ETS Loses GMAT Contract

University Testing

Beginning in January 2006, the Graduate Management Admissions Test (GMAT) will be administered by Pearson VUE, the electronic exam delivery subsidiary of the global con glomerate Pearson, which is also responsible for scoring the SAT I “Writing” exam essay section. The Graduate Management Admissions Council ended its long-standing ties to the Educational Testing Service (ETS) and awarded the contract to Pearson after a series of administration and scoring errors by ETS (see Examiner, Summer 2001; Winter 1997-98). Company documents show that ETS had rushed development of the computer adaptive GMAT to prevent other companies from supplanting its leadership of the testing market (see Examiner, Spring 1997).


A class action lawsuit is being prepared seeking damages from ETS for the nearly 1,000 GMAT test-takers who received erroneously low scores in February and March 2000, due to a grading error the company took ten months to admit.


Responding to the loss of the GMAT contract, ETS President Kurt Landgraf told Business Week the company “does not intend to exit this marketplace.” Reportedly ETS is considering fabricating an alternative business school admissions test from components of its Graduate Record Exam (GRE).