Treasury's $12M Contract for Private Collection Agency Services Awarded to Transworld Systems Inc
Contract Overview
Contract Amount: $12,000,000 ($12.0M)
Contractor: Transworld Systems 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: FORT WASHINGTON, MONTGOMERY County, PENNSYLVANIA, 19034
Plain-Language Summary
Department of the Treasury obligated $12.0 million to TRANSWORLD SYSTEMS INC. for work described as: PRIVATE COLLECTION AGENCY (PCA) SERVICES Key points: 1. Contract Value: $12 million over one year. 2. Competition: Full and open competition was utilized. 3. Risk: Potential for high per-unit costs if not managed effectively. 4. Sector: Business and Financial Operations.
Value Assessment
Rating: fair
The contract value of $12 million for a one-year period for collection agency services appears reasonable given the scope. However, without specific per-unit cost data, it's difficult to benchmark against similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a BPA call indicates a pre-negotiated framework, which can streamline acquisition but requires careful monitoring of pricing.
Taxpayer Impact: Taxpayer funds are being used to recover delinquent debts. The effectiveness of the agency in recovering funds will determine the ultimate taxpayer impact.
Public Impact
Ensures recovery of delinquent federal debts. Potential impact on individuals with outstanding federal obligations. Supports government financial health by collecting owed funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for high cost-per-dollar-collected.
- Limited visibility into the collection process.
Positive Signals
- Full and open competition ensures market-based pricing.
- Contract duration allows for a reasonable performance period.
- Use of a BPA call can indicate pre-vetted capabilities.
Sector Analysis
The Business and Financial Operations sector, specifically collection agencies, plays a crucial role in government revenue recovery. Spending benchmarks for such services can vary widely based on the type of debt and recovery rates.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to Transworld Systems Inc. Further analysis would be needed to determine if small businesses are subcontracting or if opportunities were missed.
Oversight & Accountability
Oversight will be critical to ensure Transworld Systems Inc. adheres to all federal regulations and achieves the desired debt recovery rates efficiently. The Bureau of the Fiscal Service should monitor performance closely.
Related Government Programs
- Collection Agencies
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Lack of detailed performance metrics.
- Potential for high cost-per-dollar-collected.
- Limited information on contractor's track record in debt recovery.
- Need for clear oversight to ensure compliance and efficiency.
Tags
collection-agencies, department-of-the-treasury, pa, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $12.0 million to TRANSWORLD SYSTEMS INC.. PRIVATE COLLECTION AGENCY (PCA) SERVICES
Who is the contractor on this award?
The obligated recipient is TRANSWORLD SYSTEMS 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 expected cost-per-dollar-collected for this contract, and how does it compare to industry benchmarks?
The provided data does not include specific cost-per-dollar-collected metrics. To assess value, this figure needs to be calculated and compared against industry benchmarks for similar debt types and recovery efforts. A higher cost-per-dollar-collected than anticipated could indicate inefficiencies or aggressive collection tactics impacting the net recovery for the government.
What are the specific performance standards and key performance indicators (KPIs) for Transworld Systems Inc. under this contract?
The data does not specify the performance standards or KPIs. Effective oversight requires clearly defined metrics such as recovery rates, turnaround times, compliance with regulations, and customer satisfaction (where applicable). Without these, it's challenging to objectively measure the contractor's effectiveness and ensure accountability for taxpayer funds.
How does the government ensure that the collection methods used by Transworld Systems Inc. are compliant with all relevant federal laws and ethical guidelines?
Compliance is typically ensured through contract clauses that mandate adherence to laws like the Fair Debt Collection Practices Act (FDCPA) and specific agency regulations. The Bureau of the Fiscal Service should have a robust monitoring and auditing process in place to verify compliance and address any reported violations promptly.
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: 2033H626Q00039
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 500 VIRGINIA DR STE 514, FORT WASHINGTON, PA, 19034
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: 2033H625A00011
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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