Cost study of participant training contractors

Internal evaluation covers FY82 and is based on document review and a survey of contractors. Both A.I.D. and training contractors lack sufficient managerial procedures. A.I.D. has no overall system for: (1) collecting comprehensive data on participant training contractors; (2) comparing contractor services and costs; or (3) analyzing contractor effectiveness. In addition, information needed to perform these activities cannot be assembled from AID/W offices or Missions. Administrative costs varied greatly among contractors. The average administrative cost was $401 per participant month while the average cost for technical programs was $880 per participant month. On the average, as the number of participant months processed by an organization increased, the organization offered a greater range of services at lower costs. In general, contractors lack information and guidance provided by project managers on participant training procedures and policies. Contractor managed participants, therefore, receive uneven treatment in the quality of services they receive, (e.g., maintenance and other allowances, health insurance, personal counseling, etc.) It is recommended that: (1) a follow-on study of contractor costs be conducted; (2) AID/W and Missions be required to justify contractor costs that greatly exceed those deemed acceptable by A.I.D. Handbook 10; and (3) mechanisms be established to provide S&T/IT with copies of all contract procurements of participant training activities regardless of the type of funding. Also, AID/W should, in coordination with the offices of Contract Management and Financial Management, establish: (1) standard formats (including budget line items and cost categories) for the submission of contractor proposals for participant training activities; (2) standardized cost categories and line item budgets for the contractors to use in reporting; and (3) a centralized system to collect and analyze such data as participant training program budgets and progress reports.