USAID Indonesia's $83.7M Basic Education Project 'Prioritas' awarded to Research Triangle Institute

Contract Overview

Contract Amount: $87,446,220 ($87.4M)

Contractor: Research Triangle Institute

Awarding Agency: Agency for International Development

Start Date: 2012-05-01

End Date: 2017-09-30

Contract Duration: 1,978 days

Daily Burn Rate: $44.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF OTHER FUNCTIONS - USAID/INDONESIA OP IS REQUESTED TO PROCURE A COST-PLUS-FIXED-FEE CONTRACT OF NEW BASIC EDUCATION PROJECT "PRIORITAS" (PRIORITIZING REFORM, INNOVATION, OPPORTUNITIES FOR REACHING INDONESIA'S TEACHERS, ADMINISTRATORS,&STUDENTS)AT THE VALUE OF $83,698,659FOR A TOTAL OF THE PERIOD 5 YEARS. THE INITIAL FUND FOR THIS CONTRACT IS $24,435,056.00

Plain-Language Summary

Agency for International Development obligated $87.4 million to RESEARCH TRIANGLE INSTITUTE for work described as: IGF::OT::IGF OTHER FUNCTIONS - USAID/INDONESIA OP IS REQUESTED TO PROCURE A COST-PLUS-FIXED-FEE CONTRACT OF NEW BASIC EDUCATION PROJECT "PRIORITAS" (PRIORITIZING REFORM, INNOVATION, OPPORTUNITIES FOR REACHING INDONESIA'S TEACHERS, ADMINISTRATORS,&STUDENTS)AT THE VALUE OF $83,698,… Key points: 1. Contract awarded for a 5-year basic education project in Indonesia. 2. Research Triangle Institute is the sole awardee. 3. The contract type is Cost-Plus-Fixed-Fee, which can lead to cost overruns if not managed carefully. 4. The sector is professional, scientific, and technical services, with a focus on education.

Value Assessment

Rating: fair

The contract value of $83.7M over 5 years for an education project appears within a reasonable range for large-scale international development initiatives. However, without specific benchmarks for similar USAID education projects, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The value of the contract represents a significant investment in Indonesian education, with the potential for substantial taxpayer impact depending on the project's effectiveness and efficiency.

Public Impact

Enhances basic education in Indonesia, potentially impacting thousands of students and teachers. Focuses on reform, innovation, and reaching underserved populations. International development aid aims to foster long-term stability and growth. Requires robust oversight to ensure funds are used effectively and ethically.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-Plus-Fixed-Fee contracts can incentivize contractor costs to increase.
Long contract duration (5 years) requires sustained monitoring.
Lack of specific performance metrics in provided data.

Positive Signals

Focus on education, a critical development area.
Awarded under full and open competition.
Potential for significant positive impact on Indonesian education system.

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically related to international education development. Spending in this sector by agencies like USAID is common for global development initiatives, with values varying widely based on project scope and duration.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Given the significant value and duration, robust oversight by USAID is crucial. This includes monitoring contractor performance, financial expenditures, and ensuring the project meets its stated educational objectives to maximize taxpayer value.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Cost-Plus-Fixed-Fee contract type.
Long contract duration.
Potential for cost overruns.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $87.4 million to RESEARCH TRIANGLE INSTITUTE. IGF::OT::IGF OTHER FUNCTIONS - USAID/INDONESIA OP IS REQUESTED TO PROCURE A COST-PLUS-FIXED-FEE CONTRACT OF NEW BASIC EDUCATION PROJECT "PRIORITAS" (PRIORITIZING REFORM, INNOVATION, OPPORTUNITIES FOR REACHING INDONESIA'S TEACHERS, ADMINISTRATORS,&STUDENTS)AT THE VALUE OF $83,698,659FOR A TOTAL OF THE PERIOD 5 YEARS. THE INITIAL FUND FOR THIS CONTRACT IS $24,435,056.00

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

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 $87.4 million.

What is the period of performance?

Start: 2012-05-01. End: 2017-09-30.

What are the key performance indicators (KPIs) for the 'Prioritas' project, and how will their achievement be measured to ensure value for money?

The provided data does not detail the specific Key Performance Indicators (KPIs) for the 'Prioritas' project. To ensure value for money, USAID should have established clear, measurable, achievable, relevant, and time-bound (SMART) KPIs related to educational outcomes, teacher training, and student engagement. Regular performance reviews against these KPIs are essential for accountability and effective resource utilization.

What are the potential risks associated with a Cost-Plus-Fixed-Fee contract for an international education project, and how are they being mitigated?

Cost-Plus-Fixed-Fee contracts carry the risk of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. For this education project, risks include potential overspending on administrative or operational costs, and the fixed fee might not adequately incentivize efficiency. Mitigation strategies should involve stringent cost monitoring, clear definitions of allowable costs, and performance-based incentives tied to project milestones.

How does the Research Triangle Institute's past performance in similar international education projects inform the assessment of this contract's potential effectiveness?

The effectiveness of this contract is significantly influenced by Research Triangle Institute's (RTI) track record. A review of RTI's past performance in managing large-scale, multi-year international education projects, particularly in similar cultural and economic contexts, would be crucial. Evidence of successful project completion, achievement of educational objectives, and efficient resource management in prior engagements would increase confidence in the potential effectiveness of the 'Prioritas' project.

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: SEALED BID

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3040 CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 27709

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: $87,446,220

Exercised Options: $87,446,220

Current Obligation: $87,446,220

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $19,351,880

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline