Private Counsel Debt Collection - Middle District of Pennsylvania

The Department of Justice Justice Management Division is seeking private counsel debt collection services for the Middle District of Pennsylvania through solicitation 15JPSS25R00000069. The contract requires law firms or solo practitioners to collect delinquent federal debts through litigation, negotiation, settlement, and enforcement actions, including representation in bankruptcy proceedings and foreclosures. Attorneys must be admitted to both the state bar and federal district court, and proposals must demonstrate extensive debt collection experience, administrative capabilities for case management, and high-quality legal writing with no more than five grammatical errors in writing samples. The government will evaluate proposals using a two-phase approach focusing on technical capabilities, past performance from the previous three years, and pricing structures that include contingency fees for unsecured debt collection and flat fees for foreclosures and related actions. Proposals are due September 12, 2025 at 4:30 p.m. ET, with an anticipated contract award date of December 1, 2025.

This opportunity is designated as a Total Small Business set-aside, with the current incumbent being KML Law Group PC under contract 15JPSS20C00000296. The current case portfolio includes 79 cases totaling $11,158,328.47 in debt, comprising 14% secured and 82% unsecured debts, primarily from federal loan programs involving private consumers. The contract will run for five years from December 1, 2025 to November 30, 2030, with the government potentially awarding up to two contracts to fulfill the requirements and allowing for six-month extension options. The Department of Justice has indicated satisfaction with the current contractor's performance and expects most accounts will require litigation to obtain judgments and liens. Services will be performed primarily in the Middle District of Pennsylvania, with place of performance listed as Washington, DC, USA.