Department of Education awards $68.3M contract to Bass & Associates for federal student loan debt collection
Contract Overview
Contract Amount: $68,330,465 ($68.3M)
Contractor: Bass & Associates a Professional Corp
Awarding Agency: Department of Education
Start Date: 2016-07-29
End Date: 2024-09-30
Contract Duration: 2,985 days
Daily Burn Rate: $22.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 22
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: "CRITICAL FUNCTION" - IGF::CT::IGF PRIVATE COLLECTION AGENCY PERFORMS COLLECTION AND ADMINISTRATIVE RESOLUTION ACTIVITIES ON DEBTS RESULTING FROM NON-PAYMENT OF STUDENT LOANS MADE UNDER THE VARIOUS FEDERAL STUDENT AID LOAN PROGRAMS.
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85712
State: Arizona Government Spending
Plain-Language Summary
Department of Education obligated $68.3 million to BASS & ASSOCIATES A PROFESSIONAL CORP for work described as: "CRITICAL FUNCTION" - IGF::CT::IGF PRIVATE COLLECTION AGENCY PERFORMS COLLECTION AND ADMINISTRATIVE RESOLUTION ACTIVITIES ON DEBTS RESULTING FROM NON-PAYMENT OF STUDENT LOANS MADE UNDER THE VARIOUS FEDERAL STUDENT AID LOAN PROGRAMS. Key points: 1. The contract supports critical functions for federal student loan repayment. 2. Bass & Associates is the sole awardee under this specific delivery order. 3. The contract value is substantial, indicating significant debt collection activity. 4. The sector is financial services, specifically debt collection for government programs.
Value Assessment
Rating: good
The contract is a firm-fixed-price delivery order, providing cost certainty. The total award value of $68.3M over its period suggests a significant volume of debt being managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific source exclusions. This method aims for competition while potentially narrowing the field.
Taxpayer Impact: Taxpayer funds are used to recover defaulted student loan debt, aiming to recoup losses and maintain program integrity.
Public Impact
Ensures continued operation of federal student loan repayment programs. Supports the government's ability to recover funds from defaulted loans. Impacts borrowers who are delinquent on their federal student loans. Maintains financial stability within federal education initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition noted in award type.
- Potential for vendor lock-in if not re-competed broadly.
- Reliance on a single firm for critical collection activities.
Positive Signals
- Clear definition of critical function.
- Firm-fixed-price contract provides cost predictability.
- Long-term contract duration suggests established performance.
Sector Analysis
This contract falls within the financial services sector, specifically focusing on debt collection for government-backed loans. Benchmarks for similar collection contracts can vary widely based on debt type and recovery rates.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). The focus is on specialized collection agencies capable of handling large volumes of federal debt.
Oversight & Accountability
The Department of Education is the contracting and administrative agency. Oversight would focus on performance metrics, collection rates, and compliance with federal regulations for debt collection.
Related Government Programs
- Collection Agencies
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Limited competition.
- Reliance on a single provider for a critical function.
- Potential for high volume of defaulted loans.
- Performance metrics not detailed in provided data.
Tags
collection-agencies, department-of-education, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $68.3 million to BASS & ASSOCIATES A PROFESSIONAL CORP. "CRITICAL FUNCTION" - IGF::CT::IGF PRIVATE COLLECTION AGENCY PERFORMS COLLECTION AND ADMINISTRATIVE RESOLUTION ACTIVITIES ON DEBTS RESULTING FROM NON-PAYMENT OF STUDENT LOANS MADE UNDER THE VARIOUS FEDERAL STUDENT AID LOAN PROGRAMS.
Who is the contractor on this award?
The obligated recipient is BASS & ASSOCIATES A PROFESSIONAL CORP.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $68.3 million.
What is the period of performance?
Start: 2016-07-29. End: 2024-09-30.
What is the historical performance of Bass & Associates in collecting federal student loan debt?
Historical performance data for Bass & Associates would be crucial to assess their effectiveness and efficiency in debt recovery. This includes metrics like recovery rates, cost per dollar collected, and compliance history. Understanding their track record provides insight into the value derived from this contract and informs future procurement decisions.
What are the specific criteria for 'exclusion of sources' in this limited competition?
The 'exclusion of sources' likely pertains to specific qualifications, past performance, or capabilities required for managing federal student loan debt collection. Understanding these criteria is key to evaluating whether the limited competition adequately served the government's interest in obtaining the best value and service.
How does the cost-effectiveness of this contract compare to alternative debt recovery methods or providers?
Assessing the cost-effectiveness requires comparing the contract's performance metrics (e.g., cost per dollar collected) against industry benchmarks and potentially other government debt recovery programs. This analysis helps determine if the current approach represents optimal value for taxpayer dollars in recovering defaulted student loans.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Collection Agencies
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 22
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3936 E FT LOWELL STE 200, TUCSON, AZ, 85712
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $68,330,465
Exercised Options: $68,330,465
Current Obligation: $68,330,465
Actual Outlays: $47,555
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $29,000,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: EDFSA14D0011
IDV Type: IDC
Timeline
Start Date: 2016-07-29
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2021-12-07
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