ED Cancels Latest Phase of NextGen Procurement; Expert Reaction with Randy Kamm

In Fed Debt Opps’ most recent podcast and corresponding article, Randy Kamm, co-founder of Fed Debt Opps, summarized the latest events surrounding the U.S. Department of Education’s (ED) ongoing (and tumultuous) effort to successfully conduct its procurement and source selection of service providers who will deliver systems and business services under its Next Generation (NextGen) Financial Services Environment. The procurement supports ED’s Office of Federal Student Aid’s (FSA) redesign of its federal student aid delivery, servicing, and post-default collection system.

On December 14, in response to the latest round of protests and lawsuits brought by various student loan servicing organizations and private collection agencies (PCAs), ED again changed course and cancelled its latest phase of this procurement, announcing it intends to reissue a new solicitation on January 15, 2019.

ED’s cancellation resulted from U.S. Federal Claims Court Judge Thomas Wheeler’s December 4 directive, where the Court upheld the protesting companies’ complaints. The Court directed ED to take corrective action to address issues raised by protesting servicers and collectors:

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