LITTLE ROCK, Ark. – The Arkansas Department of Education has moved to end a deal with the company that manages the state’s school choice vouchers program.
An Oct. 8 letter from Education Secretary Jacob Oliva to the CEO of Student First Technologies cites the company’s failure to provide an operating computer system on time. Olive states in the letter that the contract will formally end on Dec. 31.
Arkansas Department of Education report details students using Education Freedom Accounts to attend private schools The Arkansas Transparency website shows that the contract with Student First Technologies of Bloomington, Indiana, is valued at $25 million, with $8.840 million paid to date.
Oliva cited a Sept. 16 letter he sent to the vendor warning that it had “calculated substantial damages for failure to satisfy contractual deadlines.” Oliva said this was followed by a Sept. 25 meeting between education officials and Student First to determine a concrete contract completion date and an accounting of funds.
Oliva said Student First did not provide the financial information and stated that Student First advised contract requirements would not be met before Dec. 15, “far beyond the date required by the contract.”
State lawmakers approve LEARNS Act voucher program The letter claimed Student First was in contract default, with late deliveries of the student application function, participating school application, fund disbursement platform and an expense submission platform for private schools & enrolled families from 50 to 59 days past deadline. The letter said these products had “significant problems and delays” after delivery.
Olivia said the vendor application platform requirement had yet to be met and continued that due to the lack of performance and per the contract terms, Student First must pay $213,000 to the department by Dec. 31. The letter states that this, coupled with the contract’s $400,000 initial payment, has created $350,000 in damages to Arkansas.
The lack of delivery plus the penalties means Student First owes ADE $563,000, provided that Student First agrees to the terms by Oct. 31 and pays by Dec. 31, Olivia said. According to the letter, Student First must also pay voucher funds administered for the education department by Dec. 31.
Parent celebrates first year of Arkansas LEARNS Act-funded Education Freedom Accounts Olivia said that if Student First does not agree to the terms of the letter, it will be responsible for any attorney’s fees and litigation costs.
An Arkansas Department of Education spokesperson said the Student First platform was creating problems for students and families.
“The issues that existed with the platform prevented parents from accessing the educational opportunities that are best for their children,” they said. “The vendor [Student First] did not meet any deliverables and did not perform to the high standards we have for the program.”
The spokesperson added that the department had lost confidence in Student First and would continue to work with families.
On Thursday, Arkansas began taking bids on a platform to replace the one provided by Student First.
Education news platform The 74 reported Thursday that West Virginia is having the same problems as Arkansas with Student First.
Demand for Education Freedom Accounts spikes as more Arkansas families become eligible for funds FOX 16 News reached out to Student First Technologies for a statement, but had not received a response as this story was published. If a statement is received this story will be updated.
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