Deloitte Consulting receives $24.8M for Jordan economic reform technical assistance, spanning over 5 years

Contract Overview

Contract Amount: $24,802,014 ($24.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2022-02-03

End Date: 2027-02-05

Contract Duration: 1,828 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER 2 UNDER ECONOMIC REFORM ACTIVITY IDIQ-ENERGY SECTOR SUPPORT ACTIVITY TO PROVIDE TECHNICAL ASSISTANCE TO THE GOVERNMENT OF JORDAN TO IMPLEMENT THE KINGDOMS ECONOMIC REFORM PLANS TO IMPROVE THE SUSTAINABILITY AND SELF-RELIANCE OF THE ENERG

Plain-Language Summary

Agency for International Development obligated $24.8 million to DELOITTE CONSULTING LLP for work described as: TASK ORDER 2 UNDER ECONOMIC REFORM ACTIVITY IDIQ-ENERGY SECTOR SUPPORT ACTIVITY TO PROVIDE TECHNICAL ASSISTANCE TO THE GOVERNMENT OF JORDAN TO IMPLEMENT THE KINGDOMS ECONOMIC REFORM PLANS TO IMPROVE THE SUSTAINABILITY AND SELF-RELIANCE OF THE ENERG Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of over 1800 days indicates a long-term commitment to the program's objectives. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The contract is a task order under an existing IDIQ, indicating a pre-established relationship and framework. 6. The agency is the Agency for International Development (USAID), focusing on foreign economic assistance.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable international technical assistance contracts. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can lead to cost overruns if not managed tightly. The total award amount of $24.8 million over approximately five years suggests a significant investment in technical assistance.

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 bidders had the opportunity to submit proposals. This approach generally promotes price discovery and allows the government to select the most advantageous offer based on technical merit and price. The number of bidders is not specified, but the 'full and open' designation is a positive sign for competitive sourcing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the funds expended on technical assistance for Jordan's economic reforms.

Public Impact

The primary beneficiaries are the government of Jordan, receiving technical expertise to implement economic reforms. The services delivered include technical assistance aimed at improving the sustainability and self-reliance of Jordan's energy sector. The geographic impact is focused on Jordan, with potential ripple effects on regional economic stability. Workforce implications may include the engagement of specialized consultants and experts in economic development and energy policy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The broad scope of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not clearly defined.
Long-term contracts can be susceptible to changes in geopolitical priorities or economic conditions affecting the recipient country.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract supports critical economic reforms in a partner nation, aligning with foreign policy objectives.
The task order structure under an IDIQ implies pre-vetting of the contractor and a streamlined acquisition process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on international development and economic consulting. The market for such services is global, with numerous firms specializing in advising governments on policy reform, infrastructure development, and sector-specific improvements. Comparable spending benchmarks would typically involve analyzing other USAID-funded technical assistance programs or similar international development projects in the Middle East region.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large contract awarded to Deloitte Consulting LLP, it is unlikely to directly benefit small businesses unless they are engaged as subcontractors. Further analysis would be needed to determine subcontracting plans and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily be conducted by the Agency for International Development (USAID), likely through its contracting officers and program monitors. Accountability measures would be tied to the performance work statement and deliverables outlined in the contract. Transparency is generally facilitated through contract award databases, though detailed programmatic reporting may be internal to USAID and the recipient government.

Related Government Programs

USAID Economic Growth Programs
International Development Assistance
Energy Sector Reform Initiatives
Middle East Economic Partnerships
Technical Assistance Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of costs.
Long contract duration increases exposure to changing economic and political conditions.
Broad service category may require stringent scope management.
Dependence on recipient government's commitment to reform.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $24.8 million to DELOITTE CONSULTING LLP. TASK ORDER 2 UNDER ECONOMIC REFORM ACTIVITY IDIQ-ENERGY SECTOR SUPPORT ACTIVITY TO PROVIDE TECHNICAL ASSISTANCE TO THE GOVERNMENT OF JORDAN TO IMPLEMENT THE KINGDOMS ECONOMIC REFORM PLANS TO IMPROVE THE SUSTAINABILITY AND SELF-RELIANCE OF THE ENERG

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 $24.8 million.

What is the period of performance?

Start: 2022-02-03. End: 2027-02-05.

What is Deloitte Consulting LLP's track record with USAID, particularly on similar international economic development contracts?

Deloitte Consulting LLP has a significant history of contracting with USAID across various sectors, including economic growth, democracy and governance, and health. Their experience often involves providing technical assistance, capacity building, and policy advisory services to governments and organizations in developing countries. Analyzing past USAID contracts awarded to Deloitte would reveal their performance history, including any past performance evaluations, contract modifications, and the types of projects they have successfully executed. This specific contract, focusing on economic reform in Jordan's energy sector, aligns with Deloitte's broader expertise in public sector consulting and international development, suggesting a potentially strong fit based on their established relationship with USAID.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar technical assistance programs?

The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor for allowable costs incurred plus a predetermined fixed fee, representing profit. For technical assistance programs, CPFF is often used when the scope of work is not precisely defined at the outset or is expected to evolve. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but carries a higher risk of cost overruns if not managed diligently, as the government bears the cost risk. Other structures like Time and Materials (T&M) might be used for smaller, less defined tasks, while Cost Plus Incentive Fee (CPIF) could offer better cost control by linking the fee to performance targets. USAID often uses CPFF for complex, long-term development projects where flexibility is paramount, but it necessitates robust oversight to ensure cost efficiency.

What are the key performance indicators (KPIs) or deliverables expected under this contract for Jordan's economic reform?

While the specific KPIs and deliverables are not detailed in the provided summary data, contracts of this nature typically focus on measurable outcomes related to economic policy implementation and sector performance. For Jordan's economic reform and energy sector sustainability, expected deliverables might include policy recommendations, feasibility studies for energy projects, capacity-building workshops for Jordanian officials, development of regulatory frameworks, and reports on progress towards self-reliance and improved energy sector efficiency. Key performance indicators would likely track the adoption of recommended policies, improvements in energy sector financial performance, increased investment in renewable energy, and enhanced institutional capacity within Jordan's energy ministries or agencies. USAID's oversight would focus on whether these deliverables are met and if the KPIs demonstrate tangible progress towards the program's objectives.

What is the historical spending trend for USAID's technical assistance programs in the Middle East region?

USAID has consistently allocated significant funding towards technical assistance and economic development programs in the Middle East region, driven by strategic foreign policy interests and humanitarian needs. Historical spending trends show a substantial and often fluctuating commitment, influenced by regional stability, specific country needs, and U.S. foreign aid priorities. Funding levels can vary year to year, with major allocations often directed towards countries facing significant economic challenges or undergoing reform processes. Analyzing USAID's annual reports and budget justifications would provide detailed historical data on spending patterns within the Middle East, highlighting which countries and sectors have received the most substantial support. This contract for Jordan represents a portion of that broader regional investment.

Are there any specific risks associated with providing technical assistance for economic reforms in Jordan's energy sector?

Providing technical assistance for economic reforms in Jordan's energy sector carries several inherent risks. Political instability within the region or domestic political shifts in Jordan could disrupt reform efforts or alter priorities. Economic volatility, including fluctuations in global energy prices or Jordan's fiscal health, can impact the feasibility and sustainability of reforms. Furthermore, resistance to change from entrenched interests within the energy sector, bureaucratic inertia, or a lack of sustained political will can hinder implementation. Technical risks include the complexity of energy infrastructure, the need for specialized expertise, and the potential for unforeseen environmental or social impacts. USAID and Deloitte would need robust risk mitigation strategies, including continuous stakeholder engagement, adaptive management, and contingency planning.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $37,111,699

Exercised Options: $37,111,699

Current Obligation: $24,802,014

Actual Outlays: $20,602,020

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $13,668,357

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 72027821D00007

IDV Type: IDC

Timeline