Department of Education awards $85.1M contract for NAEP materials, distribution, and scoring to NCS Pearson Inc

Contract Overview

Contract Amount: $85,103,479 ($85.1M)

Contractor: NCS Pearson Inc

Awarding Agency: Department of Education

Start Date: 2007-09-27

End Date: 2013-03-26

Contract Duration: 2,007 days

Daily Burn Rate: $42.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: R&D

Official Description: NAEP 2008-2012 MATERIALS, DISTRIBUTION AND SCORING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $85.1 million to NCS PEARSON INC for work described as: NAEP 2008-2012 MATERIALS, DISTRIBUTION AND SCORING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration spans over five years, indicating a long-term need for these services. 3. The awardee, NCS Pearson Inc., is a significant player in educational testing and assessment. 4. The contract type is a definitive contract, typically used for complex or long-term requirements. 5. The contract includes cost-sharing provisions, which may indicate shared risk or benefit. 6. The primary agency and the awarding agency are both the Department of Education. 7. The North American Industry Classification System (NAICS) code 541720 points to Research and Development in the Social Sciences and Humanities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total award amount of $85.1 million over approximately five years suggests a significant investment in the National Assessment of Educational Progress (NAEP). The cost-sharing aspect could imply a mechanism for controlling costs or aligning incentives, but its effectiveness is not detailed. Without more granular data on the scope of services and deliverables, a definitive value-for-money 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 number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the Department of Education sought the best value available in the market for these critical NAEP services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential educational assessment services.

Public Impact

Students across the nation benefit from the accurate and timely assessment of educational progress through NAEP. Educators and policymakers receive crucial data to understand student achievement and inform educational strategies. The contract supports the infrastructure for administering, scoring, and distributing assessments for a key national educational initiative. The geographic impact is nationwide, covering all states and territories participating in NAEP. The workforce implications include jobs in test development, administration, scoring, data analysis, and distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if cost-sharing is not effectively managed.
Dependence on a single contractor for a critical national assessment program.
Risk of service disruption if the contractor faces operational challenges.

Positive Signals

Award to an established contractor with experience in educational testing.
Full and open competition suggests a robust selection process.
Long-term contract provides stability for a vital national program.

Sector Analysis

The contract falls within the Research and Development in the Social Sciences and Humanities sector, specifically related to educational assessment and data services. This is a specialized area within the broader professional, scientific, and technical services industry. The market for large-scale educational testing and scoring services is dominated by a few key players, including NCS Pearson. The value of this contract is significant within this niche, reflecting the importance of the NAEP program.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. Given the specialized nature and scale of the NAEP assessment services, it is possible that larger, established firms are better positioned to compete. Further analysis would be needed to determine if small businesses have opportunities to participate in subcontracting roles.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Education's program offices responsible for NAEP. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally maintained through public reporting of NAEP results, though specific contract details might be subject to standard government procurement confidentiality rules. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

National Assessment of Educational Progress (NAEP)
Department of Education IT and Professional Services Contracts
Educational Testing and Assessment Services
Federal Research and Development Contracts

Risk Flags

Potential for cost overruns
Contractor performance risk
Cybersecurity vulnerabilities
Dependence on single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $85.1 million to NCS PEARSON INC. NAEP 2008-2012 MATERIALS, DISTRIBUTION AND SCORING

Who is the contractor on this award?

The obligated recipient is NCS PEARSON INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $85.1 million.

What is the period of performance?

Start: 2007-09-27. End: 2013-03-26.

What is the historical spending trend for NAEP materials, distribution, and scoring services by the Department of Education?

Analyzing historical spending for NAEP services requires accessing detailed federal procurement data over multiple fiscal years. While this specific contract award is for $85.1 million from 2007 to 2013, understanding the trend involves looking at prior and subsequent contracts for similar services. Factors influencing spending include the frequency of assessments, the number of subjects tested, changes in scoring methodologies (e.g., transition to digital scoring), and overall program expansion or contraction. Without access to a comprehensive historical database, it's difficult to provide precise figures, but NAEP is a consistently funded, long-term initiative, suggesting relatively stable or gradually increasing expenditure over time, barring major policy shifts.

How does the cost per student for NAEP assessment services compare to other large-scale national or international assessments?

Determining the cost per student for NAEP requires dividing the total contract value by the number of students assessed. The provided data does not specify the number of students assessed under this $85.1 million contract (2007-2013). However, NAEP is a complex, large-scale assessment administered to a representative sample of students across the U.S. Its per-student cost is likely higher than simpler, more frequent state-level tests due to the breadth of subjects, rigorous sampling, secure material distribution, and sophisticated scoring (including open-ended responses). International comparisons, such as PISA or TIMSS, also involve significant logistical and analytical costs. Benchmarking requires detailed cost breakdowns and student participation numbers for each assessment.

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

NCS Pearson Inc. (now Pearson) has a substantial history of contracting with the U.S. federal government, including the Department of Education. They are a major provider of educational testing, assessment, and related services. Their federal contract portfolio includes work on large-scale assessments, scoring, data management, and educational technology. Past performance reviews and contract award data would detail their success rates, any past performance issues, and their capacity to handle complex, high-value contracts like the NAEP services. Their long-standing presence suggests a generally positive track record, though specific contract performance can vary.

What are the key performance indicators (KPIs) used to measure the success of this NAEP contract?

Key performance indicators for a contract like this would focus on the timely and accurate delivery of NAEP services. Specific KPIs likely include: 1) On-time delivery of assessment materials to schools nationwide. 2) Adherence to strict security protocols for materials and data. 3) Timeliness of scoring and data processing according to established schedules. 4) Accuracy rates in scoring, particularly for open-ended responses. 5) Successful distribution of assessment results and reports to the Department of Education and relevant stakeholders. 6) System uptime and data integrity for scoring and reporting platforms. Performance against these metrics would determine contractor success and inform future contract awards.

What risks are associated with relying on a single contractor for the critical function of national educational assessment?

Relying on a single contractor for national educational assessments like NAEP presents several risks. Firstly, there's a risk of vendor lock-in, making it difficult and costly to switch providers if performance declines or needs change. Secondly, a single point of failure exists; any operational issues, financial instability, or security breaches at the contractor's end could severely disrupt the assessment process, impacting data collection and reporting. Thirdly, reduced competition might lead to complacency and potentially higher costs or less innovation over time compared to a more competitive market. Finally, the government's leverage in negotiations could be diminished, potentially impacting contract terms and value.

How has the shift towards digital assessment tools impacted the scope and cost of contracts like this one?

The increasing digitization of educational assessments significantly impacts the scope and cost of contracts. For NAEP, this transition involves developing and implementing secure online testing platforms, digital scoring tools, and robust data management systems capable of handling large volumes of electronic data. While digital delivery can streamline distribution and potentially reduce printing costs, it introduces new complexities and expenses related to software development, cybersecurity, IT infrastructure, and technical support. Contracts now encompass not just physical materials but also sophisticated technological solutions, potentially increasing overall costs due to the specialized IT expertise and infrastructure required, alongside the ongoing need for system updates and maintenance.

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: TWO STEP

Offers Received: 1

Pricing Type: COST SHARING (T)

Evaluated Preference: NONE

Contractor Details

Parent Company: GED Testing Service LLC (UEI: 210227468)

Address: 2510 N DODGE ST, IOWA CITY, IA, 52245

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $94,353,852

Exercised Options: $85,103,479

Current Obligation: $85,103,479

Actual Outlays: $3,057,883

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline