USAID's $73.3M contract for educational support services awarded to Creative Associates International, Inc. shows strong competition

Contract Overview

Contract Amount: $73,304,964 ($73.3M)

Contractor: Creative Associates International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2016-08-12

End Date: 2023-09-19

Contract Duration: 2,594 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF NISOME!/LET'S READ ACTIVITY

Plain-Language Summary

Agency for International Development obligated $73.3 million to CREATIVE ASSOCIATES INTERNATIONAL, INC. for work described as: IGF::CL::IGF NISOME!/LET'S READ ACTIVITY Key points: 1. The contract's value of $73.3 million over its duration suggests a significant investment in educational support. 2. Full and open competition indicates a healthy market with multiple potential providers vying for the contract. 3. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not managed carefully. 4. The duration of 2594 days (approximately 7 years) points to a long-term need for these services. 5. The absence of small business set-aside suggests the primary contractor is likely a large business, with potential for subcontracting. 6. The contract's focus on educational support services aligns with broader development goals.

Value Assessment

Rating: good

The contract value of $73.3 million over nearly 7 years for educational support services appears reasonable given the scope. Without specific benchmarks for similar large-scale international educational programs, a direct per-project comparison is difficult. However, the Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, requires diligent oversight to ensure costs remain within reasonable bounds and that the fixed fee adequately compensates the contractor for their efforts without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 4 bidders (as indicated by 'no': 4) suggests a competitive environment for this type of service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive proposals, maximizing the value of the awarded funds.

Public Impact

Beneficiaries include students and educators in regions targeted by USAID's educational initiatives. Services delivered likely encompass curriculum development, teacher training, educational material provision, and program management. Geographic impact is determined by USAID's operational areas, potentially spanning multiple developing countries. Workforce implications include employment for program managers, educators, trainers, and support staff, both domestically and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if not rigorously monitored.
Long contract durations may present challenges in adapting to evolving educational needs or geopolitical shifts.
Reliance on a single large contractor could limit flexibility and innovation over the contract's life.

Positive Signals

Full and open competition ensures a wide range of potential providers are considered, fostering market efficiency.
The significant investment indicates a commitment to long-term educational development goals.
Awarding to a single entity for a large sum suggests a recognized capability in delivering complex educational programs.

Sector Analysis

This contract falls within the broader 'Educational Support Services' sector, often associated with government contracting for international development and public administration. The market for such services is driven by governmental foreign aid budgets and international development organizations. Comparable spending benchmarks would typically involve other large-scale USAID or State Department contracts focused on education in developing nations, as well as similar initiatives by other international bodies like the World Bank or UN agencies.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This indicates that the primary award went to a large business. While there's no explicit mention of subcontracting plans, large prime contractors are often required to meet small business subcontracting goals. The impact on the small business ecosystem would depend on whether Creative Associates International, Inc. actively seeks out and utilizes small businesses for specialized services within this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). Mechanisms likely include regular performance reviews, financial audits, and adherence to reporting requirements stipulated in the contract. Transparency is generally maintained through contract award databases and public reporting of federal spending. The Inspector General of USAID would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

USAID Education Programs
Department of State - Foreign Assistance
International Development Aid
Global Education Initiatives
Contracting for Non-Profit Services

Risk Flags

Potential for cost overruns due to CPFF contract type.
Security risks in deployment regions.
Logistical challenges in delivering services and materials.
Political instability impacting program continuity.
Cultural and language barriers affecting program adoption.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $73.3 million to CREATIVE ASSOCIATES INTERNATIONAL, INC.. IGF::CL::IGF NISOME!/LET'S READ ACTIVITY

Who is the contractor on this award?

The obligated recipient is CREATIVE ASSOCIATES INTERNATIONAL, 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 $73.3 million.

What is the period of performance?

Start: 2016-08-12. End: 2023-09-19.

What is the track record of Creative Associates International, Inc. with USAID and similar federal agencies?

Creative Associates International, Inc. has a substantial history of working with USAID and other federal agencies on international development projects, particularly in education and democracy and governance. A review of federal procurement data reveals numerous past awards to the company, often for large-scale, complex programs in challenging environments. Their experience typically involves curriculum development, teacher training, educational system strengthening, and community engagement. While specific performance metrics for past contracts are not detailed here, their consistent receipt of significant awards suggests a generally positive track record and established relationship with agencies like USAID. Further analysis would involve examining past performance evaluations and any documented issues or successes on previous contracts.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is common for services where the scope of work may evolve or is difficult to precisely define upfront, such as complex international development projects. It reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but carries a higher risk of cost growth for the government if not managed diligently. Fixed-Price Incentive (FPI) contracts also share costs but have defined targets and sharing clauses. CPFF is generally considered less price-competitive upfront than FFP but can be more adaptable. The effectiveness of CPFF hinges on robust government oversight to control costs and ensure the fixed fee remains appropriate for the effort.

What are the key performance indicators (KPIs) typically used to measure the success of educational support service contracts like this one?

Key Performance Indicators (KPIs) for educational support service contracts often focus on measurable improvements in educational outcomes and program efficiency. For a contract like this, common KPIs might include: increased student enrollment and retention rates, improved learning assessment scores (literacy, numeracy), enhanced teacher qualification and effectiveness (measured through training completion and classroom observation), development and dissemination of quality educational materials, successful implementation of new curricula, and effective program management leading to timely delivery within budget. USAID's specific requirements would dictate the precise KPIs, often tied to broader development goals such as improving access to quality education and fostering sustainable learning environments.

What is the historical spending trend for educational support services by USAID over the last five years?

Historical spending by USAID on educational support services has generally been substantial, reflecting a consistent commitment to global education initiatives as a key component of foreign assistance. While precise figures fluctuate annually based on global needs, geopolitical priorities, and budget allocations, USAID consistently awards significant contracts and grants in this sector. Spending trends are influenced by factors such as the number of active conflicts, the focus on specific development goals (e.g., girls' education, post-conflict reconstruction), and the overall health of the U.S. foreign aid budget. Analyzing specific year-over-year data from federal procurement databases would reveal detailed trends, including the average contract size, the number of awards, and the primary recipients of these funds.

Are there any known risks associated with the geographic regions where these educational support services might be deployed?

Yes, there are inherent risks associated with deploying educational support services in regions targeted by USAID, which often include developing countries or areas experiencing instability, conflict, or humanitarian crises. These risks can encompass security threats to personnel and assets, political instability that could disrupt program implementation, logistical challenges in delivering resources, corruption risks, cultural and language barriers impacting program effectiveness, and the potential for educational programs to be politicized or co-opted. USAID typically employs risk mitigation strategies, including security protocols, local partnerships, adaptive program design, and robust monitoring and evaluation frameworks, to address these challenges.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5301 WISCONSIN AVE NW STE 700, WASHINGTON, DC, 20015

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $73,540,306

Exercised Options: $73,540,306

Current Obligation: $73,304,964

Actual Outlays: $33,717,638

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $24,018,597

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400052

IDV Type: IDC

Timeline