T1426 - Administration of Deficient and Delinquent Tax Accounts

The State of New Jersey, Department of the Treasury, Division of Purchase and Property, awarded Contract 23-PROS1-109522 to Coast Professional, Inc. for the administration, resolution, and collection of deficient and delinquent tax accounts. The five-year base contract, effective July 1, 2026, through June 14, 2031, with an option to extend for up to two additional years in one-year increments, requires all work to be performed at a contractor-operated facility located within 40 miles of Trenton, New Jersey. Coast Professional, Inc., headquartered in Geneseo, New York, will assume responsibility for managing approximately 188,546 business accounts totaling $1.23 billion and 109,454 individual accounts totaling $149.1 million in delinquent New Jersey tax debt.

The contract structure establishes performance-based compensation through an annual collection percentage fee ranging from 9.85% in Year 1 to 10.10% in Year 5 on eligible revenue collected, combined with all-inclusive hourly rates for staffing positions including Senior Manager/Project Manager, Supervisor, Assistant Supervisor, Representative, Clerical Support, and Trainer. Hourly rates escalate annually across the contract period, with standard operational rates ranging from $24.97 to $94.10 per hour in Year 1 and increasing to $25.98 to $97.92 per hour by Year 5, with additional extended operational hours rates applicable for support services and assistance. Coast Professional must maintain a staff of approximately 225 full-time employees, maintain a local office of at least 26,000 square feet, and comply with comprehensive federal tax information security requirements, background investigation standards, confidentiality agreements, and state procurement regulations.