Department of Education contract for educational support services awarded to Research Triangle Institute for $18.89 million

Contract Overview

Contract Amount: $18,887,278 ($18.9M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Education

Start Date: 2006-09-05

End Date: 2009-09-01

Contract Duration: 1,092 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: IPEDS WEB DATA COLLECTION

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Education obligated $18.9 million to RESEARCH TRIANGLE INSTITUTE for work described as: IPEDS WEB DATA COLLECTION Key points: 1. The contract value of $18.89 million over approximately three years represents a significant investment in educational support services. 2. The award was made under full and open competition, suggesting a robust market for these services. 3. The Cost Plus Award Fee (CPAF) contract type allows for performance-based incentives, potentially driving efficiency. 4. The contractor, Research Triangle Institute, has a track record with federal agencies, indicating experience in delivering government services. 5. The North Carolina location of the contractor may have implications for regional economic impact and workforce development. 6. The contract's duration of nearly three years provides a stable period for service delivery and performance evaluation.

Value Assessment

Rating: fair

Benchmarking the value of this $18.89 million contract is challenging without specific performance metrics or comparable service contracts. The Cost Plus Award Fee structure means the final cost could vary based on performance, making a direct price comparison difficult. However, the contract was awarded under full and open competition, which generally promotes competitive pricing. Further analysis would require understanding the scope of 'Educational Support Services' and comparing it to similar contracts awarded by the Department of Education or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. This process is designed to ensure a wide range of potential contractors can participate, fostering a competitive environment. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of market interest and potential for price discovery. This approach typically leads to more favorable pricing for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining services at a competitive rate and maximizing the value of taxpayer dollars.

Public Impact

The primary beneficiaries of this contract are likely students and educational institutions that receive support services funded by the Department of Education. The services delivered are categorized under 'Educational Support Services,' which could encompass a wide range of activities such as research, data collection, program evaluation, or administrative support for educational initiatives. The geographic impact is primarily focused on the areas where the supported educational programs operate, potentially nationwide depending on the scope of the Department of Education's initiatives. Workforce implications include employment opportunities for individuals working for Research Triangle Institute and potentially for subcontractors involved in delivering these educational support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure can sometimes lead to cost overruns if not managed tightly, as contractor incentives are tied to performance rather than strict cost control.
The broad category of 'Educational Support Services' lacks specific detail, making it difficult to fully assess the scope and potential risks associated with the contract's deliverables.
The contract duration of nearly three years, while providing stability, also means that potential inefficiencies or performance issues could persist for an extended period if not addressed promptly.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process that should yield better value.
The contractor, Research Triangle Institute, has prior experience with federal contracts, suggesting familiarity with government requirements and processes.
The Cost Plus Award Fee (CPAF) contract type includes incentives for performance, which can motivate the contractor to achieve high-quality results.
The contract is for essential 'Educational Support Services,' aligning with the Department of Education's mission to support learning and educational advancement.

Sector Analysis

The contract falls within the 'Educational Support Services' sector, a segment of the broader education industry focused on providing specialized services to educational institutions and government agencies. This sector is characterized by research, data analysis, and program management. Comparable spending benchmarks would involve analyzing other federal contracts for similar support services awarded to research institutions or educational service providers. The market size for such services is substantial, driven by ongoing government investments in education and research.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, Research Triangle Institute, will likely handle the majority of the work internally. The impact on the small business ecosystem is minimal in terms of direct subcontracting opportunities stemming from this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers. Accountability measures are built into the Cost Plus Award Fee structure, which links a portion of the payment to performance outcomes. Transparency is generally maintained through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Education Research and Development Contracts
Federal Educational Program Support Services
Government Data Collection and Analysis Contracts
Higher Education Support Services

Risk Flags

Potential for cost overruns due to CPAF structure
Lack of specific detail on service deliverables
Contractor performance monitoring challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $18.9 million to RESEARCH TRIANGLE INSTITUTE. IPEDS WEB DATA COLLECTION

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 $18.9 million.

What is the period of performance?

Start: 2006-09-05. End: 2009-09-01.

What is the specific nature of the 'Educational Support Services' provided under this contract?

The provided data categorizes this contract under NAICS code 611710, 'Educational Support Services.' This broad category typically includes establishments primarily engaged in providing educational support activities for others. Examples can range from curriculum development and academic tutoring to educational testing, administration, and consulting services for educational institutions. Without further details specific to this contract, it's difficult to pinpoint the exact services rendered. However, given the contractor is Research Triangle Institute, a prominent research organization, it is plausible that the services involve research, data analysis, program evaluation, or technical assistance related to educational initiatives funded or overseen by the Department of Education.

How does the $18.89 million contract value compare to similar educational support service contracts awarded by the Department of Education?

Comparing the $18.89 million value requires access to a broader dataset of Department of Education contracts for educational support services. However, as a contract awarded under full and open competition with a duration of nearly three years, this value suggests a significant undertaking. The Cost Plus Award Fee (CPAF) structure implies that the final cost could fluctuate based on performance, making direct comparisons to fixed-price contracts challenging. To provide a precise benchmark, one would need to analyze contracts with similar scopes of work, durations, and award types within the Department of Education's portfolio over recent fiscal years.

What is Research Triangle Institute's track record with federal contracts, particularly with the Department of Education?

Research Triangle Institute (RTI) is a well-established research organization with extensive experience in federal contracting. RTI frequently partners with government agencies, including the Department of Education, on a wide array of projects. Their portfolio typically includes research, evaluation, data collection, and technical assistance in areas such as education, health, and social policy. While this specific contract represents one award, RTI's history suggests a capacity to manage complex federal projects and meet stringent government requirements. A deeper dive into their contract history would reveal the volume and types of services they have provided to federal agencies.

What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract for educational support services?

The primary risk with a CPAF contract is that the contractor may not be sufficiently incentivized to control costs, as a portion of their fee is based on achieving performance targets rather than strict cost adherence. This can potentially lead to cost overruns if the performance metrics are not well-defined or if the government's oversight is not rigorous. For educational support services, risks could also include the contractor prioritizing award fee achievement over the quality or depth of the services provided, or a misalignment between the government's definition of success and the contractor's interpretation. Effective management and clear performance standards are crucial to mitigate these risks.

How does the 'full and open competition' award mechanism impact the value for taxpayers in this instance?

The 'full and open competition' award mechanism is generally beneficial for taxpayers. It ensures that the government solicits bids from all responsible sources, thereby maximizing the potential for competitive pricing. This process encourages multiple contractors to offer their best prices and innovative solutions to win the contract. In this case, it suggests that the Department of Education received proposals from various qualified entities, and the selection was based on a combination of price and technical merit. This competitive environment helps to ensure that taxpayer funds are used efficiently and that the government obtains the best possible value for the services procured.

What is the historical spending pattern for 'Educational Support Services' by the Department of Education?

Analyzing historical spending patterns for 'Educational Support Services' by the Department of Education would require examining federal procurement data over several fiscal years. This category (NAICS 611710) can encompass a diverse range of services, making trend analysis complex. Generally, federal spending in this area fluctuates based on programmatic priorities, legislative mandates, and the availability of funding. The Department of Education often contracts for research, evaluation, data collection, and technical assistance to support its various initiatives. Understanding these patterns would involve looking at the total dollar amounts awarded annually for these services, the primary contractors, and the types of services most frequently procured.

Industry Classification

NAICS: Educational Services › Educational Support Services › Educational Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ED-03-R-0004

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 3040 CORNWALLIS ROAD, RESEARCH TRIANGLE PARK, NC, 04

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,504,092

Exercised Options: $35,504,092

Current Obligation: $18,887,278

Timeline