Treasury's $12.1M contract for debt collection services awarded to Continental Service Group, LLC

Contract Overview

Contract Amount: $12,139,168 ($12.1M)

Contractor: Continental Service Group, LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-05-18

End Date: 2026-08-17

Contract Duration: 456 days

Daily Burn Rate: $26.6K/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: FAIRPORT, MONROE County, NEW YORK, 14450

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $12.1 million to CONTINENTAL SERVICE GROUP, LLC 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 firm fixed-price contract type provides cost certainty for the government. 3. The contract duration of 456 days (approx. 15 months) is standard for service bridge contracts. 4. The agency is the Department of the Treasury, Bureau of the Fiscal Service, indicating a focus on financial operations. 5. The North American Industry Classification System (NAICS) code 561440 points to the debt collection industry. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: good

Benchmarking the value of this $12.1 million contract requires comparison to similar debt collection services procured by federal agencies. Given the firm fixed-price structure, the government has a clear understanding of the total cost. However, without specific performance metrics or details on the volume of debt to be collected, a precise value-for-money assessment is challenging. The contract's duration and scope suggest it aims to maintain essential services rather than represent a significant expansion or innovation.

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. This typically leads to a more robust selection of contractors and potentially more competitive pricing as multiple companies vie for the award. The number of bidders is not specified, but the competitive nature suggests that the agency sought the best value through an open process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where prices are driven down by rivalry, ensuring the government receives services at a fair market rate.

Public Impact

The primary beneficiaries are the Department of the Treasury and the Bureau of the Fiscal Service, ensuring continuity in their debt collection operations. The services delivered include debt collection activities, crucial for recovering outstanding government debts. The contract is geographically focused on New York (ST: NY, SN: NEW YORK), suggesting a regional operational base or a specific target for collection efforts. The contract supports the workforce within the contractor organization, Continental Service Group, LLC, in the debt collection sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high-pressure collection tactics if not properly overseen.
Dependence on contractor performance for effective debt recovery.
Risk of data security breaches given the sensitive financial information handled.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive price.
Firm fixed-price contract provides cost certainty.
Contractor is likely experienced in the debt collection field, given the nature of the service.

Sector Analysis

The debt collection services sector is a critical component of the broader financial services industry. Federal agencies rely on specialized contractors to manage and recover outstanding debts, ranging from tax arrears to defaulted loans. This contract fits within the government's broader efforts to maintain fiscal health and recover funds owed. Comparable spending in this sector can vary widely based on the volume and type of debt being pursued.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this award. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Further analysis would be needed to determine if any small business participation is mandated or voluntary.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures are typically embedded in the contract's performance work statement, including deliverables, reporting requirements, and service level agreements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would depend on the specific nature of any potential fraud, waste, or abuse identified.

Related Government Programs

Federal Debt Collection Programs
Accounts Receivable Management Services
Financial Services Contracts
Bureau of the Fiscal Service Operations

Risk Flags

Performance Risk
Compliance Risk
Data Security Risk
Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $12.1 million to CONTINENTAL SERVICE GROUP, LLC. PRIVATE COLLECTION AGENCY (PCA) SERVICES BRIDGE CONTRACT

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 $12.1 million.

What is the period of performance?

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

What is the track record of Continental Service Group, LLC in performing federal debt collection contracts?

Continental Service Group, LLC (CSG) has a history of performing contracts with federal agencies, including those related to debt collection and accounts receivable management. Information from public databases like FPDS indicates previous awards to CSG for similar services. A thorough review of their past performance, including any reported issues, contract modifications, or terminations for default, would be necessary to fully assess their track record. Understanding their experience with the specific types of debt the Treasury aims to collect and their success rates in previous federal engagements is crucial for evaluating their capability to fulfill this current contract effectively.

How does the pricing of this contract compare to similar federal debt collection services?

Assessing the pricing competitiveness of this $12.1 million contract requires benchmarking against similar services procured by other federal agencies. As a firm fixed-price contract awarded through full and open competition, it suggests an expectation of competitive pricing. However, without detailed pricing breakdowns (e.g., per dollar collected, per account managed) or specific performance metrics tied to the price, a direct comparison is difficult. Factors such as the age and type of debt, the geographic location of debtors, and the required collection methods significantly influence pricing. A deeper analysis would involve comparing the effective rate or cost per unit of service against historical data for comparable contracts.

What are the primary risks associated with this debt collection contract?

Key risks for this contract include performance risk, where the contractor may not achieve the desired debt recovery rates, impacting the government's financial objectives. There's also a compliance and reputational risk, as debt collection activities are heavily regulated, and improper practices by the contractor could lead to legal challenges, fines, and damage to the agency's reputation. Data security is another significant risk, given the sensitive personal and financial information handled by the contractor; a breach could result in substantial liabilities. Finally, contractor dependency risk exists, where the agency becomes reliant on the contractor's specialized services, potentially facing disruption if the contractor fails to perform or if the contract is not renewed.

How effective are federal debt collection contracts in recovering outstanding government funds?

The effectiveness of federal debt collection contracts varies widely depending on numerous factors, including the type of debt, the age of the debt, the economic conditions, and the specific strategies employed by the contractors. Agencies like the Treasury utilize these contracts to supplement their internal collection capabilities and leverage specialized expertise. Success is often measured by the recovery rate (percentage of debt collected) and the cost-effectiveness (ratio of recovery to collection costs). While these contracts can be instrumental in recovering significant amounts, their overall effectiveness is a subject of ongoing analysis and depends heavily on robust contract management, clear performance metrics, and diligent oversight by the contracting agency.

What has been the historical spending trend for debt collection services by the Department of the Treasury?

Historical spending data for debt collection services by the Department of the Treasury would reveal trends in their reliance on external contractors for these functions. Analyzing past contract awards, their values, and durations can indicate whether spending in this area has been increasing, decreasing, or remaining stable. This context is important for understanding the significance of the current $12.1 million award. A review of historical data might show fluctuations based on legislative changes, economic conditions affecting debt levels, or shifts in the agency's internal collection strategies and resources.

What are the implications of using a firm fixed-price contract for debt collection services?

A firm fixed-price (FFP) contract for debt collection services offers significant cost certainty to the government. Under an FFP structure, the contractor assumes most of the risk for cost overruns, and the government pays a predetermined price regardless of the contractor's actual costs. This is advantageous for budgeting and financial planning. For debt collection, it means the agency knows the total expenditure upfront. However, it can also incentivize the contractor to minimize costs, potentially impacting the quality or intensity of collection efforts if not carefully monitored through performance standards. The contractor's profit is determined by their efficiency in meeting the contract requirements within the fixed price.

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: 2033H625Q00056

Offers Received: 1

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

Financial Breakdown

Contract Ceiling: $12,139,168

Exercised Options: $12,139,168

Current Obligation: $12,139,168

Actual Outlays: $4,363,246

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA22D002T

IDV Type: FSS

Timeline