91003118R0023.pdf

SOLICITATION, OFFER AND AWARD 1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 7900)

RATING PAGE OF PAGES

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

CODE7. ISSUED BY 8. ADDRESS OFFER TO (If other than item 7)

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

SOLICITATION

9. Sealed offers in original and copies for furnishings the supplies or services in the Schedule will be received at the place specified in item 8, or if hand carried, in the depository located in until local time

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

10. FOR

INFORMATION

CALL:

A. NAME B. TELEPHONE (NO COLLECT CALLS)

AREA CODE NUMBER EXT.

C. E-MAIL ADDRESS

11. TABLE OF CONTENTS

(X) SEC. DESCRIPTION PAGE(S) (X) SEC. PAGE(S)DESCRIPTION

A B C D E F G H

I

J

K

L

M EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

LIST OF ATTACHMENTS

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

CONTRACT CLAUSESSOLICITATION/CONTRACT FORM

SUPPLIES OR SERVICES AND PRICES/COSTS

DESCRIPTION/SPECS./WORK STATEMENT

PACKAGING AND MARKING

INSPECTION AND ACCEPTANCE

DELIVERIES OR PERFORMANCE

CONTRACT ADMINISTRATION DATA

SPECIAL CONTRACT REQUIREMENTS

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

12. In compliance with the above, the undersigned agrees, if this offer is accepted within calendar days (60 calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52.232-8)

14. ACKNOWLEDGMENT OF AMENDMENTS

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated):

10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS(%)

DATEAMENDMENT NO.AMENDMENT NO. DATE

15A. NAME AND

ADDRESS

OF OFFER-

OR

CODE FACILITY 16. NAME AND THE TITLE OF PERSON AUTHORIZED TO SIGN OFFER

(Type or print)

15B. TELEPHONE NUMBER

AREA CODE NUMBER EXT.

15C. CHECK IF REMITTANCE ADDRESS IS

DIFFERENT FROM ABOVE - ENTER SUCH

ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL OPEN COMPETITION:

10 U.S.C. 2304 (c) 41 U.S.C. 253 (c)

24. ADMINISTERED BY (If other than Item 7)

26. NAME OF CONTRACTING OFFICER (Type or print)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

(4 copies unless otherwise specified)

25. PAYMENT WILL BE MADE BY

27. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

28. AWARD DATE

CODE

ITEM

STANDARD FORM 33 (REV,. 9-97)

Prescribed by GSA - Far (48 CFR) 53.214 (c)

SEALED BID (IFB)

NEGOTIATED (RFP)

(Hour) (Date)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

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91003118R0023

MPDSETeam@ed.gov

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SECTION B, SUPPLIES OR SERVICES AND PRICES/COSTS

Information regarding the pricing structure, including attachment 12 – Pricing Template - will be provided via amendment at a later date.

SECTION C, DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 - INTRODUCTION

The U.S. Department of Education, Office of Federal Student Aid (FSA), is embarking on a transformation known as the Next Generation Financial Services Environment (NextGen). Through this initiative, FSA seeks to implement a flexible, world-class financial solution to leverage in supporting its citizens. Initially, FSA seeks to modernize its technical and operational architecture, in a manner that provides flexibility toexpand and support other financial services. This effort will also include creating a new FSA-branded omni-channel engagement approach led by a mobile-first, mobile-complete, and mobile-continuous digital platform to support the complete federal student aid lifecycle. In addition to improving the overall customer experience, the new environment seeks to improve operational flexibility, enhance cost and operational efficiency, and generate better outcomes for customers and taxpayers.

This solicitation is for a Future State Core Platform (“Future State Core Platform”), referred to as “Component C” in the Phase I Solicitation dated February 20, 2018.

C.1.2 Contract Type

The resulting award will be a firm-fixed priced contract. The Government anticipates a base period of five years, with five one-year option periods.

C.2 – OBJECTIVES, REQUIREMENTS, AND MILESTONE

C.2.1 Solution Objectives

The Future State Core Platform will be a highly adaptable solution which supports current and future FSA products and processes across the entire student aid life cycle, including functions for application and eligibility, origination and disbursement, servicing, and delinquency and default management. Solution will deploy integrated functions and products over time. Solution will deliver cost efficiencies through significantly increased automation and a modern technical backbone (e.g., modular code base, cloud operability, microservices, two-speed development compatibility, and/or innovative middleware).

Solution will better support changing rules, laws, and regulations with minimal operational complexity through the greater flexibility afforded by having separate rules engine(s) and integrated process workflows.

C.2.2 General Operating Requirements

The Future State Core Platform shall satisfy these general requirements across all solutions:

a. Adaptability, flexibility, and ongoing innovation: Solution shall efficiently and effectively adapt to changes in the FSA operating environment (including changing Federal rules, regulations, and laws), innovation in commercial financial services, and FSA’s goals. Solution must easily scale to handle changes in account and transaction volumes and have the flexibility to enable incremental modifications without necessitating full production implementation efforts or additional costs.

b. Integration: Solution shall include features, at no to minimal additional cost, to allow them to easily integrate with existing FSA or third-party solutions and future state solutions from NextGen or otherwise. Solution shall allow FSA, other government agencies, and other vendors to interface or engage with it as necessary.

c. Adherence to and monitoring for changes in laws and regulations: Solution shall meet or exceed existing Federal rules, laws, regulations, agency guidelines or court mandates applicable to the FSA operating environment (including all accessibility elements such as 504/508 compliance). Solution shall establish a process for monitoring new or pending changes to applicable laws and regulations, and then proactively partner with FSA to determine the implications to technical design and/or operational procedures.

d. Cybersecurity: Solution shall include and demonstrate robust cybersecurity protections and features to protect customer data. Technical requirements for existing security standards are included in the attached “02 – Security Technical Requirements”.

– Solution shall be hosted in a secure environment. If any aspect of the proposed solution is hosted in the cloud (e.g.

virtual desktops), a list of hosting environments with existing ATOs can be found in attachment “08 – Hosting Environments with Approved Agency ATOs.” Note that this list is provided for informational purposes only; vendors are not required to host in these pre-approved hosting environments. Please note that the FedRAMP-approved cloud shall also require a Department/Agency-level ATO, followed by the FSA-issued ATO for the system. The solution shall require an Authorization to Operate (ATO), which shall be FISMA and/or FedRAMP-approved at either a FIPS-199 High level or Moderate level, depending on the proposed architecture and corresponding FIPS-199 category of the system. FSA’s preference is that the solution be FISMA and/or FedRAMP High. Prior to award, FSA will determine the level of FISMA and/or FedRAMP compliance required.

– The contractor shall comply with the security requirements that are provided in IRS 1075 Publication: Publication 1075, Tax Information Security Guidelines for Federal, State and Local Agencies. This impacts the IRS DRT and the 6103 exemption process.

e. Identity and access management: Solution shall use FSA’s chosen identity and access management (IAM) solutions for authorization, authentication, single-sign-on (SSO) via standards-based federation, self-services, and identity management.

This will enable FSA to build a future state environment with a consistent and scalable set of security services for provisioning and managing all users, including Future State Core Platform personnel, other vendors or third-parties, and FSA staff – implementation timing to be agreed with FSA. Attachment “09 – FSA Identity & Access Management Solution Overview” provides an overview of FSA’s IAM solutions.

f. Financial accuracy and compliance: Solution shall include and demonstrate robust measures for ensuring the compliance and accuracy of financial transactions and reporting. Technical requirements for current state financial standards are included in the attached “03 –Finance Technical Requirements”. FSA anticipates the Future State Core Platform to be able to more efficiently and/or effectively meet requirements as compared to current processes.

g. Additional current state technical constraints: In addition to security and financial requirements, vendors also must acknowledge an understanding of other functional categories of current state technical constraints where relevant (e.g., processing, websites, and communications).

– For a broader informational view of FSA’s current servicing environment, vendors are encouraged to review the attached “04 – Additional Current State Technical Constraints,” which provides a representative, though not comprehensive set of technical constraints.

– These constraints are derived from existing laws, regulations, agency guidance, and business rules, and will change based on acts of Congress, updates to Federal regulatory and non-regulatory guidance, and FSA goals.

– Vendors may propose solution-relevant alternative, more efficient, accurate, or customer-centered approaches and processes (vs. those detailed in the current state technical constraints) to accomplish FSA’s outcomes.

– Any student aid lifecycle function (e.g., application processing, repayment, consolidation, deferment, forbearance, specialty claims) impact the Future State Core Platform, among other existing and future solutions, and often relate to multiple constraints.

– Specialty programs (e.g., Public Service Loan Forgiveness (PSLF), Teacher Education Assistance for College and Higher Education (TEACH), Total and Permanent Disability Discharge (TPD)) and specialty claims (e.g., discharge, forgiveness) require special handling as well as specific and unique processing rules that impact the Transitional Core Processing and Related Support Activities, along with other existing and future solutions, and often relate to multiple constraints.

h. Full student aid portfolio scope: Solution shall provide relevant functions for student aid portfolio which includes, but is not limited to, varying:

– Loan statuses (e.g., In school, In grace, In delinquency, In default, In forbearance, In deferment);

– Customer segments (e.g., military customers);

– Traditional repayment plans (e.g., Standard, Graduated, and Extended);

https://www.irs.gov/pub/irs-pdf/p1075.pdf https://www.irs.gov/pub/irs-pdf/p1075.pdf

– Income-driven repayment plans (e.g., Income-Contingent, Income-Based, Pay-As-You-Earn, and Revised-Pay-As-You- Earn);

– Grant programs (e.g., TEACH); and

– Loan forgiveness and discharge programs (e.g., PSLF, TPD).

i. Customer experience focus: Solution shall prioritize customer and partner needs and preferences to deliver a world-class customer experience throughout the student aid lifecycle. Helpful additional context on the current state can be found in the “05 – Customer Tasks,” “06 – Partner Tasks,” and “07 – Top Customer Pain Points” attachments.

j. Trained personnel: Solution shall ensure personnel are trained and aware of pertinent changes in laws, regulations, programs, or FSA’s performance expectations.

k. Contribution to knowledge and training of Business Operations personnel: Solution shall work with the Command Center on common knowledge resources, contact scripts, agent desktop guides, and other training materials, ensuring that customer-facing instructions and resolution steps as well as back-office processing procedures are accurate in relation to Future State Core Platform. The Command Center is responsible for coordinating the development, improvement, maintenance, and distribution of knowledge and training for Business Operations personnel.

l. Performance management: Solution shall have performance management mechanisms that will enable improved and ongoing achievement of metrics to be defined at award, potentially as service level agreements (SLAs). Example metrics may include, but are not limited to: customer satisfaction (compared to a common index), processing error rates, on-time reconciliation and reporting.

m. Quality control: Solution shall be supported by documented policies/procedures on vendor quality management system to ensure that best-in-class service can be provided.

n. Software licenses: Commercial software licenses acquired under this contract shall be licensed to the Government.

C.2.3 Operating Elements and Related Requirements

FSA envisions the Future State Core Platform addressing functions across the full student aid lifecycle, from application to pay-off or default. FSA anticipates that no single technology product can provide best-in-class solutions for all required functions, but rather a set of solutions that are seamlessly integrated (e.g., the transfer from origination to servicing should use common data definitions without data loss or errors).

a. Student aid servicing: Solution will execute consolidation origination, and servicing functions, including for specialty programs (e.g., PSLF, TPD, TEACH grants), and specialty claims (e.g., discharge, forgiveness), in addition to relevant reconciliation, reporting, and audit functions, ensuring accuracy, timeliness, and cost-effectiveness.

Solution shall execute student aid servicing functions, including, but not limited to:

1) Payment processing and applications to accounts;

2) Loan status tracking;

3) Eligibility requirement assessment and annual recertification, and payment recalculation for income-driven plans tied to a customer’s income, family situation, and other characteristics that may fluctuate;

4) Loan consolidation origination, including application, pay off, booking new loans, maintaining account histories, performing all reconciliation and financial reporting, among other activities;

5) Switching between repayment plans; and

6) Retroactive processing, (e.g., retroactive application of deferments, forbearances, payments).

─ Solution shall perform financial-related functions, including, but not limited to:

7) Financial reconciliation and variance research;

8) As needed support of audits (e.g., annual audit reports such as the Service Organization Controls Type II Statements on Standards for Attestation Engagements (SSAE18));

9) Research and resolution of treasury issues;

10) Comprehensive cash management;

11) Dynamic loan portfolio management; and

12) Effective internal financial controls.

─ Solution shall automate servicing and other functions, to the maximum extent possible, aiming to eliminate manual processing. Only in the cases where automation is not feasible, may the solution rely on streamlined manual processing by Business Process Operations personnel (separate solution outside the scope for this solicitation).

─ Solution shall maintain a robust data history, including retroactive processing (e.g., “as-was” vs “as-is”), and tracing loans through consolidation transactions. This data shall be available and shared with other components and systems as directed by FSA.

Solution shall provide support to, track, project/forecast, and manage delinquent and defaulted customer accounts to enable more tailored customer assistance and improved repayment outcomes. Activities include, but are not limited to, making outbound calls to help customers define plans to bring their loans current, doing skip-tracing, executing rehabilitation processes, reporting statuses to credit bureaus, and processing AWG and TOP paperwork.

b. Application and eligibility: Solution will collect and process applications for student aid based on eligibility rules.

Solution shall track application status from application start to completion and detail rationale for rejections or declines.

Solution shall allow for application changes or entry errors to be easily fixed by applicant, FSA, partners (e.g., schools), or designated vendors.

Solution shall enable as needed changes to eligibility rules without requiring major system overhauls and at no cost.

c. Origination and disbursement: Solution will execute processes to originate and disburse student aid programs (e.g., Direct Loans, Pell Grants, TEACH Grants) according to respective policies and rules for approved students/borrowers.

Solution shall receive and process origination and disbursement data from Title IV Eligible Higher Education

Institutions.

Solution shall reconcile and report on Title IV funds disbursed at a school and program level.

Solution shall interface with FSA and other third-parties (e.g., schools, Treasury, IRS, other vendors).

C.2.4 Deliverables

C.2.4.1 Deliverables shall be provided electronically whenever possible. Electronic delivery via e-mail shall be acceptable, with the deliverable files in both Acrobat.pdf and a current Microsoft Office format suitable for the report (Word or Excel) unless FSA requests a different format.

Deliverables shall be submitted to the Contracting Officer and the COR.

C.2.4.2 The Contractor shall furnish deliverables specified herein in accordance with the delivery schedule and requirements, to the delivery point(s) specified in the table below:

FSA Deliverable Table Deliverable Description Due Date and

Frequency Acceptance Criteria

Project Kick-Off Meeting Kick-off meeting to begin discussions on detailed requirements and the project schedule.

• Presentation Meeting Minutes

Within five business days of award

Project Management Plan Detailed project management plan and project schedule for the complete contract scope. Includes Scope Management Plan, Cost Management Plan, Risk Management Plan, Quality Management Plan, Resource Management Plan, Schedule Management Plan, Communication Management Plan, Performance Management Plan, and Performance

Three weeks after award

FSA Deliverable Table Deliverable Description Due Date and

Frequency Acceptance Criteria

Monitoring Plan.

Status Meetings and Status Reports

Status report on progress, performance metrics, schedule, incidents, action and issue log, and risk log/risk register.

Weekly

Integrated Master Project Schedule

Planned dates to start and complete tasks and milestone, including work to be done by FSA as well as any vendors participating in the project.

Updated weekly

Requirements Management Plan

Defines how requirements will be elicited, structured, and prioritized; how requirements will be recorded; how requirements will be modified; and how requirements will be traced and reconciled.

• Initial plan to cover all system functionality at least five days prior to Requirements Stage gate and annually thereafter

• Updated for each release;

Final version for each release delivered prior to Requirements Stage Gate

Requirements Documents

• High Level Requirements

• Product backlog

• Requirements Traceability Matrix

(RTM) – requirements mapped to test cases

• Initial documents to cover full system functionality at least five days prior to Requirements Stage gate and annually thereafter

• Final version for each

Data Migration Plan (Does not apply to Initial Conversion)

Defines processes associated with completion of data migration effort, including conversion strategies, data mapping requirements, data clean up, and testing.

• Updated for each release;

• Final version for each

Conversion Plan Defines processes associated with completion of data migration efforts, including conversion strategies, data mapping requirements, data clean-up, and testing.

Within thirty days of award

Solution Architecture and Detailed Design Document

Combines both a high-level and detailed view of the solution architecture

• Includes description and diagrams of infrastructure, network, security, data, and application architectures

• Addresses all Technical Quality Control (TQC) factors and sub-factors identified as applicable and in scope

• Includes mitigation strategies for all risks identified in the Technical Quality Control reviews

• Includes Interface Control Documents (ICDs) to document all interfaces between systems and subsystems, including APIs, data required, data returned, error handling, and communications, etc.

• Conveys detail necessary to allow coders to develop the system, and

• Initial documents to cover full system functionality at least five days prior to Design Stage gate and annually thereafter

• Final version for each release delivered at least 5 days prior to Design Stage Gate

Frequency Acceptance Criteria to support critical design reviews before beginning development

Developers Integration Guide

Documents how internal and external parties will integrate with and consume the APIs/services that are exposed.

• Initial document to cover full integrations at least five days prior to Design Stage Gate and annually thereafter

• Final version for each release delivered at least 5 days prior to Design Stage Gate

Configuration Management Plan

An overview of the organization, activities, overall tasks, and objectives of configuration management; addresses:

baseline work products, describes the mechanism to track and control changes/change requests, and the mechanism to establish and maintain baseline integrity

• Initial plan to cover full system functionality at least five days prior to Test Readiness Review and annually thereafter

• Final version for each

Test Readiness Review

Master Test Plan Details high level and overall test planning and test management

• Includes System, User Acceptance, Performance, Inter-system, etc. Test Plans

• Master Test Plan includes objectives for the security control assessment and procedures for testing each security control

• Initial test plan to cover full system functionality at least five days prior to Test Readiness Review

• Final version for each

Testing Documentation • Test Suites - test scenarios, test cases and test scripts for a component or system under test

• User Acceptance Test Summary Report

• System Test Summary Report

• Defect Management Report

• QA and QC records

• Initial testing documentation to cover full system functionality at least five days prior to Test Readiness Review

• Final version for each

Solution Source Code Provided in a usable/human readable format as approved/agreed to by FSA

• Initial Source code to cover full system functionality at least five days prior to Test Readiness Review

• Prior to each release and available upon request

Database detail • Data Dictionary: Field name, field definition (in simple to understand terms), valid values for the content, field format/length for data stored in the servicing system (i.e.

databases, access databases, tables, and spreadsheets).

• Dictionary includes: Historical transactional data for all

• Data Dictionary/documentation thirty days after award and yearly thereafter to include volume of data or Upon Request

• Procedures and training materials prior to o Initial Test

Frequency Acceptance Criteria actions(financial and non-financial) taken on an account including but not limited to payments, refunds, schedule histories, credit reporting, and communication (Paper, email, fax, etc.) data

• Volume of Data

• Procedures and Training Materials

(Catalog and actual documents.

Readiness Review, prior to each o release Test readiness review, o annually thereafter

Implementation Documentation

• Release Version Description

Document

• Solution User Manual

• Implementation Plan

• Transition Management Plan

• Training Plan

• Operations and Maintenance Plan

• Standard Operating Procedures

• Production Readiness Review (PRR)

• Implementation Plan (Hour x Hour)

Prior to receiving Authorization to Operate

Lessons Learned Reports All aspects of the project or project stage are analyzed, and results and opportunities for improvement are documented

Within two weeks after each release

System Security and Privacy Documentation

Privacy Artifacts:

• Privacy Threshold Analysis (PTA)

• Privacy Impact Assessment (PIA)

• System of Records Notice (SORN)

External Data Exchange Artifacts:

• Memorandum(s) of Understanding

(MOUs)

• Computer Matching Agreement(s)

• Interconnection Security

Agreement(s) (ISA)

Continuity of Services Artifacts:

• Business Impact Assessment (BIA)

• IT Contingency Plan (Includes Test

Plan)

• Disaster Recovery Plan

System Security Documentation Artifacts:

• Data Sensitivity Worksheet

• System Authorization Boundary

• System Security Plan (SSP)

• Incident Response Plan (IRP)

• Breach Notification Policy and

Response Plan

Security Risk Assessment Artifacts:

• Security Assessment Plan

Prior to receiving Authority to Operate

Frequency Acceptance Criteria

• System Security Documentation Checklists

• Security Assessment Report

• Plans of Actions and Milestones

(POAMs)

• Data Retention Schedule

Security Documentation Post-ATO

Property Management Plan

• FISMA Metrics Report

• Annual Self-Assessment (if not in

OSA program)

• Incident Response Test Plan and

Test Report

• Contingency Test Plan and Test

Report

• Standard Operation Procedures

• System Retirement Plan

• System Disposal Plan

Updated as changes occur or directed by FSA

Transition Support (Phase- Out)

Phase-Out Plan Sixty calendar days prior to the completion of this contract (to include option periods)

Database Actual system databases for all functionality, including all historical data and transactions

Sixty calendar days prior to the completion of this contract (to include option periods)

Security Reports CyberScope Report Clearance and Suitability Report Application Access Report Staffing Change Report Recertification of User Access and Authenticator Activation

Monthly

Contractor PIV and PIV-I Card Deliverable

Monthly Vendor Employee Report (FAR 35-9 deliverable)

First business day after the close of each month

Contractor Solution Development Processes

Contractor’s System Development Lifecycle Contractor’s Software Development Lifecycle Contractor’s Software Engineering Handbook

Upon request

C.2.5 Target Milestone

FSA has identified a target milestone in pursuit of the goals identified in section III. Solutions shall consider three specific dependencies: large scale, complexity, and an aggressive timeline. It is critical that solutions are designed and implemented against the following milestone to ensure FSA can achieve its goals.

C.2.5.1 Milestone 1 – Launch of an initial solution: nine (9) months after award

FSA anticipates working with the vendor to determine which function(s) should be built and deployed first. Vendors shall propose which operating element (per Section C.2.3) they would recommend FSA implement first in addition to the pursuant sequencing.

C.3 – FSA BACKGROUND, GOALS, AND VISION

C.3.1 Background

FSA’s core mission is to ensure that all eligible customers benefit from Federal financial assistance – grants, loans, work-study programs, etc. – for education beyond high school. The programs FSA administers comprise the nation’s largest source of student financial aid. Every year, over 18 million students apply for Federal aid, and FSA has over 42 million customers across the student aid lifecycle. FSA’s total lending portfolio is $1.4+ trillion in outstanding loans including $1.1 trillion that is directly serviced. The lending portfolio is growing at 7% per year, driven by nearly $100 billion in annual disbursements across more than 17 million annual loan originations.

In conjunction with institutions of higher learning and third-party vendors, FSA provides student aid information and services across the full Federal student aid lifecycle, including:

a. Application and eligibility determination: Customers learn about their options, then apply for Federal student aid through the FAFSA;

b. Disbursement: For eligible customers, FSA originates most aid through higher educational institutions to FSA customers;

c. Student aid processing and servicing: FSA assigns customer loans, specialty programs, and specialty claims, and consolidation origination, among other processes, to be serviced by one of nine loan servicers across four loan technology platforms;

d. Recovery: For customers who fail to pay their loans and enter recovery, FSA contracts with a debt management vendor and Private Collection Agencies (PCAs) to engage with those customers.

Within student aid processing and servicing, servicers perform a complete set of Federal student loan servicing activities including: customer service; loan counseling; loan consolidation; billing and payment application and processing; repayment plan adjustments and application of benefits such as deferments, forbearance, or loan forgiveness/discharge; outreach and default aversion; quality control; and financial and other data reporting. Individual customers may have several loans on different repayment plans and may have entered special programs (e.g., Public Service Loan Forgiveness (PSLF), Total and Permanent Disability (TPD), or Teacher Education Assistance for College and Higher Education (TEACH)).

Each of the nine servicers operates its own engagement layer with proprietary branding (e.g., websites, mobile tools, contact centers), utilizes one of four servicing platforms, and maintains certain additional technical systems (e.g., identity and access management solutions). The separate engagement layers, contact centers, and back-end processing operations limit FSA branding opportunities and increases customer confusion and operational complexity. Across service providers, data management and cybersecurity practices are inconsistent, siloed, and are not optimized. Additionally, the four different servicing platforms perform redundant data processing, further increasing operational inefficiency.

The servicing platforms are customized to service Federal student loans, which include over 30 permutations of repayment plans and additional unique rules related to forbearance, deferment, discharge, loan forgiveness, and recovery reporting. A servicer will typically retain a customer account until it is paid in full, the customer defaults, or the customer receives a loan discharge.

Today’s fragmented landscape has created many issues, including:

a. Inconsistent customer experience: FSA customers move through the student aid lifecycle working with multiple vendors and partners, each of which have different interfaces, processes, and standards;

b. Limited branding opportunities for FSA: The lack of consistent branding can leave customers confused and unclear about the role the Federal government, particularly FSA, plays in their student aid journey; and

c. Operational complexity and inefficiency: Each servicer has built redundant technical and operational solutions.

Additional information about FSA can be found in Exhibits 1 and 2, below, in the attachment “01 – As-Is Updated” and the 2017 Annual Report located at: https://www2.ed.gov/about/reports/annual/2017report/fsa-report.pdf.

EXHIBIT 1: TODAY’S ENVIRONMENT ACROSS THE STUDENT AID LIFECYCLE

C.3.2 Goals and Vision

FSA holds one of the largest consumer loan portfolios in the world and believes it should deliver an experience for its customers on par with world-class financial services organizations. To do that, FSA has established four goals for the future state environment that apply to the Future State Core Platform, including:

First, FSA intends to provide a world-class customer and partner experience throughout the student financial aid lifecycle to ensure:

a. Easier, more seamless customer interactions with FSA through an enterprise-wide, FSA-branded, omni-channel digital platform, featuring a mobile-first, mobile-complete, and mobile-continuous solution (i.e., allowing FSA to maintain a relationship with its customers throughout the customer lifecycle) to enable customers to receive additional support through the channel most appropriate to their needs;

b. Customers receive an experience informed by a holistic understanding of the financial aid lifecycle and customer needs, refined through ongoing analysis of customer data and feedback, and continuously improved through activities like iterative user testing;

c. Customers better understand the financial implications of their student debt and make more informed decisions regarding the various repayment options and protections available to Federal customers; and

d. Customers receive a consistent experience solely under the FSA brand across all vendors.

Second, FSA intends to improve its operational flexibility by creating an environment that can efficiently and effectively integrate new and existing capabilities and features, continuously improve and innovate, and adjust to stay in compliance with changing Federal rules, regulations, and law.

Third, FSA intends to drive greater operational efficiency; reduce complexity; improve the stability, resiliency, enterprise risk management, and cybersecurity of its systems; and ensure effective and efficient use of taxpayer dollars.

Fourth, FSA intends to measure its success in part on how well it improves customer outcomes and facilitates compliance with Federal consumer protection standards and Title IV legal requirements. Examples of improved customer outcomes include:

https://www2.ed.gov/about/reports/annual/2017report/fsa-report.pdf

a. Increased customer satisfaction scores;

b. Better informed borrowing decisions;

c. Decreased percentage of borrowers in delinquency or default;

d. Reduction of borrowers in deferment and forbearance;

e. Increased borrower repayment rate;

f. Increased digital self-service by customers (instead of calls to FSA); and

g. Reduction in mail correspondence and payments (in favor of digital solutions).

FSA intends to accomplish those goals by deploying a new technical and operational architecture that will provide a world-class customer (i.e., student, parent, borrower) and partner (e.g., schools) experience across the entire student aid lifecycle, including both enterprise-wide solutions and solutions specifically for student aid processing and servicing. This architecture will include:

Omni-channel, enterprise-wide customer engagement led by a mobile-first, mobile-complete, and mobile-continuous solution

To enable a world-class customer experience, FSA intends to procure an enterprise-wide, FSA-branded omni-channel digital platform featuring a mobile-first, mobile-complete, and mobile-continuous solution. The digital platform will be FSA’s “digital front door” for all customer journeys to replace FSA’s multiple customer facing websites. To realize this vision, the digital platform will consolidate the functionalities of the multiple websites, mobile applications, and contact centers that currently exist across the full customer lifecycles (from application to school to servicing to default). This will require the digital platform to be closely integrated with other NextGen solutions, other future state solutions, and existing FSA systems (including those that serve partners) This solution will provide customers with a personalized, self-service experience across multiple channels, robust self-service options, and seamless escalation to additional support when needed.

Common, integrated data management

FSA envisions a solution to ensure customer touchpoints feed into a common integrated data management platform which contains all customer information from throughout the student aid lifecycle. This common, integrated data management system will allow FSA to:

a. Generate customer and loan portfolio insights through advanced analytics that improve services and reduce risk;

b. Reduce error rates to lessen customer frustration and processing expense;

c. Lower operating expenses through efficiency gains; and

d. Consolidate loans and grants that are currently processed on four different systems onto new and/or enhanced platform(s).

Robust cybersecurity and data protection

State-of-the-art cybersecurity protection shall be integrated into all existing and future state solutions, and enterprise-wide cybersecurity will be holistically assessed and tested on an ongoing basis to ensure customer and FSA data is consistently protected.

Integration across the enterprise and potential to further scale solutions

Solutions will need to be integrated with existing and new solutions as well as vendors from across the student aid lifecycle.

Accordingly, all solutions will be implemented with both integration and future scalability in mind, ensuring third-parties can “plug in” to use common tools and feed into common interfaces.

Implementation approach that minimizes risk and disruption for customers while deploying world-class solutions

FSA anticipates the near-term need for multiple servicing solutions while moving towards the future state of a single servicing platform operating environment. FSA will need to migrate, through conversion, nearly 200 million loan accounts from existing servicers on a rapid but feasible schedule that minimizes disruptions for customers while ensuring that complete migration.

The Future State Core Platform will need to seamlessly integrate with existing and future solutions provided by FSA or other vendors, across the entire student aid lifecycle. Those solutions include NextGen solutions such as the FSA-branded digital platform, contact center technical backbone and support, CRM, business process operations, identity and access management, and analytics platform.

FSA will have dedicated resources to validate vendor accountability by monitoring the operational environment and vendor performance to ensure a higher caliber of service than current state.

SECTION D, PACKAGING AND MARKING

FSA 27-1 Labeling of Documents (JUN 2007)

The Contractor shall not label any data produced in performance of this contract in a way that would restrict the Government's right to use or release the information. If applicable, the Contractor shall include a legend that identifies sensitive data that should not be released for security reasons. Under FAR clause 52.227-14, Rights in Data-General (or 52.227-15, -16, -17) clause, this data may be used for any purpose the Government deems appropriate. Deliverables shall not contain vendor-specific logos, mottos, watermarks, or holograms.

The Contractor shall not use, particularly for proposals, U.S. Government logos, such as the U.S. Department of Education or Federal Student Aid.

(End of Clause)

SECTION E, INSPECTION AND ACCEPTANCE

52.246-4 Inspection of Services – Fixed Price (AUG 1996)

SECTION F, DELIVERIES OR PERFORMANCE

52.242-15 Stop Work Order (AUG 1989) 52.242-17 Government Delay of Work (APR 1984) 52.247-55 F.O.B. Point for Delivery of Government-Furnished Property (JUNE 2003)

FSA 37-2 CONTINUATION OF MISSION CRITICAL CONTRACTOR SERVICES (OCT 2012)

(a) Definition. As used in this clause—

(1) Mission Critical Contractor System or Other Services are defined as a system or other services that have a material impact on the accomplishment of the Federal Student Aid mission.

(b) The services under this contract are vital to the mission of the Department of Education (ED). The Contractor shall be responsible for the availability of all systems operated, or other services performed by the Contractor for ED, regardless of location. This clause applies to all or any part of the contract that includes services that directly support the agency's mission.

(c) The Contractor shall provide, implement, and maintain a Continuation of Mission Critical Services Plan (also referred to as Contingency Plan, or “The Plan”) for continuing performance of services no matter the circumstances. The Plan shall describe the processes and procedures that will be followed to ensure continued availability of services under this contract. Any alternate site used as part of Disaster Recovery shall be fully operational within 48 hours of a declared disaster. The Contractor shall identify in the Plan the provisions made for the acquisition of mission critical personnel and resources, if necessary, for continuity of operations for up to 30 days or until normal operations can be resumed.

(d) The offeror shall provide with its offer a written preliminary plan describing how it will continue to perform the contractor services listed in Section C.

(e) Within 60 days after contract award, the Contractor shall submit its Plan for approval, which shall be consistent with and further detail the approach contained in the offeror's proposal. The Plan, as approved by the Contracting Officer, shall be incorporated into the contract as a compliance document. The Plan must, at a minimum, address:

1. Name of company’s officer overall responsible for the maintenance, management, exercising and execution of the Plan;

2. Plans and procedures;

3. Identification of mission critical functions;

4. The time lapse associated with the initiation of the acquisition of mission critical personnel and resources and their actual availability on site;

5. Delegations of authority, planned order of succession, and cross-training to ensure personnel are available to provide services and make key decisions;

6. Proposed alternate operating facilities, interoperable, connectivity and emergency communications approach;

7. Critical records or data storage procedures;

8. Protection of human capital;

9. Testing approach for annual tests;

10. Training plan;

11. Delegation of control and direction;

12. Reconstitution and resuming normal operations plans; and

13. Schedule for periodic review and revisions of Plan.

(f) The Contractor shall maintain and update its Plan as necessary and adhere to its requirements throughout the contract term.

The Contractor shall not materially alter the Plan without the Contracting Officer's written consent.

(g) As directed by the Contracting Officer, the Contractor shall participate and collaborate with ED and its contractors in training events, exercises, and drills associated with Government efforts to test the effectiveness of continuity of operations procedures and practices with internal and external entities. Results of the exercises shall be delivered to the Contracting Officer or other designated representative within 30 days after the exercise.

(h) In the event the Contractor anticipates not being able to perform any of the mission critical contractor services identified in the paragraph above, the Contractor shall notify the Contracting Officer or other designated representative immediately and use its best efforts to cooperate with the Government in the Government's efforts to maintain the continuity of operations. In no way does (h) relieve the contractor of financial responsibility in meeting the contract terms and conditions.

(i) The Government reserves the right to use Federal employees of other agencies or support from other parties or to enter into new contracts for mission critical contractor services. Any new contracting efforts would be conducted in accordance with OFPP letter, “Emergency Acquisitions'' May 2011 and FAR Part 18, respectively, or any other subsequent emergency guidance issued.

(j) The Contractor shall include the substance of this clause, including this paragraph (j), in subcontracts for the mission critical services.

(End of clause)

FSA 37-3 Disruption of Mission Critical Contractor System or Other Services (SEP 2012)

(a) Definition. As used in this clause—

(1) Mission Critical Contractor System or Other Services - are defined as a system or other services that have a material impact on the accomplishment of the Federal Student Aid mission.

(b) The contractor is required to coordinate all changes to mission critical contractor systems or other services used to implement Federal Student Aid IT operations and services with the individual(s) identified in (c) at least five business days prior to the changes, absent exigent circumstances. Emergency changes require immediate notification of the individual(s) identified in (c) as soon as the charge requirement is known, but prior to the change. If the continuity of such systems or services is disrupted as a consequence of the Contractor’s failure to adequately coordinate these changes with FSA, the Contractor may be subject to contractual remedies available to the government pursuant to the terms of the contract or as authorized by law.

(c) The Contractor shall contact the following individuals to coordinate all changes to mission critical contractor systems or services:

Contracting Officer and Contracting Officer’s Representative

(End of Clause)

SECTION G, CONTRACT ADMINISTRATION DATA

FSA 32-3, Invoice and Contract Financing Requests Submission – Invoice Processing Platform (December 2017)

(a) Payments shall be rendered in accordance with the identified payment schedule(s), and any other incorporated payment clause(s), specified rates, and/or fixed price amounts.

(b) The contractor shall submit invoices electronically by means of the web-based system, Invoice Processing Platform

(IPP) that can be accessed at: http://www.ipp.gov/. All submitted invoices must be accompanied by supporting documentation in accordance with the contract’s terms and conditions. The supporting documentation shall be submitted in the following formats: Adobe Acrobat (pdf), Microsoft Word (doc), Pictures (jpeg), Microsoft Excel (excel), or Microsoft Outlook message (msg). The invoice processing platform limits 25 attachments per invoice at 10 MB per attachment.

(c) If the Contractor does not have an IPP account that was established by either the Department of Education or another Government agency, an IPP account will be created for the Contractor by the FSA IPP Systems Administrator, using the Contractor’s Designated Primary Administrator that is identified in the “Accounts Receivable POC” Section of the Contractor’s System for Award Management (SAM) located at https://www.sam.gov/portal/public/SAM/.

(d) Within ten (10) business days of the Contractor entering or updating the “Accounts Receivable POC” information within the Contractor’s SAM registration, the Designated Primary Administrator will receive an email from the IPP Customer Support Team containing the Designated Primary Administrator’s IPP username. Within 24 hours of receiving the initial email, the Designated Primary Administrator will receive a second email containing their IPP password. Once both emails have been received, the Designated Primary Administrator must log into IPP and complete the registration process.

(e) The Contractor’s Designated Primary Administrator will be authorized to further designate other administrators under the Contractor’s IPP account who may submit invoices on behalf of the Contractor.

(f) The Contractor must ensure that the “Accounts Receivable POC” Section of its SAM registration is accurate and up-to-date.

(g) In the event that an invoice is rejected, the contractor shall make the necessary corrections and resubmit the invoice by means of IPP. Any questions, concerns, or issues regarding the use of IPP should be directed to IPP Customer Support Team, as identified at http://www.ipp.gov/

(End of clause) http://www.ipp.gov/ https://www.sam.gov/portal/public/SAM/ http://www.ipp.gov/

FSA 43-1 Change Request Modifications (NOV 2013)

This contract includes one or more Contract Line Item Numbers (CLINS) that will be used to fund Change Requests (CR). A CR may take the form of either a contract modification or other written documentation of the change. All CRs will be issued by a numerical sequence and date (CR95, 11/20/13) and further provide indication of the CLIN that provides an appropriation to fund the CR. In the event a CR is issued via written communication other than an SF-30 contract modification, the Contracting Officer will issue an SF-30 unilateral contract modification that summarizes all CR changes. Change request modifications issued on a more frequent basis are solely at the discretion of the Contracting Officer. CR summary modifications are for administrative convenience and confer no extra rights to the parties to the contract.

(End of Clause)

SECTION H, SPECIAL CONTRACT REQUIREMENTS

H-1 Service Level Agreements (SLAs) – Incentive Payments

The Contractor agrees that any payment of incentives for exceeding an SLA is conditioned on continued compliance by the Contractor with all laws governing loan servicing and collection practices. In the event of any default by the Contractor or a finding by the Government of a systematic or significant failure to comply with such laws by the Contractor, the Government may unilaterally suspend or cancel this incentive payment mechanism.