DoD's Third Party Collections Program Spends $19.5M on Billing Services with Hamilton Enterprises
Contract Overview
Contract Amount: $19,466,239 ($19.5M)
Contractor: Hamilton Enterprises, LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-09
End Date: 2026-03-08
Contract Duration: 1,641 days
Daily Burn Rate: $11.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: THIRD PARTY COLLECTIONS PROGRAM (TPCP) REGIONS ONE THRU THREE, COLLECTIONS PROGRAM FOR BILLING AND COLLECTION SERVICES.
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78226
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $19.5 million to HAMILTON ENTERPRISES, LLC for work described as: THIRD PARTY COLLECTIONS PROGRAM (TPCP) REGIONS ONE THRU THREE, COLLECTIONS PROGRAM FOR BILLING AND COLLECTION SERVICES. Key points: 1. The contract focuses on billing and collection services for the Defense Health Agency. 2. Hamilton Enterprises, LLC is the sole awardee under a full and open competition after exclusion of sources. 3. The contract runs for over 5 years, indicating a long-term need for these services. 4. The award value is substantial, suggesting significant volume of collections or complexity. 5. The 'Other Accounting Services' NAICS code points to a specialized financial function.
Value Assessment
Rating: fair
The contract's value of $19.5 million over approximately 5.5 years needs to be benchmarked against similar government contracts for billing and collection services. Without specific per-unit cost data or comparison to industry standards, assessing the pricing fairness is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies a competitive process but with specific limitations. The impact on price discovery depends on the rigor of the exclusion and evaluation process.
Taxpayer Impact: The taxpayer impact is tied to the efficiency and effectiveness of the collections program. If the program successfully recovers funds owed to the government, it represents a positive financial return for taxpayers.
Public Impact
Ensures efficient billing and collection of funds for the Defense Health Agency. Supports the financial operations of a critical government healthcare provider. Potential for cost recovery that offsets program expenses. The long duration suggests a stable, ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for vendor lock-in due to long contract duration.
- Limited transparency on specific collection success rates.
Positive Signals
- Competitive award process.
- Long-term contract provides stability.
- Focus on essential financial services.
Sector Analysis
The Defense Health Agency operates within the healthcare sector, requiring specialized financial services for billing and collections. Benchmarking this contract's value against other government healthcare administrative contracts would provide context on its scale and cost-effectiveness.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as the awardee is Hamilton Enterprises, LLC. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
Oversight will be crucial to ensure Hamilton Enterprises meets performance expectations and adheres to all billing and collection regulations. The Department of Defense and the Defense Health Agency should monitor key performance indicators and conduct regular reviews.
Related Government Programs
- Other Accounting Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Contract duration exceeds 5 years.
- Limited information on performance metrics.
- No explicit mention of small business participation.
- Potential for data security risks.
- Reliance on a single vendor for critical financial services.
Tags
other-accounting-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.5 million to HAMILTON ENTERPRISES, LLC. THIRD PARTY COLLECTIONS PROGRAM (TPCP) REGIONS ONE THRU THREE, COLLECTIONS PROGRAM FOR BILLING AND COLLECTION SERVICES.
Who is the contractor on this award?
The obligated recipient is HAMILTON ENTERPRISES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $19.5 million.
What is the period of performance?
Start: 2021-09-09. End: 2026-03-08.
What is the expected return on investment for this collections program?
The expected return on investment for this collections program is not explicitly stated in the provided data. However, the contract's purpose is to facilitate billing and collection services, implying an objective to recover funds owed to the government. A detailed analysis of historical collection rates and program costs would be necessary to quantify the ROI and assess its value to taxpayers.
What are the primary risks associated with this contract?
Key risks include potential inefficiencies in collection processes leading to lower-than-expected revenue recovery, data security breaches given the sensitive financial information handled, and vendor performance issues impacting the Defense Health Agency's financial operations. The long contract duration also poses a risk of vendor lock-in and potential price increases over time if not managed effectively.
How effective is the 'full and open competition after exclusion of sources' method in ensuring value for money?
This competition method aims to balance broad market access with specific requirements, potentially leading to value for money if the exclusion criteria are well-defined and justified. It allows for competition among qualified vendors while excluding those who do not meet specific technical or capability thresholds. The effectiveness hinges on the transparency and fairness of the exclusion process and the subsequent evaluation of proposals.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7233 HANOVER PKWY STE D, GREENBELT, MD, 20770
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,466,239
Exercised Options: $19,466,239
Current Obligation: $19,466,239
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADS206
IDV Type: IDC
Timeline
Start Date: 2021-09-09
Current End Date: 2026-03-08
Potential End Date: 2026-03-08 00:00:00
Last Modified: 2025-12-23
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