STATE OF COLORADO
RFP-13-ACA-021-A-JW
Licensed Debt Collection
RFP-13-ACA-021-A-JW
Licensed Debt Collection
State of Colorado
Department of Personnel & Administration (DPA), Executive
Office
Department of Central Services
REQUEST FOR PROPOSAL (RFP) SUBMITTAL COVER SHEET
Publish Date:
June 5, 2013
RFP Number:
RFP-13-ACA-021-A-JW
Subject to the specifications, terms and conditions herein
stipulated, attached, or linked, proposals will be accepted at the
address below prior to the date and time listed. Offers are now
being accepted for:
Licensed Debt Collection
Submit All Proposals to:
Department of Personnel & Administration, Executive
Office
John P. Weber, CPPO, C.P.M.
633 17th Street, Suite 1600
Denver, CO 80202
Purchasing Agent and Telephone No.:
John P. Weber, CPPO, C.P.M.
303-866-6484
Deadline for Submission of Proposal:
July, 5, 2013
IMPORTANT: This completed and signed RFP Submittal Cover Sheet
MUST accompany proposals submitted. Proposals must be delivered
“sealed” with RFP Number, and Opening Date and Time on outside of
envelope. Be advised that telegraphic or electronic offers cannot
be accepted.
# of Copies to be Submitted:
One (1) original plus four (4) hard copies required and 1
electronic copy on flash drive or CD only
IDENTIFICATION OF OFFEROR(S) (Legibly Complete the Following
Information):
OFFEROR(S)/COMPANY NAME:
STREET ADDRESS:
CITY/STATE/ZIP:
PHONE:
FAX:
E-MAIL ADDRESS:
WEBSITE ADDRESS:
AUTHORIZED SIGNATURE:
_________________________________________________
(one copy must include an original signature)
PRINTED NAME AND TITLE:
FEIN OR BIDS SUBSCRIBER NUMBER AS REGISTERED ON BIDS:
CONTACT NAME FOR CLARIFICATIONS:
PHONE:
MODIFICATIONS RECEIVED:
PAYMENT TERMS (Not Less Than NET 45):
F.O.B.: Destination, Prepaid & Allowed LEAD TIME/DELIVERY
ARO: See Contract Requirements
In submitting this RFP Submittal Cover Sheet, you are verifying
receipt of the original BIDS notice and attachments. Where
modifications are issued, you need to additionally acknowledge
receipt of the number of modifications above where indicated.
Offeror is responsible for reading the entire RFP document before
submitting a proposal.
RETURN THIS PAGE WITH YOUR RESPONSE
RFP TABLE OF CONTENTS
Page
Section 1.0
Supplemental Solicitation Terms and Schedule of Activities
3
Section 2.0
Background and Scope of Work
9
Section 3.0
Statement of Work and Proposal Requirements
13
Section 4.0
Offeror Response Format and Instructions
26
Section 5.0
Proposal Evaluations and Award
29
Exhibits and Attachments (attached as separate files)
Exhibit A
Exhibit B
Exhibit C
Exhibit A
Exhibit B
Guide for Contractor Participation in the E-Verify or the
Department Program
Notice of Participation
Contractor Affirmation
State Model Contract
HIPAA Business Associate Addendum
The State respects the environment and desires to do business
with vendors who share this concern. Accordingly, the vendor who is
awarded this solicitation agrees that, wherever required, all
reports, catalogs, correspondence, or other submittals will be made
on recycled paper and with copying on both sides of the pages.
(Recycled paper meaning not less than 50% of the total weight
consisting of secondary and post-consumer waste, and not less than
10% total weight consisting of post-consumer waste.)
Website & Solicitation Page, Attachments and Terms &
Conditions
https://www.gssa.state.co.us/vensols
1. BIDS Notice (printed from BIDS website) and list of all
attached files.2. Solicitation Instructions and Terms and
Conditions -Standard
(See document link in BIDS Notice).
Section 1.0Supplemental Solicitation Terms and Schedule of
Activities
1.1.1Bid Information and Distribution System (BIDS) and
Registration
This solicitation is published using the Colorado Bid
Information and Distribution System (BIDS). Offeror must be
registered on BIDS in order to download solicitation documents and
information and to be considered responsive at the time of proposal
submission. BIDS and its registration information may be linked
through the State Purchasing Office link at
https://www.gssa.state.co.us.
1.1.2Structure of this Request for Proposal
The State of Colorado Solicitation Instructions and Terms and
Conditions linked through the BIDS Solicitation Page govern except
as modified or supplemented in these instructions in addition to
the information on the BIDS Solicitation Page used on the BIDS
website to announce this solicitation.
This RFP describes the minimum content and general format for
responding to our RFP. Your reply shall be submitted on the forms
and in the formats requested (or equivalent) with all questions
answered in detail. Elaborate format and binders are neither
necessary nor desired. Legibility, clarity, and coherence are more
important. Your proposal should present information in the order
requested in the RFP. It is mandatory that the Proposer use the
same numbering format as used in this RFP so that responses
correlate to the same paragraph in the RFP requirement. This will
make your proposal more "evaluator friendly" to the evaluation team
conducting the evaluation of the proposals.
Whenever a question is asked in the RFP subparagraphs or a
requirement stated by the use of the word "shall", the Proposer is
expected to answer these as fully and completely as possible.
Failure to do so may deem your proposal as "Nonresponsive" to that
requirement.
Responsiveness will be measured by the Proposer's response to
the requirements in each paragraph to this RFP. Merely "parroting"
back the RFP requirements statement in the Proposer's proposal may
deem the response as nonresponsive. The Proposer's response must
demonstrate an understanding of the requirements. This might be
done by providing what was asked for, or citing how the Proposer
has achieved the requirements in its normal business practices
(such as submitting samples of procedures, or award letters).
1.1.4Official Means of Communication
During the solicitation process for this RFP, all official
communication with Offeror will be via notices on Colorado’s BIDS
system. Notices may include any modifications to administrative or
performance requirements, answers to inquiries received,
clarifications to requirements, and the announcement of the
apparent winning Offeror. It is incumbent upon Offeror to carefully
and regularly monitor BIDS for any such notices.
1.1.5Vendor Registration (Offeror Registration)
Offeror registration (Colorado BIDS Registration) MUST be
current prior to the award. Offeror registration status is based on
the Offeror’s Federal Employer Tax ID Number (FEIN), as provided by
the Offeror, on the Request for Proposal (RFP) Submittal Cover
Sheet; page 1 of this document. This FEIN shall be the number used
to determine if or if not an Offeror is registered. In order to
maximize competition Proposers must be registered in BIDS prior to
award. Offerors shall be registered in accordance with Section
1.1.1 of this RFP
1.1.6Issuing Office & Sealed Responses
This RFP is issued for the Department of Personnel &
Administration. The agency and contact listed in section 1.1.7 is
the sole point of contact concerning this RFP. All Proposals must
be submitted, "sealed"; i.e. package, envelope, box, etc.
The sealed bid, including cover page complete with original
signature, and all other pages requiring a written response, must
be received no later than the closing date and time at the
department address listed on the RFP cover page, and at that time
publicly opened and bidders identified.
Please mark your sealed bid envelope with the RFP number, date
and time of bid opening. Faxed and telephone bids are not
acceptable. Bidder will assume full responsibility for any costs
related to this bid including express delivery, parcel post,
packing, cartage, insurance, license fee permits, or cost of bonds,
as applicable.
Bidders are advised that no bid responses shall be submitted on
an electronic device with a value over fifty ($50.00) dollars. Any
bid submitted on an electronic device with a value of fifty
($50.00) or more shall be considered as non-responsive. All
non-responsive bids shall be removed from any further award
consideration.
During the solicitation process for this RFP, all official
communication to Bidders will be via notices on Colorado’s BIDS
system. Notices may include any modifications to administrative or
performance requirements, answers to inquiries received,
clarifications to requirements, and the announcement of the
apparent winning bidder. It is incumbent upon Offerors to monitor
BIDS carefully and regularly for any such notices.
1.1.7Inquiries
Any prospective Proposer who believes any requirement of this
RFP, including, but not limited to the RFP process or requirements,
technical specifications or Contract terms and conditions contained
in this RFP unnecessarily restricts or limits competition may
submit a written request for change or protest to the Sole Point of
Contact no later than the Inquiry Deadline date set forth in the
RFP BIDS Notice. Additionally the State encourages perspective
proposers to submit requests to modify or change the specifications
and requirements they feel would be in the best interest of the
State to consider.
Prospective Offerors may also make email or written inquiries
concerning this RFP to obtain clarification of requirements. No
inquiries will be accepted after the date and time indicated in the
Schedule of Activities. The State prefers that all inquiries be
sent by electronic mail (with the RFP#13-ACA-021-A-JW, Licensed
Debt Collector in the subject line).
1.1.7.a Sole Point of Contact
The sole point of contact within the State of Colorado for the
purpose of this RFP is:
Department of Personnel & Administration, Executive
Office
633 17th Street, Suite 1600
Denver, Colorado 80202
Fax: (303) 866-3034
RFP No. 13-ACA-021-A-JW
Address written or fax inquiries to: John P. Weber, CPPO,
C.P.M.
If an email inquiry is submitted, submit the inquiry to John P.
Weber
[email protected]
During the solicitation process, up to and including the signing
of a contract, the sole point of contact for the State is that
person named in section 1.1.7.a. Unless approved in writing by the
Sole Point of Contact, potential Proposers shall not correspond in
any manner with any other State Agency or State employee during the
RFP or Award process. Any Proposer that violates this requirement
and submits a Proposal will be deemed as non-responsible and their
Proposal will be removed from award consideration.
An initial inquiry period is hereby firmly set for all
interested proposers to perform a detailed review of the bid
documents and to submit any written questions relative thereto.
Without exception, all questions MUST be in writing and received by
the close of business on the Inquiry Deadline date set forth in the
RFP BIDS Notice. Additional inquiries shall not be entertained
thereafter.
When submitting questions or request for changes to the original
RFP or subsequent Addendum, proposers must reference the specific
RFP or Addendum Section that would be affected. Any question or
request for change that does not reference the RFP or Addendum as
required will not be considered.
The state shall not and cannot permit an open-ended inquiry
period, as this creates an unwarranted delay in the procurement
cycle and operations of our agency customers. The state reasonably
expects and requires responsible and interested proposers to
conduct their in-depth proposal review and submit inquiries in a
timely manner.
Further, we realize that additional questions or requests for
clarification may be generated from the state’s addendum responses
to the inquiries received during the initial inquiry period.
Therefore, a final 3-day inquiry period shall be granted. Questions
relative to the addendum only shall be submitted by the close of
business three working days from the date the addendum is posted to
BIDS. If necessary, another addendum will be issued to address the
final questions received.
Thereafter, all proposal documents, including but not limited to
the specifications, terms, conditions, plans, etc., will stand as
written and/or amended by any addendum issued as a result of the
final inquiry period.
No negotiations, decisions, or actions shall be executed by any
Proposer as a result of any oral discussions with any state
employee or state consultant. The state may only consider written
and timely communications from proposers.
Response to Offerors' inquiries (if required) will be by an
Addendum published as a modification on the BIDS system in a timely
manner. Offeror should not rely on any other statements, either
written or oral, that alter any specification or other term or
condition of the RFP. Offerors are responsible for monitoring BIDS
for publication of modifications to this solicitation.
1.1.8News Releases
News releases or contact with media representatives pertaining
to this RFP or concerning any Offeror’s proposal shall NOT be made
prior to execution of the contract and without prior written
approval by the Colorado Department of Personnel &
Administration Executive Director or designee.
1.1.9Proprietary/Confidential Information
Any restrictions on the use or inspection of material contained
within the proposal shall be clearly stated in the proposal itself;
written requests for confidentiality shall be submitted by the
Offeror with their proposal. The Offeror must state specifically
what elements of the proposal are to be considered
confidential/proprietary.
Confidential/Proprietary information must be readily identified,
marked and separated/packaged from the rest of the proposal.
Co-mingling of confidential/proprietary and other information is
not acceptable. Neither a proposal, in its entirety, nor proposal
price and/or rate information will be considered confidential and
proprietary. Any information that will be included in any resulting
contract cannot be considered confidential. The Department of
Personnel & Administration, Executive Director or delegate will
make a written determination as to the apparent validity of any
written request for confidentiality. In the event the Department of
Personnel & Administration does not concur with the Offerors’
request for confidentiality, the written determination will be sent
to the Offeror. Ref. Section 24-72-201 et. seq., C.R.S., as
amended, Public (open) Records Act.
1.1.10RFP Response Material Ownership
The State of Colorado has the right to retain the original
proposal and other RFP response materials for our files. As such,
the State of Colorado may retain or dispose of all copies as is
lawfully deemed appropriate. Proposal materials may be reviewed by
any person after the "Notice of Intent to Make an Award" letter
has/have been issued, subject to the terms of Section 24-72-201 et
seq., C.R.S., as amended, Public (open) Records.
The State of Colorado has the right to use any or all
information/material presented in reply to the RFP, subject to
limitations outlined in the clause, Proprietary/Confidential
Information. Offeror expressly agrees that the State may use the
materials for all lawful State purposes, including the right to
reproduce copies of the material submitted for purposes of
evaluation, and to make the information available to the public in
accordance with the provisions of the Public Records Act.
1.1.11Contractual Obligations of RFP Documents
The contents of the proposal and the terms of this RFP will
become contractual obligations of the successful Offeror. This RFP
solicitation consists of all documents listed under the Table of
Contents and are hereby referenced and incorporated herein. “The
State of Colorado Solicitation Instructions and Terms and
Conditions” linked to the BIDS Notice on the website govern except
as modified or supplemented within the RFP or State Contract.
In responding to this RFP, Offerors agreeing to abide by the
requirements of the RFP are also agreeing to abide by all terms and
conditions contained herein, so Offerors should identify or seek to
clarify any problems with contract language or any other document
contained within this RFP packet through their written inquiries
about the RFP or within their proposal.
It may be possible to negotiate some of the wording in the final
contract, but there are many provisions, such as all of those
contained in the Special Provisions pages, that cannot be changed.
To avoid the possibility of any delay in the finalization of the
resulting contract, it is highly recommended that Offerors NOT take
any exception to any of the State’s terms and conditions. Failure
of the successful Offeror to accept these obligations may result in
cancellation of the award.
1.1.12Parent Company
If an Offeror is owned or controlled by a parent company, the
name, main office address and parent company’s tax identification
number shall be provided in the proposal.
1.1.13Certification of Independent Price Determination
1.1.13.1 By submission of this proposal each Offeror certifies,
and in the case of a joint proposal each party, thereto, certifies
as to its own organization, that in connection with this
procurement:
a) The prices in this proposal have been arrived at
independently, without consultation, communication, or agreement,
for the purpose of restricting competition, as to any matter
relating to such prices with any other Offeror or with any
competitor;
b) Unless otherwise required by law, the prices which have been
quoted in this proposal have not been knowingly disclosed by the
Offerors and will not knowingly be disclosed by the Offerors prior
to opening, directly or indirectly to any other Offerors or to any
competitor; and
c) No attempt has been made or will be made by the Offerors to
induce any other person or firm to submit or not to submit a
proposal for the purpose of restricting competition.
1.1.13.2 Each person signing the RFP Submittal Cover Sheet
certifies that:
a)He/She is the person in the Offeror’s organization responsible
within that organization for the decision as to the prices being
offered herein and that he/she has not participated, and will not
participate, in any action contrary to (1.1.13.1)(a) through
(1.1.13.1)(c) above; or
b)He/She is not the person in the Offeror’s organization
responsible within that organization for the decision as to the
prices being offered herein but that he/she has been authorized in
writing to act as agent for the persons responsible for such
decision in certifying that such persons have not participated, and
will not participate, in any action contrary to (1.1.13.1)(a)
through (1.1.13.1)(c) above, and as their agent does hereby so
certify; and he/she has not participated, and will not participate,
in any action contrary to (1.1.13.1)(a) through (1.1.13.1)(c)
above.
1.1.13.3 A proposal will not be considered for award where
(1.1.13.1)(a), (1.1.13.1)(b), (1.1.13.1)(c),or (1.1.13.2) above
have been deleted or modified. The proposal will not be considered
for award unless the Offeror furnishes with the proposal a signed
statement which sets forth in detail the circumstances of the
disclosure and the head of the agency, or his/her designee,
determines that such disclosure was not made for the purpose of
restricting competition.
1.1.14Standard Contract Except as modified herein, the standard
State Contract Terms and Conditions and the Model Contract (Exhibit
A) included in this RFP shall govern this procurement and are
hereby incorporated by reference.
1.1.14.1 Legislative Changes The State of Colorado reserves the
right to amend the contract in response to legislative changes
which may affect this project.
1.1.15Offeror Proposed Terms and Conditions
Except as specified in the Offeror’s proposal, the submission of
the Offeror’s proposal will indicate its acceptance of these terms
and conditions. Offerors must disclose in their proposals terms and
conditions or required clarifications of terms and conditions
consistent with these instructions. The State reserves the right to
clarify terms and conditions not having an appreciable affect on
quality, price/cost risk or delivery schedule during post-award
formalization of the contract.
1.1.16Number of Awards. This is a multiple award opportunity.
The State intends to award up to three to five (3-5) contract(s) as
a result of this RFP. The State will consider proposals from firms
that only wish to receive or wish to exclude Higher Education
and/or NDSL Perkins Loan assignments (Section 3.1.7) but meet all
the other requirements of the RFP.
1.1.17Estimated Quantities Estimated quantities where provided
are estimates only, no volumes can be guaranteed. The estimated
value of this project is not known at this time.
1.1.18Late Proposals Late proposals will not be accepted. It is
the sole responsibility of the Offeror to ensure that the Proposal
arrives in the designated office prior to the date and time
specified in the Schedule of Activities.
1.1.19Audit The States reserves the right to require that the
successful Offeror(s) has a process audit conducted of its program
at least once every three (3) years. If the successful Offeror(s)
has not had such an audit prior to awarding of this contract, and
the State requires one, then an audit must begin within six months
of the award of this contract. The State reserves the right to
approve the selected firm. A complete copy of the audit must be
provided to the Department of Personnel & Administration within
five working days of its completion. The Department of Personnel
& Administration will negotiate directly with the contractor
regarding any exceptions or findings from the audit.
1.1.20Agreement An Awarded Offeror may have no longer than
thirty (30) calendar days to enter into agreement after being
notified by the State. If this date is not met, the State may elect
to cancel the award and award the selection to the next most
successful Offeror(s) if the delay is not the fault of the
State.
1.1.21Proposal Pricing Estimated proposal prices are not
acceptable. Offers submitted must include all related costs (e.g.
surcharges, travel, etc.). Any costs not included as part of the
offer will be disallowed. Pricing must be in U.S. funds. Prices
proposed or rates charged or commission fees proposed are expected
to be held firm for the entire contract period.
1.1.22Rejection of Proposals The State of Colorado reserves the
right to reject any or all offers and to waive informalities and
minor irregularities in offers received and to accept any portion
of an offer or all items offered if deemed in the best interest of
the State of Colorado to do so. Issuance of this RFP in no way
constitutes a commitment by the State to award a contract.
1.1.23State Ownership of Contract Products All products produced
in response to the contract or agreement resulting from this RFP
will be the sole property of the State of Colorado. Any exceptions
must be outlined in detail. Exceptions may serve as cause for
rejection of proposal.
1.1.24Pre Performance Meeting Upon execution of the contract,
the Contract Administrator may conduct a review of the contract
requirements with key personnel of the Agencies and Awarded
Offeror. The purpose of the meeting would be for all working
parties to gain a better knowledge of the contract requirements,
have questions answered, and conduct a needs assessment so that
transition to performance will commence timely and smoothly.
1.1.25Contract Term The contracts awarded will be for a term of
one year with four, one-year renewal option years and a not to
exceed contract term of five (5) years. The State reserves the
right, at it’s discretion, to extend the awarded contracts beyond
the five year term upon written approval by the State Purchasing
Director. No volume of work is guaranteed under this RFP nor is
there any guarantee of contract renewal.
The State reserves the right to perform an annual survey of
State contract partners (or more frequently if deemed necessary) to
determine the level of service that the Awarded Offeror is
providing. The survey will provide data to ensure that the Awarded
Offeror is meeting all the contract requirements.
The initial contract will be effective upon approval by the
State Controller or designee. The contract performance contemplated
herein shall commence as upon the effective date of applicable
contracts and shall be undertaken and performed in the sequence and
manner set forth herein.
1.1.26. Federal E-Verify and Colorado Department of Labor and
Employment Program.
Effective May 13, 2008, contractors who enter into a public
contract for services with Colorado state agencies or political
subdivisions must participate in either the federal E-Verify
program, or the newly created Colorado Department of Labor and
Employment Program (Department Program). The option to enroll in
the new Department Program instead of E-Verify was created by
Colorado State Senate Bill 08-193, which amended the Public
Contracts for Services and Illegal Alien Laws, C.R.S. 8-17.5-101
and 102. A copy of the Guide to contractor participation and a copy
of the Notice of Participation and Contractor Affirmation forms are
attached to this RFP as Attachments A, B and C.
1.1.27Schedule of Activities (Estimates only. The State of
Colorado reserves the right to deviate from these dates)
ACTIVITIES:
TIMELINE
(All times are in local Colorado/Mountain time)
RFP Published
June 5, 2013
Written (E-Mail Preferred) Inquiry Deadline
June 18, 2013
Responses to Written Inquiries Published
June 25, 2013
Proposal Submission Deadline (Proposal Opening Date)
July 5, 2013
Oral Presentations
To be scheduled
Best and Final Offers (BAFOs) (to be held at the discretion of
the State, as applicable)
To be scheduled
Notice of Award Published on BIDS
To be scheduled (approx. 3 weeks after BAFOs
Contract Execution
After the completion of the award protest period (7 days after
Notice of Award has been published)
1.1.28 Incurring Costs
The State of Colorado is not liable for any costs incurred by
Offerers or Proposers prior to issuance of a legally executed
contract. No property interest of any nature shall accrue until a
contract is awarded and signed by all concerned parties and
approved by the State Controller.
1.1.29 Taxes Refer to Section 20. L of State Model Contract
1.1.30 Cyber Security
The awarded Offerer is required by Office of Information
Technology (OIT) to comply with the State of Colorado Cyber
Security Policies:
www.colorado.gov/cs/Satellite/Cyber/CISO/1167928186414. See Section
3.1
1.1.31 Administrative Review Factors – Pass/Fail
Offerors must demonstrate in writing their ability and
willingness to comply with the Mandatory Requirements found in
Section 3.0 of this RFP, as applicable, to be considered responsive
to this RFP. These items are judged on a pass or fail basis
and must be satisfied in their entirety in order for the Offeror’s
response to be considered for further review by the Evaluation
Committee. All Proposers meeting all Mandatory Requirements in
Section 3.0 will then be evaluated and scored based on their
responses to Customer Service (3.1), Technical Merit and Competence
(3.2), Debt Management (3.3) and Private Agency Commission Rate
(3.4).
Section 2.0 Background and Scope of Work
2.1.1Background
The Department of Personnel & Administration’s Central
Collection Services (CCS) unit is statutorily responsible for
providing debt collection services to State agencies and Political
Sub-divisions under the provisions of section §24-30-202.4 C.R.S.
Debts result from transactions between State government agencies
and members of the public and reflect such transactions as student
loans, unemployment insurance overpayments, court fines and/or fees
and many other types of transactions, and/or from transactions
between Political Subdivisions and members of the public.
CCS provides internal collection services at a fixed commission
rate. CCS has unique capabilities, such as State income tax and/or
vendor intercept, access to wage and employment information as well
as access to Department of Revenue Motor Vehicle information within
the State system. The unit is also responsible for the management
and distribution of State debts to awarded private collection
companies and private collection counsel for the State. Statutes
require referral of debt to CCS at 30 days past due, and debts are
subsequently assigned to private collection companies at up to 180
days old if no repayment arrangements have been made with debtors
nor has a suit been initiated. This partnership increases the
opportunity for collection.
The current contract is expiring after the full term of five
years and all options have been exercised.
2.1.2Purpose:
The purpose of this Request for Proposal is to establish
contract(s) with licensed private collection agencies for the
purpose of collecting delinquent debts owed to the State of
Colorado and which maximize the amount of debts recovered in the
shortest period of time. The State prefers competitive ranges and
obtaining the best rate possible and therefore asks Offeror(s) to
submit a bid with a proposed commission rate. Due to C.R.S.
24-30-202.4, the commission rate is capped at 21% (commission
amount will be calculated by CCS on principal and all assigned
fields except commission—in other words, commission is limited to
calculated amount, not total amount collected. The collection
functions are done in strict adherence to applicable federal and
state laws, rules and regulations, which include the standards of
the Colorado Fair Debt Collection Practices Act, Federal Fair Debt
Collection Practices Act, C.R.S. 24-30-202.4, Department of
Personnel Accounts Receivable Collections Administrative Rule, and
the Fiscal Rules. If a debtor refuses to make payments and if
attachable assets are available, litigation may be proposed and
only initiated with prior written approval from the State. The
Awarded Offeror(s) shall be responsible to perform collections with
conformity to “due diligence” requirements in the collection of
federal student loans created pursuant to federal law.
2.1.3Federal/State Statutory and Other Authoritative
Guidance
Provides general information, related topics, and referenced
statutes, rules, regulations, and procedures. This list is not
all-inclusive.
a.Central Collections home page
(http://www.colorado.gov/dpa/dfp/ccs)
General information.
b. Colorado State Government State Controller's Office home
page
(http://www.colorado.gov/dpa/dfp/sco)
· Accounts Receivable Collection Rules (Accounts Receivable
Collections Administrative Rule). Establishes policies and
procedures for the collection of debts due state agencies.
· Fiscal Procedures Manual
· Chapter 8 Credit/Accounts Receivable Policy
· Fiscal Rules
· Rule 6-7 Checks Returned for Insufficient Funds
· Revised NDSL (Perkins Loans) – Loan Rehabilitation
Procedures
c.Collection Agency Board, Colorado Attorney General
(http://www.ago.state.co.us/Cab.htm)
· Collection Agency Board Rules
· Chapter 2 – Consumer Protections
d.Colorado Revised Statutes (http://www.leg.state.co.us)
· §5-12-101, C.R.S. – Legal Rate of Interest
· §12-14-101, et seq. C.R.S - Colorado Fair Debt Collection
Practices Act
· §13-21-109, C.R.S. - Recovery of damages for checks, drafts or
orders not paid upon presentment
· §16-11-101.6, C.R.S. – Collection of fines and fees - methods
– charges (Criminal Proceedings, judicial accounts)
· §23-5-113, C.R.S. - Collection of loans and outstanding
obligations-state educational institutions
· §23-5-115, C.R.S. - Loans or outstanding obligations
offset
· §24-30-202.4, C.R.S. - Collection of debts due state -
controller's duties – creation of debt collection fund
· §29-1-1102, C.R.S. – Delinquency Charges
· §39-21-108, C.R.S. – Refunds (Income Tax and tax offset
provisions)
e. "Fair Debt Collection Practices Act Public Law" 95-109, 15
U.S.C. 1691, et seq. at: www4.law.cornell.edu/uscode/#TITLES
2.1.4Performance Statistics for Private Collection Agencies
Forward Performance Statistics from Fiscal Year 2011 - 2013
ASSIGNED
COLLECTED
COMMISSION
Number $ Value $ Value $ Value
FY11 12873 $40,710,322 $643,951 $183,788
FY12 18595 $55,568,342 $709,349 $171,183
FY13 26061 $71,187,439 $1,130,134 $266,422
Please note:
Commissions paid to vendors include commission on payments
received by State and Originating agencies, not just on amounts
collected by vendor.
FY11 and FY12 figures are for periods from July 1 through June
30
FY13 figures are for period July 1, 2012 through June 3,
2013
Customer Focus and Goals
The CCS program provides services and has established the
following goals for its customer base as listed below. All Awarded
Offeror(s) are expected to be an active partner in sharing these
goals.
· CCS Mission Statement: Working as a team, Central Collection
Services will exceed our clients’ expectations by collecting money
in a prompt and cost effective method, while providing superior
customer service.
· CCS will collect 25 percent of the debt referred by state
agencies and institutions.
· Oversight and Training – CCS will provide statewide training
for client agencies’ accounts receivable units and/or staff as
needed
2.1.5Definitions
“ACH” Automated Clearing House – electronic submission of
checking or savings account transactions.
“Add-on Commission” means commission added to the debt by CCS at
the time of assignment.
“Claimant Agency” means the agency that holds claim to those
debts that CCS is providing collection services to.
“Central Collection Services (CCS)” means the state agency that
provides collection services for the State of Colorado.
“Contractor” means the Offeror(s) awarded a contract to provide
the services contained in this RFP. Also known as Vendor.
“Debt” means any liquidated sum due and owing any state agency
or political subdivision, which has accrued through contract,
subrogation, tort or operation of law regardless of whether there
is an outstanding judgment for that sum.
“Debtor” means any individual, corporation or business owing
money to or having a delinquent account with any state agency or
political subdivision whose obligation has not been satisfied by
court order, set aside by court order or discharged in
bankruptcy.
"EFT" means electronic fund transfers, a transaction with a
financial institution by means of a computer, telephone, or
electronic instrument. The term ''electronic fund transfer'' means
any transfer of funds, other than a transaction originated by
check, draft, or similar paper instrument, which is initiated
through an electronic terminal, telephonic instrument, computer or
magnetic tape to order, instruct, or authorize a financial
institution to debit or credit an account between CCS and Claimant
Agency or Forwarding Agencies or any check, draft or similar paper
instrument which is processed electronically as an electronic funds
transfer by an authorized entity.
“Fiscally Whole” When the Claimant Agency receives all the
monies owed and is financially complete.
“Forwarding Agency” means licensed, private collection agencies
to which State of Colorado accounts have been forwarded under a
valid contract and that are being monitored by the State in terms
of performance and compliance. Also known as Vendor.
“FTP” means File Transfer Protocol, the forwarding and receiving
of files through computerized transmission procedures in a network
environment.
“NSF” (Non Sufficient Funds) also known as Insufficient Funds
means not having a sufficient balance in an account with a bank or
other drawee to cover a check or payment instrument when it is
presented physically or electronically for payment.
“Legally Assign" means a debt has been reviewed and forwarded to
an authorized forwarding agency for collection actions.
“Litigation” means any activity arising through court or legal
system to pursue debts.
“NDSL National Direct Student Loans” means federally backed
student loans including Perkins Loans, etc.
“Offeror” means any potential private collection agency
interested in providing the services contained within this RFP.
“Offset” means the interception of funds or a payment to satisfy
all or part of an obligation to a client agency. Current and
pending offset programs include Vendor Offset, Tax Offset, Lottery
Offset, Gaming Offset and Federal TOPS Offset. Any offsets done by
CCS typically result in an adjustment by contracted vendor without
compensation.
“Past Due” means a debt has not been paid by close of business
on the due date.
“Political Subdivision” means a government municipality or
special district contracted with CCS to collect debts on their
behalf.
“Recovery Rate” A measurement of the dollar amount assigned for
a specific timeframe that is collected in that same period. It is
calculated by dividing the gross collection amount by (the total
dollar amount assigned minus the cancelled amounts).
“State” means the Central Collection Services, an operating unit
of the Department of Personnel & Administration.
“Tax Offset” means the interception of an individual’s personal
State income tax refund to be applied to a debt with CCS.
(Offeror(s) will not receive commission on any funds collected
through the tax offset program. Any tax offset payment must be
processed as an adjustment with a corresponding proportionate
decrease in commission as directed by CCS and will not be
considered a payment collected by Offeror(s)).
“Tax Refund” means the State of Colorado tax refund, which the
Department of Revenue determines to be due to an individual
taxpayer.
“Vendor” means the Awarded Offeror(s) of the services contained
within this RFP. Also known as Forwarding Agency or Contractor upon
contract execution.
“Vendor Offset” means the interception of a payment pursuant to
Colorado Revised Statutes 24-30-202(3.5)(a)(I). (Offeror(s) will
not receive commission on any funds collected through the vendor
offset program. Any vendor offset payment must be processed as an
adjustment with a corresponding proportionate decrease in
commission as directed by CCS and will not be considered a payment
collected by Offeror(s))..
Statement of Work and Proposal Requirements
The items within this section outline specific information
required in your response to determine how well your agency will be
able to meet these requirements.
Offeror must respond to ALL portions of the RFP and submit
responses for each section as indicated.
3.0 Mandatory Requirements All Proposers and Proposed Solutions
must meet all requirements in this section in order to be eligible
for further consideration or award.
· Licensed by the Colorado Collection Agency Board to collect
delinquent debt in Colorado.
· Compliance with HIPAA Regulations (Exhibit B)
· Bonded according to section 3.3.6.
Scored Minimum Requirements
3.1Customer Service
It is imperative to CCS that Awarded Offeror(s) conduct their
business using acceptable Customer Service practices and these
practices shall be evident to both the Citizens and Employees of
the State. Both the State and Debtors should be able to easily
reach the Offeror during business hours. During the course of
collections debtors should always be treated with dignity and
respect.
3.1.1Guidelines
Awarded Offeror(s) will have established policies and procedures
that employees must comply with on how to handle customers in an
efficient yet professional manner. Offeror(s) will have specific
procedures on how feedback is obtained, evaluated, processed, and
how follow-up on complaints and/or concerns are handled.
Awarded Offeror(s) will have an established process for
responding to State inquiries for information, an organizational
structure/chart and a breakdown of types of service specialized in
and services offered.
3.1.1Offeror Response
Q1a. Offerors must provide documented policies and procedures on
how CCS debtors/customers will be handled in an efficient yet
professional manner and how employee compliance is monitored and
measured.
Q1b. Offerors must provide documented policies and procedures
showing how CCS feedback will be obtained, evaluated, processed,
and how follow-up to debtor complaints will be handled.
Q1c. Offerors must provide:
- A complete organizational structure/chart of their
company,
- A description of positions within the company that will be
involved with State of Colorado accounts, including the minimum
qualifications for each position and how State accounts will be
assigned/distributed to collectors,
- A complete description of the Offeror’s process for responding
to State inquiries for information,
- A breakdown of types of service specialized in and services
offered.
3.1.2Offset Programs
In accordance with C.R.S. 24-30-202.4 & C.R.S.
39-21-108(3)(a)(i), it is understood that the State may, through
application of any Offset Program, reduce the balance of any debt
referred to the Awarded Offeror(s) for collection. Awarded
Offeror(s) are not entitled to consideration for those portions of
any assigned debt successfully processed through any State Offset
Program. Offeror(s) will adjust the principal balance according to
such offset and adjust commission accordingly as directed by State.
Peak Tax-Offset periods are from February to May. Awarded
Offeror(s) should anticipate and be prepared to handle increased
volumes of adjustments and/or debtor inquiries during this period.
The separation of tax-offset collection from total individual debt
account balance must be clearly defined to avoid confusion in
compensation computation and performance measurement. Such
assistance will be provided without additional compensation.
3.1.2Offeror Response
Q2. Offeror must provide written information on how this
requirement will be met. This information shall include:
-Written procedures demonstrating how it will ensure that
adjustments will be made within 5 days of receipt.
-Written procedures demonstrating how requests for offset
adjustments will be recorded as adjustments and not payments.
3.1.3Pay Directs
CCS shall provide the Offeror(s) with information on payments
made directly to the State on debts referred to the Offeror(s) and
will pay the appropriate commission on these payments.
The State of Colorado has several client agencies that, due to
internal policies and/or federal guidelines, cannot apply direct
payments to commission fees. In these instances, the Awarded
Offeror(s) will, at the direction of the State, post pay directs to
principal and any other specific assigned amounts as notified. The
Awarded Offeror(s) will be responsible for pursuing any remaining
commission or other amounts to collect any remaining balance
due.
3.1.3 Offeror Response
Q3. Offeror must provide written information on how this
requirement will be met to include details showing how pay direct
payments will be correctly posted.
3.1.4Paid In Full
The Awarded Offeror(s) will be required to verify any remaining
balance due prior to accepting payment in full when the debtor
requests written confirmation and/or for the originating agency to
be notified to release holds on an account. Offerors will have
on-line real time access to account information in State
system.
Settlements. Under no circumstances will the private collection
agency compromise or settle any debt assigned by the State without
written authorization from the State. Any compromise or settlement
should be forwarded to the state as a formal written proposal, to
be evaluated by the originating agency and appropriate state
personnel prior to approval.
Awarded Offeror(s) will be required to make the State fiscally
whole if they fail to satisfy these requirements.
3.1.4Offeror Response
Q4. Offeror must provide a written policy demonstrating how this
requirement will be met including confirmation that Offeror’s staff
will verify the correct payoff balance prior to issuing any paid in
full letter.
Offeror will provide written confirmation that settlement
proposals will be provided to the State for review prior to
negotiating any settlement of State debt.
3.1.5Bankrupt and Deceased Accounts
Upon receipt of documentation showing a debtor has filed
bankruptcy, Awarded Offeror(s) shall change the status of the
account to their bankruptcy code to ensure compliance with all
federal bankruptcy regulations. Awarded Offeror(s) shall forward
copies of documentation received to the State. The State will make
a determination as to whether the debt is dischargeable or not and
take appropriate action to cancel the account if dischargeable.
Offeror must comply with all laws and requirements on bankruptcy
accounts, including cessation of collection efforts during the stay
of execution period.
Upon receipt of documentation showing a debtor is deceased,
Offeror shall cancel and return the account to the State. Offeror
shall also forward copies of all documentation regarding being
deceased to the State.
3.1.5Offeror Response
Q5a.Offeror must provide a written policy demonstrating how this
requirement will be met to include their procedures in dealing with
bankruptcy accounts.
Q5b. Offeror must provide a written policy demonstrating how
this requirement will be met to include their procedures in dealing
with deceased accounts.
3.1.6Out-of-State Collection Agency
Offeror(s) may employ licensed and bonded associates, to include
licensed attorneys, in other states to effect collection of debts.
All such associates shall be bound by the same terms and conditions
as the Offeror and Offeror shall be responsible for the faithful
execution of duties by those associates selected. Any such
collaboration does not change the commission structure or
litigation authorization requirements established with Offeror for
collection of accounts.
The Offeror will maintain total responsibility for actions and
costs associated with the out-of-state collection agency. The State
will pay no fees to the out of State collection agency. Nor will
Offeror receive any additional consideration for recoveries
accomplished by associates in other states.
Once monthly, during the normal remittance process, a report of
all out-of-state forwarded debts shall be furnished to CCS by the
Offeror(s). The Report will include the debtor name and address,
CCS account number, and the name and address of the recipient
licensed collection agency.
3.1.6Offeror Response
Q6. Offeror must include in the proposal their out-of-state
collection abilities, including how debt is transferred and tracked
out of state, names of out-of-state collection agencies (or
attorneys) used and a description of the relationships between the
Offeror and the out-of-state collection agency.
3.1.7 Student Loan Guarantee Requirement
CCS desires to contract with more than one private collection
agency with extensive experience in collecting Higher Education
debts as well as extensive experience with collecting NDSL Perkins
loan debts. Any Offeror wishing to receive such accounts must
guarantee the collection procedures for student loans to be in
compliance with and satisfy federal audit requirements, which
include Perkins loans/due diligence (34CFR Chapter 6) and agree to
satisfy federal due diligence requirements, or must make the
affected institution fiscally whole on those accounts when this is
not done. The State will consider proposals from firms that do not
wish to receive NDSL Perkins Loan assignments or who wish to
receive only Higher Education and/or NDSL Perkins Loan assignments
(Section 3.1.7) but meet all the other requirements of the RFP.
Offerors have options to bid on this RFP as follows:
Offerors may bid to receive ALL types of accounts, including
Higher Education and NDSL Perkins Loan accounts.
Offerors may bid to receive all other types of accounts but NOT
receive NDSL Perkins Loan. Offerors may bid to receive Higher
Education and/or NDSL Perkins Loans ONLY.
3.1.7Offeror Response for those wishing to receive NDSL Perkins
Loan assignments.
Q7. Offeror must explain their procedures including internal
control/audit procedures to determine compliance with Perkins
loans/due diligence rules (34 CFR, Chapter 6). Offeror must provide
a detailed explanation of their experience in the collection of
federally guaranteed loans.
3.1.8Credit Bureau Reporting
Awarded Offeror(s) may NOT report any CCS accounts to any credit
bureau and the State will monitor the contract/contractor for
compliance. Only CCS can report accounts to credit bureaus. This
eliminates creating a potential “double jeopardy” situation whereby
the debtor is reported twice for the same debt. If there are any
violations, the Awarded Offeror(s) will be sent a notice specifying
liquidated damages in the amount of $50 per incident and the
possibility of contract termination after three (3) violations.
3.1.8Offeror Response
Q8. Offeror must provide written procedures explaining how it
will ensure State accounts are not reported to the credit
bureaus.
3.1.9Debt Return
Debts will be returned to the State when one or more of the
following occur:
If any Awarded Offeror has not received a current payment within
the 12-month period or has a payment plan and is not receiving
current payments then the account will be returned to the State. A
current payment is defined as payment received during the previous
month, not including involuntary payments through any of the Offset
programs.
If all collection methods as described in this Request for
Proposal have been exhausted prior to the automatic 12-month
recall.
If a cancellation request is made by the State of Colorado by
written notice or automatically if a current payment has not been
received by the Awarded Offeror within a 12-month period.
If any Awarded Offeror determines that a debtor may be eligible,
under the provisions of any applicable statute, rule or policy, for
debt deferment, postponement, or cancellation, the Awarded Offeror
shall promptly suspend collection efforts and notify the State.
The contract is terminated. Upon termination of any resulting
contract, any debt that is receiving regular payments may, at the
State’s discretion, be allowed to be retained by the Awarded
Offeror(s) until the debt is paid in full, adjudicated, or until
there is a lack of active payment according to payment
schedule.
If one or more of the events described above occur, the State
will request the debt be returned within 20 business days of
notification except for automatic recalls. Automatic recalls shall
be returned immediately and reported to CCS using the Recall/No
Activity Report defined in Section 3.2.1.7.d. Awarded Offeror(s)
may be required to pay the State $50.00 per day for each day beyond
the required return time that the debt is not received by the
State.
3.1.9 Offeror Response
Q9. Offeror must provide a written policy detailing how this
requirement will be met. This policy will include:
- A detailed process demonstrating how the aging of accounts
will be monitored and how the dates of last payments received by
Offeror will be monitored.
- A detailed process demonstrating how accounts will be returned
to the State after 12 months, unless a current payment plan is in
effect.
3.1.10 Local Presence.
The State wishes to contract with companies that maintain at
least one office in the State of Colorado.
3.1.10Offeror Response
Q10. Please provide information as to the size and number of
employees in offices based within the State of Colorado.
3.2Technical Merit and Competence
All items contained in this section describe contractual
obligations of the Awarded Offeror(s). The items that follow will
be typical of daily activities and requirements of Awarded
Offeror(s). Offeror(s) should take these requirements and
information under consideration when responding to the questions
being asked.
3.2.1 Offeror Accounting and Reporting
3.2.1.1Referrals
Debts will be referred by the State to the Awarded Offeror(s) on
a periodic basis as determined by State. The date of debt referral,
quantity of debts, amount of indebtedness, and all other
particulars of the debts referred shall be determined solely by the
State. State reserves the right to adjust referrals based on
performance.
All debts so referred shall be separated and maintained
separately from Awarded Offerors’ other non-State of Colorado
business in a manner prescribed by the State (e.g., by the State’s
client numbers and program identifications). Awarded Offeror(s)
will be responsible for creating an Acknowledgment Report showing
each debt that is referred by the State within 10 business days of
receipt of referral. Report format is provided in Section
3.2.1.7(a).
Automated systems used by the Offeror must allow for multiple
fields that already exist on current State reports. When debts are
referred, the Awarded Offeror(s)’ system must allow for downloading
into their internal system with the same fields. Interest is not
accrued in all the fields; Awarded Offeror(s) must be able to
accrue interest on State-identified fields, depending on the type
of debt.
3.2.1.2Payments Based on Debt Collection
Awarded Offeror(s) will be entitled to appropriate collection
fees based on the debt collected according to the Awarded Offeror’s
contract. Per C.R.S. 24-30-202.4, the collection fees cannot exceed
21% (to be calculated by CCS on principal and all assigned fields
except commission—in other words, commission is limited to
calculated amount, not total amount collected. Payment of
commission will occur during the following month before the third
Friday. Offeror(s)’ remittance file detailing gross payments (not
net payments) will be due by the 10th day of each month. All
payments received by Offeror must be reported to State using the
following file layout:
FILE LAYOUT
FORWARD REMITANCE FILE
DESCRIPTION LEN FRMTOJUSFILL
------------------------------ --- --- --- --- -----
STATE OF COLORADO DEBTOR ID 010001010RSPACE
TRANSACTION DATE 006011016RZERO
TRANSACTION AMOUNT 009 017 025R2ZERO
FILLER056026080LSPACE
3.2.1.3Balance Adjustments
The State reserves the right to reduce or deny payment of any
fee to the Awarded Offeror(s) when the balance due is adjusted as a
result of State actions such as, but not limited to, appeals,
offsets or credit adjustments. The State will provide a report in
detailed description on the balance adjustment. Interested
Offeror(s) will agree to adjust balances upon written notification
by the State.
3.2.1.4 Debt Recall
Debts may be recalled on an individual basis in instances such
as error in placement and/or other circumstances that may be beyond
control of the State. Awarded Offeror(s) shall be given written
recall notice from CCS and must process the request within 3
business days.
If a payment has not been received on an account within a
12-month period of time, the account shall be automatically
returned to CCS as a recall and without the State having to provide
written notice. Adjustments and offset payments reported by the
State to the Awarded Offeror will not be considered payment
activity by the Offeror. The Awarded Offeror will review all
assigned accounts on a monthly basis and provide State with a
separate list of accounts being recalled individually and cancelled
for having no payments during the prior 12 months. Recall for any
reason shall be without cost to the State. A Recall/No Activity
Report listing all recalled accounts must be submitted to CCS
monthly. Any recalled or cancelled account shown on the Recall/No
Activity Report must show a zero balance.
If an Awarded Offeror continues to collect on a debt that has
been recalled, the State reserves the right to withhold the
collection fee or commission. If there are any violations, the
Awarded Offeror will be sent a notice specifying liquidated damages
in the amount of $50 per incident and the possibility of contract
termination after three (3) violations.
3.2.1.5 Interest
Interest will be assessed ONLY at the direction of CCS at the
rate that the State specifies on an individual account. Interest is
not accrued on all the fields; Awarded Offeror(s) must be able to
accrue interest on State-identified fields, depending on the type
of debt. The State requires that simple interest be accrued daily.
The Monthly Status Report from Offeror to CCS should detail
interest separately as part of the compensation information.
3.2.1.6 Remittance
(C.R.S 24-36-104 & 11-10.5-111). All moneys due the State
and recovered by the Awarded Offeror shall be remitted to the State
on a monthly basis or sooner as determined by State. In the
instance of any chargeback or returned check, Offeror will notify
State within 3 days of receiving notice and appropriate reversal of
posting will occur.
3.2.1.7Reporting Requirements
All Awarded Offerors will be required to submit ongoing reports
to CCS on a regular basis. The State requires that all reports be
submitted in an electronic format. Acceptable electronic formats
for the State are: Microsoft Excel® or ASCII text format.
a. Acknowledgment Report. The Acknowledgement Report will
include the assigned account field detail, ie., Principal,
interest, commission fee, miscellaneous fees and be received by the
State within 10 business days of referral.
The report will be submitted in the format below:
NAME OF PRIVATE COLLECTION AGENCY – ACKNOWLEDGMENT REPORT
ACKNOWLEDGMENT REPORT FOR MM/DD/YYYY
CCS DEBTOR NAME
CCS ACCT NO.
TOTAL BAL
PRINC ASGN
ASGN INT
COMM FEE
AMISC1
AMISC2
AMISC3
AMISC4
AMISC5
AMISC6
INTEREST EFF DATE
INT BAL
$
$
$
$
$
$
$
$
$
$
mmddyy
$
$
$
$
$
$
$
$
$
$
$
$
b. Monthly Status Report. All forwarding agencies will submit a
Monthly Status Report, on or before the 15th of each month to CCS.
This Monthly Status Report must compile information including
assignment of new accounts, changes of debtor address, phone number
or other demographic information, account balance adjustments and
account activity, i.e., skip tracing, pending litigation, payment
plans, etc. in the format below.
NAME OF PRIVATE COLLECTION AGENCY – MONTHLY STATUS REPORT
ACCOUNT INVENTORY STATUS FOR MM/DD/YYYY
CCS DEBTOR NUMBER
DEBTOR
NAME
ACCOUNT
STATUS (cancels, adj., etc.)
ASSIGN DATE
LAST
PAYMENT
DATE
LAST ACTIVITY DATE
TOTAL BALANCE
DUE
ACCRUED
INTEREST
COMMENTS (address chg,etc.)
c. Suit & Judgment Report. All suits must be pre-authorized
in writing by CCS. Awarded Offeror(s) will provide a monthly Legal
Judgment Report detailing the monthly legal activities inclusive of
judgments, payment under judgment and total legal cases assigned.
The Offeror will send one report, which at a minimum, will compile
a listing of all active judgments (including new and existing) and
closed judgments (no further payments owed). Closed suits will be
removed from the list on a quarterly basis. On a monthly basis,
Offeror will send a Transcript of Judgment on each account when
judgment is obtained. A Certified Transcript of Judgment is
required for any NDSLoan Judgment. This Report will be in the
format shown below. Offeror will agree to provide Satisfaction of
Judgement on any account paid in full, even after expiration of
contract
NAME OF PRIVATE COLLECTION AGENCY – SUIT & JUDGMENT
REPORT
CCS DEBTOR NAME
CCS ACCT No.
JMT DATE
ORIGINAL JMT AMOUNT
CURRENT JMT BALANCE
d. Recall / No Activity Report. Awarded Offeror will provide a
monthly listing of accounts that have been cancelled or returned
for any reason during the month. This Report will be in the format
shown below:
NAME OF PRIVATE COLLECTION AGENCY – RECALLED / NO ACTIVITY
REPORT
CCS DEBTOR NAME
CCS ACCT. No.
DATE CANCELLED
CANCELLED AMT
REASON CANCELLED
3.2.1Offeror Accounting and Reporting
Q10.3.2.1.1 Referrals
Offeror will provide documentation showing how referrals will be
handled according to the specifications listed.
Q11.3.2.1.2 Payments Based on Debt Collection
Offeror will provide documentation showing how they will comply
with the requirements for payments.
Q12.3.2.1.3 Balance Adjustments
Offeror will provide a written explanation describing how this
requirement will be achieved.
Q13.3.2.1.4 Debt Recall
Offeror will provide written documentation as to how these
requirements will be met.
Q14.3.2.1.5 Interest
Offeror will provide written documentation showing how interest
is calculated on accounts according to State requirements.
Q15.3.2.1.6 Remittance
Offeror must provide written explanation demonstrating how this
requirement will be met and how any chargebacks or NSF checks are
handled.
Q16.3.2.1.7 Reporting Requirements
Offeror will provide sample copies of the following reports as
required
a. Acknowledgement Report
b. Monthly Status Report
c. Suit and Judgment Report d. Recall—No Activity Report
The format of these reports shall follow the examples provided
in section 3.2.1.7.
3.2.2Record Retention
In accordance with the State of Colorado Archival Records
Management Manual, Awarded Offeror shall maintain documentation of
payments, including copies (photos or electronic image) of all
payment instruments i.e. checks, money-orders, credit card
transactions, for three (3) years after the account is paid in full
or closed. Awarded Offeror must be able to retrieve and provide a
copy of documentation in a timely manner at the request of the
State.
3.2.2Offeror Response
Q17. Offeror must supply a written statement including examples
of how this requirement will be met.
3.2.3Information Technology Support
a. Reporting
Offeror will have a system in place to ensure reporting is
provided electronically.
3.2.3Offeror Response
Q18a. Offeror will provide system description and include the
number of computer personnel dedicated to the system, types of
management reports that are routinely generated and sample reports
that will be distributed to CCS. An example would be the reporting
of invoices that have the breakdown of debtor’s payments including
interest, principal, collection fees and other miscellaneous
charges with a consolidation payments column. Offeror will also
describe their process for customized reports and the associated
turnaround time.
b. IT and Communications Systems
Offeror will provide a description of their IT and Communication
systems applications for assignment of new accounts and subsequent
reporting requests. The State is working towards daily file
transfers of account activity to ensure systems contain the same
information.
3.2.3Offeror Response
Q18b. Offeror must submit a complete description of its computer
hardware, collection management software, and telecommunications
systems. Included in this section should be the capability to make
online inquiries, transmit and receive data and funds through File
Transfer Protocol (FTP) or any other method between the Offeror and
CCS. Any additional capabilities associated with collections
activities that may enhance Offeror’s capability should be listed.
System security and items that add to the user-friendliness of the
system should be listed as well. Offeror will submit a description
of how they could generate daily file transfers of updated
information on accounts.
3.3Debt Management
It is imperative to CCS that Offeror(s) have sufficient
experience and an established organization able to provide
professional debt collection services to the State of Colorado.
3.3Offeror Response
Q19. Offeror must submit:
- A complete description of its organization structure/chart,
with breakdown into types of
services offered,
- The number of years in debt collection management,
- Background and other experience in the collection
industry,
- Recovery rate as defined in Section 2.1.5, by type of debt for
the last three years,
- Documentation detailing training programs for
employees/collectors.
3.3.1Experience, Procedures and Qualifications
Offeror must have relevant experience, procedures and
qualifications as it pertains to the criteria below:
a. Qualifications of agency and personnel.
b. Letter series.
c. Phone collection attempts.
d. Skip tracing.
e. Debtor follow-up.
f. Litigation criteria.
g. Law firm performing debt litigation.
h. Internal controls.
i. Past performance statistics.
j. Employee training and FDCPA compliance.
m. Litigation Procedure.
Should litigation of a debt be requested and authorized, Offeror
will be able to perform internally the preliminary steps
(preparation of the Summons and Complaint, process serving and
negotiation) before trial. Should a debt actually go to trial,
Offeror shall utilize an attorney licensed to practice law in the
State where the litigation occurs. In consultation with the
claimant agency, CCS must grant prior written approval before any
legal action is filed. Offeror is not required or necessarily
expected, to litigate accounts on behalf of State, however, if it
chooses to do so, must follow these requirements.
Offeror(s) must identify subcontractor relationships with legal
or litigation entities. Offeror(s) must identify any changes in
these relationships as they occur during contract duration. All
court costs, including court ordered attorney fees (Sections
13-32-101 and 13-16-122, CRS) associated with any litigation will
be paid by the Offeror. Costs and court-ordered attorney fees shall
be added to the unpaid debt balance, and recovered by the Offeror.
Any costs not collected will be paid by the Offeror, and will not
be reimbursed by the State. An official court transcript of any
judgment obtained, (certified copy for judgment on NDSLoans), which
must include case number, date, court, detail of amount and
interest, must be provided to Central Collection Services within 30
days of the date judgment was entered. Copies may be mailed,
e-mailed or faxed to the Vendor Coordinator for Central Collection
Services. Expired judgments, as defined in law, will be returned to
Central Collection Services and the Offeror will not receive
commission on any future collections for that particular judgment.
Offeror will renew judgments prior to expiration after first
obtaining CCS authorization.
A satisfaction of judgment must be filed in court and copies
sent to the debtor and to CCS within 30 days of payment in full.
Likewise, if judgment is vacated at the request of the state or for
any other reason, a copy must be sent to the debtor and to CCS
within 30 days of date vacated. Offeror agrees to file Satisfaction
of Judgment on accounts as necessary even after expiration of
contract.
It is understood that the phrase “legally assign” as used in the
contract conveys a claim in trust to the Offeror, for the benefit
of the State, for the purposes of debt collection and recovery
only. The Offeror(s) will only collect what has been legally
assigned by CCS for collection. Under no circumstances will the
Offeror compromise or settle any debt assigned by the State without
written authorization from State. Offeror will not propose any
settlement or compromise to any debtor, but may request CCS to
review offers proposed by debtor. The Offeror shall not bring any
legal action in its own name in order to effect collection, but
neither such action, nor any judgment shall alter this trust
relationship in any way.
3.3.1Offeror Response
Q20a. Qualifications. Describe how your collection agency will
collect State of Colorado debts. Describe your agency's philosophy.
Provide mission statement and customer service training
information. Define how your company tracks and implements industry
improvements and technology advancements to continually improve
customer service.
Offeror must provide resume information regarding management and
leadership personnel related to the collection operation that will
be responsible for the collection of State of Colorado accounts.
Offeror must ensure that collectors to be assigned debts as a
result of award from this RFP have at least one (1) year of
collections experience. Provide a list of collectors, the relevant
work performed and years of collection experience.
Offeror must include an information sheet stating Offeror’s
contact person and he/she must have the authority to make
management decisions, negotiate on behalf of Offeror and bind
Offeror to negotiated positions. Provide list of verifiable major
clients, the length that services have been provided for that
client, recovery rate as defined in Section 2.1.5 for the client,
current contact name, email address and a current phone number.
Offeror must furnish a copy of its current Collection Agency
License issued by the State of Colorado as provided by CRS
12.14.118-112. Proposals submitted by Offeror(s) that have been
censured or suspended by the Collections Agency Board within the 90
days period immediately prior to the date of this RFP will not be
evaluated.
Q20b.Letter Series. Provide proposed copies of letter series to
debtors designed specifically for collecting State of Colorado
debt.
Q20c.Phone Collection Attempts. State number and frequency of
phone collection attempts with debtors and whether Offeror utilizes
a dialer. If so, please provide information regarding compliance
with Telephone Consumer Protection Act.
Q20d.Skip Tracing. State methods of skip tracing and tools used
by your agency in locating debtors and updating accounts (using
flow-chart to illustrate workflow process).
Q20e.Debtor Follow-up. Discuss method of follow-up procedures in
working with debtors. Discuss supervisor/management review of
collector work in progress and overall performance. List corrective
procedures necessary to bring mishaps back on track and include
detailed policy/procedure for handling complaints. Describe the
course of action used to ensure ALL State accounts will be worked
to the fullest extent. Describe whether phone calls are recorded
and related follow up procedures.
Q20f.Litigation Criteria. Discuss method/procedure of qualifying
debtors for litigation, i.e., what criteria are used to identify
debt to be litigated.
Q20g.Law Firm Performing Debt Litigation: Offeror must furnish
the name of each law firm and each affiliated attorney within each
law firm that would handle State accounts or identify the specific
association or network used that will perform the debt litigation
service on behalf of the Offeror. Information related to the law
firm should be listed according to:
- Number of years firm has been in business;
- Recovery rate, as defined in 2.1.5, by type of debt;
- Different types of litigation in which the firm
specializes;
- Geographical area in which the firm has extensions;
- Names, addresses, phone numbers and current contact person of
past clients
for references;
- Any other supporting information that is justifiable; and
- Any significant legal cases pertaining to collection matters
pending or finalized
should be disclosed.
Offeror will provide a description of their litigation processes
and their success rate (percent [%] of accounts assigned to
litigation, % of accounts awarded judgment, % of accounts judgment
satisfied). Offerors utilizing a national network or association of
attorneys to support their collection efforts should provide the
number of times that network or association has been used
previously and their success rate.
Q20h.Internal Controls. Provide internal control procedures on
receivables management and any other QC (quality control) protocols
in place.
Q20i. Past Performance. Offeror must provide a detailed
description of experience in and types of Government debt
collected. Offeror must provide past performance statistics, for
the last three fiscal years, in the form of recovery rates as
defined in Section 2.1.5 by government debt types.
Q20j.Employee Training and FDCPA. Offeror must provide
information regarding their procedures in relation to employee
training on the Colorado and Federal Fair Debt Collection Practices
Acts (CFDCPA/FDCPA). In addition, Offeror must provide the written
procedures and policies on handling FDCPA abuses.
Q20k. Litigation Procedure. Describe your preliminary steps
performed internally before trial.
3.3.2Complaints
CCS will review the number of complaints filed with the State of
Colorado Collection Agency Board and Better Business Bureau, nature
of those complaints and the resolution.
3.3.2Offeror Response
Q21. Offeror must provide a listing of all complaints filed with
the State of Colorado Collection Agency Board and/or Better
Business Bureau in calendar years 2010, 2011 and 2012, the nature
of those complaints and the resolution of those
complaints(including any penalties imposed). Offeror will also
provide the total number of all accounts worked in the State of
Colorado by year for the same periods.
3.3.3Commission Fee Structure
The State has the option to exercise its right to impose fees
and/or add fees to accounts. The State reserves the right to reject
proposals where the Offeror(s) does not agree to have additional
commission fees imposed.
3.3.3Offeror Response
Q22. Offeror must provide a written explanation describing how
they will track any additional fees added to accounts.
3.3.4 Payment Structure – In some cases for older accounts, or
accounts under certain federal guidelines, the State may assign
accounts without a commission fee added on, in which case the
commission fee would be paid out of the amount collected and
remitted to State.
3.3.4Offeror Response
Q23a. Offeror must provide written procedures that will be used
for posting both types of commission fee structures.
Q23b. Offeror must provide a copy of internal posting policies
to include security procedures on handling and tracking all types
of payments, the timeframe from receipt of all types of payments
until the payment is posted, etc.
3.3.5Refunding
All Awarded Offeror(s) will be required, as directed by State,
to refund over-collected amounts back to the debtor within 30 days,
regardless of whether or not they were contacted by the debtor.
This activity should be listed in the Monthly Status Report to
CCS.
3.3.5Offeror Response
Q24. Offeror must provide written procedures as to how this
requirement will be met.
3.3.6Bond and Insurance
The State requires the Awarded Offeror(s) to obtain and maintain
a fidelity bond in the amount of at least $500,000.00 and
professional liability insurance of $1,000,000.00. A bond will be
required of the Awarded Offeror(s) prior to the effective date of
any contract resulting from award of this solicitation. The Awarded
Offeror(s) will not be allowed to start work without this bond in
effect.
3.3.6Offeror Response
Q25. Offeror must provide a written statement of agreement that
this mandatory bond and insurance requirement will be met.
3.3.7Contract Termination and Expiration
Upon termination or expiration of any contract that may result
from this RFP, the State MAY allow retention of active debts.
Active debts are defined as debts receiving regular payment or
having received payment within the 30 days previous to the
termination or expiration date or until paid in full. If retention
of debt is not allowed by the State, the Awarded Offeror(s) must
return to the State all assigned debts and all debt documentation
within 20 calendar days. In addition, Offeror(s) shall furnish to
the State a final remittance report.
If the payment plans have lapsed due to any reason, Offeror(s)
will inform CCS in writing of those incidents through the Monthly
Status Report. CCS will decide and inform the Offeror(s) on whether
or not to return those accounts and terminate further business
dealings on those accounts. If the contract is terminated by the
State or expires as provided herein, the Offeror(s) may be allowed
to retain judgments obtained on accounts referred to the Offeror(s)
by the State and continue to take payments on judgments prior to
the effective date of the termination or expiration, and shall
continue to remit the State’s percentage as agreed in the specified
fee and payment schedules with the State. Awarded Offeror(s) shall
NOT renew any judgments without CCS authorization after termination
or expiration of contract.
3.3.7Offeror Response
Q26. Offeror must provide a written explanation describing how
these events will be monitored and the requirement will be met.
3.4Private Collection Agency Commission Rate
For the purpose of collecting delinquent debts owed to the State
of Colorado which maximize the amount of debts recovered in the
shortest period of time the State prefers competitive ranges and
obtaining the best rate possible and therefore asks Offeror(s) to
submit a bid with a proposed commission rate that will be used for
all State accounts. Due to legislation passed regarding C.R.S.
24-30-202.4, the commission rate is capped at 21% (to be calculated
by CCS on principal and all assigned fields except commission—in
other words, commission is limited to calculated amount, not total
amount collected.
All Offeror(s) shall understand that any debt receiving regular
payments under the current contracts, may be retained under the
current contracts until the debt is paid in full, adjudicated, or
until there is a lack of active payment according to payment
schedule.
3.4Offeror Response
Q27. Offeror shall provide a single commission rate that shall
not exceed 21%. This response shall include the Offeror’s written
procedure ensuring the proposed rate will be calculated on the
principal and all assigned fields to exclude the Offeror’s
commission rate. This rate shall be applied to all accounts issued
under the resulting contract(s) and the rate shall remain firm
during the term of any resulting contract(s).
Section 4.0Offeror Response Format and Instructions
4.1Proposal Submission General Requirements
4.1.1 Proposals will be deemed complete when originally
submitted; additional information cannot be accepted at a later
date because of omission.
Proposals submitted for consideration should follow the format
and order of presentation described below:
A. Cover Letter: The cover letter should exhibit the Proposer’s
understanding and approach to the project. It should contain a
summary of Proposer’s ability to perform the services described in
the RFP and confirm that Proposer is willing to perform those
services and enter into a contract with the State.
The cover letter should also
1. Identify the submitting Proposer;
2. Identify the name, title, address, telephone number, fax
number, and email address of each person authorized by the Proposer
to contractually obligate the Proposer;
3. Identify the name, address, telephone number, fax number, and
email address of the contact person for technical and contractual
clarifications throughout the evaluation period;
4. Identify the number of days after submission for which the
proposal is valid;
5. Provide a positive statement of compliance with the contract
terms and conditions detailed in the RFP. If the Proposer cannot
comply with any of the terms, an explanation of each exception must
be supplied and proposed alternative language provided. Section
1.1.11 of this RFP outlines those terms which are
non-negotiable.
B.
Table of Contents: Organized in the order cited in the format
contained herein.
C. Proposer Qualifications and Experience:
Financial Stability
Proposer must demonstrate that it has the financial stability to
provide and support the products and services identified in this
RFP by providing with its proposal: (1) audited financial
statements for the three consecutive years immediately preceding
the issuance of this RFP; and (2) copies of any financial
statements that have been prepared since the end of the most recent
year. If the financial statements being provided by the Proposer
are those of a parent or holding company, additional financial
information should be provided for the entity/organization directly
responding to this RFP.
Company
Proposer must provide brief company descriptions, including
number of years in business, type of business, corporate structure
and organization, the state in which formed (accompanied by a
certificate of authority), total number of employees and locations
of permanent facilities. Proposer must describe the company’s
mission, location and lines of business, including the percentage
of their overall resources dedicated to providing the Solution
design, development, implementation and support services described
in this RFP.
Company Experience
Proposer must demonstrate its capability to provide the services
specified in this RFP, by responding to the following informational
requirements. Each item must be thoroughly addressed.
1. The Agencies seek proposals from firms with experience with
comparable scope in this RFP.
2. This experience must have been gained prior to bid submission
and may have been obtained from one or more clients.
3. The experience must be with a system that was fully
operational for a minimum of one year where the project milestones
and deliverables were met.
Proposer shall provide references and project summaries from
three (3) current customers in the areas listed above. At least one
customer must be willing to act as a reference, allowing contact by
telephone and/or onsite visit during the evaluation process.
Project summaries should include at a minimum the name of the
client organization, point of contact information, overview of the
project, contract value, start and end dates, project status, scope
of services and primary deliverables.
4.1.4Addressing Statement of Work/Program Requirements (Offeror
Response)
The following information within this section shall outline
specific information required in your response and assist in
determining how well your agency will be able to meet the
requirements set forth within Section 3, Statement of Work/Proposal
Requirements.
Offeror must address responses for each section of any proposal
submitted. All Offerors must submit sample reports as specified
according to the specific or corresponding paragraphs that are
addressed.
All Offerors must respond to ALL portions of the following
information and or related sections:
1. Signed Proposal Submittal Cover Sheet
2. Section3.0 Statement of Work/Proposal Requirements
All Offerors must meet the initial mandatory requirements of the
RFP or be disqualified, including:
· Licensed by the Colorado Collection Agency Board to
collect
delinquent debt in Colorado
· Compliance with HIPAA Regulations (Exhibit B)
· Bonded according to section 3.3.6
· Section 3.1 Customer Service
· Section 3.2 Technical Merit and Competence
· Section 3.3 Debt Management
· Section 3.4 Private Collection Agency Commission Rate
· Transmittal Letter
Submit a Transmittal Letter that positively states your
willingness to comply with all work requirements and other terms
and conditions as specified in this RFP. Any deviations or changes
from specifications outlined in this RFP are to be explained
clearly and alternatives offered. Furthermore, the Transmittal
Letter must:
i Be printed on your official business letterhead.
ii Identify all material and attachments that comprise your
proposal.
iii Be signed by an individual authorized to commit you to the
proposed work.
iv Confirm Offeror is licensed by the Colorado Collection Agency
Board to collect delinquent debt in Colorado.
v Confirm Offeror is in compliance with HIPAA Regulations
[Exhibit B-1.
vi Confirm Offeror shall be Bonded according to section
3.3.6.
vii Discloses the intended use of any subcontractors and their
credentials/references.
· References
Please provide at least three (3) and no more than five (5)
references that match the scope of work outlined in this
solicitation. Provide the principal contact, telephone number and
email address, as well as a brief description of work performed.
The State reserves the right to include the State of Colorado and
other states as additional references. The State also reserves the
right to call references only on the selected Offerors as a method
of determining responsibility.
· Financials
Please provide a copy of the last certified, audited financial
statements for your company. The
State reserves the right to review financials only on the
selected Offerors as a method of
determining responsibility.
Section 5.0 Proposal Evaluation and Award
Bid Evaluation: An evaluation team selected by the State will
evaluate the merit of proposals received in accordance with the
evaluation factors defined in the solicitation. This evaluation
committee will review and score submitted proposals to determine
which response most accurately and clearly:
1. meets the service requirements
2. meets the training requirements for State staff
3. demonstrates a sound approach related to the special needs,
requirements of integration and to the needs for the State of
Colorado
4. vendor is able to demonstrate it has adequate qualified
personnel, past experience and other resources such as technical
support and technicians to complete the project
5. provides rates that are fair, competitive, and meets the
State’s budget
This section supplements paragraph 3.8, “Evaluation and Award,”
in the Colorado Solicitation Instructions/Terms and Conditions that
are available through the link on the BIDS solicitation page.
The recommendation of the