Collingswood, NJ: Fed Cetera has announced it is seeking small business collection agencies operating primarily from urban or rural communities to respond to a Request for Information (RFI) to compete for new business collecting Federal student loans in 2015 and beyond. Such firms may be selected to work as Federal subcontractors on United States Department of Education (ED) Private Collection Agency (PCA) contracts, which paid PCAs more than $1 billion in collection fees during Federal fiscal year 2014 and has incentives for prime PCAs to subcontract to firms whose principal office is within a Federal HUBZone.
Click here to request a copy of the RFI and to find out if your firm is in a Federal HUBZone.
Federal HUBZones are designated as such based on U.S. census data when an area has statistically proven economic needs, typically within depressed urban or rural communities. The U.S. Small Business Administration (SBA) certifies firms as HUBZone small businesses if they meet all of the eligibility requirements. For starters, the firm must be owned at least 51% by American citizens, with few exceptions. The firm’s principal office must be located with a HUBzone, and more than 35% of the firm’s employees must live in a HUBZone. These requirements are just the beginning of establishing a business as a HUBZone-certified concern.
“We are pleased to invite small businesses to contact us for help determining if they are in a HUBZone and if they may meet the requirements,” said Nick Bernardo of Fed Cetera, continuing, “Because obtaining HUBZone certification can be time consuming, and because there seems to be a fair amount of confusion as to whether various companies can even become certified, we have done this research, and look forward to sharing it with people interested in this designation. It’s not as easy to achieve as commonly believed. Once you start to examine any particular business attempting to become certified, you really need to understand if there are any related businesses, as well as other things, before you can conclude the business has a chance of being certified.”
Subcontractors working on the PCA contract as a result of their relationship with Fed Cetera have historically earned $100,000 to $750,000 per month per subcontract in fees and just under $50 million to date for their efforts on this long-term initiative.
As reported on ED procurement documents posted on www.mygovwatch.com, the procurement for PCAs that began in 2013 places greater emphasis than ever before on the need for PCAs to subcontract accounts to small businesses. A set aside contract awarded to eleven small businesses in late September of last year requires, for the first time, even those small businesses to farm out some of the work to other small businesses.
About Fed Cetera
Fed Cetera helps companies in the collection industry pursue opportunities with the Federal government. Federal PCAs have strong incentives to give a portion of their work to qualified small businesses. Companies working with Fed Cetera to pursue subcontracting opportunities in 2015 will surpass $50,000,000 in total billings for their work provided as subcontractors to ED PCAs. Click here to learn more. http://www.netgain4results.com/net-gain-marketing/b2g/federal-subcontracting