Head Start Enhancement Program contract awarded for over $21.5 million to MDRC for administration of education programs

Contract Overview

Contract Amount: $21,593,279 ($21.6M)

Contractor: Mdrc

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-24

End Date: 2015-03-31

Contract Duration: 2,745 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: HEAD START ENHANCEMENT PROGRAM

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10016, UNITED STATES OF AMERICA

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.6 million to MDRC for work described as: HEAD START ENHANCEMENT PROGRAM Key points: 1. The contract value of $21.59 million over its duration suggests a significant investment in educational program administration. 2. With 5 bidders, the competition level indicates a moderately contested market for these specialized services. 3. The contract's duration of over 7 years (2745 days) points to a long-term need for these administrative functions. 4. The award to MDRC, a known research and policy organization, suggests a focus on evidence-based program management. 5. The contract's geographic scope is New York, indicating a targeted regional impact. 6. The Cost Plus Fixed Fee (CPFF) contract type implies that costs are reimbursed, plus a fixed fee for profit, which can incentivize efficiency but requires careful oversight.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. However, the $21.59 million award over approximately 7.5 years averages to roughly $2.8 million annually. This figure needs to be assessed against the scope and scale of the Head Start Enhancement Program's administrative needs in New York. The CPFF structure requires diligent monitoring of costs to ensure they remain reasonable and that the fixed fee adequately compensates the contractor for their services without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 5 bidders participating. This level of competition is generally positive, suggesting that multiple capable organizations vied for the contract. A higher number of bidders typically leads to better price discovery and potentially more competitive pricing for the government. The selection process likely involved a thorough evaluation of technical proposals and pricing to determine the best value.

Taxpayer Impact: Full and open competition with multiple bidders generally benefits taxpayers by driving down costs and ensuring that the government secures services from the most qualified and cost-effective provider.

Public Impact

The primary beneficiaries are children and families participating in the Head Start program in New York, who will receive enhanced educational services. The contract supports the administration of education programs, likely involving program oversight, quality improvement initiatives, and data management. The geographic impact is concentrated in New York, where the Head Start Enhancement Program operates. The contract may have implications for the early childhood education workforce in New York through program implementation and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored, as the contractor is reimbursed for costs incurred.
The long duration of the contract (over 7 years) necessitates ongoing performance monitoring to ensure continued effectiveness and value.
Ensuring that the 'enhancement' aspect of the program leads to measurable improvements in educational outcomes requires clear performance metrics and evaluation.

Positive Signals

Awarded under full and open competition with 5 bidders, indicating a robust selection process.
The contractor, MDRC, is a reputable organization with a history of research in education and social policy.
The contract's focus on enhancing educational programs suggests a commitment to improving early childhood development.

Sector Analysis

The Head Start Enhancement Program falls within the broader sector of government-funded social services and education. This contract specifically addresses the administration of early childhood education programs. The market for such services involves non-profit organizations, research institutions, and specialized service providers. Comparable spending benchmarks would typically involve analyzing other federal or state contracts for similar program administration and educational support services, considering factors like geographic scope and program complexity.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As the contract was awarded under full and open competition, it's possible that small businesses could have participated as prime contractors or subcontractors if they met the qualifications. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to reporting requirements stipulated in the Cost Plus Fixed Fee contract. The Inspector General's office may also conduct audits or investigations to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

Head Start Program
Child Care and Development Fund
Early Head Start Program
Department of Education Grants

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates sustained performance monitoring.
Potential for scope creep if program enhancements are not clearly defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.6 million to MDRC. HEAD START ENHANCEMENT PROGRAM

Who is the contractor on this award?

The obligated recipient is MDRC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2007-09-24. End: 2015-03-31.

What is MDRC's track record with federal contracts, particularly in education and social services administration?

MDRC (Manpower Demonstration Research Corporation) is a well-established non-profit, non-partisan research organization committed to understanding and improving programs that serve low-income families and individuals. Their work often involves rigorous evaluations of social and economic policies and programs, including those related to education and workforce development. While specific details on their federal contract history beyond this award are not provided in the summary data, their reputation suggests a strong capacity for managing and evaluating complex programs. Their focus on evidence-based practices aligns with the goals of enhancing educational programs. Further investigation into their contract portfolio with agencies like HHS, DOL, and ED would provide a more comprehensive view of their federal contracting experience.

How does the $21.59 million contract value compare to other federal contracts for similar educational program administration services?

Comparing the $21.59 million contract value requires context regarding the scope, duration, and specific services rendered. This contract spans over 7 years, averaging approximately $2.8 million annually. This figure is moderate for large-scale federal program administration. For instance, contracts for nationwide educational initiatives or large-scale research and evaluation projects can range from tens to hundreds of millions of dollars. However, for a regional program like Head Start Enhancement in New York, this value could represent a substantial investment. Benchmarking would necessitate identifying contracts with similar objectives (e.g., program oversight, quality improvement, data management for early childhood education) and similar geographic coverage. Without more granular data on the specific deliverables and the scale of operations managed under this contract, a precise comparison is difficult.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for educational program administration?

The primary risks associated with a CPFF contract for educational program administration revolve around cost control and contractor performance. While the fixed fee provides the contractor with a defined profit margin, the reimbursement of costs means that if the contractor incurs higher-than-expected expenses, the government bears that cost. This can lead to potential cost overruns if the contractor is not efficient or if unforeseen circumstances arise. For the government, effective oversight is crucial to ensure that costs are reasonable, allocable, and allowable. There's also a risk that the contractor might prioritize completing tasks to earn their fee over achieving optimal program outcomes if performance metrics are not robustly defined and monitored. Ensuring the contractor maintains high standards of program quality and administrative efficiency throughout the contract's long duration is paramount.

What are the expected program effectiveness outcomes from this Head Start Enhancement Program contract?

The expected program effectiveness outcomes from this Head Start Enhancement Program contract are centered on improving the quality and impact of Head Start services in New York. As an 'enhancement' program, it likely aims to build upon existing Head Start frameworks by introducing new strategies, improving curriculum delivery, enhancing teacher training, or strengthening family engagement. MDRC's role as administrator suggests a focus on data-driven improvements, research-informed practices, and rigorous evaluation to ensure these enhancements lead to measurable gains in children's cognitive, social, and emotional development. Specific outcomes would ideally be detailed in the contract's statement of work, potentially including metrics related to school readiness, child assessment scores, parent participation rates, and teacher qualifications.

How has federal spending on Head Start and similar early childhood education programs evolved over the period of this contract (2007-2015)?

The period of this contract (September 24, 2007, to March 31, 2015) coincided with significant fluctuations in federal spending, influenced by economic conditions and policy priorities. The Head Start program, administered by the Administration for Children and Families (ACF) within HHS, generally saw consistent, albeit sometimes modest, increases in funding during this era, reflecting bipartisan support for early childhood education. However, the nation experienced the Great Recession starting in late 2007, leading to budget pressures and sequestration in later years. While Head Start funding generally remained a priority, the overall federal budget climate, including stimulus spending and subsequent austerity measures, would have influenced the availability of funds for enhancements and administrative support. Specific year-over-year appropriations for Head Start and related programs would provide a clearer picture of the spending trends during this contract's lifecycle.

Industry Classification

NAICS: Public Administration › Administration of Human Resource Programs › Administration of Education Programs

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: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 16 E 34TH ST FL 19, NEW YORK, NY, 10016

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

Financial Breakdown

Contract Ceiling: $21,593,279

Exercised Options: $21,593,279

Current Obligation: $21,593,279

Contract Characteristics

Multi-Year Contract: Yes

Timeline