Department of Education's $147.8M student aid contact center contract awarded via full and open competition

Contract Overview

Contract Amount: $147,852,413 ($147.9M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Education

Start Date: 2015-03-20

End Date: 2021-12-06

Contract Duration: 2,453 days

Daily Burn Rate: $60.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: "OTHER FUNCTION" IGF::OT::IGF THE PURPOSE OF THIS CONTRACT IS FOR FEDERAL STUDENT AID TO ESTABLISH A CUSTOMER CONTACT CENTER TO PROVIDE TIMELY AND ACCURATE INFORMATION TO THE PUBLIC IN SUPPORT OF THE SCOPE OF BUSINESS. THIS CONTRACT IS BEING AWARDED OFF THE GSA MULTI-CHANNEL CONTACT CENTER SERVICES CONTRACT.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Education obligated $147.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: "OTHER FUNCTION" IGF::OT::IGF THE PURPOSE OF THIS CONTRACT IS FOR FEDERAL STUDENT AID TO ESTABLISH A CUSTOMER CONTACT CENTER TO PROVIDE TIMELY AND ACCURATE INFORMATION TO THE PUBLIC IN SUPPORT OF THE SCOPE OF BUSINESS. THIS CONTRACT IS BEING AWARDED OFF THE GSA MULTI-CHANNEL CO… Key points: 1. Contract provides essential customer support for federal student aid programs. 2. Awarded under GSA's Multi-Channel Contact Center Services contract, leveraging existing GWACs. 3. Firm Fixed Price contract type suggests predictable cost structure. 4. Long duration (2015-2021) indicates a sustained need for these services. 5. No small business set-aside, potentially limiting opportunities for smaller firms. 6. Virginia location for contractor may have workforce and operational implications.

Value Assessment

Rating: good

The contract's value of approximately $147.8 million over its period of performance (2015-2021) appears reasonable for establishing and operating a large-scale customer contact center supporting federal student aid. Awarding off a GSA schedule contract suggests a degree of pre-competed pricing and value. Benchmarking against similar large-scale government contact center operations would provide further insight, but the scale and scope suggest a significant investment in public service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The specific vehicle used was the GSA Multi-Channel Contact Center Services contract, which itself is a competitively awarded vehicle. This approach generally fosters price discovery and allows the government to select the best value offering from a range of qualified vendors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures the government receives competitive bids, maximizing the value of taxpayer dollars.

Public Impact

Benefits millions of federal student loan borrowers and applicants by providing information and support. Delivers timely and accurate information regarding federal student aid programs and application processes. Supports the Department of Education's mission to promote educational opportunity and excellence. Likely involves a significant workforce of customer service representatives and support staff. Geographic impact is national, serving all individuals seeking federal student financial assistance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to leverage economies of scale not fully passed on to government.
Long contract duration could lead to complacency or reduced innovation if not actively managed.
Reliance on a single contractor for critical public-facing services presents a risk if performance falters.

Positive Signals

Awarded under a GSA schedule, implying adherence to pre-negotiated fair and reasonable pricing.
Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for strong performance.

Sector Analysis

This contract falls within the Information Services sector, specifically focusing on customer contact center operations. The government's reliance on outsourced contact center services is a common practice across various agencies to manage high volumes of public inquiries efficiently. The market for such services is competitive, with numerous providers capable of meeting federal requirements, often leveraging GSA schedules for streamlined procurement.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This means larger businesses were likely the primary awardees, and opportunities for small businesses would primarily come through subcontracting if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight is likely managed by the Department of Education's contracting officers and program managers. As a GSA schedule contract, it benefits from the oversight inherent in the GSA's procurement and contract management processes. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Student Aid (FSA) Operations
GSA Multi-Channel Contact Center Services
Department of Education Customer Service Contracts
Information Technology Support Services

Risk Flags

Potential for service degradation due to contractor performance issues.
Risk of data security and privacy breaches concerning sensitive student financial information.
Dependence on a single contractor for critical public-facing services.
Possibility of cost increases through contract modifications if scope changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $147.9 million to PERATON ENTERPRISE SOLUTIONS LLC. "OTHER FUNCTION" IGF::OT::IGF THE PURPOSE OF THIS CONTRACT IS FOR FEDERAL STUDENT AID TO ESTABLISH A CUSTOMER CONTACT CENTER TO PROVIDE TIMELY AND ACCURATE INFORMATION TO THE PUBLIC IN SUPPORT OF THE SCOPE OF BUSINESS. THIS CONTRACT IS BEING AWARDED OFF THE GSA MULTI-CHANNEL CONTACT CENTER SERVICES CONTRACT.

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE 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 $147.9 million.

What is the period of performance?

Start: 2015-03-20. End: 2021-12-06.

What was the specific performance history of Peraton Enterprise Solutions LLC on this contract?

Detailed performance metrics for Peraton Enterprise Solutions LLC on this specific contract are not publicly available in the provided data. However, the contract's duration from March 2015 to December 2021 suggests sustained performance that met the Department of Education's needs. Government contract performance is typically monitored through Contractor Performance Assessment Reporting System (CPARS) records, which would offer insights into quality, timeliness, cost control, and other factors. Without access to CPARS data for this award, a definitive assessment of Peraton's track record on this particular contract remains limited. Generally, continued contract awards or modifications indicate satisfactory performance, but specific issues or commendations would require deeper investigation into performance reviews.

How does the per-contractor cost compare to similar federal contact center contracts?

Direct per-contractor cost comparison is challenging without specific line-item details and service level agreements for this contract, as well as comparable contract data. However, the contract was awarded under the GSA Multi-Channel Contact Center Services (GSA MAS) contract, which implies that pricing was vetted and deemed fair and reasonable at the schedule level. The total award of $147.8 million over approximately 6.7 years averages to about $22 million annually. This figure needs to be contextualized by the volume of calls handled, complexity of inquiries, and service level requirements. Benchmarking against other large federal contact center contracts, particularly those managed by the Department of Education or other agencies with similar public outreach needs, would be necessary for a precise value-for-money assessment.

What are the primary risks associated with this contract for the Department of Education?

The primary risks associated with this contract include potential performance failures by the contractor, leading to degraded customer service for federal student aid recipients. This could manifest as long wait times, inaccurate information, or unresolved issues, impacting borrower satisfaction and program accessibility. Another risk is cost overruns, although the Firm Fixed Price (FFP) structure mitigates this to some extent. However, scope creep or unforeseen technical challenges could still lead to modification requests. Dependence on a single contractor for a critical function also poses a risk; if Peraton Enterprise Solutions LLC experiences financial instability or operational disruptions, the continuity of essential services could be jeopardized. Finally, data security and privacy breaches related to sensitive student financial information represent a significant risk that requires robust contractor safeguards and oversight.

How effective has this contract been in improving public access to information about federal student aid?

The effectiveness of this contract in improving public access to information is primarily measured by its ability to provide timely and accurate responses to inquiries. Given the contract's duration and the Department of Education's continued reliance on these services, it suggests a level of effectiveness in managing public outreach. Key performance indicators likely included call answer rates, customer satisfaction scores, and resolution times. While specific metrics are not provided, the existence of such a substantial contract indicates a recognized need and an effort to meet it. The ultimate effectiveness hinges on the quality of service delivered by Peraton Enterprise Solutions LLC and its alignment with the Department's goals for supporting students and borrowers.

What is the historical spending trend for federal student aid customer contact centers?

Historical spending on federal student aid customer contact centers has generally trended upwards, reflecting the increasing complexity of financial aid programs and the growing number of students seeking higher education. The Department of Education has consistently invested in contact center operations to manage the high volume of inquiries related to FAFSA, loan servicing, and repayment options. This specific contract, valued at approximately $147.8 million from 2015 to 2021, represents a significant portion of that investment during its period of performance. Prior and subsequent contracts for similar services would show a pattern of sustained or increasing expenditure as the student loan portfolio and federal aid programs evolve. Analyzing spending across multiple contract vehicles and fiscal years would reveal the overall trend and the Department's strategic approach to managing public-facing support.

Industry Classification

NAICS: Information › Other Information Services › All Other Information Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $147,852,413

Exercised Options: $147,852,413

Current Obligation: $147,852,413

Actual Outlays: $24,772,676

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00V08PDD0072

IDV Type: IDC

Timeline