Department of Education awards $47.8M for loan consolidation services to Maximus Education LLC under full and open competition
Contract Overview
Contract Amount: $47,773,131 ($47.8M)
Contractor: Maximus Education LLC
Awarding Agency: Department of Education
Start Date: 2019-12-16
End Date: 2024-07-31
Contract Duration: 1,689 days
Daily Burn Rate: $28.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FUNDING FOR LOAN CONSOLIDATION SERVICES.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Education obligated $47.8 million to MAXIMUS EDUCATION LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FUNDING FOR LOAN CONSOLIDATION SERVICES. Key points: 1. The contract focuses on loan consolidation services, a critical function for student financial aid. 2. Maximus Education LLC is the sole awardee, indicating a specific capability or market position. 3. The contract's duration spans nearly five years, suggesting a long-term need for these services. 4. The 'Other Activities Related to Credit Intermediation' NAICS code points to a specialized financial service sector.
Value Assessment
Rating: good
The contract value of $47.8M over approximately 5 years suggests a significant investment in loan consolidation. Benchmarking against similar contracts for credit intermediation services would be necessary for a precise assessment, but the scale indicates a substantial operational requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows any qualified vendor to bid. This method is expected to yield a fair market price for the services provided.
Taxpayer Impact: Taxpayer funds are being used for loan consolidation services, aiming to streamline student loan management and potentially reduce default rates, which could lead to long-term savings.
Public Impact
Supports federal student loan programs by facilitating consolidation. Aims to improve borrower experience and repayment outcomes. Potential impact on the efficiency of federal student loan servicing operations. Ensures continued access to loan consolidation services for eligible borrowers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data.
- Potential for vendor lock-in given the long contract duration.
- Dependence on a single vendor for a critical financial service.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for service delivery.
- Addresses a core function of student financial aid.
Sector Analysis
The sector involves financial services related to credit intermediation, specifically focusing on student loans. Spending in this area is driven by federal education policy and the need to manage a large portfolio of student debt effectively.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee, Maximus Education LLC, is a large corporation. There is no indication of small business participation in this specific task order.
Oversight & Accountability
The Department of Education is responsible for overseeing this task order. The firm fixed price contract type provides some cost control, but ongoing monitoring of service delivery and performance is crucial for accountability.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Long contract duration may limit future flexibility.
- Potential for vendor performance issues impacting borrowers.
- Lack of explicit small business participation.
- Concentration of a critical service with one provider.
Tags
other-activities-related-to-credit-inter, department-of-education, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $47.8 million to MAXIMUS EDUCATION LLC. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FUNDING FOR LOAN CONSOLIDATION SERVICES.
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 $47.8 million.
What is the period of performance?
Start: 2019-12-16. End: 2024-07-31.
What are the key performance indicators (KPIs) for this loan consolidation service contract, and how is Maximus Education LLC measured against them?
The provided data does not specify the Key Performance Indicators (KPIs) for this task order. Typically, such contracts would include metrics related to processing times, accuracy rates, borrower satisfaction, and compliance with federal regulations. The Department of Education's oversight would involve regular reviews of performance reports submitted by Maximus to ensure these unstated KPIs are being met.
What is the potential risk associated with relying on a single vendor, Maximus Education LLC, for such a critical and long-term service like loan consolidation?
The primary risk of relying on a single vendor for a critical, long-term service is potential vendor lock-in, reduced negotiating leverage for future contracts, and service disruption if the vendor faces financial or operational issues. This necessitates robust contract management and contingency planning by the Department of Education to mitigate these risks.
How does this contract contribute to the overall effectiveness of federal student loan programs and taxpayer value?
This contract aims to enhance the effectiveness of federal student loan programs by streamlining the loan consolidation process, potentially improving borrower repayment rates and reducing defaults. This can lead to better taxpayer value by minimizing losses from defaulted loans and improving the efficiency of loan servicing operations.
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: $68,318,131
Exercised Options: $68,318,131
Current Obligation: $47,773,131
Actual Outlays: $4,479,883
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: EDFSA09D0015
IDV Type: IDC
Timeline
Start Date: 2019-12-16
Current End Date: 2024-07-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2024-06-11
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