Department of Education awards $214M contract to Progressive Financial Services for student loan debt collection
Contract Overview
Contract Amount: $214,061,026 ($214.1M)
Contractor: Progressive Financial Services, Inc.
Awarding Agency: Department of Education
Start Date: 2009-07-01
End Date: 2015-04-21
Contract Duration: 2,120 days
Daily Burn Rate: $101.0K/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: TEMPE, MARICOPA County, ARIZONA, 85282
State: Arizona Government Spending
Plain-Language Summary
Department of Education obligated $214.1 million to PROGRESSIVE FINANCIAL SERVICES, 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 value of $214M for debt collection services. 2. Progressive Financial Services, Inc. is the sole awardee. 3. Potential risk in collection effectiveness and taxpayer impact. 4. Sector is Miscellaneous Financial Investment Activities.
Value Assessment
Rating: fair
The contract value is substantial, but specific performance metrics and cost-effectiveness benchmarks are not detailed. Without comparable contract data, assessing the pricing against similar debt collection services is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was awarded as a competitive delivery order, suggesting some level of competition existed. However, the limited details on the competitive process make it hard to ascertain if the best possible price was achieved.
Taxpayer Impact: The effectiveness of debt collection directly impacts taxpayer funds by recovering defaulted student loans. Inefficient collection could lead to greater losses.
Public Impact
Impacts federal student loan borrowers facing debt collection. Ensures recovery of defaulted federal student loan funds. Potential for disputes over collection practices and fees.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition details
- Potential for high collection costs
- Lack of performance transparency
Positive Signals
- Addresses significant federal debt
- Utilizes private sector expertise
Sector Analysis
This contract falls under Miscellaneous Financial Investment Activities, specifically focusing on debt collection for federal student loans. Benchmarks for this niche sector are not readily available, making direct comparison challenging.
Small Business Impact
The data indicates the awardee is Progressive Financial Services, Inc., and there is no indication of small business participation in this specific contract. Further analysis would be needed to determine if subcontracting opportunities were explored.
Oversight & Accountability
Oversight by the Department of Education is crucial to ensure Progressive Financial Services adheres to all regulations and performs effectively. Transparency in reporting collection rates and costs is essential for accountability.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Limited transparency on competition
- Potential for high contractor fees
- Risk of ineffective debt recovery
- Borrower protection concerns
Tags
miscellaneous-financial-investment-activ, department-of-education, az, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $214.1 million to PROGRESSIVE FINANCIAL SERVICES, 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 PROGRESSIVE FINANCIAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $214.1 million.
What is the period of performance?
Start: 2009-07-01. End: 2015-04-21.
What is the historical performance of Progressive Financial Services, Inc. in federal debt collection contracts?
Historical performance data for Progressive Financial Services, Inc. on similar federal debt collection contracts is not provided in this dataset. A thorough review would require accessing past performance reviews, contract modifications, and any documented issues or successes to gauge their reliability and efficiency in managing federal student loan debt.
How does the cost of collection for this contract compare to industry averages or other federal contracts?
Without specific cost breakdowns or performance metrics tied to the $214 million award, a direct comparison to industry averages or other federal contracts is not possible. Key factors like recovery rates, administrative costs, and the age/type of debt collected would be needed for a meaningful cost-effectiveness analysis.
What mechanisms are in place to ensure fair collection practices and protect borrowers' rights?
The Department of Education is responsible for establishing and enforcing guidelines for fair collection practices. This includes ensuring compliance with the Fair Debt Collection Practices Act (FDCPA) and any specific regulations for federal student loans. Oversight likely involves regular reporting from the contractor and potential audits.
Industry Classification
NAICS: Finance and Insurance › Other Financial Investment Activities › Miscellaneous Financial Investment Activities
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: 540 W BROADWAY RD STE 104, MESA, AZ, 85210
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $221,791,555
Exercised Options: $221,791,555
Current Obligation: $214,061,026
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F0239K
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: 2018-08-17
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View all Progressive Financial Services, Inc. federal contracts →
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