Department of Education's $24.9M Title IV Aid Servicing Contract Awarded to Higher Education Servicing Corp
Contract Overview
Contract Amount: $24,936,670 ($24.9M)
Contractor: Higher Education Servicing Corp
Awarding Agency: Department of Education
Start Date: 2016-10-01
End Date: 2017-09-30
Contract Duration: 364 days
Daily Burn Rate: $68.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF / CRITICAL FUNCTION IDIQ: SERVICING OF TITLE IV STUDENT FINANCIAL AID, IN ACCORDANCE WITH SECTION 2212 OF THE HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010 (PUB.L. 111-152, 124 STAT. 1029). TASK ORDER: SERVICING OF TITLE IV FINANCIAL AID, FROM 10/01/2014 TO 09/30/2015. PROVIDES FUNDING FOR TITLE IV AID SERVICING, THROUGH APPROXIMATELY 12/31/2017.
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76016
State: Texas Government Spending
Plain-Language Summary
Department of Education obligated $24.9 million to HIGHER EDUCATION SERVICING CORP for work described as: IGF::CT::IGF / CRITICAL FUNCTION IDIQ: SERVICING OF TITLE IV STUDENT FINANCIAL AID, IN ACCORDANCE WITH SECTION 2212 OF THE HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010 (PUB.L. 111-152, 124 STAT. 1029). TASK ORDER: SERVICING OF TITLE IV FINANCIAL AID, FROM 10/01/2014 TO … Key points: 1. The contract supports critical functions for Title IV student financial aid. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract value is substantial, reflecting the importance of aid servicing. 4. The sector is related to credit intermediation within higher education.
Value Assessment
Rating: fair
The contract value of $24.9 million for a 1-year period appears reasonable for critical financial aid servicing. Benchmarking against similar contracts for student loan servicing would provide a clearer assessment of value.
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 vendors can bid.
Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for essential student aid services.
Public Impact
Ensures continued servicing of Title IV federal student financial aid. Supports the operational needs of the Department of Education in managing student loans. Impacts students and educational institutions relying on federal financial aid programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope expands beyond initial estimates.
- Dependence on a single vendor for critical financial aid functions.
Positive Signals
- Awarded through full and open competition.
- Supports essential government function for student financial aid.
Sector Analysis
This contract falls within the 'Other Activities Related to Credit Intermediation' sector, specifically focusing on the servicing of federal student financial aid. Spending in this area is crucial for the functioning of higher education.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Department of Education is responsible for overseeing this contract. The Inspector General's office may provide oversight to ensure compliance and prevent fraud, waste, and abuse.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Critical function support
- Full and open competition
- Firm fixed price contract type
Tags
other-activities-related-to-credit-inter, department-of-education, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $24.9 million to HIGHER EDUCATION SERVICING CORP. IGF::CT::IGF / CRITICAL FUNCTION IDIQ: SERVICING OF TITLE IV STUDENT FINANCIAL AID, IN ACCORDANCE WITH SECTION 2212 OF THE HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010 (PUB.L. 111-152, 124 STAT. 1029). TASK ORDER: SERVICING OF TITLE IV FINANCIAL AID, FROM 10/01/2014 TO 09/30/2015. PROVIDES FUNDING FOR TITLE IV AID SERVICING, THROUGH APPROXIMATELY 12/31/2017.
Who is the contractor on this award?
The obligated recipient is HIGHER EDUCATION SERVICING CORP.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $24.9 million.
What is the period of performance?
Start: 2016-10-01. End: 2017-09-30.
What is the projected cost per student or per loan serviced under this contract?
The provided data does not include a per-student or per-loan cost metric. To determine this, one would need the total number of students or loans serviced during the contract period and divide it by the total contract value of $24.9 million. This would offer a more granular view of efficiency.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
The data does not specify the key performance indicators (KPIs) or the measurement methods used for this contract. Effective oversight would require clearly defined KPIs related to timeliness, accuracy, and customer satisfaction in aid servicing, with regular performance reviews.
Are there any identified risks associated with the vendor's ability to perform these critical financial aid servicing functions?
The data does not explicitly list risks associated with the vendor's performance. However, any contract of this magnitude supporting critical functions carries inherent risks, such as data security breaches, system failures, or vendor financial instability, which should be actively monitored.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4381 W GREEN OAKS BLVD STE 200, ARLINGTON, TX, 76016
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,936,670
Exercised Options: $24,936,670
Current Obligation: $24,936,670
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: EDFSA12D0005
IDV Type: IDC
Timeline
Start Date: 2016-10-01
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2020-07-08
More Contracts from Higher Education Servicing Corp
- Critical Function Base Award: Servicing of Title IV Student Financial AID, in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l. 111-152, 124 Stat. 1029) for the Period of 6/17/2014 to 6/16/2019. Task Order: Servicing of Title IV Student Financial AID in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l.111-152, 124 Stat. 1029) for the Period of 09/01/2018 to 08/31/2019. Modification: the Purpose of This Modification IS to Create a NEW Task Order for Contract Ed-Fsa-12-D-0005 With the Period of Performance: 9/01/2018 - 8/31/2019, and Provide Funding for Title IV AID Servicing Through Approximately 12/31/2018 — $37.5M (Department of Education)
- Critical Function Base Award: Servicing of Title IV Student Financial AID, in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l. 111-152, 124 Stat. 1029) for the Period of 1/23/2012 to 9/30/2019. Task Order: Servicing of Title IV Student Financial AID in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l.111-152, 124 Stat. 1029) for the Period of 10/1/2017 to 8/31/2018 — $25.7M (Department of Education)
- / Critical Function Idiq: Servicing of Title IV Student Financial AID, in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l. 111-152, 124 Stat. 1029). Task Order: Servicing of Title IV Financial AID, From 10/01/2014 to 09/30/2015. Provides Funding for Servicing and Development&maintenance, Through Approximately 12/31/2014 — $22.7M (Department of Education)
- / Critical Function Idiq: Servicing of Title IV Student Financial AID, in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l. 111-152, 124 Stat. 1029). Task Order: Servicing of Title IV Financial AID, From 10/01/2015 to 09/30/2016 — $22.1M (Department of Education)
View all Higher Education Servicing Corp federal contracts →
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