Education Contract Modified: $12.3M Increase for Services, Funding, and Performance Extension

Contract Overview

Contract Amount: $12,349,105 ($12.3M)

Contractor: American Institutes for Research in the Behavioral Sciences

Awarding Agency: Department of Education

Start Date: 2003-03-15

End Date: 2010-11-22

Contract Duration: 2,809 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: THE PURPOSE OF THIS MODIFICATION IS TO 1) CHANGE THE DESCRIPTION OF SERVICES, INCREASING THE VALUE OF THE CONTRACT, 2) ADD INCREMENTAL FUNDING TO THE CONTRACT FOR CONTINUAL WORK, 3) UPDATE THE PERIOD OF PERFORMANCE, AND 4) EQUITABLE ADJUSTMENT (CONTRACTOR'S RELEASE).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20007

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $12.3 million to AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES for work described as: THE PURPOSE OF THIS MODIFICATION IS TO 1) CHANGE THE DESCRIPTION OF SERVICES, INCREASING THE VALUE OF THE CONTRACT, 2) ADD INCREMENTAL FUNDING TO THE CONTRACT FOR CONTINUAL WORK, 3) UPDATE THE PERIOD OF PERFORMANCE, AND 4) EQUITABLE ADJUSTMENT (CONTRACTOR'S RELEASE). Key points: 1. Contract value increased by $12.3M, indicating expanded scope or additional services. 2. Extended performance period suggests ongoing need and potential for sustained spending. 3. Modification includes equitable adjustment, implying a negotiated change with the contractor. 4. Department of Education is the primary agency involved in this significant contract modification.

Value Assessment

Rating: fair

The contract's total value has significantly increased, but without specific cost breakdowns or benchmarks, assessing its value for money is difficult. The Cost Plus Award Fee structure allows for performance-based incentives, which can be effective if well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the modification's details do not provide information on the pricing strategies or how the increased value was determined through this competition.

Taxpayer Impact: The $12.3M increase represents a substantial allocation of taxpayer funds, necessitating scrutiny to ensure the expanded services and extended performance are justified and cost-effective.

Public Impact

Increased spending on educational research and services by the Department of Education. Potential impact on educational programs and policy due to expanded research scope. Longer contract duration may signify stable, long-term support for specific initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the professional services sector, specifically related to behavioral sciences and education. Spending in this area supports research, analysis, and program development within the Department of Education.

Small Business Impact

The data does not indicate whether small businesses were involved in the original competition or as subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The modification process itself suggests a level of oversight. However, the details provided are insufficient to assess the thoroughness of the review for the significant increase in contract value and duration.

Related Government Programs

Risk Flags

Tags

department-of-education, dc, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $12.3 million to AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES. THE PURPOSE OF THIS MODIFICATION IS TO 1) CHANGE THE DESCRIPTION OF SERVICES, INCREASING THE VALUE OF THE CONTRACT, 2) ADD INCREMENTAL FUNDING TO THE CONTRACT FOR CONTINUAL WORK, 3) UPDATE THE PERIOD OF PERFORMANCE, AND 4) EQUITABLE ADJUSTMENT (CONTRACTOR'S RELEASE).

Who is the contractor on this award?

The obligated recipient is AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2003-03-15. End: 2010-11-22.

What specific services were added or changed to warrant the $12.3M increase, and how does this align with the Department of Education's strategic goals?

The modification states a change in the 'description of services' as the primary driver for the $12.3M increase. To assess value, a detailed breakdown of these new or altered services is required. Understanding how these services directly contribute to the Department of Education's mission and current strategic objectives is crucial for justifying the expanded investment and ensuring taxpayer funds are used effectively.

Given the Cost Plus Award Fee structure and the significant contract value increase, what measures are in place to mitigate the risk of cost overruns and ensure contractor performance?

The Cost Plus Award Fee (CPAF) structure inherently carries a risk of cost escalation if not rigorously managed. Effective oversight requires clearly defined performance metrics, objective award fee criteria, and regular audits. The Department of Education must ensure robust monitoring mechanisms are in place to track costs, evaluate performance against award criteria, and prevent unnecessary expenditures, especially with the extended period of performance.

How does the extended performance period, coupled with the increased funding, contribute to the overall effectiveness of the services being procured by the Department of Education?

An extended performance period can enhance effectiveness by allowing for more comprehensive research, development, or implementation of services. However, its true contribution depends on whether the extended timeline is necessary for achieving project goals or simply prolongs the engagement. The increased funding must be directly tied to the expanded scope and duration, ensuring that the additional resources translate into tangible, measurable improvements in educational outcomes or program delivery.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 1000 THOMAS JEFFERSON ST, WASHINGTON, DC, 98

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,360,579

Exercised Options: $12,360,579

Current Obligation: $12,349,105

Parent Contract

Parent Award PIID: ED01CO0026

IDV Type: IDC

Timeline

Start Date: 2003-03-15

Current End Date: 2010-11-22

Potential End Date: 2010-11-22 00:00:00

Last Modified: 2010-11-24

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