Private Counsel Debt Collection - Central District of California

The Department of Justice Justice Management Division is soliciting private legal counsel to provide comprehensive debt collection services for the Central District of California through a five-year contract beginning November 1, 2025. The solicitation seeks up to three law firms or solo practitioners to collect delinquent federal debts through negotiation, litigation, bankruptcy proceedings, foreclosure actions, and related legal services across various federal agency programs including Education, HUD, Veterans Affairs, and the Small Business Administration. Proposing attorneys must demonstrate current bar admission and good standing, extensive debt collection experience representing the U.S. as a plaintiff in federal court litigation, and robust administrative capabilities including integration with the Department's Consolidated Debt Collection System (CDCS). The government will evaluate proposals using a two-phase process based on technical factors (debt collection experience, administrative attributes, writing quality), past performance, and price, with non-price factors weighted as significantly more important than price. The proposal submission deadline has been extended to October 24, 2025 at 4:30 PM ET, with all submissions required electronically to christina.murray@usdoj.gov.

This procurement is designated as a total small business set-aside under NAICS code 541110 (Offices of Lawyers) with a size standard of $15.5 million. The contract involves collecting 3,283 existing cases with a total value of $167,096,435.63, all currently classified as unsecured debt. Compensation will be structured through a complex pricing model including contingency fees, flat fees for specific actions like foreclosures and evictions, and hourly rates for attorneys and paralegals performing ancillary litigation activities. The five-year base contract period includes potential six-month extensions, with funds incrementally obligated based on workload requirements. Services will be performed primarily for the Central District of California, with the place of performance listed as Washington, DC, and contractors must comply with extensive security requirements including background investigations and adherence to strict confidentiality agreements and cybersecurity protocols.