Department of Education's $345M contract for student loan debt collection awarded to Account Control Technology Inc
Contract Overview
Contract Amount: $345,772,702 ($345.8M)
Contractor: Account Control Technology Inc.
Awarding Agency: Department of Education
Start Date: 2015-04-22
End Date: 2017-04-21
Contract Duration: 730 days
Daily Burn Rate: $473.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: "CRITICAL FUNCTION" - IGF::CT::IGF 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: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367
Plain-Language Summary
Department of Education obligated $345.8 million to ACCOUNT CONTROL TECHNOLOGY INC. for work described as: "CRITICAL FUNCTION" - IGF::CT::IGF 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. The contract supports critical functions for federal student loan programs. 2. Account Control Technology Inc. is the sole awardee. 3. The contract value is substantial at over $345 million. 4. This is a firm-fixed-price contract, indicating predictable costs.
Value Assessment
Rating: good
The contract value of $345M over two years suggests a significant scale of operations. Benchmarking against similar debt collection contracts would be necessary for a precise value assessment, but the fixed-price nature provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The fixed-price structure further aids in price discovery by setting clear expectations for service delivery.
Taxpayer Impact: The contract's purpose is to recover delinquent federal student loan debt, directly benefiting taxpayers by recouping funds and reducing the burden of defaulted loans.
Public Impact
Ensures continued collection of overdue federal student loan payments. Supports the financial health of federal student aid programs. Provides administrative resolution for defaulted loan accounts. Maintains the integrity of the federal student loan system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if performance is satisfactory.
- Reliance on a single vendor for a critical function.
Positive Signals
- Full and open competition ensures market-tested pricing.
- Firm-fixed-price contract provides cost predictability.
- Supports essential government function of debt recovery.
Sector Analysis
This contract falls under Miscellaneous Financial Investment Activities, a sector that involves managing and resolving financial assets. Spending in this area is crucial for government revenue recovery and program sustainability.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business participation was a goal or if opportunities were missed.
Oversight & Accountability
The Department of Education is responsible for oversight. The contract's fixed-price nature and defined period of performance should facilitate accountability, but ongoing monitoring of performance metrics is essential.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Vendor concentration risk
- Performance variability
- Potential for regulatory non-compliance
- Data security and privacy concerns
Tags
miscellaneous-financial-investment-activ, department-of-education, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $345.8 million to ACCOUNT CONTROL TECHNOLOGY INC.. "CRITICAL FUNCTION" - IGF::CT::IGF 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 ACCOUNT CONTROL TECHNOLOGY INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $345.8 million.
What is the period of performance?
Start: 2015-04-22. End: 2017-04-21.
What is the historical performance of Account Control Technology Inc. in similar federal contracts?
Historical performance data is crucial for assessing the reliability and effectiveness of Account Control Technology Inc. Reviewing past contract awards, performance evaluations, and any past performance issues would provide insight into their capabilities and adherence to contractual obligations. This information helps determine if they are a suitable long-term partner for critical debt collection activities.
How does the cost per dollar collected compare to industry benchmarks for federal student loan debt?
Benchmarking the cost per dollar collected against industry standards and similar government contracts is vital for evaluating cost-effectiveness. If the cost is significantly higher than benchmarks, it could indicate inefficiencies or a lack of competitive pressure. Conversely, a lower cost suggests efficient operations and good value for taxpayer money.
What are the key performance indicators (KPIs) for this contract and how is performance being measured?
Understanding the KPIs and measurement methods is essential for assessing contract effectiveness. Key metrics likely include collection rates, resolution times, compliance with regulations, and customer satisfaction. Robust oversight and transparent reporting on these KPIs ensure the contractor is meeting objectives and delivering value.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 21700 OXNARD STREET STE 1860, WOODLAND HILLS, CA, 91367
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $345,772,703
Exercised Options: $345,772,702
Current Obligation: $345,772,702
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F0235K
IDV Type: FSS
Timeline
Start Date: 2015-04-22
Current End Date: 2017-04-21
Potential End Date: 2017-04-21 00:00:00
Last Modified: 2020-05-14
More Contracts from Account Control Technology 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 — $200.4M (Department of Education)
- Collect on Defaulted Student Loans for the U.s.department of Education — $42.6M (Department of Education)
View all Account Control Technology Inc. federal contracts →
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