USAID's $28.3M Energy Sector Capacity Building contract awarded to Deloitte Consulting LLP

Contract Overview

Contract Amount: $28,296,829 ($28.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2013-07-15

End Date: 2020-07-23

Contract Duration: 2,565 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF - ENERGY SECTOR CAPCITY BUILDING

Plain-Language Summary

Agency for International Development obligated $28.3 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF - ENERGY SECTOR CAPCITY BUILDING Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2565 days (approx. 7 years) indicates a long-term engagement. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 4. The NAICS code 541990 covers 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. No small business set-aside was utilized, and no subcontracting information was provided.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific services delivered under the broad 'All Other Professional, Scientific, and Technical Services' category. The Cost Plus Fixed Fee (CPFF) contract type, while common, can lead to cost overruns if not managed tightly. Comparing it to similar capacity-building contracts in the energy sector would require detailed scope of work analysis. The total award amount of $28.3 million over approximately seven years suggests a moderate annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 5 offers suggests a reasonable level of competition for this service. This competitive process is generally expected to lead to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging innovative solutions from multiple bidders.

Public Impact

The primary beneficiary is likely the Agency for International Development (USAID) and the countries/regions receiving assistance in energy sector capacity building. Services delivered likely include technical assistance, training, policy development, and program management related to energy infrastructure and policy. The geographic impact would be concentrated in the developing countries or regions where USAID focuses its energy sector development programs. Workforce implications could include the employment of consultants, subject matter experts, and project managers by Deloitte and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad scope of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not precisely defined and managed.
Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The long contract duration necessitates ongoing performance monitoring to ensure continued relevance and effectiveness.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract has a defined end date, providing a clear timeframe for service delivery.
The contractor, Deloitte Consulting LLP, is a large, established firm with significant experience in consulting services.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on technical and management consulting for the energy sector. The energy sector capacity building market is driven by global development initiatives, energy security concerns, and the transition to sustainable energy sources. Comparable spending benchmarks would depend heavily on the specific technical areas within energy (e.g., renewable energy policy, grid modernization, regulatory reform) and the geographic focus of the assistance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. This suggests that the primary award went to a large business, and the impact on the small business ecosystem for this specific contract is likely minimal unless Deloitte actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight would primarily be conducted by USAID contracting officers and program managers. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract. Transparency is facilitated by the public nature of contract awards, but detailed performance reports and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

USAID Global Development Lab
USAID Energy Programs
International Energy Agency (IEA) Capacity Building
World Bank Energy Sector Projects

Risk Flags

Potential for scope creep due to broad service category.
Risk of cost overruns inherent in CPFF contracts.
Need for continuous monitoring due to long contract duration.
Potential for outdated strategies given sector dynamism over 7 years.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $28.3 million to DELOITTE CONSULTING LLP. IGF::OT::IGF - ENERGY SECTOR CAPCITY BUILDING

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 $28.3 million.

What is the period of performance?

Start: 2013-07-15. End: 2020-07-23.

What specific technical areas within the energy sector does this contract cover?

The provided data classifies this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is very broad. The contract title, 'ENERGY SECTOR CAPCITY BUILDING,' suggests a focus on enhancing the capabilities of individuals, organizations, and institutions within the energy sector of recipient countries. This could encompass a wide range of activities, including policy development and reform, regulatory strengthening, technical training for utility staff, feasibility studies for energy projects, market analysis, and institutional development for energy ministries or regulatory bodies. Without access to the detailed statement of work (SOW) or task orders issued under this contract, the precise technical focus remains unspecified.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact cost control and contractor incentives?

The Cost Plus Fixed Fee (CPFF) contract structure reimburses the contractor (Deloitte Consulting LLP) for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it can also create an incentive for cost overruns, as the contractor is guaranteed to be reimbursed for incurred costs. Effective cost control under a CPFF contract relies heavily on robust government oversight, detailed cost accounting standards, and clear definition of allowable costs. USAID would need to closely monitor expenditures and ensure they align with the contract's objectives and budget.

What is the typical annual spending pattern for contracts of this nature and duration?

With a total award of $28.3 million over approximately 2565 days (roughly 7 years), the average annual spending for this contract is approximately $4.04 million per year ($28.3M / 7 years). This figure represents an average and actual spending could fluctuate significantly year-to-year based on program needs, funding availability, and the phasing of specific activities. Contracts of this duration and value in the professional services sector, particularly those supporting international development or technical assistance, often exhibit moderate but consistent annual expenditures, punctuated by potential peaks during critical project phases or when new task orders are initiated.

What is Deloitte Consulting LLP's track record with USAID and similar government contracts?

Deloitte Consulting LLP is a major global professional services firm with extensive experience contracting with U.S. government agencies, including USAID. While specific performance details for this particular contract are not provided in the summary data, Deloitte generally has a strong track record in delivering a wide range of consulting services, including those related to international development, public sector reform, and technical assistance. Their ability to secure large, long-term contracts like this one suggests a history of successful performance and compliance with government contracting regulations. A deeper dive into contract databases and performance evaluations would be needed for a comprehensive assessment.

How does the 'All Other Professional, Scientific, and Technical Services' classification affect performance assessment?

The broad classification of NAICS 541990 makes it challenging to assess performance without specific details on the services rendered. This category encompasses a vast array of non-standardized professional services. For this contract, it means performance metrics and evaluation criteria would need to be highly specific to the actual tasks performed under the energy sector capacity building umbrella. Generic performance indicators would be insufficient. USAID's assessment would likely focus on the achievement of defined project objectives, the quality of deliverables (e.g., reports, training programs, policy recommendations), and the impact on the capacity of the target energy sector entities, rather than on metrics tied to a more narrowly defined service category.

What are the potential risks associated with a 7-year contract duration for capacity building?

A 7-year contract duration for capacity building presents several potential risks. Firstly, the energy sector is dynamic; technologies, policies, and geopolitical factors can change significantly over such a long period, potentially rendering initial strategies or interventions obsolete. Secondly, maintaining consistent quality and engagement from the contractor over an extended period can be challenging. Thirdly, there's a risk of institutional 'capture,' where the contractor becomes so embedded that objective assessment or adaptation becomes difficult. Finally, long-term funding commitments can be subject to shifting government priorities or budget constraints, creating uncertainty. Mitigating these risks requires regular reviews, adaptive management strategies, and clear performance benchmarks throughout the contract's life.

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

Parent Company: Deloitte LLP (UEI: 014127109)

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: $28,296,829

Exercised Options: $28,296,829

Current Obligation: $28,296,829

Actual Outlays: $1,718,055

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $16,071,747

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: AIDOAAI1300018

IDV Type: IDC

Timeline