Department of Education awards $24.4M contract for postsecondary student aid study to Research Triangle Institute

Contract Overview

Contract Amount: $24,360,992 ($24.4M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Education

Start Date: 2022-02-14

End Date: 2027-02-03

Contract Duration: 1,815 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 2023-24 NATIONAL POSTSECONDARY STUDENT AID STUDY (NPSAS: 2024) & POSTSECONDARY LONGITUDINAL STUDIES. NPSAS IS A CROSS-SECTIONAL STUDY THAT PROVIDES INFO ABOUT THE COSTS OF POSTSECONDARY EDUCATION AND HOW STUDENTS AND FAMILIES PAY FOR THESE COSTS.

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Education obligated $24.4 million to RESEARCH TRIANGLE INSTITUTE for work described as: 2023-24 NATIONAL POSTSECONDARY STUDENT AID STUDY (NPSAS: 2024) & POSTSECONDARY LONGITUDINAL STUDIES. NPSAS IS A CROSS-SECTIONAL STUDY THAT PROVIDES INFO ABOUT THE COSTS OF POSTSECONDARY EDUCATION AND HOW STUDENTS AND FAMILIES PAY FOR THESE COSTS. Key points: 1. Contract focuses on understanding postsecondary education costs and student financing. 2. Research Triangle Institute, a long-standing research organization, is the awardee. 3. The contract duration of 1815 days suggests a comprehensive, multi-year research effort. 4. The award was made under full and open competition, indicating broad market engagement. 5. The contract type, Cost Plus Fixed Fee, is common for research and development where costs can be uncertain. 6. This study is crucial for informing federal student aid policy and program design.

Value Assessment

Rating: good

The contract value of $24.4 million over approximately five years for a large-scale national study appears reasonable. While direct comparisons are difficult without knowing the exact scope and methodology, similar large-scale federal research initiatives often fall within this range. The Cost Plus Fixed Fee structure allows for flexibility in research while providing a defined fee for the contractor's services. Benchmarking against other large educational research grants would provide further context on value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple offerors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and innovative approaches. The specific number of bidders is not provided, but the open competition is a positive indicator for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of proposals and potentially driving down costs through market forces, ensuring that federal funds are used efficiently.

Public Impact

Students and families seeking financial aid for postsecondary education will benefit from improved understanding of costs and aid programs. Policymakers and legislators will receive data to inform decisions on federal student aid policies. Educational institutions may use the findings to better understand student financial behaviors and needs. Researchers in the education sector will have access to valuable data for further analysis. The study's findings will have a broad impact on the accessibility and affordability of higher education in the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Ensuring the data collected is representative and unbiased is critical for the study's validity.
Timeliness of data analysis and dissemination to inform policy decisions.

Positive Signals

Award to an experienced contractor (Research Triangle Institute) with a history in large-scale studies.
The comprehensive nature of the study (NPSAS) suggests a robust methodology.
The long duration indicates a commitment to thorough data collection and analysis.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on social sciences and humanities. The market for large-scale educational research and data collection is specialized, often involving a limited number of highly qualified research organizations. The Department of Education is a primary funder of such research, aiming to gather data that supports its mission of ensuring educational opportunity and excellence.

Small Business Impact

Information regarding small business participation, such as set-asides or subcontracting plans, is not explicitly detailed in the provided data. Given the specialized nature of large-scale national studies, prime contract awards are typically made to established research institutions. Further investigation would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight will likely be managed by program officials within the Department of Education's Office of Federal Student Aid or relevant research divisions. Accountability measures would be tied to the delivery of research milestones, data quality, and adherence to the study's methodology as outlined in the contract. Transparency will depend on the Department's policies regarding the public release of study findings and methodologies.

Related Government Programs

National Center for Education Statistics (NCES) surveys
Integrated Postsecondary Education Data System (IPEDS)
Student Support Services Program
Federal Pell Grant Program
Direct Loan Program

Risk Flags

Potential for cost growth in CPFF contracts.
Ensuring data integrity and representativeness for national study.
Timely delivery of research findings for policy impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $24.4 million to RESEARCH TRIANGLE INSTITUTE. 2023-24 NATIONAL POSTSECONDARY STUDENT AID STUDY (NPSAS: 2024) & POSTSECONDARY LONGITUDINAL STUDIES. NPSAS IS A CROSS-SECTIONAL STUDY THAT PROVIDES INFO ABOUT THE COSTS OF POSTSECONDARY EDUCATION AND HOW STUDENTS AND FAMILIES PAY FOR THESE COSTS.

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.4 million.

What is the period of performance?

Start: 2022-02-14. End: 2027-02-03.

What is the historical track record of Research Triangle Institute (RTI) in conducting large-scale federal education studies?

Research Triangle Institute (RTI) has a well-established track record of conducting large-scale, complex research projects for federal agencies, including the Department of Education. RTI is a non-profit research institute with extensive experience in survey design, data collection, statistical analysis, and reporting across various domains, including education. They have been involved in numerous national studies, often serving as the prime contractor for data collection and analysis efforts similar to the National Postsecondary Student Aid Study (NPSAS). Their experience in managing longitudinal data and ensuring data quality for large populations is a key strength that likely contributed to their selection for this contract. Specific past projects include managing other large-scale surveys and evaluations related to student outcomes, educational attainment, and program effectiveness, demonstrating their capacity to handle the scope and complexity required for this award.

How does the awarded amount of $24.4 million compare to previous iterations or similar large-scale national education studies funded by the Department of Education?

The awarded amount of $24.4 million for the 2023-24 National Postsecondary Student Aid Study (NPSAS) needs to be considered in the context of its scope, duration, and inflation. NPSAS is a flagship study providing critical data on student aid and costs. Previous NPSAS cycles have had significant budgets; for instance, the 2015-16 NPSAS had a budget in a similar order of magnitude when adjusted for inflation. Large-scale national surveys are inherently expensive due to the need for robust sampling, extensive data collection (often including in-person or complex online surveys), data processing, and rigorous analysis. The duration of the contract (approximately five years) also indicates a substantial undertaking. Without a direct year-over-year comparison of the exact same scope and methodology, it's challenging to state definitively if this is higher or lower, but it aligns with the expected cost of maintaining such a critical, large-scale data collection effort in the current research environment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a research and development study like this?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, particularly for research and development (R&D), is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of actual costs exceeding estimates. If unforeseen research challenges arise, or if the scope needs to expand due to evolving research questions or data collection complexities, the government may incur higher costs than initially anticipated. Another risk is ensuring the contractor's cost accounting is accurate and justifiable. Effective oversight by the contracting agency is crucial to monitor expenditures, ensure efficiency, and prevent unnecessary costs. The fixed fee itself is negotiated upfront, providing some cost certainty for the contractor's profit, but the total contract cost can still fluctuate.

How will the data collected from the NPSAS: 2024 study be used to assess the effectiveness of federal student aid programs?

The data collected from the National Postsecondary Student Aid Study (NPSAS: 2024) is fundamental to assessing the effectiveness of federal student aid programs. By capturing detailed information on how students and their families finance postsecondary education—including the types and amounts of aid received (grants, loans, work-study), out-of-pocket expenses, and student demographics—NPSAS provides a comprehensive picture of aid program utilization and impact. Analysts can use this data to determine the extent to which federal programs like Pell Grants and federal student loans are helping students access and complete postsecondary education. It allows for the examination of aid distribution across different student populations, the impact of aid on enrollment decisions and persistence, and the resulting student debt burdens. This empirical evidence is crucial for policymakers to evaluate current program effectiveness, identify areas for improvement, and design future policies aimed at enhancing affordability and access.

What are the implications of this contract being awarded under 'Full and Open Competition' for the broader research and development market?

Awarding this contract under 'Full and Open Competition' has several positive implications for the broader research and development (R&D) market. Firstly, it signals to the market that the Department of Education is seeking the best possible solutions from any qualified source, encouraging a wide range of organizations, including established players and potentially innovative newcomers, to compete. This broad competition can spur innovation as contractors strive to differentiate their proposals. Secondly, it promotes a level playing field, allowing smaller or less-known but highly capable firms a chance to bid on significant federal contracts, potentially fostering growth and diversification within the R&D sector. Finally, it reinforces the principle of maximizing taxpayer value by ensuring that the government has access to the widest possible pool of talent and expertise, leading to potentially better outcomes and more efficient use of federal funds.

What is the typical geographic scope and impact of a study like the National Postsecondary Student Aid Study (NPSAS)?

The National Postsecondary Student Aid Study (NPSAS) is designed to have a nationwide geographic scope and impact. It collects data from a representative sample of students enrolled in postsecondary institutions across the United States, including all 50 states, the District of Columbia, and Puerto Rico. The study aims to capture the diversity of student experiences and institutional characteristics across different regions and types of institutions (e.g., public, private non-profit, for-profit; 2-year, 4-year). The findings therefore have broad implications for understanding educational access, affordability, and student outcomes at a national level. Policymakers, researchers, and institutions nationwide rely on NPSAS data to inform decisions and understand trends affecting students across the entire country, making its geographic reach and impact extensive.

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: 91990021R0035

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3040 E CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 27709

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: $24,360,992

Exercised Options: $24,360,992

Current Obligation: $24,360,992

Actual Outlays: $22,434,142

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $3,623,313

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline