Department of Education awards $22.1M contract for student financial aid servicing
Contract Overview
Contract Amount: $22,096,650 ($22.1M)
Contractor: Higher Education Servicing Corp
Awarding Agency: Department of Education
Start Date: 2015-10-01
End Date: 2016-09-30
Contract Duration: 365 days
Daily Burn Rate: $60.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: IGF::CT::IGF / CRITICAL FUNCTION IDIQ: SERVICING OF TITLE IV STUDENT FINANCIAL AID, IN ACCORDANCE WITH SECTION 2212 OF THE HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010 (PUB.L. 111-152, 124 STAT. 1029). TASK ORDER: SERVICING OF TITLE IV FINANCIAL AID, FROM 10/01/2015 TO 09/30/2016.
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76016
State: Texas Government Spending
Plain-Language Summary
Department of Education obligated $22.1 million to HIGHER EDUCATION SERVICING CORP for work described as: IGF::CT::IGF / CRITICAL FUNCTION IDIQ: SERVICING OF TITLE IV STUDENT FINANCIAL AID, IN ACCORDANCE WITH SECTION 2212 OF THE HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010 (PUB.L. 111-152, 124 STAT. 1029). TASK ORDER: SERVICING OF TITLE IV FINANCIAL AID, FROM 10/01/2015 TO 09… Key points: 1. Contract awarded to Higher Education Servicing Corp for student financial aid servicing. 2. Full and open competition was utilized for this contract. 3. The contract duration is one year, from October 1, 2015, to September 30, 2016. 4. The contract type is Fixed Price with Economic Price Adjustment. 5. The contract falls under NAICS code 522390 (Other Activities Related to Credit Intermediation).
Value Assessment
Rating: fair
The contract value of $22.1 million for one year of servicing Title IV financial aid appears reasonable given the scope. Benchmarking against similar large-scale student loan servicing contracts would provide a more definitive assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes efficiency and potentially lower costs through market forces.
Public Impact
Ensures continued servicing of Title IV federal student financial aid programs. Supports the operational needs of the Department of Education in managing student loans. Impacts students and institutions relying on federal financial aid services. Contract duration of one year may require frequent re-competition or extensions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed Price with Economic Price Adjustment (FPEPA) can introduce cost uncertainty.
- Short contract duration (1 year) may lead to administrative burden and potential disruption.
Positive Signals
- Awarded under full and open competition.
- Servicing critical function for student financial aid.
Sector Analysis
This contract falls within the financial services sector, specifically related to credit intermediation and loan servicing. Spending in this area is substantial, supporting government lending programs and financial infrastructure.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Department of Education is responsible for overseeing this contract. Standard contract management practices and oversight mechanisms should be in place to ensure performance and compliance.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for cost increases due to Economic Price Adjustment.
- Short contract duration may lead to instability or increased administrative costs.
- Reliance on a single vendor for a critical function.
- Lack of transparency on small business participation.
Tags
other-activities-related-to-credit-inter, department-of-education, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $22.1 million to HIGHER EDUCATION SERVICING CORP. IGF::CT::IGF / CRITICAL FUNCTION IDIQ: SERVICING OF TITLE IV STUDENT FINANCIAL AID, IN ACCORDANCE WITH SECTION 2212 OF THE HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010 (PUB.L. 111-152, 124 STAT. 1029). TASK ORDER: SERVICING OF TITLE IV FINANCIAL AID, FROM 10/01/2015 TO 09/30/2016.
Who is the contractor on this award?
The obligated recipient is HIGHER EDUCATION SERVICING CORP.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $22.1 million.
What is the period of performance?
Start: 2015-10-01. End: 2016-09-30.
What is the historical performance of Higher Education Servicing Corp on similar federal contracts?
Information on the historical performance of Higher Education Servicing Corp on similar federal contracts is not provided in the data. A review of past performance, including any past performance evaluations or contract awards, would be necessary to assess their reliability and effectiveness in servicing federal student financial aid.
What are the specific economic factors that could trigger price adjustments under the FPEPA contract?
The specific economic factors that could trigger price adjustments under the Fixed Price with Economic Price Adjustment (FPEPA) contract are not detailed in the provided data. Typically, these adjustments are tied to indices such as the Consumer Price Index (CPI) or specific labor and material cost escalations relevant to the service provided.
How does the cost of this contract compare to previous or subsequent contracts for the same servicing function?
A direct comparison of the cost of this contract ($22.1 million for one year) to previous or subsequent contracts for the same servicing function is not possible with the given data. Longitudinal cost analysis, accounting for inflation and changes in scope or service levels, would be required for a meaningful comparison.
Industry Classification
NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Other Activities Related to Credit Intermediation
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 4381 W GREEN OAKS BLVD STE 200, ARLINGTON, TX, 76016
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,096,650
Exercised Options: $22,096,650
Current Obligation: $22,096,650
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: EDFSA12D0005
IDV Type: IDC
Timeline
Start Date: 2015-10-01
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2017-06-22
More Contracts from Higher Education Servicing Corp
- Critical Function Base Award: Servicing of Title IV Student Financial AID, in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l. 111-152, 124 Stat. 1029) for the Period of 6/17/2014 to 6/16/2019. Task Order: Servicing of Title IV Student Financial AID in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l.111-152, 124 Stat. 1029) for the Period of 09/01/2018 to 08/31/2019. Modification: the Purpose of This Modification IS to Create a NEW Task Order for Contract Ed-Fsa-12-D-0005 With the Period of Performance: 9/01/2018 - 8/31/2019, and Provide Funding for Title IV AID Servicing Through Approximately 12/31/2018 — $37.5M (Department of Education)
- Critical Function Base Award: Servicing of Title IV Student Financial AID, in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l. 111-152, 124 Stat. 1029) for the Period of 1/23/2012 to 9/30/2019. Task Order: Servicing of Title IV Student Financial AID in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l.111-152, 124 Stat. 1029) for the Period of 10/1/2017 to 8/31/2018 — $25.7M (Department of Education)
- / Critical Function Idiq: Servicing of Title IV Student Financial AID, in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l. 111-152, 124 Stat. 1029). Task Order: Servicing of Title IV Financial AID, From 10/01/2014 to 09/30/2015. Provides Funding for Title IV AID Servicing, Through Approximately 12/31/2017 — $24.9M (Department of Education)
- / Critical Function Idiq: Servicing of Title IV Student Financial AID, in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l. 111-152, 124 Stat. 1029). Task Order: Servicing of Title IV Financial AID, From 10/01/2014 to 09/30/2015. Provides Funding for Servicing and Development&maintenance, Through Approximately 12/31/2014 — $22.7M (Department of Education)
View all Higher Education Servicing Corp federal contracts →
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