Department of Education awards $98.8M contract for student financial aid servicing to Pennsylvania Higher Education Assistance Agency
Contract Overview
Contract Amount: $98,808,377 ($98.8M)
Contractor: Pennslyvania Higher Education Assistance Agency
Awarding Agency: Department of Education
Start Date: 2013-12-17
End Date: 2014-08-31
Contract Duration: 257 days
Daily Burn Rate: $384.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: IGF::CT::IGF / CRITICAL FUNCTION TASK ORDER 0009 - SERVICING OF TITLE IV STUDENT FINANCIAL AID.
Place of Performance
Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17102
Plain-Language Summary
Department of Education obligated $98.8 million to PENNSLYVANIA HIGHER EDUCATION ASSISTANCE AGENCY for work described as: IGF::CT::IGF / CRITICAL FUNCTION TASK ORDER 0009 - SERVICING OF TITLE IV STUDENT FINANCIAL AID. Key points: 1. Contract awarded for critical function task order 0009. 2. Servicing of Title IV Student Financial Aid is the core service. 3. Fixed Price with Economic Price Adjustment contract type. 4. No small business participation noted.
Value Assessment
Rating: good
The contract value of $98.8M for a 257-day duration appears reasonable for the critical function of student financial aid servicing. Benchmarking against similar large-scale federal IT or administrative service contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing and good value for the government.
Taxpayer Impact: Taxpayer funds are utilized for the administration and servicing of federal student financial aid programs, ensuring efficient program delivery.
Public Impact
Ensures continued access to federal student financial aid for millions of students. Supports the operational integrity of the Title IV student loan programs. Facilitates the disbursement and management of student financial assistance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential for economic price adjustments to increase final cost.
Positive Signals
- Awarded under full and open competition.
- Supports a critical government function.
Sector Analysis
The IT and administrative services sector supporting financial aid is crucial for educational access. Spending benchmarks for similar large-scale federal contract vehicles for student loan servicing would be relevant for a deeper analysis.
Small Business Impact
The data indicates no small business participation in this contract. Further investigation could explore if opportunities were missed or if the nature of the service inherently favors larger entities.
Oversight & Accountability
The contract is managed by the Department of Education, which has oversight responsibilities for federal student financial aid programs. Task order structure implies specific deliverables and performance metrics.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential cost overruns due to economic price adjustments.
- Lack of small business involvement.
- Contract duration is relatively short for a critical function.
- Dependence on a single entity for a critical function.
Tags
other-activities-related-to-credit-inter, department-of-education, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $98.8 million to PENNSLYVANIA HIGHER EDUCATION ASSISTANCE AGENCY. IGF::CT::IGF / CRITICAL FUNCTION TASK ORDER 0009 - SERVICING OF TITLE IV STUDENT FINANCIAL AID.
Who is the contractor on this award?
The obligated recipient is PENNSLYVANIA HIGHER EDUCATION ASSISTANCE AGENCY.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $98.8 million.
What is the period of performance?
Start: 2013-12-17. End: 2014-08-31.
What specific metrics are used to evaluate the performance of the Pennsylvania Higher Education Assistance Agency in servicing student financial aid?
Performance evaluation likely centers on key operational metrics such as application processing times, accuracy rates in data management, student and institution support responsiveness, and compliance with federal regulations. The Department of Education would establish specific Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) within the contract to monitor the agency's effectiveness in fulfilling its critical function.
How does the 'Economic Price Adjustment' clause potentially impact the final cost to taxpayers?
The Economic Price Adjustment (EPA) clause allows for adjustments to the contract price based on fluctuations in specific economic indicators, such as inflation or changes in labor/material costs. While intended to protect the contractor from unforeseen cost increases, it introduces uncertainty for taxpayers, as the final cost could exceed the initial fixed price estimate if these indicators rise significantly.
What is the long-term strategy for student financial aid servicing, and how does this contract fit into it?
This contract represents a task order for a specific period, suggesting it's part of a broader, potentially ongoing strategy for managing federal student financial aid. The long-term strategy likely involves ensuring efficient, compliant, and cost-effective servicing of aid programs. This specific award aims to maintain continuity for critical functions while potentially allowing for future re-competition or strategic adjustments.
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: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Commonwealth of Pennsylvania (UEI: 003027539)
Address: 1200 NORTH SEVENTH STREET, HARRISBURG, PA, 17102
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $101,506,176
Exercised Options: $101,506,176
Current Obligation: $98,808,377
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: EDFSA09D0014
IDV Type: IDC
Timeline
Start Date: 2013-12-17
Current End Date: 2014-08-31
Potential End Date: 2014-08-31 00:00:00
Last Modified: 2019-08-30
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- Servicing of Title IV Student Financial AID, From 9/1/2016 Through 8/31/2017. Provides Funding for Title IV AID Servicing, Through Approximately 12/31/2016. Provides Funding for the Delinquency Reduction Compensation Program, in a Not-To-Exceed Amount of $500,000 PER Quarter and $2,000,000 Annually — $183.5M (Department of Education)
- / Critical Function Idiq: Servicing of Title IV Student Financial AID Task Order: Servicing of Title IV Student Financial AID, From 9/1/2015 Through 8/31/2016. Provides Funding for Title IV AID Servicing Through Approximately 12/21/2015 — $175.5M (Department of Education)
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