Treasury's $12M debt collection contract awarded to Continental Service Group, LLC for services in New York

Contract Overview

Contract Amount: $12,000,000 ($12.0M)

Contractor: Continental Service Group, LLC

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: FAIRPORT, MONROE County, NEW YORK, 14450

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $12.0 million to CONTINENTAL SERVICE GROUP, LLC for work described as: PRIVATE COLLECTION AGENCY (PCA) SERVICES Key points: 1. Value for money assessed through competitive bidding and firm-fixed-price structure. 2. Competition dynamics indicate a robust market for collection agencies. 3. Risk indicators include performance monitoring and contract duration. 4. Performance context relies on the agency's ability to meet collection targets. 5. Sector positioning within financial services and government contracting. 6. Contract type is a BPA Call, suggesting it's part of a larger framework agreement.

Value Assessment

Rating: good

The contract value of $12 million over one year appears reasonable given the scope of private debt collection services. Benchmarking against similar federal contracts for collection agencies is challenging without more granular data on collection rates and recovery percentages. However, the firm-fixed-price structure provides cost certainty for the government, and the competitive award process suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment. This level of competition is generally favorable for price discovery and ensures the government can select from a range of capable providers.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery from contractors.

Public Impact

Benefits taxpayers by facilitating the recovery of delinquent federal debts. Services delivered include collection activities for various types of federal receivables. Geographic impact is focused on New York, where the contractor is based. Workforce implications involve the employment of collection specialists by Continental Service Group, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for aggressive collection tactics impacting debtors.
Dependence on contractor performance for effective debt recovery.
Need for robust oversight to ensure compliance with regulations.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Firm-fixed-price contract provides cost predictability.
Contractor is likely experienced in debt collection services.

Sector Analysis

The market for debt collection services is a significant segment within the broader financial services industry. Government agencies frequently contract with private collection agencies to recover delinquent debts, particularly for taxes, fines, and other receivables. Spending in this area can fluctuate based on economic conditions and agency priorities. This contract fits within the government's strategy to outsource certain functions to specialized private sector providers.

Small Business Impact

The contract was awarded under full and open competition and there is no indication of a small business set-aside. The prime contractor, Continental Service Group, LLC, is not explicitly identified as a small business. Subcontracting opportunities for small businesses are not detailed in the provided data, but it is common for larger prime contractors to utilize small businesses for various support functions.

Oversight & Accountability

Oversight of this contract would typically be managed by the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures would include performance metrics related to collection rates, adherence to legal and ethical standards, and reporting requirements. Transparency is facilitated through contract awards databases, though specific performance data may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

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

Risk Flags

Potential for aggressive collection tactics
Dependence on contractor performance metrics
Need for robust regulatory compliance oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $12.0 million to CONTINENTAL SERVICE GROUP, LLC. PRIVATE COLLECTION AGENCY (PCA) SERVICES

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 $12.0 million.

What is the period of performance?

Start: 2026-01-05. End: 2027-01-04.

What is the historical performance of Continental Service Group, LLC in federal debt collection contracts?

Information regarding the specific historical performance of Continental Service Group, LLC on federal debt collection contracts is not publicly available in this dataset. To assess their track record, one would need to review past performance evaluations, contract awards, and any reported issues or successes from previous government engagements. Federal agencies typically maintain internal records of contractor performance, which can influence future award decisions. Without access to these records or publicly reported data on their success rates in debt recovery, efficiency, and compliance with regulations, a definitive assessment of their historical performance is not possible based solely on this contract award.

How does the awarded amount compare to typical spending on similar debt collection services by the federal government?

The awarded amount of $12 million for one year of private debt collection services by the Department of the Treasury is a significant sum, but its comparability to other federal spending requires context. Federal agencies utilize a variety of debt collection strategies, including in-house efforts and contracted services, with varying contract sizes and durations. The 'BPA Call' designation suggests this might be a task order under a larger Blanket Purchase Agreement, which could influence the perceived scale. To benchmark effectively, one would need to compare this contract's value against other contracts for similar types of debt (e.g., tax, fines, loans), geographic scope, and expected recovery rates. Without more specific data on the types of debt being collected and the contractor's expected performance metrics, a precise comparison is difficult.

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

Key risks associated with this debt collection contract include potential contractor underperformance in recovering debts, non-compliance with fair debt collection practices and privacy regulations, and reputational damage to the government if aggressive or unethical tactics are employed. Mitigation strategies likely involve the firm-fixed-price structure, which incentivizes efficient performance, and the requirement for full and open competition, which theoretically selects a capable provider. The Bureau of the Fiscal Service would also implement performance monitoring, regular reporting requirements, and audit clauses to ensure compliance and effectiveness. Clear contractual terms outlining acceptable collection methods and dispute resolution processes are crucial for managing these risks.

What is the expected effectiveness of this contract in recovering delinquent federal debts?

The expected effectiveness of this contract hinges on several factors, including the specific types and age of the delinquent debts assigned, the capabilities and strategies employed by Continental Service Group, LLC, and the oversight provided by the Bureau of the Fiscal Service. As a firm-fixed-price contract awarded through full and open competition, the government anticipates a cost-effective recovery of debts. However, the actual effectiveness will be measured by the recovery rates achieved against targets, the cost per dollar collected, and adherence to all legal and ethical collection standards. The success of similar contracts in the past and the contractor's demonstrated expertise will also inform expectations.

How has federal spending on private debt collection agencies evolved over the past five years?

Federal spending on private debt collection agencies has generally seen fluctuations influenced by economic conditions, legislative changes, and agency budget priorities. While specific aggregate data for all agencies is not provided here, trends often show increased reliance on private collectors during economic downturns when debt levels rise, and efforts to improve recovery rates for delinquent federal receivables. Agencies like the Treasury, Justice, and Education are significant users of these services. The government also periodically reviews its debt collection strategies, which can impact the volume and nature of contracts awarded to private firms. Analyzing trends would require aggregating data across multiple agencies and contract types over the specified period.

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: 2033H626Q00037

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: $12,000,000

Exercised Options: $12,000,000

Current Obligation: $12,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 2033H625A00009

IDV Type: BPA

Timeline