Department of Education awards $41.5M contract for item development to Educational Testing Service
Contract Overview
Contract Amount: $41,451,611 ($41.5M)
Contractor: Educational Testing Service
Awarding Agency: Department of Education
Start Date: 2007-09-27
End Date: 2013-03-26
Contract Duration: 2,007 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: NAEP ALLIANCE 2008 2012 ITEM DEVELOPMENT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202
Plain-Language Summary
Department of Education obligated $41.5 million to EDUCATIONAL TESTING SERVICE for work described as: NAEP ALLIANCE 2008 2012 ITEM DEVELOPMENT Key points: 1. Contract awarded to a single, established provider of educational testing services. 2. The contract type is Cost Plus Award Fee, which incentivizes performance. 3. Duration of the contract spans over five years, indicating a long-term need. 4. The contract was awarded through full and open competition. 5. This contract supports research and development in social sciences and humanities. 6. The contract value is significant within the R&D sector for educational assessment.
Value Assessment
Rating: fair
The contract value of $41.5 million over approximately five years for item development is substantial. Benchmarking this against similar contracts for educational assessment development is challenging without more specific details on the scope of work and deliverables. The Cost Plus Award Fee structure suggests that the government aims to control costs while incentivizing high performance, but the final cost can vary. Without detailed performance metrics and comparison data, assessing the true value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The data shows one award, but the competition process itself suggests a market capable of supporting multiple providers for such services. The level of competition is positive for price discovery, as it theoretically allows for the selection of the most cost-effective and capable offeror.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.
Public Impact
Students and educators benefit from the development of new and improved assessment items. The contract supports the creation of standardized testing materials. The geographic impact is national, as educational standards and assessments often have broad reach. The workforce implications include employment for researchers, item writers, and psychometricians in the field of educational assessment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if not managed tightly.
- Reliance on a single contractor for a significant period may limit future innovation or cost reduction opportunities.
- Difficulty in precisely benchmarking value without detailed scope and performance data.
Positive Signals
- Award through full and open competition suggests a robust bidding process.
- Cost Plus Award Fee structure provides incentives for contractor performance.
- Long contract duration indicates a sustained and important need for these services.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on educational assessment and psychometrics. The market for educational testing services is significant, driven by federal and state mandates for accountability and student progress tracking. Companies like Educational Testing Service are major players in this space, providing a range of services from test design to scoring. Comparable spending benchmarks would involve looking at other large-scale contracts for educational research, test development, and psychometric analysis.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large, established entity. There is no explicit information on subcontracting plans for small businesses. The focus on specialized R&D in educational assessment may limit opportunities for broad small business participation unless specific subcontracting goals are mandated and met.
Oversight & Accountability
Oversight for this contract would typically reside within the Department of Education's program offices responsible for educational research and assessment. Accountability measures are likely tied to the performance standards and award fee criteria outlined in the Cost Plus Award Fee contract. Transparency would be facilitated through contract award notices and potentially public reports on the research outcomes, though specific details of item development may be proprietary.
Related Government Programs
- National Assessment of Educational Progress (NAEP)
- Educational Research Grants
- Standardized Testing Programs
- Curriculum Development Support
Risk Flags
- Potential for cost creep in CPAF contracts.
- Long-term reliance on a single vendor.
- Limited transparency on specific item development details.
Tags
research-and-development, department-of-education, educational-testing-service, definitive-contract, cost-plus-award-fee, full-and-open-competition, district-of-columbia, item-development, assessment, naep
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $41.5 million to EDUCATIONAL TESTING SERVICE. NAEP ALLIANCE 2008 2012 ITEM DEVELOPMENT
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 $41.5 million.
What is the period of performance?
Start: 2007-09-27. End: 2013-03-26.
What is the specific nature of the 'item development' for NAEP ALLIANCE 2008 2012?
The 'item development' for NAEP ALLIANCE 2008 2012 likely refers to the creation of new questions, tasks, and stimuli for standardized educational assessments administered by the National Assessment of Educational Progress (NAEP). This process involves subject matter experts and psychometricians designing, reviewing, and piloting test items aligned with specific learning standards and content frameworks. The 'ALLIANCE' designation might refer to a specific initiative or partnership related to NAEP's development or a particular subject area focus during those years. The goal is to ensure the assessment accurately measures student achievement across various domains.
How does the Cost Plus Award Fee (CPAF) structure typically function in contracts like this?
A Cost Plus Award Fee (CPAF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a fee. The fee consists of a base amount (often a small percentage of anticipated costs) and an award amount. The award amount is determined by the government based on the contractor's performance against pre-defined criteria and objectives. This structure incentivizes the contractor to perform well and achieve specific goals, as a higher award fee is contingent upon meeting or exceeding expectations. For item development, award criteria might include the quality of items, adherence to psychometric standards, timeliness of delivery, and innovation in assessment design.
What are the potential risks associated with a long-term contract for item development?
Long-term contracts for item development, like the one awarded to Educational Testing Service, carry several potential risks. Firstly, there's the risk of contractor complacency or a decline in innovation over time, as the primary provider may face less pressure to evolve. Secondly, educational standards and best practices in assessment can change, and a long-standing contract might be slow to adapt unless explicitly managed. Thirdly, if the contractor's performance falters or costs escalate unexpectedly, the government is locked into a lengthy commitment, making a transition difficult and potentially costly. Finally, over-reliance on a single entity could stifle competition and limit the exploration of alternative assessment methodologies or providers in the future.
Can the 'Research and Development in the Social Sciences and Humanities' classification accurately describe the work performed?
Yes, the classification 'Research and Development in the Social Sciences and Humanities' (NAICS code 541720) accurately describes the work performed under this contract. Developing assessment items for subjects like reading, mathematics, science, history, and civics falls squarely within the social sciences and humanities. This R&D involves understanding learning theories, curriculum standards, psychometric principles, and cognitive development to create valid and reliable measures of student achievement. It's research into how best to assess knowledge and skills in these academic areas, and development of the tools (items) to do so.
What does the 'DEFINITIVE CONTRACT' designation imply about the contract's nature?
The designation 'DEFINITIVE CONTRACT' typically refers to a contract that has been finalized and is not a preliminary agreement like a letter contract or an order under a basic ordering agreement. In this context, it signifies that the terms, conditions, scope, and price (or pricing structure, as in CPAF) have been fully negotiated and agreed upon between the Department of Education and Educational Testing Service. It represents the final, binding agreement for the specified period and services, distinguishing it from more flexible or interim contractual instruments.
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
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 666 ROSEDALE ROAD MS 85-D, PRINCETON, NJ, 08541
Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $42,008,108
Exercised Options: $41,453,952
Current Obligation: $41,451,611
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2007-09-27
Current End Date: 2013-03-26
Potential End Date: 2013-03-26 00:00:00
Last Modified: 2021-09-24
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