Department of Education's $27.5M NAEP Strategic Planning Contract with ETS Awarded via Full and Open Competition

Contract Overview

Contract Amount: $27,538,824 ($27.5M)

Contractor: Educational Testing Service

Awarding Agency: Department of Education

Start Date: 2013-03-07

End Date: 2019-07-31

Contract Duration: 2,337 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: "CRITICAL FUNCTIONS" IGF::CT::IGF SUPPORTS THE NATIONAL CENTER FOR EDUCATION STATISTICS (NCES) IN STRATEGIC AND OPERATIONAL PLANNING ACTIVITIES AIMED AT ENSURING THAT NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS (NAEP) PROGRAM OBJECTIVES AND GENERAL ACTIVITIES ARE ALIGNED WITH NAEPS FOCUS ON IDENTIFIED MAJOR ISSUES, AND WITH MAJOR SHIFTS IN THE LARGE-SCALE ASSESSMENT ENVIRONMENT. THE CONTRACT SHALL PROVIDE CONTRACT STAFF AND CONSULTANTS WITH PROVEN EXPERIENCE DEVELOPING AND IMPLEMENTING VARIOUS INDUSTRY-RECOGNIZED MODELS OF STRATEGIC PLANNING. IN SUPPORT OF OPERATIONAL PLANNING, THE CONTRACTOR SHALL LEAD THE ALLIANCE IN MAKING RECOMMENDATIONS TO NCES FOR ENSURING THAT NAEPS PROGRAM OBJECTIVES, AND GENERAL ACTIVITIES ARE ALIGNED WITH NAEPS OVERALL GOALS, AND MAJOR RELEVANT SHIFTS IN THE LARGE-SCALE ASSESSMENT ENVIRONMENT. THE CONTRACTOR THEREFORE, MUST MAINTAIN AN IN-DEPTH UNDERSTANDING OF THE TECHNOLOGICAL, EDUCATIONAL, POLICY, AND LEGISLATIVE CONTEXTS OF NAEP.

Place of Performance

Location: PRINCETON, MERCER County, NEW JERSEY, 08540

State: New Jersey Government Spending

Plain-Language Summary

Department of Education obligated $27.5 million to EDUCATIONAL TESTING SERVICE for work described as: "CRITICAL FUNCTIONS" IGF::CT::IGF SUPPORTS THE NATIONAL CENTER FOR EDUCATION STATISTICS (NCES) IN STRATEGIC AND OPERATIONAL PLANNING ACTIVITIES AIMED AT ENSURING THAT NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS (NAEP) PROGRAM OBJECTIVES AND GENERAL ACTIVITIES ARE ALIGNED WITH NAE… Key points: 1. The contract supports strategic and operational planning for the National Assessment of Educational Progress (NAEP). 2. Educational Testing Service (ETS) is the sole contractor, with a contract value of $27.5 million. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The contract duration was 2337 days, ending in July 2019.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. The total award value of $27.5M over nearly 6.5 years suggests a moderate annual spend.

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. However, the specific pricing structure (Cost Plus Award Fee) requires careful monitoring to ensure cost-effectiveness.

Taxpayer Impact: Taxpayer funds were used for strategic planning services to improve educational assessments, aiming for better alignment with national educational goals.

Public Impact

Supports critical national education data collection and analysis through NAEP. Aims to improve the strategic direction and operational efficiency of a key educational assessment program. The insights gained could influence educational policy and resource allocation at federal and state levels. Contractor expertise in strategic planning models is leveraged for program improvement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can incentivize higher spending.
Long contract duration may reduce flexibility for evolving needs.

Positive Signals

Supports a critical national education program (NAEP).
Awarded through full and open competition.
Focus on strategic alignment and operational planning.

Sector Analysis

This contract falls under Research and Development in the Social Sciences and Humanities (NAICS 541720). Spending in this sector often focuses on data analysis, program evaluation, and policy development, with benchmarks varying widely based on project scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses and does not specify any small business participation. Therefore, the impact on small businesses is likely minimal or unaddressed by this specific award.

Oversight & Accountability

The contract was awarded by the Department of Education, which has oversight responsibilities. The Cost Plus Award Fee structure necessitates diligent oversight to ensure performance and cost control.

Related Government Programs

Research and Development in the Social Sciences and Humanities
Department of Education Contracting
Department of Education Programs

Risk Flags

Cost Plus Award Fee contract type.
Long contract duration (over 6 years).
Lack of specific performance outcome data in the provided information.
Potential for contractor lock-in due to specialized knowledge.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $27.5 million to EDUCATIONAL TESTING SERVICE. "CRITICAL FUNCTIONS" IGF::CT::IGF SUPPORTS THE NATIONAL CENTER FOR EDUCATION STATISTICS (NCES) IN STRATEGIC AND OPERATIONAL PLANNING ACTIVITIES AIMED AT ENSURING THAT NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS (NAEP) PROGRAM OBJECTIVES AND GENERAL ACTIVITIES ARE ALIGNED WITH NAEPS FOCUS ON IDENTIFIED MAJOR ISSUES, AND WITH MAJOR SHIFTS IN THE LARGE-SCALE ASSESSMENT ENVIRONMENT. THE CONTRACT SHALL PROVIDE CONTRACT STAFF AND CONSULTANTS WITH PROVEN EXPERIENCE DEVELOPING AND IMPLEMENTING VARIOUS

Who is the contractor on this award?

The obligated recipient is EDUCATIONAL TESTING SERVICE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2013-03-07. End: 2019-07-31.

What was the specific performance criteria used to determine award fees for ETS, and how did these criteria align with the strategic goals of NAEP?

The contract details do not specify the exact performance criteria for the award fee. Typically, for a Cost Plus Award Fee contract, these criteria would be tied to measurable objectives related to the quality of strategic plans, the effectiveness of recommendations, and adherence to timelines. These would need to be carefully defined by the Department of Education to ensure they directly supported NAEP's mission and fostered alignment with identified major issues and shifts in the assessment environment.

Given the long duration and cost-plus nature, what mechanisms were in place to mitigate potential cost overruns and ensure value for money?

While the contract type (Cost Plus Award Fee) inherently carries some risk of cost escalation, the 'full and open competition' award method suggests initial price competitiveness. Robust oversight by the Department of Education, including regular reviews of expenditures and performance against defined award fee criteria, would be crucial. The 'award fee' component itself, if structured correctly, incentivizes efficiency and quality, acting as a control mechanism against excessive costs if performance targets are challenging but achievable.

How effectively did the contractor's strategic planning support translate into tangible improvements in NAEP's alignment with educational shifts and major issues?

The provided data does not contain information on the tangible outcomes or effectiveness of the strategic planning services rendered. To assess this, one would need to review post-contract evaluations, program performance reports from NCES, or analyses of NAEP's strategic evolution during the contract period. Evidence of improved program alignment, successful adaptation to assessment environment shifts, or enhanced focus on identified major issues would be necessary to determine effectiveness.

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-0021

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 666 ROSEDALE RD STOP 85 D, PRINCETON, NJ, 08541

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

Financial Breakdown

Contract Ceiling: $30,087,374

Exercised Options: $29,821,159

Current Obligation: $27,538,824

Actual Outlays: $445,338

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $3,614,837

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline