Department of Education awards $56.8M for Student Loan Servicing O&M Task Order to Maximus Education LLC
Contract Overview
Contract Amount: $56,815,000 ($56.8M)
Contractor: Maximus Education LLC
Awarding Agency: Department of Education
Start Date: 2024-04-01
End Date: 2025-11-20
Contract Duration: 598 days
Daily Burn Rate: $95.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: OPERATIONS AND MAINTENANCE (O&M) TASK ORDER FOR STUDENT LOAN SERVICING IN ACCORDANCE WITH THE REQUIREMENTS OF THE USDS CONTRACT. ALL WORK AND DELIVERABLES PROVIDED MUST BE IN ACCORDANCE WITH THE REQUIREMENTS OF THE CONTRACT FOR THE TASK ORDER.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202
Plain-Language Summary
Department of Education obligated $56.8 million to MAXIMUS EDUCATION LLC for work described as: OPERATIONS AND MAINTENANCE (O&M) TASK ORDER FOR STUDENT LOAN SERVICING IN ACCORDANCE WITH THE REQUIREMENTS OF THE USDS CONTRACT. ALL WORK AND DELIVERABLES PROVIDED MUST BE IN ACCORDANCE WITH THE REQUIREMENTS OF THE CONTRACT FOR THE TASK ORDER. Key points: 1. The contract focuses on essential student loan servicing operations and maintenance. 2. Maximus Education LLC, a significant player in government contracting, secured this award. 3. The award is a fixed-price contract with economic price adjustment, indicating potential for cost fluctuations. 4. This task order falls under the 'Other Activities Related to Credit Intermediation' NAICS code.
Value Assessment
Rating: good
The contract value of $56.8 million for a 598-day period appears reasonable for student loan servicing operations. Benchmarking against similar large-scale O&M contracts for federal services suggests this pricing is within expected ranges, though specific service level agreements would provide a more precise comparison.
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 more competitive pricing as multiple qualified vendors can bid.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential student loan servicing.
Public Impact
Millions of student loan borrowers will be impacted by the services provided under this contract. Efficient loan servicing is crucial for the financial well-being of students and the government's portfolio. The Department of Education relies on these services to manage loan repayments and provide borrower assistance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost increases due to economic price adjustment.
- Dependence on a single vendor for critical student loan operations.
Positive Signals
- Awarded through full and open competition.
- Clear task order requirements aligned with contract specifications.
Sector Analysis
This contract falls within the broader financial services sector, specifically focusing on credit intermediation and loan servicing. Spending in this area is consistent with the government's ongoing need to manage federal student loan programs effectively.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Maximus Education LLC, a large business. There is no explicit mention of small business subcontracting goals in the provided data.
Oversight & Accountability
The Department of Education is the contracting and administrative agency, responsible for overseeing the performance of this task order. Standard contract management and oversight procedures are expected to be in place.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for cost escalation due to EPA.
- Concentration of critical loan servicing functions with one vendor.
- Lack of explicit small business participation noted.
- Performance metrics not detailed in provided data.
Tags
other-activities-related-to-credit-inter, department-of-education, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $56.8 million to MAXIMUS EDUCATION LLC. OPERATIONS AND MAINTENANCE (O&M) TASK ORDER FOR STUDENT LOAN SERVICING IN ACCORDANCE WITH THE REQUIREMENTS OF THE USDS CONTRACT. ALL WORK AND DELIVERABLES PROVIDED MUST BE IN ACCORDANCE WITH THE REQUIREMENTS OF THE CONTRACT FOR THE TASK ORDER.
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 $56.8 million.
What is the period of performance?
Start: 2024-04-01. End: 2025-11-20.
What specific performance metrics are included in the task order to ensure efficient and effective student loan servicing?
The provided data does not detail specific performance metrics. However, typical student loan servicing contracts include key performance indicators (KPIs) related to call center wait times, resolution rates, data accuracy, and compliance with federal regulations. The Department of Education would likely monitor these metrics to ensure Maximus Education LLC meets its contractual obligations effectively.
How will the economic price adjustment clause be managed to mitigate potential cost overruns for taxpayers?
The economic price adjustment (EPA) clause allows for adjustments to the contract price based on specified economic factors, such as inflation indices. The Department of Education will manage this by closely monitoring the triggering indices and ensuring any price adjustments are calculated strictly in accordance with the contract's EPA formula, preventing arbitrary cost increases.
What is the potential impact on student borrowers if Maximus Education LLC experiences operational disruptions or fails to meet service level agreements?
Operational disruptions or failures to meet service level agreements could lead to significant negative impacts on student borrowers, including delayed responses to inquiries, incorrect loan information, missed payment notifications, and potential credit reporting errors. The Department of Education's oversight is critical to ensuring timely corrective actions are taken to minimize borrower impact.
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: 5
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
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: $56,815,000
Exercised Options: $56,815,000
Current Obligation: $56,815,000
Actual Outlays: $107,425,319
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 91003123D0001
IDV Type: IDC
Timeline
Start Date: 2024-04-01
Current End Date: 2025-11-20
Potential End Date: 2025-11-20 00:00:00
Last Modified: 2025-12-15
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