Department of Education
Abbreviation: ED
Secretary of Education (as of 2026): Linda McMahon
2026 Budget: $79B
CGAC Code: 9100
Website: ed.gov
The Department of Education establishes policy, administers, and coordinates most federal assistance to education. It ensures equal access to education, collects data on America's schools, and manages the federal student financial aid portfolio, the largest consumer lending program in the United States.
Created in 1980, ED does not operate schools itself; elementary and secondary education remains a state and local responsibility. Its principal levers are grants under the Elementary and Secondary Education Act, the Individuals with Disabilities Education Act, Pell Grants, and civil rights enforcement.
Sub-Departments
Bureaus, services, and major components within ED.
Federal Student Aid
Administers Title IV federal grant, loan, and work-study programs including the FAFSA and direct student loans.
Institute of Education Sciences
The statistics, research, and evaluation arm of ED; home of the National Assessment of Educational Progress.
Office for Civil Rights
Enforces civil rights laws prohibiting discrimination in programs or activities that receive federal financial assistance from ED.
Office of Elementary and Secondary Education
Administers Title I, school improvement grants, and other K-12 formula and discretionary programs.
Office of Postsecondary Education
Oversees policy, programs, and institutional accreditation recognition for colleges and universities.
Office of Special Education and Rehabilitative Services
Supports programs for infants, toddlers, children, youth, and adults with disabilities, including IDEA Part B.
How to Win ED Contracts
Winning work at the Department of Educationmeans understanding a procurement culture that blends rigorous compliance, deep mission focus, and a preference for vendors who can speak the agency's language from day one. This guide walks through how ED buys, the vehicles it uses, and the steps your company should take to go from registered vendor to awarded contractor.
Understanding ED Procurement
The Department of Education obligates roughly $1.5-2B in contracts annually, dominated by Federal Student Aid (FSA) operations, including servicing student loans, processing FAFSA applications, and running the National Student Loan Data System. Non-FSA contracts cover research, technical assistance, evaluations, and K-12/higher-ed program support.
Education procurement is shaped by statutory protection of borrower data (FERPA, Title IV) and the political visibility of FSA operations. Cybersecurity, call-center operations, loan servicing, and data analytics are dominant contract categories.
How ED Buys
FSA operates through large IDIQs like NextGen Financial Services Environment (now Unified Servicing and Data Solution, USDS), Business Process Operations (BPO), and Enterprise Call Center contracts. Non-FSA work flows through GSA MAS, OASIS+, and agency BPAs.
Education maintains an active Acquisition Forecast and hosts industry days several times per year, particularly around FSA modernization and research-evaluation work.
Major Contract Vehicles
- FSA USDS (Unified Servicing and Data Solution)— FSA’s flagship student loan servicing platform contracts.
- FSA Business Process Operations (BPO)— Multi-year IDIQ for loan servicing operations, collections, and borrower support.
- FSA Next Gen Processing and Servicing— Ongoing FAFSA processing and federal aid delivery contracts.
- OASIS+— Primary GWAC for Education professional services and research.
- GSA MAS— Heavily used for IT, research, and administrative support.
Step 1: Get Registered and Compliant
Required Registrations
ED-Specific Requirements
Certification Programs
Step 2: Identify Opportunities
Primary Sources
Key Offices
Top Contract Types
Step 3: Position Your Company
Build Relationships
Relevant NAICS Codes
- 541512–Computer Systems Design
- 541611–Management Consulting
- 541720–Research in Social Sciences and Humanities
- 561110–Office Administrative Services
- 522292–Real Estate Credit
- 561422–Telemarketing and Call Centers
Step 4: Develop Winning Proposals
Technical Approach
Past Performance
Pricing Strategy
Winning Strategies
- Specialize in FSA, since the non-FSA Education spend is relatively small and fragmented, while FSA is a multi-billion-dollar ongoing program.
- Maintain FISMA ATOs proactively; FSA procurements time out bidders who can’t demonstrate operational security readiness.
- Invest in borrower-experience capability (CX, contact center analytics); FSA and OIG scrutiny is increasing on call quality.
- Team with incumbents early, since the FSA USDS transition has created openings for subs willing to absorb servicing domain knowledge.
- Track ED OIG and GAO reports on FSA; they forecast the next wave of procurement priorities.
Common Mistakes to Avoid
- Bidding FSA work without demonstrable regulated-data experience. FERPA and Title IV violations carry massive reputational risk.
- Under-resourcing proposal teams on call-center operations, since staffing plans need to be defensible under surge assumptions.
- Treating Education like other research agencies; FSA’s operational tempo is much closer to financial services than to traditional federal R&D.
Small Business Programs
Education has strong 8(a) and WOSB utilization on non-FSA research, technical assistance, and support work. FSA primes are typically large, but small-business subcontracting plans on those primes regularly exceed 30%.
Key Contracting Offices
- Federal Student Aid Acquisition — Washington, DC
- Contracts and Acquisition Management (CAM) — Washington, DC
- Institute of Education Sciences (IES) Contracts — Washington, DC
ED by the Numbers
Ready to Win ED Contracts?
Stop guessing — let Blacksmith AI draft your next winning proposal.