RFI_Perkins Recompete_Final 112023.docx

This is a Request for Information (RFI) to determine available sources and their capability to provide the product or service described below. This RFI does not constitute a solicitation and is not an indication the Government will contract for any of the items and services discussed in this notice. Submission of a response to this RFI is entirely voluntary. The voluntary submissions of answers to this RFI shall not obligate the Department of Education (DoEd) Federal Student Aid (FSA) to pay or entitle the submitter of information to claim any direct or indirect costs, charges, or other compensation whatsoever. This contract was previously awarded to a small business using NAICS 522110 – Commercial Banking. The re-competed effort is anticipated to be awarded to a small business under the same NAICS.

Any information considered proprietary should be noted via appropriate markings. The Government will use such information only to inform and support any potential solicitation and contract or for such other purposes as described below.

The purpose of this RFI is to gain information on current industry capabilities for developing an electronic, secure full spectrum loan servicing system to allow for the management of the current Federal Perkins portfolio held at the Department, the submission, processing, and validation of assignment data (single loan and multiple loan batches) from institutions and/or third-party contractors to support the requirements and design approved by FSA. The result of which will allow the recording and storing of all loan assignment activities for each loan including the upload and storage of loan documents; and which will permit querying and report creation of all loan assignment data.

Background and Key Information The Perkins portfolio is comprised of the school-held Perkins Loan Portfolio and the Department held Perkins Loan Portfolio. Institutions or their servicers administer the Perkins Loan Portfolio (School Held). The school held Perkins Loan Portfolio contains approximately 1.9 million open loans (as of August 2023). The Department’s Perkins Loan Portfolio (ED Held) comprises defaulted and non-defaulted Perkins loans. The ED held non-defaulted Perkins Loan Portfolio contains approximately 525,000 loans.

The Perkin’s Loan program is slowly winding its way down but may take years until loans are repaid or otherwise fully retired. All Perkins Loans have a 10-year repayment plan. However, borrowers can extend the time in repayment via forbearance or deferment.

Although institutions are allowed to continue to service their current portfolio, many institutions will likely liquidate their Perkins portfolio to the Department. The servicer of the Perkins Loan Portfolio (Federally held) must accommodate the assignment of a significant percentage of Perkins loans through the liquidation process. With the increase in loan volume expected for the Perkins Loan Portfolio (ED held), a servicer will need to focus on default aversion through changing macroeconomic environments.

The Perkins Loan servicer will be a pass through to the Debt Management and Collections System (DMCS) and will accept the assignments and transfer the loans to DMCS . DMCS will service the defaulted loans, . Approximately, 90% of the loans assigned to ED are defaulted.

Questions to prospective vendors

1. Can you provide examples of past performance (contract number, agency, dollar amount) with the servicing of Perkins Loans or other loan types?

2. If you already have a current loan servicing platform system, how would you handle the Perkins Loan portfolio and what changes would you need to make to your current system to accommodate the portfolio?

3. We expect 90% of the current Ed Held portfolio could potentially transfer to the forbearance status 180 days after award. Knowing this would your company still be interested in proposing on this requirement?

4. What would you propose to assist Perkins borrowers to help them remain in a current status?

5. What would you propose as a pricing model for the ongoing performance?

6. If you are proposing the development of a system, what would be your proposed compensation methodology?

7. For adaptation of an existing platform: Is it possible to give the Government adequate rights to provide the platform and all necessary components and documentation to a follow-on contractor to operate, maintain, and enhance?

8. For development of a new system: The Government will have unlimited rights to the system and all necessary components and documentation to operate, maintain, and enhance. All 3rd party software licenses used in the system must be transferrable to the Government. If exception is taken, please explain why it is in the interest of the Government to possess less than unlimited rights.

9. Do you have feedback on how the PWS could be improved?

10. Are there any commercial terms or conditions the government should be aware of for an acquisition of this type?

Vendor Requirement See Performance Work Statement (PWS) attached.

Response Due Date/Times Questions about this RFI content are due no later than 12:00 pm EST on Wednesday, November 29, 2023. All questions shall be submitted, via email, to Eddie Lowe, Eddie.Lowe@ed.gov and Briana Debrew, Briana.Debrew@ed.gov. The required subject line is “RFI Perkins Recompete Project Questions”.

All questions shall be in excel format.

Eddie Lowe Contracting Officer Email: Eddie.Lowe@ed.gov

Briana Debrew Contracting Specialist Email: Briana.Debrew@ed.gov

Federal Student Aid Headquarters Address:

Federal Student Aid Union Plaza 830 First Street, NE Washington, DC. 20202

RFI Responses are due no later than 12:00 pm EST on Tuesday, December 12, 2023, and shall not exceed 25 pages (12-point font minimum). All responses shall be submitted in adobe (pdf) format, via email, to Eddie Lowe, Eddie.Lowe@ed.gov and Briana Debrew, Briana.Debrew@ed.gov. The required subject line is “RFI Perkins Recompete Project”.