Department of Education's $74M book distribution program for children's literacy, awarded to Reading Is Fundamental Inc

Contract Overview

Contract Amount: $74,211,499 ($74.2M)

Contractor: Reading IS Fundamental Inc

Awarding Agency: Department of Education

Start Date: 2008-09-25

End Date: 2012-03-30

Contract Duration: 1,282 days

Daily Burn Rate: $57.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: INEXPENSIVE BOOK DISTRIBUTION PROGRAM: TO ESTABLISH AND IMPLEMENT A MODEL PARTNERSHIP BETWEEN A GOVERNMENTAL ENTITY AND A PRIVATE ENTITY, TO HELP PREPARE YOUNG CHILDREN FOR READING, AND TO MOTIVATE OLDER CHILDREN TO READ THROUGH THE DISTRIBUTION OF INEXPENSIVE BOOKS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20009

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $74.2 million to READING IS FUNDAMENTAL INC for work described as: INEXPENSIVE BOOK DISTRIBUTION PROGRAM: TO ESTABLISH AND IMPLEMENT A MODEL PARTNERSHIP BETWEEN A GOVERNMENTAL ENTITY AND A PRIVATE ENTITY, TO HELP PREPARE YOUNG CHILDREN FOR READING, AND TO MOTIVATE OLDER CHILDREN TO READ THROUGH THE DISTRIBUTION OF INEXPENSIVE BOOKS. Key points: 1. The contract aims to foster early reading skills and encourage reading among older children through book distribution. 2. Awarded to a single non-profit organization, the contract's competitive dynamics are limited. 3. The contract duration of over 3 years suggests a sustained effort in promoting literacy. 4. The program's focus on young and older children indicates a broad age demographic for its services. 5. The 'Educational Support Services' NAICS code places this contract within a specific service sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable data on similar public-private partnerships for book distribution. The cost-plus-fixed-fee structure means costs are reimbursed plus a fixed fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some predictability in contractor profit. The total award amount of $74.2 million over approximately 3.5 years suggests a significant investment in literacy initiatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach may have been chosen due to the specific mission and established expertise of Reading Is Fundamental, Inc. in book distribution and literacy programs. Without a competitive bidding process, it is difficult to ascertain if alternative, potentially more cost-effective solutions were overlooked or if the pricing reflects the best possible market value.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from the price competition that typically drives down costs. The absence of multiple bids limits the government's ability to negotiate the most favorable terms.

Public Impact

Young children across the nation benefit from early literacy support and access to books. Older children are motivated to read, fostering lifelong learning habits. The program's impact is national, aiming to reach children in various communities. The initiative supports the education sector by providing resources that complement formal schooling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed contract.
Cost-plus-fixed-fee contracts can incentivize spending if not closely monitored.
The long duration could lead to scope creep or evolving needs not fully captured in the initial award.

Positive Signals

Focus on a critical social issue: children's literacy.
Partnership with a known entity in the field (Reading Is Fundamental).
Clear objective: preparing young children for reading and motivating older children.

Sector Analysis

This contract falls within the Educational Support Services sector, specifically focusing on non-profit initiatives aimed at improving literacy. The market for educational services and non-profit partnerships is diverse, but direct government contracts for large-scale book distribution programs are less common. Comparable spending benchmarks would likely be found in federal grants to educational non-profits or similar public-private ventures focused on youth development and education.

Small Business Impact

This contract was not set aside for small businesses, nor is there an indication of significant subcontracting opportunities for small businesses. The award to a single, established non-profit organization suggests that the primary focus was on program delivery rather than fostering small business participation. This approach may limit the direct economic impact on the small business ecosystem within the educational services sector.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers. Accountability measures would be tied to performance metrics outlined in the contract, such as the number of books distributed and program reach. Transparency is facilitated through the Federal Procurement Data System (FPDS), which lists contract awards. However, specific details on ongoing performance monitoring and IG jurisdiction would require further investigation into the contract's terms and conditions.

Related Government Programs

Early Childhood Education Programs
National Literacy Initiatives
Federal Grants for Non-Profits
Department of Education Discretionary Grants

Risk Flags

Sole-source award lacks competitive pricing.
Cost-plus-fixed-fee structure may lead to cost overruns.
Limited transparency on performance metrics in public data.
Potential for contractor dependency due to single awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $74.2 million to READING IS FUNDAMENTAL INC. INEXPENSIVE BOOK DISTRIBUTION PROGRAM: TO ESTABLISH AND IMPLEMENT A MODEL PARTNERSHIP BETWEEN A GOVERNMENTAL ENTITY AND A PRIVATE ENTITY, TO HELP PREPARE YOUNG CHILDREN FOR READING, AND TO MOTIVATE OLDER CHILDREN TO READ THROUGH THE DISTRIBUTION OF INEXPENSIVE BOOKS.

Who is the contractor on this award?

The obligated recipient is READING IS FUNDAMENTAL INC.

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $74.2 million.

What is the period of performance?

Start: 2008-09-25. End: 2012-03-30.

What is the track record of Reading Is Fundamental, Inc. in managing large-scale federal contracts?

Reading Is Fundamental, Inc. (RIF) has a long history of operating literacy programs, primarily funded through donations and grants. While their expertise in program delivery is well-established, their track record specifically with large federal contracts of this magnitude (over $74 million) is less documented in public procurement databases. Federal contracts often come with stringent reporting, compliance, and administrative requirements that differ from non-profit grant management. Understanding RIF's experience in navigating these specific federal contracting demands is crucial for assessing performance risk. Further analysis would involve examining past federal awards to RIF, if any, and their associated performance evaluations.

How does the cost-plus-fixed-fee structure impact the overall value for money in this contract?

The cost-plus-fixed-fee (CPFF) contract structure reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some cost certainty for the government regarding contractor profit, the overall cost is variable based on actual expenses. This structure can be beneficial when the scope of work is not precisely defined or is expected to evolve, as it allows for flexibility. However, it carries a risk of cost overruns if the contractor's costs are higher than anticipated, potentially diminishing the value for money compared to a fixed-price contract. Effective oversight and rigorous cost monitoring by the Department of Education are essential to ensure that costs remain reasonable and that the program achieves its objectives efficiently.

What are the key performance indicators (KPIs) used to measure the success of this book distribution program?

While the provided data does not detail specific Key Performance Indicators (KPIs), typical metrics for such a program would likely include the number of books distributed, the number of children reached (segmented by age group), geographic distribution of books, and potentially measures of reading engagement or improvement among participants. The contract's success hinges on effectively delivering books to target demographics and fostering a greater interest in reading. The Department of Education would establish these KPIs in the contract's Statement of Work (SOW) and monitor Reading Is Fundamental, Inc.'s progress against them throughout the contract period. Regular reporting from the contractor on these metrics would be a key component of oversight.

What is the historical spending pattern for similar federal literacy or book distribution programs?

Historical spending on federal literacy and book distribution programs varies significantly depending on the agency and the specific initiative. The Department of Education has historically funded a range of educational programs, including grants for early literacy and reading initiatives, often through competitive solicitations or formula grants to states and districts. Large, direct sole-source contracts for book distribution to a single non-profit, like this one, are less common than broader grant programs. Comparing the $74.2 million award over approximately 3.5 years to other federal investments in literacy requires examining specific program budgets across agencies like Education, Health and Human Services (HHS), and even the Institute of Museum and Library Services (IMLS). Without direct comparable contracts, assessing this award's scale requires broader context of federal education spending.

What are the potential risks associated with a sole-source award for a program of this scale?

Sole-source awards, by definition, bypass the competitive bidding process, which is a primary mechanism for ensuring fair pricing and exploring innovative solutions. The key risks include: 1) Potential for inflated costs: Without competition, the contractor may not be incentivized to offer the lowest possible price. 2) Limited innovation: The government may miss out on potentially better or more cost-effective approaches offered by other organizations. 3) Lack of transparency: The rationale for the sole-source award must be clearly justified and documented to ensure public trust. 4) Contractor dependency: The government becomes reliant on a single provider, which can be problematic if performance issues arise or if the contractor's capacity is insufficient. For this specific contract, the risk is mitigated if Reading Is Fundamental, Inc. is demonstrably the only entity capable of executing the program effectively at this scale and cost.

Industry Classification

NAICS: Educational Services › Educational Support Services › Educational Support Services

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ED-08-R-0084

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1825 CONNECTICUT AVE NW STE 400, WASHINGTON, DC, 98

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: $123,224,996

Exercised Options: $74,211,499

Current Obligation: $74,211,499

Timeline