Treasury's $18.6M Debt Collection Contract with CBE Group Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $18,651,288 ($18.7M)
Contractor: THE CBE Group, 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: $10.2K/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: WATERLOO, BLACK HAWK County, IOWA, 50701, UNITED STATES OF AMERICA
State: Iowa Government Spending
Plain-Language Summary
Department of the Treasury obligated $18.7 million to THE CBE GROUP, INC. for work described as: PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES Key points: 1. The contract awarded to The CBE Group, Inc. for debt collection services represents a significant expenditure of $18.6 million. 2. Competition for this contract was a competitive delivery order, suggesting some level of market engagement. 3. Potential risks include the effectiveness of debt collection methods and the overall value for taxpayer money. 4. The sector involves financial services and government contracting, with specific NAICS code 541211.
Value Assessment
Rating: questionable
The contract value of $18.6 million for debt collection services needs further benchmarking against similar government contracts. Without specific performance metrics or comparative pricing data, it's difficult to definitively assess if this represents excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was awarded as a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. However, the specifics of the competition, such as the number of bids received and the evaluation criteria, are not detailed here, impacting a full understanding of price discovery.
Taxpayer Impact: The effectiveness of debt collection directly impacts taxpayer funds by recovering outstanding debts. The value for money is contingent on the agency's ability to collect efficiently and cost-effectively.
Public Impact
Taxpayers may be impacted by the efficiency and cost-effectiveness of the debt collection services provided. The contract's success hinges on the agency's ability to recover funds owed to the government. Transparency in the bidding process and performance metrics is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics
- Unclear cost-effectiveness benchmarks
- Potential for inefficient collection practices
Positive Signals
- Awarded through a competitive process
- Addresses a critical government function (debt recovery)
Sector Analysis
This contract falls within the financial services sector, specifically focusing on debt collection for government agencies. Benchmarking spending in this area is challenging without more granular data on collection rates and associated costs.
Small Business Impact
There is no specific indication from the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight would typically involve monitoring the contractor's performance against contractual obligations and ensuring compliance with all relevant regulations. The provided data does not detail specific oversight mechanisms or accountability measures.
Related Government Programs
- Offices of Certified Public Accountants
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Lack of performance data
- Unclear cost-effectiveness
- Potential for inefficient collection
- Limited insight into competition details
Tags
offices-of-certified-public-accountants, department-of-the-treasury, ia, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $18.7 million to THE CBE GROUP, INC.. PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES
Who is the contractor on this award?
The obligated recipient is THE CBE GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $18.7 million.
What is the period of performance?
Start: 2007-03-12. End: 2012-03-11.
What is the average collection rate for this contract compared to industry benchmarks?
The provided data does not include specific collection rates for this contract. To assess value, a comparison with industry benchmarks for debt collection agencies, considering factors like debt type and age, would be necessary. Without this, determining the true effectiveness and financial return for the government is difficult.
What were the key performance indicators (KPIs) used to evaluate the contractor's success?
The data does not specify the Key Performance Indicators (KPIs) used to evaluate The CBE Group's success. Effective oversight requires clearly defined KPIs related to collection volume, cost per dollar collected, compliance, and customer satisfaction. Understanding these KPIs is crucial for assessing the contract's overall performance and value.
How does the cost per dollar collected compare to other government debt collection contracts?
A direct comparison of the cost per dollar collected for this contract against other government debt collection contracts is not possible with the given data. Such analysis would require access to detailed financial reports from both this contract and comparable ones, including administrative costs and success rates.
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
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: 131 TOWER PARK DR STE 100, WATERLOO, IA, 50701
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,651,288
Exercised Options: $18,651,288
Current Obligation: $18,651,288
Parent Contract
Parent Award PIID: GS23F0230P
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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