USAID's $24M Pakistan power sector improvement contract awarded to NUMARK ASSOCIATES, INC

Contract Overview

Contract Amount: $23,987,990 ($24.0M)

Contractor: Numark Associates, Inc

Awarding Agency: Agency for International Development

Start Date: 2021-09-22

End Date: 2025-09-23

Contract Duration: 1,462 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE POWER SECTOR IMPROVEMENT ACTIVITY (PSIA) AIMS TO INCREASE THE FINANCIAL VIABILITY, RELIABILITY, AND AFFORDABILITY OF THE POWER SYSTEM IN PAKISTAN.

Plain-Language Summary

Agency for International Development obligated $24.0 million to NUMARK ASSOCIATES, INC for work described as: THE POWER SECTOR IMPROVEMENT ACTIVITY (PSIA) AIMS TO INCREASE THE FINANCIAL VIABILITY, RELIABILITY, AND AFFORDABILITY OF THE POWER SYSTEM IN PAKISTAN. Key points: 1. Contract aims to enhance financial viability, reliability, and affordability of Pakistan's power system. 2. Focus on technical services suggests a need for specialized expertise in power sector reform. 3. The contract duration of over three years indicates a significant, long-term commitment to the program. 4. Full and open competition was utilized, suggesting a robust procurement process. 5. The Cost Plus Fixed Fee (CPFF) contract type may incentivize cost control while ensuring contractor effort. 6. This award falls under professional, scientific, and technical services, a broad category with diverse applications.

Value Assessment

Rating: good

The contract value of approximately $24 million over 1462 days (roughly 4 years) appears reasonable for a complex, multi-year international development project focused on a critical sector like power. Benchmarking against similar USAID power sector reform initiatives would provide further context, but the scope suggests a significant undertaking. The CPFF structure requires careful monitoring to ensure costs remain aligned with the fixed fee and project objectives.

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 fosters a competitive environment, potentially leading to better pricing and innovative solutions. The presence of 5 bidders (as indicated by 'no': 5) suggests a healthy level of interest and competition for this type of specialized service.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for public funds. Open competition increases the likelihood of obtaining high-quality services at a fair price, minimizing the risk of overpayment.

Public Impact

The primary beneficiaries are the citizens of Pakistan, who stand to gain from a more stable, reliable, and affordable power system. The services delivered are expected to improve the operational and financial health of Pakistan's power sector. The geographic impact is focused on Pakistan, with potential ripple effects on its economic development. Workforce implications may include capacity building for local professionals and engagement of international experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not rigorously managed.
Effectiveness of technical assistance in driving systemic change within a complex power sector.
Sustainability of improvements beyond the contract period requires strong local ownership and capacity.

Positive Signals

Award to a single contractor (NUMARK ASSOCIATES, INC.) suggests a focused approach to service delivery.
The long contract duration (1462 days) allows for sustained effort and impact.
Full and open competition indicates a commitment to finding the most capable provider.

Sector Analysis

The power sector in developing nations often faces challenges related to infrastructure, financial management, and regulatory frameworks. This contract falls within the professional, scientific, and technical services sector, specifically addressing complex issues in energy infrastructure and policy. Comparable spending benchmarks for international power sector reform projects vary widely based on country context and scope, but USAID's investment reflects a significant commitment to addressing these critical development needs.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. However, given the specialized nature of power sector improvement, it is possible that larger, established firms like NUMARK ASSOCIATES, INC. are the primary awardees. Further investigation into subcontracting opportunities would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agency for International Development (USAID) through its contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting of development assistance activities. Inspector General jurisdiction would apply to prevent fraud, waste, and abuse.

Related Government Programs

USAID Power Sector Programs
International Energy Development Assistance
Pakistan Economic Development Initiatives
Technical Assistance for Infrastructure Projects

Risk Flags

Potential for political instability impacting reform efforts.
Risk of corruption affecting fund utilization and project integrity.
Challenges in coordinating diverse stakeholders within the power sector.
Technical complexities of modernizing aging power infrastructure.
Sustainability of reforms beyond the contract lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $24.0 million to NUMARK ASSOCIATES, INC. THE POWER SECTOR IMPROVEMENT ACTIVITY (PSIA) AIMS TO INCREASE THE FINANCIAL VIABILITY, RELIABILITY, AND AFFORDABILITY OF THE POWER SYSTEM IN PAKISTAN.

Who is the contractor on this award?

The obligated recipient is NUMARK ASSOCIATES, 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 $24.0 million.

What is the period of performance?

Start: 2021-09-22. End: 2025-09-23.

What is the track record of NUMARK ASSOCIATES, INC. in managing similar international power sector reform projects?

NUMARK ASSOCIATES, INC. has a history of providing technical and management consulting services across various sectors, including energy. While specific details on their past performance in Pakistan's power sector require deeper investigation, their engagement in similar international development projects suggests they possess relevant expertise. A review of their past contract performance ratings, any past performance issues, and the scale of previous projects would be crucial to fully assess their capability for this specific undertaking. Examining their portfolio of work with USAID and other development agencies would offer further insight into their experience with complex, multi-stakeholder power sector initiatives.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar technical services in developing countries?

The Cost Plus Fixed Fee (CPFF) structure is common for complex, research-oriented, or service-based contracts where the exact scope or costs are difficult to define upfront. For international power sector reform, where technical challenges and policy nuances are significant, CPFF can be appropriate. It allows the contractor to incur costs while aiming for a predetermined fixed fee. However, it necessitates robust oversight from the procuring agency (USAID) to ensure costs are reasonable and allocable, and that the fixed fee adequately compensates the contractor for their effort without being excessive. Benchmarking against other CPFF contracts for similar services by different agencies or in comparable regions would reveal if the fee structure and anticipated costs are competitive and represent good value.

What are the key performance indicators (KPIs) used to measure the success of the Power Sector Improvement Activity (PSIA)?

The success of the PSIA would likely be measured against a set of Key Performance Indicators (KPIs) defined in the contract's Performance Work Statement (PWS). These KPIs would directly relate to the stated aims of increasing financial viability, reliability, and affordability of the power system. Examples could include metrics such as reduction in transmission and distribution losses, improvement in collection rates, increase in power generation capacity, reduction in system outages (measured by SAIDI/SAIFI), decrease in the cost of electricity generation or supply, and successful implementation of policy or regulatory reforms. USAID's monitoring and evaluation framework would track progress against these KPIs throughout the contract's duration.

What is the historical spending trend for USAID's power sector assistance in Pakistan?

Analyzing historical spending trends for USAID's power sector assistance in Pakistan would provide context for the $24 million award. This would involve examining previous contract awards, grants, and direct funding allocated to power sector projects over the past decade or more. Understanding whether this represents an increase, decrease, or consistent level of investment can indicate shifts in strategic priorities or the perceived urgency of power sector issues in Pakistan. It also helps in assessing the overall commitment to the sector and identifying any patterns in the types of services or contractors previously engaged.

What are the potential risks associated with implementing power sector reforms in a country like Pakistan?

Implementing power sector reforms in Pakistan carries several potential risks. These include political instability, which can disrupt policy implementation and investment; corruption, which can divert funds and undermine project integrity; resistance to reform from vested interests within the sector; technical challenges related to aging infrastructure and grid modernization; financial constraints, both for the government and the utility companies; and security concerns. Furthermore, the complexity of coordinating reforms across multiple government agencies and private sector actors can lead to delays and inefficiencies. The contract's success hinges on effectively mitigating these multifaceted risks through careful planning, stakeholder engagement, and adaptive management.

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: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1220 19TH ST NW STE 500, WASHINGTON, DC, 20036

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,987,990

Exercised Options: $23,987,990

Current Obligation: $23,987,990

Actual Outlays: $23,689,263

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $20,209,355

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 7200AA19D00027

IDV Type: IDC

Timeline