ED Releases New NextGen Solicitation; The Road for PCAs Remains Unclear

Yesterday the Department of Education (ED) released its re-do of the solicitation for business process services under the ambitious new NextGen student loan servicing environment. As I read this new solicitation, I’m still not sure how Private Collection Agencies (PCAs) can compete.

The original version of the solicitation incorporated a two-phase procurement, where only those chosen during phase one would be able to bid on phase two. But ED changed the scope of work between phase one and phase two, which sparked protests from ...just about everyone, claiming they had been unfairly excluded from bidding on a contract they would have been qualified for. Suits were filed in the Court of Federal Claims (COFC). Judge Thomas Wheeler sided with the plaintiffs, and ordered the re-do from ED.

To put the PCA role in full context here, let’s back up a moment. Here is the VERY brief history of how we got where we are:

View this content by subscribing

Please register to unlock this content

I already have an account. Log in