USAID awards $76M contract for child and youth development, facing limited competition

Contract Overview

Contract Amount: $76,179,240 ($76.2M)

Contractor: Education Development Center, Inc.

Awarding Agency: Agency for International Development

Start Date: 2020-08-12

End Date: 2024-12-02

Contract Duration: 1,573 days

Daily Burn Rate: $48.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: COMPETITIVE CONTRACT FOR INTEGRATED CHILD AND YOUTH DEVELOPMENT (ICYD) ACTIVITY

Plain-Language Summary

Agency for International Development obligated $76.2 million to EDUCATION DEVELOPMENT CENTER, INC. for work described as: COMPETITIVE CONTRACT FOR INTEGRATED CHILD AND YOUTH DEVELOPMENT (ICYD) ACTIVITY Key points: 1. Contract value of $76.2 million over 5 years suggests significant investment in youth development programs. 2. The award was made under a definitive contract, indicating a long-term commitment. 3. The primary contractor, Education Development Center, Inc., has a substantial role in this project. 4. The North American Industry Classification System (NAICS) code 541990 points to a broad range of professional, scientific, and technical services. 5. The contract type, Cost Plus Fixed Fee, allows for cost reimbursement plus a predetermined profit, which can incentivize efficiency but also carries risk. 6. The contract duration of 1573 days (approximately 4.3 years) aligns with typical project lifecycles for international development initiatives.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable project data. The Cost Plus Fixed Fee (CPFF) structure means the final cost can fluctuate based on actual expenses, making direct price comparisons difficult. However, the fixed fee component provides some predictability in contractor profit. Further analysis would require understanding the scope of work and the specific services delivered to assess if the overall cost represents good value for the intended outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that there were 5 bidders indicates a reasonable level of interest in this opportunity. A competitive process generally helps in achieving fair market prices and selecting the most capable contractor.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, potentially leading to cost savings and higher quality services.

Public Impact

The primary beneficiaries are children and youth in the regions where the Integrated Child and Youth Development (ICYD) Activity is implemented. The contract aims to deliver services focused on integrated child and youth development, likely encompassing education, health, protection, and economic empowerment. The geographic impact will be determined by the specific countries or regions targeted by USAID's ICYD program. Workforce implications may include the creation of jobs for local staff, international experts, and support personnel involved in program implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently, as the government bears the risk of actual costs incurred.
The broad nature of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not clearly defined and monitored.
Dependence on a single contractor for a significant duration may limit flexibility in adapting to changing program needs or exploring alternative solutions.

Positive Signals

Full and open competition suggests a robust selection process, likely resulting in a qualified and capable contractor.
The definitive contract award indicates a strategic alignment with USAID's long-term development goals.
The fixed fee component in the CPFF structure provides a degree of cost certainty regarding contractor profit.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically related to international development and social programs. This sector is characterized by a mix of large, established non-profits and specialized consulting firms. Spending in this area is driven by government foreign aid objectives and the need for expertise in areas like education, health, and community development. Comparable spending benchmarks would typically be found within USAID's broader portfolio of development assistance contracts.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors. However, the prime contractor, Education Development Center, Inc., may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID), likely through its contracting officers and program officials. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated by the contract award notice, but detailed programmatic oversight and Inspector General jurisdiction would depend on the specific nature of the services and the agency's internal policies.

Related Government Programs

USAID Development Assistance
Global Health Programs
Education Sector Programs
International Youth Programs
Technical Assistance Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Broad NAICS code may lead to scope definition challenges.
Potential for contractor performance issues in complex international environments.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $76.2 million to EDUCATION DEVELOPMENT CENTER, INC.. COMPETITIVE CONTRACT FOR INTEGRATED CHILD AND YOUTH DEVELOPMENT (ICYD) ACTIVITY

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 $76.2 million.

What is the period of performance?

Start: 2020-08-12. End: 2024-12-02.

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

Education Development Center, Inc. (EDC) is a well-established organization with a long history of working on international development projects, including many funded by USAID. They have a significant portfolio of contracts focused on education, health, and workforce development in various countries. Their track record generally indicates experience in managing complex, multi-year projects in challenging environments. Specific performance data on past USAID contracts, such as on-time delivery, budget adherence, and achievement of development outcomes, would provide a more granular assessment. Reviewing past performance evaluations and any documented issues or successes would be crucial for a comprehensive understanding of their capabilities and reliability in executing this ICYD Activity.

How does the $76.2 million contract value compare to similar integrated child and youth development programs funded by USAID or other agencies?

The $76.2 million contract value for the Integrated Child and Youth Development (ICYD) Activity is substantial and suggests a significant, multi-year program. To benchmark this value, one would need to compare it against other large-scale USAID initiatives in similar sectors (e.g., education, youth empowerment, child welfare) or against programs funded by comparable agencies like the U.S. Department of State or other bilateral/multilateral development organizations. Factors such as the geographic scope, the intensity of services, the target population size, and the specific development objectives will heavily influence the cost. Without access to detailed program descriptions and budgets of comparable contracts, it's difficult to definitively state whether this represents a high, low, or average investment. However, the duration (over 4 years) and the comprehensive nature implied by 'integrated' suggest a significant resource allocation.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for international development, and how are they mitigated?

The primary risk with a CPFF contract is that the government bears the risk of actual costs incurred by the contractor, which could exceed initial estimates, while the contractor is guaranteed a fixed profit. This can incentivize less cost-consciousness if not managed properly. For international development, risks are amplified by potential political instability, currency fluctuations, logistical challenges, and the difficulty in precisely defining all service needs upfront. Mitigation strategies include robust oversight by the contracting officer's representative (COR), detailed performance work statements, regular financial audits, clear reporting requirements on expenditures and progress, and strong negotiation of the fixed fee percentage. USAID's established contract management procedures and the contractor's own internal controls are critical for managing these risks effectively.

What are the potential implications of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) for program effectiveness and oversight?

The broad classification of NAICS 541990, 'All Other Professional, Scientific, and Technical Services,' indicates that the contract encompasses a wide array of services that do not fit into more specific categories. While this offers flexibility, it also presents challenges for program effectiveness and oversight. It can be difficult to precisely define the scope of work, potentially leading to scope creep, misunderstandings, or a lack of focus. For oversight, it requires vigilant monitoring to ensure that all services delivered align with the intended objectives and that the contractor is not overcharging for services that are outside the spirit of the agreement. Clear articulation of deliverables, performance metrics, and regular progress reviews are essential to ensure effectiveness and maintain control over the contract's execution.

How does the level of competition (5 bidders) influence the value and quality of services obtained for this contract?

Having five bidders for this contract suggests a healthy level of competition, which generally benefits the procuring agency and taxpayers. A competitive environment encourages bidders to offer their best technical solutions and pricing to win the award. This can lead to better value for money, as contractors are incentivized to be efficient and innovative. Furthermore, a larger pool of bidders increases the likelihood that the agency will select a contractor with the most suitable expertise and experience for the specific requirements. While five bidders is a good number, the ultimate impact on value and quality also depends on the rigor of the evaluation criteria used by USAID and the specific capabilities of the competing firms.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 72061720R00004

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 43 FOUNDRY AVENUE, WALTHAM, MA, 02453

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: $118,909,862

Exercised Options: $118,909,862

Current Obligation: $76,179,240

Actual Outlays: $75,437,625

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $24,018,787

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline