Contractor will service FSA’s portfolio of defaulted student loans and grant overpayment debts, and perform operation and maintenance (O&M) of FSA’s portfolio management database, the Debt Management Collections System (DMCS).

Awarded Limited / Sole Source Justification Posted

Solicitation number
91003125C0011
Agency
Set-aside
No set-aside

Opportunity facts

Contract number
91003125C0011 Federal contract award
Place of performance
United States

Notice details come from SAM.gov. Updated .

About this opportunity

The Department of Education's Federal Student Aid (FSA) office is issuing a Limited / Sole Source Justification Notice for a sole source contract with Maximus Federal Services, Inc. (MFS) to continue servicing and maintaining the Debt Management and Collection System (DMCS). The 18-month fixed-price contract, valued between $150-180 million, will run from February 1, 2025 to July 31, 2026, with options for two additional 3-month periods. The contract covers critical services including system management, operations, development, cybersecurity, help desk support, financial reporting, fulfillment center operations, and default resolution call center services for a portfolio of nearly 6 million defaulted student loan borrowers representing over $120 billion in debt. FSA is awarding the contract solely to MFS due to their unique qualifications as the incumbent system operator since 2013, their existing Authority to Operate (ATO), and the critical need to maintain uninterrupted services for this sensitive system. A previous competitive procurement attempt in 2022-2024 using GSA Alliant II resulted in only one response from MFS, and agreement could not be reached on new requirements, further justifying the sole source approach.

Notice text

Awarded contract 91003125C0011 to unknown vendor for unknown amount on 2025-01-31.

Files

File Type Posted
FINAL_JA_DMCS-SS-Legacy_111324_SPE.pdf PDF

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