Department of Education awards $50M for student loan servicing to Pennsylvania Higher Education Assistance Agency
Contract Overview
Contract Amount: $50,186,102 ($50.2M)
Contractor: Pennslyvania Higher Education Assistance Agency
Awarding Agency: Department of Education
Start Date: 2019-08-31
End Date: 2019-12-15
Contract Duration: 106 days
Daily Burn Rate: $473.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS TASK ORDER IS TO INCORPORATE AND PROVIDE FUNDING FOR TITLE IV SERVICING AND PUBLIC SERVICE LOAN FORGIVENESS SERVICING THROUGH DECEMBER 15, 2019.
Place of Performance
Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17102
Plain-Language Summary
Department of Education obligated $50.2 million to PENNSLYVANIA HIGHER EDUCATION ASSISTANCE AGENCY for work described as: THE PURPOSE OF THIS TASK ORDER IS TO INCORPORATE AND PROVIDE FUNDING FOR TITLE IV SERVICING AND PUBLIC SERVICE LOAN FORGIVENESS SERVICING THROUGH DECEMBER 15, 2019. Key points: 1. Contract awarded via full and open competition, indicating a competitive bidding process. 2. The task order focuses on Title IV servicing and Public Service Loan Forgiveness. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. The contract duration is relatively short at 106 days.
Value Assessment
Rating: good
The contract value of $50.2 million for a 106-day period appears reasonable for specialized loan servicing functions. Benchmarking against similar large-scale federal loan servicing contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting multiple bidders likely participated. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of a competitive process aims to ensure taxpayer funds are used efficiently for essential student loan servicing operations.
Public Impact
Ensures continued student loan servicing for Title IV programs. Supports Public Service Loan Forgiveness program participants. Maintains operational continuity for federal student aid programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration may lead to future re-competition costs.
- Reliance on a single vendor for a critical function.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls under 'Other Activities Related to Credit Intermediation,' a sector involving financial services and loan management. Spending in this area is crucial for the functioning of federal student aid programs.
Small Business Impact
The data indicates the awardee is the Pennsylvania Higher Education Assistance Agency, a state-level entity. There is no specific indication of small business participation in this particular task order.
Oversight & Accountability
The Department of Education is responsible for overseeing this task order. Standard contract management and performance monitoring processes would be in place to ensure compliance and effectiveness.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Short contract duration
- Potential for vendor lock-in
- Dependence on a single entity for critical services
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 $50.2 million to PENNSLYVANIA HIGHER EDUCATION ASSISTANCE AGENCY. THE PURPOSE OF THIS TASK ORDER IS TO INCORPORATE AND PROVIDE FUNDING FOR TITLE IV SERVICING AND PUBLIC SERVICE LOAN FORGIVENESS SERVICING THROUGH DECEMBER 15, 2019.
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 $50.2 million.
What is the period of performance?
Start: 2019-08-31. End: 2019-12-15.
What is the historical performance of the Pennsylvania Higher Education Assistance Agency in managing federal student loan servicing contracts?
Information on the historical performance of the Pennsylvania Higher Education Assistance Agency (PHEAA) in managing federal student loan servicing contracts is crucial for assessing reliability. Past performance reviews, audit findings, and any documented issues or successes in handling similar large-scale federal contracts would provide valuable insights into their operational capabilities and adherence to federal regulations.
How does the cost per loan serviced compare to industry benchmarks for this task order?
Comparing the cost per loan serviced under this $50.2 million task order to industry benchmarks is essential for evaluating value for money. Understanding the average cost for similar servicing activities by other federal agencies or private sector entities would highlight potential efficiencies or cost overruns, informing future contract negotiations and budget allocations.
What are the key performance indicators (KPIs) used to measure the success of this loan servicing contract?
Key performance indicators (KPIs) for this loan servicing contract are vital for measuring effectiveness and accountability. These likely include metrics such as timely processing of payments, accuracy in loan balance updates, successful resolution of borrower inquiries, compliance with federal regulations, and the efficiency of Public Service Loan Forgiveness application processing.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Commonwealth of Pennsylvania
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: $73,222,670
Exercised Options: $73,222,670
Current Obligation: $50,186,102
Actual Outlays: $59,186,102
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: EDFSA09D0014
IDV Type: IDC
Timeline
Start Date: 2019-08-31
Current End Date: 2019-12-15
Potential End Date: 2019-12-15 00:00:00
Last Modified: 2022-04-02
More Contracts from Pennslyvania Higher Education Assistance Agency
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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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