Treasury's $3.8M contract for debt collection services awarded to Pioneer Credit Recovery, Inc

Contract Overview

Contract Amount: $3,826,715 ($3.8M)

Contractor: Pioneer Credit Recovery, Inc

Awarding Agency: Department of the Treasury

Start Date: 2025-05-18

End Date: 2026-08-17

Contract Duration: 456 days

Daily Burn Rate: $8.4K/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: ARCADE, WYOMING County, NEW YORK, 14009

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.8 million to PIONEER CREDIT RECOVERY, 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 medium-term need for these services. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 561440 points to specialized debt collection services. 5. Awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The contract is for services to be performed in New York.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more data on the scope of services and expected recovery rates. However, the total award amount of $3.8 million over approximately 15 months suggests a significant operational budget for debt collection. Comparing this to similar contracts for federal debt collection agencies would provide better insight into whether the pricing is competitive. The firm fixed-price nature offers cost predictability, but the ultimate value depends on the effectiveness of the collection efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive offers. The number of bidders is not specified, but the method of competition suggests a robust market for these services. A competitive award process generally leads to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down costs through market forces, ensuring that federal funds are used efficiently for essential services like debt recovery.

Public Impact

The primary beneficiaries are federal agencies seeking to recover outstanding debts, improving the government's financial health. Services delivered include the collection of delinquent debts owed to the government. The geographic impact is focused on New York, where the contractor is based and services are likely to be performed. Workforce implications may include employment opportunities within Pioneer Credit Recovery, Inc. and potentially related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or recovery rate targets in the provided data makes it difficult to assess the contractor's effectiveness.
The contract is a delivery order, which might indicate it's a task within a larger, potentially less scrutinized, IDIQ vehicle.
Limited information on the types of debt being collected could obscure the complexity and associated risks.
No data provided on small business subcontracting, raising questions about broader economic impact.

Positive Signals

Awarded via full and open competition, suggesting a competitive process that should yield fair pricing.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, Pioneer Credit Recovery, Inc., is operating within a specialized industry (NAICS 561440), implying relevant expertise.
The contract duration of over a year allows for sustained debt collection efforts.

Sector Analysis

The debt collection services sector is a critical component of government revenue management. Federal agencies rely on specialized firms to recover delinquent debts, ranging from taxes to fines and fees. This contract falls under the broader professional, scientific, and technical services industry. The market for debt collection is competitive, with numerous private agencies vying for government contracts. Benchmarks for this sector often focus on recovery rates and cost-per-dollar-collected, which are not detailed here.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. Analysis of potential subcontracting opportunities would require further investigation into the contractor's practices and the specific terms of the award beyond the basic data provided.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures are usually embedded in the contract terms, including performance standards and reporting requirements. Transparency is enhanced by the public nature of contract awards, though detailed operational oversight information is often internal. 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
Bureau of the Fiscal Service Contracts
Treasury Department Procurement

Risk Flags

Performance Risk: Effectiveness of debt recovery is not guaranteed.
Compliance Risk: Potential for violations of debt collection regulations.
Data Security Risk: Handling of sensitive debtor information.
Contract Type Risk: Fixed-price may not fully align with variable recovery outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.8 million to PIONEER CREDIT RECOVERY, INC. PRIVATE COLLECTION AGENCY (PCA) SERVICES BRIDGE CONTRACT

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 $3.8 million.

What is the period of performance?

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

What is the track record of Pioneer Credit Recovery, Inc. in handling federal debt collection contracts?

Information regarding Pioneer Credit Recovery, Inc.'s specific track record with federal debt collection contracts is not detailed in the provided data. A thorough assessment would require examining past performance reviews, contract history with government agencies, and any reported issues or successes in previous engagements. Understanding their experience with similar debt types and volumes is crucial for evaluating their capability to fulfill this Treasury contract effectively. Without this historical data, it's difficult to definitively gauge their reliability and past performance against established benchmarks.

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

Direct comparison of this $3.8 million contract value is difficult without knowing the specific scope of services, the types and age of debts to be collected, and the expected recovery rates. Federal debt collection contracts can vary significantly in size and complexity. To benchmark effectively, one would need to analyze contracts awarded to other agencies for similar services, considering factors like the number of accounts, average debt amount, and the contractor's fee structure (often a percentage of recovered debt). The firm fixed-price nature here suggests a defined service package rather than a purely performance-based model, which influences value assessment.

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

Key risks include the contractor's effectiveness in actually recovering debts, which directly impacts the value derived from the contract. There's also a risk of non-compliance with debt collection regulations (e.g., Fair Debt Collection Practices Act), which could lead to legal challenges and reputational damage for the government. Operational risks, such as data security breaches of sensitive debtor information, are significant. Furthermore, if the contract is a delivery order under a larger IDIQ, there might be less direct oversight compared to a standalone contract, potentially increasing risks related to performance and cost management.

How effective is the Bureau of the Fiscal Service in overseeing its debt collection contracts?

The effectiveness of the Bureau of the Fiscal Service's oversight depends on its established processes, resources, and the specific contract management framework employed. Generally, federal agencies are required to have robust oversight mechanisms, including performance monitoring, regular reporting, and compliance checks. The Bureau of the Fiscal Service, as a key Treasury entity, likely adheres to standard government contracting regulations. However, the actual effectiveness can vary based on the diligence of contract officers, the clarity of performance metrics, and the contractor's cooperation. Assessing this specific contract's oversight would require examining the performance reports and any audits conducted.

What are historical spending patterns for federal debt collection services?

Historical spending on federal debt collection services has generally trended upwards as government agencies increasingly outsource non-core functions and focus on debt recovery efficiency. The total amount spent annually can fluctuate based on economic conditions, legislative changes affecting debt management, and the volume of delinquent federal debt. Agencies like the Treasury, IRS, and Department of Education are significant spenders in this area. Analyzing past budgets and contract awards provides insight into the scale of government reliance on private collection agencies and the typical contract values within this sector.

What is the potential impact of using a firm fixed-price contract for debt collection?

A firm fixed-price (FFP) contract establishes a set price for the defined scope of work, regardless of the contractor's actual costs. For debt collection, this offers the government cost certainty, meaning the total expenditure is known upfront. However, it shifts the risk of cost overruns to the contractor. The primary challenge with FFP in debt collection is that the value is often tied to recovery success, which can be variable. If the contractor is highly efficient, they profit more; if less efficient, they may incur losses. This structure incentivizes the contractor to manage their own costs tightly but might not directly align incentives for maximizing debt recovery unless performance metrics are tightly integrated.

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: 2033H625Q00058

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: $3,826,715

Exercised Options: $3,826,715

Current Obligation: $3,826,715

Actual Outlays: $1,848,420

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA19D00DP

IDV Type: FSS

Timeline