Treasury's $23M Debt Collection Contract with Continental Service Group Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $23,044,928 ($23.0M)
Contractor: Continental Service Group, LLC
Awarding Agency: Department of the Treasury
Start Date: 2012-03-12
End Date: 2019-09-11
Contract Duration: 2,739 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES
Place of Performance
Location: LIVERMORE, ALAMEDA County, CALIFORNIA, 94551
Plain-Language Summary
Department of the Treasury obligated $23.0 million to CONTINENTAL SERVICE GROUP, LLC for work described as: PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES Key points: 1. The contract awarded to Continental Service Group, LLC for debt collection services represents a significant expenditure of $23 million. 2. While listed as 'FULL AND OPEN COMPETITION', the limited number of delivery orders (11) warrants further investigation into the breadth of participation. 3. The 'FIRM FIXED PRICE' contract type provides cost certainty, but the overall value proposition needs assessment against industry benchmarks. 4. The sector for debt collection services is highly competitive, suggesting potential for better pricing or service levels. 5. Potential risks include the effectiveness of the collection methods and the impact on taxpayer perception of government debt recovery.
Value Assessment
Rating: fair
The contract's value of $23 million for debt collection services needs to be benchmarked against similar government and private sector contracts. Without specific performance metrics or comparison data, it's difficult to definitively assess if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION', which theoretically allows for broad market participation. However, the relatively low number of delivery orders (11) over the contract's duration may indicate limited actual competition or a narrow scope of work.
Taxpayer Impact: The effectiveness of this contract in recovering debt directly impacts taxpayer funds. If the services are efficient and cost-effective, it represents a positive return on investment for the government.
Public Impact
Taxpayers may be impacted by the efficiency and cost-effectiveness of debt collection efforts, influencing the net recovery of government funds. The use of private agencies for debt collection raises questions about data privacy and the methods employed in pursuing debtors. Transparency in the bidding process and the performance of the selected agency are crucial for public trust in government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of delivery orders despite full and open competition.
- Lack of clear performance metrics to assess value for money.
- Potential for aggressive collection tactics impacting public perception.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Utilizes a specialized private sector service for debt collection.
Sector Analysis
The debt collection services sector is characterized by specialized agencies that leverage various techniques to recover outstanding debts for government and private entities. Benchmarks for this sector often focus on recovery rates and cost per dollar collected.
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 the extent of small business participation.
Oversight & Accountability
Oversight of this contract would involve monitoring Continental Service Group's performance against contract terms, ensuring compliance with regulations, and verifying the effectiveness of their debt collection strategies.
Related Government Programs
- Collection Agencies
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Value for money assessment is difficult without performance data.
- Potential for limited competition despite 'full and open' designation.
- Lack of transparency on specific collection methods and their impact.
- Need for benchmarking against similar contracts to ensure fair pricing.
Tags
collection-agencies, department-of-the-treasury, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $23.0 million to CONTINENTAL SERVICE GROUP, LLC. PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES
Who is the contractor on this award?
The obligated recipient is CONTINENTAL SERVICE GROUP, LLC.
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 $23.0 million.
What is the period of performance?
Start: 2012-03-12. End: 2019-09-11.
What was the average recovery rate and cost per dollar collected for this contract compared to industry standards?
Assessing the average recovery rate and cost per dollar collected is crucial for determining the contract's value. Without specific performance data, it's challenging to benchmark against industry standards. A high recovery rate with a low cost per dollar would indicate strong value, while the opposite would raise concerns about the agency's effectiveness and pricing.
How effectively did the 'full and open competition' process ensure a competitive marketplace for these debt collection services?
While advertised as 'full and open competition,' the limited number of delivery orders (11) suggests that the actual market participation might have been constrained. Further investigation into the bidding process and the number of proposals received is needed to confirm if genuine competition was achieved and if it led to optimal pricing and service selection.
What are the specific performance metrics and taxpayer impact associated with this $23 million contract?
The specific performance metrics, such as recovery rates and timelines, are not detailed in the provided data. Understanding these metrics is essential to quantify the taxpayer impact. A successful contract would demonstrate significant debt recovery at a reasonable cost, thereby positively impacting government revenue and fiscal health.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Collection Agencies
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 200 CROSS KEYS OFFICE PARK, FAIRPORT, NY, 14450
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,044,928
Exercised Options: $23,044,928
Current Obligation: $23,044,928
Actual Outlays: $64,087
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS23F0084P
IDV Type: FSS
Timeline
Start Date: 2012-03-12
Current End Date: 2019-09-11
Potential End Date: 2019-09-11 00:00:00
Last Modified: 2020-04-23
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