Energy IDIQ II JandA ACA approved.pdf

ACTION MEMO:

March 10, 2022

To: Deborah Broderick, Agency Competition Advocate (ACA)

From: Jamila Amodeo, DDI/EEI/E, Contracting Officer Representative (COR)

SUBJECT: Justification and Approval (J&A) for other than full-and-open competition to increase the overall shared ceiling under the Energy Indefinite-Delivery, Indefinite-Quantity II (Energy IDIQ II) contracting mechanism.

1. This document sets forth the facts and rationale justifying the use of other than full and open competition, in accordance with AIDAR 706.302-70(b)(5), which authorizes other than full and open competition for “an award for the continued provision of highly specialized services when award to another resource would result in substantial additional costs to the government or would result in unacceptable delay.” This document was prepared by

Jamila Amodeo, Contracting Officer’s Representative (COR) for the Energy IDIQ II in

DDI/EEI/E.

AGENCY AND CONTRACTING ACTIVITY

Contracting Agency: U.S. Agency for International Development (USAID)

Contracting Activity: Energy IDIQ II

Contractor / Contract numbers:

1. Abt Associates, Inc., 7200AA19D00021

2. DT Global FKA AECOM International Development, Inc., 7200AA19D00022

3. Chemonics International, Inc., 7200AA19D00023

4. CORE International, Inc., 7200AA19D00024 - Small

Business

5. Deloitte Consulting, LLC, 7200AA19D00025

6. ECODIT LLC, 7200AA19D00026 - Small Business

7. NUMARK Associates Inc., 7200AA19D00027 -Small

Business

8. RTI International, 7200AA19D00028

9. Tetra Tech ES, Inc.,7200AA19D00029

2. Nature and/or description of the action being approved:

This is a request to approve a shared ceiling increase of $200 million from the original ceiling amount of $500 million of the Energy Indefinite-Delivery, Indefinite-Quantity II (Energy IDIQ

II) contracting mechanism, while maintaining the current ordering period of September 30, 2024, and period of performance of September 30, 2026. Under this action the nine (9) Energy IDIQ II contractors listed above will be able to compete for the provision of the USAID energy program technical assistance services to missions worldwide.

A. PROBLEM

To date, due to the high demand for the energy technical assistance programs, close to 95 percent of the Energy IDIQ II contract shared ceiling has been utilized or is under the procurement process by USAID Missions worldwide. The majority of the Task Orders (TOs) were issued primarily by Missions in Asia/Europe and Eurasia regions, and one from the Caribbean region.

DDI/EEI/E and M/OAA are currently working on the design of the follow-on Energy IDIQ III vehicle, which is expected to be awarded around September 30, 2023. Therefore, to avoid gaps in the availability of the mechanism, this request is to increase the current Energy IDIQ II ceiling, while maintaining the current ordering period for new task orders through September 30, 2024. Additionally, the IDIQ period of performance will remain the same, expiring on

September 30, 2026.

B. BACKGROUND

On October 1, 2019, USAID awarded the five-year Energy IDIQ II contract to nine firms, which includes three small businesses, following a full and open competition. Task Orders under the

Energy IDIQ II can be ordered until September 30, 2024. However, approximately 95 percent of the contract’s ceiling is either already committed or under procurement, which leaves five percent of the ceiling available until September 2024. Globally, there is only one active energy

IDIQ, the “Power Africa IDIQ,” which is currently utilized exclusively by missions in the

African Region and is scheduled to end on February 19, 2023. The Power Africa energy team is also designing the follow-on IDIQ, which will be geographically limited to Sub-Saharan Africa.

Thus, no other IDIQ contracts for assistance in the energy sector can be utilized by the missions outside of the Energy IDIQ II vehicle.

The DDI/EEI energy team and M/OAA are currently working on the design of the next Energy

IDIQ vehicle entitled “Energy IDIQ III.” The approval of the shared ceiling increase for the current IDIQ contract will allow DDI/EEI/E to continue supporting Missions and regional bureaus until the Energy IDIQ III is operational, around September 30, 2023.

In anticipation of future demand, the DDI Energy division conducted two assessments of potential demand for an Energy IDIQ III vehicle through a stakeholder survey conducted in

December 2020, and another in December 2021. A total of eleven Missions, including the

Regional Development Mission for Asia (RDMA), Power Africa, Haiti, Nigeria, Bangladesh, Indonesia, Democratic Republic of Congo (DRC), India, Dominican Republic, Ukraine, West

Bank and Gaza have responded with potential interest in utilizing the global Energy IDIQ III. In

November 2020, the USAID Mission in Tunisia inquired about the possibility of issuing a $60 million TO under the Energy IDIQ II vehicle, which was not feasible because the remaining funding against the ceiling was below Mission needs. As a result, the Mission was advised to issue a stand-alone RFP under full and open competition.

If the Energy IDIQ II shared ceiling increase of $200 million is approved, the ongoing demand of Missions worldwide will be satisfied, and will allow M/OAA sufficient time to complete the procurement of the follow-on Energy IDIQ III vehicle.

C. RESOURCE IMPLICATIONS

With less than $20 million of the shared ceiling, approximately five percent of the total authorized ceiling remains; therefore, there is a need to increase the ceiling in order to support

Mission initiatives under the Energy IDIQ II contract.

3. Description of the supplies or services required including an estimated value:

The Energy IDIQ II vehicle is a technical assistance mechanism that was designed to enable

USAID Missions, Bureaus, and Operating Units to rapidly access exceptional technical expertise and experience to support their programs. It aims to address the global demand for, and use of, modern energy services by fostering sustainable energy development in countries assisted by

USAID to achieve development objectives.

Task Orders under the Energy IDIQ II mechanism provide USAID Missions, regional bureaus, host-country stakeholders, and partners with ready access to technical assistance and capacity building to manage the legal, regulatory, policy, governance, operational, financial, economic, and transactional components of an improved energy sector performance, as well as a strengthened enabling environment for private sector investment.

Activities may include interventions at multiple scales, from the household level to issues of global dimension. Task Orders can also support activities at the intersection of energy and any of

USAID’s primary program areas, including but not limited to economic growth, energy markets and cross-border trade, governance, climate change, environmental and natural resource management, energy sector digitalization, and cybersecurity.

The Energy IDIQ II mechanism offers missions and regional bureaus design and implement programs that address several areas in the energy sector including:

1. Clean energy

2. Energy poverty

3. Energy sector governance and reform; and

4. Energy security

In relation to these themes, the Energy IDIQ II holders provide a number of technical services for the following illustrative activities:

• Developing assessments, strategies, program designs and evaluations;

• Creating enabling environments for energy sector reform and governance;

• Increasing human resources and institutional capacity related to energy services;

• Catalyzing private sector participation and investment;

• Assessing the environmental and social implications of energy services, and

• Improving disaster preparation, response, and recovery.

The Agency has a permanent need for cost-effective access to technical expertise for energy related assistance programs, both for bilateral and regional energy services, including grid resilience planning, gender focused energy programs, national and regional power market establishment, renewable energy auctions, energy efficiency programs through the demand response and energy efficiency programs.

Until recently, the Energy IDIQ II vehicle satisfied those needs through a shorter timeframe for the procurement of consulting services, many of which have the additional technical and contractual capacity to provide cost-effective access to the required technical expertise.

However, given that 95 percent of the ceiling has been utilized, there is a need for an additional ceiling increase that would satisfy the demand of several client Missions. Based on current information, during the first year of implementation of the Energy IDIQ II, a total of

$276,608,843 out of the current $500,000,000 total estimated cost (TEC) was requested through

RFTOPs, which supports the need of increasing the current ceiling.

4. Statutory authority permitting other than full and open competition:

AIDAR 706.302-70(a)(2) permits other than full and open competition when such competition

“would impact or otherwise have an adverse effect on programs conducted for the purpose of foreign aid, relief and rehabilitation.” Further, AIDAR 706.302-70(b)(5) authorizes “An award for the continued provision of highly specialized services when awarded to another resource would result in substantial additional costs to the government or would result in unacceptable delays.” This request is made considering the highly specialized services Energy II IDIQ provides, and the ability of current holders to effectively implement activities in complex areas like infrastructure reform projects, critical to economies where projects are being implemented.

Not moving forward with the requested ceiling increase will challenge current and future activities planned in several Missions worldwide, representing an adverse effect in targeted results as well as posing unacceptable delays due to the need to identify the expertise equal to the

IDIQ pool of firms, as detailed in Section 5 below.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition that requires use of the authority cited:

This request for a shared ceiling increase is predicated on the need to maintain continuity of technical assistance activities, providing opportunity, and encouraging Missions to utilize the most appropriate technical resources to implement energy-related programs. Furthermore, without a ceiling increase, Missions would have to look for other contracting alternatives immediately.

At the moment, there are no alternatives other than going for a full and open competition, which takes significantly longer times or utilizing the much lower ceiling TOs of active activities. As it was demonstrated by the DDI/EEI/E division survey conducted in December 2021, 79 percent of surveyed Missions noted that one of the benefits of having an IDIQ mechanism is the reduction in the procurement times, while 74 percent noted the benefit of having a pool of highly qualified firms that can offer their expertise is equally beneficial. If the requested ceiling increase is not granted, it will result in operating units’ inability to allocate their energy specific assistance programming funds in time, which will stall important activities including climate change programming goals, for which countries committed to.

In addition, the Energy IDIQ II is the primary mechanism for promoting renewable energy policies and investments. Based on information provided by Missions, as well as surveys conducted in late 2021, the areas of critical demand include:

a) Energy Security in the context of climate change mitigation/clean energy investments,

b) Energy Sector Reform Enabling Frameworks (policy, legal and regulatory), and

Institutional strengthening,

c) Fair trade, competitive markets, and transparent procurement processes and procedures,

d) Equitable and inclusive workforce development,

e) Increased customer reach and empowerment through modern technologies,

f) Energy sector resilience and disaster preparation, response, and recovery, and

g) Environmental and social justice in the design and implementation of energy projects.

Through the Energy IDIQ II vehicle, client Missions are collaborating with highly experienced

U.S. organizations to build local capacity in the energy sector and transition to clean energy addressing gender and supporting renewable energy auctions, among many other technical areas where the current IDIQ holder are proving their strong technical expertise, as well as providing client Missions with the necessary support to accomplish results at a macro level. For example, the USAID/RDMA Enhancing Equality in Energy for Southeast Asia project was able to successfully sign a Memorandum of Understanding (MOU) with the Thammasat University to design and implement interventions through local in-country partners, that would address gaps and challenges to gender equality and social inclusion in the energy sector. The focus countries of the activity are Myanmar, Cambodia, Indonesia, the Philippines, Thailand, and Vietnam.

Moreover, these activities not only build capacity of the local stakeholders by providing them with a tailored technical support to their policies, but they are also designed to strengthen their energy security by enabling private investments in renewable resources. USAID’s Energy Secure in the Philippines, for example, is currently mobilizing at least $750 million worth of private sector investments for the country’s energy sector. It is also leading the efforts to support additional new generation capacity of at least 500 megawatts (able to provide electricity to at least 450,000 households in remote areas). Sustainable Energy for Indonesia’s Advanced

Resilience program has set a very ambitious goal of reaching USD 5 billion in public-private financing for energy projects.

Without the technical expertise of the current IDIQ holders, most activities would experience substantial delays, and represent additional costs for the government.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was publicized as required by Federal

Acquisition Regulation (FAR) 5.2 [AIDAR 705.2]:

The original Energy II IDIQ was awarded to the current contractors competitively on

September 30, 2019, as required by FAR 5.202 [AIDAIR 705.002]. Further, in accordance with FAR5.201 and AIDAR 706.302-70(c)(l) a Notice of Intent will be published in www.sam.gov after approval of the J&A.

7. Determination by the contracting officers that the anticipated cost to the government will be fair and reasonable:

The Contracting Officer (CO) has determined that awarding this Energy II IDIQ TEC increase of

$200 million will be fair and reasonable. The anticipated cost is based on a study of current market rates, and historical costs from prior projects, which have been found to be fair and reasonable based on market value. The current rates, negotiated following a full and open competition in connection with the original contract, will not be increased. By signing the below, the CO determines that the anticipated cost will be fair and reasonable, and in the best interest of the U.S. Government.

8. Description of the market research conducted, and the results or a statement of the reasons market research was not conducted:

Market research was conducted for providing activities of similar size and scope as those currently implemented through the current IDIQ holders. The market research was conducted on the USAID Development Experience Clearinghouse (dec.usaid.gov), Government-wide database of contracts and other procurement instruments intended for use by multiple agencies at

(https://www.contractdirectory.gov/contractdirectory/), and the list of current and past DDI/EEI/E implementing partners. The results of that research revealed that current IDIQ holders possess unique capabilities to provide the services currently required without delay. The

Energy II IDIQ was awarded through full and open competition. Since contract award, all nine holders have proven to be efficient implementers with sustained performance that has developed through contract implementation. There are other contractors with the potential skills required, but there are none with the existing capabilities that match Mission requirements at this time without delay. Additionally, some of the current IDIQ holders operate in challenging environments and complex circumstances due to the unique country context. It would be unacceptably difficult and additionally costly to obtain the skills required in a reasonable timeframe. Moreover, the proposed ceiling increase will ensure that no disruption will occur in the Agency’s ability to provide the full benefit of energy-related needs to Missions, particularly to critical priority countries where assistance is crucial.

During the planning of the follow-on IDIQ contract, M/OAA/DDI intends to make use of as many marketing tools as feasible and allowable, particularly to attract small businesses and, in general, firms that have developed valuable experience since the current Energy IDIQ II was awarded. Actions will include preparing and advertising RFIs, holding a pre-solicitation conference, and working with USAID's Office of Small and Disadvantaged Business Utilization http://www.sam.gov/

(OSDBU) and the U.S. Small Business Administration, to define potential channels to reach a wider pool of capable small firms.

9. Other facts supporting the use of other than full and open competition:

The COR believes procuring the services through another mechanism would impose unacceptable delays as described above and cause excessive loss of time that could potentially lead to a disruption of provision of services to client missions. Therefore, it is preferable, and cost and time effective, to use the existing IDIQ which scope allows the required services immediately.

10. Sources, if any, that expressed interest, in writing, in the acquisition:

A Notice of Intent pertaining to the proposed additional activities will be publicized after approval of the J&A. Written expressions of interest will be considered prior to executing the proposed non-competitive modification.

11. The actions the agency may take to remove or overcome any barriers to competition before any prior to subsequent acquisition for the supplies or services required

As a competitive follow-on mechanism, the Energy IDIQ III vehicle will be developed for energy needs, focused on capacity building and self-reliance of partner countries. This follow-on mechanism will adhere to competition and selection procedures established by FAR Part 15;

therefore, no barriers to competition are foreseen in future procurement actions.

12. Technical or requirement personnel certification:

In accordance with FAR 6.303-2(b), I hereby certify that the technical statements included above and which form a basis for the justification are complete and accurate

__________Jamila Amodeo__________________ _02/08/2022___________

Jamila Amodeo, DDI/EEI/E Date

Contracting Officer Representative (COR)

13. Contracting Officer certification:

I hereby certify that the justification is accurate and complete to the best of my knowledge and belief.

_Ayla-Rebeka Brooks_______________ _3/7/2022___________

Ayla-Rebeka Brooks, M/OAA/DDI Date

Supervisor Contracting Officer

14. Approval

Deborah Broderick, Date

Agency Competition Advocate

CLEARANCE PAGE FOR JUSTIFICATION AND APPROVAL (J&A) for other than full and open competition for the Energy II IDIQ

Name Clearance Date

GC/A&A:Diane Perone: cleared by email 2/8/2022