Department of Education awards $205M contract to EOS USA for student loan debt collection
Contract Overview
Contract Amount: $205,070,150 ($205.1M)
Contractor: EOS USA, Inc.
Awarding Agency: Department of Education
Start Date: 2009-07-01
End Date: 2015-04-21
Contract Duration: 2,120 days
Daily Burn Rate: $96.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 26
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: PRIVATE COLLECTION AGENCY PERFORMS COLLECTION AND ADMINISTRATIVE RESOLUTION ACTIVITIES ON DEBTS RESULTING FROM NON-PAYMENT OF STUDENT LOANS MADE UNDER THE VARIOUS FEDERAL STUDENT AID LOAN PROGRAMS.
Place of Performance
Location: NORWELL, PLYMOUTH County, MASSACHUSETTS, 02061
Plain-Language Summary
Department of Education obligated $205.1 million to EOS USA, INC. for work described as: PRIVATE COLLECTION AGENCY PERFORMS COLLECTION AND ADMINISTRATIVE RESOLUTION ACTIVITIES ON DEBTS RESULTING FROM NON-PAYMENT OF STUDENT LOANS MADE UNDER THE VARIOUS FEDERAL STUDENT AID LOAN PROGRAMS. Key points: 1. Contract awarded to EOS USA, Inc. for student loan debt resolution. 2. The contract spans from July 2009 to April 2015. 3. This is a fixed-price incentive contract with 26 delivery orders. 4. The NAICS code 561440 indicates collection agencies as the sector. 5. The contract value is approximately $205 million.
Value Assessment
Rating: fair
The contract value of $205 million over six years suggests a significant investment in debt collection services. Benchmarking against similar contracts for federal debt collection is difficult without more specific service details, but the scale indicates substantial spending.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is 'COMPETITIVE DELIVERY ORDER', suggesting competition was involved in its award. However, the specific method of competition and how price discovery was achieved is not detailed, impacting the assessment of optimal pricing.
Taxpayer Impact: Taxpayer funds are used to pay for these collection services. The effectiveness of the agency in recovering debt directly impacts the net cost to taxpayers.
Public Impact
Millions of dollars in federal student loan debt are being managed. Taxpayers are indirectly impacted by the efficiency of debt recovery. The contract supports the Department of Education's mission to manage federal student aid. Private collection agencies play a role in government revenue recovery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition method
- Fixed-price incentive contract may not fully align costs with performance
- Long contract duration without clear performance metrics
Positive Signals
- Addresses a critical government function (debt collection)
- Utilizes private sector expertise for specialized services
- Significant contract value indicates potential for substantial debt recovery
Sector Analysis
This contract falls under the Collection Agencies sector (NAICS 561440). Spending in this sector is driven by the government's need to recover delinquent debts across various programs. Benchmarks are difficult without specific performance data.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight is primarily the responsibility of the Department of Education. The effectiveness of this oversight in ensuring efficient debt collection and fair practices is not detailed in the provided data.
Related Government Programs
- Collection Agencies
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for high administrative costs
- Risk of inefficient debt recovery impacting taxpayer return
- Lack of transparency in competition and performance metrics
- Dependence on a single private entity for a critical function
Tags
collection-agencies, department-of-education, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $205.1 million to EOS USA, INC.. PRIVATE COLLECTION AGENCY PERFORMS COLLECTION AND ADMINISTRATIVE RESOLUTION ACTIVITIES ON DEBTS RESULTING FROM NON-PAYMENT OF STUDENT LOANS MADE UNDER THE VARIOUS FEDERAL STUDENT AID LOAN PROGRAMS.
Who is the contractor on this award?
The obligated recipient is EOS USA, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $205.1 million.
What is the period of performance?
Start: 2009-07-01. End: 2015-04-21.
What was the recovery rate for the debts managed under this contract?
The recovery rate for debts managed under this contract is not provided in the data. To assess the value, understanding the percentage of debt successfully collected against the total amount managed is crucial. This metric would directly inform the effectiveness of EOS USA's services and the overall return on investment for the Department of Education.
How did the fixed-price incentive structure impact EOS USA's performance and the final cost?
The fixed-price incentive (FPI) contract structure aims to motivate the contractor to meet performance targets while sharing cost savings or overruns. Without details on the specific incentive targets and outcomes, it's difficult to assess if this structure effectively controlled costs or drove optimal performance in debt collection for the Department of Education.
What measures were in place to ensure fair collection practices and compliance with regulations?
The provided data does not detail the specific measures or oversight mechanisms employed to ensure EOS USA adhered to fair debt collection practices and relevant regulations. Robust oversight and clear compliance standards are essential when private agencies handle government-backed debts to protect borrowers and maintain public trust.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 26
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 700 LONGWATER DR, NORWELL, MA, 02061
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $210,925,888
Exercised Options: $210,925,888
Current Obligation: $205,070,150
Actual Outlays: $-9,763
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F0269K
IDV Type: FSS
Timeline
Start Date: 2009-07-01
Current End Date: 2015-04-21
Potential End Date: 2015-04-21 00:00:00
Last Modified: 2020-04-14
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