2033H626N00002.pdf

2033H626N00002 Request for Information and Draft Solicitation

Title: Default Resolution Agent Services Education Debt Product Service Code: R705 Support - Management: Debt Collection NAICS Code: 561440 Collection Agencies Response Date: 4:00 p.m. Eastern Time 04/21/2026.

Introduction Pursuant to FAR Part 10 Market Research, this is a Request for Information (RFI) issued by the Treasury Common Services Center (TCSC) on behalf of the Bureau of the Fiscal Service. The purpose of this RFI is to obtain industry input on a draft solicitation and related questions. The information is being sought solely for market research and acquisition planning purposes. Responses to the RFI will not serve as proposals, bids, or offers, which could be accepted by the Government to form a binding contract.

Background The U.S. Department of the Treasury, Bureau of the Fiscal Service (BFS), is responsible for collecting delinquent, nontax debts owed to the United States. Federal law generally requires federal agencies that are owed nontax debts (Creditor Agencies) to refer nontax debts that have been delinquent for 120 days or more to BFS’s Cross- Servicing program for debt collection services. BFS may use a variety of tools to collect such debts. For example, BFS may refer eligible debts to contracted default resolution agents for debt collection services.

The U.S. Department of Education (ED), Federal Student Aid (FSA), is responsible for, among other things, collecting defaulted student loans, a portfolio currently comprised of approximately 9.2 million debtors and worth $217 billion. ED may refer defaulted student loans (or a portion thereof) to BFS’s Cross-Servicing program for debt collection services in accordance with federal law.

Statement of Need BFS has a requirement to provide Cross-Servicing services on behalf of ED for student loans in a defaulted status. BFS seeks industry input on the draft solicitation attached, and responses to the following questions:

1. BFS would like a sense of which potential bidders may be interested and capable of performing the work set forth by this draft performance work statement (PWS). To that end, does your company have any previous experience collecting defaulted student loan debts? If so, describe your experience and provide your collection rate and years your company serviced this type of work.

2. What factors should BFS consider with regard to establishing a single percentage fee compensation structure based upon total collection that would remain the same regardless of collection type (e.g., payment agreements, rehabilitations, consolidations, etc.), would not provide any additional flat fee compensation for rehabilitations or consolidations, and would not provide compensation for debt resolutions that do not result in a collection (e.g., bankruptcy)?

3. Do you have suggestions for alternative compensation structures? If so, please explain the advantages and disadvantages of alternative approaches.

4. Are there industry best practices you would recommend with regard to maximum duration of partial repayment agreements (i.e., a payment agreement that provides for partial payment of the debt over installments, but would not compromise the amount of the debt) for defaulted student loan debt, for instance, 12 months, 18 months, 24 months, or greater?

5. In your estimation, approximately how many defaulted student loan debt accounts would your company be able to concurrently service in one month?

6. What is the current percentage of calls that you review for quality control and customer experience? What does that review process entail?

7. What insights related to defaulted student loan debt collection can your company share for BFS’s consideration as BFS prepares for this solicitation? For instance, what factors increase the likelihood of successful collection from defaulted student loan borrowers, what skillsets/knowledge bases does your company find to be most beneficial to successful collection from debtors, what helped facilitate the rehabilitation process, etc.?

8. Are there any requirements or processes not described in the PWS that you believe should be added to the PWS?

9. Are there any portions of the PWS that you believe need to be amended or clarified?

Submission Guidelines

All electronic materials and attachments submitted must be formatted in accordance with the Bureau of the Fiscal Service’s Security Requirements. The following file extensions are not allowable and application materials/data submitted with these extensions cannot be opened: .bat, .cmd, .com, .exe, .pif, .rar, .scr, .vbs, .hta, .cpl, html, mhtml, and .zip files.

There is no page limit for submissions. Please provide a brief capability statement related to this requirement, responses to the questions above, input and/or questions about the draft solicitation, with a cover page including the following information in your company’s response:

1. Contact information;

2. Unique Entity Identifier (UEI);

3. Specify applicable Socio Economic Status(es) and (Business Size) under NAICS 561440 according to the following categories;

• Small Business;

• 8(a) Small Business;

• HUBZone Small Business;

• Small Disadvantaged Business;

• Woman-Owned Small Business;

• Economically Disadvantaged Woman-Owned Small Business;

• Veteran-Owned Small Business;

• Service-Disabled Veteran-Owned Small Business;

• Other Than Small Business.

4. Identify any applicable Government contract vehicles (e.g., GWACs, IDIQs, BPAs, MAS schedules) that are accessible to the Department of the Treasury, including contract number, ordering agency, and period of performance, under which your company can provide these services.

Deadline for Responses

Please provide input to BFS by 4:00 p.m. Eastern Time 04/21/2026. Responses must be submitted electronically to the following email address: purchasing@fiscal.treasury.gov. Responding vendors must reference “2033H626N00002 DEFAULT RESOLUTION AGENT SERVICES EDUCATION DEBT Attn: RN/TA” in the subject line of the email.

Disclaimers

This is not a request for proposal/quote and does not imply an obligation on the part of the Government to purchase products/services or to proceed to any request for proposal/quote for such products/services. Further, this request does not obligate the Government to ultimately pursue a particular acquisition strategy. The Government must not be liable for any costs incurred by vendors in preparing and submitting a response to this RFI. Submission of a response confers no rights upon the respondent.

This is only a request for information for determining an acquisition strategy. No formal solicitation is available.

Requests for additional information and/or a copy of the solicitation will not be considered an affirmative response to this posting. Telephone responses or inquiries to this request will not be accepted. All respondents are advised that responses to this notice, in and of themselves, will in no way be considered for contract award. In the event that a resultant solicitation would ensue, interested parties would be required to respond separately and formally in order to be considered for contract award. Additionally, a determination not to compete the proposed acquisition based upon responses to this request would be at the sole discretion of the Government.

DRAFT

REQUEST FOR QUOTE (DRAFT)

The Treasury Common Services Center (TCSC) is issuing this competitive Request for Quote (RFQ) on behalf of the Bureau of the Fiscal Service to GSA contract holders under SIN 561440 in accordance with the Contractors’ GSA Multiple Award Schedule (MAS) Contract(s), for the purpose of entering into a Task Order for the requirement entitled, “Default Resolution Agent Services Education Debt.”

The Government anticipates awarding multiple Task Orders, each inclusive of one (1) 12-month Base Period and four (4) 12-month Option Periods. This RFQ is issued in accordance with the Department of the Treasury (Treasury) Class Deviation 2025-00019 - Implementing the Class Deviation from the Federal Acquisition Regulation (FAR) Part 8, Required Sources of Supplies and Services, in accordance with Executive Order (EO) 14275, “Restoring Common Sense to Federal Procurement.” This RFQ follows the Revolutionary FAR Overhaul (RFO) Part 8 model deviation text instead of FAR Part 8 as codified at 48 Code of Federal Regulations (CFR) Chapter 1.

Eligible GSA Contractors may enter into a Task Order which extends beyond the current term of their GSA Schedule contract, as long as there is at least one unexercised option period in their contract that, if exercised, will cover the full Period of Performance (POP) if all options are exercised.

Interested Contractors must submit responses in accordance with the requirements and instructions contained herein.

TABLE OF CONTENTS

Clauses, Terms, and Conditions…………………………………………….……………… Pages 2 - 7

Performance Work Statement.……………..….…………………………….……………… Pages 8 - 41

Contract Documents, Attachments, and Exhibits………………………………………. Page 42

Notices, Provisions, and Prohibitions.……………………………………….…………… Page 43 - 44

Procurement Information……………………………………………………….…………… Page 45 - 46

Quotation Instructions…..……………………………………….……………………...…… Pages 47 - 50

Evaluation of Quotes…………………………………………….…………………………… Pages 51 - 55

IMPORTANT DATES

QUESTIONS: Any questions regarding this solicitation must be submitted via email to the Contracting Officer (CO) at purchasing@fiscal.treasury.gov no later than TIME & DATE. The Offeror must include “RFQ 2033H626Q00002 DEFAULT RESOLUTION AGENT SERVICES EDUCATION DEBT Attn:

RN/TA” in the subject line of the email.

PHASE ONE: Please submit a response in accordance with instructions located on pages ## on or before TIME & DATE to purchasing@fiscal.treasury.gov with “RFQ 2033H626Q00002 DEFAULT RESOLUTION AGENT SERVICES EDUCATION DEBT Attn: RN/TA” in the subject line of the email.

ADVISORY NOTIFICATION: Vendors will receive an Advisory Notification from the Government, on or about DATE. The purpose of this notification is to advise vendors whether a Phase 2 and 3 submission is likely to result in award. This feedback is strictly advisory in nature; Offerors will not be excluded from Phase Two competition. See pages ## for details.

PHASES TWO AND THREE: Please submit a response in accordance with instructions located on pages ## on or before TIME & DATE to purchasing@fiscal.treasury.gov with RFQ 2033H626Q00002 DEFAULT RESOLUTION AGENT SERVICES EDUCATION DEBT Attn: RN/TA” in the subject line of the email.

https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-8 https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-8

52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this address: https://www.acquisition.gov/

1052.201-70 CONTRACTING OFFICER’S REPRESENTATIVE (COR) APPOINTMENT AND

AUTHORITY (APR 2015)

(a) The COR(s) are named on the award form. Should a change to the COR(s) be necessary in the future, they will be named on the modification SF-30.

(b) Performance of work under this contract is subject to the technical direction of the COR identified above, or a representative designated in writing. The term “technical direction” includes, without limitation, direction to the contractor that directs or redirects the labor effort, shifts the work between work areas or locations, and/or fills in details and otherwise serves to ensure that tasks outlined in the work statement are accomplished satisfactorily.

(c) Technical direction must be within the scope of the contract specification(s)/work statement. The COR does not have authority to issue technical direction that:

(1) Constitutes a change of assignment or additional work outside the contract specification(s)/work statement;

(2) Constitutes a change as defined in the clause entitled “Changes”;

(3) In any manner causes an increase or decrease in the contract price, or the time required for contract performance;

(4) Changes any of the terms, conditions, or specification(s)/work statement of the contract;

(5) Interferes with the contractor's right to perform under the terms and conditions of the contract; or

(6) Directs, supervises or otherwise controls the actions of the contractor's employees.

(d) Technical direction may be oral or in writing. The COR must confirm oral direction in writing within five workdays, with a copy to the Contracting Officer.

(e) The Contractor shall proceed promptly with performance resulting from the technical direction issued by the COR. If, in the opinion of the contractor, any direction of the COR or the designated representative falls within the limitations of (c) above, the contractor shall immediately notify the Contracting Officer no later than the beginning of the next Government work day.

(f) Failure of the Contractor and the Contracting Officer to agree that technical direction is within the scope of the contract shall be subject to the terms of the clause entitled “Disputes.”

52.240-91 Alt I Security Prohibitions and Exclusions (DEVIATION NOV 2025)

52.203-17 CONTRACTOR EMPLOYEE WHISTLEBLOWER RIGHTS (NOV 2023)

52.204-9 PERSONAL IDENTITY VERIFICATION OF CONTRACTOR PERSONNEL (JAN 2011)

1052.210-70 CONTRACTOR PUBLICITY (APR 2015)

The Contractor, or any entity or representative acting on behalf of the Contractor, shall not refer to the supplies or services furnished pursuant to the provisions of this contract in any news release or commercial advertising, or in connection with any news release or commercial advertising, without first obtaining explicit written consent to do so from the Contracting Officer. Should any reference to such supplies or services appear in any news release or commercial advertising issued by or on behalf of the Contractor without the required consent, the Government shall consider institution of all remedies available under applicable law, including 31 U.S.C. § 333, and this contract. Further, any violation of this clause may be considered during the evaluation of past performance.

https://www.acquisition.gov/ https://www.acquisition.gov/

52.217-6 OPTION FOR INCREASED QUANTITY (MAR 1989)

The Government may increase the quantity of supplies called for in the Schedule at the unit price specified. The Contracting Officer may exercise the option by written notice to the Contractor before expiration. Delivery of the added items shall continue at the same rate as the like items called for under the contract, unless the parties otherwise agree.

52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed six (6) months. The Contracting Officer may exercise the option by written notice to the Contractor before expiration.

52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

(a) The Government may extend the term of this contract by written notice to the Contractor prior to the expiration of each contract period; provided, that the Government gives the Contractor a preliminary written notice of its intent to extend at least 30 days before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the Government exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed 60 months.

52.232-18 AVAILABILITY OF FUNDS (APR 1984)

LAPSE FUNDING

In the event of a lapse funding resulting in a Government shutdown, the status of Fiscal Year funding and any necessary action required of the Contractor will be made available at the following website:

https://www.fiscal.treasury.gov/doing-business-with-fiscal-service/ . It is the Contractor's responsibility to monitor this website for information regarding Fiscal Year funding.

1052.232-7003 Electronic Submission of Payment Requests (APR 2015)

(a) Definitions. As used in this clause—

(1) “Payment request” means a bill, voucher, invoice, or request for contract financing payment with associated supporting documentation. The payment request must comply with the requirements identified in FAR 32.905(b), "Content of Invoices" and the applicable Payment clause included in this contract.

(b) Except as provided in paragraph (c) of this clause, the Contractor shall submit payment requests electronically using the Invoice Processing Platform (IPP). Information regarding IPP, including IPP Customer Support is available at www.ipp.gov or any successor site.

(c) The Contractor may submit payment requests using other than IPP only when the Contracting Officer authorizes alternate procedures in writing in accordance with Treasury procedures.

(d) If alternate payment procedures are authorized, the Contractor shall include a copy of the Contracting Officer’s written authorization with each payment request.

https://www.fiscal.treasury.gov/doing-business-with-fiscal-service/ https://www.fiscal.treasury.gov/doing-business-with-fiscal-service/ http://www.ipp.gov/ http://www.ipp.gov/

PAYMENT AND INVOICE QUESTIONS (IPP)

For payment and invoice questions, go to https://www.fiscal.treasury.gov/ipp/contact.html or contact Accounts Payable at (304) 480-8000 option 7 or via email at AccountsPayable@fiscal.treasury.gov.

OVERPAYMENTS

In accordance with 52.212-4 section (i) 5 Overpayments: Accounts Receivable Conversion of Check Payments to EFT: If the Contractor sends the Government a check to remedy duplicate contract financing or an overpayment by the Government, it will be converted into an electronic funds transfer (EFT). This means the Government will copy the check and use the account information on it to electronically debit the Contractor's account for the amount of the check. The debit from the Contractor's account will usually occur within 24 hours and will be shown on the regular account statement.

The Contractor will not receive the original check back. The Government shall destroy the Contractor's original check, but will keep a copy of it. If the EFT cannot be processed for technical reasons, the Contractor authorizes the Government to process the copy in place of the original check.

MARKING OF SHIPMENTS

The Contractor shall ensure the order number is clearly visible on all shipping/service documents, containers, and invoices.

PERFORMANCE EVALUATION

This award is subject to a performance evaluation via the Contractor Performance Assessment Reporting System (CPARS) at www.cpars.gov. Following the end of each 12-month performance period and at completion, a completed Government evaluation shall be forwarded to the Contractor. The Contractor may submit written comments, if any, within the time period specified in the evaluation transmittal. The Contractor’s comments shall be considered in the issuance of the final evaluation document. Any disagreement between the parties regarding the evaluation shall be forwarded to the Contracting Officer.

The final evaluation of the Contractor’s performance is the decision of the Contracting Agency and will be reviewed at least one level above the Contracting Officer. A copy of the final performance evaluation report will be sent to the Contractor and to the Government’s past performance database at https://www.cpars.gov/.

1052.242-70 Postaward Conference (JAN 2017)

(a) A postaward conference will be held with the successful offerors.

(b) The postaward conference will be held via teleconference. The Contracting Officer or authorized designee will provide the Contractor with the date and time along with other pertinent information, including the agenda for the postaward conference.

https://www.fiscal.treasury.gov/ipp/contact.html https://www.fiscal.treasury.gov/ipp/contact.html https://www.cpars.gov/ https://www.cpars.gov/

IRS Publication 1075 Tax Information Security Guidelines for Federal, State and Local Agencies Safeguards for Protecting Federal Tax Returns and Return Information

Federal Tax Information (FTI) Safeguarding FTI is critically important to continuously protect taxpayer confidentiality as required by the Internal Revenue Code (IRC) 6103. FTI may consist of returns or return information and may contain personally identifiable information (PII). FTI is any return or return information received from the IRS or secondary source, such as SSA, Federal Office of Child Support Enforcement or Bureau of Fiscal Service.

FTI includes any information created by the recipient that is derived from return or return information.

Return and Return Information Return information, in general, is any information collected or generated by the IRS with regard to any person’s liability or possible liability under the IRC. IRC 6103(b)(2)(A) defines return information as very broad. It includes but is not limited to:

Information, including the return, that IRS obtained from any source or developed through any means that relates to the potential liability of any person under the IRC for any tax, penalty, interest, fine, forfeiture, or other imposition or offense Information extracted from a return, including names of dependents or the location of business. The taxpayer’s name, address, and identification number Information collected by the IRS about any person’s tax affairs, even if identifiers, such as name, address, and identification number are deleted.

IRS Publication 1075 Exhibit 7

CONTRACT LANGUAGE FOR GENERAL SERVICES

I. PERFORMANCE

In performance of this contract, the Contractor agrees to comply with and assume responsibility for compliance by his or her employees with the following requirements:

(1) All work will be performed under the supervision of the contractor or the contractor's responsible employees.

(2) Any Federal tax returns or return information (hereafter referred to as returns or return information) made available shall be used only for the purpose of carrying out the provisions of this contract. Information contained in such material shall be treated as confidential and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of this contract. Inspection by or disclosure to anyone other than an officer or employee of the contractor is prohibited.

(3) All returns and return information will be accounted for upon receipt and properly stored before, during, and after processing. In addition, all related output and products will be given the same level of protection as required for the source material.

(4) No work involving returns and return information furnished under this contract will be subcontracted without prior written approval of the CO.

(5) The contractor will maintain a list of employees authorized access. Such list will be provided to the CO.

(6) The agency will have the right to void the contract if the contractor fails to provide the safeguards described above.

II. CRIMINAL/CIVIL SANCTIONS

(1) Each officer or employee of any person to whom returns or return information is or may be disclosed shall be notified in writing by such person that returns or return information disclosed to such officer or employee can be used only for a purpose and to the extent authorized herein, and that further disclosure of any such returns or return information for a purpose or to an extent unauthorized herein constitutes a felony punishable upon conviction by a fine of as much as $5,000 or imprisonment for as long as five years, or both, together with the costs of prosecution. Such person shall also notify each such officer and employee that any such unauthorized future disclosure of returns or return information may also result in an award of civil damages against the officer or employee in an amount not less than $1,000 with respect to each instance of unauthorized disclosure. These penalties are prescribed by IRCs 7213 and 7431 and set forth at 26 CFR 301.6103(n)-1.

(2) Each officer or employee of any person to whom returns or return information is or may be disclosed shall be notified in writing by such person that any return or return information made available in any format shall be used only for the purpose of carrying out the provisions of this contract. Information contained in such material shall be treated as confidential and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of this contract. Inspection by or disclosure to anyone without an official need-to-know constitutes a criminal misdemeanor punishable upon conviction by a fine of as much as $1,000.00 or imprisonment for as long as 1 year, or both, together with the costs of prosecution. Such person shall also notify each such officer and employee that any such unauthorized inspection or disclosure of returns or return information may also result in an award of civil damages against the officer or employee [United States for Federal employees] in an amount equal to the sum of the greater of $1,000.00 for each act of unauthorized inspection or disclosure with respect to which such defendant is found liable or the sum of the actual damages sustained by the plaintiff as a result of such unauthorized inspection or disclosure plus in the case of a willful inspection or disclosure which is the result of gross negligence, punitive damages, plus the costs of the action. The penalties are prescribed by IRCs 7213A and 7431.

(3) Additionally, it is incumbent upon the contractor to inform its officers and employees of the penalties for improper disclosure imposed by the Privacy Act of 1974, 5 U.S.C. 552a.

Specifically, 5 U.S.C. 552a(i)(1), which is made applicable to contractors by 5 U.S.C.

552a(m)(1), provides that any officer or employee of a contractor, who by virtue of his/her employment or official position, has possession of or access to agency records which contain individually identifiable information, the disclosure of which is prohibited by the Privacy Act or regulations established thereunder, and who knowing that disclosure of the specific material is so prohibited, willfully discloses the material in any manner to any person or agency not entitled to receive it, shall be guilty of a misdemeanor and fined not more than $5,000.

(4) Granting a contractor access to FTI must be preceded by certifying that each individual understands the agency’s security policy and procedures for safeguarding IRS information.

Contractors must maintain their authorization to access FTI through annual recertification. The initial certification and recertification must be documented and placed in the agency's files for review. As part of the certification and at least annually afterwards, contractors must be advised of the provisions of IRCs 7431, 7213, and 7213A (see Exhibit 4, Sanctions for Unauthorized Disclosure, and Exhibit 5, Civil Damages for Unauthorized Disclosure). The training provided before the initial certification and annually thereafter must also cover the incident response policy and procedure for reporting unauthorized disclosures and data breaches. For both the initial certification and the annual certification, the contractor must sign, either with ink or electronic signature, a confidentiality statement certifying their understanding of the security requirements.

III. INSPECTION

The IRS and the Agency shall have the right to send its officers and employees into the offices and plants of the contractor for inspection of the facilities and operations provided for the performance of any work under this contract. On the basis of such inspection, specific measures may be required in cases where the contractor is found to be noncompliant with contract safeguards.

PERFORMANCE WORK STATEMENT (PWS)

BUREAU OF THE FISCAL SERVICE

DEFAULT RESOLUTION AGENT SERVICES EDUCATION DEBT

TASK ORDER

1. BACKGROUND

The U.S. Department of the Treasury, Bureau of the Fiscal Service (BFS), is responsible for collecting delinquent, nontax debts owed to the United States. Federal law generally requires federal agencies that are owed nontax debts (Creditor Agencies) to refer nontax debts that have been delinquent for 120 days or more to BFS’s Cross-Servicing program for debt collection services. In addition, Creditor Agencies generally may refer nontax debts which are less than 120 days delinquent to BFS for debt collection services. BFS may use a variety of tools to collect such debts. For example, BFS may refer eligible debts to default resolution agents for debt collection services.

Prior to referring a debt to BFS’s Cross-Servicing program, a Creditor Agency is required to attempt to collect the debt by sending at least one demand letter to the debtor stating, among other things, the basis for and amount of the debt and the collection actions that may take place, the opportunity to administratively challenge the debt, the debtor’s right to obtain the agency’s records related to the debt, and the debtor’s right to enter into a reasonable repayment agreement. Upon receipt of a debt from a Creditor Agency, BFS’s Cross-Servicing program may employ a variety of collection tools to recover the debt on behalf of the Creditor Agency. For example, as appropriate, BFS may send demand letters to the debtor, place phone calls to the debtor, refer the account to the Treasury Offset Program for purposes of offsetting a debtor’s Federal and/or state payments, refer the debt to a default resolution agent, and report the debt to credit bureaus. BFS may service the debts internally before referring the debt to a default resolution agent but may opt to refer a debt to a default resolution agent at any time or not at all. If a default resolution agent is unable to collect or resolve the debt, BFS may decide to refer the debt to another default resolution agent, attempt to service the debt internally, suspend collection action, or return the debt to the Creditor Agency. BFS charges Creditor Agencies fees for its Cross-Servicing services (BFS Fees).

The U.S. Department of Education (ED), Federal Student Aid (FSA) is responsible for, among other things, collecting defaulted student loans, a portfolio currently comprised of approximately 9.2 million debtors and worth $217 billion.

The purpose of this PWS is to outline requirements needed for BFS to provide Cross-Servicing services on behalf of ED for student loan debts in a defaulted status.

2. DEFINITIONS

2.1. ACCOUNT or DEBT is a delinquent and defaulted student loan debt owed to ED that BFS has referred to the Contractor for collection services under this Task Order (TO). The terms “account” and “debt” are used interchangeably.

2.2. ACCOUNT REFERRAL BONUS is a percentage calculated by BFS to determine the dollar amount of accounts to be distributed to the Contractor and other default resolution agents, as further defined in Section 9.2, Subsequent Distributions.

2.3. ADMINISTRATIVE RESOLUTION (AR) is a determination made by the Contractor pursuant to Section 13.17, Administrative Resolutions, that the debt should no longer be collected within Cross-Servicing because of the death of the debtor, a bankruptcy impacting the collection of the debt, or another reason as further defined in this PWS in Section 13.17 or in the Default Resolution Agent Manual. BFS must agree with the Contractor’s AR determination before the debt is recalled from the Contractor.

2.4. ADMINISTRATIVE WAGE GARNISHMENT (AWG) refers to a process whereby an employer withholds up to 15 percent of an employee’s disposable wages and pays those amounts to the employee’s creditor pursuant to an order issued by a federal agency. For purposes of this TO, AWG is conducted pursuant to 31 U.S.C. § 3720D, 20 U.S.C. § 1095a, 31 CFR 285.11, and 34 CFR part 34.

2.5. AVERAGE CURRENT INVENTORY BALANCE (ACIB$) is the average total dollar amount that the Contractor is responsible for collecting during the Performance Period. Approximately once a week, BFS will record the dollar amount and number of accounts in the Contractor’s portfolio for the purpose of calculating the ACIB$. Outlier Debts are not included in the ACIB$.

Debts that the Contractor returns prior to the end of the account Retention Period with the recommendation to continue collection efforts are included in the ACIB$ until the account Retention Period in effect at the time the Contractor returned the debt expires.

2.6. BFS FEES are the fees that Creditor Agencies pay to BFS under 31 U.S.C. § 3711(g)(6) for debt collection services, which can change from time to time, at the discretion of BFS.

2.7 COMMISSION FEE is a percentage of the Net Collections paid to the Contractor, as further defined in Section 7, Compensation.

2.8. CONSOLIDATION is a method for a debtor to get out of default by paying off one or more student loan debts with a new consolidation loan.

2.9. CONTRACTOR is a default resolution agent and is a party to this TO.

2.10. CREDITOR AGENCY is the originating Federal agency that referred a debt to BFS’s Cross-

Servicing program. For purposes of the TO, the Creditor Agency is ED, including FSA, or its successors or assigns.

2.11. CROSS-SERVICING PROGRAM is the program through which BFS collects delinquent federal nontax debts on behalf of Creditor Agencies pursuant to 31 U.S.C. § 3711(g).

2.12. CROSS-SERVICING SYSTEM is the Federal Information Security Modernization Act

(FISMA)1 name for BFS’s debt management system, and it has also been known as Artiva, FedDebt, or Cross-Servicing Next Generation (CSNG). It is the system that BFS uses to administer its Cross-Servicing program.

2.13 DEFAULT RESOLUTION AGENT includes the Contractor and any other entity now or in the future providing debt collection services under this TO.

2.14. DEFAULT RESOLUTION AGENT OPERATIONS AND PROCEDURES MANUAL

(DEFAULT RESOLUTON AGENT MANUAL) refers to the manual issued and maintained by BFS and updated from time-to-time regarding how default resolution agents must service BFS accounts. BFS will provide the Default Resolution Agent Manual to the Contractor and any other default resolution agents after award and prior to the first distribution of accounts, and may update it periodically.

2.15. DIRECT LOAN PROGRAM refers to the William D. Ford Federal Direct Loan program, which is a federal student loan program under which individuals borrow directly from ED. Direct Loans include Direct Subsidized Loans, Direct Unsubsidized Loans (including those converted from TEACH Grants), Direct PLUS Loans, and Direct Consolidation Loans.

1 FISMA requires federal agencies to implement a mandatory set of processes and system controls designed to ensure the confidentiality, integrity, and availability of system-related information. It defines a comprehensive framework to protect government information, operations, and assets against threats.

Signed into law in 2002 and updated in 2014, FISMA requires that federal systems meet a set level of security requirements (also known as “controls”).

2.16. EARNED FEE REPORT is a monthly report generated by the Cross-Servicing System that is used for invoicing. It details all payments, reversals, and adjustment transactions processed each month, and is used to calculate Commission Fees.

2.17. FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM was a federal student loan program through which ED worked with private lenders to provide student loans that were guaranteed by guarantee agencies and reinsured by ED. Since July 1, 2010, no new student loans have been made under the FFEL program.

2.18. FEDERAL PERKINS LOAN PROGRAM was a program overseen by ED whereby the loans were initially managed by schools, with ED responsible for collection and management of defaulted loans. The authority for schools to make new Federal Perkins Loans ended on September 30, 2017.

2.19. NATIONAL DIRECTORY OF NEW HIRES (NDNH) INFORMATION means information provided by the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Child Support Enforcement, to BFS containing new hire and quarterly wage information supplied by state and federal agencies pursuant to 42 U.S.C. §§ 653(i)(1) and 653a(g)(2)(A).

2.20. NET BACK RECOVERY PERCENTAGE (NBR%) is the percentage of Net Collections the

Contractor has collected during the Performance Period divided by the Contractor’s ACIB$ (i.e., Net Collections / ACIB$ = NBR%). For purposes of the NBR% calculation, Net Collections excludes amounts collected on Outlier Debts.

2.21. NET COLLECTIONS are the amounts collected by the Contractor under this TO, less the costs added to the debt as a result of BFS Fees.

2.22. OUTLIER DEBT is a debt with an adjusted debt balance greater than or equal to $50,000, or such other amount as BFS may, in its sole discretion, designate in the Default Resolution Agent Manual. For purposes of this definition, the “adjusted debt balance” is the debt balance at the time a debt is referred to the Contractor by BFS, and includes principal, interest, penalties, and administrative costs.

2.23. PERFORMANCE PERIOD is a period of time determined by BFS, normally three months, after which BFS evaluates the Contractor’s performance.

2.24. PERFORMANCE WORK STATEMENT (PWS) is a statement of work for performance-based acquisitions that describes the required results in clear, specific, and objective terms with measurable outcomes.

2.25. REHABILITATION is a method for a debtor to get an eligible loan out of default by making nine consecutive, on-time payments within 10 months under a rehabilitation agreement.

2.26. REPAYMENT AGREEMENT LETTER is a BFS-approved letter to document a repayment option negotiated with the debtor, as specified in Section 13.4, Collection Letters.

2.27. RETENTION PERIOD means the period of time the Contractor will service an account, which is generally 270 days but can be for a shorter or longer period, as further specified in Section 9.8, Time of Servicing; Other Collection Activity, Section 9.9, Extended Retention Period, Section 10.1, Unilateral Right to Recall, and Section 22, Task Order Expiration and Close Out of Accounts.

2.28. STATE means the several States of the United States and also includes the District of Columbia, American Samoa, Guam, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and the Commonwealth of Puerto Rico.

2.29. STUDENT LOAN DEBT is a debt that has arisen under the FFEL program, the Direct Loan program, or the Federal Perkins Loan program.

2.30. TASK ORDER (TO) sets forth the expectations, parameters, and requirements for the requested services and includes the PWS, the award documents, and all attachments/exhibits hereto.

3. GENERAL SCOPE

The purpose of this effort is to enlist the services of default resolution agents to support the provision of Cross-Servicing services for ED. BFS requires the services of default resolution agents to recover defaulted student loan debts and to resolve debts that are not appropriate for collection. BFS may also require default resolution agent services for pilot efforts in response to emerging priorities related to ED debts. The Contractor must perform the duties outlined in this PWS and any other documents incorporated into the TO. BFS will compensate the Contractor on a fee-for-service basis in a competitive environment with other default resolution agents. Accounts will be referred electronically to the Contractor. For default resolution agent services related to student loan debts in a defaulted status, accounts will have been in a delinquent status for at least 270 days and may be over 10 years delinquent.

4. ACQUISITION TYPE

The Government intends to award multiple fee-for-service Task Orders.

5. PERIOD OF PERFORMANCE

The Period of Performance will be one (1) 12-month base period and four (4) 12-month option periods.

6. LAWS, REGULATIONS, AND STANDARDS GOVERNING COLLECTION ACTIVITY

6.1. The Contractor must comply with all applicable federal, state, and local statutes, regulations, and other laws. In addition, the Contractor must comply with any special policies, rules, court orders, and procedures that apply to student loan programs, whether now in existence or as may be issued in the future. BFS will monitor the Contractor’s collection activities. Failure to comply with applicable laws, rules, and policies will be considered a breach of contract. A nonexclusive list of federal statutes and regulations governing the Contractor’s collection activities include:2

• Title IV of the Higher Education Act of 1965, as amended (20 U.S.C. §§ 1070 – 1099d) and implementing regulations (34 CFR Parts 668, 674, 682, 685, 690, and 691);

• The Bankruptcy Code, as amended (11 U.S.C. §§ 101 et seq);

• ED Debt Collection Regulations (including 34 CFR Parts 30, 31, 34, 284, 682, and 685);

• Federal Claims Collection Act of 1966 (Pub. Law No. 89-508), as amended by the Debt

Collection Act of 1982 (Pub. Law No. 97-365), as further amended by the Debt Collection Improvement Act of 1996 (Pub. Law No. 104-134), codified in part at 31 U.S.C. §§ 3701, 3711-3718, 3720A-3720E, and 5 U.S.C. § 5514, describing the Government’s administrative debt collection authorities and responsibilities;

2 The referenced laws and explanations are provided only as a reference point. The Contractor is responsible for identifying, understanding, and complying with all applicable law.

• Fair Debt Collection Practices Act (Pub. Law No. 95-109), as amended, 15 U.S.C. §§ 1692 et seq. and Regulation F, 12 C.F.R. Part 1006, which regulate the debt collection practices of private collection agencies;

• Fair Credit Reporting Act of 1970 (FCRA) (Pub. Law No. 91-508), 15 U.S.C. §§ 1681 et seq., regulates the collection, dissemination, and use of consumer information, including consumer credit information;

• Telephone Consumer Protection Act of 1991 (TCPA) (Pub. Law No. 102-243), as amended, 47 U.S.C § 227, restricts the use of automated telephone equipment;

• Servicemembers Civil Relief Act (SCRA) (Pub. Law No. 108-189), as amended, 50 U.S.C App. §§ 501 et seq., provides certain protections to members of the military and their dependents;

• Electronic Funds Transfer Act of 1978 (EFTA) (Pub. Law No. 95-630), as amended, 15 U.S.C. §§ 1693 et seq., and Regulation E, 12 C.F.R. Part 1005, protects individual consumers engaging in electronic fund transfers and remittance transfers and sets out the requirements pertaining to such transfers;

• Privacy Act of 1974 (Pub. Law No. 93-579), as amended, 5 U.S.C. § 552a, restricts the disclosure of personal information about individuals and governs the handling of such information by the Government and its default resolution agents;

• Health Insurance Portability and Accountability Act of 1996 (HIPAA) (Pub. Law No.

104191), and Standards for Privacy of Individually Identifiable Health Information at 45 C.F.R. Parts 160 and 164, Subparts A and E, governs the handling of protected health information;

• Federal Parent Locater Service (Pub. Law No. 108-447, Div. H, Title VI, § 643), 42 U.S.C.

§ 653(j)(9), governs the handling of information disclosed from the NDNH;

• Federal Claims Collection Standards, 31 C.F.R. Parts 900-904, govern the administrative procedures with respect to collection of debts owed to the United States, including the criteria for accepting installment payments and compromise agreements;

• Treasury Financial Manual, Volume I, Part 3, Receivable and Delinquent Debt Management, and Volume I, Part 5, Chapter 7000, Credit and Debit Card Collection Transactions, as amended, sets out responsibilities applicable to the Contractor with respect to collection of delinquent nontax debts and the restrictions associated with collecting obligations via credit or debit card.

6.2. The Contractor must be familiar with other applicable federal laws and guidance, such as:

• Federal Debt Collection Procedures Act (Pub. Law No.101-167), 28 U.S.C. §§ 3001 et seq., governs the enforced collection of debts through the litigation process (the Contractor is not authorized to handle any litigation on behalf of the Government);

• Laws related to the Treasury Offset Program, specifically 31 U.S.C. § 3716 (administrative offset), 26 U.S.C. § 6402 and 31 U.S.C. § 3720A (tax refund offset), 5 U.S.C. § 5514 (salary offset), and related regulations in 31 C.F.R. Part 285, subpart A;

• Managing Federal Receivables, Chapter 6, Delinquent Debt Collection, and Appendixes 4 to 8, provides federal agencies with a general overview of the standards, guidelines, and procedures related to the collection of delinquent debts owed to the United States.

6.3. The Contractor must have all required licenses, bonding, and insurance to provide debt collection services in all States and all applicable localities.

6.4. The Contractor must comply with the laws of the jurisdiction where the debtor resides (including federal, state, and local laws), except insofar as federal law supersedes these requirements.

6.5. The Contractor must indemnify and hold the Government harmless from any and all third-party liability, loss, damages, claims, and/or other expenses, including but not limited to attorney's fees (whether incurred before or after litigation has commenced) and court costs, arising under or related to the TO. The Contractor is not authorized to represent the interests of the United States in court or to otherwise provide legal services for or on behalf of the United States. Under no circumstances will the Government be liable for any wrongful act by the Contractor, its employees, its agents, or its subcontractors.

6.6. The Contractor must have access to and comply with the most current versions of applicable laws and regulations.

6.7. The Contractor must comply with the Default Resolution Agent Manual, as it may be amended by BFS from time to time, and any subsequent Technical Bulletins3 issued by BFS.

7. COMPENSATION

7.1. GENERALLY. The pricing provisions contained in this PWS control over any conflicting provisions contained in the corresponding GSA schedule contract or attachments thereto. BFS will pay Commission Fees directly to the Contractor.

7.2. PRICING SCHEDULE. Except as provided below, the Commission Fee will be XX percent of Net Collections. The Commission Fee will be the same for the Contractor and any other default resolution agent(s). The Commission Fees will apply to all Net Collections for defaulted student debt collection activities, including AWG and voluntary payments (including payments under rehabilitation payment agreements, consolidation agreements, and other payment agreements).

BFS will not provide additional monetary compensation to the Contractor for ARs, rehabilitations, or consolidations. The Commission Fee will be capped for any single collection in excess of $100,000. If a single collection is in excess of $100,000, the Commission Fee will be adjusted to pay the Contractor its Commission Fee as if it made a $100,000 collection, rather than the full amount of the Net Collection. The Contractor may not solicit multiple payments from the debtor to avoid the Commission Fee threshold.

7.3 ADJUSTMENTS TO PRICING SCHEDULE. The Commission Fees set forth in Section 7.2, Pricing Schedule, will apply to the base period of the TO. BFS reserves the right to change the Pricing Schedule and/or adjust the fee structure at each option period. Any such changes would be negotiated with the Contractor and any other default resolution agent(s).

7.4 PILOTS. During the term of the TO, BFS may request that the Contractor and other default resolution agents participate in one or more pilots wherein BFS may change components of the TO, such as, but not limited to, the Pricing Schedule and/or debt distribution methodology, whether for all student loan debts or for a defined pool of student loan debts. BFS may use pilots to, for example, expand its knowledge of the student loan portfolio and/or the Cross-Servicing program more generally; and/or test new programs, collection mechanisms, or collection strategies. Distributions of debts for default resolution agents participating in this pilot may be based on criteria other than the default resolution agent’s Net Collections and NBR%. Prior to beginning any such pilot, BFS will document the requirements of the pilot and ensure mutual understanding of those requirements, including duration of the pilot and the applicable compensation.

7.5 CALCULATION. Except as set forth below, BFS will calculate Commission Fees on any payment received on an account by the Government, beginning on the day the account is transferred to the Contractor and ending on the day the account is recalled by or returned to the Government.

The Commission Fee is automatically calculated by the Cross-Servicing System. From time to time, the Cross-Servicing System may apply slight adjustments to this calculation when necessary to implement adjustments to the balances of debts, BFS Fees, or other similar changes. In such circumstances, BFS will endeavor to adhere as closely as feasible to this

3 Fiscal Service may periodically issue Technical Bulletins containing technical direction, policy changes, and/or other program updates and requirements.

calculation, but may make adjustments to avoid costly system enhancements, resulting in minor increases or decreases to the Contractor’s Commission Fee.

7.6. EXCLUSIONS. The Contractor will not be paid a Commission Fee for the following:

• Collections received after the account has been recalled or returned;

• Unidentified payments, i.e., payments that cannot be posted to a debtor's account;

• Collections in excess of a debtor's balance, resulting in overpayment of the debt, or made in violation of the bankruptcy…