DoD's $5.5M Education Records Verification Contract Awarded to National Student Clearinghouse
Contract Overview
Contract Amount: $5,503,096 ($5.5M)
Contractor: National Student Clearinghouse
Awarding Agency: Department of Defense
Start Date: 2025-07-01
End Date: 2026-06-30
Contract Duration: 364 days
Daily Burn Rate: $15.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EDUCATION RECORDS VERIFICATION
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $5.5 million to NATIONAL STUDENT CLEARINGHOUSE for work described as: EDUCATION RECORDS VERIFICATION Key points: 1. The contract is for education records verification services. 2. National Student Clearinghouse is the sole awardee. 3. The contract value is $5.5 million over one year. 4. The service falls under Web Search Portals and Other Information Services. 5. This is a definitive contract with a firm fixed price.
Value Assessment
Rating: fair
The contract value of $5.5 million for a one-year period for education records verification appears reasonable given the specialized nature of the service. Benchmarking against similar government contracts for information services is difficult without more specific details on the scope and volume of verification required.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure, which could lead to higher costs for the government compared to a competed contract.
Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition may result in a less optimal price than could be achieved through a competitive bidding process.
Public Impact
Ensures the accuracy of educational credentials for personnel within the Department of Defense. Supports national security by verifying the backgrounds of individuals requiring security clearances. Streamlines the process of background checks for military and civilian personnel. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
Positive Signals
- Essential service for national security
- Established provider with existing infrastructure
Sector Analysis
The contract falls under the 'Web Search Portals and All Other Information Services' category. Spending in this sector can vary widely, but for specialized verification services, costs are often driven by proprietary databases and established processes rather than broad market competition.
Small Business Impact
This contract was awarded to a single, non-small business entity. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract is a definitive contract, suggesting a clear scope and terms. However, the sole-source nature warrants careful oversight to ensure the price remains fair and reasonable throughout the contract period.
Related Government Programs
- Web Search Portals and All Other Information Services
- Department of Defense Contracting
- Defense Counterintelligence and Security Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Limited transparency on justification for sole-source.
- No apparent small business participation.
Tags
web-search-portals-and-all-other-informa, department-of-defense, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.5 million to NATIONAL STUDENT CLEARINGHOUSE. EDUCATION RECORDS VERIFICATION
Who is the contractor on this award?
The obligated recipient is NATIONAL STUDENT CLEARINGHOUSE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).
What is the total obligated amount?
The obligated amount is $5.5 million.
What is the period of performance?
Start: 2025-07-01. End: 2026-06-30.
What is the justification for the sole-source award, and has the government explored alternative solutions or potential competitors?
The justification for a sole-source award typically involves unique capabilities, proprietary data, or a lack of available alternatives. Without further details, it's difficult to assess the validity of this justification. The government should have conducted market research to confirm no other capable sources exist or could be developed. Exploring alternatives could ensure better value and competitive pricing.
How does the cost of this sole-source contract compare to industry benchmarks for similar education verification services, considering the volume and scope?
Benchmarking this sole-source contract is challenging without detailed performance metrics and specific service levels. However, the lack of competition inherently removes the downward pressure on pricing that a competitive bidding process provides. The government should actively monitor the cost against any available internal or external benchmarks for similar services to ensure the price remains fair and reasonable over the contract term.
What mechanisms are in place to ensure the effectiveness and efficiency of the National Student Clearinghouse's verification services under this contract?
Effectiveness and efficiency are typically ensured through performance standards, service level agreements (SLAs), and regular reporting requirements outlined in the contract. The Department of Defense should have clear metrics for accuracy, turnaround time, and data security. Periodic reviews and audits would further verify that the contractor is meeting these expectations and providing value for the taxpayer.
Industry Classification
NAICS: Information › Web Search Portals, Libraries, Archives, and Other Information Services › Web Search Portals and All Other Information Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HS002125RE015
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2300 DULLES STATION BLVD STE 220, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,483,321
Exercised Options: $7,106,192
Current Obligation: $5,503,096
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-07-01
Current End Date: 2026-06-30
Potential End Date: 2028-06-30 00:00:00
Last Modified: 2025-12-09
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