USAID's $20.3M Youth Activity contract aims to boost economic self-reliance for 20,000 youth

Contract Overview

Contract Amount: $20,286,524 ($20.3M)

Contractor: Education Development Center, Inc.

Awarding Agency: Agency for International Development

Start Date: 2021-07-01

End Date: 2026-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE GOAL OF THE PEER YOUTH ACTIVITY IS THAT 20,000 TARGETED YOUTH WILL HAVE INCREASED ECONOMIC SELF-RELIANCE AND RESILIENCE

Plain-Language Summary

Agency for International Development obligated $20.3 million to EDUCATION DEVELOPMENT CENTER, INC. for work described as: THE GOAL OF THE PEER YOUTH ACTIVITY IS THAT 20,000 TARGETED YOUTH WILL HAVE INCREASED ECONOMIC SELF-RELIANCE AND RESILIENCE Key points: 1. Contract focuses on economic self-reliance and resilience for targeted youth populations. 2. Performance period spans five years, indicating a long-term investment in youth development. 3. The contract is a Cost Plus Fixed Fee type, which can incentivize cost control. 4. Competition was full and open, suggesting a broad market engagement. 5. The primary contractor, Education Development Center, Inc., has a significant role in program execution. 6. The contract's success hinges on reaching 20,000 youth with measurable outcomes.

Value Assessment

Rating: good

The contract value of $20.3 million over five years for a program targeting 20,000 youth suggests a per-participant investment of approximately $1,015. This appears reasonable for programs focused on economic self-reliance and resilience, which often involve training, mentorship, and resource provision. Benchmarking against similar international development programs for youth economic empowerment would provide further context, but the initial assessment indicates a fair allocation of resources for the stated goals.

Cost Per Unit: Approximately $1,015 per participant (20,000 youth over 5 years).

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. This process is designed to foster a competitive environment, potentially leading to better pricing and innovative solutions. The presence of three bidders, as indicated, suggests a moderate level of competition for this specific requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a wider range of proposals and potentially driving down costs through market forces.

Public Impact

Benefits targeted youth in developing regions by enhancing their economic self-reliance and resilience. Delivers programs aimed at improving economic opportunities and stability for young individuals. Geographic impact is determined by USAID's program focus areas, likely in countries with significant youth populations facing economic challenges. Workforce implications include potential job creation within implementing organizations and skill development for the youth participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring the 20,000 youth target is met with demonstrable improvements in economic self-reliance.
Verifying that the 'resilience' aspect of the program is effectively measured and achieved.
Monitoring the effective utilization of funds under the Cost Plus Fixed Fee structure to prevent cost overruns.
Assessing the long-term sustainability of economic gains for participants beyond the contract period.

Positive Signals

The clear objective of increasing economic self-reliance and resilience provides a measurable goal.
The five-year duration allows for sustained intervention and impact assessment.
Full and open competition suggests a robust selection process for the implementing partner.
The contract's focus on a critical demographic (youth) aligns with development priorities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on international development and program management. The market for such services is global, with numerous organizations specializing in development assistance, education, and economic empowerment. USAID's spending in this area is part of a broader effort by governments and international bodies to address global challenges like poverty, unemployment, and instability, particularly among youth populations. Comparable spending benchmarks would involve looking at other large-scale youth development or economic opportunity programs funded by development agencies.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Therefore, the direct impact on small businesses is not explicitly defined. However, the prime contractor, Education Development Center, Inc., may engage small businesses as subcontractors for specialized services or local implementation, which would need to be assessed through further review of subcontracting plans.

Oversight & Accountability

Oversight for this contract would primarily be conducted by the Agency for International Development (USAID), likely through its program officers and contracting specialists. Accountability measures would be embedded in the contract's performance work statement, requiring regular reporting on progress towards the 20,000 youth target and economic outcomes. Transparency is typically managed through public contract databases and reporting requirements, though detailed programmatic insights may be limited. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract funds.

Related Government Programs

USAID Youth Development Programs
International Economic Empowerment Initiatives
Global Youth Resilience Projects
Development Assistance for Developing Nations

Risk Flags

Potential for cost overruns due to CPFF structure without strong oversight.
Difficulty in accurately measuring 'resilience' as a program outcome.
External economic or political factors in target countries impacting program success.
Ensuring the program effectively reaches and impacts the full 20,000 target youth.
Sustainability of economic gains for participants beyond the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $20.3 million to EDUCATION DEVELOPMENT CENTER, INC.. THE GOAL OF THE PEER YOUTH ACTIVITY IS THAT 20,000 TARGETED YOUTH WILL HAVE INCREASED ECONOMIC SELF-RELIANCE AND RESILIENCE

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 $20.3 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-06-30.

What is the track record of Education Development Center, Inc. in managing similar international youth economic development programs?

Education Development Center, Inc. (EDC) has a long history of implementing international development programs, including those focused on youth education, workforce development, and economic empowerment. They have managed numerous projects funded by USAID and other international donors, often in challenging environments. Their experience typically involves designing and delivering curricula, providing technical assistance to local partners, and monitoring program outcomes. A detailed review of EDC's past performance on similar USAID-funded youth activities, including project scope, geographic reach, budget management, and reported successes or challenges, would be necessary to fully assess their suitability and capacity for this specific 'Youth Activity' contract. This would involve examining project evaluations, final reports, and any publicly available performance data.

How does the per-participant cost of $1,015 compare to other USAID youth economic development initiatives?

The estimated per-participant cost of approximately $1,015 for this USAID Youth Activity contract needs to be benchmarked against similar programs to assess its value for money. USAID funds a variety of youth-focused initiatives globally, with costs varying significantly based on the program's intensity, duration, geographic location, and specific objectives (e.g., vocational training vs. entrepreneurship support vs. basic life skills). Programs in high-cost-of-living countries or those requiring extensive one-on-one mentorship or specialized equipment may have higher per-participant costs. Conversely, programs focused on broader community engagement or digital learning might achieve lower costs. A comprehensive comparison would involve analyzing the scope of services provided, the depth of intervention, and the expected outcomes of comparable USAID projects over the past five to ten years.

What are the primary risks associated with achieving the goal of increased economic self-reliance and resilience for 20,000 youth?

Several risks could impede the achievement of increased economic self-reliance and resilience for 20,000 youth. Macroeconomic instability in the target countries, such as high inflation or currency devaluation, can undermine economic gains. Political instability or conflict can disrupt program delivery and create an unsafe environment for participants. Furthermore, limited local market absorption capacity for the skills being taught, or a lack of access to capital for aspiring entrepreneurs, can hinder economic self-reliance. Social and cultural barriers, including gender inequality or traditional norms, might also limit youth participation and success. Finally, the effectiveness of the implementing partner (Education Development Center, Inc.) in adapting to local contexts and delivering high-quality, relevant programming is a critical factor. Measuring 'resilience' itself presents an inherent challenge, requiring robust monitoring and evaluation frameworks.

What specific metrics will be used to measure 'increased economic self-reliance and resilience'?

Measuring 'increased economic self-reliance and resilience' requires a well-defined set of metrics within the contract's Monitoring, Evaluation, and Learning (MEL) plan. For economic self-reliance, key indicators could include: increased household income, employment rates (formal or informal), successful business start-ups or expansions, acquisition of marketable vocational or technical skills, and improved financial literacy. For resilience, metrics might focus on: participants' ability to cope with economic shocks (e.g., maintaining income during a downturn), access to social safety nets or support systems, improved problem-solving skills, and psychological well-being indicators related to economic security. The contract should specify baseline data collection and follow-up assessments to demonstrate change over time for the targeted 20,000 youth.

How does the 'Cost Plus Fixed Fee' contract type influence contractor incentives and potential cost control?

A Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work but does not directly reward cost savings, as the fee remains constant regardless of the final cost. While the contractor is motivated to manage costs to avoid exceeding the estimated cost ceiling (which could lead to absorbing losses if the fee is insufficient), the primary incentive is not cost reduction. This contrasts with fixed-price contracts where savings directly benefit the contractor. For USAID, the CPFF structure allows flexibility in adapting to evolving program needs but requires robust oversight to ensure costs remain reasonable and within the estimated budget. The fixed fee provides a predictable profit margin for the contractor.

What is the historical spending pattern for USAID's youth-focused economic development programs?

USAID has a consistent history of investing in youth economic empowerment and development programs globally, recognizing youth as a critical demographic for sustainable development. Historical spending patterns show significant allocations towards initiatives that aim to improve education, vocational training, entrepreneurship, and access to employment for young people in developing countries. These programs often span multiple years and involve substantial budgets, reflecting the complexity and long-term nature of fostering economic self-reliance. Spending varies by region and country, influenced by local needs, USAID's strategic priorities, and the scale of the challenges faced by youth populations. Analyzing past budgets for similar large-scale youth activities can provide context for the $20.3 million allocated to this specific 'Youth Activity' contract, helping to determine if it aligns with historical investment levels and priorities.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 72066920R00008

Offers Received: 3

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: $21,400,000

Exercised Options: $21,400,000

Current Obligation: $20,286,524

Actual Outlays: $18,444,602

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $2,121,595

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline