06CO-S3440 Cost Schedule Attachment.docx

RFQ 06CO-S3440

Debt Collection Services

COST SCHEDULE

Payments on the contract will be based on the percentage of the funds collected. For the purposes of this Attachment, the following terms and definitions will be utilized:

Amount Demanded: Pursuant to NRS 353C.135(1)(a), for debts in excess of $300, the debtor is required to pay costs and fees incurred to collect the debt in addition to the principal amount of debt owed to the State. This is the total amount of money owed by the debtor after adding the State Controller’s Office (SCO) Fee and the Collection Fee to the Amount Placed.

Amount Placed: The principal amount of debt owed by the debtor to the State which is placed for collection with a vendor.

Collection Fee Projected: The collection service fee projected, expressed as a percentage, added by the vendor to the Amount Placed and reflected in the demand letter sent to the debtor as the Amount Demanded. This applies to debts in excess of $300. See Table 1, Column C, for Collection Fee limits that will be accepted by SCO under this RFQ.

SCO Fee Projected: Pursuant to NRS 353C.135(1)(b), for debts in excess of $300, the Controller’s Office is authorized to collect a fee of 2% of the principal amount of debt. The vendor is required to add the 2% SCO Fee to the Amount Placed prior to adding the Collection Fee.

Vendor Fee: The amount of money retained by, or paid to, the vendor for monies recovered as a result of vendor’s collection services. This fee, expressed as a percentage, is derived from the corresponding, higher Collection Fee percentage added to the Amount Placed. See Table 1, Column D, for Vendor Fee limits that will be accepted by SCO under this RFQ.

For debts up to and equal to $300, costs of collection shall not be collected from the debtor, see Section 2.5, therefore, the maximum amount that the vendor may collect is the Amount Placed. The vendor shall not add the SCO Fee or the Collection Fee to the Amount Placed but will instead deduct the Vendor Fee percentage from the amount collected. See Table 4 for illustration.

SCO will accept proposals within the fee limits set forth in Table 1 below for the Collection Fee Projected and corresponding Vendor Fee. The Vendor Fee is derived from the corresponding Collection Fee in accordance with standard industry practice utilized by collection agencies where the Collection Fee is added prior to collection efforts and the Vendor Fee is deducted after the debt is recovered. Vendors may submit proposals based on either the Collection Fee or Vendor Fee, however, vendors must specify which fee-type is used. For accounts up to and equal to $300, only the Vendor Fee is applicable.

Table 1: Collection Fee and Corresponding Vendor Fee Limits under this RFQ

COLLECTION FEE PROJECTED

C

VENDOR FEE

Placements

Limits on the amount added to the debt when account is placed for collection

Limits on the amount retained by vendor on actual funds recovered

Legal Placements

Open for proposal

As shown in Table 2 below, the Controller’s Office has set three tiers of accounts based on the Amount Placed and will accept proposals with different percentages for each tier within the fee limits set forth in Table 1 above. The fees in Table 2 are for initially placed accounts. Fees for secondary or tertiary placements may be proposed at different percentages, again within the fee limits set forth in Table 1.

Failure to submit Vendor Fees in the format requested below may determine the vendor’s entire proposal unresponsive. The Controller’s Office will also negotiate with the vendor for legal placements and for specialized services. The Controller’s Office will not be responsible for fees for checks returned for non-sufficient funds.

Table 2: Controller’s Office Amount Placed Tiers

Enter Proposed fee vendor will charge for collections, expressed as Vendor Fee In in the empty boxes below

Vendors must complete and submit the above form (Table 2) with proposal fees.

Sample table to show calculations for Table 3 and 4

Table 3: Summary to illustrate fee calculations – Line Item 001- Primary Placement- Accounts up to and equal to $300

Table 4 Summary to illustrate fee calculations – Line Item 002- Primary Placement- Accounts in excess of $300.

Sample fees:

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