Department of Education awards $104M contract to Professional Bureau of Collections for student loan debt resolution
Contract Overview
Contract Amount: $104,190,900 ($104.2M)
Contractor: Professional Bureau of Collections of Maryland, Inc.
Awarding Agency: Department of Education
Start Date: 2016-07-29
End Date: 2024-09-30
Contract Duration: 2,985 days
Daily Burn Rate: $34.9K/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: GREENWOOD VILLAGE, ARAPAHOE County, COLORADO, 80111
State: Colorado Government Spending
Plain-Language Summary
Department of Education obligated $104.2 million to PROFESSIONAL BUREAU OF COLLECTIONS OF MARYLAND, INC. 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 programs. 2. Professional Bureau of Collections of Maryland, Inc. is the awardee. 3. The contract has a long duration, ending in September 2024. 4. This is a firm-fixed-price contract, indicating predictable costs.
Value Assessment
Rating: fair
The contract value of $104M over its period suggests a significant investment in debt collection services. Benchmarking against similar contracts for collection agencies is difficult without more granular data on collection rates and recovery amounts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting some initial competition but potentially limited participation. This method might impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are used to pay for these collection services. The effectiveness of the agency in recovering defaulted student loan debt will determine the ultimate taxpayer impact.
Public Impact
Ensures continued operation of federal student loan collection activities. Impacts borrowers with defaulted federal student loans. Supports the Department of Education's mission to manage student aid programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Long contract duration could mask performance issues.
- Reliance on a single vendor for critical function.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Supports essential government function of debt recovery.
Sector Analysis
The collection agency sector involves specialized services for recovering outstanding debts. Spending in this sector is driven by the volume of defaulted loans and government mandates for recovery. Benchmarks are typically based on recovery rates and cost per dollar collected.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). There is no information provided on subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The Department of Education is the contracting agency, implying internal oversight. Further details on performance monitoring, reporting requirements, and dispute resolution mechanisms would be needed to assess accountability.
Related Government Programs
- Collection Agencies
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for limited competition impacting price.
- Lack of transparency on specific performance metrics.
- Long contract duration without clear performance milestones.
- No indication of small business participation.
Tags
collection-agencies, department-of-education, co, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $104.2 million to PROFESSIONAL BUREAU OF COLLECTIONS OF MARYLAND, INC.. "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 PROFESSIONAL BUREAU OF COLLECTIONS OF MARYLAND, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $104.2 million.
What is the period of performance?
Start: 2016-07-29. End: 2024-09-30.
What is the historical performance of Professional Bureau of Collections of Maryland, Inc. in recovering student loan debt?
Historical performance data for Professional Bureau of Collections of Maryland, Inc. is crucial for assessing the value and effectiveness of this contract. Information on their recovery rates, efficiency in administrative resolution, and adherence to legal and ethical collection practices would provide insight into their capabilities and justify the $104M award.
How does the 'exclusion of sources' in the competition method impact the final price and service quality?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies that while competition occurred, certain potential bidders were excluded. This could limit the range of innovative solutions and potentially lead to a higher price than if all qualified sources had been allowed to compete. Assessing the rationale for exclusion and its impact on price discovery is important.
What are the key performance indicators (KPIs) used to measure the success of this contract and ensure taxpayer value?
Measuring the success of this contract requires clearly defined KPIs, such as the percentage of debt recovered, the cost per dollar collected, borrower satisfaction (where applicable), and compliance with regulations. Robust oversight and regular performance reviews against these KPIs are essential to ensure the Department of Education is receiving effective debt collection services and maximizing taxpayer value.
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: 5295 DTC PKWY, GREENWOOD VILLAGE, CO, 80111
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $104,190,900
Exercised Options: $104,190,900
Current Obligation: $104,190,900
Actual Outlays: $68,318
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $27,206,150
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: EDFSA14D0015
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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