Treasury's $8.77M PCA Services Contract Awarded to Transworld Systems Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $8,769,597 ($8.8M)
Contractor: Transworld Systems Inc.
Awarding Agency: Department of the Treasury
Start Date: 2024-02-18
End Date: 2025-11-17
Contract Duration: 638 days
Daily Burn Rate: $13.7K/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 (TSI)
Place of Performance
Location: FORT WASHINGTON, MONTGOMERY County, PENNSYLVANIA, 19034
Plain-Language Summary
Department of the Treasury obligated $8.8 million to TRANSWORLD SYSTEMS INC. for work described as: PCA SERVICES BRIDGE CONTRACT (TSI) Key points: 1. Contract value of $8.77 million for collection agency services. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. Potential risk associated with the effectiveness and cost-efficiency of collection agencies. 4. Spending falls within the 'Collection Agencies' sector.
Value Assessment
Rating: fair
The contract value of $8.77 million for a period of approximately 1.7 years appears reasonable for collection agency services. Benchmarking against similar contracts for debt collection services is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of a competitive process aims to ensure taxpayer funds are used efficiently for debt collection services.
Public Impact
Ensures the government can recover outstanding debts. Supports the Bureau of the Fiscal Service's mission to manage federal financial operations. Potential impact on individuals owing debts to the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Effectiveness of collection efforts
- Cost-effectiveness compared to in-house collection
- Data security and privacy of debtor information
Positive Signals
- Competitive award process
- Clear contract duration and value
Sector Analysis
The contract falls under the Collection Agencies sector, which is crucial for government revenue recovery. Spending benchmarks for this sector vary widely based on the type and volume of debt being collected.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Bureau of the Fiscal Service is responsible for overseeing this contract. Standard oversight mechanisms should be in place to monitor performance and ensure compliance with contract terms.
Related Government Programs
- Collection Agencies
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Performance metrics not detailed
- Potential for high overhead costs in debt collection
- Reliance on third-party for sensitive financial operations
- Data breach risk
Tags
collection-agencies, department-of-the-treasury, pa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $8.8 million to TRANSWORLD SYSTEMS INC.. PCA SERVICES BRIDGE CONTRACT (TSI)
Who is the contractor on this award?
The obligated recipient is TRANSWORLD SYSTEMS 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 $8.8 million.
What is the period of performance?
Start: 2024-02-18. End: 2025-11-17.
What is the expected recovery rate for the debts being pursued under this contract?
The expected recovery rate is a critical performance metric for this contract. While not explicitly stated in the provided data, the Bureau of the Fiscal Service likely has performance targets or key performance indicators (KPIs) related to the percentage of debt recovered. This rate directly impacts the overall value and effectiveness of the contract in recouping government funds.
How does the cost of using Transworld Systems Inc. compare to the potential amount of debt recovered?
Assessing the cost-effectiveness requires comparing the contract's total value ($8.77M) against the projected amount of debt that Transworld Systems Inc. is expected to recover. A favorable outcome would mean the recovered debt significantly exceeds the contract cost, demonstrating a positive return on investment for the government.
What measures are in place to ensure the privacy and security of sensitive debtor information handled by Transworld Systems Inc.?
Given the nature of collection services, robust data security and privacy protocols are essential. The contract should include specific clauses and requirements for protecting personally identifiable information (PII) and adhering to relevant federal regulations like the Privacy Act. Oversight should verify compliance with these security measures.
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-48130100-24-005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 500 VIRGINIA DR STE 514, FORT WASHINGTON, PA, 19034
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,561,293
Exercised Options: $8,769,597
Current Obligation: $8,769,597
Actual Outlays: $8,769,597
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QRAA20D001D
IDV Type: FSS
Timeline
Start Date: 2024-02-18
Current End Date: 2025-11-17
Potential End Date: 2025-11-17 00:00:00
Last Modified: 2026-01-16
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