Department of Education awards $25.7M for student financial aid servicing, highlighting critical function
Contract Overview
Contract Amount: $25,741,844 ($25.7M)
Contractor: Higher Education Servicing Corp
Awarding Agency: Department of Education
Start Date: 2017-10-01
End Date: 2018-08-31
Contract Duration: 334 days
Daily Burn Rate: $77.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF 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.
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76016
State: Texas Government Spending
Plain-Language Summary
Department of Education obligated $25.7 million to HIGHER EDUCATION SERVICING CORP for work described as: IGF::CT::IGF 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 O… Key points: 1. The contract supports a critical government function related to student financial aid. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract value is $25.7 million over a period of 334 days. 4. The sector involves credit intermediation, specifically related to educational financing.
Value Assessment
Rating: fair
The contract value of $25.7 million for a 334-day period appears reasonable for servicing Title IV student financial aid. Benchmarking against similar contracts for financial aid servicing would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process generally leads to better price discovery and potentially more competitive pricing.
Taxpayer Impact: The efficient servicing of student financial aid ensures that federal funds are managed effectively, benefiting students and taxpayers by maintaining program integrity.
Public Impact
Ensures continued access to federal student financial aid for eligible students. Supports the operational continuity of critical government functions related to education. Maintains the flow of funds and information for student loan programs. Contributes to the overall stability of the higher education financing system.
Waste & Efficiency Indicators
Waste Risk Score: 77 / 10
Warning Flags
- Contract duration is relatively short (334 days), potentially leading to frequent re-competition and associated transition costs.
- Reliance on a single awardee for a critical function could pose a risk if performance issues arise.
Positive Signals
- Awarded under full and open competition, indicating a robust market.
- Supports a vital government program with clear statutory requirements.
- Fixed price contract provides cost certainty for the government.
Sector Analysis
This contract falls within the 'Other Activities Related to Credit Intermediation' sector, specifically focusing on the servicing of Title IV student financial aid. Spending in this area is crucial for the functioning of federal education programs.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of Education, which has oversight responsibilities for federal student financial aid programs. The IG's role would be to ensure compliance and proper execution of the contract.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Critical function reliance
- Short contract duration
- Potential for vendor lock-in if competition is limited in future
- Need for robust performance monitoring
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 $25.7 million to HIGHER EDUCATION SERVICING CORP. IGF::CT::IGF 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.
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 $25.7 million.
What is the period of performance?
Start: 2017-10-01. End: 2018-08-31.
What is the historical performance of HIGHER EDUCATION SERVICING CORP in servicing federal student financial aid programs?
Information regarding the historical performance of HIGHER EDUCATION SERVICING CORP is not provided in the data. A thorough review of past performance, including any past performance evaluations or contract disputes, would be necessary to assess their reliability and effectiveness in fulfilling the requirements of this critical function.
What are the key performance indicators (KPIs) for this contract, and how is compliance measured?
The specific Key Performance Indicators (KPIs) and compliance measurement methods for this contract are not detailed in the provided data. Typically, such contracts would include metrics related to accuracy, timeliness of processing, customer service, and adherence to regulatory requirements for Title IV aid servicing.
What is the potential impact of contract consolidation or fragmentation on the efficiency of student financial aid servicing?
Contract consolidation could lead to economies of scale and streamlined operations, potentially reducing costs and improving efficiency. Conversely, fragmentation might foster competition and innovation but could also increase administrative complexity and coordination challenges. The optimal approach depends on market dynamics and the specific needs of the program.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $37,517,936
Exercised Options: $25,741,844
Current Obligation: $25,741,844
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: 2017-10-01
Current End Date: 2018-08-31
Potential End Date: 2018-08-31 00:00:00
Last Modified: 2020-07-08
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 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)
- / 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 — $22.1M (Department of Education)
View all Higher Education Servicing Corp federal contracts →
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