Department of Education's $73.8M Debt Collection Contract with GC Services Limited Partnership Awarded Competitively
Contract Overview
Contract Amount: $73,844,544 ($73.8M)
Contractor: GC Services Limited Partnership
Awarding Agency: Department of Education
Start Date: 2004-11-01
End Date: 2009-09-30
Contract Duration: 1,794 days
Daily Burn Rate: $41.2K/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: HOUSTON, HARRIS County, TEXAS, 77081, UNITED STATES OF AMERICA
State: Texas Government Spending
Plain-Language Summary
Department of Education obligated $73.8 million to GC SERVICES LIMITED PARTNERSHIP for work described as: DEBT COLLECTIONS Key points: 1. The contract aims to collect delinquent debts for the Department of Education. 2. GC Services Limited Partnership, based in Texas, is the contractor. 3. The contract was awarded via a competitive delivery order. 4. The contract duration was 1794 days, ending in September 2009. 5. The total award amount was $73.8 million.
Value Assessment
Rating: fair
The contract's value of $73.8 million over nearly 5 years suggests a significant operational scale. Without specific performance metrics or comparison data for debt collection services, assessing its value relative to similar contracts is difficult. The fixed-price incentive structure implies a focus on achieving collection targets.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, this indicates that multiple vendors likely had an opportunity to bid. The competitive nature should have driven price discovery and ensured a reasonable cost for the services rendered. The specific details of the competition, such as the number of bidders, are not provided.
Taxpayer Impact: The primary taxpayer impact is the cost of the contract itself. However, successful debt collection should result in a net positive return to the government by recovering funds owed.
Public Impact
Students and borrowers with outstanding federal loan debt may be contacted by GC Services. The contract's success directly impacts the government's ability to recover funds for federal education programs. Effective debt collection can reduce the burden on taxpayers by ensuring loan obligations are met. The use of a private contractor for debt collection raises questions about data privacy and consumer protection.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics for debt collection success.
- Limited transparency on the competitive bidding process.
- Potential for aggressive collection tactics impacting borrowers.
Positive Signals
- Awarded through a competitive process.
- Contract aims to recover funds owed to the government.
- Fixed-price incentive structure aligns contractor goals with agency objectives.
Sector Analysis
The Miscellaneous Financial Investment Activities sector, under which this contract falls, can encompass a wide range of financial services. Debt collection is a critical function for government agencies to recoup delinquent payments. Benchmarks for this specific service are not readily available, but efficiency and recovery rates are key performance indicators.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically involve the Department of Education monitoring GC Services' performance against contract requirements, collection rates, and adherence to regulations. The fixed-price incentive contract suggests performance-based oversight is intended.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Lack of detailed performance metrics.
- Limited information on the competitive process.
- Potential for negative impact on borrowers.
- Contract duration is lengthy, requiring sustained oversight.
- No clear indication of small business participation.
Tags
miscellaneous-financial-investment-activ, department-of-education, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $73.8 million to GC SERVICES LIMITED PARTNERSHIP. DEBT COLLECTIONS
Who is the contractor on this award?
The obligated recipient is GC SERVICES LIMITED PARTNERSHIP.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $73.8 million.
What is the period of performance?
Start: 2004-11-01. End: 2009-09-30.
What were the specific debt collection targets and success rates achieved under this contract?
The provided data does not include specific performance metrics such as collection targets or actual success rates. To assess the contract's value and effectiveness, details on the percentage of debt collected, the cost per dollar collected, and comparisons to industry standards would be necessary. This information is crucial for understanding the return on investment for the taxpayer.
What were the key factors considered during the competitive bidding process, and how did they influence the final price?
While the contract was competitively awarded, the specific evaluation criteria and the number of bidders are not detailed. Typically, factors like proposed collection strategies, experience, compliance protocols, and pricing models are assessed. The competitive nature suggests that these factors were weighed to ensure fair price discovery and optimal service selection for the Department of Education.
How did the fixed-price incentive structure impact the contractor's performance and the overall cost-effectiveness?
A fixed-price incentive contract aims to align the contractor's performance with the government's objectives by providing additional profit for exceeding targets and sharing the risk if targets are missed. This structure incentivizes GC Services to maximize debt recovery efficiently. However, the effectiveness depends on the clarity and attainability of the incentive targets and the oversight applied.
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
Address: 6330 GULFTON ST, HOUSTON, TX, 77081
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $73,844,544
Exercised Options: $73,844,544
Current Obligation: $73,844,544
Parent Contract
Parent Award PIID: GS23F0279K
IDV Type: FSS
Timeline
Start Date: 2004-11-01
Current End Date: 2009-09-30
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2015-04-01
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