Department of Education contract for R&D in social sciences and humanities awarded to Education Northwest for over $11 million

Contract Overview

Contract Amount: $11,036,853 ($11.0M)

Contractor: Education Northwest

Awarding Agency: Department of Education

Start Date: 2004-05-12

End Date: 2006-02-28

Contract Duration: 657 days

Daily Burn Rate: $16.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE

Sector: R&D

Official Description: THIS CONTRACTOR AIDS THE NORTHWEST REGION (5 STATES INCLUDING OR, WA, ID, MT, UT) IN PROVIDING SERVICES TO LOCAL EDUCATION AGENCIES, STATE ED AGENCIES AND SUPERINTENDENTS. SOME RESEARCH PROJECTS IN A SPECIALIZED AREA.

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97204

State: Oregon Government Spending

Plain-Language Summary

Department of Education obligated $11.0 million to EDUCATION NORTHWEST for work described as: THIS CONTRACTOR AIDS THE NORTHWEST REGION (5 STATES INCLUDING OR, WA, ID, MT, UT) IN PROVIDING SERVICES TO LOCAL EDUCATION AGENCIES, STATE ED AGENCIES AND SUPERINTENDENTS. SOME RESEARCH PROJECTS IN A SPECIALIZED AREA. Key points: 1. Contract focuses on supporting educational agencies across five Northwestern states. 2. Research component targets specialized areas within social sciences and humanities. 3. Contract duration of 657 days suggests a medium-term project. 4. Awarded as a Cost Plus Incentive type, indicating performance-based incentives. 5. No small business set-aside was utilized for this procurement. 6. The contract was not competed under simplified acquisition procedures.

Value Assessment

Rating: fair

The contract's value of over $11 million for a 657-day duration appears substantial for research and development services. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money effectively. The Cost Plus Incentive fee structure suggests an attempt to align contractor performance with government objectives, but the ultimate cost-effectiveness hinges on the successful achievement of research outcomes and the efficiency of the contractor's operations. Further analysis of the specific research objectives and achieved outcomes would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or capable of meeting the requirement. The lack of competition means that the government did not benefit from a range of proposals and pricing strategies that would typically emerge from a competitive bidding process. This can potentially lead to higher costs than might be achieved through open competition.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The government did not explore alternative solutions or pricing from multiple vendors.

Public Impact

Local and State Education Agencies in the Northwest region (OR, WA, ID, MT, UT) benefit from enhanced support services. Superintendents in these states receive assistance related to educational initiatives. The contract supports research projects in specialized areas of social sciences and humanities, potentially advancing knowledge in these fields. The geographic impact is concentrated within the five specified Northwestern states.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal resource allocation.
Sole-source award limits transparency and opportunities for new or innovative solutions.
Cost Plus Incentive fee structure, while incentivizing, can lead to cost overruns if not tightly managed.

Positive Signals

Focus on supporting educational agencies addresses a critical public service need.
Research component may yield valuable insights for the education sector.
The contractor's focus on a specific region suggests tailored support.

Sector Analysis

The contract falls within the Research and Development in the Social Sciences and Humanities sector (NAICS 541720). This sector involves conducting research and investigations and providing related services in social sciences and humanities. Spending in this area often supports policy development, program evaluation, and the advancement of academic knowledge. Comparable spending benchmarks would depend on the specific nature and scope of the research, but contracts of this magnitude are typical for significant research initiatives.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific procurement. The impact on the small business ecosystem is therefore minimal for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers. As a sole-source award, the justification for this approach would be documented and subject to internal review. Transparency is limited due to the non-competitive nature. There is no specific mention of an Inspector General's jurisdiction for this particular award, but general oversight functions would apply.

Related Government Programs

Education Research and Development
State Education Agency Support
Educational Policy Research
Social Sciences Research Grants

Risk Flags

Sole-source award limits competitive pricing.
Cost Plus Incentive fee structure requires careful monitoring to ensure value.
Lack of detailed performance metrics in provided data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $11.0 million to EDUCATION NORTHWEST. THIS CONTRACTOR AIDS THE NORTHWEST REGION (5 STATES INCLUDING OR, WA, ID, MT, UT) IN PROVIDING SERVICES TO LOCAL EDUCATION AGENCIES, STATE ED AGENCIES AND SUPERINTENDENTS. SOME RESEARCH PROJECTS IN A SPECIALIZED AREA.

Who is the contractor on this award?

The obligated recipient is EDUCATION NORTHWEST.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2004-05-12. End: 2006-02-28.

What specific research projects were undertaken under this contract, and what were their key findings?

The provided data does not detail the specific research projects conducted under this contract. The contract's description mentions 'some research projects in a specialized area.' To ascertain the key findings, one would need to access project reports, publications, or final deliverables associated with this award. Such information is typically available through the Department of Education's research repositories or by directly contacting the agency program office responsible for overseeing this contract. Without these specifics, the impact and value of the research remain qualitative.

How does the $11 million cost compare to similar R&D contracts for educational support in the region?

Benchmarking this $11 million contract against similar R&D contracts for educational support in the Northwest region is challenging without more granular data on contract scope, duration, and specific deliverables. However, for a contract spanning approximately 22 months (657 days), this represents a significant investment. Typical R&D contracts can vary widely in cost based on the complexity of the research, the number of personnel involved, and the expected outcomes. To provide a precise comparison, one would need to identify contracts with comparable objectives, geographic focus, and contractor capabilities. The sole-source nature of this award also complicates direct value comparisons, as competitive bids often drive down costs.

What were the justifications for awarding this contract on a sole-source basis?

The data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), implying it was likely awarded under other transaction authority or a specific sole-source justification. Common reasons for sole-source awards include the unavailability of other responsible sources, the need for specialized expertise possessed by only one contractor, or urgent and compelling circumstances. For this contract, the justification would likely stem from Education Northwest possessing unique capabilities or fulfilling a specific, non-duplicable role in supporting educational agencies in the designated five-state region. A formal Justification for Other than Full and Open Competition (JOFOC) would typically be required and documented by the agency.

What is the track record of Education Northwest in delivering similar research and development services?

Education Northwest is a non-profit organization that has a long-standing history of providing research, development, and technical assistance services to educational institutions. Their work typically focuses on improving education from early learning through postsecondary education. While this specific contract award is from 2004-2006, their ongoing operations and numerous other federal and state grants suggest a consistent track record in the education sector. Assessing their performance on this particular contract would require reviewing performance evaluations, contract close-out reports, or any documented outcomes related to the research and support services provided.

What are the potential risks associated with a Cost Plus Incentive (CPI) contract type for this project?

Cost Plus Incentive (CPI) contracts aim to share cost savings or cost overruns between the government and the contractor, incentivizing efficiency. However, risks include potential for the target cost to be set too high, leading to contractor profit without significant savings, or for the incentive structure to inadvertently encourage cost-cutting in areas that compromise quality or research integrity. Effective oversight is crucial to ensure the target cost is realistic and the incentive clauses are aligned with the government's primary objectives. Without robust monitoring, the government might end up paying more than necessary, even with incentives, if the baseline cost estimates are flawed or if the contractor prioritizes achieving incentives over optimal research outcomes.

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: NOT COMPETED UNDER SAP

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE (V)

Contractor Details

Address: 101 SW MAIN ST STE 500, PORTLAND, OR, 90

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,596,968

Exercised Options: $26,860,159

Current Obligation: $11,036,853

Contract Characteristics

Multi-Year Contract: Yes

Timeline