Collection Services Request for Proposal # 14/15-07 Questions and Answers

Collection Services Request for Proposal # 14/15-07 Questions and Answers Question 1: I reviewed the above referenced RFP and was curious if Florida Department of Revenue would consider selling these accounts to generate immediate cash flow versus taking small agency payments over time. Please let me know if this option is of interest and/or advise me on the most appropriate means of presenting this concept to Florida Department of Revenue. Answer: This is not an option the Department will consider. Question 2: Please confirm the due date for this procurement is 1/16/2015. Answer: The due date for technical and cost proposals has been extended to 02/06/2015. Question 3: What is the date by which you will answer these questions? Answer: We plan to post our responses on the Vendor Bid System on or about January 27, 2015. Question 4: Please describe your level of satisfaction with your current vendor(s), if applicable Answer: The current contractor is performing at an acceptable level. Question 5: To what extent are these accounts owed by private consumers versus commercial businesses? Answer: The majority of these accounts are commercial businesses. Question 6: Will accounts be primary placements, not having been serviced by any other outside collection agency, and/or will you also be referring secondary placements? Answer: All accounts placed will be primary placements. However, the Department may decide at a later date to place secondary accounts. Question 7: If so, should bidders provide proposed fees for secondary placements also? Answer: No. Question 8: What collection attempts are performed or will be performed internally prior to placement? Answer: Collection efforts made by the Department vary depending on the predetermined criteria. The collection efforts vary depending on the account. Efforts include but are not limited to: automated calls, billing notices, live collector calls, filing of a tax lien, bank freezes and revocation of a certificate of registration. Page 1 of 23

Question 9: What is the total dollar value of accounts available for placement now by category, including any backlog? Answer: The question is too vague to answer. Question 10: What is the average balance of accounts by category? Answer: DISCLAIMER: Data prior to May 2014 is not indicative of future estimates. Due to system changes made in 2012, and again in early 2014, any future estimates are expected to more closely align with FY14-15 data, which will not be available until the end of the fiscal year. So far, the FY 14-15 data is reflecting a significant downward trend. For example, the FY14-15 bill data is currently less than 50% of what was referred in the same period of FY13-14. Based on current business practices, some modules may also be re-referred multiple times to the collection agency. The Department does not maintain an average balance of accounts by category. See Exhibits A and B for data related to historical collection agency referrals and Exhibit C for first notices issued by the Department. Question 11: What is the average age of accounts at placement (at time of award and/or on a going-forward basis), by category? Answer: The Department is unable to project the age of accounts expected to be placed with the contractor. Question 12: What is the monthly or quarterly number of accounts expected to be placed with the vendor(s) by category? Answer: The Department is unable to project the monthly or quarterly number of accounts expected to be placed with the contractor. Question 13: What is the monthly or quarterly dollar value of accounts expected to be placed with the vendor(s) by category? Answer: The Department is unable to project the monthly or quarterly dollar value of accounts expected to be placed with the contractor. Question 14: What has been the historical rate of return or liquidation rate provided by any incumbent(s), and/or what is anticipated or expected as a result of this procurement? Answer: DISCLAIMER: Data prior to May 2014 is not indicative of future estimates. Due to system changes made in 2012, and again in early 2014, any future estimates are expected to more closely align with FY14-15 data, which will not be available until the end of the fiscal year. So far, the FY 14-15 data is reflecting a significant downward trend. For example, the FY14-15 bill data is currently less than 50% of what was referred in the same period of FY13-14. Based on current business practices, some modules may also be re-referred multiple times to the collection agency. See Exhibits A and B for data related to historical collection agency referrals. Page 2 of 23

Question 15: If applicable, will accounts held by any incumbent(s) or any backlog be moved to any new vendor(s) as a one-time placement at contract start up? Answer: The Department does not anticipate recalling and reassigning accounts, but reserves the right to do so. Question 16: What type of tax or taxes are being collected on? Answer: Please refer to attachment K of the RFP. Question 17: What is the amount of workflow involved with the contract (amount of delinquent accounts)? Answer: DISCLAIMER: Data prior to May 2014 is not indicative of future estimates. Due to system changes made in 2012, and again in early 2014, any future estimates are expected to more closely align with FY14-15 data, which will not be available until the end of the fiscal year. So far, the FY 14-15 data is reflecting a significant downward trend. For example, the FY14-15 bill data is currently less than 50% of what was referred in the same period of FY13-14. Based on current business practices, some modules may also be re-referred multiple times to the collection agency. See Exhibit A. Question 18: Are multiple payment dates allowed to be arranged? If so what parameters exist with the number of arrangements and time frame that payments can be made in? Answer: It is the Department s desire that the payment be collected in full. However, the contractor may arrange for multiple payments for the length of time the account is assigned to the contractor. The Department is not obligated for any arrangement made between the contractor and the taxpayer. Question 19: What forms of payment are accepted with arrangements? Answer: All payments should be made directly to the Florida Department of Revenue. Payments may be made electronically on the Department s website http://dor.myflorida.com/dor/gta.html, or by check. Question 20: Is there dialer and other software that the Department of Revenue will provide us the vendor, or is this to be arranged by us the vendor? Answer: The Department of Revenue will not provide the selected contractor with a dialer or software. The Department will provide the selected contractor with a file that contains all pertinent information at the time of referral. Question 21: Is there a set amount of time that us the vendor will have to collect on the debts, or are collection efforts to continue until all accounts are brought to a current state? Answer: See section 6.2.5.11 of the RFP. Page 3 of 23

Question 22: PUR 1001 General Instructions to Respondents; 5. Questions (page 2) instructs respondents to use MyFlorida Marketplace to submit questions, while Section 3.1.3 Questions (page 27) instructs respondents to submit questions by email, fax, or mail. Can you please clarify how we are to submit our questions on the solicitation? Answer: Vendor questions are to be submitted by email, fax, or mail, in accordance with Section 3.1.3. Question 23: In Attachment I, there are two layouts for the recall and two layouts for the referrals. Does that mean the vendor will program for two different recall and referral formats? Answer: Yes, they have different requirements. Please note the differences in the bill and delinquency formats for the referral and recall files as well. Question 24: We just wanted to check to see if there are any other documents other than the RFP solicitation document released 12/5/2014 (132 pages)? We are not finding any financial information specifications of workload, etc. for the collection work to be performed. We checked MyFlorida and did not identify any other documents, but not sure if we are just not locating it there. Before sending a list of specific questions we just thought we would double check with you to see if we are missing something at this point. Answer: All documents relating to this Request for Proposals are posted on the Vendor Bid System (VBS) web site at http://myflorida.com/apps/vbs/vbs_www.main_menu. Question 25: Page 24 of the RFP states that the contractor will also collect delinquent tax returns and reports. Can the Department provide clarification as to what is specifically requested from the Contractor? Answer: In the case of delinquency referrals, the contractor is responsible for obtaining the tax return and any tax payments. The Department will not pay a fee on a tax return with no payment, or on a no money due (zero) tax return. There is a $2,000 fee cap for all delinquent (non-filed) returns that are filed with the Department. Question 26: Page 24 of the RFP states that the contractor will also collect delinquent tax returns and reports. Please identify if the contractor is required to receive and process delinquent tax returns from consumers and verify that all information is accurate prior to forwarding to the State. Answer: All payments and returns/reports should be filed directly with the Department. The Department will determine accuracy and whether or not additional amounts are due. Question 27: What was the total number and dollar amount of modules referred to the collection contractor for each year in 2012, 2013, 2014 (calendar or fiscal)? Answer: See response to Question #17 Page 4 of 23

Question 28: What was the total number of taxpayers referred to the collection contractor for each year in 2012, 2013, 2014 (calendar or fiscal)? Answer: DISCLAIMER: Data prior to May 2014 is not indicative of future estimates. Due to system changes made in 2012, and again in early 2014, any future estimates are expected to more closely align with FY14-15 data, which will not be available until the end of the fiscal year. So far, the FY 14-15 data is reflecting a significant downward trend. For example, the FY14-15 bill data is currently less than 50% of what was referred in the same period of FY13-14. Based on current business practices, some modules may also be re-referred multiple times to the collection agency. See Exhibit A. Question 29: What was the total dollar amount collected by the collection contractor for each year in 2012, 2013, 2014 (calendar or fiscal)? Answer: DISCLAIMER: Data prior to May 2014 is not indicative of future estimates. Due to system changes made in 2012, and again in early 2014, any future estimates are expected to more closely align with FY14-15 data, which will not be available until the end of the fiscal year. So far, the FY 14-15 data is reflecting a significant downward trend. For example, the FY14-15 bill data is currently less than 50% of what was referred in the same period of FY13-14. Based on current business practices, some modules may also be re-referred multiple times to the collection agency. See Exhibit A. Question 30: What was the total dollar amount of fees paid to the collection contractor for each year in 2012, 2013, 2014 (calendar or fiscal)? Answer: DISCLAIMER: Data prior to May 2014 is not indicative of future estimates. Due to system changes made in 2012, and again in early 2014, any future estimates are expected to more closely align with FY14-15 data, which will not be available until the end of the fiscal year. So far, the FY 14-15 data is reflecting a significant downward trend. For example, the FY14-15 bill data is currently less than 50% of what was referred in the same period of FY13-14. Based on current business practices, some modules may also be re-referred multiple times to the collection agency. See Exhibit B. Question 31: Were any financial penalties assessed to the collection contractor during the term of the past collection contract, and if so, what was the reason(s) and amount(s) of the financial penalties assessed? Answer: No. Page 5 of 23

Question 32: What is the average number of Bills (NOAD) per taxpayer referred for collection? Answer: DISCLAIMER: Data prior to May 2014 is not indicative of future estimates. Due to system changes made in 2012, and again in early 2014, any future estimates are expected to more closely align with FY14-15 data, which will not be available until the end of the fiscal year. So far, the FY 14-15 data is reflecting a significant downward trend. For example, the FY14-15 bill data is currently less than 50% of what was referred in the same period of FY13-14. Based on current business practices, some modules may also be re-referred multiple times to the collection agency. See Exhibit A. Question 33: What is the average number of Delinquencies (DEL or DLQ) per taxpayer referred for collection? Answer: DISCLAIMER: Data prior to May 2014 is not indicative of future estimates. Due to system changes made in 2012, and again in early 2014, any future estimates are expected to more closely align with FY14-15 data, which will not be available until the end of the fiscal year. So far, the FY 14-15 data is reflecting a significant downward trend. For example, the FY14-15 bill data is currently less than 50% of what was referred in the same period of FY13-14. Based on current business practices, some modules may also be re-referred multiple times to the collection agency. See Exhibit A. Question 34: For 2012, 2013, 2014 (calendar or fiscal) what was the number and total dollar amount of Bills (NOAD) sent to the collection contractor? Answer: See response to Question #17. Question 35: For 2012, 2013, 2014 (calendar or fiscal) what was the total dollar amount collected on Bills (NOAD) sent to the collection contractor? Answer: See response to Question #29. Question 36: For 2012, 2013, 2014 (calendar or fiscal) what was the number and total dollar amount of Delinquencies (DEL or DLQ) sent to the collection contractor? Answer: See response to Question #17. There is no dollar amount for delinquencies referred as a delinquency is defined as a non-filed return. The dollar amount is not known until the return and payment is filed. Question 37: For 2012, 2013, 2014 (calendar or fiscal) what was the total dollar amount collected on Delinquencies (DEL or DLQ) sent to the collection contractor? Answer: See response to Question #29. Question 38: For the most recent full year (calendar or fiscal) or last 12 months of the contact, what was the number and total dollar amount of modules referred for collection for each of the TAX TYPES listed on Attachment K? Answer: See response to Question #17. Page 6 of 23

Question 39: For the most recent full year (calendar or fiscal) or last 12 months of the contact, what was the total dollar amount collected for each of the TAX TYPES listed on Attachment K? Answer: See response to Question #17. Question 40: In the event that a business taxpayer is a sole proprietor business entity, does the Florida DOR exchange any taxpayer data with the Internal Revenue Service to assess, validate, or offset Florida Taxes owed by such companies? Answer: No. Question 41: Are there any circumstances under which Florida tax module(s) may contain Federal Taxpayer Information (as defined by IRS Publication 1075), and if so please describe. Answer: No. Question 42: Will FDOR recall accounts currently assigned to the collection vendor and reassign them to new vendor(s) in the event new vendors are awarded a contract? If so, what is the estimated number of modules and total dollar amount of second placements? Answer: See response to Question #15. The Department is unable to project the number of modules and total dollar amounts of second placements. Question 43: Will FDOR assign any second placements under the new contract? Second placements are defined as accounts worked by a prior collection agency vendor at any time in the past for all or part of the retention period) If so, what is the estimated number of modules and total dollar amount of second placements? Answer: See response to Question #15. The Department is unable to project the number of modules and total dollar amounts of second placements. Question 44: Will FDOR accept a second completed Attachment F: Cost Sheet for a fee proposal for Second Placement Accounts, in the event such accounts are ever to be placed under the contract? Answer: No. The Department is expecting one fee proposal. The one fee proposal would be for primary placements and secondary placements, should the Department decide to refer secondary placements. Question 45: Will FDOR accept two completed Attachment F: Cost Sheets, one for a fee proposal for First Placement Modules and as separate cost sheet for Second Placement Modules, in the event such accounts are ever to be placed during the term of the contract? Answer: See response to Question #44. Question 46: Please confirm that the reference to Call Center on page 12 of the RFP refers to the DOR s call center in Tallahassee Answer: Yes, See Section 1 (Definitions) of RFP# 14/15-07. Page 7 of 23

Question 47: Please confirm that all proposed Call Center and other contract services must be provided from facilities located within the United States. Answer: All proposed Call Center and other contract services must be provided from facilities located within the continental United States. Question 48: What are the collection fees currently being paid to your current Contractor for Business Tax collection accounts and Reemployment Tax collection accounts? Have these fee rates changed from the initial 2008 collection contract? Answer: 10.75% for Reemployment Tax and 11% for all other taxes. The rates have not changed. There is a $2,000 fee cap for all delinquent (non-filed) returns that are filed with the Department. Question 49: How many Contractors do you anticipate being chosen to perform the collection functions required in the current RFP? Answer: The Department anticipates awarding the contract to two contractors, but reserves the right to go with more or only one contractor. Question 50: Who are your current collection Contractors and how long has each been providing collection services for the Florida DOR? Answer: The current contractor is Transworld Systems Incorporated (TSI) and has been under contract with the Department since 2009. Question 51: Can you provide your level of satisfaction with the collection services provided by your current Contractor(s)? Answer: See response to Question #4. Question 52: Has all contract work been completed for the Collection Analytics project, RFP 09/10-12? Answer: Yes. Question 53: In order to respond effectively to the current RFP, where can we obtain the conclusions and results of the Collection Analytics project described above? Answer: There is no current document containing the conclusions and results of the Collection Analytics Project. Question 54: On average, how much does your current collection Contractor collect on a monthly basis for past due Business Taxes and Reemployment Taxes? Answer: See response to Question #14. Reemployment Taxes have not been referred to the collection agency. Question 55: What have been the historic liquidation (% recovery) rates, by year, for both Business Tax and Reemployment Tax collection services provided by your current Contractor(s)? Answer: See response to Question #14. Reemployment Taxes have not been referred to the collection agency. Page 8 of 23

Question 56: Attachment K in the RFP lists the taxes and fees administered by GTA. Can you provide a percentage of outstanding accounts for each of the taxes in the Attachment? For example, what % of total past due tax debt falls into the Sales and Use Tax category? Answer: DISCLAIMER: Data prior to May 2014 is not indicative of future estimates. Due to system changes made in 2012, and again in early 2014, any future estimates are expected to more closely align with FY14-15 data, which will not be available until the end of the fiscal year. So far, the FY 14-15 data is reflecting a significant downward trend. For example, the FY14-15 bill data is currently less than 50% of what was referred in the same period of FY13-14. Based on current business practices, some modules may also be re-referred multiple times to the collection agency. See Exhibit A. Question 57: How frequently do you anticipate placing accounts with the Contractor(s): Daily? Weekly? Monthly? Answer: Weekly. Question 58: On average, how many accounts and at what dollar amount do you anticipate placing with selected contractor(s) for both Business tax and Reemployment Tax accounts on a monthly basis? Answer: See response to Question #17. Reemployment Taxes have not been referred to the collection agency. Question 59: What is the average tax account balance? And on average, how many accounts are there per taxpayer? Answer: DISCLAIMER: Data prior to May 2014 is not indicative of future estimates. Due to system changes made in 2012, and again in early 2014, any future estimates are expected to more closely align with FY14-15 data, which will not be available until the end of the fiscal year. So far, the FY 14-15 data is reflecting a significant downward trend. For example, the FY14-15 bill data is currently less than 50% of what was referred in the same period of FY13-14. Based on current business practices, some modules may also be re-referred multiple times to the collection agency. See Exhibit A. Question 60: On average, how many individual debts can we expect to be included in each account submitted to us for collections? Or does each account only include one specific debt? Answer: See response to Question #12. Question 61: What are your annual targeted liquidation or recovery rates for Business and Reemployment Tax collections for this contract? Answer: See response to Question #14. Reemployment Taxes have not been referred to the collection agency. Question 62: If multiple Contractors are contracted, do you anticipate Contractors receiving further placements based on their competitive performance on the contract? Answer: Yes, if the Department decides this is in their best interest. Page 9 of 23

Question 63: Do you intend that the Contractor employ its own collection platform in providing the required collection services? Answer: Yes. Question 64: You note, on page 29, that RFP responses will be evaluated by a team of At least three persons Can you provide a general technical background of the evaluators you intend to employ to evaluate RFP responses? Answer: The selected evaluators have many years of experience in the Department s collection and enforcement process and have knowledge of the computer system used by the Department. Question 65: Page 51 of your RFP states that during the testing period the Contractor must be capable of generating acceptable collection notices from the data provided, which can be processed through the FDOR s Processing Equipment. Does the DOR anticipate Contractor(s) will only use the DOR processing equipment to provide actual notices to delinquent taxpayers or is this a test to verify the Contractor s collection system? Answer: The Contractor must be able to produce collection notices that the Department can process. Question 66: We noticed that there is no requirement for the submission of at least three years of audited financial statements as part of the RFP submission. Was this a deliberate omission? Answer: Audited financial statements are not required. Question 67: Your current contract provides additional services at $45.00 per hour. Please provide us the number of hours your current Contractor provided during the course of the 2008 contract. Answer: No additional services were requested by the Department. Question 68: Section 14 on page 9 of the RFP refers to a mandatory 1% Transaction Fee associated with MyFloridaMarketPlace, which must be paid by the Contractor. Is this 1% fee assessed on our contracted collection fees or on the total debt owed by each debtor? Answer: All payments made to the Contractor shall be assessed a Transaction Fee associated with MyFloridaMarketPlace of one percent. Question 69: Can the Contractor put taxpayers into monthly repayment agreements that extend past the 160-day collection period? Answer: Only with the Department s written approval. Question 70: In regard to Section 5.16.1.2 on page 49 of the RFP, can you provide greater detail on the actual performance/duties that could be subject to the $5k per day penalty? Is there a recovery goal? Answer: The $5,000 per day penalty may be assessed if the contactor fails to meet the specifications of the contract. No, there is no recovery goal. Page 10 of 23

Question 71: Please confirm that the term of the contract is a base 5 year and five (5) one-year renewals Answer: The term of this contract is a base 5 year and up to five (5) one-year renewal options. Question 72: Will the Contractor have view-only access to the FDOR system? Answer: No. Question 73: Do you expect the Contractor to data input the tax returns for delinquent taxpayers? Answer: No. Question 74: Who is the current collection vendor? Answer: See response to Question #50. Question 75: What are the current contingency fees? Answer: See response to Question #48. Question 76: What is the current recovery rate? Answer: See response to Question #14. Question 77: What is the inventory of volume currently outsourced for collection? Answer: See response to Question #14. Question 78: How many collection agencies does the state intend to select? Answer: See response to Question #49. Question 79: What is the anticipated initial placement volume? Answer: The Department is unable to project the initial placement volume. Question 80: What is the anticipated regular placement volume? Answer: See response to Question #12. Question 81: How often will the State make placements? Answer: See response to Question #57. Question 82: What is the average balance amount? Answer: The question is too vague to answer. Question 83: What is the age of the oldest debt that will be referred for collections? Answer: Normally no older than 3 years, unless a tax lien has been filed. Tax liens could have debts as old as 20 years. Page 11 of 23

Question 84: Would you please identify the current incumbents, length of service, and their current contingency fee percentages as awarded during the last contract term? Have there been any negotiated fee increases or reductions since the award? If so, could you provide some detail and annual volume of business placed with each? Answer: See response to Questions #48 & #50. Question 85: Could you please provide a monthly summary of debt placements (number of accounts and average balance or total amount referred) for the previous (12) twelve months? Answer: See response to Question #14. Question 86: In the event an incumbent is not successful in receiving an award under this contract, what will the procedure be regarding those accounts currently in their collection system? Answer: See response to Question #15. Question 87: What is the anticipated monthly volume of business by debt type? Answer: See response to Question #12. Question 88: Could you please provide some additional information about the unspecified/unknown tasks that the vendor may be required to perform? Are the tasks clerical in nature, or related to collections? Answer: The tasks would be related to collections. There are no specific criteria for these tasks. Question 89: Section 1: Definitions (page 23) provides the following definition of subcontractor: Any person other than an employee of the Contractor who performs any of the services listed in this RFP for compensation. Subcontractors will not be allowed for this contract. Please provide additional clarification concerning FDOR s definition of a subcontractor. For example, does FDOR consider outside vendors for batch skip tracing and letter services to be subcontractors? Answer: A subcontractor for purposes of this contract is defined as someone who is not fully owned and controlled by the contractor. The examples provided will not be allowed under this contract. Question 90: Section 3.3.2 Diversity (page 32) indicates, The Contractor should submit monthly reports to the FDOR detailing their expenditures with small, minority, service-disabled veteran, and women-owned businesses. Please provide the following clarification concerning FDOR s diversity requirements. A. Does FDOR require the contractor to report on expenditures with the abovereferenced diverse organizations utilized only for the contract with FDOR or for all contracts? B. Does FDOR require the contractor to report on expenditures with the abovereferenced diverse organizations certified in the State of Florida or nationwide? Answer: Under this contract subcontractors are not allowed. Therefore, this requirement is not applicable. Page 12 of 23

Question 91: Section 5.2 Contract Approval and Term (page 42) indicates, The contract shall be in effect from the date of execution and will end five (5) years later To how many agencies does FDOR anticipate awarding contracts as a result of this RFP? Answer: See response to Question #49. Question 92: Section 7: Proposal (pages 61-62) indicates Volume One: Administrative/Technical Proposal ends with Tab 8: Attachments and Volume Two: Cost Proposal includes only Tab 8: Cost. Please clarify whether the tab under Volume Two should be amended to Tab 9: Cost. Answer: Attachment F: Cost Sheet should only be included as Tab 9 in VOLUME TWO: COST PROPOSAL in a separate sealed notebook. No cost information of any kind should be included in VOLUME ONE: ADMINISTRATIVE/TECHNICAL PROPOSAL. Including cost information in Volume One: Administrative/Technical may cause the Proposal to be disqualified. Question 93: Section 7.4.3.1 Company Profile (page 64) indicates, Vendors must describe the number and qualification of its key management and supervisory personnel to be assigned to this project the following must be included for each of these positions [r]esume. Please clarify whether resume summaries will be acceptable in lieu of full resumes. Answer: The resumes are part of the evaluation criteria. Question 94: Section 7.4.3.2 Experience (page 64) indicates, The vendor will provide verifiable information on their three (3) largest business tax collection contracts (current and prior) If the vendor does not have three (3) business tax collection contracts the vendor shall supplement with like or similar collection contracts. In order to ensure the availability of our references, please provide the time period during which FDOR anticipates contacting references included in the response. Answer: We expect to contact references after receipt of responses and prior to responses being provided to the Evaluation Committee (See Section 3.2 of the RFP). Question 95: Attachment K: Taxes and Fees Administered by GTA (pages 89-90) provides specific information concerning the types of accounts that will be placed by FDOR. Please provide the following clarification concerning FDOR s portfolio: A. Does FDOR s portfolio include primary placements (i.e., never been placed for collection with an outside agency), secondary placements (i.e., placed for collection with an outside agency) or a combination of both? See response to Question #6. B. Please provide the estimated number of accounts to be placed annually segregated by tax type and placement type (e.g., primary or secondary). See response to Question #12. C. Please provide the estimated dollar value of accounts to be placed annually segregated by tax type and placement type. See response to Question #13. D. Please provide the average balance of accounts at placement segregated by tax type and placement type. See response to Question #13. E. Please provide the average age of accounts at placement segregated by tax type and placement type. The data is not currently collected in this format. F. What percentage of accounts is for individuals, and what percentage of accounts is for businesses? See response to Question #5. Page 13 of 23

G. Does the FDOR have reciprocal arrangements with other states for the recovery of delinquent accounts? If yes, please list. No. H. Does FDOR use a state or federal tax offset program in the recovery of delinquent accounts? If yes, please specify. State Yes, through the Florida Department of Financial Services, Federal - No. Answer: See above. Question 96: Incumbent Information. Please provide the following clarification concerning FDOR s incumbent agencies: A. With which agencies is FDOR currently contracted for the collection services covered by this RFP? See response to Question #50. B. Please provide the current contingency fees for FDOR s incumbent agencies, if available. See response to Question #48. Please provide the historical recovery rates for the FDOR s incumbent agencies segregated by tax type and placement type, if available. See response to Question # 14. Answer: See above. Question 97: What are the anticipated placement volumes (number and amount)? Answer: See response to Questions #12 & #13. Question 98: What is the average balance of the accounts? Answer: See response to Question #10. Question 99: What is the average age of the accounts? Answer: See response to Question #11. Question 100: What is the placement frequency (monthly, daily, weekly)? Answer: See response to Question #57. Question 101: How long do we retain the accounts or do we maintain all accounts until the life of the contract? Answer: See response to Question #21. Question 102: How is market share between collection agencies determined (even distribution or performance based)? Answer: This has not been determined. FDOR has only one current vendor, therefore there is no distribution. Question 103: Can the currently liquidation/stair step history be shared with us? Answer: See response to Question #14. Page 14 of 23

Question 104: What is the current contingency rate being paid to existing collection vendors? Answer: See response to Question #48. Question 105: Are we able to accept settlements, if so, at what percentage? If not, is there an offer in compromise process, and if so, what is that process? Answer: All settlement agreements and compromises must be submitted to and will be decided by the Department. Question 106: Is a legal route approved for uncollectable accounts? If so, is the contingency rate higher for legal accounts and/or are court costs paid up front by FDOR? Answer: The Department has no approved legal route for uncollectable accounts at this time. Question 107: Can any collection services be off-shored, or near shored? Are any support processes (non-voice work) allowed off shore (posting, data transmissions, etc.)? Answer: All proposed Call Center and other contract services must be provided from facilities located within the continental United States. Question 108: What percent of the accounts are bilingual, and what language are these typically? Answer: The data is not currently collected in this format. Question 109: What is the dispute process, and what is the turnaround time to receive backup documentation/debt validation? Answer: All disputes from taxpayers should be referred in writing by the taxpayer to the Department. The Department has no set turnaround time for backup documentation/debt validation; however, it is in the Department s best interest to process such taxpayer requests as quickly as possible. Question 110: Do we have authority to report to the credit bureaus? Answer: No. Question 111: What are the security and technology requirements to support this project? Answer: Please see Sections 6.3.1 and 6.2 of the RFP Question 112: What is the volume of Tax Payer Notifications and Collections letters that are mailed monthly. Answer: DISCLAIMER: The number of notices reports the number of first notices of bills and delinquencies that the Department issues. It does not include follow up collection letters and notices. See Exhibit C. Question 113: They provide some instructions for the composition and characteristics of the mailings. They refer to attachments with samples, but I m not seeing them. Perhaps there is an on-line reference. Answer: See Sample Notices in Attachments L and M of the RFP. Page 15 of 23

Question 114: What SLA s for printing are required. Answer: Printing requirements are outlined in Section 6.2.5.14 of the RFP. Question 115: Are there color print requirements. Answer: See response to Question #114. Question 116: Please provide: A. The name(s) of the current or most recent collection service providers. Answer: See response to Question #50 B. Are placements broken out into secondary and tertiary? Answer: See response to Question #6. C. The number and dollar amount of placements for each tax / delinquency type for each of the last three years. Answer: See response to Question #17. D. The dollar amount of commissionable collections for each of the last three years. Answer: See response to Question #29. E. The actual compensation for collections paid for each of the last three years. Answer: See response to Question #29. F. Commission rate(s) for collections by tax / delinquency type under the current or most recent collection agreement. Answer: See response to Question #48 Question 117: Will there be any accounts placed that have been placed with other collection vendors? If so, what is the estimated number and dollar value of such accounts? Will a separate contingency rate be allowed to be bid for these accounts? Answer: See responses to Questions #6, #7, #79, & #80. Question 118: Please describe the department s internal collection efforts (timing and number of written notices, telephone calls, legal actions, etc.) prior to placement of accounts with a collection vendor. Answer: See response to Question #8. Question 119: Will all delinquent accounts be placed with the vendor for collections or will some accounts be retained for internal collection efforts only? If so, what are the criteria to decide if an account is placed with the collection agency? Answer: The majority of the accounts will stay with the Department. The selected contractor will receive workload the Department has determined is in the best interest for a contractor to work. Question 120: Please confirm that whether the department anticipates awarding one or if more than one, how many, contract for collection services. Answer: See response to Question #49. Question 121: What is the anticipated number and dollar amount of accounts anticipated to be placed at the inception of the contract term and ongoing on a monthly or annual basis? Answer: See responses to Questions #12 & #13. Page 16 of 23

Question 122: If there is a backlog of accounts to be placed at contract inception? Please describe the backlog details with respect to tax / delinquency type, balance ranges and age of accounts from delinquency? Answer: The Department does not anticipate a backlog of accounts at contract inception. Question 123: Will a crime / fidelity insurance policy suffice in replacement of the fidelity bond requirement in section 5.14.3? Answer: Yes, if the Department is the named beneficiary. Question 124: With respect to the definition and requirements of Subcontractors ( Any person other than an employee of the Contractor who performs any of the services listed in this RFP for compensation. Subcontractors will not be allowed for this contract ), would a third party vendor that provides letter printing and mailing services be deemed a contractor for this procurement and, if so, would it be an allowed subcontractor or must the selected vendor generate and mail all correspondence internally? Answer: See response to Question #89. Question 125: Attachment D is called for three places in the response outline: Section 7.4.3.2, 7.4.7, and Tab 8. Please confirm where Attachment D should go and what, if any, additional information is required in the other two sections. Answer: Attachment D: References, should be included in Tab 7 of your response. Question 126: How many vendors are you currently using for this project? Answer: See response to Question #50. Question 127: What collection attempts are performed or will be performed internally prior to placement? Answer: See response to Question #8. Question 128: What is the average balance of accounts by category? Answer: See response to Question #10. Question 129: What current contingency fees or other fees are currently being billed by any incumbent(s), by category? Answer: See response to Question #48. Question 130: What is the average age of accounts at placement (at time of award and/or on a going-forward basis), by category? Answer: See response to Question #11. Question 131: What estimated or actual dollars were paid last year, last month, or last quarter to any incumbent(s)? Answer: See response to Question #29. Page 17 of 23

Question 132: What is the monthly or quarterly number of accounts expected to be placed with the vendor(s) by category? Answer: See response to Question #12. Question 133: What is the monthly or quarterly dollar value of accounts expected to be placed with the vendor(s) by category? Answer: See response to Question #13. Question 134: What has been the historical liquidation rate provided by incumbent(s)? What is FDOR s expected rate of return for this contract? Answer: See response to Question #14. Question 135: Will agencies be allowed to keep accounts longer that are on a payment plan? Answer: See response to Question #69. Question 136: What is your number one measurement when working with agencies? Gross liquidations, net back, compliance, etc.? Answer: Resolution of accounts in conjunction with Customer Service. Question 137: Is any skip work done on accounts before they are sent to agencies? If so, are you passing skip-located cell phones to the agencies? Answer: Depending on the account, some skip tracing work may have been performed by the Department. The Department provides the primary phone number associated with the account. Question 138: Why is the contract out to bid at this time? Answer: The current contract is set to expire August 31, 2015. Question 139: Agencies are required to submit 10 copies of technical proposal, with one marked original. Is it acceptable for the nine (9) non-original copies to be printed in black and white? Answer: Yes. Question 140: Re: 6.2.5.11 in SOW - Length of Referral - will agencies be allowed to keep accounts longer than 160 days if they are on a payment plan? Answer: See response to Question #69. Question 141: Per section 4.6 Subcontracts, it states that subcontractors will not be allowed for this contract. What does the DOR consider to be subcontractors? For instance, does it consider letter vendors or skip trace services to be subcontractors? Answer: See response to Question #89. Page 18 of 23

Question 142: Regarding references, the DOR requests that 3 of the largest tax clients be provided. In one section (7.4.3.2 Experience) it is stated that if tax clients are not applicable to the bidding agency that they can be substituted with the 3 largest clients that agency has; however, in another section (7.4.7 References), this provision is not provided. Must the references provided be tax clients or can they be substituted with the 3 largest agencies? Answer: Non tax clients may be substituted for tax clients if the vendor has no tax clients. Question 143: Regarding section 5.14.3 Insurance Requirements employee fidelity bond, after reviewing the RFP our insurance company asked us to submit the following question: the bidding maintains $3,000,000 of Employee Fidelity coverage for 1 st and 3 rd party losses. However, as is standard, the coverage applies to theft of property, money and securities, and not the bidding agency s failure to remit monies due to the Department. The Department would have to seek indemnification under the bidding agency s E&O insurance for the bidding agency s failure to remit monies or perform other contracted services. Would the FDOR accept a client contract bond or performance bond to satisfy this requirement? Also, could the FDOR clarify if it is looking for verification of Employee Dishonesty Crime coverage? Answer: The Department will accept either a Fidelity Bond or a crime/fidelity insurance policy where the Department is the named beneficiary. Question 144: Why is the contract out to bid at this time? Answer: See response to Question #138. Question 145: What is the FDOR seeking to improve through this contract? Answer: The Department is seeking additional means for collection of accounts. Question 146: Can the FDOR provide numbers for historical placement? Answer: See response to Question #17. Question 147: How frequently does the FDOR anticipate making placements and what are the anticipated placement values for each debt type? Answer: See response to Questions #57 & #13. Question 148: Who are the agencies that currently provide debt collection services? Answer: See response to Question #50. Question 149: What is the historical rate of recovery by debt type? Answer: See response to Question #14. Question 150: What are the fees currents agencies are charging for these collection services? Answer: See response to Question #48. Page 19 of 23

Question 151: Please confirm the tab number vendors should use for Volume Two: Cost Proposal. In Section 7.1 on RFP p. 62, near the top of the page, it indicated Tab 8: Cost, but in Section 7.5 on page 67 is says Tab 9: Cost Proposal. (Or does it even need a tab at all, since Volume Two consists of the one-page Cost Sheet?) Answer: See response to Question #92. Question 152: Where in the proposal should vendors insert the Contractual Services Acknowledgement Form as well as any Amendment acknowledgment forms? We did not find those listed in the contents for Volume One or Volume Two. Answer: The Contractual Services Acknowledgement Form and Addenda (Amendment) Acknowledgement form should be included in Tab 1. Question 153: Please confirm the correct Zip Code to be used for proposal submission. In 3.1.5 on p. 28, it ends with 0109, but in the RFP form on Page 1 of the RFP, it ends with 0100. Answer: The correct Zip Code to be used for proposal submission is 32399-0109. Question 154: Is it acceptable for an incumbent to use FDOR as one of its client references? Answer: Yes Question 155: Please confirm, is the Not-to-Exceed- Hourly Rate for Unspecified / Un- Foreseen Tasks (requested on Attachment F Cost Sheet) included as a factor in the cost evaluation? If yes, how is it factored in? Answer: The Not-to-Exceed-Hourly Rate for Unspecified /Un-Foreseen Tasks is not included as a factor in the evaluation of Proposals. Question 156: Percentage of accounts cleared: % (number of accounts cleared / number of accounts referred. We assume that by cleared you mean Paid In Full. Is that correct? Answer: No. Cleared is defined as the resolution of an account, whether resolved with or without payment. Question 157: Would the 9- day test period begin 4/1/15? Answer: The 90 day test period will begin the first day after the contract is executed. Question 158: Does FDOR have any files that collection agencies would be sending to them? Answer: Yes, as defined in the RFP. Question 159: Please describe the current process flow of collections that FDOR follows? Answer: It varies depending on the account. See response to Question #8. Question 160: After how many days past due / delinquency will an Outside collections agencies get accounts placed with them? Answer: It depends on the individual account. Some may be referred as early as 5 days while others may be included in a tax lien and can be up to 20 years old. Page 20 of 23

Question 161: How many agencies does the FDOR currently outsource the particular segment to? Names of the incumbents? Answer: See response to Questions #50. Question 162: What is the annual anticipated volume of placement by type (# of modules/ accounts and $$ value)? Answer: See responses to Questions #12 & #13. Question 163: What were the volumes placed by type (# of modules/ accounts and $$ value) for the years 2010, 2011, 2012, 3013 and 2014? Answer: See response to Questions #17 and #29. Question 164: Please describe the nature of the unforeseen / unspecified work? Answer: See response to Question #88. Question 165: What were the volumes of the unforeseen / unspecified work for the years 2010, 2011, 2012, 3013 and 2014? Were these paid out $$ / hour? If so please express the volume in number of hours for this kind of work? Answer: No additional services were requested by the Department. Question 166: What are the current fees being paid to agencies? Answer: See response to Question #48. Question 167: What were the collections for the years 2010, 2011, 2012, 3013 and 2014 by outside collections agency and by type of debt? Answer: See response to Question #29. Question 168: What were the actual $$ fees paid out for the years 2010, 2011, 2012, 3013 and 2014 by agency and total? Answer: See response to Question #29. Question 169: What are the anticipated volume of cases where no $$ are due but paper work (returns and reports) are due to FDOR? What were the volumes for the years 2010, 2011, 2012, 3013 and 2014? Answer: See response to Question #17. Question 170: Is the paper work accepted by FDOR electronic images or hard copies? Answer: For purposes of collections, both electronic and paper returns are acceptable. Question 171: The minimum collection activity described in 6.2.5.1 Taxpayer Notification (2 notices and 4 call attempts) required in 5 days after placement or over the placement period of 160 days? Answer: The first contact must be initiated within the first 5 days of receiving the referral file. The remaining attempts would be attempted over the placement period. Page 21 of 23