Title
Collection Services Contract - RFQu-24-0279 - Request for Award (Ordinance S-51431) - Citywide
Description
Request to authorize the City Manager, or his designee, to enter into contracts with Ability Recovery Services, LLC, Cedars Business Services, LLC, Evergreen Professional Recoveries Inc., FDR Alliance LLC, FirstPoint Collection Resources, Inc., I.C. System, Inc., Ray Klein, Inc. dba Professional Credit, RSI Enterprises, Inc., and Valley Collection Service, LLC to provide collection services for departments citywide. Further request to authorize the City Controller to disburse and the City Treasurer to collect all funds related to this item. The total value of expenditures under the contracts will not exceed $510,000. Over a five-year term, the estimated aggregate revenue from debts collected is $764,000 to the City.
Report
Summary
These contracts will serve to alleviate the City's limited debt collection resources by monitoring, reporting, and recovering outstanding debts. Debt collection accounts are referred to contractors based on the type and age of the debt. The City's major types of debt are General Accounts Receivable, Fire Department Emergency Transportation Services, and Municipal Services. Typically, fees associated with debt collection are covered through payments received by the collection agency, although occasional billing to the department directly may occur. Overall, these debt collection contracts provide a strategic and efficient approach for the City to manage outstanding debts, maintain financial stability, and allocate resources effectively.
Procurement Information
RFQu-24-0279 Collection Services was processed in accordance with Administrative Regulation 3.10 to establish a Qualified Vendor List (QVL).
Ten offerors submitted statementss of qualifications and nine were deemed to be responsive and responsible. The Procurement Officer evaluated those statement of qualifications based on the following minimum criteria:
Experience
Method of Approach
Capacity
After review of the statement of qualifications, the Procurement Officer recommends award to the following offerors:
- Ability Recovery Services, LLC
- Cedars Business Services, LLC
- Evergreen Professional Recoveries Inc.
- FDR Alliance LLC
- FirstPoint Collection Resources, Inc.
- I.C. System, Inc.
- Ray Klein, Inc. dba Professional Credit
- RSI Enterprises, Inc.
- Valley Collection Service, LLC
Contract Term
The contracts will begin on or about January 1, 2025, for a five-year term with no options to extend.
Financial Impact
The estimated aggregate value of revenue generated for the City over the term of the contracts is approximately $764,000, which amounts to estimated annual revenues of $152,800. The total value of expenditures under the contracts shall not exceed $510,000.
Funding is available in the various departments' operating budgets.
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton and the Finance Department.