Treasury's $11.7M contract for credit recovery services awarded to Pioneer Credit Recovery, Inc

Contract Overview

Contract Amount: $11,669,681 ($11.7M)

Contractor: Pioneer Credit Recovery, Inc

Awarding Agency: Department of the Treasury

Start Date: 2024-02-18

End Date: 2025-11-17

Contract Duration: 638 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PCA SERVICES BRIDGE CONTRACT (PIONEER)

Place of Performance

Location: ARCADE, WYOMING County, NEW YORK, 14009

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $11.7 million to PIONEER CREDIT RECOVERY, INC for work described as: PCA SERVICES BRIDGE CONTRACT (PIONEER) Key points: 1. The contract value of $11.7 million over its period of performance suggests a significant need for credit recovery services. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The firm fixed-price contract type shifts performance risk to the contractor, Pioneer Credit Recovery, Inc. 4. The contract duration of approximately 21 months provides a stable period for service delivery. 5. The geographic location of the contractor in New York may influence operational reach or local economic impact. 6. The absence of small business set-aside indicates the primary award was not specifically targeted to small businesses.

Value Assessment

Rating: good

The contract value of $11.7 million for credit recovery services over 21 months appears reasonable given the nature of the work. Without specific benchmarks for similar large-scale federal debt collection contracts, a direct per-unit cost comparison is difficult. However, the firm fixed-price structure suggests that the contractor has priced competitively to absorb potential cost fluctuations. The award to a single entity implies a thorough evaluation of Pioneer Credit Recovery's capabilities and proposed pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The number of bidders is not specified, but this method generally fosters price discovery and allows the government to select the most advantageous offer based on price and other factors. The open competition suggests a healthy market for these services.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring the government receives the best value for its investment in credit recovery.

Public Impact

The primary beneficiaries are the Bureau of the Fiscal Service and potentially other Treasury bureaus needing to recover delinquent debts. The services delivered include collection agency functions to recover outstanding federal debts. The geographic impact is national, as the services aim to recover debts owed to the federal government regardless of the debtor's location. Workforce implications may include employment opportunities within Pioneer Credit Recovery, Inc., particularly in New York.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for aggressive collection tactics that could negatively impact individuals in debt.
Dependence on a single contractor for a critical function like debt recovery.
Ensuring compliance with all relevant debt collection regulations and privacy laws.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm fixed-price contract type aligns incentives for contractor performance and cost control.
Contractor has been selected, implying a vetting process for capability and capacity.

Sector Analysis

The credit recovery and collection services sector is a vital part of the financial services industry, supporting government and private entities in managing delinquent accounts. Federal spending in this area is often driven by the need to recoup funds from defaulted loans, unpaid taxes, and other forms of government receivables. This contract fits within the broader category of professional services procurement, where agencies outsource specialized functions. Benchmarks for similar contracts are difficult to ascertain without more specific details on the types of debt and recovery rates.

Small Business Impact

This contract was not awarded as a small business set-aside, meaning the primary award was not specifically reserved for small businesses. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is therefore neutral to potentially negative if small businesses in this sector are not involved as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of the Fiscal Service, which is responsible for managing federal debt collection. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to meet performance standards to receive payment. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not always be publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Debt Collection Programs
Treasury Financial Management Service
Bureau of the Fiscal Service Operations
Government Receivables Management

Risk Flags

Contract Type: Firm Fixed Price may not be ideal for all debt collection scenarios where outcomes are variable.
Single Contractor Award: Potential for reduced competition and innovation over the contract life.
Performance Metrics: Specific KPIs and success rates are not publicly detailed, making independent assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $11.7 million to PIONEER CREDIT RECOVERY, INC. PCA SERVICES BRIDGE CONTRACT (PIONEER)

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 $11.7 million.

What is the period of performance?

Start: 2024-02-18. End: 2025-11-17.

What is the historical spending pattern for credit recovery services by the Department of the Treasury?

Analyzing historical spending for credit recovery services by the Department of the Treasury requires access to detailed procurement data over multiple fiscal years. Typically, agencies like Treasury utilize a mix of in-house efforts and contracted services for debt collection. Spending can fluctuate based on economic conditions, legislative changes affecting debt forgiveness or collection statutes, and the volume of delinquent federal debt. Contracts for these services often range from task orders under larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles to standalone firm-fixed-price contracts like the one awarded to Pioneer Credit Recovery. Without specific historical data for this particular service category, it's challenging to establish a precise trend, but it's reasonable to assume consistent, albeit variable, expenditure to manage federal receivables.

How does the awarded amount compare to similar federal contracts for collection agencies?

Comparing the $11.7 million award to Pioneer Credit Recovery, Inc. requires identifying contracts with similar scope, duration, and types of debt being collected. Federal contracts for collection agencies vary widely based on the complexity and age of the debt, the volume of accounts, and the success-based fee structures often employed. Larger contracts, like this one, suggest a significant portfolio of delinquent federal debt. Benchmarking would ideally involve looking at contracts awarded by agencies such as the IRS, Department of Education (for student loans), or the Department of Justice. The firm fixed-price nature of this award is less common than performance-based contracts in debt collection, which typically pay a percentage of recovered debt. This suggests a potentially different risk allocation or a specific type of debt where fixed pricing is deemed more appropriate.

What are the key performance indicators (KPIs) expected for this credit recovery contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided data, federal contracts for collection agencies typically include metrics focused on recovery rates, timeliness of collections, compliance with regulations (e.g., Fair Debt Collection Practices Act), and data security. For a firm fixed-price contract, the government likely expects Pioneer Credit Recovery, Inc. to meet or exceed predefined targets for debt recovery across the assigned portfolio within the contract period. KPIs might include the percentage of debt collected within specific timeframes (e.g., 90, 180, 365 days), the cost per dollar collected, and the number of successful resolutions. Adherence to reporting requirements and maintaining accurate records of all collection activities would also be critical performance elements.

What is the track record of Pioneer Credit Recovery, Inc. with federal contracts?

To assess the track record of Pioneer Credit Recovery, Inc. with federal contracts, one would typically consult federal procurement databases such as SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System). These databases provide information on past awards, contract performance history, and any reported issues or disputes. A review would reveal the types of services they have provided to federal agencies, the value and duration of those contracts, and their performance ratings, if available. Without direct access to this historical data, it's difficult to provide a specific assessment of their track record. However, securing a contract of this magnitude from the Department of the Treasury suggests they have demonstrated sufficient capability and experience to meet the government's requirements.

What is the potential risk associated with relying on a single contractor for credit recovery?

Relying on a single contractor for credit recovery introduces several potential risks. Firstly, there's a risk of vendor lock-in, making it difficult and costly to switch providers if performance degrades or needs change. Secondly, a sole reliance can reduce competitive pressure, potentially leading to complacency or less aggressive pursuit of optimal recovery strategies over time. Thirdly, if the contractor experiences financial difficulties, operational disruptions (e.g., data breaches, staffing shortages), or faces legal challenges, it could significantly impair the government's ability to recover debts. Finally, a single point of failure means that any major issue with the contractor directly impacts the agency's debt management objectives, necessitating robust oversight and contingency planning.

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: RFQ FSA-48130100-24-004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pioneer Credit Recovery Inc

Address: 26 EDWARD ST, ARCADE, NY, 14009

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,669,681

Exercised Options: $11,669,681

Current Obligation: $11,669,681

Actual Outlays: $11,669,681

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA19D00DP

IDV Type: FSS

Timeline