Treasury's $19.7M Debt Collection Contract with Linebarger Goggan Awarded via Competitive Delivery Order
Contract Overview
Contract Amount: $19,688,531 ($19.7M)
Contractor: Linebarger Goggan Blair & Sampson, LLP
Awarding Agency: Department of the Treasury
Start Date: 2007-03-12
End Date: 2012-03-11
Contract Duration: 1,826 days
Daily Burn Rate: $10.8K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 22
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)
Sector: Other
Official Description: PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78741, UNITED STATES OF AMERICA
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $19.7 million to LINEBARGER GOGGAN BLAIR & SAMPSON, LLP for work described as: PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES Key points: 1. The contract value of $19.7 million over five years represents a significant investment in debt recovery services. 2. Competition was present, indicated by the 'COMPETITIVE DELIVERY ORDER' type, suggesting multiple bids were considered. 3. Potential risks include the effectiveness of collection strategies and the agency's ability to manage contractor performance. 4. The sector is primarily financial services, focusing on debt collection for government receivables.
Value Assessment
Rating: fair
The contract value of $19.7 million over five years averages approximately $3.9 million annually. Benchmarking this against similar government debt collection contracts is difficult without specific service level agreements and recovery rates, but it appears within a reasonable range for large-scale debt recovery operations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that multiple vendors were solicited and competed for this specific task order. This method generally promotes price discovery and allows the government to select the most advantageous offer.
Taxpayer Impact: Taxpayer funds are utilized for this contract, with the expectation that successful debt collection will offset these costs and potentially recover additional revenue for the government.
Public Impact
Ensures government agencies can recover outstanding debts, potentially improving fiscal health. May involve direct contact with individuals or businesses owing money to the government. The use of a private agency can be more cost-effective than maintaining in-house collection capabilities for certain debt types.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Performance variability in debt collection success rates.
- Potential for negative public perception of aggressive collection tactics.
- Contractor compliance with data privacy and security regulations.
Positive Signals
- Leverages specialized expertise in debt recovery.
- Competitive award process likely secured favorable pricing.
- Potential for significant revenue recovery for the government.
Sector Analysis
The sector involves government debt collection services, a specialized area within financial services. Benchmarks for this sector are often tied to recovery rates and efficiency metrics rather than direct cost comparisons, as services are highly tailored to the type of debt and debtor.
Small Business Impact
There is no explicit indication of small business participation in this award. The prime contractor, Linebarger Goggan Blair & Sampson, LLP, is a large firm, suggesting that subcontracting opportunities for small businesses may be limited or not a primary focus of this specific contract.
Oversight & Accountability
The contract was awarded via a competitive delivery order, implying a structured procurement process. Oversight would typically involve monitoring performance metrics, ensuring compliance with contract terms, and managing contractor relationships by the Department of the Treasury's Financial Management Service.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of the Treasury Contracting
- Financial Management Service Programs
Risk Flags
- Contract duration is relatively long (5 years).
- Specific performance metrics and recovery rates are not detailed.
- Potential for negative public relations if collection practices are aggressive.
- Reliance on a single large contractor for a critical function.
Tags
miscellaneous-financial-investment-activ, department-of-the-treasury, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $19.7 million to LINEBARGER GOGGAN BLAIR & SAMPSON, LLP. PRIVATE COLLECTION AGENCY FOR DEBT COLLECTION SERVICES
Who is the contractor on this award?
The obligated recipient is LINEBARGER GOGGAN BLAIR & SAMPSON, LLP.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Financial Management Service).
What is the total obligated amount?
The obligated amount is $19.7 million.
What is the period of performance?
Start: 2007-03-12. End: 2012-03-11.
What is the expected return on investment for this debt collection contract?
The expected return on investment is not explicitly detailed in the provided data. However, the contract's purpose is to recover outstanding debts, implying that the value of collected debts should exceed the contract cost. Success metrics would likely include the total amount recovered, the cost per dollar collected, and the time to recovery, which are crucial for assessing ROI.
What are the primary risks associated with using a private agency for debt collection?
Key risks include potential damage to the government's reputation if collection tactics are perceived as overly aggressive or unfair, data security breaches of sensitive debtor information, and the possibility that the agency may not achieve the expected recovery rates, leading to a poor return on investment. Ensuring robust oversight and clear performance standards is critical to mitigate these risks.
How effective is this contract in recovering delinquent government debts compared to government-run collection efforts?
The effectiveness comparison is not directly available. However, private collection agencies often specialize in specific debt types and employ advanced recovery techniques, potentially leading to higher recovery rates than internal government efforts, especially for aged or complex debts. The competitive award process suggests the government sought the most effective solution available in the market.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 22
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)
Evaluated Preference: NONE
Contractor Details
Address: 1949 S IH 35, AUSTIN, TX, 78741
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,688,531
Exercised Options: $19,688,531
Current Obligation: $19,688,531
Parent Contract
Parent Award PIID: GS23F0159L
IDV Type: FSS
Timeline
Start Date: 2007-03-12
Current End Date: 2012-03-11
Potential End Date: 2012-03-11 00:00:00
Last Modified: 2015-04-01
More Contracts from Linebarger Goggan Blair & Sampson, LLP
- Debt Collection Services — $12.5M (Department of the Treasury)
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