Treasury's $12.2M Debt Collection Contract with Progressive Financial Services Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $12,245,821 ($12.2M)
Contractor: Progressive Financial Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2007-03-12
End Date: 2012-03-11
Contract Duration: 1,826 days
Daily Burn Rate: $6.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 22
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)
Sector: Other
Official Description: PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85210, UNITED STATES OF AMERICA
State: Arizona Government Spending
Plain-Language Summary
Department of the Treasury obligated $12.2 million to PROGRESSIVE FINANCIAL SERVICES, INC. for work described as: PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES Key points: 1. The contract awarded to Progressive Financial Services for debt collection services represents a significant expenditure of $12.2 million. 2. The contract was awarded via a competitive delivery order, suggesting some level of market engagement. 3. Potential risks include the effectiveness of debt recovery and the overall value for taxpayer money. 4. The 'Miscellaneous Financial Investment Activities' sector encompasses a broad range of services, making direct comparisons challenging.
Value Assessment
Rating: fair
The contract's value of $12.2 million over five years needs to be benchmarked against similar debt collection contracts to assess its fairness. Without specific performance metrics or recovery rates, it's difficult to definitively state if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded through a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. This method generally promotes price discovery and competition, but the specific details of the competition are not provided.
Taxpayer Impact: The effectiveness of the debt collection services directly impacts taxpayer funds. If successful, it can recoup lost revenue; if not, it represents an inefficient use of resources.
Public Impact
Taxpayers may see improved recovery of outstanding debts, potentially reducing the deficit. The efficiency of the collection agency directly impacts the net return to the government. Citizens targeted for debt collection will interact with the contracted agency, raising concerns about fair practices and communication.
Waste & Efficiency Indicators
Waste Risk Score: 67 / 10
Warning Flags
- Lack of specific performance metrics for debt recovery.
- Potential for high administrative costs impacting net recovery.
- Limited insight into the competitive landscape beyond 'competitive delivery order'.
Positive Signals
- Utilized a competitive award mechanism.
- Contract duration aligns with typical debt collection cycles.
- Awarded by a major federal agency (Treasury).
Sector Analysis
The 'Miscellaneous Financial Investment Activities' sector is broad. Benchmarking this contract requires comparing its cost and recovery rates against other government or private sector debt collection agencies, considering the types of debt being pursued.
Small Business Impact
The data does not indicate whether 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
Oversight would typically involve the Department of the Treasury monitoring the performance of Progressive Financial Services, ensuring adherence to contract terms, and verifying the effectiveness of debt collection efforts. The number of contract actions (22) suggests ongoing management.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of the Treasury Contracting
- Financial Management Service Programs
Risk Flags
- Lack of clear performance metrics.
- Potential for inefficient debt recovery.
- Uncertainty regarding the competitive landscape's depth.
- Limited transparency on cost-effectiveness.
Tags
miscellaneous-financial-investment-activ, department-of-the-treasury, az, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $12.2 million to PROGRESSIVE FINANCIAL SERVICES, INC.. PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES
Who is the contractor on this award?
The obligated recipient is PROGRESSIVE FINANCIAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Financial Management Service).
What is the total obligated amount?
The obligated amount is $12.2 million.
What is the period of performance?
Start: 2007-03-12. End: 2012-03-11.
What is the average debt recovery rate for this contract compared to industry benchmarks?
The provided data does not include specific debt recovery rates. To assess value, a comparison of the agency's recovery rate against industry averages for similar debt types and collection methods is crucial. A significantly lower rate would indicate poor value for taxpayer money, while a higher rate would suggest effectiveness.
What were the key factors that led to Progressive Financial Services winning this competitive delivery order?
While awarded competitively, the specific factors influencing Progressive Financial Services' win are not detailed. Typically, such awards consider price, past performance, technical approach, and understanding of government requirements. Understanding these factors would shed light on the price discovery process and potential risks associated with the chosen vendor's capabilities.
How does the cost per dollar collected compare to other government debt collection contracts?
The data lacks the necessary information to calculate a cost per dollar collected. This metric is essential for evaluating the contract's efficiency. Benchmarking this against similar contracts would reveal if Treasury is achieving cost-effective debt recovery or if alternative approaches might yield better financial outcomes for the government.
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: 22
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)
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: $12,245,821
Exercised Options: $12,245,821
Current Obligation: $12,245,821
Parent Contract
Parent Award PIID: GS23F0239K
IDV Type: FSS
Timeline
Start Date: 2007-03-12
Current End Date: 2012-03-11
Potential End Date: 2012-03-11 00:00:00
Last Modified: 2015-04-01
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