Education Dept. Modifies $6M Contract for Services, Correcting System Error
Contract Overview
Contract Amount: $30,313,615 ($30.3M)
Contractor: ABT Global LLC
Awarding Agency: Department of Education
Start Date: 2004-11-29
End Date: 2009-03-28
Contract Duration: 1,580 days
Daily Burn Rate: $19.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: TO CORRECT A SYSTEM ERROR THAT HAD SAID GOODS AND MAKE THE OBLIGATION OF $6 MILLION SAY "SERVICES".
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138
Plain-Language Summary
Department of Education obligated $30.3 million to ABT GLOBAL LLC for work described as: TO CORRECT A SYSTEM ERROR THAT HAD SAID GOODS AND MAKE THE OBLIGATION OF $6 MILLION SAY "SERVICES". Key points: 1. Contract modification corrects a data entry error, changing 'goods' to 'services'. 2. The original obligation was $6 million, with a current value of $303,136,151. 3. Awarded to ABT GLOBAL LLC by the Department of Education. 4. This was a competitive delivery order under a MAS contract. 5. The contract type is Cost Plus Award Fee.
Value Assessment
Rating: fair
The contract's value has significantly increased from its initial $6 million to over $303 million. The Cost Plus Award Fee structure can lead to higher costs if not managed carefully, making ongoing performance monitoring crucial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a competitive delivery order, suggesting some level of competition. However, the specific details of the competition and how the price was determined are not fully clear from the provided data, especially given the significant increase in contract value.
Taxpayer Impact: The substantial increase in contract value necessitates careful oversight to ensure taxpayer funds are used efficiently and effectively for the intended services.
Public Impact
Students and educational institutions may be impacted by the services provided under this contract. The Department of Education's ability to deliver on its mission is supported by such contracts. Transparency in contract modifications is essential for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Significant contract value increase
- Cost Plus Award Fee structure
- Potential for scope creep
Positive Signals
- Competitive delivery order
- Correction of system error
Sector Analysis
This contract falls within the professional services sector, supporting the Department of Education's administrative and operational functions. Spending benchmarks for similar IT or professional services contracts can vary widely based on scope and duration.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved or had opportunities.
Oversight & Accountability
The modification indicates a need for robust internal controls and oversight to prevent and correct system errors. Ongoing monitoring of contract performance and expenditures is critical given the contract's value and fee structure.
Related Government Programs
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Significant contract value increase
- Cost Plus Award Fee structure
- Lack of detailed service description
- Potential for cost overruns
- Limited transparency on competition details
Tags
department-of-education, ma, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $30.3 million to ABT GLOBAL LLC. TO CORRECT A SYSTEM ERROR THAT HAD SAID GOODS AND MAKE THE OBLIGATION OF $6 MILLION SAY "SERVICES".
Who is the contractor on this award?
The obligated recipient is ABT GLOBAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $30.3 million.
What is the period of performance?
Start: 2004-11-29. End: 2009-03-28.
What specific services are being procured under this contract, and how do they align with the Department of Education's strategic goals?
The data indicates a correction from 'goods' to 'services,' but the precise nature of these services is not detailed. Understanding the specific services is crucial to assess their alignment with the Department of Education's mission and strategic objectives. This information would allow for a better evaluation of the contract's value and necessity.
What factors contributed to the significant increase in the contract's value from an initial $6 million to over $303 million?
The substantial escalation in contract value warrants detailed investigation. Potential reasons could include scope expansion, unforeseen requirements, inflation adjustments, or changes in service delivery models. Understanding these drivers is essential for assessing whether the increased cost represents good value for taxpayer money and if the original competitive process adequately anticipated this growth.
How effectively is the Cost Plus Award Fee structure being managed to incentivize performance while controlling costs?
The Cost Plus Award Fee (CPAF) structure allows for reimbursement of costs plus an award fee based on performance. Effective management requires clear performance metrics, objective evaluations, and a robust process for determining award fees. Without this, there's a risk of inflated costs or inadequate performance, making oversight critical to ensure taxpayer funds are used judiciously.
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 55 WHEELER ST STE 1A, CAMBRIDGE, MA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $30,713,615
Exercised Options: $30,713,615
Current Obligation: $30,313,615
Contract Characteristics
Multi-Year Contract: Yes
Parent Contract
Parent Award PIID: ED01CO0093
IDV Type: IDC
Timeline
Start Date: 2004-11-29
Current End Date: 2009-03-28
Potential End Date: 2009-03-28 00:00:00
Last Modified: 2011-10-05
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