Interior Department awards $5.16M contract for ECE study, with 3 bidders competing

Contract Overview

Contract Amount: $5,161,118 ($5.2M)

Contractor: National Opinion Research Center

Awarding Agency: Department of the Interior

Start Date: 2022-02-09

End Date: 2027-02-08

Contract Duration: 1,825 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FINANCING EARLY CARE AND EDUCATION (ECE) STUDY

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $5.2 million to NATIONAL OPINION RESEARCH CENTER for work described as: FINANCING EARLY CARE AND EDUCATION (ECE) STUDY Key points: 1. Contract value appears reasonable for a multi-year study of this nature. 2. Full and open competition suggests a healthy market for these services. 3. Potential for cost overruns exists with Time and Materials pricing. 4. The study's findings could inform future federal investments in early childhood education. 5. This contract falls within the administrative management consulting services sector.

Value Assessment

Rating: good

The contract value of $5.16 million over five years for a study on financing early care and education seems within a reasonable range for comprehensive research. Benchmarking against similar large-scale federal studies would provide more precise value-for-money assessment. The use of Time and Materials pricing, while offering flexibility, introduces a risk of cost escalation if not closely managed, which warrants attention in assessing the overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors were able to bid. With three bidders, the competition level suggests a moderately competitive environment. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair market price and encourages a wider pool of contractors to participate, potentially leading to innovative solutions.

Public Impact

The primary beneficiaries are federal policymakers and agencies involved in early childhood education (ECE) who will receive data and analysis to inform their decisions. The services delivered include research, data collection, analysis, and reporting on the financing of ECE. The geographic impact is national, as the study aims to understand ECE financing across the United States. Workforce implications are indirect, potentially influencing future federal funding and program development that could impact ECE providers and administrators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing structure can lead to cost overruns if not meticulously monitored.
The duration of the contract (5 years) increases the risk of scope creep or evolving research needs not being fully captured in the initial award.
The specific expertise required for analyzing complex financing models may present challenges if the contractor's team composition changes significantly.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The National Opinion Research Center (NORC) has a strong reputation for conducting large-scale social science research.
The contract duration allows for in-depth study and comprehensive data analysis.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting services. The market for such services is substantial, with numerous firms capable of conducting policy-related research. Comparable spending benchmarks for federal studies on social programs indicate that values in the millions of dollars are common for multi-year, national scope projects.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there explicit information regarding subcontracting plans for small businesses. Given the nature of the research and the primary contractor's likely capabilities, the direct impact on the small business ecosystem may be limited unless specific subcontracting opportunities arise.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of the Interior's contracting and program offices. Accountability measures are embedded in the contract's deliverables and performance standards. Transparency is facilitated through the contract award process and the eventual publication of study findings. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Head Start Program
Child Care and Development Fund
Department of Education - Early Learning Initiatives
Administration for Children and Families - Research and Evaluation

Risk Flags

Time and Materials pricing structure carries inherent risk of cost escalation.
Contract duration of 5 years requires sustained oversight to manage scope and performance.
Potential for changes in federal ECE policy landscape during the study's term.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.2 million to NATIONAL OPINION RESEARCH CENTER. FINANCING EARLY CARE AND EDUCATION (ECE) STUDY

Who is the contractor on this award?

The obligated recipient is NATIONAL OPINION RESEARCH CENTER.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2022-02-09. End: 2027-02-08.

What is the track record of the National Opinion Research Center (NORC) in managing similar federal research contracts?

NORC at the University of Chicago has a long and established history of conducting large-scale, complex research projects for federal agencies, including studies on social policy, education, and public health. They have managed numerous contracts with agencies like the Department of Education, HHS, and others, often involving data collection, analysis, and reporting. Their experience typically includes rigorous methodological approaches and adherence to federal contracting regulations. While specific details of past performance on contracts of identical scope and value are not provided here, NORC's general reputation suggests a strong capability to manage this type of study effectively and deliver high-quality research outcomes.

How does the $5.16 million contract value compare to similar federal studies on early childhood education financing?

The $5.16 million contract value for a five-year study on financing early care and education (ECE) appears to be within a reasonable range for a comprehensive, national-scope federal research initiative. Large-scale studies involving extensive data collection, analysis, and stakeholder engagement often require significant resources. For context, other federal studies examining complex social program financing or policy impacts have been awarded contracts in the multi-million dollar range over similar timeframes. Factors influencing cost include the depth of research, the number of data sources, the complexity of analytical models, and the required dissemination efforts. Without specific comparable studies readily available, this figure suggests a substantial investment commensurate with the project's breadth.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure for this contract is the potential for cost overruns. T&M contracts pay the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee. This structure offers flexibility, allowing the scope of work to evolve, but it provides less cost certainty for the government compared to fixed-price contracts. If the project takes longer than anticipated, requires more resources, or if labor rates increase, the total cost to the government can escalate beyond initial projections. Effective oversight, detailed tracking of hours and expenses, and clear task definitions are crucial to mitigate these risks and ensure the project stays within budget.

How might the findings of this study influence future federal spending or policy related to early childhood education?

The findings of this study on financing early care and education (ECE) have the potential to significantly influence future federal spending and policy. By analyzing current financing mechanisms, identifying gaps, and evaluating the effectiveness of different funding models, the study can provide evidence-based recommendations. This could lead to adjustments in existing federal programs, the creation of new funding streams, or changes in how federal funds are allocated to support ECE services. For instance, if the study highlights inefficiencies in current financing or demonstrates the positive impact of specific investment levels, policymakers may be persuaded to increase overall federal investment or reallocate resources to more effective approaches. The research could also inform debates on universal pre-K or other major ECE policy initiatives.

What is the significance of having three bidders in the full and open competition for this contract?

Having three bidders in a full and open competition signifies a moderately competitive marketplace for the services required. This level of competition is generally positive for the government, as it allows for a comparison of different approaches and price points, increasing the likelihood of securing a fair market price. It suggests that there are multiple capable contractors interested in and qualified for this type of work. While more bidders could potentially drive prices lower, three offers typically provide sufficient basis for negotiation and selection, balancing competitive pressure with the administrative effort required to evaluate numerous proposals. It indicates that the contract opportunity was visible and accessible to a reasonable segment of the potential market.

What are the potential implications of this contract for the administrative management and general management consulting services sector?

This contract, awarded to NORC for a study on ECE financing, has several implications for the administrative management and general management consulting services sector. Firstly, it highlights the demand for specialized research and analytical services within the federal government, particularly in areas of social policy and education. Secondly, the award to NORC, a well-established research institution, reinforces the importance of deep expertise and a strong track record in securing large federal contracts. Thirdly, the use of full and open competition indicates that this segment of the consulting market is accessible to multiple players, fostering a dynamic environment. Finally, the contract's value and duration suggest significant opportunities for firms capable of undertaking complex, long-term research projects, potentially influencing how consulting firms position themselves and invest in relevant capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Solicitation ID: 140D0422Q0042

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 55 E MONROE ST, CHICAGO, IL, 60603

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: $6,569,057

Exercised Options: $5,173,421

Current Obligation: $5,161,118

Actual Outlays: $4,182,475

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA20D001M

IDV Type: FSS

Timeline