Department of Education awards $125.5M for NAEP Platform Development, facing limited competition
Contract Overview
Contract Amount: $125,542,315 ($125.5M)
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: $62.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS PLATFORM DEVELOPMENT CONTRACT FOR THE NATIONAL CENTER FOR EDUCATIONAL 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 $125.5 million to EDUCATIONAL TESTING SERVICE for work described as: NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS PLATFORM DEVELOPMENT CONTRACT FOR THE NATIONAL CENTER FOR EDUCATIONAL STATISTICS, INSTITUTE OF EDUCATION SCIENCES, WITHIN THE DEPARTMENT OF EDUCATION. Key points: 1. The contract aims to develop a platform for the National Assessment of Educational Progress. 2. Educational Testing Service is the incumbent contractor. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but also lead to cost overruns. 4. The sector is administrative management and general management consulting services.
Value Assessment
Rating: fair
The contract value of $125.5 million over approximately 5.5 years suggests a significant investment. Benchmarking against similar IT development contracts is difficult without more granular cost data, but the award fee structure warrants scrutiny for potential cost creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under full and open competition, but the data indicates limited competition. This could potentially lead to higher prices than if multiple bidders were actively engaged.
Taxpayer Impact: The significant contract value means taxpayer funds are being utilized. Ensuring cost-effectiveness and value for money is crucial given the limited competition.
Public Impact
Impacts students and educators by providing data on educational progress. Supports policy decisions at federal, state, and local levels. Ensures the continued operation and modernization of a critical national education data system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may impact price.
- Cost Plus Award Fee structure requires careful monitoring.
- Contract duration is substantial.
Positive Signals
- Addresses a critical need for educational data.
- Potential for improved educational assessment tools.
Sector Analysis
This contract falls within administrative management and general management consulting services, specifically related to IT platform development for educational assessment. Spending benchmarks in this niche area are hard to define precisely, but the scale suggests a significant project.
Small Business Impact
The provided data does not indicate any specific provisions or set-asides for small businesses in this contract. Further investigation would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The Department of Education is responsible for oversight. The Cost Plus Award Fee contract type necessitates robust monitoring to ensure performance objectives are met and costs are controlled effectively.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Limited competition may result in suboptimal pricing.
- Lack of transparency on award fee metrics.
- Insufficient information on small business participation.
Tags
administrative-management-and-general-ma, department-of-education, dc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $125.5 million to EDUCATIONAL TESTING SERVICE. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS PLATFORM DEVELOPMENT CONTRACT FOR THE NATIONAL CENTER FOR EDUCATIONAL 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 $125.5 million.
What is the period of performance?
Start: 2019-07-01. End: 2024-12-31.
What specific performance metrics are tied to the award fee, and how are they objectively measured to ensure fair compensation and prevent contractor overcharging?
The award fee structure is designed to incentivize contractor performance by linking a portion of the payment to the achievement of specific, measurable objectives. The agency must have clearly defined metrics and a transparent evaluation process to determine the award fee. Without insight into these metrics and the evaluation process, it's difficult to assess if the fee structure truly drives value or simply inflates costs.
Given the 'limited competition' designation, what steps were taken to ensure the most advantageous pricing and terms for the government?
Limited competition raises concerns about price discovery. The agency should have conducted thorough market research and negotiation strategies to secure the best possible price. This might include negotiating specific cost reductions, leveraging historical data, or seeking competitive proposals from a limited pool of qualified vendors to mitigate the risks associated with fewer bidders.
How will the success of the NAEP platform development be measured in terms of its impact on educational data quality, accessibility, and usability for policymakers and researchers?
The ultimate success of this platform hinges on its ability to enhance the quality, accessibility, and usability of educational data. Key performance indicators should include metrics related to system uptime, data accuracy, user satisfaction, and the timely delivery of assessment results. Post-implementation reviews and user feedback mechanisms are crucial for evaluating its effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
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: $146,464,970
Exercised Options: $136,058,072
Current Obligation: $125,542,315
Actual Outlays: $125,294,589
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: 2025-12-01
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