Collection Agencies
Size Standard: $22 million
NAICS code 561440 covers Collection Agencies, which includes establishments primarily engaged in collecting payments for claims and remitting payments collected to their clients. Government agencies at all levels use collection services to recover debts owed to the government.
The federal government is owed billions in delinquent debt from taxes, student loans, benefit overpayments, and other obligations. Collection agencies help recover these debts while following strict federal guidelines and consumer protection requirements. The Treasury Department's Cross-Servicing Program is the largest federal debt collection initiative.
Major buyers include the Department of Education for student loan collections, IRS for tax debt, Treasury's Bureau of the Fiscal Service for general debt, and various agencies with benefit recovery programs. State governments also use collection services for tax debt and court-ordered payments.
Contractors under NAICS 561440 must comply with the Fair Debt Collection Practices Act (FDCPA), Privacy Act requirements, and agency-specific guidelines. Government collection contracts often emphasize rehabilitation and payment plans rather than aggressive collection tactics.
The size standard of $22 million makes this accessible for specialized collection firms. Small businesses with strong compliance programs and experience with government debt types can compete in this regulated market.
- Department of Education
- Internal Revenue Service (IRS)
- Department of the Treasury
- Department of Health and Human Services (HHS)
- Department of Justice (DOJ)
- Student Loan Collection Services
- Tax Debt Recovery
- Benefit Overpayment Recovery
- Court-Ordered Debt Collection
- Cross-Servicing Debt Collection
These certifications can help you compete for set-aside contracts under NAICS 561440:
What types of government debt do collection agencies handle?
Government collection contracts cover student loans, tax debt, benefit overpayments (SNAP, Medicare, SSA), court-ordered fines, and various agency receivables through Treasury cross-servicing.
What is the size standard for NAICS 561440?
The SBA size standard for NAICS 561440 is $22 million in average annual receipts, reflecting the infrastructure and compliance requirements for collection operations.
What regulations govern government debt collection?
Government collection must comply with Fair Debt Collection Practices Act (FDCPA), Privacy Act, agency-specific guidelines, and Treasury Offset Program requirements. Violations can result in contract termination.
How do government collection contracts differ from private sector?
Government contracts emphasize rehabilitation and payment plans over aggressive tactics. Performance is measured on rehabilitation rates and customer service, not just dollars collected. Consumer complaints are scrutinized closely.
What is Treasury Cross-Servicing?
Treasury Cross-Servicing Program is a centralized debt collection service where agencies refer delinquent debts to Treasury for collection. Private collection agencies work under Treasury contracts to support this program.
Businesses below this threshold in average annual receipts qualify as small businesses for set-aside contracts.
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