Treasury's $29.8M debt collection contract awarded to Continental Service Group, LLC, with 28 delivery orders

Contract Overview

Contract Amount: $29,798,753 ($29.8M)

Contractor: Continental Service Group, LLC

Awarding Agency: Department of the Treasury

Start Date: 2018-01-26

End Date: 2024-08-17

Contract Duration: 2,395 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRIVATE COLLECTION AGENCY (PCA) SERVICES [MULTIPLE AWARD 3 OF 6]

Place of Performance

Location: FAIRPORT, MONROE County, NEW YORK, 14450

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $29.8 million to CONTINENTAL SERVICE GROUP, LLC for work described as: PRIVATE COLLECTION AGENCY (PCA) SERVICES [MULTIPLE AWARD 3 OF 6] Key points: 1. Value for money assessed through pricing benchmarks and comparison to similar contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and performance history, which require ongoing monitoring. 4. Performance context is within the scope of federal debt collection services. 5. Sector positioning is within the administrative and support services for government agencies.

Value Assessment

Rating: good

The contract's total value of $29.8 million over its period of performance suggests a moderate scale for federal debt collection services. Benchmarking against similar contracts for collection agencies would provide a clearer picture of value for money. However, the firm fixed-price contract type generally offers cost certainty for the government. Without specific per-unit cost data or detailed comparisons to market rates for debt collection, a precise value assessment is challenging, but the competitive award process implies a reasonable price was sought.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 28 delivery orders suggests a robust and ongoing need for these services. The level of competition, while not explicitly detailed by the number of bidders, is presumed to be sufficient given the 'full and open' designation, which typically encourages multiple bids and fosters price discovery.

Taxpayer Impact: A full and open competition generally benefits taxpayers by promoting a competitive environment that can lead to lower prices and better service quality compared to less competitive award methods.

Public Impact

Benefits taxpayers by facilitating the recovery of delinquent federal debts. Delivers essential debt collection services to the Bureau of the Fiscal Service. Geographic impact is national, supporting federal debt recovery efforts across the United States. Workforce implications include employment opportunities within the contractor's organization for collection specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of nearly 7 years (2395 days) may introduce risks related to evolving collection laws and technologies.
Reliance on a single contractor for a significant portion of debt collection services could pose a risk if performance falters.
The 'collection agencies' NAICS code (561440) can involve sensitive data handling, requiring stringent security protocols.

Positive Signals

Awarded under a firm fixed-price contract type, which provides cost predictability.
The contract was competed fully and openly, suggesting a competitive process.
Multiple delivery orders (28) indicate ongoing utilization and likely satisfaction with services rendered to date.

Sector Analysis

The federal debt collection services sector is a critical component of government financial management, aimed at recovering delinquent debts owed to federal agencies. This contract falls under administrative and support services, specifically within the debt collection industry. The market size for such services is substantial, driven by the continuous need for agencies to manage and recover outstanding receivables. Comparable spending benchmarks would involve analyzing other contracts awarded for similar debt collection services across various federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside designation (ss: false, sb: false). Therefore, the primary contractor, Continental Service Group, LLC, is likely a large business. There is no explicit information provided regarding subcontracting plans or performance related to small businesses. The absence of set-asides means that opportunities for small businesses to participate in this contract are dependent on the prime contractor's subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of the Treasury's Bureau of the Fiscal Service. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to successful debt recovery. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would typically fall under the Treasury OIG, which investigates fraud, waste, and abuse in the department's programs and operations.

Related Government Programs

Federal Debt Collection Programs
Accounts Receivable Management Services
Bureau of the Fiscal Service Contracts
Department of the Treasury Administrative Services

Risk Flags

Long contract duration may lead to outdated practices.
Performance metrics not fully detailed, requiring ongoing monitoring.
Potential for evolving regulatory compliance challenges over contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $29.8 million to CONTINENTAL SERVICE GROUP, LLC. PRIVATE COLLECTION AGENCY (PCA) SERVICES [MULTIPLE AWARD 3 OF 6]

Who is the contractor on this award?

The obligated recipient is CONTINENTAL SERVICE GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $29.8 million.

What is the period of performance?

Start: 2018-01-26. End: 2024-08-17.

What is the historical spending trend for federal debt collection services under similar contracts?

Analyzing historical spending trends for federal debt collection services requires examining data across multiple contracts and agencies over several fiscal years. Generally, spending in this area fluctuates based on economic conditions, legislative changes affecting debt recovery, and the volume of delinquent federal debt. Contracts for debt collection are often awarded through competitive processes, with pricing influenced by the complexity of debt, recovery rates, and the contractor's efficiency. The total value of contracts can range from thousands to millions of dollars, depending on the scope and duration. For instance, the Treasury's Bureau of the Fiscal Service, as the awarding agency here, manages a significant portfolio of debt, necessitating substantial investment in collection services. Trends may show an increase in spending during economic downturns when more individuals and businesses struggle with payments, or a decrease if legislative efforts focus on in-house collection or alternative recovery methods. Benchmarking this contract's value against historical averages for similar services would provide context on whether the $29.8 million represents a typical, high, or low investment for the services rendered.

How does the performance of Continental Service Group, LLC on this contract compare to industry benchmarks for debt collection agencies?

Assessing the performance of Continental Service Group, LLC requires access to specific performance metrics and delivery order details, which are not fully available in the provided data. Industry benchmarks for debt collection agencies typically include metrics such as recovery rates (percentage of debt collected), cost per dollar collected, compliance with regulations (e.g., FDCPA), customer complaint rates, and turnaround times for processing payments. To compare, one would need to know the specific types of debt being collected (e.g., tax debt, student loans, fines), the age of the debt, and the agreed-upon performance standards in the contract. Without this granular data, it's difficult to definitively state how Continental Service Group's performance stacks up against industry averages. However, the fact that the contract has seen 28 delivery orders suggests a sustained need and likely a level of satisfactory performance to warrant continued tasking over its duration.

What are the primary risks associated with a long-duration contract (2395 days) for debt collection services?

A long-duration contract for debt collection services, such as this one spanning nearly seven years, presents several potential risks. Firstly, regulatory and legal landscapes governing debt collection are subject to change. A contract established years ago might not fully align with current or future compliance requirements, necessitating costly modifications or potentially leading to penalties if non-compliance occurs. Secondly, technological advancements in collection strategies, data analytics, and communication methods can render older approaches obsolete. The contractor might be slower to adopt new, more efficient technologies, impacting recovery rates. Thirdly, the contractor's financial stability and operational capacity can change over an extended period, potentially affecting their ability to consistently deliver services. Finally, long contracts can sometimes reduce the incentive for the contractor to innovate or offer the most competitive pricing throughout the entire term, as the initial competitive pressure diminishes. Continuous monitoring and contract management are crucial to mitigate these risks.

What is the typical cost structure for federal debt collection services, and how does this contract's pricing compare?

The cost structure for federal debt collection services typically involves a commission-based fee, a flat fee per account, or a combination thereof, often contingent on the success of the collection efforts. Contractors are usually compensated as a percentage of the debt successfully recovered. This percentage can vary significantly based on factors such as the age and type of debt, the amount owed, and the volume of accounts assigned. Firm Fixed Price (FFP) contracts, like this one, offer price certainty to the government, meaning the contractor agrees to a set price for the services, regardless of the final cost incurred. However, for collection services, FFP can sometimes be structured around expected recovery volumes or specific deliverables. Without detailed pricing breakdowns or specific recovery targets for this contract, a direct comparison to typical market rates is challenging. Generally, the government aims to secure rates that are competitive and ensure that the cost of collection does not outweigh the amount recovered. The 'full and open competition' award suggests that pricing was a key factor in the selection process.

How does the Bureau of the Fiscal Service manage contractor performance and ensure accountability for debt collection contracts?

The Bureau of the Fiscal Service (BFS) manages contractor performance and ensures accountability for debt collection contracts through a multi-faceted approach. Key mechanisms include establishing clear Performance Work Statements (PWS) that define specific requirements, deliverables, and measurable performance standards. Contractors are typically required to submit regular performance reports detailing collection activities, recovery rates, and compliance metrics. BFS contract officers and technical monitors oversee these reports, conduct periodic reviews, and may perform audits. Payment is often tied to successful performance outcomes, incentivizing the contractor to meet or exceed targets. Furthermore, contracts usually include clauses for remedies in case of non-performance, such as service level credit deductions or, in severe cases, termination for default. The BFS also relies on government-wide systems for tracking contractor performance history, which informs future award decisions. Transparency is maintained through contract reporting requirements and potential oversight from the Treasury Inspector General.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: TFSAFSA17Q0001

Offers Received: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Commercial Services Group, Inc.

Address: 200 CROSS KEYS OFFICE PARK, FAIRPORT, NY, 14450

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,798,753

Exercised Options: $29,798,753

Current Obligation: $29,798,753

Actual Outlays: $23,205,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS23F0084P

IDV Type: FSS

Timeline