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Wednesday, November 22, 2017

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Federal Subcontracting

$700,000,000: Get Your Piece of the Pie ... Right Here!

Since 2008, Fed Cetera, a sister company of Net Gain Marketing, has helped qualified companies find and execute subcontractor agreements related to Federal government contracts, notably the U.S. Department of Education's (ED) Private Collection Agency (PCA) contract. 

With annual revenues paid to vendors expected to top $700,000,000 by 2015, this contract is widely considered the largest contract (government or otherwise) in the collection industry.  And just about every PCA that has recently hired a subcontractor for this contract has engaged us to tap into our network of qualified companies.

Why Should I Want to be a Federal Subcontractor?

Here are a few reasons why you should want to become a Federal subcontractor:

  • The Affordable Care Act of 2009 included provisions dramatically increasing the size of the ED PCA contract, with long-term ramifications.

  • Federal PCAs have strong incentives to give 10% of their work to qualified small businesses.   Recent scorecards indicate all PCAs reached all of their incentive goals related to subcontracting.

  • If government estimates are correct, then fees paid to such small business should increase from $50,000,000 in 2012 to $70,000,000 per year by 2015 (source: MyGovWatch.com).  

  • If the average PCA has two subcontractors, this means the average subcontractor may be billing their prime PCA more than $2,000,000 per year in fees by then—and some even more.

  • Reports from the Federal Government support these estimates.

Why Should I Want to Work with Fed Cetera?
Here are a few reasons why you should want to work with Fed Cetera:

  • We know the contractual terms and pricing of nearly every significant Federal subcontract that has been entered into over the past several years.   And while these terms are protected by non-disclosure agreements, we can make sure you get a fair deal.

  • We know, at an individual company level, not only who the decision makers are, but also how those PCAs have interacted with their subcontractors in the past.  We know who treats their subcontractors fairly.

  • Our knowledge of these issues ensures we will pay our own way; if there is interest in your company, we can deliver you terms that cover our own cost.

  • We know what the revenue curve looks like and will help you decide if a specific deal is right for you.

  • We have access to people who you can recruit to manage the contract.

  • We have access to people who want to help you implement the contract financially.

  • We know what triggers will cause each PCA to need an additional or replacement subcontractor.

  • Why be one of many companies individually marketing their company to prime PCAs when you can be in a network that makes the decision makers’ jobs really easy?

Prime contractors do not pay for our services, which works much like a real estate brokerage. Subcontractors pay a flat 2.5 cents on the dollar for any revenue earned as a result of any relationship the subcontractor gains by working through us.  This is not 2.5% of placements or collections; it’s payable against top-line revenue you earn for services rendered.


Yes, I want my piece of the Federal pie.
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About Fed Cetera
Prior to January 1, 2013, this service line had been an offering of Net Gain Marketing.  However, on that date, Nick Bernardo and Leah Wilson Conger formed Fed Cetera, LLC, for the sole purpose of helping companies in the collection industry pursue opportunities with the Federal government.  As a result, all existing contracts were assigned to the new entity, a New Jersey corporation operating at the same address as NGM.  Both persons cited above are members of the LLC.  Contact us for more information.