See Page 20, for instructions on submitting proposals.

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1 State of Nevada Jim Gibbons Department of Administration Governor Purchasing Division 515 E. Musser Street, Suite 300 Greg Smith Carson City, NV Administrator Division of Purchasing Request For Proposal No for DEBT COLLECTION SERVICES Release Date: April 25, 2008 Deadline for Submission and Opening Date and Time: May 30, 2:00 p.m. For additional information, please contact: Colleen G. Janes, Purchasing Officer (775) (TTY for the Deaf or Hard of Hearing: Ask the relay agent to dial /V.) This document must be submitted in the State Documents section/tab of vendors technical proposal See Page 20, for instructions on submitting proposals. Contact Information Company Name Address City State Zip Telephone ( ) Fax ( ) Address: Prices contained in this proposal are subject to acceptance within calendar days. Contact Person Print Name & Title Page 1 of 51 Revised08/06/04

2 TABLE OF CONTENTS 1. OVERVIEW OF PROJECT ACRONYMS/DEFINITIONS SCOPE OF WORK COMPANY BACKGROUND AND REFERENCES COMPENSATION PAYMENT SUBMITTAL INSTRUCTIONS PROPOSAL EVALUATION AND AWARD PROCESS TERMS, CONDITIONS AND EXCEPTIONS SUBMISSION CHECKLIST Attachment A Attachment B Attachment C Attachment D Attachment E Debt Collection Services RFP No Page 2

3 A Request for Proposal process is different from an Invitation to Bid. The State expects vendors to propose creative, competitive solutions to the agency's stated problem or need, as specified below. Vendors may take exception to any section of the RFP. Exceptions should be clearly stated in Attachment B (Certification of Indemnification and Compliance with Terms and Conditions of RFP) and will be considered during the evaluation process. The State reserves the right to limit the Scope of Work prior to award, if deemed in the best interest of the State NRS (1). 1. OVERVIEW OF PROJECT 1.1 Chapter 353C of Nevada Revised Statutes authorizes the collection of debts owed to state agencies. The State may contract with a private debt collector for the assignment of the collection of a debt owing a State agency pursuant to NRS 353C.200, which provides: Except as otherwise provided in subsection 1.1.2, an agency may enter into a contract with a private debt collector or any other person for the assignment of the collection of a debt if the agency: Determines the assignment is likely to generate more net revenue than equivalent efforts by the agency to collect the debt, including collection efforts pursuant to this chapter Determines the assignment will not compromise future collections of state revenue Notifies the debtor in writing at his address of record that the debt will be turned over for private collection unless the debt is paid An agency shall not enter into a contract with a private debt collector or any other person for the assignment of the collection of a debt if the debt has been contested by the debtor. The Controller shall consider a debt to be contested by the debtor if the debtor or his agent disputes the existence of the debt or its amount A contract for the assignment of the collection of a debt may provide for: Payment by the agency to the private debt collector or other person of the costs of collection and fees for collecting the debt; or if the debt exceeds $200, collection from the debtor of the costs and fees actually incurred to collect the debt in an amount not to exceed 25 percent of the amount of the debt or $25,000, whichever is less (NRS 353C.135) Any contract entered into pursuant to this section is subject to approval by the director of the Department of Administration and the State Controller. 1.2 In addition, the general authority of a State agency to utilize a private debt collector pursuant to NRS 353C.200 is limited by the source of revenue constituting the debt and the specific authority of the agency to collect the debt. Debt Collection Services RFP No Page 3

4 The purpose of the Request for Proposals is to enter into a statewide contract with a qualified firm or firms to recover monies from delinquent receivables. A statewide contract allows political subdivisions (including City, County, School Districts, Universities, etc.) to utilize the services under the statewide contract. Accounts are held by various Nevada State agencies and boards. The accounts typically have been through the agencies collection process. No information is available relative to accounts that may reside in political subdivisions. The State Controller may propose legislation to assume more control over managing the State s accounts receivable process, including the in-house collection process. If it is determined to be in the best interest of the State, multiple awards may be made for services as a result of this request for proposal. Contractors are encouraged to propose on all or part of the services we are seeking; however, the State reserves the right to accept or reject any part of any proposal and to accept or reject any or all proposals received prior to contract award without penalty (NRS ). The contract(s) resulting from this RFP will be for a period of four (4) years and will be administered by the State Controller s Office or other contracted agency. 2. ACRONYMS/DEFINITIONS For the purposes of this RFP, the following acronyms/definitions will be used: Awarded Vendor Confidential Information The organization/individual that is awarded and has an approved contract with the State of Nevada for the services identified in this RFP. Any information relating to the amount or source of any income, profits, losses or expenditures of a person, including data relating to cost or price submitted in support of a bid or proposal. The term does not include the amount of a bid or proposal. See NRS (5)(b). Evaluation Committee LOI May NAC NRS An independent committee comprised of a majority of State officers or employees established to evaluate and score proposals submitted in response to the RFP pursuant to NRS Letter of Intent - notification of the State s intent to award a contract to a vendor, pending successful negotiations; all information remains confidential until the issuance of the formal notice of award. Indicates something that is not mandatory but permissible. Nevada Administrative Code Nevada Revised Statutes NOA Notice of Award- formal notification of the State s decision to award a Debt Collection Services RFP No Page 4

5 contract, pending Board of Examiners approval of said contract, any nonconfidential information becomes available upon written request. NSF Proprietary Information Public Record RFP Shall/Must/Will Should State Subcontractor Trade Secret Vendor Non-Sufficient Funds Any trade secret or confidential business information that is contained in a bid or proposal submitted on a particular contract. All books and public records of a governmental entity, the contents of which are not otherwise declared by law to be confidential (see NRS and NRS 600A.030(5)) must be open to inspection by any person and may be fully copied or an abstract or memorandum may be prepared from those public books and public records. Request for Proposal - a written statement which sets forth the requirements and specifications of a contract to be awarded by competitive selection NRS (8). Indicates a mandatory requirement. Failure to meet a mandatory requirement may result in the rejection of a proposal as non-responsive. Indicates something that is recommended but not mandatory. If the vendor fails to provide recommended information, the State may, at its sole option, ask the vendor to provide the information or evaluate the proposal without the information. The State of Nevada and any agency identified herein. Third party, not directly employed by the vendor, who will provide services identified in this RFP. This does not include third parties who provide support or incidental services to the vendor. Means information, including, without limitation, a formula, pattern, compilation, program, device, method, technique, product, system, process, design, prototype, procedure, computer programming instruction or code that: derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by the public or any other person who can obtain commercial or economic value from its disclosure or use; and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. Organization/individual submitting a proposal in response to this RFP. 3. SCOPE OF WORK Debt Collection Services RFP No Page 5

6 The State of Nevada currently has an approximate 120 million dollars in delinquent debt. In 2007, The Nevada State Controller s Office referred to collection approximately 15,000 accounts. The accounts referred consist of fines, fees, penalties, past due accounts and NSF checks. The dollar amounts of the accounts varying from $25 to $840,000 each. The Controller s Office anticipates an increase in the volume for future accounts. The type of accounts presently being referred for collection services are with consumers, former state employees, commercial enterprises or third party taxpayers. The age of the accounts will vary, but generally range from ninety (90) days past due up to the statute of limitations (if any). Award of a contract will not guarantee a fixed payment or contract amount, rather it will define the percentage of collected revenue the State Controller s Office will base payments on, subject to the awarded vendor s successful performance of the scope of work and the terms and conditions outlined in this RFP. Payments on the contract will be based on the percentage of collected revenue and may include incentives based on timeliness of collections and amount of collections. Payment of such incentives may depend on efforts to enact legislation to increase the state s flexibility to incur costs to collect debts. Legislation or budgeted funding may be required to increase collection fees and costs beyond the limitations described in NRS 353C.135. State agencies are responsible for making diligent efforts to collect legislatively authorized receivables and debts due the State of Nevada, maintaining records for all accounts receivable, debts and other legislatively authorized charges for goods or services and maintaining records of all damages or other monetary losses sustained by the state agency. Vendors understand and agree that even though the debt collection services offered by the awarded vendors are available to any state agency, there shall be no contractual obligation or guarantee that debt collection services will be retained by the State Agencies. Neither a state agency nor a contracted debt collection agency has authority to write-off bad debts. Requests for write-offs must be submitted to the State Controller s Office or contracted client and may be subject to approval by the State Board of Examiners (NRS 353C.220) or the Tax Commission (NRS ). A contracted debt collection agency may not negotiate a settlement of a debt without approval from the State Controller s Office or contracted client and, where applicable, the State Board of Examiners (NRS 353C.220) or the Tax Commission (NRS ). The State Controller may propose legislation to increase the state s ability to discount debts in order to increase collections, but if enacted, such legislation will still likely require some type of state approval before such discounts may be negotiated. 3.1 General Provisions The General Provisions of the Scope of Work are as follows: Awarded vendors, subcontractors, agents and collection employees must comply with all federal and state general or special law relating to the provision of debt collection services including, but not limited to, the following: Chapter 353C of the Nevada Revised Statutes; Debt Collection Services RFP No Page 6

7 Chapter 649 of the Nevada Revised Statutes; Fair Debt Collection Practice Act 15 US 1601 et seq.; Federal Bankruptcy Code; State and Federal Wages Garnishment Law; Violation of any federal or state general or special law or regulation governing the fair collection of debts, whether related to accounts covered under the awarded contract or other accounts handled by the awarded vendor, may be grounds for termination of the contract Additionally, under no circumstances shall vendor(s) attempt to make collections by coercion or threat of legal action. Vendors may not hire outside counsel without notifying the State Controller s Office or other contracted agency The awarded vendor(s) shall be an independent contractor as defined by the Internal Revenue Service The State retains the right to withdraw accounts six (6) months after assignment and may reassign these accounts to another awarded vendor The State operates a debt offset program for the collection of debt from State payables. If a debt or a portion of the debt becomes recoverable through the debt offset program, the State reserves the right to withdraw the debt or recoverable portion from collection services. No collection fee shall be paid to the vendor on the amount collected through the debt offset program Vendor will adjust the principal amount of the claim if the State Controller s Office and /or other agency later revises the amount of the claim. The contingent fee collection amount charged will be calculated on the revised amount of the claim No collection fee shall be paid to the vendor on accounts that are deferred, postponed or canceled No collection fees shall be paid to the vendor on accounts that are referred for collection, but on which the agency receives payment prior to any collection efforts being performed by vendor Vendor agrees to suspend action either temporarily or permanently on any account referred for collection upon notification of bankruptcy. Vendor must refer any notice of bankruptcy received within five (5) business days. Vendor shall consult with the State Controller s Office or other contracted client and file a claim in the bankruptcy proceeding, if appropriate Accounts cannot be co-mingled. Debt Collection Services RFP No Page 7

8 The awarded vendor shall designate a Collection Account Manager who will be responsible for the accounts referred under the debt collection contract(s) The accounts submitted to the vendor for collection should be entered into the vendor s database within three (3) business days Vendor shall respond within three (3) business days to complaints or inquiries the Controller s Office transmits to the vendor Vendor is permitted to enter into payment agreements with the debtor only upon agreement by the State Controller s Office or other state agency The vendor shall be responsible to the Controller s Office for any embezzlement, fraudulent, dishonest, vandalism, and malicious mischief act or acts by the vendor and its employees during the term of the Contract. The vendor shall guarantee the confidentiality, security, and safety of all files, documents, computer files and other records pertaining to the Services Vendor shall reimburse the Controller s Office for any amount which becomes uncollectible which is lost due to any act or omission of the vendor or its officers, agents, or employees. Such acts or omissions may include, but are not limited to, accepting a compromise settlement for less than the total amount due without authorization of the Controller s Office or the state agency and acknowledging that a payment constitutes payment in full when in fact the debt or account is not paid in full Upon the termination of any resulting agreement, the vendor shall return all accounts to the Controller s Office and any payments received by the vendor after such termination date shall be sent to the Controller s Office without a fee charge All provisions of this RFP and any subsequent contract with vendor will also apply to all vendors subcontractors. Vendor will monitor subcontractor activities to ensure compliance with these provisions The awarded vendor shall be prepared to travel wherever necessary in order to maximize recovery of the government s receivables Awarded vendor(s) providing collection services must conduct their business for the State in a professional manner. If available, an agency may provide office space to the vendor(s). Vendor(s) shall be responsible for all operating expenses, including but not limited to phone services, computers, office equipment, and supplies Awarded vendor(s) and their subcontractors shall be responsible for all travel costs and related expenses associated with these Scopes of Work (including transportation, hotels, parking, taxis, meals and incidental expenses, etc.) unless prior written authorization from the Controller s Office is received. Debt Collection Services RFP No Page 8

9 Awarded vendor(s) and their subcontractors shall be responsible for all administrative costs related to filing judgments, bankruptcy claims, liens, garnishment, bank attachment filing, and attachable assets The State requires experienced forensic accountants and the application of informational databases in an effort to enhance the recoveries of individual delinquent receivables. Vendors do not have to propose on the forensic portion of this scope of work; but, should they choose to do so, they must also propose on the rest of the scope of work as well. Vendors should make it clear in proposals as to whether or not they are proposing on the forensic services. If proposing forensic services, the vendor agrees to perform an analytical study of why the receivable was not paid and a determination of the likelihood of the receivable being paid in the near future and the possible remedies of recovery, including other parties or other assets that may be attached. Vendors must submit references in accordance with section 4.2 for similar projects performed for private, state and/or large local government clients Awarded vendor(s) shall provide an Implementation Plan within thirty (30) days after award of the contract. The Plan shall include, at a minimum, the following: o Proposed operations start-up process, including a time-line schedule with dates and major milestones to be accomplished. o Description for start-up process of the debt-collection services. o Description of a potential expansion of debt-collection services to support higher collection volumes The Controller s Office may use a Performance Plan to measure the effectiveness of the vendor s collection efforts. o The initial Performance Plan shall be developed jointly with the vendor within three (3) months of award of contract. Monitoring and adjustments to these performance measures will continue during the first six months of the start-up, and may continue later at the discretion of the Controller s Office. o Mutual agreement between the Controllers s Office and the vendor on the final performance measures shall be established at the end of six months of the award Conducting a forensic investigation includes, but is not limited to, the following: Searching online assets in calculating past and present economic worth. Identifying related parties as responsible parties or recipients of monies. Debt Collection Services RFP No Page 9

10 Preparing flow of fund type worksheets through review of financial records as a means of tracing monies and ultimately determining why the debt was not paid. Identifying assets acquired through commingling of funds. Conducting interviews with people associated with the accounts. Assembling the information in a case write-up format and obtaining necessary authorizations when appropriate from the State s Attorney General s Office. Developing loss recovery theories The vendor shall testify upon request by the State at court proceedings in conjunction with the recovery action, or on behalf of certain legislation related to receivable recoveries Settlement of Claim --- Awarded vendor shall not represent or render services with regard to settlement, adjustment or compromise of any of the cases/claims referred pursuant to this Agreement, unless prior written authorization is received from the Controller s Office; the vendor shall make every effort to collect the full amount outstanding pursuant to this agreement. Settlements are subject to approval by the State Controller s Office or contracted client and may be subject to approval by the State Board of Examiners Awarded vendor(s) may be requested to: Attend briefings with individuals from the State Controller s Office and other state agencies to discuss the status performance or what may be required to present written programmatic and fiscal status reports detailing work performed, recommendations, complaints and performance issues Meet with individuals from the State Controller s Office and other state agencies to gather information on past efforts, condition of files, current status of debts and recovery efforts on selected accounts Provide management consultation and professional advice to the State Controller s Office on special focus areas regarding its approach to managing, integrating and coordinating activities relative to intercept or offset programs, litigation of debt collection, settlement procedures and bad debt write-offs. Debt Collection Services RFP No Page 10

11 Awarded vendor(s) and subcontractors agree to attend any required training sessions conducted by the State Controller s Office or the Attorney General s Office on fair debt collection practices At a minimum, the awarded vendor(s) will provide the following: Location services to the State Controller s Office or other contracted client, if requested, in order that due process notice as required by law is complete prior to collection services Compliance with current restrictions which apply to the State Controller s Office and State Agencies in: Compromising or negotiating for less than the full debt amount unless such compromise or negotiation is approved by the State Controller s Office or other designee. Using collection procedures which shall include but not be limited to telephone calls, mailing efforts, skip-tracing, filing judgments, bankruptcy claims, liens, garnishments, asset search and attaching bank accounts in compliance with all applicable federal and State laws and regulations. Assisting agencies in establishing cost-effective debt collection procedures for non-tax revenue that will maximize the recovery of delinquent debts owed the State of Nevada Attempt the collection of the delinquent receivable plus any applicable penalty, service charge and interest due the State as computed by the assigning agency, State Controller s Office and/or authorized by NRS Refer back to the State Controller s Office or other contracted client any accounts which involve multiple or chronic indebtedness to the State, several Agencies or suspected fraud. Any payment received by either the State Controller s Office or the awarded vendor for such claim within sixty (60) calendar days after the date of notification of referral shall be subject to the collection fee charge on the amount of payment received Return to the State Controller s Office or other contracted client, upon written request, all claims requiring suspension of action. However, any payments received by either the State Controller s Office or the awarded vendor for such claim within sixty (60) calendar days of the suspension notification date shall be subject to the collection fee charge on the amount of payment received. Debt Collection Services RFP No Page 11

12 Forward to the State Controller s Office and/or agency for verification any disputed or contested accounts and/or where the awarded vendor is not satisfied the debtor owes the liability or the debtor requested verification of the debt. The State Controller s Office and/or agency will within five (5) business days verify the liability and notify the awarded vendor of its findings. During the verification process, the awarded vendor will suspend any active contact with the debtor Take all appropriate actions on each case until the awarded vendor determines the account is uncollectable, paid in full, or requested to be returned by the State Controller s Office and/or agency. When an awarded vendor returns an account in the event it is unable to collect, a detailed explanation for that conclusion should be included, and if the awarded vendor is not authorized to pursue litigation services, return any claim which warrants further action for discharge or settlement through litigation Ensure that all contact and correspondence with the debtor are performed in a courteous and considerate manner. The State Controller s Office reserves the right to investigate and ultimately cancel a contract upon verification of repeated complaints Comply with all applicable federal and state general and special laws and regulations relating to debt collection services and the confidentiality and privacy of the personal information contained in debt collection accounts. The awarded vendor shall establish controls to preclude inadvertent or intentional disclosure of debtor information, and the use of debtor information for purposes other than specified under the contract Consider and treat all case records as the property of the State Controller s Office or contracted client. An awarded vendor shall maintain complete and accurate records of collection service transactions in accordance with accepted industry standards and the requirements in this RFP. An awarded vendor shall keep all such financial records and Statements pertaining to the collection service operations for the State Controller s Office or contracted client in a safe and secure manner. The vendor will surrender these records to the State Controller s Office within seven (7) business days of receipt of a written request or upon contract termination. All case records shall be available for inspection and audit without prior notice by the State Controller s Office or its appointed representative(s) Allow the State Controller s Office, or designee, upon three (3) business days notice to enter an awarded vendor s premise during normal working hours to inspect, monitor or otherwise evaluate its Debt Collection Services RFP No Page 12

13 work performance. The State Controller s Office shall have the right to independently verify an awarded vendor s activities through direct contact with debtors or other means without notice to an awarded vendor The vendor shall provide a system to the Controller s Office that will allow the Controller s Office to monitor collection activities and histories. The system must permit the Controller s Office to download reports with current information on the assigned accounts in order to track payments received or promised, track payment plans, track new account placements, view collector s notes and activities, view current account status and history. The system must permit searches by date placed, debtor name, debtor number or client number, status, amount owed, amount paid, and date file last worked The vendor is responsible for initiating legal action against any debt owed to the State of Nevada if so instructed by the Controller s Office. The vendor shall identify possible attachable assets, locate those assets, and then prepare the necessary paperwork to actually execute on these assets. This includes repossession, garnishment, bank attachment, liens and other remedies according to normal rules and time frames. The vendor shall submit to the Controller s Office a list of all judgments, bankruptcy claims, liens and garnishment filed by the vendor The vendor shall maintain a comprehensive system to report account status, collection statistics and other information as required by the Controller s Office on a daily, monthly, and/or quarterly basis as set forth below. Additional reports may be required by the Controller s Office. The vendor shall maintain confidentiality of all documents and information provided to the vendor by the Controller s Office. The vendor shall be flexible in accommodating program and report changes as required by the Controller s Office: Listed below are the reports that the Controller s Office will require in detail. Status Reports: for each referring agency, the vendor shall submit a monthly status report which must be received on or before the tenth of the month following each month s end, reflecting the following: o Current month placement, include placement in number of accounts and dollar amount, o Cumulative activity of all accounts placed with their firm, o Age of the debt, o Current month payments, Debt Collection Services RFP No Page 13

14 o Total payments made to date and the percentage of debt paid, o Total amount of accounts returned as uncollectible, o Current outstanding balance, and o Amount of fees collected. Detail Assignment Report: The report shall clearly identify each account in a form approved by the State Controller s Office showing the: o Amount and type of the debt referred, o Referring state agency, o Information on the debtor, o Date the account was assigned, o Vendor s assigned account number, o Original outstanding amount and current balance due amount, o Amount of fee collected by the vendor, o Age of the debt, o Payments made to date, o The number of accounts returned to the referring state agency, o Any other pertinent information history, collection efforts, plan of action, whether debt has been reported to a credit reporting agency, etc. Close Report: for each referring agency, the vendor shall submit a monthly Close Report. This report will show the account status, including: the name of the referring agency, the debtor s name, the case number, the amount paid, or/and the reason for closing the account. Legal Action Report: the vendor shall submit a Legal Action Report on a quarterly basis. This report will show the list of legal actions initiated by the vendor. The list shall include the type of debt, the name of debtor, and the total amount of the filing judgments, bankruptcy claims, liens, asset search, garnishment or other collection proceeding. Analysis Report: The vendor shall submit an analysis report on a quarterly basis to show the level of success on the collection process. Account Acknowledgement Report: for each referring agency the vendor shall submit an Account Acknowledgement Report on a weekly basis. This report is due within one week of receiving accounts for placement into active collection. The detail for each batch of accounts referred shall include: The Debt Collection Services RFP No Page 14

15 name of the referring agency, the name of each debtor, the case number, the total dollars referred, total number of accounts referred and total dollar listed. Remittance Statement Report: The vendor shall submit this report on a monthly basis, and the report and money must be received by the Controller s Office no later than the 15 th day of the month in which the money is due. Remittance should be spread out over the month for the previous month s collections. Remittance should include the referring agency name, debtor s name, account number, payment date, amounts paid, the collection fee paid for each account, total principal amount collected and total fees collected. (Refer also to Section 5) Daily Electronic Collection Report: The vendor shall submit this report on a daily basis to show daily payments received. The report list shall include the referring agency name, the name of the debtor, account number, and the amount paid. Electronic System Reconciliation: The vendor shall participate in monthly electronic account data reconciliation as requested by the Controller s Office. If after account reconciliation is completed and a discrepancy is found, the vendor will update account balances on their system to agree with the Controller s Office account balances. The vendor must submit to the Controller s Office within three (3) business days a discrepancy file corrected in a Microsoft Excel format For the quarterly reports listed above, the State s quarters are listed below. Reports are to be submitted before the 15 th of the month following the end of each state fiscal quarter. Quarter: Quarterly Report Due: July 1 September 30 October 15 October 1 December 31 January 15 January 1 March 31 April 15 April 1 June 30 July Failure to provide these quarterly reports in a timely manner may result in the assessment of one or more of the following: 3.2 Technical Approach A fine of $5.00 per calendar day past the report submission date, to a maximum of $ per quarter; Contract suspension; and Contract termination. Debt Collection Services RFP No Page 15

16 Vendors must propose an overall, detailed approach to the performance of each of the following tasks outlined in this section. This approach should include a detailed description of the proposed collection services to be provided A description of the services to be provided to assist the State Controller s Office in establishing a cost-effective collection service which will maximize the percentage of recovery of the State s delinquent revenue claims A description of the time frame necessary to acknowledge receipt of assigned claims or accounts and to begin work on assigned claims A description of when and to what extent mailing, telephone and skip-tracing, filing judgments, bankruptcy claims, liens, garnishments, asset search, and other collection efforts will be used in terms of type, age and amount of assigned account A description of the criteria to be applied in determining when installment payment of debts will be offered and the maximum term of such payment plan agreements A description of the maintenance procedures forms and monitoring to be used for payment plan agreements A description of other collection efforts and when they would be used based upon the type, age and amounts of assigned accounts A description of the criteria according to which settlement for partial payment of a debt will be recommended A description of the criteria to be applied when debt collection efforts are no longer cost effective A description of the criteria proposed when reporting debts to a credit reporting agency, amount, age, etc A description of the procedures through which collection will be recommended for legal services or litigation, the criteria for determining the appropriateness of legal services or litigation and the mechanisms through which the State will be notified of the need for legal services, apprised of legal services status, including a description of the frequency and content of periodic reports to the State. Procedures for conducting legal services that may occur outside of the State of Nevada must also be described. Any contracting vendor shall not employ, retain or otherwise utilize legal counsel in the performance of any work within the scope of the contract without prior authorization from the State Controller s Office A description of the procedure and time frame for the return of any accounts to the State Controller s Office or other contracted client for circumstances detailed in Section 3.1, Scope of Work. Debt Collection Services RFP No Page 16

17 Examples of demand notices, letters, forms and telephone communication procedures and other methods used A description of any other relevant information supporting the vendors ability to perform the scope of work outlined in Section 3.1 of the RFP. Vendors may include descriptions of any additional services they may desire to provide. Such additional services may include: skip tracing, computer interface, courier pick-up service for reports and referrals, specialized collection reports or letters, financial reports on creditors, providing agency with "read only" computer access to clarify balances on assigned cases, etc. 4. COMPANY BACKGROUND AND REFERENCES 4.1 PRIMARY VENDOR INFORMATION Vendors must provide a company profile. Information provided shall include: Company ownership (sole proprietor, partnership, etc) Incorporated companies must identify the state in which the company is incorporated and the date of incorporation. Please be advised, pursuant to NRS , incorporated companies must register with the State of Nevada, Secretary of State s Office as a foreign corporation before a contract can be executed between the State of Nevada and the awarded vendor, unless specifically exempted by NRS The selected vendor, prior to doing business in the State of Nevada, must be appropriately licensed by the Department of Taxation, in accordance with NRS Disclosure of any alleged significant prior or ongoing contract failures, contract breaches, any civil or criminal litigation or investigation pending which involves the vendor or in which the vendor has been judged guilty or liable with the State of Nevada Location(s) of the company offices and location of the office that will provide the services described in this RFP Is your firm a resident of Nevada or a resident of another state? If so, please list the state of residence. Does your resident state apply a preference, which is not afforded to bidders or vendors who are residents in the state of Nevada? This information may be utilized in determining whether an inverse preference applies pursuant to NRS Number of employees both locally and nationally Location(s) from which employees will be assigned Name, address and telephone number of the vendor s point of contact for a contract resulting from this RFP Company background/history and why vendor is qualified to provide the services described in this RFP Length of time vendor has been providing services described in this RFP to the public and/or private sector. Please provide a brief description Has the vendor ever been engaged under contract by any State of Nevada agency? Debt Collection Services RFP No Page 17

18 [ ] Yes [ ] No If Yes, specify when, for what duties, and for which agency Is the vendor or any of the vendor s employees employed by the State of Nevada, any of its political subdivisions or by any other government? [ ] Yes [ ] No If Yes, is that employee planning to render services while on annual leave, compensatory time, sick leave, or on his own time? Resumes for key staff to be responsible for performance of any contract resulting from this RFP How many people will be assigned to work with our accounts? Identify the staff that will be involved in the performance of the proposed services and describe their credentials, relevant experience and indicate the functions that each person will perform Is the contractor currently involved in litigation with the State of Nevada? [ ] Yes [ ] No If Yes, please provide details of the litigation Financial information and documentation to be included in Part III of your response in accordance with the Submittal Instructions Dun and Bradstreet number Federal Tax Identification Number The last two - (2) years and current year interim: Profit and Loss Statement Balance Statement 4.2 REFERENCES Vendors should provide a minimum of three (3) references from similar projects performed for private, state and/or large local government clients within the last three years. Vendors are required to submit Attachment D, Reference Form to the business references they list. The business references must submit the Reference Form directly to the Purchasing Division. It is the vendor s responsibility to ensure that completed forms are received by the Purchasing Division on or before the proposal submission deadline for inclusion in the evaluation process. Business References not received, or not complete, may adversely affect the vendor s score in the evaluation process. The Purchasing Division may contact any or all business references for validation of information submitted Client name; Project description; Project dates (starting and ending); Staff assigned to reference engagement that will be designated for work per this RFP; Client project manager name, telephone number, fax number and address. 4.3 SUBCONTRACTOR INFORMATION Does this proposal include the use of subcontractors? Yes No Unknown If Yes, vendor must: Debt Collection Services RFP No Page 18

19 5. COMPENSATION Identify specific subcontractors and the specific requirements of this RFP for which each proposed subcontractor will perform services Provide the same information for any proposed subcontractors as requested in the Primary Vendor Information section References as specified above must be provided for any proposed subcontractors The State may require that the awarded vendor provide proof of payment to any subcontractors used for this project. Proposals should include a plan by which, at the State s request, the State will be notified of such payments Primary vendor shall not allow any subcontractor to commence work until all insurance required of the subcontractor is provided to the using agency Primary vendor must notify the using agency of the intended use of any subcontractors not identified within their response and receive agency approval prior to subcontractor commencing work. Note: All Cost Proposals shall be submitted to the State as a separate, sealed package and clearly marked: Cost Proposal in Response to RFP No. 1673, please refer to the Submittal Instructions for further instruction. Vendors shall not include cost information with the Technical Proposal. The awarded vendor shall be paid as a professional consulting firm on a performance-based arrangement and only from the receipt of recovered monies by the State or its assignee (such as a Trustee) for accounts identified and selected by the State Controller and state agencies and accepted by vendor. For the accounts the Controller s Office refers (except for those up to $200; see Section 1.1.3), the vendor shall add the vendor fee to the principal amount of the debt that the Vendor collects from the debtor. The vendor shall submit to the Controller s Office the principal amount of each debt after deducting and retaining the vendor s fees. For debts up to $200, the vendor shall not add a vendor fee to the debt but will instead deduct the agreed-upon vendor s fee from the principle. Collection Fee compensation shall be based on the amount of funds recovered. The Controller s Office has set recovery amount ranges (in dollars), and will allow vendors to fill in percentages for each range. Debt Collection Services RFP No Page 19

20 Vendor Fee Line Item Total Recovery Amount (state as a percentage of actual funds recovered) 001 up to % 002 $ , % 003 $25, , % 004 $100, , % 005 $500, and above % The State will consider cost proposals based on fixed fees per collection rather than percentages. 6. PAYMENT Vendor(s) and all subcontractor(s) must remit collected payments to the Controller s Office within thirty (30) days after they receive the money from a debtor. A Remittance Statement Report shall be submitted to the Controller s Office on a monthly basis, unless the Controller s Office requests the report earlier or on a more-frequent interval in specific cases. Remittance should be spread out over the month for the previous month s collections, as illustrated below for specific agencies: Agency DMV Industrial Relations All other Agencies Payment Frequency Twice Per Month Once Per Month Once Per Month Failure to remit the collected payments in the manner as described above may result in the assessment of one or more of the following: A fine of $ per calendar day past the report submission due-date, up to maximum of $ 2, per debtor account Contract suspension; and/or Contract termination 7. SUBMITTAL INSTRUCTIONS 7.1 In lieu of a pre-proposal conference, the Purchasing Division will accept questions and/or comments in writing, received by regarding this RFP as follows: Debt Collection Services RFP No Page 20

21 Questions must reference the identifying RFP number and be addressed to the State of Nevada, Purchasing Division, Attn: Colleen Janes, Purchasing Officer, ed to The deadline for submitting questions is May 8, 2008 at 2:00 p.m., Pacific Time. All questions and/or comments will be addressed in writing and responses ed or faxed to prospective vendors on or about May 15, Please provide company name, address, phone number, address, fax number, and contact person when submitting questions. 7.2 RFP Timeline TASK DATE/TIME Deadline for submitting questions 2:00 p.m. Answers to all questions submitted available on or about 05/15/08 Deadline for submittal of Reference Questionnaires 05/27/08 Deadline for submission and opening of proposals 2:00 p.m. Evaluation period 06/03/08 06/11/08 Selection of vendor 06/13/08 Anticipated BOE Approval 08/12/08 Contract start date 09/01/08 NOTE: These dates represent a tentative schedule of events. The State reserves the right to modify these dates at any time, with appropriate notice to prospective vendors. The State also reserves the right to invite top-scoring vendor(s) in for oral presentations. 7.3 Proposal submission requirements: Vendors shall submit their response in three (3) parts as designated below: Part I: Technical Proposal One (1) original marked MASTER Nine (9) identical copies One (1) identical copy on CD (Note: CD must be labeled accordingly and in a case.) THE TECHNICAL PROPOSAL MUST INCLUDE A SEPARATE TAB/SECTION LABELED STATE DOCUMENTS WHICH SHALL INCLUDE: Page 1 of RFP All Amendments to the RFP All Attachments requiring signature Certificate of Insurance Technical Proposal must not include cost or confidential information. Technical Proposal shall be submitted to the State in a sealed package and be clearly marked: Debt Collection Services RFP No Page 21

22 Technical Proposal in Response to RFP No Part II: Cost Proposal: One (1) original marked MASTER Nine (9) identical copies One (1) identical copy on CD (Note: CD must be labeled accordingly and in a case.) Cost Proposal shall be submitted to the State in a sealed package and be clearly marked: Cost Proposal in Response to RFP No Part III: Confidential Information: One (1) original marked MASTER Two (2) identical copies Confidential Information shall be submitted to the State in a sealed package and be clearly marked: Confidential Information in Response to RFP No If the separately sealed proposal, marked as required above, are enclosed in another container for mailing purposes, the outermost container must fully describe the contents of the package and be clearly marked: REQUEST FOR PROPOSAL NO.: 1673 PROPOSAL OPENING DATE: May 30, 2:00 p.m. FOR: Debt Collection Services Proposal must be received at the address referenced below no later than 2:00 p.m. Pacific Time, May 30, Proposals that do not arrive by proposal opening time and date WILL NOT BE ACCEPTED. Vendors may submit their proposal any time prior to the above stated deadline Proposal shall be submitted to: State of Nevada, Purchasing Division Colleen Janes, Services Purchasing 515 E. Musser Street, Suite 300 Carson City, NV The State will not be held responsible for proposal envelopes mishandled as a result of the envelope not being properly prepared. Facsimile, or telephone proposals will NOT be considered; however, at the State s discretion, the proposal may be submitted all or in part on electronic media, as requested within the RFP document. Proposal may be modified by facsimile, or written notice provided such notice is received prior to the opening of the proposals. 7.5 Although it is a public opening, only the names of the vendors submitting proposals will be announced NRS (6). Technical and cost details about proposals submitted Debt Collection Services RFP No Page 22

23 will not be disclosed. Assistance for handicapped, blind or hearing-impaired persons who wish to attend the RFP opening is available. If special arrangements are necessary, please notify the Purchasing Division designee as soon as possible and at least two days in advance of the opening. 7.6 If discrepancies are found between two or more copies of the proposal, the master copy will provide the basis for resolving such discrepancies. If one copy of the proposal is not clearly marked MASTER, the State may reject the proposal. However, the State may at its sole option, select one copy to be used as the master. 7.7 For ease of evaluation, the proposal should be presented in a format that corresponds to and references sections outlined within this RFP and should be presented in the same order. Responses to each section and subsection should be labeled so as to indicate which item is being addressed. Exceptions to this will be considered during the evaluation process. 7.8 If complete responses cannot be provided without referencing confidential information, such confidential information must be provided in accordance with submittal instructions and specific references made to the tab, page, section and/or paragraph where the confidential information can be located. 7.9 Proposals are to be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Expensive bindings, colored displays, promotional materials, etc., are not necessary or desired. Emphasis should be concentrated on conformance to the RFP instructions, responsiveness to the RFP requirements, and on completeness and clarity of content Descriptions on how any and all equipment and/or services will be used to meet the requirements of this RFP shall be given, in detail, along with any additional information documents that are appropriately marked The proposal must be signed by the individual(s) legally authorized to bind the vendor, see NRS For ease of responding to the RFP, vendors are encouraged, but not required, to request an electronic copy of the RFP. Electronic copies are available in the following formats: Word 2003 via , diskette, or on the State Purchasing Division's website in PDF or Word format at When requesting an RFP via or diskette, vendors should contact the Purchasing Division for assistance. In the event vendors choose to receive the RFP on CD, the vendor will be responsible for providing a blank CD; unless vendors provide a Federal Express, Airborne Express, etc. account number and appropriate return materials, the CD will be returned by first class U.S. mail Vendors utilizing an electronic copy of the RFP in order to prepare their proposal should place their written response in an easily distinguishable font immediately following the applicable question. Debt Collection Services RFP No Page 23