State of Tennessee Tennessee Higher Education Commission 9 Floor, 312 ...
Mike Krause Executive Director
MEMORANDUM
State of Tennessee Tennessee Higher Education Commission
9th Floor, 312 Rosa L. Parks Avenue Nashville, TN 37243 (615) 741-3605
Bill Lee Governor
TO:
Rep. Ron Travis, Chair, Fiscal Review Committee
FROM:
Shauna Jennings, Deputy General Counsel, Tennessee Higher Education Commission
DATE:
JJuly 7, 2020
RE:
Non-Competitive Contract Summary
National Student Clearinghouse
Pursuant to Chapter 403, Public Acts of 2013, the Tennessee Higher Education Commission (THEC) submits this non-competitive contract for the provision of a statewide electronic transcript exchange with the National Student Clearinghouse.
THEC is providing the information below at the request of the Fiscal Review Committee.
Background and Objectives: The Tennessee Electronic Transcript Exchange streamlines the process for Tennessee students to transmit high school and higher education transcripts. The Transcript Exchange provides a FERPA-compliant portal that allows for the secure transmission of education records as opposed to sending FERPA-protected student records via regular mail. The Exchange streamlines the process for high school counselors and registrars to exchange transcripts with higher education institutions and other entities, like the NCAA Eligibility Center and NAIA Eligibility Center, both within Tennessee and outside the state. There is no cost to Tennessee high schools or their students to use the Exchange. Additionally, the Tennessee Electronic Transcript Exchange allows higher education institutions to exchange transcripts with other higher education institutions and employers in a secure, efficient manner. There is no charge to Tennessee postsecondary institutions to participate in the postsecondary to postsecondary exchange. Additionally, there is no charge to Tennessee college students to send electronic transcripts to Tennessee institutions that participate in the Exchange.
Notably, the Exchange provides GPA data to e*GRandS, the electronic grants and scholarships system used to administer the application, payment, and reporting process of state financial aid, for the purpose of determining eligibility for Tennessee Education Lottery Scholarship (TELS) programs. This transfer alleviates the need for school staff members to manually submit student data. Sending GPAs through the Exchange ensures accurate data transfer to determine scholarship eligibility. Of the transcripts submitted last year, 23,999 transcripts matched with a Free Application for Federal Student Aid (FAFSA) record. During the last academic year, THEC and the Tennessee State Assistance
Corporation (TSAC) used the Tennessee Electronic Transcript Exchange data to determine eligibility for 25.99% of high school seniors in the state.
Contract Term: October 26, 2020 through October 25, 2025 Maximum Contract Liability: $2,000,000 Annual expenditures will be $400,000 and will be paid as follows from Interdepartmental (Lottery) funds:
Goods or Services Description Quarterly Rate
Amount (per compensable increment) $100,000
Justification for Non- Competitive Contract
The National Student Clearinghouse won a previous competitively procured bid for the high school transcript exchange. The transition to a new electronic exchange vendor would disrupt the state's ability to continuously provide a convenient and FERPA-protected transcript exchange solution. Last school year, Tennessee high schools sent 37,886 transcripts to postsecondary education institutions (27,710 in-state, 10,176 out-of-state) using the Tennessee Electronic Transcript Exchange. The number of transcripts sent from Tennessee high schools to postsecondary institutions nearly doubled each year of implementation on the past five (5) year contract. Due to the need to onboard each individual high school or school district, transitioning vendors could disrupt the transcript sending and receiving practices at Tennessee high schools and higher education institutions. For context, the need for redeploying a transcript solution on the last contract resulted in taking approximately four (4) years to return the volume of transcripts being sent to TSAC to levels commensurate with what was occurring at the close of the previous transcript exchange contract.
Additionally, the implementation of a new solution would come at significant cost of time and effort amount K12 and higher education staff. Currently, 172 high schools have completed the steps for full implementation of the current exchange. It takes approximately 15 hours to do the testing and setup necessary to use the system. If a new vendor were selected, high schools stand to commit 2,580 hours of effort to transition to a different solution. This estimate does not account for the 120 high schools that are currently in the implementation pipeline. Currently, 47 Tennessee higher education institutions are set up to receive electronic high school transcripts using the Electronic Transcript Exchange. Enrollment at these 47 institutions represents 79% of the students enrolled at Tennessee postsecondary institutions. Additionally, the Tennessee Board of Regents (TBR) has spent hundreds of hours customizing their student information system output to not only take full advantage of the currently procured system but also further enhance their institutions' efficiencies by leveraging the transmission of electronic data.
The contract costs for the current procurement with the National Student Clearinghouse were approximately half of the proposed costs of the second highest ranking respondent to the 2015 request for proposals. Furthermore, costs proposed by the National Student Clearinghouse for the new procurement are 16.7% less than the current contract costs since a continuation of services would not require new development or implementation costs. Lastly, the current system has become a key component to important business systems.
Supplemental Documentation Required for Fiscal Review Committee
*Contact Name: Troy Grant
*Contact 615.532.0423 Phone:
*Presenter's Emily House, Lou Hanneman
name(s):
Edison Contract Number: (if applicable)
66059
RFS Number:
(if applicable)
33201-00321
*Original or Proposed Contract 10/26/2020
*Current or Proposed End
10/25/2025
Begin Date:
Date:
Current Request Amendment Number:
(if applicable)
N/A
Proposed Amendment Effective Date:
(if applicable)
N/A
*Department Submitting: Tennessee Higher Education Commission
*Division: College Access Initiatives
*Date Submitted: 07/07/2020
*Submitted Within Sixty (60) days: Yes If not, explain:
*Contract Vendor Name: National Student Clearinghouse
*Current or Proposed Maximum Liability: $2,000,000.00
*Estimated Total Spend for Commodities: $2,000,000.00
*Current or Proposed Contract Allocation by Fiscal Year:
(as Shown on Most Current Fully Executed Contract Summary Sheet)
FY:
21
$ 400,000.00
FY: 22 FY: 23 FY: 24 $ 400,000.00 $ 400,000.00 $ 400,000.00
FY 25 FY $ 400,000.00 $
*Current Total Expenditures by Fiscal Year of Contract:
(attach backup documentation from Edison)
FY:
FY:
FY:
FY:
FY
FY
$
$
$
$
$
$
IF Contract Allocation has been
greater than Contract
Expenditures, please give the
reasons and explain where surplus
funds were spent:
IF surplus funds have been carried
forward, please give the reasons
and provide the authority for the
carry forward provision:
IF Contract Expenditures exceeded
Contract Allocation, please give the
reasons and explain how funding
was acquired to pay the overage:
Revised April 2014
Supplemental Documentation Required for Fiscal Review Committee
*Contract Funding Source/Amount: State:
Federal:
Interdepartmental: $2,000,000.00
Other:
If "other" please define: If "interdepartmental" please define:
Dates of All Previous Amendments or Revisions: (if applicable)
THEC is reimbursed by Tennessee Student Assistance Corporation (TSAC).
Brief Description of Actions in Previous Amendments or Revisions: (if applicable)
Method of Original Award: (if applicable) *What were the projected costs of the
service for the entire term of the contract prior to contract award?
How was this cost determined? *List number of other potential vendors
who could provide this good or service; efforts to identify other competitive procurement alternatives; and the
reason(s) a sole-source contract is in the best interest of the State.
Sole-Source
The projected costs of the service for the entire term of the contract was $2,000,000.00 and was determined by NSC's set rate schedule that is consistent with rates of these services provided nationally.
In 2015, THEC procured a transcript data exchange solution through a competitive request for proposals. The National Student Clearinghouse was winner of that bid. The second vendor in contention for the service provided a bid of $4,815,651.00, or approximately twice the bid price of the winning solution. These services are provided by NSC with the annual rate based on student enrollment at affiliate postsecondary institutions. The current vendor is in good standing and has delivered contract deliverables as outlined in the current contract agreement. The transition to a new electronic exchange vendor would disrupt the state's ability to continuously provide a convenient and FERPAprotected transcript exchange solution. Furthermore, costs proposed by the National Student Clearinghouse for the new procurement are 16.7 percent less than the current contract costs due to the fact that a continuation of services would not require development or implementation costs.
Revised April 2014
04-01-19 REQUEST-RULE
Rule Exception Request
Use this document to request changes to Central Procurement Office templates, policies, or other procurement documents or to modify the "necessary contract clauses" identified in Tenn. Comp. R. & Reg. 0690-03-01-.17 ("CPO Rule 17"). Complete this document in conformity with CPO Rule 17, which is available here. Upload the completed document and route for approvals by selecting the appropriate RER e-Form in Edison. For additional guidance, please see the e-Forms Job Aid available online at the following: . All Rule Exception Requests are subject to review and approval by the Chief Procurement Officer. Rule Exception Requests that propose to modify any of CPO Rule 17's necessary contract clauses shall be subject to review and approval by the Comptroller of the Treasury. Note: If the requested changes involve contracts under a delegation, please use the RER for the DA or DGA templates. Also, any change to the template language regarding the Limitation of Contractor's Liability shall be submitted using the Limitation of Contractor's Liability Request.
APPROVED
APPROVED
[Upload this RER to e-Forms in Edison. Approval will be captured in Edison Workflow.]
[Upload this RER to e-Forms in Edison. Approval will be captured in Edison Workflow.]
CHIEF PROCUREMENT OFFICER
COMPTROLLER OF THE TREASURY
Agency request tracking #
33201-00321
1. Procuring Agency
Tennessee Higher Education Commission (THEC)
2. Edison contract ID #
66059
Grant Contract ? for contracts involving Grants
3.
Please select Procurement or Contract Type. (This will be the RER e-Form for routing
Technology - for contracts involving technology Risk Management - for changes to insurance or indemnification
purposes.)
Standard ? Agency Term Contract or Statewide Contract (use for
non-technology contracts for goods or services)
4. Contractor or Grantee
National Student Clearinghouse (NSC)
5. Contract's Effective Date
10/26/2020
6. Contract or grant contract's Term (with ALL options to extend exercised)
60 months
7. Contract's Maximum Liability (with ALL options to extend exercised)
$2,000,000.00
8. Citation and explanation of the rule(s) for which the exception is requested
Tenn. Comp. R. & Regs. 0690-03-01-.17(2) provides a mechanism for requesting modifications and additions to contract template provisions. NSC has requested multiple changes to the FA template, which do not materially change the obligations, and thus THEC is requesting through this rule exception request.
9. Description of requested changes If adding new provisions or modifying existing provisions, insert the new or modified provisions in their entirety. Please provide red-lines or track changes to highlight any deviations from template language.
The following changes to the FA template are requested, please note that other template changes have been approved with RER SEQ. 1612:
E.4. Family Educational Rights and Privacy Act & Tennessee Data Accessibility, Transparency and Accountability Act. The Contractor shall comply with the Family Educational Rights and Privacy
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