Committee approves large expansion to Student 1st Technologies contract after members press for performance review

The Fiscal Review committee approved an amendment increasing the Department of Education’s maximum liability for Student 1st Technologies from $280,761,614.36 to $636,949,396.23 to cover additional seats in school choice programs. Emily Cornute, director of policy and legislative affairs for the department, told the committee the amendment updates maximum liability only and does not extend the underlying contract term.

A committee member pressed the department on the vendor’s record in other states, saying, “Arkansas terminated their contract with this company after repeated missed deadlines and faulty platforms” and noting that West Virginia had required the company’s CEO to publicly promise to stop seeking new business until problems were fixed. Cornute responded that the department conducted a competitive RFP in April to plan for services after the contract expires and that “thus far, Student 1st Technologies has been a good partner to the department” and has delivered on contract terms.

Members asked for details about contractual remedies and independent review. Keith Miner, the department’s senior associate counsel for operations, outlined enforcement tools: “All of our contracts have audit provisions … we also include things like liquidated damages, and there are clawbacks as well,” and said the comptroller can audit vendors. The department also said it is not seeking to extend the contract term beyond its May 25, 2028 expiration at this time; the vote before the committee updated only the maximum liability.

The committee approved the amendment by voice vote. Members asked the department to provide further documentation on performance reviews and contractual remedies if available and to note which bidders participated in upcoming award decisions.