DEBT COLLECTIONS NON MANDATORY FOR STATE AGENCIES NON-MANDATORY FOR POLITICAL SUBDIVISIONS Term: November 1, 2010 through October 31, 2011 Renewals Remaining: One one-year renewal The Division of General Services has established this contract to provide Debt Collection services to various state agencies in Alaska. The contract provides for collections services for a variety of debt that may be owed to the state. This includes a variety of taxes, permanent fund dividend checks, license fees, fines, penalties, late payments, defaulted non-guaranteed education loans, fees assessed due to damage of state property, NSF checks, and any other funds that may be owed to the state. Location Vendor Contract Number Phone Number Contact Statewide NCO Financial Systems 2008-9900-7429 800-935-2077 x3250 Chris Mason Contract pricing is percentage based. The percentage rate for this contract is 14% of the actual funds collected. There are two agency payment methods available to choose from. 1. Contractor retains the 14% collection fee percentage of the collected funds prior to remitting the collected funds to the referring agency. 2. Referring agencies issue a monthly check based on the 14% collection fee of the amount of funds collected by the contractor and remitted to the referring agency. For more information, contact: Victor Leamer - Contracting Officer State of Alaska 907-465-5678 DEBT COLLECTIONS NON MANDATORY FOR STATE AGENCIES NON-MANDATORY FOR POLITICAL SUBDIVISIONS The following Terms and Conditions apply to contract 2008-9900-7429 for the provision of services required for Debt Collection of funds owed to the state. While this document contains the various terms and conditions that apply to the above contract, it is not intended to be the complete contract. PURPOSE: The Department of Administration, Division of General Services is soliciting proposals for a vendor to provide Debt Collection Services. This Request for Proposals (RFP) is intended to result in a non-mandatory use contract for the successful offeror to perform the collection of funds owed to the state. All other State of Alaska governmental entities may, at their option, utilize the services provided under the contract resulting from this RFP including other State of Alaska governmental entities, such as the Alaska Legislative Branch, the Alaska Court System, the University of Alaska, Boards and Commissions, and all State of Alaska political subdivisions - cities, boroughs and school districts. CONTRACT ADMINISTRATION: The administration of this contract is the responsibility of the Division of General Services’ Contracting Officer. ASSIGNMENT OF ACCOUNTS: If your agency has past due debt that it wishes to assign to a collection agency, the following individual should be contacted: NCO Financial Systems, Inc. Chris Mason, Assistant Vice-President 800-935-2077 x3250 email@example.com Once contacted, NCO will develop and implement a process to transfer the collectibles to the NCO system and the collection process will begin. Regardless of the volume of accounts assigned, the accounts individual value or the total amount assigned, NCO either retains, or the state remits 14% of the actual amount collected. COLLECTION OF ACCOUNTS: Upon assignment of an account, the contractor shall promptly undertake, through all proper and lawful means, the collection of accounts referred to it by agencies without regard to the amount due on an account. During the collection of an account, the contractor agrees to conduct the collection process with courtesy and in a businesslike manner. The contractor shall treat all parties in a fair and equitable manner and ensure compliance with all federal, state, and local laws and regulations per section 5.02.11 of the RFP. COLLECTED FUND REMITTANCE: Once a referring agency assigns past due accounts to the contractor, the contractor will begin the debt collection process. As the contractor collects the past due monies, the contractor shall remit the collected funds to the state either electronically or by check. The agency shall determine the remittance method when originally assigning the accounts. In addition, the referring agency shall also indicate how often the contractor shall remit the collected funds. The remittance schedule shall be either weekly, monthly, or upon the collection of funds. PAYMENT: Payment to the contractor may be accomplished in one of two manners. Upon assignment of accounts to the contractor, the referring agency must select from the following options: Method One: 1. Payment is submitted by the client to the contractor. 2. Contractor remits collected funds to the referring agency based on the frequency selected by the referring agency as described in Section 5.06.02 of the contract. 3. Contractor retains the collection fee percentage of the collected funds prior to remitting the collected funds to the referring agency. 4. No monthly payment is made by an agency to the contractor under this method. 5. A monthly statement as detailed in Section 3.08 of the contract will be issued to agencies choosing this method. A sample monthly statement may be viewed in Attachment C. Method Two 1. Payment is submitted by the client to the contractor. 2. Contractor remits 100% of the collected funds to the referring agency based on the frequency selected by the referring agency as described in Section 5.06.02 of the contract. 3. Referring agencies issue a monthly check based on the collection fee percentage offered in response to this RFP of the amount collected during the previous month. 4. A monthly invoice as detailed in Section 3.08 of the contract will be issued by the contractor to agencies choosing this method from the contractor. A sample invoice may be viewed in Attachment C. REPORTING: The following reports must be provided to the Contract Administrator or Project Director. While the state prefers the reports to be submitted in a Microsoft Excel format, the form and format of the required reports may be altered with the prior agreement of the Contract Administrator or Project Director. In addition to the defined reports, a variety of ad-hoc reports may be requested by using agencies. Ad- hoc reports shall be produced by the contractor at no cost to the state. The due date of ad-hoc reports will be negotiated by the contractor and the agency requesting the report at the time of request. 1. Annual Assigned Accounts Report: This report must indicate the number of accounts assigned to the contractor by each using agency over the previous year and the value of the accounts at the time of assignment. This report must be submitted to the Contract Administrator electronically by July 31 of each year. This report must include separate line items for Political Subdivisions of the state. 2. Monthly Assigned Accounts Report: This report must indicate the number of accounts assigned to the contractor by each using agency over the previous month and the value of the accounts at the time of assignment. This report must be submitted to the Project Director at each referring agency electronically within ten days of the end of the previous month. 3. Demographic Changes Report: On a semi-annual basis, the contractor must provide the Project Director at each agency that has referred an account(s) for collections, an electronic report in a format requested by the agency that indicates all changes in demographic information. Demographic information could include, but is not limited to the following, name changes, address, phone number, work status, or any other change that could be considered demographic in nature. This report must be submitted to the Project Director at each referring agency electronically within ten days of the end of the previous month. 4. Annual Collection Status Report: This report must indicate the total amount collected for each using agency over the previous year. This report must also indicate the collection fee retained by the contractor or paid by the state to the contractor for the reporting period. This report must be divided by referring agency. This report must be submitted to the Contract Administrator electronically by July 31 of each year. This report must include separate line items for Political Subdivisions of the state. 5. Monthly Collections Status Report: This report must indicate the total amount collected for each using agency during the previous month. This report must also indicate the collection fee retained by the contractor or paid by the state to the contractor for the reporting period. This report must be submitted to the Project Director at each referring agency electronically within ten day of the end of the previous month. The Monthly Collections Status Reports provided to each referring agency must include the following information at a minimum. a. A complete list of accounts held by the contractor. b. Client name and address c. The date the account was assigned to the contractor. d. Contractor assigned account number. e. Agency assigned account number. f. Original outstanding amount and current balance due amount. g. Collection fees that have been retained by the contractor or paid by the agency for each account. h. Documentation from the referring agency if a collection amount less that than the original outstanding amount has been authorized by the agency. i. Accounts recommended for closure by the contractor and an explanation of why the recommendation has been made. j. Number of accounts the contractor considers in suspense status and an explanation why the contractor considers the account in suspense status. k. The number and identity of the accounts that have not been worked by the contractor in the previous month and an explanation why the accounts have not been worked. l. The number of accounts recalled by the referring agency during the previous month. 6. Account Closure Report: Once per month, the contractor shall provide each referring agency an electronic file of accounts that been closed since the previous month. This report must be submitted to the Project Director at each referring agency electronically within ten day of the end of the previous month. The file must include a complete account history including the following data: a) Name of the client b) Current or last known address c) Current or last known telephone numbers d) Source of debt e) Complete payment history, including the payment dates DEFINITIONS: ACPE: Alaska Commission on Post-Secondary Education. The ACPE offers a variety of alternative educational loans to Alaska residents. Agency: An agency is a State of Alaska Executive Branch governmental entity and all other governmental entities such as the Legislative Branch, the Alaska Court System, the University of Alaska, Boards and Commissions, and all State of Alaska political subdivisions - cities, towns, boroughs and school districts. Alternative Education Loan: An Education Loan that has never been federally guaranteed. ACA: American Collections Association. The international trade association of third-party debt collection businesses. Client An individual or entity that, at the time of account assignment to the contractor, currently owes the State of Alaska funds that are considered past due. Collections: Collections includes all activities undertaken by the state or the contractor in an effort to collect money that is past due. Collection activities utilized by the contractor and their agents shall comply with Section 5.02.11 of this RFP. Collection Account: A collection account is a past due account that the client has failed to, or has stopped making payments on. Collection Fee: The collection fee is the percentage offered in response to this RFP that the contractor shall be compensated by the state from each dollar collected from past due accounts. The collection fee must include all of the contractor’s fixed and variable costs such as overhead, legal fees, labor, profit, etc. Contract Administrator: The Contract Administrator is the Department of Administration, Division of General Services, Contracting Officer responsible for the administration of the contract intended to result from this RFP. The Contract Administrator retains the sole authority to issue amendments to the contract established by this RFP. Contract Executive Manager: The Contract Executive Manager is an employee of the contractor and is responsible for the overall contract operations on a statewide basis. The Contract Executive Manager is the main point of contract for each agency that refers a past due account to the contractor and must have the authority to resolve day to day issues that require a decision from the contractor. Imminent Payment: An Imminent Payment is a payment that is received by the agency or contractor within 30 days of an account being recalled per Section 5.03.01 of this RFP. The contractor must provide documentation that verifies the payment is imminent in order to be paid or retain the collection fee. Legal Action: Action taken a private legal firm or attorney through the court system with the prior approval of the referring agency to collect a past due debt. Past Due: Any amount of money owed to the State of Alaska that is more than 90 days beyond the original due date. Primary Placement: An account assigned to the contractor for collections. For the purposes of this contract, all accounts that are assigned to the contractor are considered Primary Placements. Project Director: The Project Director is the employee designated by each agency that refers an account to the contractor for the purposes of day to day communication with the contractor. Success Rate: For the purposes of this contract, the Success Rate is determined by dividing the amount collected minus the collection fee retained by the contractor over a specific period of time by the amount assigned over the same time period.
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