Department of Education awards $32.5M contract for NAEP materials, distribution, and scoring to NCS Pearson Inc

Contract Overview

Contract Amount: $32,549,775 ($32.5M)

Contractor: NCS Pearson Inc

Awarding Agency: Department of Education

Start Date: 2004-09-30

End Date: 2008-08-30

Contract Duration: 1,430 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: NAEP 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 $32.5 million to NCS PEARSON INC for work described as: NAEP MATERIALS, DISTRIBUTION, AND SCORING Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance but can lead to higher costs if not managed carefully. 3. The duration of the contract (1430 days) indicates a long-term need for these services. 4. The award amount of $32.5M over approximately four years suggests a significant investment in educational assessment infrastructure. 5. The contractor, NCS Pearson Inc., has a substantial presence in the educational testing and assessment market. 6. The contract is for Research and Development in the Social Sciences and Humanities, aligning with the NAEP's mission.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Award Fee structure means the final cost is tied to performance, making direct price comparisons difficult. However, the total award amount over its duration suggests a significant but potentially justifiable expenditure for a national-scale assessment program like NAEP. Further analysis would require understanding the scope of services and the efficiency achieved relative to the award fees.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to drive better pricing and service quality. The fact that a single award was made suggests NCS Pearson Inc. was the most advantageous offer, though the number of bids received is not specified.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining the best value through market forces, potentially leading to lower overall costs compared to sole-source or limited competition scenarios.

Public Impact

Students across the nation benefit from standardized assessments that inform educational policy and practice. The contract supports the National Assessment of Educational Progress (NAEP), providing crucial data on student achievement. Educational researchers and policymakers gain access to reliable data for evaluating the state of education. The contract ensures the continued operation and integrity of a key national education monitoring system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require diligent oversight to ensure award fees are earned based on genuine performance and not inflated costs.
The long contract duration necessitates ongoing monitoring to ensure continued relevance and adaptation to evolving educational needs.

Positive Signals

Awarding under full and open competition suggests a healthy market and potential for competitive pricing.
The specific focus on NAEP materials, distribution, and scoring indicates a clear and defined need being met.

Sector Analysis

This contract falls within the broader 'Research and Development in the Social Sciences and Humanities' sector, specifically focusing on educational assessment. The market for educational testing services is substantial, encompassing test development, administration, scoring, and data analysis. Companies like NCS Pearson Inc. operate in a competitive landscape where government contracts for large-scale assessments are significant. Benchmarking would involve comparing this award to other large federal contracts for similar assessment services, which are often awarded to a few specialized firms.

Small Business Impact

Information regarding small business participation or subcontracting goals is not provided in the available data. Typically, large federal contracts may include provisions for small business subcontracting, but without specific details, the impact on the small business ecosystem remains unclear. The primary contractor, NCS Pearson Inc., is a large entity, suggesting that any small business involvement would likely be through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers. The Cost Plus Award Fee structure implies performance metrics that would be monitored to determine award fee payouts. Transparency would be enhanced through contract award databases and potentially through public reporting of NAEP results. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

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

Risk Flags

Cost Plus Award Fee structure requires diligent oversight to prevent cost overruns.
Long contract duration necessitates ongoing performance monitoring and adaptation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $32.5 million to NCS PEARSON INC. NAEP 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 $32.5 million.

What is the period of performance?

Start: 2004-09-30. End: 2008-08-30.

What is the track record of NCS Pearson Inc. with federal contracts, particularly in educational assessment?

NCS Pearson Inc. (now Pearson) has a long history of providing educational testing and assessment services to various government agencies, including the Department of Education. They are a major player in the development, scoring, and distribution of standardized tests. Their federal contract history includes numerous awards for large-scale assessments, professional development, and educational technology solutions. While specific performance details for every contract are not publicly available, their continued success in winning significant federal contracts suggests a generally positive track record and established expertise in meeting government requirements for educational services. It is important to review individual contract performance reports and any associated award fee data where available for a more granular assessment.

How does the $32.5M award compare to historical spending on NAEP materials, distribution, and scoring?

To accurately compare the $32.5M award to historical spending, one would need to analyze NAEP's budget over previous contract periods. The provided data indicates this contract was awarded in 2004 and ended in 2008, spanning approximately 1430 days (around 4 years). If this represents a typical contract cycle, the annual average would be roughly $8.1 million. Historical data from the Department of Education or Congressional Research Service reports on NAEP funding would be necessary to determine if this award amount represents an increase, decrease, or stable level of investment compared to prior contracts for similar services. Factors such as inflation, changes in assessment scope, and technological advancements could influence year-over-year spending.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for educational assessment services?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract for educational assessment services revolve around cost control and performance definition. For the government, there's a risk that the contractor may incur higher costs than necessary if the award fee structure is not tightly managed, as the contractor is reimbursed for allowable costs plus an incentive fee. Defining objective and measurable performance standards to fairly award the fee can be challenging, potentially leading to disputes or the contractor focusing on easily achievable metrics rather than overall program effectiveness. For the contractor, the risk lies in not meeting the performance targets required to earn the award fee, thus reducing their overall profit margin. Effective oversight and clear performance metrics are crucial to mitigate these risks.

How does the 'Research and Development in the Social Sciences and Humanities' classification impact the understanding of this contract's value?

The classification 'Research and Development in the Social Sciences and Humanities' (NAICS code 541720) highlights that this contract is not merely for the routine distribution and scoring of tests, but likely involves elements of research and development related to the National Assessment of Educational Progress (NAEP). This could include developing new assessment methodologies, refining scoring algorithms, researching educational trends, or improving data analysis techniques. This R&D component suggests a higher potential for innovation and long-term improvement in educational measurement, which can justify a higher investment compared to a purely service-delivery contract. The value, therefore, extends beyond immediate operational efficiency to include advancements in educational science and policy insights.

What are the implications of the contract being awarded in Washington D.C. (st: DC, sn: DISTRICT OF COLUMBIA)?

The contract being awarded to NCS Pearson Inc. with a performance location or administrative hub in Washington D.C. (st: DC, sn: DISTRICT OF COLUMBIA) suggests a close proximity to the Department of Education headquarters. This geographical alignment can facilitate communication, oversight, and collaboration between the agency and the contractor. It may also indicate that the contractor has a significant presence or operational base in the D.C. area to effectively manage federal contracts. While the NAEP itself is a national assessment, having key administrative or R&D functions managed from the nation's capital can streamline interactions with federal policymakers and stakeholders who are often based in or frequently visit D.C.

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: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

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

Address: 2510 N DODGE ST, IOWA CITY, IA, 01

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $174,566,049

Exercised Options: $141,092,305

Current Obligation: $32,549,775

Contract Characteristics

Multi-Year Contract: Yes

Timeline