PR - Net Gain Marketing Launches ED Collection Subcontracting Program

Net Gain Marketing announced today that is has launched services to help current and aspiring U.S. Department of Education (ED) vendors find and qualify one another for the purposes of establishing teaming and subcontracting relationships.

ED has previously announced plans to enter into new contracts with Private Collection Agencies (PCAs) in 2008, four years after hiring the current pool of large and small vendors. Next year’s procurement would mark the third time ED has made use of the U.S. General Services Administration’s (GSA) Multiple Awards Schedules (MAS) program to select vendors from those pre-approved by GSA as qualified to collect debt on a nationwide basis.

With each successive re-issuance of ED’s request for task order proposal related to the contract, the pool of potentially qualified companies has increased. Since ED first used the MAS program in 2000, dozens of new vendors have been added to the GSA schedule for debt collection, Federally-designated “small” vendors have grown into large companies, and newer, regional student loan collection agencies have continued to emerge as potential newcomers to the contract. With close to 100 vendors on GSA schedule and several more on the way between now and the slated start of ED’s procurement in January, the number of potentially qualified ED contractors should make for an extremely competitive process in 2008.

As various companies seek to strengthen their respective competitive position, there are multiple ways they can work with one another to meet Federal requirements and enhance their chances of a contract award. Large and small vendors can form teaming arrangements to attempt to compete for a contract award using this mechanism, which in many respects is similar to a joint venture. Small vendors can become subcontractors to large vendors currently working for ED, providing small vendors with experience and the potential to work with large vendors in other ways in the future.

NGM will help clients decide which ways of partnering with others may be advisable and will create a profile for the kind of company that should be targeted for teaming or subcontracting, making necessary introductions and acting as a liaison for both parties. The program will enable vendors to reach beyond their existing industry contacts and entertain additional alternatives to competing for the ED contract and other Federal contracts in the future.

NGM has also indicated its program is open to other consultants in the industry who have specific expertise in the student loan collections niche or who have contacts among GSA vendors.