USAID's $39.6M Education Contract with EDC Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $39,601,187 ($39.6M)
Contractor: Education Development Center, Inc.
Awarding Agency: Agency for International Development
Start Date: 2013-01-01
End Date: 2018-07-31
Contract Duration: 2,037 days
Daily Burn Rate: $19.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF BASA PILIPINAS PROJECT
Plain-Language Summary
Agency for International Development obligated $39.6 million to EDUCATION DEVELOPMENT CENTER, INC. for work described as: IGF::OT::IGF BASA PILIPINAS PROJECT Key points: 1. The contract awarded to Education Development Center, Inc. (EDC) for educational support services totaled $39.6 million. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. However, the contract type (Cost Plus Fixed Fee) can sometimes lead to higher costs if not managed tightly. 4. The lack of small business participation is noted, which could be a missed opportunity for economic inclusion.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, can be less cost-efficient than fixed-price contracts if not rigorously overseen. Benchmarking against similar educational support service contracts is needed to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to compete. This process generally supports price discovery, but the specific cost outcomes depend on the rigor of the evaluation and negotiation.
Taxpayer Impact: While competition was present, the Cost Plus Fixed Fee structure warrants careful monitoring to ensure taxpayer funds are used efficiently and effectively for the intended educational outcomes.
Public Impact
Impacts educational development programs funded by USAID. Affects the beneficiaries of educational support services in the Philippines. Involves a significant financial commitment from the U.S. government. Raises questions about the efficiency of educational aid delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- No small business participation
- Long contract duration (2037 days)
Positive Signals
- Awarded under full and open competition
- Clear agency (USAID) and purpose (Educational Support Services)
Sector Analysis
This contract falls within the 'Educational Support Services' sector, often managed by agencies like USAID to implement development goals. Spending benchmarks in this sector vary widely based on program scope, location, and duration, but $39.6M represents a substantial investment.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, EDC, did not subcontract with small businesses for this award, potentially limiting opportunities for smaller entities in this significant contract.
Oversight & Accountability
Oversight would typically be managed by the Agency for International Development (USAID) through contract officers and technical monitors. The effectiveness of this oversight is crucial, especially with a Cost Plus Fixed Fee contract, to ensure funds are used appropriately and objectives are met.
Related Government Programs
- Educational Support Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Lack of small business participation
- Long contract duration may indicate complexity or potential for scope creep
- Need for detailed performance and value assessment
Tags
educational-support-services, agency-for-international-development, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $39.6 million to EDUCATION DEVELOPMENT CENTER, INC.. IGF::OT::IGF BASA PILIPINAS PROJECT
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 $39.6 million.
What is the period of performance?
Start: 2013-01-01. End: 2018-07-31.
What specific educational outcomes were achieved with the $39.6 million investment, and how do they compare to the program's initial objectives?
Assessing the value requires a detailed review of the program's performance metrics against its stated goals. Without specific outcome data, it's difficult to definitively state the return on investment. However, the contract's duration and cost suggest a significant scope, implying a substantial effort to achieve educational improvements.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to mitigate cost overruns and ensure the government received the best possible price?
Cost Plus Fixed Fee contracts necessitate robust oversight to control costs. Mechanisms typically include detailed cost reporting, regular audits, and strong negotiation by the contracting officer. The fixed fee provides an incentive for the contractor to manage costs efficiently, but the government bears the direct cost risk.
How effectively did the full and open competition process translate into competitive pricing and optimal contractor performance for this educational support project?
Full and open competition generally promotes competitive pricing by allowing a wide range of qualified bidders. However, the ultimate success in achieving optimal pricing and performance depends on the clarity of the solicitation, the evaluation criteria, and the negotiation process. The contract's final cost and EDC's performance would provide the best indicators.
Industry Classification
NAICS: Educational Services › Educational Support Services › Educational Support Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SOL-492-12-000019
Offers Received: 4
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: $39,680,000
Exercised Options: $39,680,000
Current Obligation: $39,601,187
Actual Outlays: $100,000
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $6,451,848
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-01-01
Current End Date: 2018-07-31
Potential End Date: 2018-07-31 00:00:00
Last Modified: 2021-05-18
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