Department of Education awards $2.24B contract to Conduent Education Solutions for credit intermediation services
Contract Overview
Contract Amount: $2,245,583,010 ($2.2B)
Contractor: Conduent Education Solutions, LLC
Awarding Agency: Department of Education
Start Date: 2004-03-12
End Date: 2014-08-31
Contract Duration: 3,824 days
Daily Burn Rate: $587.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ADMINISTRATIVE ACTION
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75204
State: Texas Government Spending
Plain-Language Summary
Department of Education obligated $2.25 billion to CONDUENT EDUCATION SOLUTIONS, LLC for work described as: ADMINISTRATIVE ACTION Key points: 1. Contract value is substantial at over $2.2 billion. 2. Full and open competition was utilized. 3. Risk appears moderate given the long duration and fixed-price nature. 4. The 'Other Activities Related to Credit Intermediation' NAICS code suggests a specialized service area.
Value Assessment
Rating: fair
The contract value is high, but without specific per-unit cost data or benchmarks for 'Other Activities Related to Credit Intermediation,' a precise value assessment is difficult. The fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. However, the long contract duration (over 10 years) could potentially lead to price increases if market conditions change significantly.
Taxpayer Impact: Taxpayer funds are being utilized for credit intermediation services. The fixed-price contract aims to provide cost certainty, but the overall value depends on the effectiveness and necessity of the services.
Public Impact
Impacts students and educational institutions relying on credit intermediation services. Ensures continued operation of essential financial aid and loan processing. Potential for long-term reliance on a single vendor for critical functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may limit flexibility.
- Lack of specific per-unit cost data.
- Potential for vendor lock-in.
Positive Signals
- Full and open competition utilized.
- Fixed-price contract provides cost certainty.
Sector Analysis
The 'Other Activities Related to Credit Intermediation' sector is specialized, often involving complex financial processes. Benchmarking is challenging without more specific details on the services provided.
Small Business Impact
The data indicates the awardee is Conduent Education Solutions, LLC, and does not specify if small businesses were involved as subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The Department of Education is the contracting agency. Oversight would involve monitoring contract performance, adherence to terms, and financial accountability to ensure services are delivered effectively and within budget.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Long contract duration.
- High contract value.
- Specialized NAICS code may limit competitive landscape.
- No explicit mention of small business subcontracting.
Tags
other-activities-related-to-credit-inter, department-of-education, tx, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $2.25 billion to CONDUENT EDUCATION SOLUTIONS, LLC. ADMINISTRATIVE ACTION
Who is the contractor on this award?
The obligated recipient is CONDUENT EDUCATION SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $2.25 billion.
What is the period of performance?
Start: 2004-03-12. End: 2014-08-31.
What specific credit intermediation services are provided under this contract, and how do they align with the Department of Education's mission?
The contract falls under NAICS code 522390, 'Other Activities Related to Credit Intermediation.' This typically involves services like loan servicing, processing, and potentially related financial management for educational programs. The alignment with the Department's mission would be to facilitate access to and management of student financial aid and loans, ensuring the smooth operation of federal education finance programs.
Given the $2.24 billion value and 10-year duration, what are the primary risks to the government and taxpayers?
The primary risks include potential cost overruns if market conditions change unfavorably, vendor lock-in limiting future flexibility or innovation, and the possibility that the services may become less efficient or necessary over the contract's long lifespan. Ensuring robust performance metrics and clear exit strategies are crucial to mitigate these risks.
How effective has Conduent Education Solutions been in fulfilling similar contracts, and what is the benchmark for success in this specific service area?
Effectiveness benchmarks for 'Other Activities Related to Credit Intermediation' are not readily available in the provided data. Assessing Conduent's past performance on similar contracts, including metrics like processing accuracy, timeliness, and customer satisfaction, would be necessary to gauge their effectiveness and establish a baseline for this contract's success.
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Xerox Corporation (UEI: 049591852)
Address: 2828 HASKELL AVE, BLDG 1, 10TH FLOO, DALLAS, TX, 75204
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $2,245,612,430
Exercised Options: $2,245,583,010
Current Obligation: $2,245,583,010
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-03-12
Current End Date: 2014-08-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2016-09-28
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