Department of Education awards $44.9M contract for educational assessment services, with competition driving value

Contract Overview

Contract Amount: $44,871,141 ($44.9M)

Contractor: NCS Pearson Inc

Awarding Agency: Department of Education

Start Date: 2019-07-01

End Date: 2024-12-31

Contract Duration: 2,010 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: EO14042 NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS MATERIALS DISTRIBUTION PROCESSING AND SCORING 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 $44.9 million to NCS PEARSON INC for work described as: EO14042 NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS MATERIALS DISTRIBUTION PROCESSING AND SCORING CONTRACT FOR THE NATIONAL CENTER FOR EDUCATION STATISTICS, INSTITUTE OF EDUCATION SCIENCES WITHIN THE DEPARTMENT OF EDUCATION Key points: 1. Contract awarded to NCS Pearson Inc. for national educational assessment services. 2. Significant portion of contract value allocated to materials distribution, processing, and scoring. 3. Competition level indicates potential for favorable pricing and robust service delivery. 4. Contract duration spans over five years, suggesting a need for sustained support. 5. Performance-based contract type aims to incentivize contractor success. 6. Geographic focus on the District of Columbia for administrative functions.

Value Assessment

Rating: good

The contract value of $44.9 million over approximately five years for national educational assessment services appears reasonable given the scope. Benchmarking against similar large-scale educational data processing and scoring contracts is challenging without more specific service details. However, the cost-plus award fee structure suggests that the government aims to control costs while incentivizing high performance, which can lead to good value if managed effectively. The contract's duration and the nature of the services imply a significant operational undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive environment is generally favorable for price discovery and ensuring that the government receives competitive pricing. The presence of two bidders suggests a healthy level of interest in this service area, though more bidders could potentially drive prices even lower.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to yield a fair price for essential educational assessment services and encourage efficient service delivery.

Public Impact

Students nationwide benefit from the accurate and timely scoring and processing of their educational assessments. Educators and policymakers receive crucial data to inform curriculum development and educational strategies. The National Center for Education Statistics (NCES) and the Institute of Education Sciences (IES) are supported in their mission to collect and disseminate educational data. The contract supports the infrastructure necessary for large-scale educational research and evaluation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not closely monitored.
Dependence on a single contractor for critical national assessment data processing.
Risk of performance degradation if award fee criteria are not sufficiently stringent.

Positive Signals

Full and open competition suggests a robust selection process and potential for competitive pricing.
Cost-plus award fee structure incentivizes contractor performance and efficiency.
Long-term contract duration provides stability for essential educational services.

Sector Analysis

This contract falls within the Research and Development in the Social Sciences and Humanities sector, specifically supporting educational research and data services. The market for educational assessment, data processing, and scoring is substantial, driven by federal and state mandates for accountability and research. Comparable spending in this sector often involves large IT and data management components, similar to the services procured here. The scale of this contract is significant within its niche.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. Given the nature and scale of the services required (national assessment materials distribution, processing, and scoring), it is likely that the prime contractor, NCS Pearson Inc., possesses the extensive infrastructure and expertise necessary. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Education's contracting officers and program managers. The cost-plus award fee structure implies performance monitoring against defined criteria. Transparency is generally maintained through federal contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Assessment of Educational Progress (NAEP)
Institute of Education Sciences (IES) Research Grants
Federal Student Aid Data Processing
Educational Data Analytics Services

Risk Flags

Potential for cost overruns in Cost Plus Award Fee contracts.
Dependence on contractor for critical national data processing.
Data security and integrity risks associated with sensitive educational information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $44.9 million to NCS PEARSON INC. EO14042 NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS MATERIALS DISTRIBUTION PROCESSING AND SCORING 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 NCS PEARSON INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $44.9 million.

What is the period of performance?

Start: 2019-07-01. End: 2024-12-31.

What is the historical spending pattern for this specific contract or similar services provided by NCS Pearson Inc. to the Department of Education?

Historical spending data for this specific contract, identified as EO14042 NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS MATERIALS DISTRIBUTION PROCESSING AND SCORING CONTRACT, indicates a duration starting from July 1, 2019, with an estimated value of $44.9 million through December 31, 2024. The contract's base year duration is 2010, which might refer to an earlier iteration or a related program. Without access to detailed historical contract databases beyond the provided snippet, it's difficult to ascertain the exact year-over-year spending or compare it to previous contracts held by NCS Pearson Inc. for similar services. However, the current award suggests a sustained need for these services over a significant period.

How does the per-unit cost of processing or scoring assessments compare to industry benchmarks or previous contract periods?

The provided data does not include specific per-unit cost metrics for processing or scoring individual assessments. The contract type is Cost Plus Award Fee (CPAF), which means the government reimburses the contractor for allowable costs plus a fee that is adjusted based on performance. To assess per-unit costs, detailed breakdowns of labor, materials, and overhead associated with each unit of service (e.g., per test scored, per report generated) would be required. Benchmarking would then involve comparing these detailed unit costs against similar services provided by other organizations or against historical data from previous contract periods, which is not available in the current dataset.

What are the key performance indicators (KPIs) used to determine the award fee for NCS Pearson Inc. under this contract?

The specific Key Performance Indicators (KPIs) used to determine the award fee for NCS Pearson Inc. are not detailed in the provided contract abstract. However, for a Cost Plus Award Fee (CPAF) contract of this nature, KPIs typically revolve around the timely and accurate distribution of assessment materials, efficient processing and scoring of tests, quality of data output, adherence to security protocols for sensitive student data, and overall responsiveness to the Department of Education's needs. The award fee mechanism is designed to incentivize the contractor to meet or exceed these performance expectations, thereby ensuring high-quality service delivery.

What is the potential impact of this contract on the small business ecosystem, particularly in the areas of educational technology and data services?

The provided information indicates that this contract was awarded under full and open competition and does not specify any small business set-aside requirements. Consequently, the direct impact on small businesses as prime contractors is likely minimal. However, NCS Pearson Inc., as a large incumbent, may engage small businesses as subcontractors for specialized services such as data analysis, software development, or niche logistical support. The extent of these subcontracting opportunities and their impact on the small business ecosystem would depend on the prime contractor's subcontracting plan, which is not detailed here.

Are there any identified risks associated with the contractor's past performance or the technical complexity of the services required?

The provided data does not include specific details on NCS Pearson Inc.'s past performance or the technical complexity beyond the general description of materials distribution, processing, and scoring for national educational assessments. However, any large-scale data processing and logistics contract carries inherent risks. These could include data security breaches, delays in processing leading to missed reporting deadlines, inaccuracies in scoring, or challenges in scaling operations to meet demand. The cost-plus award fee structure suggests the government is aware of potential performance risks and aims to mitigate them through incentivized performance targets.

How does the $44.9 million contract value compare to the overall budget or spending of the National Center for Education Statistics (NCES) or the Institute of Education Sciences (IES)?

The $44.9 million contract value represents a significant investment in the operational capabilities of the National Center for Education Statistics (NCES) and the Institute of Education Sciences (IES). While the exact annual budgets for these entities are not provided, NCES and IES are major components of the Department of Education responsible for collecting, analyzing, and disseminating national education data. This contract likely constitutes a substantial portion of their operational budget dedicated to data collection, processing, and reporting infrastructure. For context, federal agency budgets can range from hundreds of millions to billions of dollars, making this contract a key, but not necessarily dominant, expenditure.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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

Parent Company: Pearson PLC

Address: 2510 N DODGE ST, IOWA CITY, IA, 52245

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $91,997,215

Exercised Options: $64,917,021

Current Obligation: $44,871,141

Actual Outlays: $41,833,870

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline