Department of Education awards $81.8M contract for NAEP test booklet printing and scoring services

Contract Overview

Contract Amount: $81,806,316 ($81.8M)

Contractor: NCS Pearson Inc

Awarding Agency: Department of Education

Start Date: 2013-03-07

End Date: 2019-07-31

Contract Duration: 2,337 days

Daily Burn Rate: $35.0K/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 THE CONTRACTOR PRINTS, DISTRIBUTES AND PROCESSES ALL OF THE PAPER AND PENCIL TEST BOOKLETS AND TEST ANCILLARY MATERIALS FOR THE OPERATIONAL ASSESSMENTS, PILOT TESTS, AND SPECIAL STUDIES REQUIRED BY THE NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS (NAEP) FOR THE 2013-2017 ASSESSMENT CYCLES. THE CONTRACTOR PROCESSES ALL PAPER AND PENCIL AND COMPUTER-BASED ASSESSMENTS AND BACKGROUND QUESTIONNAIRES AND SCORES ALL SHORT AND EXTENDED CONSTRUCTED RESPONSE ITEMS. THE CONTRACTOR SHALL PURSUE CREATIVE AND INNOVATIVE STRATEGIES THAT ALLOW THEM TO TAKE ADVANTAGE OF RECENT TECHNOLOGICAL ADVANCES THAT COULD STREAMLINE PROCESSES, IMPROVE QUALITY AND REDUCE THE POTENTIAL FOR ERROR. FOR EXAMPLE, DUE TO CHANGES IN PRINTING TECHNOLOGY, TEST BOOKLETS MAY BE SPIRALED AS THEY ARE PRINTED, A MORE EFFICIENT APPROACH TO OVERALL PACKAGING PROCESS/PROCEDURES.

Place of Performance

Location: IOWA CITY, JOHNSON County, IOWA, 52245

State: Iowa Government Spending

Plain-Language Summary

Department of Education obligated $81.8 million to NCS PEARSON INC for work described as: "CRITICAL FUNCTIONS" IGF::CT::IGF THE CONTRACTOR PRINTS, DISTRIBUTES AND PROCESSES ALL OF THE PAPER AND PENCIL TEST BOOKLETS AND TEST ANCILLARY MATERIALS FOR THE OPERATIONAL ASSESSMENTS, PILOT TESTS, AND SPECIAL STUDIES REQUIRED BY THE NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS … Key points: 1. Contract focuses on critical functions for National Assessment of Educational Progress (NAEP) test administration. 2. Services include printing, distribution, processing, and scoring of paper and computer-based assessments. 3. Contract duration spans from 2013 to 2019, covering multiple assessment cycles. 4. Emphasis on contractor innovation to leverage technological advances for process streamlining and error reduction. 5. Awarded through full and open competition, suggesting a competitive bidding process. 6. The contract type is Cost Plus Award Fee, incentivizing performance. 7. NCS Pearson Inc. is the contractor for these essential educational assessment services.

Value Assessment

Rating: good

The contract value of $81.8 million over approximately six years for comprehensive test administration services appears reasonable given the scope. Benchmarking against similar large-scale educational assessment contracts would provide a more precise value-for-money assessment. The Cost Plus Award Fee structure allows for flexibility in costs while incentivizing performance, which can be beneficial for complex service contracts. However, without detailed cost breakdowns and performance metrics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and service quality. The number of bidders is not specified, but the open competition suggests a healthy market for these services. The agency's approach to competition is a positive indicator for price discovery and efficient use of taxpayer funds.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially saving taxpayer money compared to sole-source or limited competition awards. It ensures that the government explores the market broadly to secure the best value.

Public Impact

Students across the nation benefit from standardized and reliable assessment services provided through this contract. Educational institutions and policymakers receive crucial data for evaluating educational progress and informing policy decisions. The contract supports the operational integrity of the NAEP, a key indicator of national educational performance. Workforce implications include jobs in printing, logistics, scoring, and administrative support for the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if not managed diligently.
Reliance on a single contractor for critical, time-sensitive assessment materials could pose a risk if performance falters.
Ensuring continuous innovation and adaptation to new technologies by the contractor requires ongoing oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potential for value.
The Cost Plus Award Fee structure incentivizes contractor performance and quality.
Contract requires contractor to pursue innovative strategies, potentially leading to efficiencies and improved services.

Sector Analysis

This contract falls within the Research and Development in the Social Sciences and Humanities sector, specifically supporting large-scale educational assessments. The market for educational testing and assessment services is significant, involving companies that specialize in test development, administration, scoring, and data analysis. This contract represents a substantial portion of federal spending dedicated to evaluating educational outcomes through the NAEP program, a cornerstone of national education statistics.

Small Business Impact

Information regarding small business participation, subcontracting plans, or set-asides is not explicitly detailed in the provided data. As this is a large, complex service contract, it is possible that subcontracting opportunities exist for specialized services. However, without specific data on small business involvement, the direct impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if small businesses are engaged in supporting these critical assessment functions.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Education's contracting officers and program managers. The Cost Plus Award Fee structure implies performance metrics and evaluation criteria that are subject to review. Transparency is generally maintained through contract awards databases and reporting requirements. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

National Assessment of Educational Progress (NAEP)
Federal Education Statistics
Educational Testing Services
Government Printing and Distribution Contracts

Risk Flags

Contract duration exceeds typical shorter-term service agreements.
Cost Plus Award Fee structure requires careful performance monitoring.
Reliance on contractor for critical, time-sensitive assessment operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $81.8 million to NCS PEARSON INC. "CRITICAL FUNCTIONS" IGF::CT::IGF THE CONTRACTOR PRINTS, DISTRIBUTES AND PROCESSES ALL OF THE PAPER AND PENCIL TEST BOOKLETS AND TEST ANCILLARY MATERIALS FOR THE OPERATIONAL ASSESSMENTS, PILOT TESTS, AND SPECIAL STUDIES REQUIRED BY THE NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS (NAEP) FOR THE 2013-2017 ASSESSMENT CYCLES. THE CONTRACTOR PROCESSES ALL PAPER AND PENCIL AND COMPUTER-BASED ASSESSMENTS AND BACKGROUND QUESTIONNAIRES AND SCORES ALL SHORT AND EXTENDED CONSTRUCTED RESPONSE ITEMS. THE CO

Who is the contractor on this award?

The obligated recipient is NCS PEARSON INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $81.8 million.

What is the period of performance?

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

What is the track record of NCS Pearson Inc. in managing large-scale federal assessment contracts?

NCS Pearson Inc. has a significant history of providing assessment services to various government agencies, including the Department of Education for the NAEP program. Their experience encompasses test development, printing, administration, scoring, and data analysis for large-scale, high-stakes assessments. This extensive background suggests a strong capability to handle the complex logistical and technical requirements of the NAEP contract. However, like any large contractor, their performance history may include both successes and challenges that warrant review in the context of specific contract deliverables and any past performance evaluations or disputes.

How does the cost of this contract compare to similar large-scale educational assessment contracts?

Benchmarking the $81.8 million cost against similar large-scale educational assessment contracts is challenging without access to detailed cost breakdowns and the specific scope of services for comparable contracts. However, considering the duration (2013-2019) and the comprehensive nature of services—including printing, distribution, processing, and scoring for national assessments—the cost appears to be within a reasonable range for such extensive operations. Factors like the number of students assessed, the complexity of the tests, and the required technological infrastructure significantly influence costs. A detailed comparison would require analyzing contracts with similar student populations, assessment types, and service inclusions.

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

Primary risks include potential delays in printing and distribution impacting assessment schedules, errors in scoring leading to inaccurate data, and contractor underperformance in innovation or quality. Mitigation strategies likely involve robust contract management by the Department of Education, including performance monitoring, regular reviews, and clear communication channels. The Cost Plus Award Fee structure itself acts as a mitigation tool by incentivizing the contractor to meet or exceed performance targets. Furthermore, the requirement for the contractor to pursue innovative strategies encourages proactive problem-solving and adaptation to technological changes, which can preemptively address certain risks.

How effective has the contractor been in driving innovation and streamlining processes as required?

The contract explicitly requires the contractor to 'pursue creative and innovative strategies that allow them to take advantage of recent technological advances that could streamline processes, improve quality and reduce the potential for error.' Assessing the effectiveness of this requires examining specific innovations implemented by NCS Pearson Inc. during the contract period. Evidence of successful streamlining could include reduced turnaround times for scoring, improved accuracy rates, or the adoption of new technologies that enhance the assessment experience or data processing. Without specific reports or case studies detailing these innovations, a definitive assessment of effectiveness is difficult, but the contractual mandate highlights the agency's focus on modernization.

What are the historical spending patterns for NAEP assessment services, and how does this contract fit?

Historical spending on NAEP assessment services has been substantial, reflecting the program's national scope and importance. This $81.8 million contract (2013-2019) represents a significant investment in the operational aspects of NAEP for those specific assessment cycles. Previous and subsequent contracts for NAEP services would likely show similar or varying levels of expenditure depending on the assessment years, the mix of paper-based versus computer-based testing, and evolving service requirements. Understanding these patterns helps contextualize the value and scale of this particular award within the broader, long-term federal commitment to educational measurement.

What are the implications of the Cost Plus Award Fee (CPAF) contract type for cost control and performance?

The Cost Plus Award Fee (CPAF) structure allows the contractor to recover allowable costs plus a fixed fee, with a portion of that fee being an award amount contingent upon meeting or exceeding pre-determined performance objectives. This incentivizes the contractor to perform well, as achieving higher performance targets leads to a larger award fee. For cost control, the 'cost-plus' aspect means the government pays the actual costs incurred, which can be less predictable than fixed-price contracts. However, the award fee mechanism encourages efficiency and quality, potentially leading to better overall value and outcomes than a simple cost-plus contract. Effective oversight is crucial to ensure costs are reasonable and award criteria are objectively assessed.

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

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: GED Testing Service LLC (UEI: 210227468)

Address: 2510 N DODGE ST, IOWA CITY, IA, 52245

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

Financial Breakdown

Contract Ceiling: $109,307,335

Exercised Options: $109,307,335

Current Obligation: $81,806,316

Actual Outlays: $1,135,944

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline