Department of Education's $64.9M Debt Collection Contract with The CBE Group, Inc. Awarded in 2004
Contract Overview
Contract Amount: $64,949,178 ($64.9M)
Contractor: THE CBE Group, Inc.
Awarding Agency: Department of Education
Start Date: 2004-11-01
End Date: 2009-09-30
Contract Duration: 1,794 days
Daily Burn Rate: $36.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 40
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: DEBT COLLECTIONS
Place of Performance
Location: WATERLOO, BLACK HAWK County, IOWA, 50701, UNITED STATES OF AMERICA
State: Iowa Government Spending
Plain-Language Summary
Department of Education obligated $64.9 million to THE CBE GROUP, INC. for work described as: DEBT COLLECTIONS Key points: 1. The contract value is substantial at $64.9 million, indicating significant debt collection needs. 2. Competition details are limited, but it was awarded as a competitive delivery order. 3. Potential risks include performance variability and the effectiveness of debt collection strategies over time. 4. The sector is professional services, specifically accounting and debt collection.
Value Assessment
Rating: fair
The contract was awarded in 2004 and ended in 2009. Without current benchmarks or detailed performance data, assessing its value for money is difficult. The fixed-price incentive structure suggests an attempt to align contractor performance with cost and delivery goals.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, suggesting multiple vendors were considered. The specific competition details and pricing discovery mechanisms are not fully detailed, but competition generally aids in achieving better prices.
Taxpayer Impact: The contract aims to recover funds, potentially reducing the net cost of outstanding debt to taxpayers. The effectiveness of the collection efforts directly impacts the net financial benefit.
Public Impact
Students and former students with outstanding debts may experience increased collection efforts. The Department of Education utilizes private contractors to manage and collect federal student loan debt. Successful debt collection can lead to increased revenue for the government and reduced taxpayer burden.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (1794 days).
- Fixed Price Incentive contract type can be complex to manage.
- No specific small business participation noted.
Positive Signals
- Competitive award process.
- Clear objective: debt collection.
- Significant contract value suggests potential for substantial recovery.
Sector Analysis
This contract falls within the professional services sector, specifically focusing on debt collection and accounting services. Benchmarks for similar government debt collection contracts would typically consider recovery rates, cost per dollar collected, and compliance.
Small Business Impact
The data indicates the contractor is The CBE Group, Inc. There is no explicit mention of small business participation or subcontracting goals within the provided data. Further review would be needed to determine if small businesses were involved.
Oversight & Accountability
Oversight would typically involve monitoring the contractor's performance against contract requirements, ensuring compliance with debt collection regulations, and verifying the accuracy of reported collections. The Department of Education's contracting office would be responsible for this oversight.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Long contract duration.
- Fixed Price Incentive contract type.
- Limited transparency on performance metrics.
- No explicit small business participation noted.
Tags
offices-of-certified-public-accountants, department-of-education, ia, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $64.9 million to THE CBE GROUP, INC.. DEBT COLLECTIONS
Who is the contractor on this award?
The obligated recipient is THE CBE GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $64.9 million.
What is the period of performance?
Start: 2004-11-01. End: 2009-09-30.
What was the actual debt recovery rate achieved under this contract, and how does it compare to industry standards or previous government efforts?
The provided data does not include the actual debt recovery rate. To assess value, one would need to compare the total amount collected against the total debt assigned and the contract costs. This information is crucial for determining if the $64.9 million expenditure yielded a positive return on investment for the government and taxpayers.
What were the primary risks associated with using a fixed-price incentive contract for debt collection, and how were they mitigated?
Risks with fixed-price incentive contracts include potential for cost overruns if the target costs are not well-defined, and contractor focus shifting to meeting targets rather than optimal collection. Mitigation would involve robust performance monitoring, clear incentive criteria tied to actual recovery, and strong oversight to ensure ethical and effective collection practices.
How effective was The CBE Group, Inc. in collecting the targeted debt, and did the contract achieve its intended purpose efficiently?
Effectiveness is primarily measured by the amount of debt recovered relative to the cost of collection and the total debt assigned. Without specific performance metrics and recovery data, it's difficult to definitively assess effectiveness. The contract's long duration and substantial value suggest a significant effort was undertaken, but the ultimate success hinges on the recovery rates achieved.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants
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
Address: 131 TOWER PARK DR STE 100, WATERLOO, IA, 50701
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $65,501,472
Exercised Options: $64,949,178
Current Obligation: $64,949,178
Parent Contract
Parent Award PIID: GS23F0230P
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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