DOJ's $3M debt collection contract with Halloran & Sage LLP shows strong competition and fair pricing

Contract Overview

Contract Amount: $300,730 ($300.7K)

Contractor: Halloran & Sage LLP

Awarding Agency: Department of Justice

Start Date: 2019-10-01

End Date: 2024-12-08

Contract Duration: 1,895 days

Daily Burn Rate: $159/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRIVATE COUNSEL DEBT COLLECTION FOR THE DISTRICT OF CONNECTICUT

Place of Performance

Location: HARTFORD, HARTFORD County, CONNECTICUT, 06103

State: Connecticut Government Spending

Plain-Language Summary

Department of Justice obligated $300,729.61 to HALLORAN & SAGE LLP for work described as: PRIVATE COUNSEL DEBT COLLECTION FOR THE DISTRICT OF CONNECTICUT Key points: 1. The contract leverages private sector expertise for debt recovery, potentially improving collection rates. 2. A competitive bidding process suggests a healthy market for these specialized legal services. 3. The fixed-price structure provides cost certainty for the government. 4. Performance metrics and oversight will be key to ensuring value for taxpayer funds. 5. This contract aligns with DOJ's strategy to efficiently manage and recover outstanding debts.

Value Assessment

Rating: good

The contract's total value of approximately $3 million over its duration appears reasonable given the specialized nature of debt collection legal services. Benchmarking against similar contracts for private debt collection counsel is challenging without more specific data on collection success rates and the complexity of the debt portfolios. However, the fixed-price contract type suggests that the government has a clear understanding of the expected costs for the services rendered, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bidders participating. This level of competition is a positive sign, indicating that multiple firms were interested and capable of providing the required services. A competitive process generally leads to better price discovery and encourages firms to offer their most competitive rates and terms, ultimately benefiting the government.

Taxpayer Impact: The robust competition for this contract suggests that taxpayers are likely receiving a fair price for the debt collection services, as firms vied to win the award.

Public Impact

The primary beneficiaries are the Department of Justice and potentially the U.S. Treasury, through the recovery of outstanding debts. The services delivered involve legal representation and collection efforts for debts owed to the U.S. government within the District of Connecticut. The geographic impact is focused on the District of Connecticut, where the legal actions and collections will take place. The contract supports legal professionals and administrative staff within the selected law firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for lengthy contract duration to increase overall costs if not managed effectively.
Reliance on a single firm for debt collection may limit flexibility in adapting to changing legal landscapes or collection needs.

Positive Signals

Fixed-price contract provides cost predictability.
Full and open competition indicates a healthy market and potential for competitive pricing.
Specialized legal expertise is being leveraged for debt recovery.

Sector Analysis

The legal services sector, particularly firms specializing in debt collection, is a critical component of the broader professional services market supporting government operations. Government contracts for legal services, especially for debt recovery, are often awarded through competitive processes to ensure efficiency and cost-effectiveness. The market size for such specialized legal services is substantial, with numerous firms capable of undertaking these roles.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award went to a law firm, Halloran & Sage LLP, which is likely a medium to large-sized entity. Therefore, this specific contract does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Justice's relevant divisions, likely the Executive Office for U.S. Attorneys or the Bureau of the Fiscal Service, depending on the specific debt types. Accountability measures would be embedded in the contract terms, performance standards, and reporting requirements. Transparency is generally maintained through contract databases like FPDS, though specific collection activities and outcomes may be internal.

Related Government Programs

Department of Justice Debt Collection Programs
Bureau of the Fiscal Service Debt Management
U.S. Attorney's Office Civil Divisions

Risk Flags

Contract Duration
Performance Monitoring Needed

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $300,729.61 to HALLORAN & SAGE LLP. PRIVATE COUNSEL DEBT COLLECTION FOR THE DISTRICT OF CONNECTICUT

Who is the contractor on this award?

The obligated recipient is HALLORAN & SAGE LLP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $300,729.61.

What is the period of performance?

Start: 2019-10-01. End: 2024-12-08.

What is the historical spending pattern for debt collection legal services by the Department of Justice in the District of Connecticut?

Analyzing historical spending for debt collection legal services by the DOJ in the District of Connecticut requires access to detailed procurement data beyond this single contract. While this contract with Halloran & Sage LLP represents approximately $3 million over its period, understanding the broader pattern involves examining previous contracts awarded for similar services, their values, durations, and the number of bidders. Trends might indicate an increasing reliance on private counsel, shifts in the types of debt being pursued, or changes in the average cost per dollar collected. Without a comprehensive review of past solicitations and awards specific to this district and service type, it's difficult to establish a definitive historical spending pattern beyond the data presented for this contract.

How does the performance of Halloran & Sage LLP on this contract compare to other firms providing similar debt collection services to the government?

Direct performance comparison of Halloran & Sage LLP against other firms providing similar debt collection services to the government is challenging without access to specific performance metrics and outcomes for all relevant contracts. Key performance indicators for debt collection typically include the rate of successful collections, the cost per dollar collected, the time to collect, and adherence to legal and ethical standards. While this contract was awarded competitively, indicating a perceived capability, its actual effectiveness relative to peers would depend on detailed post-award performance data, which is often not publicly available in a standardized format. Future analysis could involve tracking collection success rates and efficiency metrics if they become accessible.

What are the specific types of debts being collected under this contract, and what is their estimated total value?

The provided data does not specify the exact types of debts being collected under this contract, nor does it provide an estimate of the total value of the debts themselves. The contract is broadly described as 'PRIVATE COUNSEL DEBT COLLECTION FOR THE DISTRICT OF CONNECTICUT.' This could encompass a wide range of debts owed to the U.S. government, such as unpaid fines, restitution, civil judgments, or other financial obligations. The contract value of $3,007,296.61 represents the government's expenditure for the legal services to pursue these debts, not the value of the debts themselves. Further details on the debt portfolio would likely reside within internal DOJ documentation or specific task orders issued under this contract.

What is the risk assessment associated with relying on a single law firm for debt collection services in a specific geographic region?

The primary risks associated with relying on a single law firm for debt collection in a specific region include potential over-reliance, lack of competitive pressure on performance once the contract is awarded, and vulnerability to disruptions if the firm faces operational issues (e.g., staffing, legal challenges, financial instability). While this contract was awarded through full and open competition, ongoing performance monitoring is crucial. The risk is mitigated by the fixed-price nature of the contract, which caps government expenditure, and the potential for the government to exercise contract options or re-compete the service if performance is unsatisfactory. However, the government's ability to quickly pivot to another provider might be limited by the time required for a new procurement process.

How does the contract's duration and value compare to typical engagements for similar legal services at the federal level?

This contract has a duration of approximately 1895 days (around 5.2 years) and a total value of roughly $3 million. This duration is relatively long for a service contract, suggesting a sustained need for debt collection services. The value, averaging around $580,000 per year, appears moderate for specialized legal services provided to a federal agency. Compared to typical federal engagements for legal counsel, especially in areas like litigation support or specialized collections, this contract falls within a common range. However, the specific nature of debt collection and the geographic focus might make direct comparisons difficult without a broader dataset of similar contracts across different agencies and districts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › Offices of Lawyers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15JPSS19R00000005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 225 ASSYLUM ST, HARTFORD, CT, 06103

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $300,730

Exercised Options: $300,730

Current Obligation: $300,730

Actual Outlays: $300,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline