Department of Education awards $96.9M contract for NAEP design, analysis, and reporting to Educational Testing Service
Contract Overview
Contract Amount: $96,935,034 ($96.9M)
Contractor: Educational Testing Service
Awarding Agency: Department of Education
Start Date: 2019-07-01
End Date: 2024-12-31
Contract Duration: 2,010 days
Daily Burn Rate: $48.2K/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 DESIGN, ANALYSIS, AND REPORTING 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
Plain-Language Summary
Department of Education obligated $96.9 million to EDUCATIONAL TESTING SERVICE for work described as: NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS DESIGN, ANALYSIS, AND REPORTING CONTRACT FOR THE NATIONAL CENTER FOR EDUCATION STATISTICS, INSTITUTE OF EDUCATION SCIENCES, WITHIN THE DEPARTMENT OF EDUCATION. Key points: 1. The contract focuses on critical educational assessment data for national policy. 2. Educational Testing Service is a major player in educational assessment. 3. Potential risks include data integrity and the long-term effectiveness of the assessment. 4. The sector is R&D in Social Sciences and Humanities, a niche but vital area.
Value Assessment
Rating: fair
The contract value of $96.9M over five years appears substantial for R&D in educational assessment. Benchmarking against similar large-scale educational research contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing structure (Cost Plus Award Fee) allows for flexibility and potential cost overruns if not managed tightly.
Taxpayer Impact: Taxpayer funds are being used for a critical national education assessment, aiming to provide valuable insights into student performance.
Public Impact
Impacts national education policy by providing data on student achievement. Informs curriculum development and educational interventions. Supports accountability measures for educational institutions. Provides a benchmark for educational progress over time. Affects students, teachers, and administrators nationwide.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can incentivize higher costs.
- Long contract duration may lead to scope creep or outdated methodologies.
- Reliance on a single contractor for critical national data.
Positive Signals
- Full and open competition promotes market fairness.
- Contract aims to improve educational outcomes through data.
- Potential for significant long-term educational insights.
Sector Analysis
This contract falls within the Research and Development in Social Sciences and Humanities sector. Spending in this area is often project-specific and driven by government needs for data and analysis, making direct benchmarks challenging.
Small Business Impact
The data indicates this contract was awarded under full and open competition, but does not specify if small businesses were involved as subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The Department of Education, specifically the Institute of Education Sciences, is responsible for overseeing this contract. Robust oversight is crucial given the contract's value and the importance of the data produced.
Related Government Programs
- Research and Development in the Social Sciences and Humanities
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Risk of assessment methodology becoming outdated over contract duration.
- Dependency on a single entity for critical national education data.
- Ensuring the award fee truly reflects performance and value.
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 $96.9 million to EDUCATIONAL TESTING SERVICE. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS DESIGN, ANALYSIS, AND REPORTING 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 $96.9 million.
What is the period of performance?
Start: 2019-07-01. End: 2024-12-31.
How does the Cost Plus Award Fee structure ensure cost-effectiveness for this long-term research contract?
The Cost Plus Award Fee (CPAF) structure allows the contractor to recover allowable costs plus a fixed fee, with a potential award amount based on meeting performance objectives. For this contract, effective oversight by the Department of Education is crucial to ensure that the award fee truly incentivizes high-quality performance and cost control, rather than simply higher expenditures. Regular reviews of performance metrics and cost justifications are essential to validate the value derived from the fee.
What are the primary risks associated with the long duration of this contract for national educational assessment?
The primary risks of a long contract duration (2019-2024) for national educational assessment include potential obsolescence of assessment methodologies and technologies, shifts in educational priorities that may not be captured by the current scope, and contractor 'lock-in' that could stifle innovation. Ensuring the contract includes mechanisms for regular review, adaptation, and potential re-competition is vital to mitigate these risks and maintain the assessment's relevance and accuracy.
How will the data generated by this contract be used to effectively improve educational outcomes?
The data generated by this contract, specifically from the National Assessment of Educational Progress (NAEP), is intended to inform policy decisions, identify achievement gaps, and guide educational reforms at national, state, and local levels. Its effectiveness hinges on timely dissemination, clear interpretation of results, and the willingness of policymakers and educators to act on the findings to implement evidence-based strategies for improvement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL 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: $146,597,614
Exercised Options: $106,335,561
Current Obligation: $96,935,034
Actual Outlays: $96,722,776
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: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-11-19
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