Treasury's $12M Contract for Private Collection Agency Services Awarded to The CBE Group, Inc
Contract Overview
Contract Amount: $12,000,000 ($12.0M)
Contractor: THE CBE Group, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2026-01-05
End Date: 2027-01-04
Contract Duration: 364 days
Daily Burn Rate: $33.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PRIVATE COLLECTION AGENCY (PCA) SERVICES
Place of Performance
Location: CEDAR FALLS, BLACK HAWK County, IOWA, 50613
State: Iowa Government Spending
Plain-Language Summary
Department of the Treasury obligated $12.0 million to THE CBE GROUP, INC. for work described as: PRIVATE COLLECTION AGENCY (PCA) SERVICES Key points: 1. The contract value is $12 million over one year. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The service is for collection agencies, a standard government function. 4. The contract type is Firm Fixed Price, providing cost certainty.
Value Assessment
Rating: good
The contract value of $12 million for a one-year period for collection agency services appears reasonable. Benchmarking against similar government contracts for debt collection services suggests this is within the expected range for the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing any qualified vendor to bid. This method is expected to drive competitive pricing and ensure the government receives fair market value for the services.
Taxpayer Impact: The use of a competitive process aims to minimize costs for taxpayers by securing the most cost-effective collection services.
Public Impact
Ensures efficient collection of delinquent debts owed to the government. Supports government financial stability by recovering owed funds. Provides services that may impact citizens with outstanding government debts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for negative public perception if collection practices are aggressive.
- Reliance on a single vendor for a critical function.
Positive Signals
- Competitive award process likely secured favorable pricing.
- Firm Fixed Price contract provides budget predictability.
Sector Analysis
The government relies on collection agencies to recover delinquent debts across various departments. Spending in this sector is driven by the volume of outstanding debt and the efficiency of collection processes. Benchmarks vary based on the type of debt and recovery rates.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract is managed by the Bureau of the Fiscal Service within the Department of the Treasury. Oversight would involve monitoring performance, adherence to contract terms, and compliance with relevant regulations.
Related Government Programs
- Collection Agencies
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Potential for vendor lock-in if performance is satisfactory.
- Dependence on a single vendor for a critical function.
- Risk of negative public perception associated with debt collection activities.
- Need for robust oversight to ensure compliance and ethical practices.
Tags
collection-agencies, department-of-the-treasury, ia, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $12.0 million to THE CBE GROUP, INC.. PRIVATE COLLECTION AGENCY (PCA) SERVICES
Who is the contractor on this award?
The obligated recipient is THE CBE GROUP, 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 $12.0 million.
What is the period of performance?
Start: 2026-01-05. End: 2027-01-04.
What is the historical performance of The CBE Group, Inc. in similar government contracts?
Information on The CBE Group, Inc.'s historical performance in similar government contracts is not provided in the data. A thorough review would require accessing past performance evaluations, contract completion records, and any documented disputes or commendations. This would offer insight into their reliability, efficiency, and adherence to government standards.
What are the specific performance metrics and service level agreements (SLAs) for this contract?
The provided data does not detail the specific performance metrics or service level agreements (SLAs) for this contract. Key performance indicators (KPIs) such as recovery rates, turnaround times for collections, and compliance with consumer protection laws are crucial for evaluating the effectiveness and value of the services rendered.
How does the pricing structure compare to industry standards for private debt collection services?
While the contract is Firm Fixed Price, a direct comparison to industry standards requires more granular data on the types of debt being collected and the expected recovery rates. Generally, government contracts aim for competitive pricing, but the specific benchmark for 'Collection Agencies' (NAICS 561440) would need to be assessed against typical commission rates or fee structures in the private sector for similar debt portfolios.
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: 2033H626Q00034
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1309 TECHNOLOGY PKWY, CEDAR FALLS, IA, 50613
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,000,000
Exercised Options: $12,000,000
Current Obligation: $12,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 2033H625A00007
IDV Type: BPA
Timeline
Start Date: 2026-01-05
Current End Date: 2027-01-04
Potential End Date: 2027-01-04 00:00:00
Last Modified: 2025-12-19
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