Education Awards $69.7M Contract to F.H. Cann for Contact Center Support
Contract Overview
Contract Amount: $69,656,961 ($69.7M)
Contractor: F.H. Cann & Associates, Inc.
Awarding Agency: Department of Education
Start Date: 2024-11-01
End Date: 2026-10-31
Contract Duration: 729 days
Daily Burn Rate: $95.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: STEADY-STATE TASK ORDER 2 AWARDED AGAINST F.H. CANN'S NEXT GEN (NG) BUSINESS PROCESS OPERATIONS (BPO) IDIQ CONTRACT FOR NON-SERVICING AND SPECIALTY PROGRAMS (SPS) CONTACT CENTER SUPPORT AND BACK-OFFICE PROCESSING.
Place of Performance
Location: NORTH ANDOVER, ESSEX County, MASSACHUSETTS, 01845
Plain-Language Summary
Department of Education obligated $69.7 million to F.H. CANN & ASSOCIATES, INC. for work described as: STEADY-STATE TASK ORDER 2 AWARDED AGAINST F.H. CANN'S NEXT GEN (NG) BUSINESS PROCESS OPERATIONS (BPO) IDIQ CONTRACT FOR NON-SERVICING AND SPECIALTY PROGRAMS (SPS) CONTACT CENTER SUPPORT AND BACK-OFFICE PROCESSING. Key points: 1. Contract awarded to F.H. Cann & Associates, Inc. for contact center and back-office processing. 2. The contract is a steady-state task order under the Next Gen (NG) BPO IDIQ. 3. This award represents a significant investment in financial transaction processing and support services. 4. The contract duration is 729 days, ending October 31, 2026.
Value Assessment
Rating: good
The contract value of $69.7 million for a 2-year period appears reasonable for comprehensive contact center and back-office support. Benchmarking against similar large-scale BPO contracts would provide further validation.
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 effective in achieving fair market prices.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible value.
Public Impact
Ensures continued support for the Department of Education's non-servicing and specialty programs. Maintains critical back-office processing functions, contributing to operational efficiency. Supports the government's need for reliable financial transaction processing services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in complex back-office operations.
- Reliance on a single vendor for critical support functions.
Positive Signals
- Awarded under a pre-existing IDIQ, indicating streamlined procurement.
- Firm Fixed Price contract type helps control costs.
- Long-term contract provides stability for service delivery.
Sector Analysis
This contract falls within the Financial Transactions Processing, Reserve, and Clearinghouse Activities sector. Spending in this area is crucial for government operations, and benchmarks vary widely based on the complexity and volume of transactions.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The award is a task order against an existing IDIQ, suggesting prior oversight of the IDIQ vehicle. Continued monitoring of task order performance and vendor compliance is essential.
Related Government Programs
- Financial Transactions Processing, Reserve, and Clearinghouse Activities
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Vendor Lock-in
- Performance Risk
- Cost Overruns (if scope changes significantly)
- Data Security and Privacy
Tags
financial-transactions-processing-reserv, department-of-education, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $69.7 million to F.H. CANN & ASSOCIATES, INC.. STEADY-STATE TASK ORDER 2 AWARDED AGAINST F.H. CANN'S NEXT GEN (NG) BUSINESS PROCESS OPERATIONS (BPO) IDIQ CONTRACT FOR NON-SERVICING AND SPECIALTY PROGRAMS (SPS) CONTACT CENTER SUPPORT AND BACK-OFFICE PROCESSING.
Who is the contractor on this award?
The obligated recipient is F.H. CANN & ASSOCIATES, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $69.7 million.
What is the period of performance?
Start: 2024-11-01. End: 2026-10-31.
What specific metrics will be used to evaluate the performance of F.H. Cann & Associates, Inc. in delivering contact center and back-office support?
Performance evaluation will likely focus on key performance indicators (KPIs) such as call resolution rates, customer satisfaction scores, data accuracy in back-office processing, and adherence to service level agreements (SLAs). The contract documents and performance work statement would detail these specific metrics and their associated targets.
What are the potential risks associated with the firm fixed price contract type for this service?
While firm fixed price helps control costs, it can pose a risk if unforeseen complexities or scope changes arise that were not accounted for during the initial pricing. The vendor might face reduced profit margins or attempt to cut corners on service quality if costs escalate beyond their projections, necessitating careful contract management and change control.
How does this contract contribute to the Department of Education's overall mission effectiveness?
By ensuring the continuity and efficiency of contact center operations and back-office processing for non-servicing and specialty programs, this contract directly supports the department's ability to manage its financial obligations and provide necessary services to its stakeholders. Reliable processing is fundamental to administrative and programmatic success.
Industry Classification
NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Financial Transactions Processing, Reserve, and Clearinghouse Activities
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE 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
Address: 1600 OSGOOD ST STE 2-120, NORTH ANDOVER, MA, 01845
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $100,132,622
Exercised Options: $69,656,961
Current Obligation: $69,656,961
Actual Outlays: $49,593,290
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 91003120D0008
IDV Type: IDC
Timeline
Start Date: 2024-11-01
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2026-01-22
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