTION ACTIVITY, THIS IS A BUY-IN TO THE EDY IDIQ, APPROXIMATELY $3,000,000 Key points: 1. Awarded as a delivery order under an existing IDIQ, indicating a pre-vetted contractor pool. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. No small business participation was noted, potentially missing opportunities for smaller firms. 4. The sector involves critical infrastructure (power interconnection), highlighting national security and economic implications.

Value Assessment

Rating: fair

The $3 million award for A&E services appears reasonable for a project of this nature. Benchmarking against similar architectural and engineering contracts for power infrastructure projects would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process was intended. However, the 'exclusion of sources' clause warrants further investigation to understand its impact on price discovery.

Taxpayer Impact: The $3 million expenditure supports critical infrastructure development, aiming for long-term energy security and economic benefits for the region, justifying the taxpayer investment.

Public Impact

Enhances regional energy security and stability through improved power infrastructure. Supports economic development by ensuring reliable power supply for Jordan. Leverages existing IDIQ contracts to streamline the procurement process for specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of small business participation.

Positive Signals

Awarded under full and open competition.
Supports critical infrastructure development.

Sector Analysis

This contract falls within the Architectural Services sector, specifically supporting energy infrastructure development. Spending in this area is crucial for national security and economic growth, with benchmarks varying widely based on project complexity and location.

Small Business Impact

The data indicates no small business participation in this award. While not always feasible, exploring opportunities for small businesses in future related contracts could foster broader economic impact and competition.

Oversight & Accountability

USAID's oversight of this delivery order under an IDIQ is crucial, particularly given the Cost Plus Fixed Fee structure. Robust monitoring of costs and performance will be essential to ensure value for taxpayer money.

Related Government Programs

Architectural Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for reduced competition due to 'exclusion of sources'.
No small business participation.
Complexity of international infrastructure projects.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $3.3 million to MOSTAQBAL ENGINEERING & ENVIRONMENTAL CONSULTANTS. RELEASE OF NEW AWARD, A&E SERVICES FOR JORDAN IRAQ POWER INTERCONNECTION ACTIVITY, THIS IS A BUY-IN TO THE EDY IDIQ, APPROXIMATELY $3,000,000

Who is the contractor on this award?

The obligated recipient is MOSTAQBAL ENGINEERING & ENVIRONMENTAL CONSULTANTS.

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 $3.3 million.

What is the period of performance?

Start: 2022-10-02. End: 2026-07-31.

What specific factors led to the exclusion of certain sources during the full and open competition, and how did this impact the final price?

The exclusion of sources during a full and open competition typically occurs when specific technical capabilities, security clearances, or past performance are required that only a limited number of firms possess. While intended to ensure project success, this can sometimes reduce competitive pressure, potentially leading to higher prices than if all potential bidders were included. Further details on the justification for exclusion are needed for a complete assessment.

What are the projected cost savings or efficiencies expected from this power interconnection activity, and how will they be measured?

The primary goal of the Jordan-Iraq power interconnection activity is to enhance energy security and stability for both nations, potentially leading to reduced energy costs through diversified supply and improved grid efficiency. Specific projected cost savings and efficiency metrics should be detailed in the project's business case and monitored throughout its lifecycle. USAID's oversight should ensure these benefits are realized and quantifiable.

How does the Cost Plus Fixed Fee structure align with industry best practices for A&E services in complex infrastructure projects, and what controls are in place?

Cost Plus Fixed Fee (CPFF) contracts are often used for complex projects where the scope is not fully defined, allowing flexibility. However, they carry a risk of cost escalation. Best practices involve stringent oversight, detailed cost accounting, and clear performance metrics to control spending. USAID's controls should focus on rigorous review of incurred costs and ensuring the fixed fee remains appropriate for the services rendered.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: SALAH SHAIMAT, AMMAN

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $3,256,682

Exercised Options: $3,256,682

Current Obligation: $3,256,682

Actual Outlays: $1,979,809

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 72027820D00019

IDV Type: IDC

Timeline