Treasury's IRS awards $51.5M contract for tax collection services to Performant Recovery, Inc
Contract Overview
Contract Amount: $51,461,761 ($51.5M)
Contractor: Performant Recovery, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2016-09-23
End Date: 2021-09-22
Contract Duration: 1,825 days
Daily Burn Rate: $28.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CL::IGF FOR CLOSELY ASSOCIATED - CYRBYME-C - TAX COLLECTION SERVICES PURSUANT TO THE FIXING AMERICA'S SURFACE TRANSPORTATION ACT
Place of Performance
Location: SAN LEANDRO, ALAMEDA County, CALIFORNIA, 94577
Plain-Language Summary
Department of the Treasury obligated $51.5 million to PERFORMANT RECOVERY, INC. for work described as: IGF::CL::IGF FOR CLOSELY ASSOCIATED - CYRBYME-C - TAX COLLECTION SERVICES PURSUANT TO THE FIXING AMERICA'S SURFACE TRANSPORTATION ACT Key points: 1. Contract value of $51.5M over 5 years. 2. Awarded under full and open competition. 3. Potential risk in reliance on a single vendor for critical tax collection. 4. Sector: Miscellaneous Financial Investment Activities.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests predictable costs. Benchmarking against similar tax collection services is needed for a definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayers benefit from efficient tax collection, which supports government services. The cost-effectiveness of this specific contract will determine the ultimate taxpayer impact.
Public Impact
Ensures continued operation of essential tax collection functions. Supports government revenue streams for public services. Potential for improved efficiency in recovering delinquent taxes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor lock-in potential
- Data security and privacy concerns
- Performance variability
Positive Signals
- Competitive award process
- Clear contract duration
Sector Analysis
This contract falls under Miscellaneous Financial Investment Activities, a broad category. Benchmarks for similar tax collection services are not readily available but typically involve performance-based metrics.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award.
Oversight & Accountability
Oversight by the IRS and Treasury Department is crucial to ensure Performant Recovery, Inc. meets performance standards and adheres to all regulations.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Reliance on a single vendor for critical function
- Potential for data breach or privacy violation
- Vendor performance not guaranteed
- Contract duration could lead to complacency
Tags
miscellaneous-financial-investment-activ, department-of-the-treasury, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $51.5 million to PERFORMANT RECOVERY, INC.. IGF::CL::IGF FOR CLOSELY ASSOCIATED - CYRBYME-C - TAX COLLECTION SERVICES PURSUANT TO THE FIXING AMERICA'S SURFACE TRANSPORTATION ACT
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 (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $51.5 million.
What is the period of performance?
Start: 2016-09-23. End: 2021-09-22.
What is the benchmarked cost per dollar collected for this contract compared to industry standards?
Benchmarking the cost per dollar collected is essential for evaluating the value of this contract. Without specific performance data and industry comparisons, it's difficult to definitively assess if the $51.5M expenditure is optimal. Further analysis should compare Performant Recovery's collection rates and associated costs against similar contracts and private sector benchmarks.
What are the specific performance metrics and penalties outlined in the contract?
The contract's effectiveness hinges on clearly defined performance metrics and associated penalties for non-compliance. Understanding these measures is critical for assessing risk and ensuring the vendor meets its obligations. The absence of this detail in the provided data limits a thorough risk assessment.
How does the IRS ensure data security and taxpayer privacy with this third-party vendor?
Ensuring data security and taxpayer privacy is paramount when outsourcing tax collection. The IRS must have robust protocols and regular audits in place to verify Performant Recovery, Inc.'s compliance with all relevant privacy laws and security standards. This is a critical oversight function to mitigate potential risks.
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: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Performant Financial Corporation
Address: 555 MCCORMICK ST, SAN LEANDRO, CA, 94577
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $163,609,354
Exercised Options: $52,999,692
Current Obligation: $51,461,761
Actual Outlays: $39,333,223
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F0286K
IDV Type: FSS
Timeline
Start Date: 2016-09-23
Current End Date: 2021-09-22
Potential End Date: 2021-09-22 07:36:24
Last Modified: 2023-06-20
More Contracts from Performant Recovery, Inc.
- Private Collection Agency Performs Collection and Administrative Resolution Activities on Debts Resulting From Non-Payment of Student Loans Made Under the Various Federal Student AID Loan Programs — $230.2M (Department of Education)
- Debt Collection — $141.3M (Department of Education)
- Medicare Secondary Payer Commercial Repayment Center (MSP CRC) Contract — $124.2M (Department of Health and Human Services)
- Priovides ED a Means of Conrolling Deliquent/Defaulted Accounts, Including Managing ALL Transactions Related to Identifying Defaulted Loans and Billing Defaulted Borrowers — $121.9M (Department of Education)
- Recovery Auditor Contractor (RAC) Region 1 2021- Acquire a RAC to Identify Underpayments and Recoup Overpayments Associated With Services for Which Payment IS Made Under Medicare Including Part a or B of Title Xviii of the Social Security ACT — $54.9M (Department of Health and Human Services)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)