USAID's $64.6M Early Grade Reading Improvement Activity in Malawi faces scrutiny over cost and effectiveness
Contract Overview
Contract Amount: $64,568,370 ($64.6M)
Contractor: Research Triangle Institute
Awarding Agency: Agency for International Development
Start Date: 2015-09-25
End Date: 2024-04-12
Contract Duration: 3,122 days
Daily Burn Rate: $20.7K/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 EARLY GRADE READING IMPROVEMENT (MERIT) ACTIVITY IN MALAWI
Plain-Language Summary
Agency for International Development obligated $64.6 million to RESEARCH TRIANGLE INSTITUTE for work described as: IGF::OT::IGF EARLY GRADE READING IMPROVEMENT (MERIT) ACTIVITY IN MALAWI Key points: 1. The contract's high cost of $64.6 million raises questions about value for money. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The contract duration of over 8 years may indicate long-term program needs or potential for cost overruns. 4. Educational support services sector spending can vary widely, making direct benchmarks challenging.
Value Assessment
Rating: questionable
The total award of $64.6 million for educational support services over nearly 8.5 years is substantial. Without specific per-unit cost data for educational interventions, it's difficult to benchmark against similar contracts, but the overall scale warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the final award amount and the cost-plus-fixed-fee structure warrant examination to ensure the government received fair value.
Taxpayer Impact: Taxpayer funds are being utilized for a significant international development program. The effectiveness and efficiency of this spending will determine the ultimate return on investment for taxpayers.
Public Impact
Impacts educational outcomes for young learners in Malawi. Supports USAID's foreign aid and development objectives. Represents a significant investment in global education initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High total contract value.
- Long contract duration.
- Cost-plus-fixed-fee contract type.
Positive Signals
- Full and open competition.
- Focus on a critical development area (education).
Sector Analysis
This contract falls within the educational support services sector, often characterized by diverse project scopes and varying cost structures. Benchmarking is challenging without specific details on the educational interventions and their scale.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Agency for International Development (USAID) is responsible for overseeing this contract. Regular performance reviews and audits are crucial to ensure funds are used effectively and objectives are met.
Related Government Programs
- Educational Support Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- High total award value.
- Long contract duration.
- Cost-plus-fixed-fee contract type.
- Potential for scope creep over the long term.
- Dependency on contractor performance for success.
Tags
educational-support-services, agency-for-international-development, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $64.6 million to RESEARCH TRIANGLE INSTITUTE. IGF::OT::IGF EARLY GRADE READING IMPROVEMENT (MERIT) ACTIVITY IN MALAWI
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 $64.6 million.
What is the period of performance?
Start: 2015-09-25. End: 2024-04-12.
What specific educational outcomes are being measured, and what are the targets for this activity?
The activity aims to improve early grade reading in Malawi. Specific measurable outcomes and targets would typically be detailed in the contract's statement of work and performance metrics. These should align with USAID's development goals for the region and be regularly monitored to assess progress and impact.
How is the cost-plus-fixed-fee structure being managed to ensure cost efficiency?
A cost-plus-fixed-fee (CPFF) contract allows the contractor to recover costs plus a fixed fee. Oversight is critical to ensure that costs are reasonable and allocable, and that the fixed fee provides adequate incentive for efficient performance. USAID should have robust mechanisms in place to audit costs and manage the fee.
What is the evidence of the program's effectiveness in improving reading skills in Malawi?
Effectiveness is typically demonstrated through independent evaluations and performance data collected throughout the contract period. Evidence should show a measurable improvement in early grade reading skills attributable to the program's interventions. Regular reporting and impact assessments are key to understanding the program's success.
Industry Classification
NAICS: Educational Services › Educational Support Services › Educational Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $64,939,956
Exercised Options: $64,939,956
Current Obligation: $64,568,370
Actual Outlays: $13,974,347
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $1,087,459
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: AIDOAAI1400044
IDV Type: IDC
Timeline
Start Date: 2015-09-25
Current End Date: 2024-04-12
Potential End Date: 2024-04-12 00:00:00
Last Modified: 2024-04-29
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