Department of Education awards $66.4M for student financial aid servicing over 4 years
Contract Overview
Contract Amount: $66,359,528 ($66.4M)
Contractor: Missouri Higher Education Loan Authority
Awarding Agency: Department of Education
Start Date: 2018-09-01
End Date: 2019-12-31
Contract Duration: 486 days
Daily Burn Rate: $136.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 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-11-D-0012 WITH THE PERIOD OF PERFORMANCE: 9/01/2018 - 8/31/2019, AND PROVIDE FUNDING FOR TITLE IV AID SERVICING THROUGH APPROXIMATELY 12/31/2018.
Place of Performance
Location: CHESTERFIELD, SAINT LOUIS County, MISSOURI, 63005
State: Missouri Government Spending
Plain-Language Summary
Department of Education obligated $66.4 million to MISSOURI HIGHER EDUCATION LOAN AUTHORITY for work described as: 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… Key points: 1. The contract supports Title IV student financial aid servicing, a critical function for federal student loan programs. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract value of $66.4M over four years appears reasonable for the scope of services. 4. The sector is related to credit intermediation, specifically student loan servicing.
Value Assessment
Rating: good
The award amount of $66.4M over approximately 4 years for student financial aid servicing seems in line with similar government contracts for this type of administrative function. Benchmarking against other large-scale student loan servicing contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages competitive pricing and potentially more efficient service delivery.
Public Impact
Ensures continued access to federal student financial aid for students. Supports the operational efficiency of the Department of Education's student loan programs. Impacts millions of students and borrowers by facilitating financial aid processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if contract is repeatedly extended.
- Reliance on a single vendor for critical financial aid functions.
Positive Signals
- Full and open competition utilized.
- Clear period of performance defined.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the 'Other Activities Related to Credit Intermediation' sector, specifically focusing on the administration and servicing of federal student financial aid. Spending in this area is substantial, driven by the scale of federal student loan programs.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is a state authority, suggesting limited direct impact or opportunity for small businesses in this specific award.
Oversight & Accountability
The Department of Education is responsible for overseeing this contract. The firm fixed price nature provides some cost control, but ongoing performance monitoring is crucial to ensure effective servicing of student financial aid.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Contract duration is substantial (4 years).
- Potential for single point of failure if vendor performance degrades.
- Reliance on vendor for sensitive student financial data.
- Scope of 'servicing' requires detailed understanding for full assessment.
Tags
other-activities-related-to-credit-inter, department-of-education, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $66.4 million to MISSOURI HIGHER EDUCATION LOAN AUTHORITY. 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
Who is the contractor on this award?
The obligated recipient is MISSOURI HIGHER EDUCATION LOAN AUTHORITY.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $66.4 million.
What is the period of performance?
Start: 2018-09-01. End: 2019-12-31.
What is the specific scope of 'servicing' covered by this contract, and how does it compare to industry standards for student loan administration?
The contract specifies servicing of Title IV student financial aid in accordance with Section 2212 of the Health Care and Education Reconciliation Act of 2010. This typically includes functions like processing loan applications, disbursing funds, managing repayment schedules, and providing borrower support. A detailed statement of work would clarify the exact scope and allow for comparison to industry benchmarks for efficiency and service quality.
Given the critical nature of student financial aid, what are the contingency plans if the awarded vendor experiences operational failures or data breaches?
Contingency planning for critical government contracts, especially those involving sensitive financial data, is paramount. While not detailed in the provided data, robust contracts typically include clauses for business continuity, disaster recovery, and data security incident response. The Department of Education would likely have protocols in place to ensure uninterrupted service and data integrity, potentially involving backup vendors or internal capabilities.
How does the cost of this contract compare to the value and efficiency gains achieved in student financial aid processing over its duration?
The contract value of $66.4M over four years represents a significant investment in student financial aid servicing. To assess its true value, a cost-benefit analysis would be needed, comparing the expenditure against metrics like improved loan default rates, borrower satisfaction, administrative efficiency, and the overall smooth functioning of federal aid programs. Without performance data, a definitive assessment of value is difficult.
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: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 633 SPIRIT DR, CHESTERFIELD, MO, 63005
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $79,991,141
Exercised Options: $79,991,141
Current Obligation: $66,359,528
Actual Outlays: $18,435,184
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: EDFSA11D0012
IDV Type: IDC
Timeline
Start Date: 2018-09-01
Current End Date: 2019-12-31
Potential End Date: 2020-02-29 00:00:00
Last Modified: 2020-08-25
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