USAID contract for primary literacy program in Kenya awarded to Education Development Center, Inc. for over $21 million

Contract Overview

Contract Amount: $21,107,141 ($21.1M)

Contractor: Education Development Center, Inc.

Awarding Agency: Agency for International Development

Start Date: 2023-12-18

End Date: 2025-02-12

Contract Duration: 422 days

Daily Burn Rate: $50.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: USAID|KENYA AND EAST AFRICA KENYA PRIMARY LITERACY PROGRAM (USAID|KEA/KPLP)

Plain-Language Summary

Agency for International Development obligated $21.1 million to EDUCATION DEVELOPMENT CENTER, INC. for work described as: USAID|KENYA AND EAST AFRICA KENYA PRIMARY LITERACY PROGRAM (USAID|KEA/KPLP) Key points: 1. Contract focuses on improving primary education outcomes in Kenya and East Africa. 2. The awardee, Education Development Center, Inc., has experience in international education. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The duration of the contract is 422 days, indicating a medium-term project. 5. The contract falls under Administrative Management and General Management Consulting Services. 6. This award represents a significant investment in educational development in the region.

Value Assessment

Rating: fair

The contract value of over $21 million for a 422-day period suggests a substantial investment in the primary literacy program. Benchmarking this against similar international education development contracts is challenging without more specific details on the scope of services and deliverables. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the actual costs plus a fixed fee for profit, which can be less predictable in terms of final cost compared to fixed-price contracts. Oversight will be critical to ensure costs remain reasonable and aligned with program 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 vendors had the opportunity to bid. The presence of 3 bidders suggests a moderate level of competition for this significant USAID program. While full and open competition is generally preferred for ensuring fair pricing and access to the best solutions, the specific number of bidders can influence the intensity of price negotiation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of proposals and potentially more competitive pricing, leading to better value for the funds invested in international development programs.

Public Impact

Children in Kenya and East Africa will benefit from improved primary literacy skills. The program aims to enhance the quality of education delivery in primary schools. The geographic impact is focused on Kenya and potentially other parts of East Africa. Local educators and educational institutions may be involved in program implementation, potentially creating local employment and capacity building opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively.
The success of the program is dependent on the effective implementation by the contractor and USAID's monitoring.
Potential for scope creep in CPFF contracts if not clearly defined and managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contractor, Education Development Center, Inc., has a stated mission aligned with educational development.
The contract addresses a critical need for improved primary literacy.

Sector Analysis

This contract falls within the broader 'Education Services' sector, specifically focusing on international development and primary education. The market for such services involves non-profit organizations, private contractors, and academic institutions specializing in educational program design and implementation. USAID is a major funder in this space, with significant annual spending on global education initiatives. Benchmarks for similar contracts would typically involve comparing the cost per beneficiary or the cost per outcome achieved in other literacy programs funded by international donors.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is not specified, though larger prime contractors often engage small businesses for specialized services.

Oversight & Accountability

USAID has established oversight mechanisms for its contracts, including regular performance reviews, financial audits, and site visits. The Agency for International Development's Office of Inspector General (OIG) provides independent oversight to prevent and detect waste, fraud, and abuse. Transparency is typically maintained through contract award databases and public reporting on program progress, though specific details of ongoing project management may be internal.

Related Government Programs

USAID Primary Education Programs
International Literacy Initiatives
Global Education Funding
East Africa Development Projects

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Potential for logistical challenges in reaching remote areas.
Need for cultural and linguistic sensitivity in program design.
Ensuring long-term sustainability of program interventions.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $21.1 million to EDUCATION DEVELOPMENT CENTER, INC.. USAID|KENYA AND EAST AFRICA KENYA PRIMARY LITERACY PROGRAM (USAID|KEA/KPLP)

Who is the contractor on this award?

The obligated recipient is EDUCATION DEVELOPMENT CENTER, 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 $21.1 million.

What is the period of performance?

Start: 2023-12-18. End: 2025-02-12.

What is the track record of Education Development Center, Inc. with USAID and similar international education contracts?

Education Development Center, Inc. (EDC) is a well-established non-profit organization with extensive experience in international education and development. They have a long history of working with USAID and other governmental and non-governmental organizations on a wide range of projects, including curriculum development, teacher training, and educational system strengthening in various countries. Their portfolio often includes large-scale, multi-year initiatives focused on improving learning outcomes, particularly in early grades and for marginalized populations. Specific details on their past performance with USAID, including any past performance evaluations or awards, would be available through USAID's contract databases and performance reporting systems. Generally, EDC is recognized for its technical expertise in education and its capacity to manage complex, geographically dispersed programs.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of value for money for USAID?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset or when there is significant uncertainty in the cost of performance. For USAID, CPFF can offer flexibility, allowing programs to adapt to changing circumstances in the field. However, it presents a potential risk to value for money because the contractor is reimbursed for all allowable costs plus a predetermined profit. This can incentivize cost-plus behavior if not rigorously managed. Compared to fixed-price contracts, where the contractor bears more risk for cost overruns, CPFF places more of that risk on the government. To ensure value for money with CPFF, USAID must implement robust cost monitoring, performance evaluation, and scope management processes to ensure that costs remain reasonable and directly tied to achieving program objectives.

What are the key performance indicators (KPIs) for this primary literacy program, and how will success be measured?

While the specific Key Performance Indicators (KPIs) for the USAID Kenya Primary Literacy Program (KPLP) are not detailed in the provided data, typical KPIs for such initiatives focus on measurable improvements in literacy skills among primary school students. These often include metrics such as reading fluency, comprehension levels, and the ability to decode words, often assessed through standardized testing at baseline, mid-term, and end-line. Other KPIs might relate to teacher training effectiveness (e.g., number of teachers trained, observed changes in teaching practices), curriculum development and implementation (e.g., availability of new learning materials), and system-level changes (e.g., improved school management, increased parental engagement). USAID's contract monitoring and evaluation framework would outline the precise KPIs, targets, and methodologies for measuring the program's success and impact.

What is the historical spending pattern for USAID's primary education programs in Kenya and the East Africa region?

USAID has consistently invested in education programs across Africa, with a significant focus on improving foundational learning skills, including literacy and numeracy, in primary education. Historical spending patterns in Kenya and the broader East Africa region reflect a commitment to strengthening education systems, enhancing teacher quality, and increasing access to quality learning materials. These programs often aim to address challenges such as high dropout rates, low learning outcomes, and disparities in educational access. While specific figures fluctuate annually based on budget allocations and program priorities, USAID's education portfolio in the region typically represents a substantial portion of its development assistance. Analyzing USAID's annual reports and budget documents would provide detailed historical spending data for primary education initiatives in Kenya and surrounding countries.

What are the potential risks associated with implementing a large-scale literacy program in a developing country context like Kenya?

Implementing a large-scale literacy program in Kenya, like the USAID KPLP, involves several potential risks. These include: 1) Political and economic instability: Changes in government policy or economic downturns can disrupt program implementation and funding. 2) Logistical challenges: Reaching remote or underserved areas for training and material distribution can be difficult and costly. 3) Cultural and linguistic diversity: Adapting educational materials and approaches to various local contexts and languages requires careful planning and sensitivity. 4) Teacher capacity and motivation: Ensuring teachers are adequately trained, supported, and motivated to adopt new teaching methodologies is crucial. 5) Sustainability: Designing the program to be sustainable beyond the funding period, by building local capacity and integrating with government systems, is a key challenge. 6) Monitoring and evaluation: Accurately measuring impact and adapting strategies based on data can be complex in a dynamic environment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Solicitation ID: 72061523R00015

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 300 FIFTH AVE SE 2010, WALTHAM, MA, 02451

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $79,477,408

Exercised Options: $79,477,408

Current Obligation: $21,107,141

Actual Outlays: $11,371,262

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,076,004

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 72062323D00010

IDV Type: IDC

Timeline