USAID's $26.8M Senegal water and sanitation contract awarded to Natural Resources Consulting Engineers, Inc

Contract Overview

Contract Amount: $26,775,738 ($26.8M)

Contractor: Natural Resources Consulting Engineers, Inc.

Awarding Agency: Agency for International Development

Start Date: 2016-03-16

End Date: 2022-09-15

Contract Duration: 2,374 days

Daily Burn Rate: $11.3K/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: IGF::OT::IGF - THE GOAL OF THIS ACTIVITY IS TO PROVIDE TECHNICAL ASSISTANCE TO THE GOVERNMENT OF SENEGAL (GOS) IN ORDER TO INCREASE SUSTAINABLE ACCESS TO WATER AND SANITATION SERVICES AND IMPROVE HYGIENE PRACTICES. THIS IS WILL CONTRIBUTE TO IMPROVED NUTRITIONAL STATUS, ESPECIALLY OF WOMEN AND CHILDREN.

Plain-Language Summary

Agency for International Development obligated $26.8 million to NATURAL RESOURCES CONSULTING ENGINEERS, INC. for work described as: IGF::OT::IGF - THE GOAL OF THIS ACTIVITY IS TO PROVIDE TECHNICAL ASSISTANCE TO THE GOVERNMENT OF SENEGAL (GOS) IN ORDER TO INCREASE SUSTAINABLE ACCESS TO WATER AND SANITATION SERVICES AND IMPROVE HYGIENE PRACTICES. THIS IS WILL CONTRIBUTE TO IMPROVED NUTRITIONAL STATUS, ESPECIAL… Key points: 1. Contract aims to improve sustainable access to water and sanitation services in Senegal. 2. Focus on hygiene practices to contribute to better nutritional status, particularly for women and children. 3. Contractor has experience in environmental consulting services. 4. The contract was awarded under full and open competition. 5. Performance period spans over six years, indicating a long-term project. 6. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight.

Value Assessment

Rating: fair

The contract's value of $26.8 million over six years for technical assistance in water and sanitation services in Senegal appears reasonable given the scope. Benchmarking against similar international development contracts for water and sanitation projects suggests that costs can vary widely based on geographic location, specific interventions, and the duration of the program. Without more granular data on the specific deliverables and the cost breakdown per activity, a precise value-for-money assessment is challenging. However, the fixed fee component suggests a defined profit margin for the contractor.

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,' indicating that multiple potential bidders were allowed to submit proposals. The presence of three bidders (no=3) suggests a moderate level of competition for this contract. While not a large number of bidders, it is sufficient to provide some price discovery and ensure that the government receives competitive offers. The 'exclusion of sources' aspect might warrant further investigation to understand if specific technologies or approaches were prioritized.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovative solutions. The moderate competition level suggests that taxpayers likely received a fair price for the services rendered.

Public Impact

The primary beneficiaries are the citizens of Senegal, who will gain improved access to water and sanitation services. The project aims to enhance hygiene practices, leading to better public health outcomes. Improved water and sanitation can contribute to reduced disease transmission and better child nutrition. The contract supports the Senegalese government's efforts to achieve sustainable development goals. Potential positive impacts on local employment through project implementation activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and that the fixed fee is justified.
The long duration of the contract (over six years) necessitates ongoing performance monitoring to ensure objectives are met.
Understanding the 'exclusion of sources' rationale is important to ensure no potentially beneficial solutions were overlooked.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contractor, Natural Resources Consulting Engineers, Inc., has a stated focus aligned with the contract's objectives.
The contract directly addresses critical development needs in water, sanitation, and hygiene.

Sector Analysis

This contract falls within the Environmental Consulting Services sector, specifically focusing on water and sanitation infrastructure and public health initiatives in developing countries. The global market for water and sanitation services is substantial, driven by increasing urbanization, population growth, and a focus on sustainable development goals. USAID's spending in this area is typical for development agencies aiming to improve living conditions and public health in partner nations. Comparable spending benchmarks would depend on the specific interventions and scale of the project within Senegal.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It is also unclear if subcontracting opportunities for small businesses were a requirement or a focus. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). Mechanisms likely include regular performance reviews, financial audits, and site visits to monitor progress and ensure compliance with contract terms. Transparency is typically managed through reporting requirements from the contractor and public dissemination of project outcomes. The Inspector General's office would have jurisdiction for investigating fraud, waste, and abuse.

Related Government Programs

USAID Water and Sanitation Programs
Global Water Security Initiatives
International Health and Nutrition Programs
Sustainable Development Goals (SDGs) Implementation

Risk Flags

Potential for cost overruns in CPFF contracts if not closely monitored.
Ensuring long-term sustainability of water and sanitation improvements post-contract.
Measuring the direct impact of hygiene practices on nutritional status can be complex.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $26.8 million to NATURAL RESOURCES CONSULTING ENGINEERS, INC.. IGF::OT::IGF - THE GOAL OF THIS ACTIVITY IS TO PROVIDE TECHNICAL ASSISTANCE TO THE GOVERNMENT OF SENEGAL (GOS) IN ORDER TO INCREASE SUSTAINABLE ACCESS TO WATER AND SANITATION SERVICES AND IMPROVE HYGIENE PRACTICES. THIS IS WILL CONTRIBUTE TO IMPROVED NUTRITIONAL STATUS, ESPECIALLY OF WOMEN AND CHILDREN.

Who is the contractor on this award?

The obligated recipient is NATURAL RESOURCES CONSULTING ENGINEERS, 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 $26.8 million.

What is the period of performance?

Start: 2016-03-16. End: 2022-09-15.

What is the track record of Natural Resources Consulting Engineers, Inc. in similar international development projects, particularly in water and sanitation?

Natural Resources Consulting Engineers, Inc. (NRCE) has a history of providing environmental consulting services. While specific details on their track record in large-scale international development projects focused on water and sanitation in Senegal are not detailed in the provided data, their designation as an environmental consulting firm suggests relevant expertise. A deeper dive into NRCE's project portfolio, client testimonials, and past performance evaluations from agencies like USAID or other development partners would be necessary to fully assess their capabilities and success rates in similar contexts. Examining their experience with Cost Plus Fixed Fee contracts and their ability to manage complex, multi-year projects in challenging environments would also be crucial for a comprehensive understanding of their suitability for this contract.

How does the cost per year of this contract compare to similar USAID water and sanitation projects in other West African countries?

The total contract value is approximately $26.8 million over roughly 6.1 years (from March 2016 to September 2022), averaging around $4.4 million per year. Comparing this to similar USAID water and sanitation projects in other West African countries requires access to a database of past and present contracts. Factors such as the specific interventions (e.g., infrastructure development vs. behavioral change campaigns), the scale of the population served, the geographic scope within the country, and the complexity of the local context significantly influence costs. Generally, projects involving significant infrastructure development tend to be more expensive. Without specific comparable contract data, it is difficult to definitively state whether this contract's annual cost is high, low, or average. However, the figure appears within a plausible range for substantial, multi-year development assistance programs in the sector.

What are the key performance indicators (KPIs) used to measure the success of this technical assistance contract?

The provided data outlines the overarching goal: 'to provide technical assistance to the Government of Senegal (GOS) in order to increase sustainable access to water and sanitation services and improve hygiene practices.' Key performance indicators (KPIs) would likely be derived from these objectives. Examples of potential KPIs could include: the percentage increase in households with access to safe drinking water, the number of new or improved sanitation facilities constructed or rehabilitated, the reduction in waterborne disease incidence, the adoption rate of improved hygiene practices (e.g., handwashing), and the capacity building of local water and sanitation authorities. The 'Cost Plus Fixed Fee' contract type often necessitates clearly defined deliverables and measurable outcomes to justify the fixed fee component.

What is the historical spending trend for environmental consulting services by USAID, and how does this contract fit within that trend?

USAID consistently allocates significant funding towards environmental consulting services as part of its broader development assistance mandate, particularly in areas like water, sanitation, climate adaptation, and natural resource management. Historical spending trends would show a substantial and ongoing investment in this sector. This $26.8 million contract for technical assistance in Senegal aligns with USAID's strategic priorities to support partner countries in achieving sustainable development goals related to water, sanitation, and health. It represents a significant, but not necessarily outlier, investment for a multi-year, comprehensive program in a key development area. Analyzing USAID's annual reports and budget allocations for environmental and water/sanitation programs would provide a clearer picture of how this specific contract fits within the agency's overall spending patterns.

What are the potential risks associated with a Cost Plus Fixed Fee contract for this type of project, and how are they mitigated?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility, carry inherent risks. For the government, the primary risk is that the contractor may not have strong incentives to control costs beyond what is necessary to achieve the fixed fee, potentially leading to cost overruns if not managed diligently. The contractor's profit is fixed, meaning they bear the risk of cost increases if they exceed estimates, but they also benefit if they can complete the work under budget. Mitigation strategies employed by USAID would typically include robust oversight, detailed cost accounting requirements, regular audits, clearly defined scopes of work, and performance-based milestones. The agency would need to ensure that the 'cost' component is well-defined and that the 'fixed fee' is reasonable and justified based on the anticipated effort and risk. Strong contract management and monitoring are crucial to ensure value for money.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: 3927 MARTIN LUTHER KING JR WAY, OAKLAND, CA, 94609

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,775,738

Exercised Options: $26,775,738

Current Obligation: $26,775,738

Actual Outlays: $11,836,429

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $11,144,694

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400071

IDV Type: IDC

Timeline