USAID's Honduras Reading Activity Contract Exceeds $41M for Education Support

Contract Overview

Contract Amount: $41,394,512 ($41.4M)

Contractor: Education Development Center, Inc.

Awarding Agency: Agency for International Development

Start Date: 2017-08-10

End Date: 2024-11-13

Contract Duration: 2,652 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF THIS IS A COST-PLUS-FIXED-FEE (CPFF) COMPLETION-TYPE CONTRACT IN ACCORDANCE WITH FAR 16.306(D). THE OBJECTIVE OF THE HONDURAS READING ACTIVITY IS TO SUPPORT THE EFFORTS OF THE GOVERNMENT OF HONDURAS (GOH), IN COLLABORATION WITH OTHER DONORS, CIVIL SOCIETY, AND THE PRIVATE SECTOR, TO IMPROVE READING OUTCOMES OF HONDURAN STUDENTS IN BASIC EDUCATION GRADES ONE TO SIX IN THE GEOGRAPHIC AREAS TARGETED BY THE USAID/HONDURAS CDCS 2015-2019 AS MAY BE AMENDED, NAMELY THE MUNICIPALITIES OF TEGUCIGALPA, SAN PEDRO SULA, CHOLOMA, TELA, AND LA CEIBA UNDER DEVELOPMENT OBJECTIVE ONE (DO1) AND THE DEPARTMENTS OF COPAN, INTIBUCA, LA PAZ, LEMPIRA, OCOTEPEQUE AND SANTA BARBARA UNDER DEVELOPMENT OBJECTIVE TWO (DO2).

Plain-Language Summary

Agency for International Development obligated $41.4 million to EDUCATION DEVELOPMENT CENTER, INC. for work described as: IGF::OT::IGF THIS IS A COST-PLUS-FIXED-FEE (CPFF) COMPLETION-TYPE CONTRACT IN ACCORDANCE WITH FAR 16.306(D). THE OBJECTIVE OF THE HONDURAS READING ACTIVITY IS TO SUPPORT THE EFFORTS OF THE GOVERNMENT OF HONDURAS (GOH), IN COLLABORATION WITH OTHER DONORS, CIVIL SOCIETY, AND THE PR… Key points: 1. Contract awarded for improving reading outcomes in Honduran basic education. 2. Focuses on grades 1-6 in specific geographic areas and departments. 3. Competition method was 'Full and Open', suggesting broad market engagement. 4. Sector is professional, scientific, and technical services, specifically education support.

Value Assessment

Rating: fair

The contract is a Cost-Plus-Fixed-Fee (CPFF) type, which can lead to cost overruns if not managed carefully. The fixed fee component provides some incentive for the contractor to control costs, but the overall cost structure warrants close monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: Taxpayer funds are being used to support educational development in Honduras, aiming for improved student outcomes. The effectiveness of this spending will depend on the program's successful implementation and measurable impact.

Public Impact

Enhances educational resources and teacher training in targeted Honduran regions. Aims to improve literacy rates among primary school students. Supports the Honduran government's efforts in basic education reform. Potential for long-term positive impact on student learning and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires careful cost oversight.
Geographic focus may limit immediate broad impact.
Success hinges on effective program implementation and GOH collaboration.

Positive Signals

Addresses a critical need for improved reading skills.
Utilizes full and open competition for award.
Supports U.S. foreign assistance goals in education.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on international development and education. Spending benchmarks for similar international education programs vary widely based on scope and duration.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside or requirement (sb: false). Therefore, the direct impact on small businesses is not explicitly detailed in this award.

Oversight & Accountability

The contract's CPFF structure necessitates robust oversight from USAID to ensure costs are reasonable and allocable to the contract's objectives. Regular performance reviews and financial audits are crucial for accountability.

Related Government Programs

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

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Dependency on collaboration with the Government of Honduras.
Effectiveness relies heavily on contractor's implementation capacity.
Geographic limitations may affect overall national impact.
Measuring long-term educational impact can be challenging.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $41.4 million to EDUCATION DEVELOPMENT CENTER, INC.. IGF::OT::IGF THIS IS A COST-PLUS-FIXED-FEE (CPFF) COMPLETION-TYPE CONTRACT IN ACCORDANCE WITH FAR 16.306(D). THE OBJECTIVE OF THE HONDURAS READING ACTIVITY IS TO SUPPORT THE EFFORTS OF THE GOVERNMENT OF HONDURAS (GOH), IN COLLABORATION WITH OTHER DONORS, CIVIL SOCIETY, AND THE PRIVATE SECTOR, TO IMPROVE READING OUTCOMES OF HONDURAN STUDENTS IN BASIC EDUCATION GRADES ONE TO SIX IN THE GEOGRAPHIC AREAS TARGETED BY THE USAID/HONDURAS CDCS 2015-2019 AS MAY BE AMENDED, NAMELY THE MUNICIPALITIES OF TE

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 $41.4 million.

What is the period of performance?

Start: 2017-08-10. End: 2024-11-13.

What specific metrics will be used to measure the success of the Honduras Reading Activity in improving reading outcomes?

Success will be measured through a combination of quantitative and qualitative indicators. Key metrics likely include standardized reading assessment scores for students in grades 1-6, teacher competency assessments, and the number of educational materials distributed. USAID's monitoring and evaluation plan will detail the specific targets and methodologies for data collection and analysis to ensure accountability and demonstrate impact.

How will USAID ensure cost efficiency and prevent potential overruns in this Cost-Plus-Fixed-Fee contract?

USAID employs several mechanisms to manage CPFF contracts. This includes rigorous budget reviews, regular financial reporting requirements from the contractor, and performance-based milestone tracking. The fixed fee provides a ceiling for contractor profit, incentivizing efficiency. Independent audits and site visits will also be conducted to verify expenditures and ensure alignment with project objectives.

What is the expected long-term sustainability of the reading improvements beyond the contract period?

Sustainability is a critical component of USAID's development approach. The program aims to build capacity within the Honduran government and local educational institutions to manage and sustain reading initiatives independently. This involves training local educators, developing sustainable curriculum materials, and fostering strong partnerships with civil society and the private sector to ensure continued support and ownership.

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: SOL-522-17-000002

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: $54,960,103

Exercised Options: $54,960,103

Current Obligation: $41,394,512

Actual Outlays: $27,449,361

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $696,099

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline