Nearly $46M for Head Start management support services awarded to Community Development Institute

Contract Overview

Contract Amount: $45,931,610 ($45.9M)

Contractor: Community Development Institute

Awarding Agency: Department of the Interior

Start Date: 2022-05-22

End Date: 2026-05-21

Contract Duration: 1,460 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TECHNICAL AND MANAGEMENT SUPPORT SERVICES FOR NATIONAL INTERIM MANAGEMENT FOR THE EARLY HEAD START AND HEAD START PROGRAM.

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80231

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $45.9 million to COMMUNITY DEVELOPMENT INSTITUTE for work described as: TECHNICAL AND MANAGEMENT SUPPORT SERVICES FOR NATIONAL INTERIM MANAGEMENT FOR THE EARLY HEAD START AND HEAD START PROGRAM. Key points: 1. Contract provides essential administrative and management consulting for early childhood programs. 2. Full and open competition suggests a competitive bidding process. 3. Delivery order structure allows for phased execution and potential flexibility. 4. Contract duration of 4 years indicates a significant, long-term need. 5. Focus on administrative management aligns with program operational efficiency goals. 6. The awardee has a track record in community development and support services.

Value Assessment

Rating: good

The contract value of approximately $45.9 million over four years for administrative management and general management consulting services appears reasonable given the scope of supporting national interim management for Early Head Start and Head Start programs. Benchmarking against similar large-scale federal contracts for program management and consulting would provide a more precise value-for-money assessment. However, the nature of the services, which are critical for the operational success of vital early childhood programs, suggests a significant investment is warranted.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this significant contract. While more bidders could potentially drive prices lower, the fact that it was competed openly is a positive sign for price discovery and ensuring a fair market approach.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential early childhood program management services.

Public Impact

Children and families participating in Early Head Start and Head Start programs benefit from improved program management and operational support. The services delivered ensure the effective administration of critical early childhood education and development initiatives. The geographic impact is national, supporting programs across the United States. Workforce implications include support for program staff and administrators involved in early childhood services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs without adequate oversight.
Reliance on a single contractor for critical management functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting process.
Long-term contract duration allows for stability and continuity in program support.
The services are directly tied to the successful operation of vital social programs.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of professional services aimed at improving organizational efficiency and effectiveness. Federal spending in this area is substantial, supporting various agencies in managing complex programs and operations. Comparable spending benchmarks would involve analyzing other large-scale contracts for program management and administrative support across different federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses explicitly stated in the provided data. This suggests that the primary focus was on securing the best overall solution from a competitive field, rather than prioritizing small business participation through set-asides. Further analysis of the contract details would be needed to determine any indirect impact or opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of the Interior's Departmental Offices. Accountability measures are inherent in the contract's performance standards and delivery schedules. Transparency is facilitated through federal contract databases where award information is publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Head Start Program
Early Head Start Program
Federal Management Consulting Services
Child Care and Development Fund

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Performance risk associated with a single contractor managing critical national functions.
Need for robust oversight to ensure effective service delivery and accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $45.9 million to COMMUNITY DEVELOPMENT INSTITUTE. TECHNICAL AND MANAGEMENT SUPPORT SERVICES FOR NATIONAL INTERIM MANAGEMENT FOR THE EARLY HEAD START AND HEAD START PROGRAM.

Who is the contractor on this award?

The obligated recipient is COMMUNITY DEVELOPMENT INSTITUTE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45.9 million.

What is the period of performance?

Start: 2022-05-22. End: 2026-05-21.

What is the track record of Community Development Institute in managing federal contracts, particularly those related to social services or early childhood education?

Community Development Institute (CDI) has a history of working with federal agencies, often focusing on community development, housing, and social services. While specific details on their performance managing Early Head Start and Head Start programs require deeper investigation into past contract performance reports (e.g., CPARS), their general experience in managing complex projects and stakeholder engagement suggests a foundational capability. Their portfolio often includes grant management and technical assistance, which are relevant to the administrative and management support required for these early childhood programs. A thorough review would involve examining their performance on similar-sized contracts and their success in meeting federal program objectives and reporting requirements.

How does the per-unit cost or overall value of this contract compare to similar federal contracts for national program management and administrative support?

Directly comparing the per-unit cost is challenging without detailed service breakdowns and specific performance metrics. However, the total contract value of approximately $45.9 million over four years for national interim management support for Early Head Start and Head Start programs can be benchmarked against other large-scale federal contracts for program administration and consulting. For instance, contracts supporting national initiatives in education, health, or social services often range in the tens to hundreds of millions of dollars, depending on scope and duration. The value here appears to be within a reasonable range for a contract of this magnitude and national reach, assuming the scope of services is comprehensive and effectively managed. A more precise comparison would require analyzing contracts with similar service requirements and target populations.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential performance deficiencies by the contractor, leading to disruptions in critical early childhood services; scope creep that could increase costs beyond the awarded amount; and contractor dependency, where the program becomes overly reliant on the single awardee. Mitigation strategies likely include robust performance monitoring by the agency, clearly defined contract deliverables and milestones, regular progress reviews, and contingency planning for contractor failure. The use of a Time and Materials (T&M) contract type, while offering flexibility, also necessitates careful oversight to control costs and prevent overruns. The agency's contracting officer and program managers are responsible for actively managing these risks throughout the contract lifecycle.

How effective is the current administrative and management support provided by Community Development Institute in achieving the goals of the Early Head Start and Head Start programs?

Assessing the effectiveness of the current support requires analyzing program outcomes and performance metrics directly linked to the contractor's services. Since this is a delivery order awarded in May 2022, the full impact is likely still unfolding. Key indicators of effectiveness would include improvements in program operational efficiency, compliance rates, successful implementation of program initiatives, and positive feedback from Head Start grantees and staff. The Department of the Interior, as the awarding agency, would be responsible for monitoring these metrics and evaluating the contractor's contribution to the overall success and goals of the Early Head Start and Head Start programs. Data on child outcomes, while not directly managed by this contract, are indirectly influenced by effective program administration.

What has been the historical federal spending trend for administrative and management support services for the Head Start and Early Head Start programs?

Historical spending on administrative and management support for Head Start and Early Head Start programs has generally been substantial, reflecting the scale and complexity of these national initiatives. While specific figures fluctuate annually based on appropriations and program needs, federal investment in these early childhood programs, including their administrative backbone, typically runs into the billions of dollars. Spending on management support services, like the one awarded to Community Development Institute, is a component of this larger budget. Trends often show consistent or increasing investment, driven by the recognized importance of early childhood education and the need for robust program oversight and operational efficiency. Analyzing past budgets for the Administration for Children and Families (ACF), which oversees Head Start, would provide a clearer picture of spending trends.

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: 140D0422Q0150

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10065 E HARVARD AVE, DENVER, CO, 80231

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

Financial Breakdown

Contract Ceiling: $61,818,949

Exercised Options: $49,279,467

Current Obligation: $45,931,610

Actual Outlays: $40,475,842

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0183R

IDV Type: FSS

Timeline