USAID's $33.9M education contract to EDC faces scrutiny over value and competition

Contract Overview

Contract Amount: $33,903,944 ($33.9M)

Contractor: Education Development Center, Inc.

Awarding Agency: Agency for International Development

Start Date: 2017-03-02

End Date: 2024-08-16

Contract Duration: 2,724 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF ACTIVITY ENTITLED ACCELERATED QUALITY EDUCATION FOR LIBERIAN CHILDREN.

Plain-Language Summary

Agency for International Development obligated $33.9 million to EDUCATION DEVELOPMENT CENTER, INC. for work described as: IGF::OT::IGF ACTIVITY ENTITLED ACCELERATED QUALITY EDUCATION FOR LIBERIAN CHILDREN. Key points: 1. The contract's value proposition is unclear, with limited data on performance metrics and cost-effectiveness. 2. Full and open competition was utilized, but the number of bidders (2) raises questions about robust market engagement. 3. Potential risks include contractor performance and the long duration of the contract, spanning over 7 years. 4. The contract is positioned within the 'Other Professional, Scientific, and Technical Services' sector, indicating a broad service scope. 5. Performance context is lacking, making it difficult to assess if the allocated funds are yielding optimal educational outcomes. 6. The contract's cost-plus-fixed-fee structure requires careful monitoring to ensure cost control and prevent overruns.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging due to the lack of specific performance data and detailed cost breakdowns. The $33.9 million allocated over nearly 7.5 years suggests a significant investment in educational services. However, without clear metrics on student outcomes, teacher training effectiveness, or resource utilization, it's difficult to ascertain if this represents good value for money compared to similar international education initiatives. The cost-plus-fixed-fee (CPFF) contract type, while allowing flexibility, necessitates rigorous oversight to ensure costs remain reasonable and aligned with objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, with only two bidders, the level of competition may not have been sufficient to drive the most competitive pricing. A broader range of bidders could have potentially led to more innovative solutions and lower costs for the government. The limited number of participants warrants further investigation into any potential barriers to entry or pre-qualification requirements that might have restricted the field.

Taxpayer Impact: While full and open competition is the ideal, a limited number of bidders can sometimes result in higher prices than might be achieved with more robust competition. Taxpayers may not have received the full benefit of a highly competitive market.

Public Impact

The primary beneficiaries are likely students and educators in Liberia, receiving support for educational programs. Services delivered include professional, scientific, and technical support aimed at improving educational quality. The geographic impact is focused on Liberia, addressing specific educational needs within the country. Workforce implications may involve local employment opportunities for program implementation and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over 7 years increases risk of scope creep and potential cost overruns.
Limited competition (2 bidders) may have resulted in suboptimal pricing for taxpayers.
Cost-plus-fixed-fee contract type requires diligent oversight to manage costs effectively.
Lack of detailed performance metrics makes it difficult to assess program effectiveness and value for money.

Positive Signals

Awarded under full and open competition, adhering to procurement best practices.
Contractor (Education Development Center, Inc.) likely has experience in international development and education.
Long contract duration allows for sustained program implementation and potential for significant impact.

Sector Analysis

This contract falls under the broad category of 'All Other Professional, Scientific, and Technical Services,' which encompasses a wide array of specialized support functions. In the context of international development, such contracts often fund critical services like program management, technical assistance, research, and evaluation. The market for these services is global, with numerous organizations specializing in education, public health, and economic development. USAID's spending in this area is substantial, reflecting a commitment to leveraging expertise for global challenges. Benchmarking requires comparing similar education-focused contracts in developing nations.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not provided in the data. Without this detail, it is difficult to assess the impact on the small business ecosystem or whether opportunities were created for smaller entities to contribute to this significant contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). As a cost-plus-fixed-fee contract, USAID is expected to have robust mechanisms in place to monitor expenditures, review contractor performance, and ensure compliance with contract terms. Transparency regarding performance reports and financial audits would be key indicators of effective oversight. The Inspector General's office for USAID would likely have jurisdiction for audits and investigations if concerns arise.

Related Government Programs

USAID Education Programs
International Development Assistance
Global Education Initiatives
Technical Assistance Contracts

Risk Flags

Long contract duration
Limited competition
Cost-plus contract type
Lack of performance transparency

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $33.9 million to EDUCATION DEVELOPMENT CENTER, INC.. IGF::OT::IGF ACTIVITY ENTITLED ACCELERATED QUALITY EDUCATION FOR LIBERIAN CHILDREN.

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 $33.9 million.

What is the period of performance?

Start: 2017-03-02. End: 2024-08-16.

What is the track record of Education Development Center, Inc. (EDC) in managing large-scale international education contracts for USAID?

Education Development Center, Inc. (EDC) is a well-established non-profit organization with extensive experience in international education and development. They have a history of managing complex, multi-year projects funded by USAID and other international donors. Their portfolio often includes initiatives focused on improving learning outcomes, teacher training, curriculum development, and educational system strengthening in various countries. While specific details on past performance for contracts of this exact size and scope would require deeper analysis of USAID's contract database and EDC's project reports, their general reputation suggests a capacity to handle such awards. However, the effectiveness and value derived from any specific contract depend heavily on the project's unique context, objectives, and management.

How does the $33.9 million cost compare to similar USAID education contracts in Sub-Saharan Africa over the last five years?

Comparing the $33.9 million cost requires identifying similar USAID education contracts in Sub-Saharan Africa awarded within the last five years, focusing on those with comparable objectives (e.g., quality improvement, system strengthening) and durations. Preliminary analysis suggests that $33.9 million over approximately 7.5 years is within the typical range for large-scale, multi-faceted education development projects in the region. However, the 'value for money' is contingent on the specific deliverables and outcomes achieved. Contracts with more clearly defined, measurable, and impactful results, or those achieved at a lower cost per beneficiary or per learning outcome, would represent better value. Without detailed performance data for this specific contract and comparable benchmarks, a definitive value assessment is difficult.

What are the primary performance metrics used to evaluate the success of this contract, and have they been met?

The provided data does not specify the primary performance metrics for this contract. Typically, for education contracts of this nature, metrics might include improvements in student literacy and numeracy rates, increased school enrollment or retention, enhanced teacher pedagogical skills, development of new curricula, or strengthened educational system management capacity. The success of the contract hinges on the achievement of these (or similar) predefined objectives. Without access to the contract's Statement of Work (SOW), Performance Work Statement (PWS), and subsequent performance reports, it is impossible to determine if the metrices have been established or achieved. This lack of transparency regarding performance evaluation is a significant gap.

What is the risk assessment associated with a Cost Plus Fixed Fee (CPFF) contract of this duration (over 7 years)?

Cost Plus Fixed Fee (CPFF) contracts, especially those with long durations exceeding seven years, carry inherent risks. The primary risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as allowable costs are reimbursed. The 'fixed fee' provides the contractor with a guaranteed profit margin, but cost overruns still increase the total expenditure. For long-duration contracts, there's also a heightened risk of scope creep, evolving requirements, and potential contractor performance degradation over time. Effective oversight, rigorous financial monitoring, and clear performance standards are crucial to mitigate these risks and ensure the contract remains within budget and achieves its objectives.

How has USAID's spending on 'All Other Professional, Scientific, and Technical Services' in the education sector evolved over the past decade?

USAID's spending on 'All Other Professional, Scientific, and Technical Services' within the education sector has likely seen fluctuations over the past decade, influenced by global development priorities, geopolitical shifts, and specific country needs. Generally, there has been a sustained focus on improving educational access and quality in developing nations. This category often captures a wide range of support, from policy advice and system reform to direct program implementation and research. While specific aggregate spending figures for this NAICS code within USAID's education portfolio are not provided, the agency consistently allocates significant resources to technical assistance and specialized services to achieve its development objectives. Trends may show an increasing emphasis on evidence-based programming and measurable outcomes.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $33,903,944

Exercised Options: $33,903,944

Current Obligation: $33,903,944

Actual Outlays: $21,278,924

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $2,446,596

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400073

IDV Type: IDC

Timeline