DRAFT_Performance_Work_Statement_(PWS).doc

PERFORMANCE WORK STATEMENT

NCES EDUCATION PROJECTIONS CONTRACT

November 6, 2013 I. Background The National Center for Education Statistics (NCES) within the Institute of Education Sciences (IES) of the U.S. Department of Education (the Department) has the following mission:

(1) to collect and analyze education information and statistics in a manner that meets the highest methodological standards; (2) to report education information and statistics in a timely manner; and (3) to collect, analyze, and report education information and statistics in a manner that: (A) is objective, secular, neutral, and non-ideological and is free of partisan political influence and racial, cultural, gender, or regional bias; and (B) is relevant and useful to practitioners, researchers, policymakers, and the public. P.L. 107-279, Part C, Sec. 151(b); H.R. 3801, Part C, Sec. 151(b), 2002.

As a federal statistical agency charged with providing our nation’s education information and statistics based on large-scale surveys, assessments, and other modes of data collection, NCES has the responsibility to report its findings accurately and in a timely manner. NCES supports a wide range of policy relevant data collection activities for many different types of data consumers and user groups. Changes in the nation’s policymakers’ conception of the importance of education and the role of data in educational improvement has required NCES to expand both the amount and types of information it collects, analyzes, and reports. Simultaneously, NCES is attempting to release data and statistics in a more timely manner.

II. OVERVIEW OF WORK TO BE PERFORMED

The National Center for Education Statistics (NCES) is the principal office within the Department that has the responsibility for producing projections of key education statistics. NCES develops projections of enrollments, high school graduates, teachers, earned degrees, and expenditures at the elementary and secondary and postsecondary levels. These projections appear in the annual report entitled Projections of Education Statistics and are used in other reports by NCES and the Department. NCES projections of education statistics are widely used by individuals in federal, state, and local governments, business, industry, education organizations, professional associations, media, and the general public.

In the mid-1990s, NCES sponsored several projects to convert the NCES methodology for projecting national and state-level education statistics into an integrated forecasting model. The end result of these projects was the development of the NCES Education Modeling System. The models in the NCES Education Modeling System are diverse in size and complexity and use various projection methodologies. Some models have a large number of equations, while others may have only a few equations. A number of education statistics such as elementary and secondary teachers, college enrollment including race/ethnicity, earned degrees by level and educational expenditures are projected using multiple regression models and econometric methods; other statistics such as elementary and secondary enrollment and high school graduates are projected using time series models and exponential smoothing methods. Most of the models generate national level data with the exception of the state-level public elementary and secondary enrollment and high school graduates’ model.

More recently, NCES sponsored several projects to support the NCES Education Modeling System. These activities included periodic tasks designed to review the programming of existing models for accuracy of outputs; special projects to expand the modeling system such as with a module to project college enrollment by race/ethnicity; and upgrades to the NCES Education Modeling System to reflect new technology. One example of a technology upgrade was a project to convert the NCES Education Modeling system to a new platform using the latest window navigational technology and forecasting software with links to demographic and survey data and access to large-scale macroeconomic models and economic, financial, and industry data banks.

Currently, there are 10 components in the NCES Education Modeling System. The components are as follows:

1. Demographic and Survey Data Bank

2. Macroeconomic Data Bank

3. Data Transformation Model

4. College Enrollment Model

5. Elementary/Secondary Enrollment and High School Graduates Model

6. College Enrollment by Race/Ethnicity Model

7. State Enrollment and High School Graduates Model

8. Elementary/Secondary Teachers and Salary Model

9. Earned Degrees by Level Model

10. Elementary/Secondary Current Expenditures Model III. Purpose The purpose of this contract is to obtain consulting services for the 10 components of the NCES Education Modeling System listed in Section II. To produce projections of key education statistics for the annual publication of Projections of Education Statistics, NCES requires the services of a contractor with expertise in maintaining time series data on economic, financial, and industry topics, building large-scale macroeconomic models, and producing forecasts of national economic data of the United States (U.S.) economy. Currently the NCES Education Modeling System produces projections as shown in the Projections of Education Statistics to 2021. A copy of this publication may be obtained from the NCES web site at http://nces.ed.gov/pubsearch/. To implement the modeling system, NCES requires historical values and forecasts of macroeconomic data to execute the individual models, analytic support to revise model specifications to incorporate new information when necessary, and technical support to upgrade the modeling system to reflect changes in technology.

NOTE: There is a significant volume of highly technical work associated with this task and the work tends to require relatively short periods for returning a high quality product to the government. As such, it is imperative that staff proposed by the contractor for this task have experience in education research, forecasting, modeling and statistical analyses. There will not be time after the start of the contract for contractor personnel to familiarize themselves with these areas of statistical work.

IV. Scope of Work NCES will have a need for consulting services to support two data banks and eight forecasting models of the NCES Education Modeling System. The period of performance for the NCES Education Projections contract shall be awarded for a 12-month base period, with up to four 12-month options, for a total of 60 months, subject to the availability of funding. Further, in accordance with PL 107.279, Section 154, the NCES Commissioner has the discretion to renew the contract for an additional period of not more than five years. The task work under this contract shall consist of eight major Tasks.

The contractor shall carry out the first six Tasks and if exercised, two optional tasks during the base year and option years if the Department exercises the option year(s). Throughout the contract Period of Performance, the Department does not anticipate major changes to the Task work. The Department will choose which, if any, of two Optional Tasks the contractor shall carry out. With Task 7, “Revise Model Specifications”, the Department will exercise the Optional Task should the Department require the contractor to revise any model specifications. With Task 8, “Develop New Models”, the Department will exercise the Optional Task should the Department require the contractor to build a new model for key education statistics.

The government estimates that the number of hours required to perform Tasks 1 through 6 under this contract range from 460 and 690 based on the configuration of staff proposed for the work. The number of hours required to perform Task 7 range from 160 to 250 that the number of hours required to perform Task 8 range from 280 to 420.

Task 1: General Management

The contractor shall meet with the NCES Project Director within one week of contract award to review the activities and refine the contract schedule. The Contractor shall submit a summary of the meeting, including any revisions to the schedule, to the NCES Contracting Officer’s Representative (COR) within one week of the meeting. The contractor’s management team responsible for the activities in this project shall meet with the NCES COR on a monthly basis. These meetings can be either in person or by teleconference. A summary of this meeting shall be included in the monthly report. The Contractor ’s Task Leader shall provide for the effective management of the resources and project time lines, and proactively take steps to ensure delivery of high quality products in a timely manner, that adhere to NCES standards.

Task 2: Update Data Banks of the NCES Education Modeling System

The forecasting models of the NCES Education Modeling System use input data from several sources. These data sources include: demographic data from the U.S. Census Bureau; survey data from the institutional surveys of NCES including the Common Core of Data and Integrated Postsecondary Education Data System; and historical values and forecasts of macroeconomic data from an economic forecasting service.

Subtask 2.1: Update Data Banks

Once a year, at the request of the COR, the contractor shall obtain new or revised population estimates and projections at the national and state levels and demographic data from the U.S. Census Bureau. The contractor shall then update the NCES data banks with: (1) the Census population estimates and projections; (2) new or revised Census enrollment data based on the October Current Population Survey provided by NCES and (3) historical values and forecasts of the macroeconomic data provided by the contractor under Task 3.

Task 3: Procure an Economic Forecasting Service/Obtain Access to Historical Values and Forecasts of National Variables

The contractor shall produce projections of education statistics at the national level. In order to produce projections of education statistics at the national level [to meet NCES requirements] the contractor shall secure access to historical values of economic variables and long-term forecasts of these variables. NCES requires access to historical values of economic variables and long-term forecasts of these variables.

The contractor shall provide NCES access to a database of historical and forecast values of important national economic variables on a quarterly frequency in order to update the NCES database. The database of important economic variables shall include both historical data and forecasts for the economic variables included in the forecasting models listed in the methodology section of Projections of Education Statistics to 2021.

Task 4: Execute Existing Forecasting Models

Following the completion of Subtask 2.1 and at the request of the COR, the contractor shall execute the following eight (8) forecasting models using equations available from or developed in conjunction with NCES:

(a) Data Transformation Model

(b) College Enrollment Model

(c) Elementary/Secondary Enrollment and High School Graduates Model

(d) College Enrollment by Race/Ethnicity Model

(e) State Enrollment and High School Graduates Model

(f) Elementary/Secondary Teachers Model

(g) Earned Degrees by Level Model

(h) Elementary/Secondary Current Expenditures Model

The contractor shall also execute any additional models added to the NCES Education Modeling System constructed under Task 8.

Given the interrelated nature of the different models, the first three models (Data Transformation, College Enrollment and Elementary/Secondary Enrollment and High School Graduates) shall be executed and the forecasts evaluated and approved by NCES before the remaining five models (d-h) shall be executed. NCES requires two weeks to review the first three models (a-c).

Subtask 4.1 Execute Core Enrollment Forecasting Models

The contractor shall execute the first three forecasting models: (a) Data Transformation Model; (b) College Enrollment Model, and (c) Elementary/Secondary Enrollment and High School Graduates Model. The contractor shall determine the adequacy of these models’ diagnostics and ensure the accuracy of their outputs. The contractor shall present the projections in tabular formats using the most recent version of the table generator of the modeling system. The contractor shall develop projections to the year specified by NCES. NCES anticipates that the contractor shall execute these three models at least four times over a 12-month period. With these additional model executions, NCES may request minor changes in model specifications such as the exclusion of an independent variable, the change in the lag of an independent variable, and a change in the estimation period of a model. The contractor shall produce a technical report on the execution of the models and assist NCES with the writing of the relevant methodology section of the Projections of Education Statistics.

Subtask 4.2 Execute Additional Elementary and Secondary Forecasting Models

After NCES’ approval of the Elementary and Secondary Enrollment forecasts and the High School Graduates forecasts, the contractor shall execute the State Enrollment and High School Graduates Model, the Elementary/Secondary Teachers, and the Elementary/Secondary Current Expenditures Model. The contractor shall determine the adequacy of these models’ diagnostics and ensure the accuracy of their outputs. The contractor shall present the projections in tabular formats using the most recent version of the table generator of the modeling system. The contractor shall develop projections to the year specified by NCES. After the initial executions of the additional Elementary/Secondary Forecasting Models, NCES anticipates that the contractor shall execute these three models at least three times over a 12-month period. With these additional model executions, NCES may request minor changes in model specifications such as the exclusion of an independent variable, the change in the lag of an independent variable, and a change in the estimation period of a model. The contractor shall produce a technical report on the execution of the models and assist NCES with the writing of the relevant methodology section of the Projections of Education Statistics.

Subtask 4.3 Execute Other Postsecondary Forecasting Models

After NCES’ approval of the College Enrollment forecasts, the contractor shall execute the College Enrollment by Race/Ethnicity Model and the Earned Degrees by Level Model. The contractor shall determine the adequacy of these models’ diagnostics and ensure the accuracy of their outputs. The contractor shall present the projections in tabular formats using the most recent version of the table generator of the modeling system. The contractor shall develop projections to the year specified by NCES. NCES anticipates that the contractor shall execute these two models at least three times over a 12-month period. With these additional model executions, NCES may request minor changes in model specifications such as the exclusion of an independent variable, the change in the lag of an independent variable, and a change in the estimation period of a model. The contractor shall produce a technical report on the execution of the models and assist NCES with the writing of the relevant methodology section of the Projections of Education Statistics.

Task 5: Extract Detailed Projected Data and Rates

In order to respond to internal or external inquiries about projection methodologies, NCES shall require the contractor to provide more detailed projected data and rates that make up the projections. Over a 12-month period, NCES anticipates no more than three requirements involving special programming to generate detailed projections from the various forecasting models. These requests typically involve, but are not limited to, extracting grade-by-grade enrollment projections and grade-by-grade progression and population enrollment rates from the state enrollment model and extracting historical data and forecasts of college enrollment by age and race/ethnicity from the college enrollment model by race/ethnicity.

Subtask 5.1: Extract Detailed Projected Data and Rates

For each request, the contractor shall review the existing forecasting model in terms of the input and output variables. Then the contractor shall extract the detailed projections or rates as requested. Usually, these requests require additional programming to extract the requested information.

Task 6: Upgrade the NCES Education Modeling System

From time to time, there shall be requirements to upgrade the forecasting modeling system. This upgrade shall require both model and software modifications when needed.

Task 6.1: Upgrade the NCES Education Modeling System

Because of the rapid changes in technology, NCES anticipates that changes to the modeling system as well as to individual programs over the contract term will be required. The contractor shall convert models and modify computer programs to accommodate system upgrades and new software. NCES anticipates two requests for system upgrades during a 12-month period.

Task 7: Revise Model Specifications (Optional Task)

The contractor shall revise the specification of a model at NCES’ request or whenever the diagnostics indicate that the model is no longer adequate to describe the dependent variable being estimated. It may be necessary to incorporate new information in the model. The decision on the final specification will be made jointly by NCES and the contractor. NCES anticipates that the contractor shall revise no more than one model over a 12-month period.

For the base year, NCES does not require revised specifications of any of its models.

Subtask 7.1: Developing Alternative Model Specifications and Projections At NCES’ request, the contractor shall review the model specified by NCES. The model shall be reviewed in terms of the underlying theory of the models’ hypotheses and the adequacy of the models’ diagnostics. In addition to examining the specifications of the model, the contractor shall consider past forecast errors provided by NCES. Based on that review, the contractor shall develop an alternative specification of the model. NCES shall make the decision on the final model specification based on the recommendations of the contractor. The alternative model shall be developed as part of the NCES Education Modeling System. The contractor shall produce projections for the specified model to the year requested by NCES. All of this work shall be fully documented within a draft report. The report shall include a detailed description of the review of current and alternative methodologies and a critique of the forecast errors. In addition, the report shall include a table of historical and forecast data, methodological tables, and a chart displaying the historical data and forecasts.

Subtask 7.2: Finalizing Alternative Model Specification and Projections Following a review of the draft report by the COR, the contractor shall prepare a final report incorporating the comments and assist NCES with the writing of the relevant methodology section of the Projections of Education Statistics.

Task 8: Develop New Model (Optional Task)

The contractor shall develop new models of key education statistics for the NCES Education Modeling System at NCES’ request (after the Optional Task is exercised if needed). The contractor shall review relevant literature, propose alternative approaches, collect necessary data, and develop alternative model specifications and projections. The decisions on the initial approach to be taken and on the final specification will be made jointly by NCES and the contractor. NCES anticipates that the contractor shall develop no more than one model over a 12-month period.

Subtask 8.1: Reviewing Relevant Literature and Proposing Alternative Approaches

At NCES’ request, the contractor shall review relevant literature and propose alternative approaches for forecasting a key category of education statistics. NCES shall make the decision on the approach to be taken based on the recommendations of the contractor. All of this work shall be fully documented within a draft report. The report shall include a summary of relevant literature, a discussion of alternative approaches for producing the requested projections including the contractor’s recommended approach.

Subtask 8.2: Updating Data Banks

Following a review by the COR of the report produced under Subtask 8.1, the contractor shall update the NCES data banks to include the historical and projections data needed to develop a model based on the approach agreed upon in Subtask 8.1.

Subtask 8.3: Developing Model Specifications and Projections Following a review by the COR of the draft report produced under Subtask 8.1, the contractor shall develop alternative specifications of the model based on the approach agreed upon in Subtask 8.1. NCES shall make the decision on the final model specification based on the recommendations of the contractor. The model shall be developed as part of the NCES Education Modeling System. The contractor shall produce projections for the specified model to the year requested by NCES. All of this work shall be fully documented within a draft report. The report shall include a detailed description of the review, a table of historical and forecast data, methodological tables, and a chart displaying the historical data and forecasts.

Subtask 8.4: Finalizing Model Specification and Projections Following a review of the draft report by the COR, the contractor shall prepare a final report incorporating the comments. The contractor shall assist NCES with the writing of the methodology section for the new model of the Projections of Education Statistics.

V. PERIOD OF PERFORMANCE

The period of performance for the NCES Education Projections contract shall be awarded with a 12-month base period with up to four 12-month Options, for a total of 60 months, subject to the availability of funding.

The Government reserves the right to renew the contract for a period of up to 60 months, subject to the availability of funds, in accordance with the Enabling Legislation below.

Enabling Legislation

The authority for this project resides in law H.R.3801, an Act to “provide for improvement of Federal education research, statistics, evaluation, information, and dissemination, and for other purposes.” Under Title I, Part C, Sec. 151 of the Act, it states:

Further, the Sec.154 of the Act states NCES’ performance of duties as follows:

(a) GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS. — In carrying out the duties under this part, the Statistics Commissioner, may award grants, enter into contracts and cooperative agreements, and provide technical assistance.

(c) DURATION. — Notwithstanding any other provision of law, the grants, contracts, and cooperative agreements under this section may be awarded, on a competitive basis, for a period of not more than 5 years, and may be renewed at the discretion of the Statistics Commissioner for an additional period of not more than 5 years.

VI. ADHERENCE TO STANDARDS

All materials produced or acquired under this PWS shall meet federal regulations described under Section 508, Part 36, CFR 1194 of the Rehabilitation Act.

All contractors shall follow the OMB Standards and Guidelines for Statistical Surveys (http://www.whitehouse.gov/sites/default/files/omb/assets/omb/inforeg/statpolicy/standards_stat_surveys.pdf; NCES Statistical Standards (http://nces.ed.gov/statprog/2002/stdtoc.asp); IES Style Guide (available in draft) http://nces.ed.gov/statprog/styleguide/pdf/styleguide.pdfhttp://www.gpo.gov/asforms/index.html; the Government Printing Office’s Attributes Program for Printing and Binding ; and the NCES Guidelines, Standards and Procedures for Web Publishing as updated on the web.

In addition, the contractor shall adhere to all printing or publication standards of NCES, including the requirement for final NCES and/or IES (Institute of Education Sciences) review and approval of reports before they can be published. The contractor shall use Microsoft Office Suite products or Microsoft compatible software including Word, Excel, Access, SQL, etc. for text documents, tables, and figures. The method or media for delivery will be specified in the task orders. Text documents shall be delivered in manipulable formats unless otherwise requested. Guidelines for software and formatting specifications of such deliverables are available in the statistical standards and web standards.

When programming and or source code is used to develop a deliverable, the contractor shall be required to provide the annotated code when the deliverable is submitted to and accepted by the Government. All intermediate and final products and supporting programming and or source code generated by work under awarded tasks are the property of the Government, and must be provided to the Government upon request. Forecasts, models, analyses and data developed under this contract by contractors, subcontractors and or their partners cannot be released without written NCES approval.

VII. NATURE OF CONTRACTORS

The contractor selected to conduct the work under the NCES Education Projections contract services shall have a special relationship with NCES beyond that which is common to normal contractual relationships. The selected contractor shall operate within an established organizational structure that ensures its independence, dedication, and responsiveness to NCES’s work requirements. It is of paramount importance that the selected contractor operates in the public interest with objectivity. The selected contractor and their employees and agents shall be free from real and apparent conflicts of interest, financial and otherwise. To achieve these characteristics, the selected contractor must meet the following requirements regarding structural autonomy, personnel policies, and access to NCES data.

1. Structural Autonomy

Staff of the selected contractor shall operate within their employer organizations with sufficient operational separation and autonomy to ensure that their work is independent, objective, and unbiased. Specifically, the selected contractor must provide Education Projections contract staff sufficient separation from other staff and work to assure that the Education Projections work is free from potential conflicts of interest or other sources of bias.) These safeguards must extend to accessibility to and protection of hardware and software, hardcopy material, and any other physical or intellectual features that, if accessed by staff not assigned to the Education Projections contract, could have actual or perceived effects on independence, objectivity, or bias.

2. Teaming/Subcontracting

Based upon the particular requirements and needs described in the Performance Work Statement, the contractor shall provide or maintain a network of professional consultants and/or identify appropriately qualified experts with whom the contractor may team or subcontract to provide services on a relatively rapid basis as specified. The ability and willingness to collaborate across several contractors if necessary, is an essential part of the work under this contract.

3. Access to NCES Data

NCES will provide the contractor with all data, published or unpublished, that shall be required for the projects undertaken. The contractor shall request such data in writing and shall assure that approved restricted use data licensing agreements are in place (see http://nces.ed.gov/statprog/rudman/). The Contractor and or subcontractors shall not share any data without direct NCES approval. The COR will review and approve all such requests, subject to approval from the IES Data Security Program in the NCES Statistical Standards Program (SSP). Each contractor employee with access to personally identifiable data from NCES data collections must obtain a level 5 or 5C security clearance per the requirements in Departmental Directive OM:5-101 (www2.ed.gov/policy/gen/leg/foia/acsom5101.pdf)

4. Facilities, Equipment and Place of Performance

The contractor shall have office space within the Washington, D.C. metropolitan area for employees who will interact with NCES on a regular (if not daily) basis. The contractor’s facilities must provide a secure environment for working with and maintaining confidential data files and other related work. NCES data must be used and maintained on machines that are not networked into a company’s general network; work must be done in a physical space that allows access only by staff with appropriate clearance and independent from other work that would raise conflict of interest issues; must have sufficient secure storage and restricted access of hours. Contractors with access to restricted use data that have not been approved by the IES Disclosure Review Board must have their computer system go through the Department of Education approved certification and accreditation (C&A) process. The contractor’s overall facilities shall include sufficient information processing equipment, software, telecommunication access, and storage to conduct basic development and research work as described in the Overview of Work to Be Performed (Section II). The equipment shall include microcomputers, modems suitable for working on mainframe computer facilities, laser printers, and graphics capability. Contractors shall have available FAX and scanning equipment to facilitate communication with NCES. This will ensure rapid transmission of needed information.

Portions of the contractor’s staff located elsewhere, but who have responsibility for supporting task work, shall be linked electronically to their Washington, D.C. location so that the remote location of staff is as transparent as possible. Staff who work in remote offices will need their computer system firewalled from the parent company networks. All restricted use data must be transmitted to remote locations using encrypted data and via an NCES secure server. NCES will make available to the contractor temporary working space at the NCES facility when specific projects require this (e.g., supporting NCES license application system, hard coding transcripts and other open ended survey items and confidential documents, collaboration with NCES staff, working with extensive files that would be costly to duplicate or move).

VIII Transition Period

The Government may decide to implement a transition period, if funding permits. The transition period would allow the current contractor to conduct information sessions with new the NCES Education Projections contractor to support a smooth transfer and or handoff of contract work. The transition period, if implemented, would not affect the contract periodicity detailed in section VI. No other start-up costs are anticipated to support work under this contract.

IX. GENERAL MANAGEMENT

Each contractor and or its organization shall exercise such management control as is necessary to ensure work is done on time, efficiently, and in accordance with established standards. General task management shall include, but not be limited to, the following activities: (1) personnel recruitment, evaluation, and oversight; (2) work assignment and oversight of progress and quality of work; (3) adherence to schedule and quality standards; (4) monitoring and oversight of contract budget; (5) communication on a frequent basis with the COR; (6) reporting functions; and (7) contract administration to ensure compliance with its terms and conditions.

1. Technical Reports For each of the eight Tasks, the contractor shall provide NCES with a technical report and/or requested tables. Each technical report shall be no more than 7 double-spaced pages in length, using Microsoft Word format. Each table shall be delivered in Microsoft Excel spreadsheet format. The contents of the technical reports and tables are described in the following paragraphs. The anticipated timetable for submission of the technical reports can be found on the Table of Deliverables.

(1) For updates of the two data banks (Task 2 and Subtask 2.1), the contractor shall provide a brief report detailing the availability of updated information, relevant data sources, and time series that have been updated with the latest information. In addition, the contractor shall list those time series for which there are no updates. For these time series, the contractor shall use the forecasting models to project the missing years to preserve the time period of the forecasting models.

(2) For the Economic Forecasting Service, the contractor shall provide a 12-month subscription to a service that provides access to economic forecasts of key independent variables to forecast the existing models. This includes historical values and forecasts of national variables. Descriptions of the service are detailed in Task 3.1.

(3) For the execution of existing forecasting models to develop revised projections of education statistics, the contractor shall re-estimate existing forecasting models, compute forecasts, and produce tables of projections and diagnostics results. The contractor shall provide a brief discussion of models that are not performing adequately based on the diagnostics and recommend a solution to improve those models.

(4) For revision of a model specification to incorporate new information, the contractor shall describe briefly the revised model and its new specification. In addition, the contractor shall present the projections and diagnostics results. The contractor shall explain how the results differ from the previous model specification.

(5) For development of a new model, the contractor shall describe briefly discuss the relevant literature, the new model, and its specification. In addition, the contractor shall present the projections and diagnostics results.

(6) For extraction of detailed projected data and rates as it relates to inquiries about projection methodologies, the contractor shall develop tables of requested information using Microsoft Excel spreadsheet format.

(7) For upgrades of the NCES Education Modeling System to reflect the latest changes in models and technology, the contractor shall be required to provide NCES with a technical report of the latest upgrades.

X. PERFORMANCE MEASUREMENT SYSTEMS

Contractors shall establish a performance measurement system that shall support the project management function through a series of interrelated activities that include:

· Development and use of detailed production schedules that define and organize contract work;

· Use of contractor management control systems that facilitate performance measurement within the work breakdown structure; and

· Use of a reporting system to report contract status.

XI. CONFIDENTIALITY, SECURITY, IT & OTHER REQUIREMENTS

Overview of IES Confidentiality Statute

Confidentiality of Individuals and Institutions

NCES assures participating individuals and institutions that any data collected conforms to the IES standards for protecting the privacy of individuals as required by Section 183 of the Education Sciences Reform Act of 2002 (P.L. 107-279):

“. . . all collection, maintenance, use, and wide dissemination of data by the Institute, including each office, board, committee, and Center of the Institute, shall conform with the requirements of section 552A of Title 5, United States Code [which protects the confidentiality rights of individual respondents with regard to the data collected, reported, and published under this title].” (Section 183)

Under the Education Sciences Reform Act of 2002 (ESRA 2002), all individually identifiable information about students, their families, and their schools shall remain confidential. To this end, this law requires that no person may:

· Use any individually identifiable information furnished under the provisions of this section for any purpose other than statistical purposes for which it is supplied, except in the case of terrorism;

· Make any publication whereby the data furnished by any particular person under this section can be identified; or

· Permit anyone other than the individuals authorized by the Commissioner to examine individual reports.

Further, individually identifiable information is immune from legal process, and shall not, without the consent of the individual concerned, be admitted as evidence or used for any purpose in any action, suit, or other judicial or administrative proceeding, except in the case of terrorism. Employees, including temporary employees, or other persons who have sworn to observe the limitations imposed by this law, who knowingly publish or communicate any individually identifiable information will be subject to fines of up to $250,000 or up to 5 years in prison, or both (Class E felony).

Protection and Security of Data

The confidentiality of individually identifiable information contained in project documents, data, and other information supplied by the National Center for Education Statistics, U.S. Department of Education (NCES/ED) or information acquired in the course of performance under this contract where the information was furnished under the provisions of Section 183 of the Education Sciences Reform Act of 2002 is a material aspect of the contract and must be maintained, secured, and protected from disclosure as provided in Section 183. The Privacy Act of 1974 (5 U.S.C. 552a) also applies.

The contractor shall enforce strict procedures for assuring confidentiality. These procedures shall apply to all phases of the project and should include but not be limited to: information used to locate study respondents, data collection in the field, coding and editing phases of data prior to machine processing, safeguarding response documents, and maintenance of any respondent follow-up information. Contractor shall physically separate the identifying data required for any follow-up from data required for research purposes.

The contractor shall be familiar with and comply with:

1) The Privacy Act of 1974 (5 U.S.C. 552a),

2) Confidentiality Information Protection and Statistical Efficiency Act (CIPSEA) of 2002 (P.L. 107-347, Title V, Subtitle A, “Confidential Information Protection”),

3) Family Educational Rights and Privacy Act (FERPA) (20 U.S.C. 1232g; 34 CFR Part 99),

4) The Freedom of Information Act (5 U.S.C. 552),

5) Part C of the Education Sciences Reform Act of 2002 (P.L. 107-279),

6) Part E, Section 183 of the Education Sciences Reform Act of 2002 (P.L. 107-279),

7) No Child Left Behind Act (20 U.S.C. 70),

8) USA Patriot Act of 2001 (P.L. 107-56),

9) Office of Management and Budget (OMB) Federal Statistical Confidentiality Order of 1997,

10) OMB Guidance of 7/12/2006 on the Reporting of Incidents Involving Personally Identifiable Information (M-06-19), http://www.whitehouse.gov/OMB/memoranda/fy2006/mo6-19.pdf ,

11) OMB Guidance of 5/22/2006 on Safeguarding Personally Identifiable Information (M- 06-15) http://www/whitehouse.gov/omb/memoranda/fy2006/m-06-15.pdf,

12) Federal Information Security Management Act (FISMA) of 2002 (P.L. 107-347, Title III),

13) Any new legislation that impacts the data collection through this contract.

The contractor shall maintain the confidentiality of all documents, data, and other information supplied by NCES/ED or acquired in the course of performance of this contract, except for any documents or other information specifically designated as non-confidential by NCES/ED. The contractor shall take such measures as are necessary to maintain the required security and protection of confidential information (see section Data Security Plan). The contractor shall be prepared to develop compliance procedures in cooperation with the COR concurrently with the development of the study design.

Data Security Plan

Clearance for Access to Restricted Data

Contractors shall secure NCES authorization to use restricted use (i.e., personally identifiable information (PII), NCES data necessary to conduct their work. Upon receiving this authorization, the contractor and their staff identified to use restricted data shall participate in an orientation session and sign an Affidavit of Confidentiality form that includes the same restrictions and penalties that apply to NCES staff should individually identifiable data be disclosed. Because of the special working relationship between the NCES and the contractor, authorization shall apply to an entire set of data for the length of the contract. Each contractor employee whose work requires access to PII must obtain a level 5 or 5C security clearance. Offerors shall identify in their proposal the list of persons and/or positions that will require security clearances.

Definition of Personally Identifiable Information and Direct Identifiers The term “personally identifiable information” (hereinafter PII) means any information about an individual maintained by an agency, including, but not limited to, education, financial transactions, medical history, and criminal or employment history and information which can be used to distinguish or trace an individual’s identity, such as their name, social security number, date and place of birth, mother’s maiden name, biometric records, etc., including any other personal information which is linked or linkable to an individual. The term “direct identifier” denotes any single datum that alone is deemed sufficient to yield a high risk of disclosure if released, such as social security numbers, full names, or biometric records.

Development of Data Security Plan

The contractor shall present a detailed security plan that expands upon what was presented in the proposal to the COR for approval. In order to ensure the anonymity of individual respondents, the contractor must draft and execute this plan in compliance with all relevant laws, regulations, and policies governing the security of data, particularly PII. These include (but are not limited to):

1) Section 183 of the Education Sciences Reform Act of 2002, which states:

(a) IN GENERAL - All collection, maintenance, use, and wide dissemination of data by the Institute, including each office, board, committee, and center of the Institute, shall conform with the requirements of section 552a of title 5, United States Code, the confidentiality standards of subsection (c) of this section, and sections 444 and 445 of the General Education Provisions Act (20 U.S.C. 1232g, 1232h).

(b) STUDENT INFORMATION - The Director shall ensure that all individually identifiable information about students, their academic achievements, their families, and information with respect to individual schools, shall remain confidential in accordance with section 552a of title 5, United States Code, the confidentiality standards of subsection (c) of this section, and sections 444 and

445 of the General Education Provisions Act (20 U.S.C. 1232g, 1232h);

2) The Privacy Act of 1974 (5 U.S.C. 552a);

3) The E-Government Act of 2002 (P.L. 107-347);

4) The relevant sections of Title 34 of the Code of Federal Regulations entitled “Protection of Human Subjects” (34 CFR 97);

5) The U. S. Department of Education OCIO-1 Handbook for Information Assurance Security Policy (January 2009);

6) Office of Management and Budget Memorandum M-06-19, “Reporting Incidents Involving Personally Identifiable Information and Incorporating the Cost of Security in Agency Information Technology Investments”;

7) OMB Guidance of 7/12/2006 on the Reporting of Incidents Involving Personally Identifiable Information (M-06-19).

The data security plan will, at a minimum, cover the following issues: the transfer/transport of PII, maintenance, storage, and use of direct identifiers, replacement of direct identifiers with internal codes, security of master survey files, security and confidentiality training for contractor staff, and reporting of data security breaches. Hence, the data security plan shall be written to place particular emphasis on the following aspects of confidentiality and security:

Guidelines for Transfer of PII

As a general principle, the physical and/or electronic transfer of PII (particularly direct identifiers) shall be limited to the extent practicable. This limitation includes both internal transfers (e.g., transfer of information between agents of the contractor, including subcontractors and/or field workers) and external transfers (e.g., transfers between the contractor and the agency, or between the contractor and another government agency or private entity assisting in data collection).

When it is necessary for the contractor to transfer PII, such transfer must occur in a manner that maximizes the security of information. The data security plan must describe the likely modes of data transfer and establish the most secure procedures practicable. The most secure method of transferring sensitive information is not necessarily the most efficient or convenient one.

· The preferred means of transferring PII (and particularly direct identifiers) is electronic transfer with 128-bit secure sockets layer (SSL) encryption.

· If electronic PII is transferred via physical media (e.g. a CD-ROM or DVD-ROM is created and sent via courier service or mail), all files on the media shall be encrypted (FIPS 140-2 standard) with a strong password (e.g., a random string of letters and numbers) and this password shall be sent separately from the data. In addition, no obvious external markings or information identifying the media as containing PII shall be written, stamped, or otherwise inscribed on the media or its packing material.

· If paper records or files must be transferred, then the contractor and its agents should hand carry these documents for delivery. Shipping or mailing these kinds of documents should be avoided. The contractor should clearly state in their data security plan if this requirement cannot be met. The data security plan should describe all transfers of paper records or files and how they will be secured. If these documents must be shipped/mailed, the contractor and it agents should avoid transferring multiple direct identifiers in the same shipment. For example, a mailing containing the names, addresses, and social security numbers of subjects is less secure than two mailings: one shipment with the names and addresses and a second shipment with the social security numbers and no additional information. Alternatively, a partial mailing of data could be followed up with a telephone call (for smaller amounts of PII) which provides the remainder of the data verbally. Any shipment sent must have a tracking number. As above, no obvious external markings or information identifying the mailing as containing PII shall be written, stamped, or otherwise inscribed on the packing material.

Maintenance, Storage, and Use of Direct Identifiers

Under no circumstances may the contractor release PII to unauthorized individuals. In addition, direct identifiers must be maintained in files which are physically separate from other research data, and which are accessible only to sworn agency and contractor personnel. Individual direct identifiers used during the course of the project shall be associated with data only for statistical purposes such as data gathering, matching new data with old, establishing sample composition, authenticating data collections, editing data based on callbacks, or obtaining missing information.

As a general principal, the number of personnel with access to PII (and particularly direct identifiers) shall be restricted to the smallest number as possible.

Replacement of Direct Identifiers with Internal Codes

Although direct identifying information is often required in the data collection process, to the extent practicable the contractor shall use internally generated identifying codes to track subjects in data files. Whenever possible, the transfer and storage of files containing multiple direct identifiers should be avoided. If the transfer of direct identifiers is required for statistical purposes such as data matching, the minimum number of direct identifiers needed for successful matching shall be used.

Security of Master Survey Files

The contractor shall maintain security on the complete set (and deliverable backups) of all master survey files and documentation.

Federal Information Security Management Act (FISMA) Requirements

Compliance with ED IT Security Policy The contractor, and all sub-contractors, shall comply with the Department of Education’s IT security policy requirements, specifically those set forth in the ‘Handbook for Information Assurance Security Policy (OCIO-01)’, and other applicable procedures and guidance. The contractor, and all sub-contractors, shall develop and implement management, operational and technical security controls to assure required levels of protection for information systems. The contractor, and all sub-contractors, shall further comply with all applicable Federal IT security requirements including, but not limited to, the Federal Information Security Management Act (FISMA) of 2002, Office of Management and Budget (OMB) Circular A-130 Appendix III, Homeland Security Presidential Directives (HSPD), the National Institute of Standards and Technology (NIST) standards and guidance, and the Federal Risk and Authorization Management Program (FedRAMP) requirements and guidance.

These security requirements include, but are not limited to, the successful Security Authorization (SA) of the system (includes commercially owned and operated systems managed by the commercial vendor and its sub-contractors, supporting Department programs, contracts, and projects); obtaining a full Authority to Operate (ATO) before being granted operational status; performance of annual self-assessments of security controls; annual Contingency Plan testing; performance of periodic vulnerability scans; updating all information system security documentation as changes occur; and other continuous monitoring activities, which may…