Department of Education Awarded a Contract to EDFINANCIAL SERVICES LLC for $2,785,300,000.00

Summary of Award

The JSON object provides a comprehensive overview of a significant contract awarded by the U.S. Department of Education to EdFinancial Services LLC. This contract is categorized as an "Indefinite Delivery / Indefinite Quantity" (IDV), with a primary purpose of servicing Title IV student financial aid, essential within the framework of the Health Care and Education Reconciliation Act of 2010. The contract underscores a longstanding commitment to supporting student financial aid services, marked by its initiation on January 23, 2012, and extending to a projected conclusion at the end of December 2024.

Significantly, this contract’s value is substantial, representing a maximum potential of approximately $2.785 billion, reflecting its strategic importance in the realm of student loans and credit intermediation services. This significant financial obligation underlines the critical role of EdFinancial Services in ensuring the effective management and provisioning of services related to student financial aid, which impacts countless students across the United States.

EdFinancial Services LLC, based in Knoxville, Tennessee, stands as the recipient of this contract. The company is classified as a Limited Liability Corporation and is noted for not being designated as a small business, categorizing it within a broader corporate framework that allows it to handle extensive operational responsibilities. The company's business categories include partnerships and U.S.-owned business special designations, highlighting its position as a significant provider within the credit intermediation sector. Specifically, EdFinancial operates within the North American Industry Classification System (NAICS) code 522390, "Other Activities Related to Credit Intermediation," showcasing its specialization in managing financial products and services, particularly those not falling into traditional banking and loan services. The nature of the contract, as detailed, is characterized by a multi-year fixed price with economic price adjustment terms, ensuring stability and financial predictability over its lifespan. The contract was established through full and open competition, indicating a transparent and competitive bidding process which involved 13 offers, reflecting substantial interest and the importance of providing robust financial management services in education. Notably, the Department of Education administered the awarding and funding processes, emphasizing its core mission of enhancing educational access and quality through financial aid. The Federal Student Aid (FSA) Acquisitions Office is specifically the administrative entity overseeing this agreement, aligning with its mandate to manage financial aid operations seamlessly. While no specific transaction details are delineated within the JSON object in terms of individual payments or financial exchanges, the overarching parameters set the stage for orchestrating a series of financial interactions geared towards achieving the broader objectives of the contract. These objectives are intricately tied to managing student loans and ensuring compliance with federal financial aid policies, which necessitate a highly specialized skill set and operational capability. EdFinancial Services is led by top executives who are adequately compensated, as detailed in the executive compensation section. These figures illustrate the company's commitment to maintaining a leadership team capable of executing its strategic vision effectively. The top executives, including William A. Hollin, John J. Farinella, and Kimberly B. Watson, among others, have salaries reflecting their roles in safeguarding the financial stability and operational execution of the contract’s deliverables. The contract's service aims to address various product service codes, particularly under the category "Support- Management: Financial," emphasizing the company's capability to manage and implement complex financial products and services crucial for the effective administration of student aid programs. In conclusion, this contract with EdFinancial Services represents a strategic partnership aimed at bolstering the efficiency of student financial aid management. It denotes a significant investment by the federal government to ensure the equitable and effective provision of financial aid services critical to many students' educational pursuits across the nation. The long-term nature and substantial financial commitment of this contract highlight its pivotal role in shaping the landscape of student financial aid, positioning EdFinancial Services as an indispensable player in the field. This contract exemplifies governmental efforts to enhance educational financial services and reaffirms the importance of public-private partnerships in achieving educational equity and financial management innovation.