Department of Education's $4.3M Perkins Bridge Contract Awarded to Educational Computer Systems, Inc
Contract Overview
Contract Amount: $4,288,116 ($4.3M)
Contractor: Educational Computer Systems, Inc.
Awarding Agency: Department of Education
Start Date: 2025-08-01
End Date: 2026-04-30
Contract Duration: 272 days
Daily Burn Rate: $15.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TITLE IV AID SERVICING (PERKINS)BRIDGE CONTRACT. SUPPORT FOR THE LOAN PORTFOLIO, COMPRISED OF SCHOOL-SERVICED AND FEDERALLY-SERVICED BORROWERS. CONTINUOUS AND RECURRING SERVICES SUPPORT PROGRAMS UNDER TITLE IV INCLUDES GRANTS, LOANS, AND WORK STUDY
Place of Performance
Location: CORAOPOLIS, ALLEGHENY County, PENNSYLVANIA, 15108
Plain-Language Summary
Department of Education obligated $4.3 million to EDUCATIONAL COMPUTER SYSTEMS, INC. for work described as: TITLE IV AID SERVICING (PERKINS)BRIDGE CONTRACT. SUPPORT FOR THE LOAN PORTFOLIO, COMPRISED OF SCHOOL-SERVICED AND FEDERALLY-SERVICED BORROWERS. CONTINUOUS AND RECURRING SERVICES SUPPORT PROGRAMS UNDER TITLE IV INCLUDES GRANTS, LOANS, AND WORK STUDY Key points: 1. This contract supports the loan portfolio for Title IV aid servicing, including grants, loans, and work-study programs. 2. The primary service provider is Educational Computer Systems, Inc. 3. The contract is for a definitive, firm-fixed-price award with a duration of 272 days. 4. This is a recurring service supporting critical student financial aid programs.
Value Assessment
Rating: fair
The contract value of $4.3M for a 272-day period appears reasonable for specialized loan servicing. Benchmarking against similar government contracts for student loan portfolio management would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, there is a reduced opportunity for price discovery and potentially higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures continuity of student financial aid servicing for millions of borrowers. Supports federal programs like grants, loans, and work-study, crucial for educational access. Maintains the operational integrity of the student loan portfolio. Provides essential support for educational institutions and their students.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for higher costs due to sole-source award
Positive Signals
- Ensures continuity of critical student aid services
- Supports federal educational programs
Sector Analysis
This contract falls within the Commercial Banking sector, specifically related to financial services for educational institutions. Spending benchmarks for IT and financial services support contracts of this nature are typically evaluated based on scope and duration.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was considered or required.
Oversight & Accountability
The Department of Education is responsible for overseeing this contract. Standard oversight mechanisms should be in place to ensure service delivery and financial accountability, especially given the sole-source nature.
Related Government Programs
- Commercial Banking
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Sole-source award
- Potential for price inefficiency
- Lack of transparency in contractor selection
- No small business participation noted
Tags
commercial-banking, department-of-education, pa, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $4.3 million to EDUCATIONAL COMPUTER SYSTEMS, INC.. TITLE IV AID SERVICING (PERKINS)BRIDGE CONTRACT. SUPPORT FOR THE LOAN PORTFOLIO, COMPRISED OF SCHOOL-SERVICED AND FEDERALLY-SERVICED BORROWERS. CONTINUOUS AND RECURRING SERVICES SUPPORT PROGRAMS UNDER TITLE IV INCLUDES GRANTS, LOANS, AND WORK STUDY
Who is the contractor on this award?
The obligated recipient is EDUCATIONAL COMPUTER SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $4.3 million.
What is the period of performance?
Start: 2025-08-01. End: 2026-04-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. For this contract, the Department of Education would need to document why Educational Computer Systems, Inc. is the only viable option and why competition was not feasible or beneficial.
What are the risks associated with a sole-source contract for student loan servicing?
Sole-source contracts carry risks of inflated pricing, reduced innovation, and potential complacency from the contractor. For student loan servicing, this could mean less efficient operations, higher administrative costs passed on to borrowers or taxpayers, and a lack of responsiveness to evolving needs.
How will the effectiveness of Educational Computer Systems, Inc.'s services be measured?
Effectiveness will likely be measured through key performance indicators (KPIs) related to loan servicing accuracy, timeliness of borrower communications, compliance with regulations, and system uptime. The contract should define these metrics and the reporting requirements to ensure accountability.
Industry Classification
NAICS: Finance and Insurance › Depository Credit Intermediation › Commercial Banking
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1200 CHERRINGTON PARKWAY, MOON TOWNSHIP, PA, 15108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,951,754
Exercised Options: $4,288,116
Current Obligation: $4,288,116
Actual Outlays: $5,352,516
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-08-01
Current End Date: 2026-04-30
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2026-04-09
More Contracts from Educational Computer Systems, Inc.
- Task Order for Perkins Loan Servicing With Base Period April 1, 2023 Through July 31, 2023 — $37.8M (Department of Education)
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