Court Denies PCAs’ Motion to Prevent Account Recall by Department of Education

Last Tuesday the Court of Federal Claims (COFC or the Court) heard arguments in the case of FMS Investment Corp., (FMS) et al., v. United States (the Department of Education or ED). The plaintiffs are protesting ED’s re-cancellation of Solicitation No. ED-FSA-16-R-0009 for Large Business Debt Collection Services. They claim the Department of Education had no rational justification for cancelling the procurement.

The April 16th hearing was related to a motion for preliminary injunction to prevent ED from recalling all remaining accounts from four large private collection agencies (PCAs) that still hold Award Term Extensions (ATEs) from a prior contract that ended in 2015.

The Solicitation to award new large PCA contracts has been under protest for nearly five years. For a condensed background on the case, read this article and then this article.

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