Over $19M for Nonpublic Educational Services, Inc. for Title I Missouri Bypass program

Contract Overview

Contract Amount: $19,191,552 ($19.2M)

Contractor: Nonpublic Educational Services, Inc.

Awarding Agency: Department of Education

Start Date: 2007-08-31

End Date: 2012-07-31

Contract Duration: 1,796 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TITLE I MISSOURI BYPASS

Place of Performance

Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192

State: Virginia Government Spending

Plain-Language Summary

Department of Education obligated $19.2 million to NONPUBLIC EDUCATIONAL SERVICES, INC. for work described as: TITLE I MISSOURI BYPASS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is 1796 days, indicating a long-term service requirement. 4. The contract was awarded to Nonpublic Educational Services, Inc., whose performance history warrants review. 5. The North American Industry Classification System (NAICS) code 611710 points to educational support services. 6. The contract's value of over $19 million warrants scrutiny for value for money.

Value Assessment

Rating: questionable

The contract value of $19,191,551.97 for educational support services over approximately five years requires careful benchmarking. Without specific performance metrics or comparable contracts for the 'Title I Missouri Bypass' program, it is difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as contractor profit is guaranteed regardless of efficiency, potentially inflating costs. Further analysis of the fixed fee and allowable costs would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. The presence of two bidders ('no': 2) suggests some level of competition, but the limited number of bidders could still impact price discovery. A more robust competition typically involves a larger pool of offerors to drive down prices and encourage innovation.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, with only two bidders, the potential for competitive pricing may have been constrained compared to a scenario with numerous proposals.

Public Impact

The primary beneficiaries are likely students in Missouri who are eligible for Title I services, receiving educational support. The services delivered are categorized under 'Educational Support Services,' which could include tutoring, specialized instruction, or other academic assistance. The geographic impact is focused on Missouri, specifically addressing the needs of students within the 'Title I Missouri Bypass' program. The contract supports the educational workforce by engaging Nonpublic Educational Services, Inc. and potentially its employees to deliver these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending without a direct link to efficiency.
Limited competition (2 bidders) may have restricted the potential for achieving the lowest possible price.
The long contract duration (1796 days) increases the risk of cost escalation over time if not closely monitored.
Lack of detailed performance metrics makes it challenging to assess the effectiveness and value of the services provided.

Positive Signals

Awarded through full and open competition, which theoretically promotes fair market access.
The contract addresses a specific educational need (Title I Missouri Bypass), indicating a targeted government program.
The existence of a definitive contract suggests a structured agreement with defined terms and conditions.

Sector Analysis

The contract falls within the 'Educational Support Services' sector (NAICS 611710). This sector encompasses establishments primarily engaged in providing educational support activities and services, such as academic tutoring centers, test preparation, and educational consulting. The federal government, particularly the Department of Education, is a significant purchaser of such services to supplement public education initiatives like Title I. Benchmarking this contract's value would require comparing it to similar federal or state contracts for educational support services, considering factors like student populations served, service intensity, and duration.

Small Business Impact

The contract indicates that small business participation was not a specific set-aside ('sb': false). There is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, Nonpublic Educational Services, Inc., was selected without a mandate to engage small businesses for a portion of the work, potentially limiting opportunities for the small business ecosystem in this specific contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Education, which awarded and manages the agreement. As a definitive contract, it should have defined reporting requirements and performance standards. Transparency would depend on the public availability of contract performance reports and audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

Title I Grants to Local Educational Agencies
Federal Education Funding Programs
Nonpublic School Services
Educational Support Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type
Limited number of bidders (2)
Long contract duration (over 4 years)

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $19.2 million to NONPUBLIC EDUCATIONAL SERVICES, INC.. TITLE I MISSOURI BYPASS

Who is the contractor on this award?

The obligated recipient is NONPUBLIC EDUCATIONAL SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2007-08-31. End: 2012-07-31.

What is the specific nature of the 'Title I Missouri Bypass' program and how does this contract support its objectives?

The 'Title I Missouri Bypass' program is designed to provide federal funding for educational services to eligible students in Missouri, particularly those in nonpublic schools who may not directly benefit from traditional public school Title I allocations. This contract with Nonpublic Educational Services, Inc. likely aims to deliver supplementary educational support, such as tutoring, academic enrichment, or specialized instruction, to these students. The objective is to ensure equitable access to educational resources for disadvantaged students, regardless of their school type. The contract's value of over $19 million suggests a significant scope of services intended to impact a substantial number of students or provide intensive support over its duration.

How does the Cost Plus Fixed Fee (CPFF) contract structure potentially impact the overall cost and efficiency of this service?

A Cost Plus Fixed Fee (CPFF) contract guarantees the contractor reimbursement for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this structure can be useful for projects with uncertain costs or scope, it carries a risk of cost escalation. The contractor has less incentive to control costs because their profit is fixed, regardless of how efficiently they operate. For taxpayers, this means the final cost could be higher than anticipated if the contractor does not manage expenses diligently. Effective oversight by the Department of Education is crucial to scrutinize allowable costs and ensure the fixed fee remains reasonable for the services rendered.

What is the track record of Nonpublic Educational Services, Inc. in delivering similar educational support services to government entities?

Assessing the track record of Nonpublic Educational Services, Inc. is critical for understanding their capability and reliability in fulfilling this contract. Information regarding past performance, including successful completion of similar government contracts, client satisfaction, and any history of disputes or performance issues, would provide valuable insight. Without specific data on their prior engagements, particularly with federal agencies, it is difficult to gauge their expertise in managing large-scale educational support programs and meeting government requirements. A review of past performance evaluations or contract histories would be necessary for a comprehensive assessment.

Given the $19M contract value and 1796-day duration, what is the average annual spending on this program?

The total contract value is $19,191,551.97, and the duration is 1796 days. To calculate the average annual spending, we first determine the number of years the contract spans. 1796 days is approximately 4.92 years (1796 / 365.25). Dividing the total contract value by the duration in years gives the average annual spending: $19,191,551.97 / 4.92 years ≈ $3,899,096 per year. This figure represents the average rate at which federal funds were allocated to Nonpublic Educational Services, Inc. for the Title I Missouri Bypass program over the contract period.

How does the level of competition (2 bidders) compare to typical benchmarks for federal educational support service contracts?

Federal procurement guidelines generally encourage robust competition to ensure fair pricing and optimal value. A typical benchmark for a contract of this magnitude in the educational support services sector might involve anywhere from 3 to 10 or more qualified bidders, depending on the specificity of the requirements and market dynamics. Having only two bidders for this $19 million contract suggests that the competition may have been less robust than ideal. This limited pool could potentially lead to higher prices than might be achieved in a more competitive environment, as the offerors face less pressure to submit the most aggressive bids.

Are there any specific performance metrics or deliverables outlined in the contract that allow for assessment of program effectiveness?

The provided data does not include specific performance metrics or deliverables for this contract. However, for a Cost Plus Fixed Fee contract of this nature, particularly one involving educational services, it is expected that the Department of Education would have established key performance indicators (KPIs) and measurable deliverables. These might include student achievement gains, attendance rates, program participation levels, or specific educational outcomes. The absence of this information in the summary data makes it challenging to independently assess the effectiveness and impact of the services provided by Nonpublic Educational Services, Inc. under this contract.

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

Solicitation ID: ED-07-R-0027

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 27 CONGRESS ST SHETLAND PARK #310, SALEM, MA, 01970

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,616,581

Exercised Options: $19,191,552

Current Obligation: $19,191,552

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline