Treasury's $36.6M Private Collection Agency Contract with Pioneer Credit Recovery Faces Scrutiny
Contract Overview
Contract Amount: $36,652,200 ($36.7M)
Contractor: Pioneer Credit Recovery, Inc
Awarding Agency: Department of the Treasury
Start Date: 2018-01-26
End Date: 2024-08-17
Contract Duration: 2,395 days
Daily Burn Rate: $15.3K/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 5 OF 6]
Place of Performance
Location: ARCADE, WYOMING County, NEW YORK, 14009
State: New York Government Spending
Plain-Language Summary
Department of the Treasury obligated $36.7 million to PIONEER CREDIT RECOVERY, INC for work described as: PRIVATE COLLECTION AGENCY (PCA) SERVICES [MULTIPLE AWARD 5 OF 6] Key points: 1. The contract leverages a firm fixed-price model for collection services. 2. Pioneer Credit Recovery, Inc. is the awarded contractor. 3. The contract is for Miscellaneous Financial Investment Activities, specifically collection services. 4. The contract has been active since January 2018 and runs through August 2024. 5. The contract was awarded under full and open competition.
Value Assessment
Rating: fair
The firm fixed-price contract aims to control costs by setting a price upfront. However, the effectiveness of this pricing in driving efficient collections needs further analysis, as the total value is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method generally promotes competitive pricing. The agency likely sought multiple bids to ensure fair market value for collection services.
Taxpayer Impact: The use of private collection agencies aims to recover delinquent debts, potentially increasing government revenue and reducing the burden on taxpayers for debt management.
Public Impact
Taxpayers may interact with Pioneer Credit Recovery for outstanding debts owed to the Treasury. The contract's success directly impacts the government's ability to recover delinquent funds. The use of private agencies for debt collection is a common practice to improve efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Potential for aggressive collection tactics impacting taxpayer relations.
- Limited insight into the actual recovery rate achieved.
Positive Signals
- Awarded through full and open competition.
- Utilizes a firm fixed-price contract structure.
- Long-term contract indicates sustained need for services.
Sector Analysis
This contract falls under Miscellaneous Financial Investment Activities, specifically focusing on debt collection. Benchmarks for such services can vary widely based on the type of debt and recovery rates.
Small Business Impact
The contract was awarded to Pioneer Credit Recovery, Inc., and there is no indication that small businesses were involved as subcontractors or prime contractors in this specific award.
Oversight & Accountability
The contract's duration and value suggest ongoing oversight is necessary to ensure performance, adherence to regulations, and taxpayer protection. Specific oversight mechanisms are not detailed in the provided data.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Lack of detailed performance metrics.
- Potential for high taxpayer dissatisfaction.
- Limited transparency on recovery success.
- Contract duration may exceed optimal efficiency period.
Tags
miscellaneous-financial-investment-activ, department-of-the-treasury, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $36.7 million to PIONEER CREDIT RECOVERY, INC. PRIVATE COLLECTION AGENCY (PCA) SERVICES [MULTIPLE AWARD 5 OF 6]
Who is the contractor on this award?
The obligated recipient is PIONEER CREDIT RECOVERY, INC.
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 $36.7 million.
What is the period of performance?
Start: 2018-01-26. End: 2024-08-17.
What is the average recovery rate for debts handled by Pioneer Credit Recovery under this contract compared to government-run collection efforts?
The provided data does not include specific recovery rates. A comparative analysis would require access to performance metrics from both Pioneer Credit Recovery and internal Treasury collection data. Understanding this rate is crucial for assessing the overall value and effectiveness of outsourcing debt collection.
What are the specific performance standards and key performance indicators (KPIs) used to evaluate Pioneer Credit Recovery's success in debt collection?
The data does not specify the performance standards or KPIs. Effective oversight would necessitate clearly defined metrics such as collection volume, cost per dollar collected, compliance with FDCPA, and taxpayer complaint rates. These would allow for objective evaluation of the contractor's performance.
How does the cost-effectiveness of using Pioneer Credit Recovery compare to the internal costs the Bureau of the Fiscal Service would incur for similar debt collection activities?
A direct cost-effectiveness comparison is not possible with the current data. While the firm fixed-price model sets a cost, it doesn't reveal the efficiency relative to internal efforts. Analyzing the total amount collected versus the contract value, and comparing this to internal operational costs, would be necessary for a comprehensive assessment.
Industry Classification
NAICS: Finance and Insurance › Other Financial Investment Activities › Miscellaneous Financial Investment Activities
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: Pioneer Credit Recovery Inc
Address: 26 EDWARDS ST, ARCADE, NY, 14009
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $36,652,200
Exercised Options: $36,652,200
Current Obligation: $36,652,200
Actual Outlays: $33,476,287
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F0217K
IDV Type: FSS
Timeline
Start Date: 2018-01-26
Current End Date: 2024-08-17
Potential End Date: 2024-08-17 00:00:00
Last Modified: 2024-09-25
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