Collingswood, NJ: Net Gain Marketing, Inc. (NGM) has announced it is now recruiting collection agencies with revenues averaging $7-14M per year for the period 2009-2011 to act as potential future subcontractors on the United States Department of Education (ED) Private Collection Agency (PCA) contract. The ED PCA contract includes incentives for contractors to give up to 10% of placements to small business subcontractors. Estimates show these incentives could result in revenues of more than $70,000,000 per year to all ED small business subcontractors by 2015 based on known estimates of what prime ED contractors are expected to bill ED per year by then. NGM is holding a teleseminar to provide an overview of the opportunity on May 17, 2012, at 11:30 EST.
Interested parties should click here to sign up.
The U.S. Small Business Administration (SBA) is expected to increase the small business size standard for collection agencies from $7 million to $14 million at some point in the near future. A collection agency determines its size by averaging revenue from the last three completed fiscal years and, if below the threshold, self-certifying its status as small on the Central Contractor Registration website at www.ccr.gov. Up to this point, only collection agencies with revenue below $7M based on this formula were considered small businesses.
In 2009, Net Gain Marketing, Inc. (NGM) and Consolidated Business Services (CBS) announced the formation of a strategic alliance enabling the firms to work together to help small businesses understand and access opportunities to work as subcontractors for large collection agencies. Small businesses participating in the program benefit by hearing about more opportunities on a timely basis and receiving expert consulting. Small businesses pay a nominal percentage of resulting transactions, typically offset by improved terms NGM/CBS helps the small business obtain. This service is provided at no cost to large businesses, which, by participating, benefit by tapping into a larger network more pre-qualified choices for potential subcontractors. Instead of a large business responding to every phone call and email from thousands of potential subcontractors, this responsibility can now be offloaded, saving countless hours wasted with small agencies not ready be a Federal subcontractor.
“Nick and Leah saved me a ton of time I would have otherwise spent trying to find qualified subcontractors,” said John Kacinas, Senior Vice President, ED Contract Administrator, at Enterprise Recovery Systems, continuing, “and I can count on them to help us know what all our options are so we can best know how to handle this important part of the ED contract.”
Since 2009, NGM/CBS has had tremendous success in helping small businesses get a piece of the ED contract. The alliance has helped set up nearly every significant subcontracting relationship related to the ED contract in that timeframe.
Timothy Sullivan, Esq., president of HS Financial Group, is a recent newcomer to the select group of those now working as an ED PCA subcontractor. He stated, “NGM and CBS were essential to our company in securing an ED PCA subcontract. They have delivered on their contractual promises at every step in the process. They have earned our respect as trusted, knowledgeable, first-rate business advisors.”
With the threshold of what constitutes a small business expected to increase to $14M, the pool of small businesses that ED PCAs can use will increase, as will the level of competition. NGM/CBS is holding the teleseminar to provide a streamlined way for interested parties to learn more about this opportunity. “We welcome companies of any size below the new threshold to sign up for the teleseminar to learn more,” said Nick Bernardo, president of NGM, continuing, “However we are targeting larger companies at this point to add to the dozens of pre-qualified companies that ED PCAs can already access through the network. We expect to have more than 100 lined up by year end.”
About Net Gain Marketing
NGM is a full-service marketing agency operating primarily within the call center and credit and collection industries, with core competencies in sales and marketing planning, communications consulting, public relations, RFP/RFI response, government contracting consulting, web design, and email marketing. Learn more at www.netgain4results.com.
About Consolidated Business Services
CBS is an independent consulting company operating exclusively within the student loan collection market, with proficiencies in sales, marketing, operational support, strategic consulting, research and development, proposal development, GSA consulting, work flow and skip trace strategies, and the development of training manuals, standard operating procedures, quality control plans, newsletters, and collection notices. For more information see http://www.linkedin.com/pub/leah-wilson-conger/8/b45/982.