Department of Education awards $23.5M NAEP contract to Educational Testing Service for R&D

Contract Overview

Contract Amount: $23,461,234 ($23.5M)

Contractor: Educational Testing Service

Awarding Agency: Department of Education

Start Date: 2019-07-01

End Date: 2025-02-19

Contract Duration: 2,060 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS PLANNING AND COORDINATION CONTRACT FOR THE NATIONAL CENTER FOR EDUCATION STATISTICS, INSTITUTE OF EDUCATION SCIENCES, WITHIN THE DEPARTMENT OF EDUCATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $23.5 million to EDUCATIONAL TESTING SERVICE for work described as: NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS PLANNING AND COORDINATION CONTRACT FOR THE NATIONAL CENTER FOR EDUCATION STATISTICS, INSTITUTE OF EDUCATION SCIENCES, WITHIN THE DEPARTMENT OF EDUCATION Key points: 1. The contract supports the National Assessment of Educational Progress (NAEP), a key federal education data source. 2. Educational Testing Service (ETS) is a major player in educational assessment, indicating significant sector expertise. 3. The contract's cost-plus award fee structure allows for performance-based incentives. 4. Potential risks include the long duration and the complexity of large-scale educational assessments.

Value Assessment

Rating: fair

The contract value of $23.5 million over approximately 2.5 years for a large-scale national assessment program appears reasonable given the scope. Benchmarking against similar large-scale research and development contracts for federal data collection and analysis is needed for a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple qualified vendors to bid, potentially leading to more competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value for the services provided.

Public Impact

Ensures continued data collection and reporting for the National Assessment of Educational Progress (NAEP). Provides insights into student achievement across various subjects and demographics. Supports evidence-based policymaking in education at federal, state, and local levels. The contract's duration may impact the stability of assessment methodologies and data comparability over time.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Research and Development in the Social Sciences and Humanities sector (NAICS 541720). Spending in this sector often involves complex data collection, analysis, and reporting, requiring specialized expertise. Benchmarks for similar large-scale federal research contracts are essential for evaluating value.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Given the nature of the work, it is likely that larger, established research organizations are the primary contractors.

Oversight & Accountability

The Department of Education, through the Institute of Education Sciences, is responsible for overseeing this contract. Robust oversight is crucial to ensure the quality and integrity of the NAEP data collection and reporting, as well as to manage the cost-plus award fee structure effectively.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-social-s, department-of-education, dc, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $23.5 million to EDUCATIONAL TESTING SERVICE. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS PLANNING AND COORDINATION CONTRACT FOR THE NATIONAL CENTER FOR EDUCATION STATISTICS, INSTITUTE OF EDUCATION SCIENCES, WITHIN THE DEPARTMENT OF EDUCATION

Who is the contractor on this award?

The obligated recipient is EDUCATIONAL TESTING SERVICE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2019-07-01. End: 2025-02-19.

What is the historical performance of Educational Testing Service on similar federal contracts, particularly regarding cost control and timely delivery?

Evaluating ETS's past performance on comparable federal contracts is crucial. This includes reviewing their track record on cost management, adherence to schedules, and the quality of deliverables. Past performance data can provide insights into their ability to execute complex research and assessment projects effectively and efficiently, informing future contract awards and oversight strategies.

How does the cost-plus award fee structure impact the overall cost-effectiveness and potential for contractor overspending on this NAEP contract?

The cost-plus award fee (CPAF) structure allows the contractor to be reimbursed for allowable costs plus a fixed fee that is adjusted based on performance. While CPAF can incentivize high performance, it also carries a risk of cost overruns if performance metrics are not clearly defined or if oversight is insufficient. Careful monitoring of costs and rigorous evaluation of performance against award fee criteria are essential to ensure cost-effectiveness and prevent unnecessary spending.

What mechanisms are in place to ensure the long-term validity and comparability of NAEP data given the contract's duration and potential for evolving assessment methodologies?

Ensuring the long-term validity and comparability of NAEP data requires robust quality assurance and methodological stability. Mechanisms should include clear protocols for managing changes in assessment instruments, sampling procedures, and data analysis techniques. Regular reviews by independent experts and transparent documentation of any methodological shifts are vital to maintain the integrity and utility of the data for tracking educational trends over time.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Social Sciences and Humanities

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&DSPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 91990018R0018

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 660 ROSEDALE RD, PRINCETON, NJ, 08540

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: $39,745,978

Exercised Options: $25,942,890

Current Obligation: $23,461,234

Actual Outlays: $23,349,444

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2019-07-01

Current End Date: 2025-02-19

Potential End Date: 2025-02-19 00:00:00

Last Modified: 2025-03-25

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