Department of Education awards $124M contract for educational data collection to Westat, Inc
Contract Overview
Contract Amount: $124,141,139 ($124.1M)
Contractor: Westat, Inc.
Awarding Agency: Department of Education
Start Date: 2004-07-30
End Date: 2007-12-31
Contract Duration: 1,249 days
Daily Burn Rate: $99.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS - SAMPLING AND DATA COLLECTION
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Education obligated $124.1 million to WESTAT, INC. for work described as: NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS - SAMPLING AND DATA COLLECTION Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. Westat, Inc. has secured this significant award, indicating their capability in research and data collection. 4. The contract duration is over 3 years, suggesting a substantial and ongoing need for these services. 5. The award is for sampling and data collection for the National Assessment of Educational Progress. 6. The contract was awarded by the Department of Education, the primary agency for educational initiatives.
Value Assessment
Rating: good
The contract value of $124 million over approximately 3.5 years for sampling and data collection services for a national assessment appears reasonable given the scope. Benchmarking against similar large-scale data collection contracts for federal research initiatives would provide a more precise value-for-money assessment. The Cost Plus Award Fee structure allows for performance-based incentives, which can drive efficiency and effectiveness, potentially leading to better value than fixed-price contracts if managed well.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of multiple bidders generally fosters price discovery and encourages contractors to offer competitive pricing. The specific number of bidders (5) suggests a healthy level of competition for this significant research and data collection requirement.
Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging the selection of the most capable and cost-effective provider.
Public Impact
Students and educators nationwide benefit from the data collected, which informs educational policy and practice. The National Assessment of Educational Progress (NAEP) provides crucial insights into student achievement across various subjects. The services delivered include sampling methodologies and data collection for a key national educational survey. The geographic impact is nationwide, covering all states and jurisdictions participating in NAEP. The contract supports a workforce involved in survey design, data collection, and analysis.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely monitored.
- Dependence on a single contractor for critical national educational data collection raises concerns about continuity and potential vendor lock-in.
- The long duration of the contract could limit opportunities for newer, innovative firms to enter the market.
- Ensuring data integrity and security throughout the collection process is paramount and requires robust oversight.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Cost Plus Award Fee structure incentivizes high performance and quality outcomes.
- Westat, Inc. is a known entity in the research and data collection field, suggesting established expertise.
- The contract supports a vital national assessment program that informs educational improvement.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on social sciences and humanities research, with a primary application in educational assessment. The market for large-scale data collection and analysis services for government agencies is competitive, with several established firms capable of undertaking such projects. The size of this contract, over $124 million, places it among significant federal research awards. Comparable spending benchmarks would involve looking at other large federal surveys and data collection efforts across agencies like the Census Bureau or NIH.
Small Business Impact
The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a large contract awarded through full and open competition, it is possible that subcontracting opportunities may exist, but their extent and impact on the small business ecosystem are not detailed here. Further analysis would be needed to determine if small businesses are involved in supporting Westat, Inc. on this contract.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving award fees based on performance metrics. Transparency is generally maintained through contract award databases and public reporting, though specific performance details may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- National Assessment of Educational Progress (NAEP)
- Federal Education Research Grants
- Government Data Collection Services
- Educational Statistics and Surveys
Risk Flags
- Potential for cost overruns in CPAF contracts.
- Over-reliance on a single contractor.
- Data integrity and security risks.
- Ensuring continued innovation over contract duration.
Tags
department-of-education, research-and-development, data-collection, national-assessment-of-educational-progress, westat-inc, cost-plus-award-fee, full-and-open-competition, education, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $124.1 million to WESTAT, INC.. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS - SAMPLING AND DATA COLLECTION
Who is the contractor on this award?
The obligated recipient is WESTAT, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $124.1 million.
What is the period of performance?
Start: 2004-07-30. End: 2007-12-31.
What is Westat, Inc.'s track record with the Department of Education and similar federal agencies for large-scale data collection contracts?
Westat, Inc. has a significant history of working with the Department of Education and other federal agencies on large-scale data collection and research projects. They are a well-established research firm specializing in survey design, sampling, data collection, and statistical analysis. Their portfolio includes numerous contracts for federal surveys and assessments, often involving complex methodologies and large participant pools. For instance, Westat has been a long-term partner for the National Assessment of Educational Progress (NAEP) itself, handling various aspects of its data collection over many years. Their experience with agencies like the National Center for Education Statistics (NCES), the National Science Foundation (NSF), and the Centers for Disease Control and Prevention (CDC) further demonstrates their capability in managing substantial federal research contracts. This extensive track record suggests a high degree of familiarity with federal procurement regulations, reporting requirements, and the technical demands of producing reliable educational data.
How does the $124 million contract value compare to previous NAEP data collection efforts or similar federal research contracts?
The $124 million contract value for this NAEP sampling and data collection effort represents a substantial investment. To benchmark this effectively, one would compare it to the historical spending on previous NAEP data collection cycles, adjusting for inflation and scope changes. For example, if previous NAEP data collection contracts were in the $20-30 million range annually, this $124 million award over approximately 3.5 years ($35 million annually) indicates either an expansion in the scope of NAEP, increased complexity, or a rise in the cost of services. Comparing it to other large federal research contracts, such as those awarded by the National Institutes of Health (NIH) for biomedical research or the Census Bureau for decennial census operations, would provide broader context. These large-scale federal research and data collection contracts often run into tens or hundreds of millions of dollars, reflecting the complexity, scale, and national importance of the work. The value appears consistent with the demands of a national educational assessment program.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for data collection, and how are they mitigated?
The primary risk with a Cost Plus Award Fee (CPAF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fee that is adjusted based on performance. Unlike fixed-price contracts, there is less direct financial incentive for the contractor to control costs rigorously if the award fee is guaranteed or easily achieved. This can lead to higher overall spending than anticipated. Mitigation strategies employed by the government include robust oversight by contracting officers and program managers, clearly defined performance metrics and award fee criteria, and regular audits. The Department of Education would need to meticulously track Westat's expenditures, evaluate their performance against pre-defined objectives (e.g., data quality, timeliness, participant response rates), and ensure that the award fee is justified. Strong contract administration and clear communication channels are crucial to managing these risks and ensuring value for money.
How does the competition level (5 bidders) impact the potential for innovation and cost-effectiveness in this contract?
Having five bidders for this contract suggests a healthy level of competition, which generally benefits both innovation and cost-effectiveness. When multiple firms compete, they are motivated to offer their best technical solutions and pricing to win the contract. This competitive pressure can drive innovation as companies strive to differentiate themselves through superior methodologies, technology, or project management approaches. For cost-effectiveness, competition typically leads to lower prices as bidders aim to be the most attractive option financially. The Department of Education can leverage this competition by evaluating not only the proposed costs but also the innovative aspects of each proposal. While a CPAF structure has its own cost dynamics, the initial competitive bidding process sets a baseline for pricing and encourages efficiency from the outset. The government's ability to select the best value proposal, considering both technical merit and cost, is enhanced by a robust field of bidders.
What are the implications of awarding this contract to a single entity (Westat, Inc.) for the long-term continuity and evolution of the NAEP program?
Awarding a significant, long-term contract like this to a single entity, Westat, Inc., has implications for both continuity and potential challenges in evolution. On the continuity side, it ensures a stable, experienced provider managing the complex data collection operations for NAEP, minimizing disruption and leveraging established expertise. This is crucial for maintaining the integrity and comparability of NAEP data over time. However, relying on a single contractor for an extended period can also create vendor lock-in, potentially reducing incentives for the contractor to innovate aggressively or for the government to explore alternative approaches. It might also limit opportunities for other firms, including smaller, more agile companies, to gain experience and contribute to the program. The Department of Education would need to actively manage this relationship, ensuring performance standards remain high and periodically reassessing the market to ensure the best long-term strategy for NAEP.
Can the performance metrics and award fee structure for this CPAF contract be detailed to understand how contractor performance is evaluated?
While the specific performance metrics and award fee structure are not detailed in the provided summary data, they are critical components of any Cost Plus Award Fee (CPAF) contract. For a contract focused on sampling and data collection for the National Assessment of Educational Progress (NAEP), typical performance areas would likely include: data quality and accuracy (e.g., adherence to sampling frames, low error rates in data entry), timeliness of data collection and reporting (meeting interim and final deadlines), participant engagement and response rates (achieving target participation levels), adherence to security and privacy protocols, and overall project management effectiveness. The award fee would be determined by how well Westat, Inc. meets or exceeds pre-defined targets in these areas. The Department of Education's contracting officer would assess performance against these criteria, and a portion of the fee would be withheld if targets are missed, while a higher fee could be earned for exceptional performance. Clear, objective, and measurable metrics are essential for the fair and effective administration of a CPAF contract.
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: RESEARCH AND DEVELOPMENT › Education, Training, Employment, and Social Services R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 1650 RESEARCH BOULEVARD, ROCKVILLE, MD, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $174,001,711
Exercised Options: $174,001,711
Current Obligation: $124,141,139
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: YES
Timeline
Start Date: 2004-07-30
Current End Date: 2007-12-31
Potential End Date: 2007-12-31 00:00:00
Last Modified: 2010-02-23
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