Department of Education's $27M contract for adult competency assessment data collection awarded to Westat, Inc

Contract Overview

Contract Amount: $27,040,219 ($27.0M)

Contractor: Westat, Inc.

Awarding Agency: Department of Education

Start Date: 2012-09-27

End Date: 2022-09-26

Contract Duration: 3,651 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF "OTHER FUNCTIONS"- PROGRAM FOR INTERNATIONAL ASSESSMENT OF ADULT COMPETENCIES (PIAAC)- NATIONAL DATA COLLECTION SUPPLEMENT.

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 $27.0 million to WESTAT, INC. for work described as: IGF::OT::IGF "OTHER FUNCTIONS"- PROGRAM FOR INTERNATIONAL ASSESSMENT OF ADULT COMPETENCIES (PIAAC)- NATIONAL DATA COLLECTION SUPPLEMENT. Key points: 1. Contract awarded for a large-scale national data collection effort. 2. The contract duration is over 10 years, indicating a long-term program need. 3. Awarded through full and open competition, suggesting a robust bidding process. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 5. The primary purpose is research and development in social sciences and humanities. 6. The contractor, Westat, Inc., has experience in large-scale data collection and analysis.

Value Assessment

Rating: fair

The contract value of $27 million over 10 years for a national data collection supplement for the Program for International Assessment of Adult Competencies (PIAAC) appears reasonable given the scope. However, without specific benchmarks for similar large-scale social science data collection efforts, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a fixed fee, which can lead to cost overruns if not managed carefully. Benchmarking against other large federal surveys or assessments would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This process is designed to foster price discovery and ensure the government receives competitive offers. The fact that it was competed openly suggests that there were likely several qualified contractors capable of performing this complex data collection and analysis work, which is generally positive for achieving a fair price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through a competitive bidding process, ensuring that the government is not overpaying for services and that resources are used efficiently.

Public Impact

The primary beneficiaries are researchers, policymakers, and educators who will use the data to understand adult competencies in the U.S. The services delivered include the national data collection supplement for the PIAAC, crucial for international comparisons. The geographic impact is national, covering the entire United States. Workforce implications include employment for data collectors, researchers, analysts, and administrative staff involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain within reasonable bounds and the fixed fee remains appropriate.
Long contract durations (over 10 years) can present challenges in adapting to evolving research methodologies or technological changes without costly modifications.
The complexity of national data collection can introduce risks related to data quality, participant recruitment, and timely completion.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The contractor, Westat, Inc., is a reputable firm with extensive experience in large-scale surveys and data collection, indicating a lower risk of execution failure.
The contract supports a critical national assessment that provides valuable insights into the U.S. workforce and educational landscape.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on social sciences and humanities. The North American Industry Classification System (NAICS) code 541720, Research and Development in the Social Sciences and Humanities, encompasses organizations primarily engaged in conducting research and experimental development in social sciences and humanities. The market for such services is driven by government funding for policy-relevant research and academic institutions. Comparable spending benchmarks would involve looking at other large-scale federal surveys and data collection initiatives in education, labor, and social welfare.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the primary award went to Westat, Inc., a large research firm, there is potential for subcontracting opportunities for smaller businesses specializing in specific aspects of data collection, such as regional fieldwork or specialized data processing. The impact on the small business ecosystem would depend on the extent to which Westat utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers. Given the nature of the work, there may also be programmatic oversight from relevant offices within the Department responsible for education statistics and international assessments. Transparency is generally maintained through contract award databases and public reporting of research findings. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Program for International Assessment of Adult Competencies (PIAAC)
National Assessment of Educational Progress (NAEP)
American Community Survey (ACS)
Current Population Survey (CPS)

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of costs.
Long contract duration may pose risks of obsolescence or changing requirements.
Complexity of national data collection can lead to execution challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $27.0 million to WESTAT, INC.. IGF::OT::IGF "OTHER FUNCTIONS"- PROGRAM FOR INTERNATIONAL ASSESSMENT OF ADULT COMPETENCIES (PIAAC)- NATIONAL DATA COLLECTION SUPPLEMENT.

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 $27.0 million.

What is the period of performance?

Start: 2012-09-27. End: 2022-09-26.

What is Westat, Inc.'s track record with large federal data collection contracts?

Westat, Inc. has a significant track record of successfully managing and executing large-scale federal data collection contracts. They are frequently awarded contracts by agencies such as the National Center for Education Statistics (NCES), the Bureau of Labor Statistics (BLS), and the National Science Foundation (NSF). Their expertise spans survey design, sampling, data collection (including in-person, telephone, and web-based methods), data processing, and statistical analysis. For example, Westat has been a key contractor for the National Assessment of Educational Progress (NAEP) and has conducted numerous other complex surveys. This extensive experience suggests a high likelihood of successful performance on the PIAAC data collection supplement.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other award types for similar R&D services?

The Cost Plus Fixed Fee (CPFF) structure is common for research and development contracts where the scope of work may evolve or is not precisely defined at the outset, making fixed-price contracts difficult. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of the final cost, and cost-reimbursement contracts (like Cost Plus Incentive Fee or Cost Plus Award Fee), which offer more flexibility in adjusting the fee based on performance or cost targets. While CPFF provides flexibility, it places a greater burden on the government to monitor costs to prevent overruns, as the contractor has less direct financial incentive to control costs compared to a fixed-price contract. For R&D, it balances the need for flexibility with a defined profit margin.

What are the primary risks associated with a 10-year contract for national data collection?

A 10-year contract for national data collection presents several key risks. Firstly, the cost of conducting the research could escalate significantly over such a long period due to inflation, changes in labor costs, or unforeseen logistical challenges. Secondly, the research methodologies and technologies used for data collection might become outdated, requiring costly modifications or potentially compromising data quality if not updated. Thirdly, participant recruitment and retention can become more challenging over time, potentially impacting sample representativeness. Finally, shifts in government priorities or funding availability could lead to contract modifications, scope reductions, or even early termination, creating uncertainty for both the contractor and the program's long-term objectives.

How does the $27 million total award compare to historical spending on similar federal R&D data collection efforts?

The $27 million award for the PIAAC national data collection supplement over approximately 10 years averages to about $2.7 million per year. This figure needs to be contextualized within the broader landscape of federal R&D and large-scale survey operations. For instance, major longitudinal studies or recurring national surveys conducted by agencies like the National Center for Education Statistics (NCES) or the Census Bureau can cost tens of millions of dollars annually. The PIAAC supplement, while significant, appears to be a substantial but not exceptionally large component within the realm of major federal data collection initiatives. A direct comparison would require identifying contracts with identical scope, methodology, and duration, which can be challenging due to the unique nature of international assessments.

What are the potential implications of 'full and open competition' on the quality of services delivered?

Full and open competition generally implies that the government solicits proposals from all responsible sources and that the contract is awarded to the responsible offeror whose proposal, conforming to the solicitation, is most advantageous to the government, price and other factors considered. This process encourages a wider pool of potential contractors to compete, potentially leading to innovative approaches and higher quality services as firms vie for the award. By allowing any qualified entity to bid, the government increases its chances of finding the best possible solution and contractor for the job. This competitive pressure can incentivize contractors to propose robust methodologies, experienced personnel, and efficient project management plans to win the contract, ultimately benefiting the quality of the delivered services.

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: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ED-IES-12-R-0078

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1600 RESEARCH BLVD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $48,362,324

Exercised Options: $27,040,219

Current Obligation: $27,040,219

Actual Outlays: $2,505,985

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $13,591,397

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline