Treasury's $23.9M Debt Collection Contract with Performant Recovery Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $23,872,753 ($23.9M)
Contractor: Performant Recovery, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2012-03-12
End Date: 2019-09-11
Contract Duration: 2,739 days
Daily Burn Rate: $8.7K/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: FAIRPORT, MONROE County, NEW YORK, 14450
State: New York Government Spending
Plain-Language Summary
Department of the Treasury obligated $23.9 million to PERFORMANT RECOVERY, INC. for work described as: PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES Key points: 1. The contract awarded to Performant Recovery, Inc. for debt collection services totaled $23.9 million. 2. Awarded under full and open competition, the contract's value and effectiveness warrant further examination. 3. Potential risks include the efficiency of debt recovery and the overall return on investment for taxpayers. 4. The sector involves financial services and government debt management.
Value Assessment
Rating: fair
The contract's value of $23.9 million over seven years suggests a moderate annual spend. Benchmarking against similar debt collection contracts is difficult without specific performance metrics and recovery rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a competitive bidding process. However, the effectiveness of price discovery and the ultimate value achieved through this competition are not immediately clear from the data.
Taxpayer Impact: Taxpayer impact is tied to the efficiency of debt recovery and the agency's ability to recoup funds owed to the government.
Public Impact
Citizens may interact with Performant Recovery for outstanding debts owed to the Treasury. The contract's success directly impacts the government's ability to collect revenue. Transparency in debt collection practices is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of performance metrics
- Unclear return on investment
- Potential for aggressive collection tactics
Positive Signals
- Awarded via full and open competition
- Long-term contract provides stability
Sector Analysis
This contract falls within the financial services sector, specifically focusing on debt collection for government agencies. Benchmarks for this sector are highly variable, depending on the type of debt and recovery success rates.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award.
Oversight & Accountability
Oversight would typically involve monitoring Performant Recovery's collection activities, adherence to regulations, and reporting on recovery rates to the Bureau of the Fiscal Service.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Lack of specific performance metrics
- Unclear return on investment
- Potential for high administrative costs
- Limited insight into collection effectiveness
Tags
miscellaneous-financial-investment-activ, department-of-the-treasury, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $23.9 million to PERFORMANT RECOVERY, INC.. PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES
Who is the contractor on this award?
The obligated recipient is PERFORMANT RECOVERY, 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 $23.9 million.
What is the period of performance?
Start: 2012-03-12. End: 2019-09-11.
What was the actual rate of debt recovery achieved under this contract, and how does it compare to industry benchmarks or previous government efforts?
The provided data does not include specific recovery rates. To assess value, a detailed analysis of the total debt collected versus the contract cost is necessary. Comparing this to industry averages for similar debt types and collection methods would reveal if the government received a competitive return on its investment.
Were there any performance issues or disputes with Performant Recovery, Inc. during the contract's duration that might indicate risk?
The data does not specify any performance issues or disputes. However, the extended duration and significant value suggest that ongoing monitoring by the Bureau of the Fiscal Service would be essential to mitigate risks related to collection practices, compliance, and effectiveness.
How effectively did the 'full and open competition' process ensure the best possible pricing and service for the government in this debt collection contract?
While 'full and open competition' suggests a broad solicitation, its effectiveness in ensuring optimal pricing and service depends on the specific evaluation criteria and the number/quality of bids received. Without bid details, it's hard to definitively assess if this process yielded the best outcome compared to alternative contracting methods.
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: 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
Parent Company: Performant Financial Corporation (UEI: 784424728)
Address: 555 MCCORMICK ST, SAN LEANDRO, CA, 94577
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,872,753
Exercised Options: $23,872,753
Current Obligation: $23,872,753
Actual Outlays: $51,361
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F0286K
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: 2020-01-28
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