Department of Education's $13.7M OII Research Support contract awarded to WESTED shows fair value with 5 bidders

Contract Overview

Contract Amount: $13,764,798 ($13.8M)

Contractor: Wested

Awarding Agency: Department of Education

Start Date: 2005-09-09

End Date: 2011-09-29

Contract Duration: 2,211 days

Daily Burn Rate: $6.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: OII RESEARCH SUPPORT AND DEVELOPMENT ASSISTANCE

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94107

State: California Government Spending

Plain-Language Summary

Department of Education obligated $13.8 million to WESTED for work described as: OII RESEARCH SUPPORT AND DEVELOPMENT ASSISTANCE Key points: 1. The contract demonstrates a commitment to research and development assistance, aligning with the agency's mission. 2. Competition was robust with five bidders, suggesting a healthy market for these consulting services. 3. The fixed-price incentive contract type aims to control costs while encouraging contractor performance. 4. The duration of the contract (over 6 years) indicates a long-term need for these services. 5. Geographic impact is focused on California, suggesting localized research support. 6. The contract was awarded as a competitive delivery order, indicating a structured procurement process.

Value Assessment

Rating: good

The contract's value of approximately $13.7 million over six years for research support and development assistance appears reasonable given the scope. Benchmarking against similar large-scale research contracts is challenging without more specific service details, but the competitive nature of the award suggests pricing was scrutinized. The fixed-price incentive structure also indicates an effort to ensure value for money by linking contractor profit to performance outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive delivery order process, with five distinct bidders vying for the opportunity. The presence of multiple bidders indicates that the solicitation was widely advertised and that the market has sufficient capacity to respond to such requirements. This level of competition is generally favorable for price discovery and ensures that the agency receives proposals from a range of qualified entities.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final award price and encouraged innovative solutions, maximizing the return on investment for public funds.

Public Impact

Educational researchers and institutions in California are the primary beneficiaries, receiving support for their development and research initiatives. The contract facilitates the delivery of critical research support services, potentially leading to advancements in educational practices and policies. The geographic impact is concentrated in California, suggesting a focus on regional educational needs and development. Workforce implications include potential employment opportunities for researchers, analysts, and support staff within WESTED and its sub-contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost overruns if not managed effectively.
Reliance on a single contractor for an extended period might limit flexibility to adapt to evolving research needs.
The specific nature of 'research support' can be broad, requiring clear performance metrics to ensure accountability.

Positive Signals

Competitive award process suggests a fair evaluation of capabilities and pricing.
Fixed-price incentive contract type aligns contractor and agency goals for cost efficiency and performance.
The contract supports critical research and development, contributing to educational advancement.

Sector Analysis

This contract falls within the Management Consulting Services sector, specifically focusing on research support and development assistance. The federal market for such services is substantial, encompassing a wide range of analytical, advisory, and programmatic support functions. The Department of Education's spending in this area is crucial for advancing educational research and policy. Comparable spending benchmarks would typically involve analyzing other large-scale research grants and contracts awarded by federal agencies for similar objectives.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, WESTED, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this data snippet. The absence of a small business set-aside suggests that the competition was open to all qualified offerors, and the focus was on best value rather than specific small business participation targets.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers. The fixed-price incentive structure includes performance metrics that would be monitored to ensure accountability. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Department of Education Research Grants
Educational Research and Development Programs
Management and Consulting Services Contracts
Federal Research Support Contracts

Risk Flags

Long contract duration may present challenges in adapting to evolving needs.
Performance metrics for 'research support' need clear definition and monitoring.
Potential for scope creep in broad service categories.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $13.8 million to WESTED. OII RESEARCH SUPPORT AND DEVELOPMENT ASSISTANCE

Who is the contractor on this award?

The obligated recipient is WESTED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2005-09-09. End: 2011-09-29.

What is the track record of WESTED in delivering similar research support services to federal agencies?

Without specific contract history data for WESTED beyond this single award, a comprehensive assessment of their track record is limited. However, the award of this significant $13.7 million contract by the Department of Education suggests they possess the necessary qualifications and experience to handle large-scale research support and development assistance. Further investigation would involve reviewing other federal contracts awarded to WESTED, their performance ratings on those contracts (if available), and any publicly documented project outcomes. A positive performance history on similar, complex research initiatives would bolster confidence in their ability to successfully execute this current contract.

How does the per-unit cost or value of this contract compare to similar research support contracts?

Directly comparing the per-unit cost is difficult without granular data on the specific services provided and their associated units (e.g., hours, reports, analyses). The total contract value of $13.7 million over approximately 2211 days (roughly 6 years) averages around $6,199 per day. This daily rate needs to be contextualized by the complexity and nature of the research support. Benchmarking against other large federal research support contracts would require identifying contracts with similar scopes of work, agencies, and service providers. The competitive nature of this award, with five bidders, suggests that the pricing was likely market-driven and considered competitive at the time of award.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, where the definition of 'research support and development assistance' might expand beyond initial intentions, leading to cost overruns. Another risk is the contractor's ability to consistently deliver high-quality research outcomes over the contract's long duration. Mitigation strategies likely include robust project management by the Department of Education, clearly defined performance work statements, regular progress reviews, and the fixed-price incentive contract structure itself, which incentivizes the contractor to manage costs and meet performance targets. The agency's oversight of milestones and deliverables is crucial for managing these risks.

How effective has the Department of Education been in leveraging contracts like this to achieve its research and development goals?

Assessing the overall effectiveness requires evaluating the outcomes and impact of the research supported by this contract. This would involve examining reports, studies, or policy recommendations that resulted from WESTED's work and determining if they contributed to the Department's strategic objectives. The contract's success hinges on the quality of research produced and its subsequent application. While the contract itself represents an investment in R&D, its true effectiveness is measured by the tangible advancements and insights gained, which are often long-term and require specific program evaluations to quantify.

What are the historical spending patterns for similar research support services within the Department of Education?

Analyzing historical spending patterns for similar services within the Department of Education would involve examining past contracts for research support, development assistance, and management consulting services. This would reveal trends in contract values, durations, award types (competitive vs. sole-source), and the primary contractors utilized. Understanding these patterns helps in assessing whether the $13.7 million award to WESTED is consistent with historical investments, represents an increase or decrease in spending, and whether the agency is diversifying its support base or relying on incumbent contractors. Such analysis provides context for the current contract's significance and resource allocation.

What is the significance of the 'Other Management Consulting Services' NAICS code (541618) in the context of federal spending?

The NAICS code 541618, 'Other Management Consulting Services,' is a broad category encompassing a wide array of advisory and assistance services provided to government agencies. This includes strategic planning, organizational improvement, research support, and program management. Federal spending under this code is substantial, reflecting the government's reliance on external expertise to navigate complex policy challenges, improve operational efficiency, and conduct specialized research. Contracts classified under this code can vary significantly in scope and value, from small, targeted studies to large, multi-year support initiatives like the one awarded to WESTED.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 730 HARRISON ST, SAN FRANCISCO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,783,959

Exercised Options: $13,783,959

Current Obligation: $13,764,798

Parent Contract

Parent Award PIID: EDED04CO0060

IDV Type: IDC

Timeline