Treasury awards $4.45M contract for debt collection services to Coast Professional, Inc

Contract Overview

Contract Amount: $4,453,137 ($4.5M)

Contractor: Coast Professional, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2025-05-18

End Date: 2026-08-17

Contract Duration: 456 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRIVATE COLLECTION AGENCY (PCA) SERVICES BRIDGE CONTRACT

Place of Performance

Location: GENESEO, LIVINGSTON County, NEW YORK, 14454

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.5 million to COAST PROFESSIONAL, INC. for work described as: PRIVATE COLLECTION AGENCY (PCA) SERVICES BRIDGE CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 456 days indicates a need for ongoing services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The service is categorized under Collection Agencies, a standard government function. 5. Awarded by the Bureau of the Fiscal Service, a key Treasury agency. 6. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $4.45M over approximately 15 months appears reasonable for specialized debt collection services. Benchmarking against similar contracts is challenging without more specific service level agreements and performance metrics. However, the firm fixed-price structure provides cost certainty. The award to a single contractor suggests they met the government's requirements effectively within the competitive process.

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 fact that it resulted in a single award suggests that Coast Professional, Inc. was the most advantageous offer to the government based on the evaluation criteria. The level of competition is positive for price discovery.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple bidders to offer their best terms.

Public Impact

Benefits the Department of the Treasury by facilitating the recovery of outstanding debts. Services delivered include collection agency functions, aimed at resolving delinquent accounts. Geographic impact is national, as the Bureau of the Fiscal Service operates nationwide. Workforce implications are primarily for the contractor, Coast Professional, Inc., which will utilize its collection specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for aggressive collection tactics impacting debtor experience.
Reliance on a single contractor for a critical function like debt recovery.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type provides budget certainty.
Contractor is likely experienced in government debt collection processes.

Sector Analysis

The debt collection services sector for government contracts is a specialized niche within professional services. Agencies often rely on third-party contractors to manage and recover delinquent debts, particularly for complex or aged accounts. Spending in this area can fluctuate based on economic conditions and agency priorities for revenue recovery. This contract fits within the broader professional services category, with specific application to financial management and revenue assurance.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific award is likely minimal unless the prime contractor engages small businesses for support services.

Oversight & Accountability

Oversight is likely managed by the Bureau of the Fiscal Service, which would monitor performance against contract terms and conditions. Accountability measures would be embedded in the contract's performance standards and payment terms. Transparency is facilitated by the public nature of federal contract awards, though specific performance data may be internal.

Related Government Programs

Department of the Treasury Debt Collection Programs
Federal Debt Management Services
Accounts Receivable Management Services

Risk Flags

Contractor performance risk
Reputational risk from collection practices
Potential for underperformance in debt recovery

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.5 million to COAST PROFESSIONAL, INC.. PRIVATE COLLECTION AGENCY (PCA) SERVICES BRIDGE CONTRACT

Who is the contractor on this award?

The obligated recipient is COAST PROFESSIONAL, 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 $4.5 million.

What is the period of performance?

Start: 2025-05-18. End: 2026-08-17.

What is the track record of Coast Professional, Inc. with federal contracts, particularly in debt collection?

Coast Professional, Inc. has a history of performing federal contracts, including those related to debt collection. A review of federal procurement data would reveal the number and value of contracts awarded to them by various agencies. Analyzing past performance reviews and any reported issues or successes would provide insight into their reliability and effectiveness. It's important to check for any past performance issues, such as disputes, contract terminations, or findings of non-compliance, to assess their suitability for this new award. Their experience with similar contract types (e.g., firm fixed-price, delivery orders) and the specific types of debt they have collected for the government would also be relevant.

How does the awarded value compare to similar debt collection contracts issued by the Treasury or other federal agencies?

Direct comparison of the $4.45M value for this 456-day contract requires access to a database of similar federal debt collection contracts. Factors such as the types of debt (e.g., tax, fines, fees), the age of the debt, the volume of accounts, and the specific services required (e.g., skip tracing, negotiation, litigation support) significantly influence pricing. Generally, firm fixed-price contracts for collection services might be benchmarked against a percentage of recovered debt or a per-account fee structure. Without detailed service level agreements and performance metrics for comparable contracts, a precise value-for-money assessment is difficult. However, the full and open competition suggests the price was deemed competitive.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks include potential contractor underperformance in debt recovery, leading to lower-than-expected revenue for the government. Another risk is reputational damage if the contractor employs overly aggressive or non-compliant collection practices. Mitigation strategies include the firm fixed-price contract type, which incentivizes efficient performance, and the requirement for adherence to all applicable laws and regulations governing debt collection. The Bureau of the Fiscal Service's oversight and performance monitoring are crucial for ensuring compliance and effectiveness. The selection through full and open competition also implies the contractor was vetted for capability and compliance.

What is the expected effectiveness of Coast Professional, Inc. in collecting debts for the Bureau of the Fiscal Service?

The expected effectiveness is based on Coast Professional, Inc.'s demonstrated capabilities during the full and open competition process. The Bureau of the Fiscal Service would have evaluated proposals based on factors such as past performance, technical approach, and price. Assuming the contractor has relevant experience in government debt collection and a sound methodology for account management and recovery, they are expected to be effective. The contract's performance metrics and reporting requirements will allow the agency to track recovery rates and operational efficiency, providing a basis for assessing effectiveness throughout the contract period.

How has federal spending on collection agencies evolved over the past five years, and where does this contract fit?

Federal spending on collection agencies can fluctuate based on economic conditions, legislative changes affecting debt forgiveness or recovery, and agency priorities. Historically, agencies like the Treasury, IRS, and others utilize collection services to recover delinquent taxes, fines, and fees. Spending trends might show an increase during economic downturns as more individuals and businesses struggle to meet obligations, or a strategic push by agencies to improve recovery rates. This $4.45M contract represents a specific allocation for the Bureau of the Fiscal Service's debt recovery efforts within a particular timeframe. Understanding the broader spending patterns would require analyzing aggregate data for the 'Collection Agencies' (NAICS 561440) category across the federal government.

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: 2033H625Q00055

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4273 VOLUNTEER RD, GENESEO, NY, 14454

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

Financial Breakdown

Contract Ceiling: $4,453,137

Exercised Options: $4,453,137

Current Obligation: $4,453,137

Actual Outlays: $1,957,671

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA23D0089

IDV Type: FSS

Timeline