Department of Education awards $146.7M for Title IV student aid servicing to Navient Corporation
Contract Overview
Contract Amount: $146,740,140 ($146.7M)
Contractor: Navient Corporation
Awarding Agency: Department of Education
Start Date: 2016-08-18
End Date: 2018-03-25
Contract Duration: 584 days
Daily Burn Rate: $251.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF BASE AWARD: SERVICING OF TITLE IV STUDENT FINANCIAL AID. TASK ORDER: PROVIDES FUNDING FOR TITLE IV AID SERVICING, THROUGH APPROXIMATELY 08/31/2017.
Place of Performance
Location: WILMINGTON, NEW CASTLE County, DELAWARE, 19801
State: Delaware Government Spending
Plain-Language Summary
Department of Education obligated $146.7 million to NAVIENT CORPORATION for work described as: IGF::CT::IGF BASE AWARD: SERVICING OF TITLE IV STUDENT FINANCIAL AID. TASK ORDER: PROVIDES FUNDING FOR TITLE IV AID SERVICING, THROUGH APPROXIMATELY 08/31/2017. Key points: 1. The contract focuses on servicing Title IV student financial aid, a critical function for student loan programs. 2. Navient Corporation, a major player in student loan servicing, is the sole awardee. 3. The contract duration is approximately 584 days, ending in March 2018. 4. This award represents a significant portion of the agency's spending in this specific service area.
Value Assessment
Rating: fair
The award amount of $146.7M for approximately 20 months of service suggests a substantial cost. Benchmarking against similar student loan servicing contracts would be necessary to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are being used to ensure the proper servicing of federal student financial aid, which is essential for the functioning of student loan programs.
Public Impact
Ensures continued access to and proper management of federal student financial aid. Impacts millions of students and borrowers who rely on these services. Supports the Department of Education's mission to promote student achievement and access to higher education.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services are highly specialized.
- Reliance on a single vendor for critical financial aid servicing.
- Need for robust performance monitoring to ensure service quality.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and funding allocation.
- Supports a vital government function for higher education.
Sector Analysis
The IT and administrative services sector, particularly related to financial services and government contracting, is highly competitive. Spending benchmarks for student loan servicing contracts can vary significantly based on volume, complexity, and specific services required.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee, Navient Corporation, is a large corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of Education is responsible for overseeing this contract. Robust oversight is crucial to ensure Navient meets performance requirements and manages taxpayer funds effectively, especially given the sensitive nature of student financial aid.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for high cost if not managed effectively.
- Dependence on a single large contractor.
- Need for strong performance monitoring.
- Complexity of student financial aid systems.
Tags
other-activities-related-to-credit-inter, department-of-education, de, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $146.7 million to NAVIENT CORPORATION. IGF::CT::IGF BASE AWARD: SERVICING OF TITLE IV STUDENT FINANCIAL AID. TASK ORDER: PROVIDES FUNDING FOR TITLE IV AID SERVICING, THROUGH APPROXIMATELY 08/31/2017.
Who is the contractor on this award?
The obligated recipient is NAVIENT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $146.7 million.
What is the period of performance?
Start: 2016-08-18. End: 2018-03-25.
What is the specific breakdown of services provided under this contract and how do they align with the agency's core mission?
This contract specifically funds the servicing of Title IV student financial aid. These services are integral to the Department of Education's mission, encompassing tasks like processing loan applications, managing repayment schedules, and providing borrower assistance. Ensuring efficient and effective servicing directly impacts student access to higher education and the financial well-being of borrowers.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to measure Navient's performance?
While not detailed in the provided data, effective contracts for student aid servicing typically include stringent KPIs and SLAs. These would likely cover metrics such as call center wait times, accuracy of loan information, timely processing of payments and deferments, and borrower satisfaction rates. Regular performance reviews are essential to ensure compliance and identify areas for improvement.
How does the cost of this contract compare to historical spending on similar student aid servicing contracts?
The provided data shows a $146.7 million award for approximately 20 months of service. To assess value, this cost needs to be benchmarked against previous contracts for similar scope and volume, considering inflation and changes in service requirements. A detailed cost-benefit analysis comparing this award to alternative servicing models or providers would offer further insight into its cost-effectiveness.
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
Address: 123 S JUSTISON ST STE 300, WILMINGTON, DE, 19801
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $146,740,140
Exercised Options: $146,740,140
Current Obligation: $146,740,140
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: EDFSA09D0015
IDV Type: IDC
Timeline
Start Date: 2016-08-18
Current End Date: 2018-03-25
Potential End Date: 2018-03-25 00:00:00
Last Modified: 2020-09-18
More Contracts from Navient Corporation
- Critical Function Base Award: Servicing of Title IV Student Financial AID, in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l. 111-152, 124 Stat. 1029) for the Period of 09/01/2017 to 08/31/2018. Task Order: Servicing of Title IV Student Financial AID in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l.111-152, 124 Stat. 1029) for the Period of 09/01/2017 to 08/31/2018. Modification to Provide Funding for Period of Performance: 9/01/2017 - 8/31/2018 and Title IV AID Servicing Through Approximately 12/31/2017 — $145.4M (Department of Education)
- Critical Function Base Award: Servicing of Title IV Student Financial AID, in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l. 111-152, 124 Stat. 1029) for the Period of 6/17/2014 to 6/16/2019. Task Order: Servicing of Title IV Student Financial AID in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l.111-152, 124 Stat. 1029) for the Period of 09/01/2018 to 08/31/2019. Modification: the Purpose of This Modification IS to Create a NEW Task Order for Contract Ed-Fsa-09-D-0015 With the Period of Performance: 9/01/2018 - 8/31/2019, and Provide Funding for Title IV AID Servicing Through Approximately 12/31/2018 — $143.6M (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 12/31/2015. Provides Funding for the Delinquency Reduction Compensation Program, in a Not-To-Exceed Amount of $500,000 PER Quarter and $2,000,000 Annually — $141.2M (Department of Education)
- / Critical Function Idiq: Servicing of Title IV Student Financial AID. Task Order: Servicing of Title IV Student Financial AID, From 9/1/2014 Through 8/31/2015. Provides Funding for Title IV AID Servicing and Development and Maintenance, Through Approximately 12/31/2014. Provides Funding for the Delinquency Reduction Compensation Program, in a Not-To-Exceed Amount of $500,000 PER Quarter and $2,000,000 Annually — $133.9M (Department of Education)
- Critical Function - Task Order 0001 Provides Servicing of Title IV Student Financial AID in Accordance With Section 2212 of the Health Care and Education Reconciliation ACT of 2010 (pub.l.111-152, 124 Stat. 1029)FOR the January 01, 2013 to December 31, 2013 Time Period — $108.0M (Department of Education)
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