Department of Education awards $762M contract to Maximus Education LLC for loan services, spanning 2019-2024
Contract Overview
Contract Amount: $762,138,897 ($762.1M)
Contractor: Maximus Education LLC
Awarding Agency: Department of Education
Start Date: 2019-12-14
End Date: 2024-12-31
Contract Duration: 1,844 days
Daily Burn Rate: $413.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROVIDE DIRECT LOAN SERVICES SUCH AS CALL CENTER AND FINANCIAL REPORTING - NAVIENT FROM 12/15/2019 THROUGH 12/14/2020
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Education obligated $762.1 million to MAXIMUS EDUCATION LLC for work described as: PROVIDE DIRECT LOAN SERVICES SUCH AS CALL CENTER AND FINANCIAL REPORTING - NAVIENT FROM 12/15/2019 THROUGH 12/14/2020 Key points: 1. Contract value is substantial at over $762 million. 2. Maximus Education LLC is the sole awardee. 3. The contract covers a significant period of 5 years. 4. This contract falls under the 'Other Activities Related to Credit Intermediation' NAICS code.
Value Assessment
Rating: questionable
The contract value is high, but specific performance metrics and pricing breakdowns are not detailed in the provided data. Benchmarking against similar loan servicing contracts is difficult without more granular cost information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the data does not specify the number of bids received or the evaluation criteria used, making it hard to assess the effectiveness of price discovery.
Taxpayer Impact: Taxpayer funds are being used for loan servicing, with the total amount exceeding $762 million. The efficiency and effectiveness of these services will determine the ultimate value for taxpayers.
Public Impact
Millions of student loan borrowers may be impacted by the services provided. The Department of Education relies on this contract for critical loan administration functions. Efficient loan servicing can positively affect borrower repayment experiences and federal financial management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Limited insight into pricing justification.
- Potential for cost overruns given the contract duration and value.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for services.
- Clear contract end date for future re-evaluation.
Sector Analysis
This contract falls under the 'Other Activities Related to Credit Intermediation' sector, which involves financial services and loan administration. Spending in this sector can vary widely based on federal programs and economic conditions.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Maximus Education LLC is a large business, suggesting that small business participation may be limited unless subcontracting opportunities exist.
Oversight & Accountability
The Department of Education is responsible for overseeing this contract. Robust oversight is crucial to ensure the contractor meets performance standards and manages funds effectively, especially given the significant financial commitment.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- High contract value.
- Long contract duration.
- Lack of detailed performance metrics.
- Potential for vendor lock-in.
- Reliance on a single vendor for critical services.
Tags
other-activities-related-to-credit-inter, department-of-education, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $762.1 million to MAXIMUS EDUCATION LLC. PROVIDE DIRECT LOAN SERVICES SUCH AS CALL CENTER AND FINANCIAL REPORTING - NAVIENT FROM 12/15/2019 THROUGH 12/14/2020
Who is the contractor on this award?
The obligated recipient is MAXIMUS EDUCATION LLC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $762.1 million.
What is the period of performance?
Start: 2019-12-14. End: 2024-12-31.
What are the key performance indicators (KPIs) for this contract, and how is Maximus Education LLC's performance measured against them?
Key performance indicators are essential for evaluating the effectiveness of loan servicing. Without specific KPIs, it's difficult to ascertain if Maximus Education LLC is meeting service level agreements, such as call wait times, accuracy of financial reporting, and borrower satisfaction. The Department of Education should have defined metrics to ensure efficient and effective service delivery.
How does the per-unit cost of servicing loans under this contract compare to industry benchmarks or previous contracts?
Benchmarking the per-unit cost is critical for assessing value for money. Given the contract's total value and duration, understanding the cost per loan serviced, per call handled, or per report generated would allow for a comparison against industry standards and historical data. This analysis would reveal potential inefficiencies or cost savings.
What mechanisms are in place to ensure accountability and mitigate risks associated with a large, long-term contract for financial services?
Accountability and risk mitigation are paramount. Mechanisms should include regular performance reviews, audits, clear reporting requirements, and contingency plans for service disruptions. The Department of Education must actively monitor contractor performance, financial stability, and compliance with regulations to safeguard taxpayer interests and ensure uninterrupted service delivery.
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: 1891 METRO CENTER DR, RESTON, VA, 20190
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $762,138,897
Exercised Options: $762,138,897
Current Obligation: $762,138,897
Actual Outlays: $1,095,249,438
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: EDFSA09D0015
IDV Type: IDC
Timeline
Start Date: 2019-12-14
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-09-08
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