Title
Collection Services (Ordinance S-44972)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with I.C. System, Inc., Valley Collection Service, LLC, Account Control Technology, Inc., Ability Recovery Services, LLC, AllianceOne Receivables Management, Inc., Financial Asset Management Systems, Inc., Transworld Systems, Inc., Penn Credit Corporation, and Integral Recoveries, Inc., to provide collection services, in an amount not to exceed $234,600. Further request authorization for the City Treasurer to accept, and the City Controller to disburse, funds for the life of the contract.
Report
Summary
Contractors will offset the City's limited debt collection resources by providing accurate debt collections, and monitoring and reporting debts. Debt collection accounts are referred to contractors based on the type and age of the debt, which is generally after 35 days. The City's major types of debt are General Accounts Receivable, Fire Department Emergency Transportation Services, Municipal Services, including: Water, Wastewater, and Refuse; Transaction Priviledge Tax, library books, police false alarms and damage claims of City property.
All fees associated with the debt collections are paid through payments received by the collection agency, except for the Fire Department Emergency Transportation Services, which is billed for the services and paid by the City.
Procurement Information
RFQu 18-291 Collection Services was conducted in accordance with Administrative Regulation 3.10. The solicitation was emailed to 42 vendors and was posted on the City's website. Twelve offers were received by the Procurement Division on June 15, 2018.
The Deputy Finance Director recommends the offers from I.C. System, Inc., Valley Collection Service, LLC, Account Control Technology, Inc., Ability Recovery Services, LLC, AllianceOne Receivables Management, Inc., Financial Asset Management Systems, Inc., Transworld Systems, Inc., Penn Credit Corporation, and Integral Recoveries, Inc. to be accepted for the Qualified Vendor List.
Contract Term
The five-year contract will begin Jan. 1, 2019.
Financial Impact
The aggregate contract value of the revenue generated for the City of Phoenix is approximately $1,380,000, with estimated annual revenues of $276,000. The aggregate five-year contract value for Fire Department collection services shall not exceed $234,600. Funds are available in the Fire Department's budget.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.