Department of Education awards $19.4M contract to Mathematica Inc. for business and secretarial school support

Contract Overview

Contract Amount: $19,440,156 ($19.4M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Education

Start Date: 2022-03-02

End Date: 2027-01-02

Contract Duration: 1,767 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AWARD OF REL CENTRAL

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $19.4 million to MATHEMATICA INC. for work described as: AWARD OF REL CENTRAL Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of 1767 days indicates a long-term need for these services. 4. The contract is for Business and Secretarial Schools support, a niche but important educational sector. 5. Mathematica Inc. is the sole awardee, highlighting their specific capabilities or market position for this requirement. 6. The contract's value is significant, reflecting substantial investment in educational support services.

Value Assessment

Rating: fair

Benchmarking the value of this $19.4 million contract is challenging without specific service details or comparable contracts. However, the Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a negotiated fee. While CPFF can be appropriate for research and development or when costs are uncertain, it carries a higher risk of cost overruns compared to fixed-price contracts. The government must diligently monitor costs to ensure value for money. Without more granular data on the services provided and the fixed fee percentage, a definitive value assessment is difficult.

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 a bid. The presence of '4' bids (implied by 'no': 4) suggests a moderate level of competition. While not a vast number, it implies that multiple firms were interested and capable of performing the work, which generally aids in price discovery and can lead to more competitive pricing than a sole-source award.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging better service offerings from contractors.

Public Impact

Students and administrators within business and secretarial schools are likely beneficiaries of improved services and support. The contract aims to enhance the operational effectiveness and potentially the educational outcomes of these institutions. The geographic impact is primarily within the District of Columbia, where the contract is administered. Workforce implications may include employment opportunities for researchers, analysts, and support staff at Mathematica Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to manage potential cost escalations.
Lack of detailed service scope makes it difficult to fully assess performance metrics and value.
The specific nature of 'business and secretarial schools' support may have limited scalability or broad applicability.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
Mathematica Inc. is a known entity in research and analysis, suggesting established expertise.
The long contract duration suggests a stable, ongoing need and potential for sustained impact.

Sector Analysis

The education services sector encompasses a wide range of support functions for academic institutions. This contract falls under the 'Business and Secretarial Schools' NAICS code (611410), a specific segment focused on vocational training. Spending in this area supports the operational and administrative needs of these schools, which may include curriculum development, student services, or management consulting. Comparable spending benchmarks are difficult to establish without knowing the precise services rendered, but federal contracts for educational support can range from small, specialized services to large-scale program management.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Without specific set-aside goals or subcontracting requirements detailed in the award, the direct impact on the small business ecosystem is likely minimal unless Mathematica Inc. proactively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Education's contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee is justified. Transparency is dependent on the Department's reporting practices and public availability of contract performance information. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Student Aid Programs
Department of Education Grants Management
Educational Technology Initiatives
Workforce Development Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may lead to evolving needs or reduced contractor urgency if not managed well.
Specific services and performance metrics are not detailed, hindering a full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $19.4 million to MATHEMATICA INC.. AWARD OF REL CENTRAL

Who is the contractor on this award?

The obligated recipient is MATHEMATICA INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2022-03-02. End: 2027-01-02.

What specific services does Mathematica Inc. provide under this contract to business and secretarial schools?

The provided data indicates the contract is for 'Business and Secretarial Schools' (NAICS 611410) support, awarded to Mathematica Inc. However, the specific services rendered are not detailed. Typically, such contracts could involve program evaluation, data analysis, curriculum development assistance, administrative process improvement, student support strategy, or management consulting tailored to the unique needs of vocational training institutions. Mathematica Inc. is a research firm known for its work in social policy and economics, suggesting the services might lean towards analytical, evaluative, or strategic support rather than direct educational delivery.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types in terms of value for money for the government?

The Cost Plus Fixed Fee (CPFF) structure is often used when the scope of work is not well-defined or involves significant uncertainty, such as research and development. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While it provides flexibility, it carries a higher risk of cost overruns compared to fixed-price contracts, as the government bears the brunt of cost increases. Value for money is achieved through diligent oversight, clear performance metrics, and ensuring the fixed fee is reasonable. Fixed-price contracts generally offer better cost certainty for the government but may require a more precisely defined scope and can lead to contractor risk aversion.

What is Mathematica Inc.'s track record with federal contracts, particularly with the Department of Education?

Mathematica Inc. has a substantial history of performing federal contracts across various agencies, including significant work with the Department of Education, Health and Human Services, and others. They are well-regarded for their expertise in research, data analysis, and program evaluation, often undertaking complex studies and providing evidence-based insights. While specific performance details for every contract are not publicly itemized in this summary, their consistent award of federal contracts, especially with agencies like the Department of Education, suggests a generally positive track record and demonstrated capability to meet federal requirements.

What are the potential risks associated with a 1767-day contract duration?

A contract duration of 1767 days (approximately 4.8 years) presents several potential risks. Firstly, the needs of the Department of Education or the landscape of business and secretarial schools could evolve significantly over this period, potentially making the contracted services less relevant or requiring costly modifications. Secondly, long-term contracts can sometimes lead to complacency or reduced urgency from the contractor if not managed proactively. Thirdly, there's a risk of vendor lock-in, making it difficult to switch to potentially better or more cost-effective solutions if they emerge later. Robust contract management, regular performance reviews, and built-in flexibility clauses are essential to mitigate these risks.

How does the 'full and open competition' award mechanism impact pricing and contractor performance?

Awarding a contract through 'full and open competition' means that all responsible sources were allowed to submit bids. This mechanism is designed to maximize competition, which generally leads to more competitive pricing as contractors vie for the award. It also encourages higher performance standards, as contractors aim to meet or exceed the requirements to secure the contract and potentially future work. The presence of multiple bidders (in this case, 4) provides a basis for price comparison and negotiation, increasing the likelihood that the government secures a fair price and quality services. This process is considered the gold standard for ensuring taxpayer value.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Business and Secretarial Schools

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: 91990020R0032

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 600 ALEXANDER PARK, PRINCETON, NJ, 08540

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

Financial Breakdown

Contract Ceiling: $19,440,156

Exercised Options: $19,440,156

Current Obligation: $19,440,156

Actual Outlays: $15,719,912

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $4,286,501

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline