MCREL INTERNATIONAL awarded $27.6M for Regional Education Laboratory services, spanning over 5 years

Contract Overview

Contract Amount: $27,651,454 ($27.7M)

Contractor: Mcrel International

Awarding Agency: Department of Education

Start Date: 2006-01-20

End Date: 2011-12-31

Contract Duration: 2,171 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: REGIONAL EDUCATION LABORATORY - CENTRAL REGION

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80237

State: Colorado Government Spending

Plain-Language Summary

Department of Education obligated $27.7 million to MCREL INTERNATIONAL for work described as: REGIONAL EDUCATION LABORATORY - CENTRAL REGION Key points: 1. The contract's cost-plus award fee structure allows for flexibility but requires robust oversight to ensure value. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The duration of the contract (2171 days) indicates a long-term need for these research services. 4. The contract's focus on research and development in social sciences and humanities aligns with educational support needs. 5. Performance context is crucial given the 'award fee' component, necessitating clear metrics for success. 6. The absence of small business set-asides means opportunities for smaller firms may be limited in direct contracting.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance data and comparable contract details. The cost-plus award fee (CPAF) structure can lead to cost overruns if not managed tightly, but it also allows for flexibility in research projects where scope may evolve. The total award of $27.6 million over approximately 5.9 years averages to about $4.7 million annually, which needs to be assessed against the scope and impact of the educational research delivered.

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 process is generally favorable for price discovery and ensuring the government receives competitive offers. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition was sought.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Educational institutions and policymakers across the central region benefit from research-backed insights and technical assistance. The contract supports the delivery of research, development, and dissemination of knowledge in education. Geographic impact is focused on the central region of the United States, addressing specific educational needs there. The contract likely supports a workforce of researchers, analysts, and support staff within MCREL INTERNATIONAL and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can incentivize contractors to incur costs, requiring diligent oversight to manage expenditures.
The long contract duration may present risks if educational needs or research priorities shift significantly over time.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the award fee component.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
The contract's focus on R&D in social sciences and humanities addresses critical areas for educational improvement.
The substantial award amount indicates a significant investment in educational research, potentially leading to impactful outcomes.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on social sciences and humanities (NAICS 541720). The market for educational research services is driven by government funding and the need for evidence-based practices in education. Comparable spending benchmarks would involve looking at other large federal contracts awarded for educational research and technical assistance to regional entities.

Small Business Impact

The provided data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). This suggests that the primary award was made to a large business or that subcontracting opportunities for small businesses were not specifically mandated or tracked in this summary. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Education. The cost-plus award fee structure necessitates rigorous monitoring of costs, performance, and adherence to the statement of work. Transparency would depend on the public availability of performance reports and award fee determinations, which are not detailed here. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

Regional Educational Laboratories Program
Education Research and Development
Federal Education Grants
Social Science Research Funding

Risk Flags

Cost-plus award fee contracts require diligent oversight to manage costs and ensure value.
Long contract durations may pose risks if the operating environment or priorities change significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $27.7 million to MCREL INTERNATIONAL. REGIONAL EDUCATION LABORATORY - CENTRAL REGION

Who is the contractor on this award?

The obligated recipient is MCREL INTERNATIONAL.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2006-01-20. End: 2011-12-31.

What specific educational challenges or research questions does this contract aim to address within the central region?

While the provided data does not detail the specific educational challenges, the contract's objective is to support the Regional Educational Laboratory - Central Region. This typically involves conducting research, providing technical assistance, and disseminating findings to improve educational practice and outcomes for students in that region. Common areas of focus for RELs include early childhood education, K-12 interventions, college and career readiness, and educator professional development, tailored to the unique needs and contexts of the central states.

How does the 'Cost Plus Award Fee' (CPAF) structure influence contractor performance and cost management compared to other contract types?

The Cost Plus Award Fee (CPAF) structure is designed to incentivize contractor performance by linking a portion of the fee to the achievement of specific performance objectives. The contractor is reimbursed for allowable costs, plus a base fee, and an award fee that is determined by the government based on performance evaluations. This differs from fixed-price contracts where profit is determined upfront, or cost-plus-incentive-fee (CPIF) contracts where profit is adjusted based on cost targets. CPAF requires robust government oversight to define clear performance criteria and objectively assess the contractor's work to ensure value for money and prevent cost overruns while encouraging high-quality outcomes.

What is the typical annual spending for Regional Educational Laboratories, and how does this contract's value compare?

Regional Educational Laboratories (RELs) are funded through contracts awarded by the Institute of Education Sciences (IES) within the Department of Education. Annual spending can vary significantly by contract and region, but contracts often range from $4 million to $7 million per year. This contract, with a total value of approximately $27.6 million over roughly 5.9 years, averages around $4.7 million annually. This figure appears to be within the typical range for a REL contract, suggesting it is a standard-sized award for the services provided.

What are the potential risks associated with a contract duration of over 2000 days (approximately 5.9 years)?

A long contract duration, such as the 2171 days (approx. 5.9 years) for this contract, presents several potential risks. Firstly, the educational landscape, research priorities, and technological tools can evolve rapidly, potentially making the contract's objectives or methods outdated before completion. Secondly, maintaining consistent contractor performance and engagement over such an extended period can be challenging. Thirdly, long-term contracts may reduce opportunities for other organizations to compete for similar work, potentially limiting innovation. Finally, unforeseen economic shifts or changes in government funding priorities could impact the contract's viability or scope.

Given the 'full and open competition' award, what does this imply about the market for educational research services?

The designation of 'full and open competition' for this contract implies that the market for educational research services is sufficiently robust and accessible to allow multiple qualified vendors to compete. It suggests that the government did not impose restrictive barriers to entry, such as extensive past performance requirements or specific technological prerequisites that would limit the bidder pool. This competitive environment is generally beneficial for the government, as it fosters innovation, encourages competitive pricing, and increases the likelihood of selecting a contractor that offers the best value in terms of both cost and quality.

What is the significance of the NAICS code 541720 (Research and Development in the Social Sciences and Humanities) for this contract?

The NAICS code 541720 signifies that the primary business activity and the focus of the services procured under this contract are research and development activities within the social sciences and humanities. For this specific contract, it means the work involves systematic study and investigation into areas like education, sociology, psychology, economics, and policy, aiming to expand knowledge and understanding. This classification helps in identifying the relevant industry sector, potential competitors, and understanding the nature of the services being acquired by the Department of Education.

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

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 4601 DTC BOULEVARD, SUITE 500, DENVER, CO, 90

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

Financial Breakdown

Contract Ceiling: $27,651,454

Exercised Options: $27,651,454

Current Obligation: $27,651,454

Timeline