Education Dept. awards $197.8M debt collection contract to Pioneer Credit Recovery, Inc
Contract Overview
Contract Amount: $197,789,883 ($197.8M)
Contractor: Pioneer Credit Recovery, Inc
Awarding Agency: Department of Education
Start Date: 2004-11-01
End Date: 2009-09-30
Contract Duration: 1,794 days
Daily Burn Rate: $110.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 40
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: DEBT COLLECTION
Place of Performance
Location: ARCADE, WYOMING County, NEW YORK, 14009, UNITED STATES OF AMERICA
State: New York Government Spending
Plain-Language Summary
Department of Education obligated $197.8 million to PIONEER CREDIT RECOVERY, INC for work described as: DEBT COLLECTION Key points: 1. The contract value of $197.8 million is substantial for debt collection services. 2. Pioneer Credit Recovery, Inc. secured this contract via a competitive delivery order. 3. The fixed-price incentive contract type suggests a focus on performance-based outcomes. 4. The contract duration of 1794 days (approx. 5 years) indicates a long-term need.
Value Assessment
Rating: fair
The contract's fixed-price incentive structure aims to control costs while rewarding performance. Benchmarking against similar debt collection contracts is difficult without specific service level data, but the total award value is significant.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was awarded as a competitive delivery order, indicating that multiple vendors likely competed. The competitive nature should have driven price discovery, though the specific pricing mechanisms within the incentive contract are key.
Taxpayer Impact: Taxpayer funds are used for debt collection services. The effectiveness of these services in recovering funds will ultimately determine the net taxpayer impact.
Public Impact
Potential impact on individuals with outstanding debts to the Department of Education. Ensures the government's ability to recover delinquent federal student loan debt. Highlights the government's reliance on private sector partners for financial services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long, potentially locking in services.
- Fixed-price incentive contracts can be complex to manage.
- Performance metrics and incentive triggers are critical for value.
Positive Signals
- Competitive award process.
- Focus on debt recovery for government funds.
- Incentive structure aligns vendor performance with government goals.
Sector Analysis
The debt collection sector involves specialized financial services. Government contracts in this area often involve significant values due to the scale of federal debt, with benchmarks varying widely based on recovery rates and contract terms.
Small Business Impact
The data does not indicate if 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
The competitive delivery order process suggests some level of oversight. However, ongoing monitoring of Pioneer Credit Recovery's performance against the incentive structure is crucial for accountability.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Contract duration
- Complexity of incentive contracts
- Reliance on third-party performance
- Potential for disputes over recovery amounts
Tags
miscellaneous-financial-investment-activ, department-of-education, ny, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $197.8 million to PIONEER CREDIT RECOVERY, INC. DEBT COLLECTION
Who is the contractor on this award?
The obligated recipient is PIONEER CREDIT RECOVERY, INC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $197.8 million.
What is the period of performance?
Start: 2004-11-01. End: 2009-09-30.
What is the historical performance of Pioneer Credit Recovery, Inc. in similar government contracts?
Assessing Pioneer Credit Recovery's past performance is crucial for understanding their capability and reliability. Reviewing previous contract awards, performance evaluations, and any documented issues or successes would provide insight into their effectiveness in debt collection and adherence to contract terms. This historical data can inform future contract decisions and risk assessments.
How effectively does the fixed-price incentive structure align with the Department of Education's debt recovery goals?
The effectiveness of the fixed-price incentive structure hinges on clearly defined performance metrics and achievable incentive targets that directly support the Department of Education's debt recovery objectives. If the incentives are well-aligned and measurable, they can drive Pioneer Credit Recovery to maximize collections efficiently. Conversely, poorly structured incentives could lead to unintended consequences or suboptimal recovery rates.
What is the projected return on investment for the government given the contract value and expected debt recovery rates?
Calculating the projected ROI requires detailed data on the expected volume and value of debts to be recovered, alongside the contract's total cost. The government aims for a positive ROI where recovered funds significantly exceed the contract's expenditure. Analyzing the incentive structure's payout and the contractor's historical recovery success rates is essential for this projection.
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
Offers Received: 40
Pricing Type: FIXED PRICE INCENTIVE (L)
Contractor Details
Parent Company: SLM Corp Sallie (UEI: 160002218)
Address: 26 EDWARDS ST, ARCADE, NY, 14009
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $197,789,883
Exercised Options: $197,789,883
Current Obligation: $197,789,883
Parent Contract
Parent Award PIID: GS23F0217K
IDV Type: FSS
Timeline
Start Date: 2004-11-01
Current End Date: 2009-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2015-04-01
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