USAID's $22.4M contract for youth HIV prevention in South Africa awarded to Education Development Center, Inc

Contract Overview

Contract Amount: $22,400,000 ($22.4M)

Contractor: Education Development Center, Inc.

Awarding Agency: Agency for International Development

Start Date: 2021-11-01

End Date: 2025-09-30

Contract Duration: 1,429 days

Daily Burn Rate: $15.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THE SCHOOL-BASED SEXUALITY AND HIV PREVENTION EDUCATION ACTIVITY IS TO SUPPORT THE SOUTH AFRICAN GOVERNMENT'S DBE TO REDUCE NEW HIV INFECTIONS AMONGST YOUTH, SPECIFICALLY AGYW.

Plain-Language Summary

Agency for International Development obligated $22.4 million to EDUCATION DEVELOPMENT CENTER, INC. for work described as: THE PURPOSE OF THE SCHOOL-BASED SEXUALITY AND HIV PREVENTION EDUCATION ACTIVITY IS TO SUPPORT THE SOUTH AFRICAN GOVERNMENT'S DBE TO REDUCE NEW HIV INFECTIONS AMONGST YOUTH, SPECIFICALLY AGYW. Key points: 1. Focuses on a critical public health issue with significant youth impact. 2. Contract awarded via non-competitive process, raising questions about potential cost efficiencies. 3. Long duration (1429 days) suggests a complex, multi-year program. 4. Performance period extends into late 2025, indicating ongoing need. 5. Sector positioning within international development and public health services. 6. Risk indicators may include geopolitical stability and program execution in a challenging environment.

Value Assessment

Rating: fair

The contract value of $22.4 million over approximately four years represents a substantial investment in youth health programming. Benchmarking this against similar international HIV prevention initiatives is challenging without more granular data on specific activities and outcomes. The cost-plus-fixed-fee structure allows for cost reimbursement plus a predetermined fee, which can incentivize efficiency but also carries risks if not closely monitored. Without comparative pricing or detailed cost breakdowns, assessing the value-for-money is difficult, but the scale suggests a significant program requiring robust oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential vendors. While sole-source awards can be justified for specialized expertise or urgent needs, they limit the opportunity for competitive bidding, which typically drives down prices and fosters innovation. The lack of competition here means that the government did not benefit from a marketplace evaluation of different approaches and pricing structures for this critical service.

Taxpayer Impact: The absence of competition means taxpayers may not have received the most cost-effective solution, as there was no direct price pressure from alternative providers.

Public Impact

Directly benefits youth in South Africa, particularly adolescent girls and young women (AGYW), by providing sexual health and HIV prevention education. Aims to reduce new HIV infections, a key public health goal for the region. Supports the South African government's Department of Basic Education (DBE) in implementing prevention programs. Potential workforce implications for local educators, health workers, and program implementers in South Africa.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency in the procurement process.
Long contract duration requires sustained monitoring for effectiveness and efficiency.
Geopolitical and health-related risks inherent in international development programs.

Positive Signals

Addresses a critical public health need with a clear objective.
Partnership with the South African government indicates alignment with national priorities.
Focus on a vulnerable demographic (youth, AGYW) suggests targeted impact.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on public health and international development. The market for such services involves non-governmental organizations (NGOs), research institutions, and specialized consulting firms that partner with government agencies like USAID. Spending in this area is driven by global health initiatives, foreign aid budgets, and specific development challenges like HIV/AIDS prevention. Comparable spending benchmarks would typically be found within USAID's broader portfolio of health and education programs in sub-Saharan Africa.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The awardee, Education Development Center, Inc., is a large non-profit organization. The focus is on program delivery rather than fostering small business participation within the contracting ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID), likely through its mission in South Africa and relevant program offices. Accountability measures would include regular performance reporting, financial audits, and adherence to the terms of the cost-plus-fixed-fee agreement. Transparency is facilitated through contract award databases, but detailed programmatic oversight and specific Inspector General (IG) jurisdiction would depend on USAID's internal policies and any specific IG investigations related to foreign assistance.

Related Government Programs

Global Health Security Agenda
PEPFAR (President's Emergency Plan for AIDS Relief)
USAID Youth Programs
International HIV/AIDS Prevention and Treatment

Risk Flags

Sole-source award
Potential for cost inefficiencies due to lack of competition
Complexity of international program implementation
Health and social risks in target population

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $22.4 million to EDUCATION DEVELOPMENT CENTER, INC.. THE PURPOSE OF THE SCHOOL-BASED SEXUALITY AND HIV PREVENTION EDUCATION ACTIVITY IS TO SUPPORT THE SOUTH AFRICAN GOVERNMENT'S DBE TO REDUCE NEW HIV INFECTIONS AMONGST YOUTH, SPECIFICALLY AGYW.

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 $22.4 million.

What is the period of performance?

Start: 2021-11-01. End: 2025-09-30.

What is the specific track record of Education Development Center, Inc. in managing large-scale international health programs, particularly in sub-Saharan Africa?

Education Development Center, Inc. (EDC) has a long history of implementing international development projects, including significant work in global health and education. They have managed numerous projects funded by USAID and other international donors, focusing on areas such as HIV/AIDS prevention, maternal and child health, education system strengthening, and workforce development. Their experience in sub-Saharan Africa is extensive, with projects implemented across various countries. While specific details on past performance related to youth HIV prevention in South Africa would require deeper analysis of their project portfolio and evaluation reports, EDC is generally recognized as a capable implementer of complex, multi-year development initiatives. Their track record suggests they possess the organizational capacity and technical expertise to manage a program of this scale and scope.

How does the $22.4 million contract value compare to similar youth HIV prevention programs funded by USAID or other agencies in the region?

Comparing the $22.4 million contract value requires context regarding the scope, duration, and specific activities of similar programs. USAID's PEPFAR initiative, for instance, funds a wide range of HIV/AIDS prevention, treatment, and care services, with budgets varying significantly based on country, target population, and intervention type. A contract of this size, awarded over approximately four years, suggests a comprehensive, multi-faceted approach to youth HIV prevention education. It is likely within the range for large-scale, multi-year public health interventions in a region heavily impacted by HIV/AIDS. However, without specific details on the number of beneficiaries, the intensity of interventions, and the geographic coverage intended by this contract, a precise benchmark against other programs is difficult. The value reflects a substantial commitment to addressing a critical health challenge.

What are the primary risks associated with implementing a youth sexual health and HIV prevention program in South Africa, and how are they mitigated in this contract?

Key risks in implementing such a program in South Africa include socio-cultural barriers to discussing sexual health, potential stigma associated with HIV/AIDS, ensuring consistent engagement with youth, and the logistical challenges of reaching diverse populations. Geopolitical instability or shifts in government policy could also pose risks. This contract, awarded to Education Development Center, Inc., likely incorporates risk mitigation strategies through its program design, which would include community engagement, culturally sensitive messaging, and partnerships with local organizations and the Department of Basic Education. The cost-plus-fixed-fee structure allows for flexibility in adapting to changing circumstances, though it necessitates robust financial oversight. The long duration also implies a phased approach, allowing for adaptive management based on ongoing monitoring and evaluation.

What does the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) classification imply about the nature of the services provided under this contract?

The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad category that encompasses a wide range of non-classified services. For this contract, it suggests that the services go beyond typical categories like research and development, consulting, or specific scientific testing. In the context of the school-based sexuality and HIV prevention education activity, this code likely covers a combination of program design, curriculum development, training of educators, community outreach, monitoring and evaluation, and potentially technical assistance to the South African government. It indicates a comprehensive service package aimed at achieving specific public health outcomes through educational and technical interventions, rather than a single, narrowly defined service.

Given the sole-source nature of the award, what mechanisms are in place to ensure accountability and prevent cost overruns?

Accountability and prevention of cost overruns in a sole-source, cost-plus-fixed-fee contract rely heavily on robust oversight by the contracting agency, USAID. Mechanisms typically include detailed work plans and budgets that require USAID approval, regular financial reporting and audits to track expenditures against the approved budget, and performance monitoring to ensure that the contractor is meeting agreed-upon objectives and milestones. The fixed fee component provides a ceiling for the contractor's profit, incentivizing them to manage costs efficiently. USAID's program officers and contracting specialists are responsible for closely monitoring the contractor's progress, reviewing deliverables, and ensuring compliance with contract terms. Any deviations or potential cost increases must be justified and approved by USAID.

What is the expected impact of this contract on reducing new HIV infections among youth in South Africa, based on the contract's stated purpose?

The contract's stated purpose is to support the South African government's efforts to reduce new HIV infections among youth, specifically adolescent girls and young women (AGYW). The expected impact is achieved through the implementation of school-based sexuality and HIV prevention education activities. This education is designed to equip young people with knowledge about sexual health, risk reduction strategies, and access to relevant services. By increasing awareness, promoting safer behaviors, and potentially facilitating access to testing and counseling, the program aims to directly influence the transmission dynamics of HIV within this vulnerable demographic. The success of the program will be measured by its ability to contribute to a measurable decrease in new infections over its duration.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $22,400,000

Exercised Options: $22,400,000

Current Obligation: $22,400,000

Actual Outlays: $19,830,044

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline