Department of Education's $24.8M contract for educational support services awarded to Marzano Resources LLC
Contract Overview
Contract Amount: $24,816,882 ($24.8M)
Contractor: Marzano Resources LLC
Awarding Agency: Department of Education
Start Date: 2012-01-03
End Date: 2017-01-02
Contract Duration: 1,826 days
Daily Burn Rate: $13.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 20
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REGIONAL EDUCATIONAL LABORATORIES 2012-2017, REL CENTRAL. THE CONTRACTOR PROVIDES FOR THE REGION TECHNICAL ASSISTANCE, RESEARCH, AND OTHER EDUCATIONAL ACTIVITIES.
Place of Performance
Location: CENTENNIAL, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Education obligated $24.8 million to MARZANO RESOURCES LLC for work described as: REGIONAL EDUCATIONAL LABORATORIES 2012-2017, REL CENTRAL. THE CONTRACTOR PROVIDES FOR THE REGION TECHNICAL ASSISTANCE, RESEARCH, AND OTHER EDUCATIONAL ACTIVITIES. Key points: 1. The contract focused on providing technical assistance and research, aligning with the agency's educational mission. 2. A firm-fixed-price contract type suggests predictable costs for the government. 3. The duration of 1826 days indicates a long-term need for these services. 4. The contract was awarded through full and open competition, suggesting a robust bidding process. 5. The contractor, Marzano Resources LLC, was selected for this significant educational support role. 6. The contract falls under the Educational Support Services NAICS code, indicating a specialized service area.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The total award amount of $24.8 million over five years averages to approximately $4.96 million per year. This figure needs to be assessed against the scope and impact of the technical assistance and research provided. Without detailed performance data, it's difficult to definitively state if this represents excellent value for money, but the firm-fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 20 bids suggests a healthy level of interest and competition for this contract. This broad competition is generally favorable for price discovery and ensures the government has a wide range of options to choose from, potentially leading to better pricing and service quality.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring that the most capable and cost-effective provider is selected.
Public Impact
Educational institutions and professionals within the designated region benefit from technical assistance and research. The services delivered aim to improve educational practices and outcomes. The geographic impact is focused on the region served by REL Central, likely encompassing multiple states. The contract supports the workforce involved in delivering educational services and research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess the effectiveness and impact of the educational support services.
- The broad scope of 'technical assistance, research, and other educational activities' could lead to scope creep if not managed tightly.
- Reliance on a single contractor for a significant period (5 years) may limit opportunities for innovation or cost savings through re-competition.
Positive Signals
- The contract was awarded through full and open competition, indicating a competitive bidding process.
- The firm-fixed-price contract type provides cost certainty for the Department of Education.
- The long duration suggests a sustained commitment to addressing educational needs in the region.
Sector Analysis
This contract falls within the Educational Support Services sector, which is a niche but vital part of the broader education industry. The market for educational research and technical assistance is often served by specialized firms, think tanks, and academic institutions. The Department of Education's Regional Educational Laboratories (RELs) program aims to bridge the gap between research and practice, making contracts like this crucial for disseminating evidence-based strategies. Comparable spending benchmarks would typically be found within federal and state education budgets allocated to research, evaluation, and technical assistance initiatives.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Marzano Resources LLC, is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. This means that the direct impact on the small business ecosystem through this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers. The firm-fixed-price nature of the contract simplifies some aspects of financial oversight by establishing a set cost. Accountability measures would be tied to the performance deliverables outlined in the contract. Transparency is generally facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Regional Educational Laboratories (RELs) Program
- Educational Research and Dissemination
- Technical Assistance Providers
- Department of Education Grants and Contracts
Risk Flags
- Potential for vendor lock-in due to long contract duration.
- Lack of clearly defined performance metrics in summary data.
- Limited visibility into small business subcontracting opportunities.
Tags
education, department-of-education, technical-assistance, research, educational-support-services, firm-fixed-price, full-and-open-competition, regional-focus, long-term-contract, marzano-resources-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $24.8 million to MARZANO RESOURCES LLC. REGIONAL EDUCATIONAL LABORATORIES 2012-2017, REL CENTRAL. THE CONTRACTOR PROVIDES FOR THE REGION TECHNICAL ASSISTANCE, RESEARCH, AND OTHER EDUCATIONAL ACTIVITIES.
Who is the contractor on this award?
The obligated recipient is MARZANO RESOURCES LLC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $24.8 million.
What is the period of performance?
Start: 2012-01-03. End: 2017-01-02.
What specific performance metrics were used to evaluate Marzano Resources LLC's success under this contract?
The provided data does not include specific performance metrics or key performance indicators (KPIs) that were used to evaluate Marzano Resources LLC's success. Contracts for technical assistance and research often include metrics related to the number of workshops conducted, the reach of disseminated materials, the quality of research reports produced, and feedback from participating educators or institutions. Without access to the contract's statement of work and performance reports, a detailed assessment of their success is not possible. Future analysis would require reviewing the contract's deliverables and any associated performance evaluations or user satisfaction surveys.
How does the $24.8 million award compare to other contracts for similar educational support services?
Comparing the $24.8 million award to other contracts for similar educational support services requires access to a broader dataset of federal procurement information, specifically focusing on contracts with NAICS code 611710 (Educational Support Services) and similar service descriptions. The average annual value of this contract is approximately $4.96 million. This figure needs to be benchmarked against the scope, duration, and geographic reach of comparable contracts. For instance, other REL contracts or large-scale educational research grants awarded by the Department of Education or other federal agencies would serve as relevant comparisons. Without such comparative data, it's difficult to definitively state whether this award is high, low, or average for the services rendered.
What is the track record of Marzano Resources LLC in delivering federal educational support services?
Marzano Resources LLC has a history of providing educational services and resources. While this specific contract with the Department of Education for REL Central is a significant award, their broader track record would involve examining other contracts, grants, and partnerships they have undertaken. This includes assessing their performance on previous government contracts, their reputation within the educational research community, and the impact of their work. A comprehensive review would involve searching federal procurement databases for past awards, looking for client testimonials or case studies, and examining any publicly available evaluations of their programs or research contributions. Their involvement in the REL program suggests a recognized capacity in educational research and technical assistance.
What are the potential risks associated with a five-year contract for educational support services?
A five-year contract for educational support services carries several potential risks. Firstly, there's the risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially stifling innovation or preventing the adoption of new approaches. Secondly, the long duration might lead to complacency or a decline in service quality over time if not actively managed and monitored. Thirdly, educational needs and research priorities can evolve rapidly; a long-term contract might not be agile enough to adapt to these changes without costly modifications. Finally, there's the risk that the initial pricing or scope may not remain optimal throughout the contract period, especially if market conditions or the understanding of requirements change significantly.
How has federal spending on educational support services evolved over time, and where does this contract fit?
Federal spending on educational support services, including research and technical assistance, has generally fluctuated based on congressional appropriations and administration priorities. The Department of Education's budget, and specifically funding for initiatives like the Regional Educational Laboratories (RELs), is a key indicator. This $24.8 million contract, awarded between 2012 and 2017, represents a significant investment in a specific REL region during that period. To understand its place in the broader evolution of spending, one would need to analyze historical budgets for the REL program and similar research/technical assistance contracts. This contract likely reflects a sustained commitment to evidence-based practices and support for educators during the Obama administration's focus on education reform.
Industry Classification
NAICS: Educational Services › Educational Support Services › Educational Support Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 20
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Solution Tree, Inc. (UEI: 602531998)
Address: 9000 E NICHOLS AVE STE 112, CENTENNIAL, CO, 80112
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,816,882
Exercised Options: $24,816,882
Current Obligation: $24,816,882
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-01-03
Current End Date: 2017-01-02
Potential End Date: 2017-01-02 00:00:00
Last Modified: 2018-01-18
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