Department of Education Awards $12.8M to Education Development Center for Higher Education Center
Contract Overview
Contract Amount: $12,835,336 ($12.8M)
Contractor: Education Development Center, Inc.
Awarding Agency: Department of Education
Start Date: 2004-09-24
End Date: 2010-02-26
Contract Duration: 1,981 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Higher Education
Official Description: HIGHER EDUCATION CENTER
Place of Performance
Location: NEWTON, MIDDLESEX County, MASSACHUSETTS, 02458
Plain-Language Summary
Department of Education obligated $12.8 million to EDUCATION DEVELOPMENT CENTER, INC. for work described as: HIGHER EDUCATION CENTER Key points: 1. The contract value is $12.8 million, awarded to Education Development Center, Inc. 2. The contract was awarded under full and open competition. 3. The primary risk appears to be the cost-plus award fee structure, which can incentivize spending. 4. The sector is higher education, with a NAICS code of 611310.
Value Assessment
Rating: fair
The contract uses a Cost Plus Award Fee (CPAF) structure. This type of contract can lead to higher costs if not closely monitored, as it reimburses costs plus a fee that is tied to performance targets. Without specific performance data, it's difficult to assess if the fee structure resulted in optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, theoretically leading to competitive pricing. However, the CPAF structure might mitigate some of the cost savings typically expected from full competition.
Taxpayer Impact: Taxpayer funds were used for this contract. The CPAF structure necessitates careful oversight to ensure funds are used efficiently and effectively towards the stated goals of the Higher Education Center.
Public Impact
Supports higher education initiatives through the Department of Education. The contract duration is significant, spanning from 2004 to 2010. Funding was allocated to a specific center focused on educational development. The award went to a single entity, Education Development Center, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to cost overruns.
- Long contract duration requires sustained oversight.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Supports a critical sector: higher education.
Sector Analysis
This contract falls within the higher education sector, specifically for Colleges, Universities, and Professional Schools (NAICS 611310). Spending in this area typically focuses on research grants, educational program development, and administrative support for academic institutions. The contract value of $12.8 million is moderate for a multi-year federal contract in this sector.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false). Therefore, small businesses likely did not have a direct opportunity to compete for this specific award, though they may be involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Education, implying internal oversight mechanisms. However, the CPAF structure and long duration necessitate robust monitoring by the agency to ensure accountability and effective use of funds. Public reporting on performance would enhance transparency.
Related Government Programs
- Colleges, Universities, and Professional Schools
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Cost Plus Award Fee structure.
- Long contract duration (2004-2010).
- Lack of detailed performance outcome data.
- No specific small business set-aside.
Tags
colleges-universities-and-professional-s, department-of-education, ma, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $12.8 million to EDUCATION DEVELOPMENT CENTER, INC.. HIGHER EDUCATION CENTER
Who is the contractor on this award?
The obligated recipient is EDUCATION DEVELOPMENT CENTER, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2004-09-24. End: 2010-02-26.
What specific outcomes or deliverables were achieved by the Higher Education Center under this contract, and how did they align with the Department of Education's strategic goals?
The provided data does not detail the specific outcomes or deliverables of the Higher Education Center. To assess value, one would need to review performance reports, program evaluations, and alignment with the Department of Education's strategic objectives for higher education support. Without this information, it's impossible to definitively state the achieved value beyond the financial outlay.
Given the Cost Plus Award Fee structure, what were the established performance metrics, and how were they used to determine the award fee, thereby managing risk for the government?
The data does not specify the performance metrics used for the award fee. In a CPAF contract, these metrics are crucial for managing risk and incentivizing desired performance. A thorough review would require access to the contract's Statement of Work and the documented award fee determinations to understand how performance was measured and how the fee was calculated, ensuring alignment with government objectives.
How effective was the full and open competition in ensuring competitive pricing, considering the Cost Plus Award Fee structure was utilized?
While full and open competition theoretically promotes competitive pricing, the CPAF structure introduces complexities. It reimburses costs plus a fee tied to performance. The effectiveness in ensuring competitive pricing would depend on the baseline cost estimates, the rigor of the evaluation process, and the specific award fee criteria. A detailed cost analysis and comparison with similar contracts would be needed to fully assess pricing effectiveness.
Industry Classification
NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 55 CHAPEL ST, NEWTON, MA, 04
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,945,601
Exercised Options: $12,835,336
Current Obligation: $12,835,336
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2004-09-24
Current End Date: 2010-02-26
Potential End Date: 2010-05-31 00:00:00
Last Modified: 2010-09-24
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