of the United States
United States Government Accountability Office
Washington, DC 20548
DOCUMENT FOR PUBLIC RELEASE
The decision issued on the date below was subject to a
GAO Protective Order. This redacted version has been
approved for public release.
Matter of: Universal Fidelity Corporation
February 7, 2005
O. Kevin Vincent, Esq., and Robert J. Wagman, Jr., Esq., Baker Botts, for the
Jeffrey C. Morhardt, Esq., and Jose Otero, Esq., Department of Education, for the
Henry J. Gorczycki, Esq., and Guy R. Pietrovito, Esq., Office of the General Counsel,
GAO, participated in the preparation of the decision.
Protest challenging agency’s past performance evaluation is denied, where the
source selection authority considered the quality and relevance of vendors’ past
performance information consistent with the terms of the solicitation.
Universal Fidelity Corporation (UFC) protests the rejection of its proposal under
“Request for Task Order Proposals for Private Collection Agency (PCA) 2004” issued
by the Department of Education for proposals for collection services related to
defaulted federal student loans.
We deny the protest.
Education performs collection and administrative resolution activities with respect
to defaulted federal student loans and, since 1981, has contracted with PCAs for
these services. Statement of Work (SOW) at 1. Specifically, the agency contracted
with a number of PCAs, initially assigning each the same number of accounts.
Thereafter, the agency periodically evaluated the performance of each PCA under
three criteria: dollars collected, accounts serviced, and administrative resolutions.
The performance of the PCAs was ranked, and bonus payments and additional
account assignments were based on each PCA’s relative performance. Solicitation
at 14; SOW at 4. This performance evaluation process is known as the “Competitive