DoD's $12.8M Contract for Educational Support Services with American Council on Education Raises Questions
Contract Overview
Contract Amount: $12,795,098 ($12.8M)
Contractor: American Council on Education
Awarding Agency: Department of Defense
Start Date: 2007-10-01
End Date: 2011-09-30
Contract Duration: 1,460 days
Daily Burn Rate: $8.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BASE PERIOD
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036
Plain-Language Summary
Department of Defense obligated $12.8 million to AMERICAN COUNCIL ON EDUCATION for work described as: BASE PERIOD Key points: 1. Significant spending on educational support services by the Department of the Navy. 2. Lack of competition raises concerns about potential overpayment and value for money. 3. Contract awarded to a single entity, limiting price discovery and market competition. 4. Long contract duration (4 years) may not reflect current educational support needs.
Value Assessment
Rating: questionable
The contract value of $12.8 million over four years for educational support services appears high, especially given the lack of competition. Without benchmarks from similar, competed contracts, it's difficult to assess if the pricing is reasonable or if taxpayers received optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and competition, potentially leading to higher costs than if multiple vendors had submitted bids.
Taxpayer Impact: The lack of competition and potential for inflated pricing directly impacts taxpayer funds, suggesting a less efficient use of public money.
Public Impact
Taxpayers may be overpaying for educational support services due to the absence of competitive bidding. The long-term nature of the contract could mean the services provided are outdated or not aligned with current educational needs. Limited transparency into the contract's performance and value realization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
- Sole-source award
Positive Signals
- Services provided by a known entity in the education sector
Sector Analysis
Educational Support Services fall under the broader professional services sector. Spending benchmarks for this category can vary widely based on the specific services offered and the client agency's needs. Without more detail on the scope of services, direct comparison is challenging.
Small Business Impact
The contract was awarded to the American Council on Education, a large non-profit organization, and there is no indication of small business involvement. This contract does not appear to support small business participation.
Oversight & Accountability
The sole-source nature of this contract warrants closer oversight to ensure the services are necessary, effectively delivered, and priced appropriately. Transparency regarding performance metrics and cost justifications is crucial.
Related Government Programs
- Educational Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Limited transparency on service value
- Long contract duration without clear justification
- Sole-source award raises fairness concerns
Tags
educational-support-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to AMERICAN COUNCIL ON EDUCATION. BASE PERIOD
Who is the contractor on this award?
The obligated recipient is AMERICAN COUNCIL ON EDUCATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2007-10-01. End: 2011-09-30.
What specific educational support services were provided under this contract, and how did they align with the Department of the Navy's mission requirements?
The contract was for 'Educational Support Services' (NAICS 611710). While the American Council on Education is a reputable organization, the specific deliverables and their direct impact on naval personnel or operations are not detailed. Understanding the scope is key to assessing value, as 'educational support' can range from professional development to curriculum development or research.
What justification was provided for awarding this contract on a sole-source basis, and were alternative competitive approaches considered?
Sole-source awards typically require a strong justification, such as a unique capability or urgent need. Without this justification, it's difficult to evaluate why competition was bypassed. Exploring if other qualified organizations could have provided similar services at a better price is essential for accountability.
How was the 'Cost Plus Fixed Fee' pricing structure monitored to ensure cost control and prevent contractor overruns?
Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, which is a percentage of the total cost. Robust oversight, detailed cost auditing, and clear performance metrics are necessary to manage this risk effectively and ensure the fixed fee remains appropriate for the services rendered.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0018907TZ206
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1 DUPONT CIRCLE NW STE 800, WASHINGTON, DC, 20036
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,795,098
Exercised Options: $12,795,098
Current Obligation: $12,795,098
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-10-01
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2016-08-01
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