Department of Education awards $303M for Student Loan Servicing O&M Task Order to MAXIMUS EDUCATION LLC
Contract Overview
Contract Amount: $303,151,005 ($303.2M)
Contractor: Maximus Education LLC
Awarding Agency: Department of Education
Start Date: 2024-07-01
End Date: 2026-08-29
Contract Duration: 789 days
Daily Burn Rate: $384.2K/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 $303.2 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. Significant contract value for student loan servicing operations. 2. MAXIMUS EDUCATION LLC is the sole awardee. 3. Potential for long-term student loan servicing. 4. Fixed Price with Economic Price Adjustment contract type. 5. No small business participation indicated.
Value Assessment
Rating: good
The contract value of $303M over approximately 2.6 years suggests a substantial operational scope. Benchmarking against similar large-scale student loan servicing contracts would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices, though specific pricing details are not provided.
Taxpayer Impact: Taxpayer funds are being utilized for essential student loan servicing operations, aiming for efficient program management.
Public Impact
Impacts millions of federal student loan borrowers through servicing operations. Ensures continuity of critical student loan administration. Potential for improved borrower experience through dedicated servicing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential for cost increases due to economic price adjustment.
Positive Signals
- Awarded under full and open competition.
- Clear task order requirements for student loan servicing.
Sector Analysis
This contract falls within the 'Other Activities Related to Credit Intermediation' sector, specifically focusing on student loan servicing. Spending in this area is crucial for the administration of federal education programs.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, MAXIMUS EDUCATION LLC, is likely a large business, and subcontracting opportunities for small businesses are not explicitly detailed in this award.
Oversight & Accountability
The Department of Education is responsible for overseeing this task order to ensure compliance with contract requirements and efficient student loan servicing. Accountability for performance and financial management rests with the agency.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- No small business participation.
- Potential for cost escalation due to economic price adjustment.
- Sole awardee may limit future competition.
- Reliance on a single contractor for critical student loan operations.
Tags
other-activities-related-to-credit-inter, department-of-education, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $303.2 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 $303.2 million.
What is the period of performance?
Start: 2024-07-01. End: 2026-08-29.
What is the historical performance of MAXIMUS EDUCATION LLC in student loan servicing, and how does it compare to industry benchmarks?
MAXIMUS EDUCATION LLC has a history of performing government contracts, including student loan servicing. A thorough review of their past performance metrics, client feedback, and any documented issues or successes would be necessary to assess their capabilities against industry standards. This includes evaluating their efficiency, accuracy, and compliance in handling borrower inquiries and financial transactions.
What are the specific economic factors that could trigger price adjustments under the 'Economic Price Adjustment' clause, and what is the potential financial exposure for the government?
The 'Economic Price Adjustment' clause typically ties price changes to specific, verifiable economic indicators such as inflation rates (e.g., CPI), labor cost indices, or material cost fluctuations relevant to the services provided. The potential financial exposure depends on the defined indices, the caps on adjustments, and the duration of the contract. Without specific details on the index and caps, the exact exposure is unknown but could lead to increased costs if inflation is high.
How will the effectiveness of the student loan servicing be measured, and what are the key performance indicators (KPIs) for this task order?
The effectiveness of student loan servicing is typically measured through KPIs such as call center wait times, borrower satisfaction rates, accuracy of payment processing, default prevention rates, and compliance with federal regulations. The specific KPIs for this task order would be detailed within the contract's Statement of Work (SOW) and performance work statement (PWS), outlining the expected service levels and the metrics used for evaluation.
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: $303,151,005
Exercised Options: $303,151,005
Current Obligation: $303,151,005
Actual Outlays: $586,564,205
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: 2024-07-01
Current End Date: 2026-08-29
Potential End Date: 2026-08-29 00:00:00
Last Modified: 2026-02-19
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