No profit left behind
In the high-stakes world of American education, Pearson makes money even when its results don’t measure up.
The British publishing giant Pearson had made few inroads in the United States — aside from distributing the TV game show “Family Feud” — when it announced plans in the summer of 2000 to spend $2.5 billion on an American testing company.
It turned out to be an exceptionally savvy move.
The next year, Congress passed the No Child Left Behind Act, which mandated millions of new standardized tests for millions of kids in public schools. Pearson was in a prime position to capitalize.
From that perch, the company expanded rapidly, seizing on many subsequent reform trends, from online learning to the Common Core standards adopted in more than 40 states. The company has reaped the benefits: Half its $8 billion in annual global sales comes from its North American education division.
But Pearson’s dominance does not always serve U.S. students or taxpayers well.
POLITICO examined hundreds of pages of contracts, business plans and email exchanges, as well as tax filings, lobbying reports and marketing materials, in the first comprehensive look at Pearson’s business practices in the United States.
The investigation found that public officials often commit to buying from Pearson because it’s familiar, even when there’s little proof its products and services are effective.
The North Carolina Department of Public Instruction, for instance, declined to seek competitive bids for a new student data system on the grounds that it would be “in the best interest of the public” to simply hire Pearson, which had done similar work for the state in the past. The data system was such a disaster, the department had to pay Pearson millions extra to fix it.
Administrators at the University of Florida also skipped competitive bids on a huge project to build an online college from scratch. They were in a hurry. And they knew Pearson’s team from a previous collaboration. That project hadn’t been
Read more: http://www.politico.com/story/2015/02/pearson-education-115026.html#ixzz3RMZ41aqQ
