STATE OF COLORADO€¦ · Web viewState of Colorado. Department of Personnel & Administration...

STATE OF COLORADO

RFP-13-ACA-021-A-JW

Licensed Debt Collection

RFP-13-ACA-021-A-JW


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:


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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

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