25RFP11629 3rd Party Debt RFP Final 3_17_2025.docx

STATE OF SOUTH DAKOTA

BUREAU OF HUMAN RESOURCES

AND ADMINISTRATION

500 EAST CAPITOL AVE

PIERRE, SD 57501

THIRD PARTY DEBT COLLECTION SERVICES

PROPOSALS DUE NO LATER THAN MAY 2, 2025, 5:00PM CT

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OFFEROR PRIMARY CONTACT INFORMATION

1.0 GENERAL INFORMATION

1.1 PURPOSE OF REQUEST FOR PROPOSAL (RFP)

The South Dakota Bureau of Human Resources and Administration is seeking offers from qualified collection firms to perform debt collection services on delinquent amounts owed to the State of South Dakota (State). The selected Contractor will collect debts assigned to them by the State’s Obligation Recovery Center (ORC). The ORC is the initial collector of debt held by the State. Debts which the ORC is unable to collect will be assigned to the Contractor.

The ORC is currently managed by Reliant Capital Solutions, LLC (Reliant). The ORC uses Reliant’s collection software platform to manage the collection process. All accounts placed for collection by state entities reside on this platform and all collection activity is performed within this platform, including activities performed by the Contractor. The selected Contractor shall provide labor and materials including, but not limited to, office space, equipment, and computers necessary to complete the required services for the State. The ORC will provide services necessary to support the Contractor as outlined in Section 3: Project Description.

As of February 2025, the ORC manages 165,664 active debts with a combined value of $143,171,262. A portion of this inventory is assigned to Contractor for collection effort. The following table shows the volumes of accounts assigned and collected by the OCA during the most recent three fiscal years.

The ORC receives debt from 22 different state entities. The table below shows total debt referred and collected on behalf of each state entity in Fiscal Year 2024. Collections for FY24 were $5,067,545, of which the OCA collected $1,151,003.

The State does not guarantee the amount of debt to be referred to, or collected by, the Contractor.

1.2 ISSUING OFFICE AND RFP REFERENCE NUMBER

The Bureau of Human Resources and Administration (BHRA) is the issuing office for this document and all subsequent addenda relating to it, on behalf of the State of South Dakota. The reference number for the transaction is RFP # 25RFP11629. This number must be referenced in all proposals, correspondence, and documentation relating to the RFP.

1.3 SCHEDULE OF ACTIVITIES (SUBJECT TO CHANGE)

1.4 PRE-PROPOSAL CONFERENCE

1.4.1 A virtual pre-proposal meeting will be held via Microsoft Teams on March 26, 2025 at 3:00 PM (CT) to provide an overview of the project and general requirements outlined in this RFP.

1.4.2 This meeting is mandatory to be eligible to submit a proposal. The State reserves the right to consider or deny, at its sole discretion, proposals from Offerors that do not attend the meeting.

1.4.3 To receive an invitation and meeting link, interested Offerors must email 25RFP11629@state.sd.us no later than March 25, 2025 at 5:00 PM (CT). Your email request must include your company name and the names, titles, and email addresses of attendees. Use the subject line: “25RFP11629 Pre-Proposal Meeting Request”.

1.5 SUBMITTING YOUR PROPOSAL

1.5.1 Proposals must be received by the deadline stated in the 1.3 Schedule of Activities. Proposals received after the deadline will be considered late and ineligible for consideration.

1.5.2 Proposals must be submitted electronically via email to 25RFP11629@state.sd.us with the subject line: “25RFP11629 Proposal Submission”.

1.5.3 The Offeror, or its authorized agent, must ensure the electronic copy includes a scanned ink signature or a digital signature. In the event the response is signed on behalf of the Offeror, the signatory must be legally authorized to bind the responder to the proposal. Proposals lacking proper signatures may be rejected.

1.5.4 All proposals and attachments must be in Microsoft Word, Microsoft Excel, or searchable PDF format. Do not submit PDFs derived from a scanned image or other formats that prevent search functionality.

1.5.5 No proposal shall be accepted from, or no contract or purchase order shall be awarded to, any person, firm, or corporation that is in arrears upon any obligations to the State of South Dakota, or that otherwise may be deemed irresponsible or unreliable by the State of South Dakota.

1.6 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION – LOWER TIER COVERED TRANSACTIONS By signing and submitting this proposal, Offeror certifies neither Offeror nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation, by any Federal department or agency, from transactions involving the use of Federal funds. Where the Offeror is unable to certify to any of the statements in this certification, the Offeror shall attach an explanation to its offer. Offeror further agrees it will immediately notify the State if during the solicitation process Offeror or its principals become subject to debarment, suspension, or ineligibility from participating in transactions by the federal government, or by any state or local government department or agency.

1.7 NON-DISCRIMINATION STATEMENT

The State of South Dakota requires all contractors and suppliers doing business with any State agency, department, or institution, provide a statement of non-discrimination. By signing and submitting its proposal, the Offeror certifies it does not discriminate in its employment practices with regard to race, color, creed, religion, age, sex, ancestry, national origin, or disability.

1.8 MODIFICATION OR WITHDRAWAL OF PROPOSALS

Proposals may be modified or withdrawn by the Offeror prior to the established due date and time. No oral, telephonic, telegraphic or facsimile responses or modifications to formal or informal bids, or Request for Proposals will be considered.

1.9 COMPLIANCE WITH SDCL CHAPTER 5-18A

For contractors, vendors, suppliers, or subcontractors who enter into a contract with the State of South Dakota by submitting a response to this solicitation or agreeing to contract with the State, the Offeror certifies and agrees that the following information is correct:

The Offeror, in preparing its response or proposal or in considering proposals submitted from qualified, potential vendors, suppliers, and subcontractors, or in the solicitation, selection, or commercial treatment of any vendor, supplier, or subcontractor, is not an entity, regardless of its principal place of business, that is ultimately owned or controlled, directly or indirectly, by a foreign national, a foreign parent entity, or foreign government from China, Iran, North Korea, Russia, Cuba, or Venezuela, as defined by SDCL 5-18A. It is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to reject the bid or response submitted by the Offeror on this project and terminate any contract awarded based on the bid or response. The successful Offeror further agrees to provide immediate written notice to the contracting executive branch agency if during the term of the contract it no longer complies with this certification and agrees such noncompliance may be grounds for contract termination.

1.10 RESTRICTION OF BOYCOTT OF ISRAEL

For contractors, vendors, suppliers, or subcontractors with five (5) or more employees who enter into a contract with the State of South Dakota that involves the expenditure of one hundred thousand dollars ($100,000) or more, by submitting a response to this solicitation or agreeing to contract with the State, the Offeror certifies and agrees that the following information is correct:

The Offeror, in preparing its response or offer or in considering proposals submitted from qualified, potential vendors, suppliers, and subcontractors, or in the solicitation, selection, or commercial treatment of any vendor, supplier, or subcontractor, has not refused to transact business activities, has not terminated business activities, and has not taken other similar actions intended to limit its commercial relations, related to the subject matter of the bid or offer, with a person or entity on the basis of Israeli national origin, or residence or incorporation in Israel or its territories, with the specific intent to accomplish a boycott or divestment of Israel in a discriminatory manner. It is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to reject the bid or response submitted by the Offeror on this project and terminate any contract awarded based on the bid or response. The successful Offeror further agrees to provide immediate written notice to the contracting executive branch agency if during the term of the contract it no longer complies with this certification and agrees such noncompliance may be grounds for contract termination.

1.11 CERTIFICATION OF NO STATE LEGISLATOR INTEREST

Offeror (i) understands neither a state legislator nor a business in which a state legislator has an ownership interest may be directly or indirectly interested in any contract with the State that was authorized by any law passed during the term for which that legislator was elected, or within one year thereafter, and (ii) has read South Dakota Constitution Article 3, Section 12 and has had the opportunity to seek independent legal advice on the applicability of that provision to any Agreement entered into as a result of this RFP. By signing an Agreement pursuant to this RFP, Offeror hereby certifies that the Agreement is not made in violation of the South Dakota Constitution Article 3, Section 12.

1.12 CONTRACTOR INQUIRIES

Offerors may email inquiries concerning this RFP to obtain clarification of requirements. No inquiries will be accepted after the date and time indicated in 1.3 Schedule of Activities. Email inquiries to 25RFP11629@state.sd.us with the subject line: “25RFP11629 Request for Clarification”.

The Office of Procurement Management will respond to Offeror inquiries (if required) via email. In addition, the inquiries and the State’s response will be posted on the State’s e-procurement platform hosted by ESM Solutions Inc. Offerors may not rely on any other statements, either of a written or oral nature, that alter any specification or other term or condition of this RFP. Offerors will be notified in the same manner as indicated above regarding any modifications to this RFP.

1.13 PROPRIETARY INFORMATION

The proposal of the successful Offeror becomes public information. Proprietary information can be protected under limited circumstances such as client lists and non-public financial statements. An entire proposal may not be marked as proprietary. Offerors must clearly identify in the Executive Summary and mark in the body of the proposal any specific proprietary information they are requesting to be protected. The Executive Summary must contain specific justification explaining why the information is to be protected. Proposals may be reviewed and evaluated by any person at the discretion of the State. All materials submitted become the property of the State of South Dakota and may be returned only at the State's option.

1.14 LENGTH OF CONTRACT

The initial term of the contract(s) resulting from this RFP will be for approximately 27 months, starting on the date of contract execution between the parties and ending on November 14, 2027 (the initial term is set to align with the ORC’s contract). At the sole discretion of the BHRA this contract may be renewed for up to four (4) one (1) year extensions.

Renewal shall be contingent, at a minimum, on satisfactory performance by the Contractor as determined by the State. If the State desires to renew the contract resulting from this RFP, it will provide written notice to the Contractor prior to the contract expiration date. Renewal is subject to the same terms, conditions, and specifications contained within this RFP, unless otherwise agreed to in writing by the parties.

1.15 GOVERNING LAW

The agreement resulting from this RFP shall be governed by and construed in accordance with the laws of the State of South Dakota, without regard to any conflicts of law principles, decisional law, or statutory provision which would require or permit the application of another jurisdiction’s substantive law. Venue for any and all legal action regarding or arising out of the transaction covered herein shall be solely in the Circuit Court, Sixth Judicial Circuit, Hughes County, State of South Dakota. The laws of South Dakota shall govern this transaction.

1.16 DISCUSSIONS WITH OFFERORS (ORAL PRESENTATION/NEGOTIATIONS)

Oral presentations by Offerors to clarify or expand upon proposal submissions may be required at the sole discretion of the State. However, the State may award a contract(s) based on the initial proposals received. If oral presentations are required, they will be scheduled after the submission of proposals. Oral presentations will be made at the Offeror’s expense.

This process is a Request for Proposal/Competitive Negotiation process. Each proposal shall be evaluated and each respondent shall be available for negotiation meetings at the State’s request. The State reserves the right to negotiate on any and/or all components of every proposal submitted. From the time proposals are submitted until formal award of a contract, each proposal is considered a working document and, as such, will be kept confidential. Any negotiation discussions will also be held as confidential until such time as an award is completed.

2.0 STANDARD CONTRACT TERMS AND CONDITIONS

Any Contract or Agreement resulting from this RFP will include the State’s standard terms and conditions as listed below, along with any additional terms and conditions as negotiated by the parties:

2.1 The Contractor will perform those services described in Section 3. Project Description. The Contractor’s response to this RFP shall be considered part of the scope of services.

2.2 The services to be provided under the contract shall commence and terminate on mutually agreed upon dates. Terms for early termination shall be included in the Agreement as negotiated by the parties.

2.3 The terms of the Agreement shall state whether or not the Contractor will use State equipment, supplies or facilities. If the Contractor will use State equipment, supplies or facilities, the scope and conditions of such use will be clearly indicated in the Agreement.

2.4 Unless otherwise negotiated and agreed upon by the parties, the State will make payment in compliance with the Prompt Payment Act, SDCL 5-26 for services provided under the Agreement.

2.5 The Agreement shall indicate whether or not the State shall have the option to renew the Agreement. If a renewal option is specified, the State shall have the option to renew the Agreement (unless otherwise modified by a special contract term, condition, or specification), under the same terms and conditions, for one (1) year intervals. Notice of intent to renew shall be given by the State to the Contractor as mutually agreed upon prior to the end of the current contract term. If the notice of intent to renew is given, the Agreement shall renew unless terminated by either party pursuant to the Termination Provision of the Agreement.

2.6 The Contractor agrees to indemnify and hold the State of South Dakota, its officers, agents and employees, harmless from and against any and all actions, suits, damages, liability or other proceedings that may arise as the result of performing services hereunder. This section does not require the Contractor to be responsible for or defend against claims or damages arising solely from errors or omissions of the State, its officers, agents and employees.

2.7 The Contractor, at all times during the term of the Agreement, shall obtain and maintain in force insurance coverage of the types and with the limits as follows:

2.7.1 Contractor shall maintain occurrence-based commercial general liability insurance or equivalent form of coverage with a limit of not less than one million dollars ($1,000,000) for each occurrence. If such insurance contains a general aggregate limit it shall apply separately to this Agreement or be no less than two times the occurrence limit. The insurance policy shall name the State of South Dakota, its officers and employees, as additional insureds, but liability coverage is limited to claims not barred by sovereign immunity. The State of South Dakota, its officers and employees do not hereby waive sovereign immunity for discretionary conduct as provided by law.

2.7.2 Contractor agrees to procure and maintain professional liability insurance or miscellaneous professional liability insurance with a limit not less than one million dollars ($1,000,000).

2.7.3 The Contractor shall procure and maintain workers’ compensation and employers’ liability insurance as required by South Dakota law.

2.7.4 Before beginning work under the Agreement, the Contractor shall furnish the State with properly executed Certificates of Insurance which shall clearly evidence all insurance required in this Agreement and which provide that such insurance may not be canceled, except on 30 days’ prior written notice to the State. The Contractor shall furnish copies of insurance policies if requested by the State.

2.8 While performing services under the Agreement with the State, the Contractor is an independent Contractor and not an officer, agent, or employee of the State of South Dakota.

2.9 Contractor agrees to report to the State any event encountered in the course of performance of this Agreement which results in injury, or death, to the person or property of third parties, or which may otherwise subject Contractor or the State to liability. Contractor shall report any such event to the State immediately upon discovery.

Contractor’s obligation under this section shall only be to report the occurrence of any event to the State and to make any other report provided for by its duties or applicable law. Contractor’s obligation to report shall not require disclosure of any information subject to privilege or confidentiality under law (e.g., attorney-client communications). Reporting to the State under this section shall not excuse or satisfy any obligation of Contractor to report any event to law enforcement or other entities under the requirement of any applicable law.

2.10 TERMINATION PROVISION

The Agreement may be terminated by either party by providing written notice as mutually agreed and specified in the Agreement. In the event the Contractor breaches any of the terms or conditions of the Agreement, the Agreement may be terminated by the State at any time with or without notice. If termination for such a default is affected by the State, any payments due to Contractor at the time of termination may be adjusted to cover any additional costs to the State because of Contractor’s default. Upon termination the ORC may take over the work and may award another party an agreement to complete the work under the Agreement. If after the State termination for a default by Contractor it is determined that Contractor was not at fault, then the Contractor shall be paid for eligible services rendered and expenses incurred up to the date of termination.

In the event of contract termination, the Contractor shall discontinue collection action as of the contract termination date. Any moneys received by the Contractor on behalf of the State after contract termination shall not be subject to collection fee. The Contractor shall confirm to the ORC that the current status of each account is properly noted in the Debt Management system.

2.11 The Agreement depends upon the continued availability of appropriated funds and expenditure authority from the Legislature for the intended purpose. If for any reason the Legislature fails to appropriate funds or grant expenditure authority, or funds become unavailable by operation of law or federal funds reductions, the Agreement will be terminated by the State. Termination for any of these reasons is not a default by the State nor does it give rise to a claim against the State.

2.12 The Agreement may not be assigned without the express prior written consent of the State. This Agreement may not be amended except in writing, which writing shall be expressly identified as a part thereof and be signed by an authorized representative of each of the parties thereto.

2.13 The Contractor will comply with all federal, state and local laws, regulations, ordinances, guidelines, permits, requirements and debt collection licenses applicable to providing services pursuant to the Agreement and will be solely responsible for obtaining current information on such requirements.

2.14 In the event that any court of competent jurisdiction shall hold any provision of the Agreement unenforceable or invalid, such holding shall not invalidate or render unenforceable any other provision thereof.

2.15 All other prior discussions, communications and representations concerning the subject matter of the Agreement are superseded by the terms of the Agreement, and except as specifically provided therein, the Agreement constitutes the entire agreement with respect to the subject matter thereof.

2.16 Any notice or other communication required under the Agreement shall be in writing and sent to the, appropriate address and individuals indicated in the Agreement, or such authorized designees as either party may from time to time designate in writing. Notices or communications to or between the parties shall be deemed to have been delivered when mailed by first class mail, provided that notice of default or termination shall be sent by registered or certified mail, or, if personally delivered, when received by such party.

2.17 The Contractor may not use subcontractors to perform the services described in the Agreement.

2.18 Nothing in the Agreement will be intended to constitute a waiver of sovereign immunity by or on behalf of the State of South Dakota, its agencies, officers or employees.

3.0 PROJECT DESCRIPTION

Reliant Capital Solutions, LLC is the prime contractor providing platform management and third-party collection management services to the ORC. All accounts placed for collection by state agencies/departments reside on the ORC platform and all collection activity is conducted within this platform, including activities performed by the Contractor.

In addition to the collection platform, the Contractor will use DialConnection, the ORC’s cloud-based telephony platform, for inbound and outbound calls and call recordings. The ORC will also provide correspondence functionality, a payment portal (credit/debit card/ACH payments from debtors), and data enhancement and skip tracing services (deceased, incarcerated, bankruptcy scrubs, recovery scores and phone/address searches) through LexisNexis.

The Contractor will work off these platforms. There is no fee to the Contractor to use the platforms, except for telephony charges, letters, and data scrubs. These services will be provided at cost and billed monthly to the Contractor.

The ORC will provide a trainer to educate the Contractor’s training team on the ORC's role in collecting South Dakota debt, the details of each type of debt, relevant South Dakota debt collection laws, the ORC's customer-focused approach to debt resolution, the system the Contractor will use, and the process for administering training updates.

Major advantages to having both the ORC and Contractor using the ORC platform are as follows:

Increased security, as all activities are performed on a single platform and no data leaves the system.

All security and platform management is provided by Reliant.

The ORC Platform is National Institute of Standards and Technology (NIST) 800-53 and Payment Card Industry (PCI) Level 3 compliant.

No IT personnel needed by the Contractor to manage the system.

No reconciliation or maintenance of trust accounts by the Contractor.

All funds collected are deposited directly into ORC trust accounts immediately.

No file exchange development, support, or maintenance.

No dialer management or maintenance.

No collection platform system maintenance or monitoring.

No back-office operations.

Reduced client service responsibilities.

Greater transparency and better customer experience with improved outcomes.

Improved performance, increased collections, and enhanced compliance.

Uniform collection process results in a measurable and predictable performance.

3.1 CONTRACTOR REQUIREMENTS

The Offeror’s proposal must explain in detail exactly how it will meet the requirements listed in the remainder of Section 3. These requirements are mandatory. To accomplish this, the submission should convey:

· The Offeror’s specific plans to execute these requirements for the State of South Dakota, including any variation on approach depending on debt type.

· The Offeror’s demonstrated history of having successfully executed similar contracts involving the same or similar debt types and same or similar methodology, including data documenting that success.

· An affirmative response that the Offeror understands and agrees to each requirement in Section 3. At the Offeror’s discretion, a single affirmative response for the entire Section 3 is acceptable.

Offeror must hold appropriate licenses or permits to collect debts in all 50 states. Furthermore, each collection representative assigned to this project must be individually licensed or permitted in accordance with state requirements, including but not limited to Arkansas, Idaho, and Minnesota.

3.2 PROMPT UNDERTAKING

3.2.1 The Contractor must promptly undertake the collection of all accounts assigned by the ORC without regard to the amount of debt to achieve maximum recovery of debts.

3.2.2 Upon receiving accounts assigned by the ORC, the Contractor shall use its best effort to locate the debtor and collect the total amount due on each account. The Contractor shall use the following guide as the minimum acceptable standard of collection activity:

· Notify the debtor within five (5) workdays of receipt of the account from the ORC that the debt has been assigned to them for collection.

· Attempt at minimum two telephone contact attempts within 10 days of assignment of each account, regardless of the dollar value.

· Perform at least one collection activity each month on each assigned account.

3.2.3 The Contractor shall promptly update all assigned accounts in the ORC’s Debt Management system which will verify that collection activities are being performed as agreed. Upon written request by the ORC or state agency, Contractor shall confirm all collection activities on the requested accounts are accurate and up to date.

3.3 SPECIFIC CONTRACTOR TASKS

3.3.1 Once an account has been assigned by the ORC to the Contractor, the ORC agrees there shall be no further dunning by the ORC. The Contractor shall be the sole collector for that account while the case is placed with the Contractor.

3.3.2 The ORC will assign accounts via account assignment within the ORC Debt Management system. The Contractor must be able to adapt to any changes that might occur in the assignment method/format. Any account assigned will include the total amount of debt, penalty, interest and fees (where applicable) due the State Entity. Additionally, a collection charge of twenty (20) percent (applied to the amount due, penalty and interest) will be applied to each account by the ORC.

3.3.3 If, after the beginning of collection activities, the debtor disputes the amount owed thus preventing the Contractor from proceeding, the Contractor shall obtain from the debtor a thorough written explanation as to its reasons for dispute. The Contractor will appropriately notate the account and change the Debtor/Account status accordingly. This information shall be forwarded to the ORC personnel for review and resolution. The Contractor must not communicate with the referring entity but must always use the ORC as its only point of contact.

3.3.4 The ORC shall share settlement instructions, if any, regarding each debt referred. These instructions will be provided to Contractor by the ORC.

3.3.5 Any claims the Contractor determines to be best pursued through litigation require prior approval from the ORC. If approved, the Contractor shall collect accounts from said debtors in the name of the Contractor and at the expense of the Contractor. Reasonable asset location will be performed by the Contractor, which shall be deemed to include discovery in the aid of execution, to satisfy judgments.

3.3.6 On occasion the ORC will adjust accounts based on information provided by a state agency. These adjustments will be communicated to the Contractor via a system note to the account. The Contractor shall notate accounts accordingly once they have been determined as uncollectible after the Contractor has exhausted all collection efforts.

3.4 CONTRACTOR RESPONSIBILITIES

3.4.1 The Contractor shall comply with the provisions of federal, state and local regulations to ensure that no employee or applicant for employment is discriminated against because of race, religion, color, sex or national origin. The Contractor shall have an Affirmative Action plan and shall provide the appropriate state and federal agencies with reports required to ensure compliance.

3.4.2 The Contractor shall comply with the Americans with Disabilities Act. In the event of the Contractor’s noncompliance with the nondiscrimination clauses, the Americans with Disabilities Act, or with any other such rules, regulations, or orders, the Contract resulting from this RFP may be canceled, terminated or suspended in whole or in part and the Contractor may be declared ineligible for further contracts.

3.4.3 The Contractor will keep in effect an employee fidelity bond for the period of the contract plus one-hundred and eighty (180) calendar days thereafter in the amount of $100,000.00 to protect the ORC against loss through failure by the Contractor or any of its employees or agents to remit to the ORC all monies due. This will be in a form approved by the Bureau of Administration and the Surety Company will be licensed to do business in South Dakota and will be a company approved and licensed by the South Dakota Division of Insurance.

3.4.4 The Contractor shall maintain all licenses applicable and required to operate as a professional collection agency.

3.5 CUSTOMER SERVICE

3.5.1 Collection contacts must be performed in a professional and respectful manner. The ORC will not tolerate harassment, verbal abuse or compromising the rights of the debtors and may result in the cancellation of the contract if this requirement is not met during the duration of the contract.

3.5.2 The Contractor must provide detailed information on its customer service record and provisions in place to demonstrate how it will:

· Ensures contacts are handled appropriately and professionally;

· Confirm the accuracy and timeliness of information provided to debtors; and

· Record and resolve customer complaints (including complaints received from the Better Business Bureau, a State’s Attorney General Office, and complaints from debtors directly to the Contractor).

3.5.3 Additionally, South Dakota is comprised of many cultures which require different approaches for providing exceptional customer service experiences. Please provide detailed information about how your firm will:

· Locate debtors across the state

· Engage debtors in a manner that will encourage them to address the account(s) in question

· Develop workable Ability to Pay models

3.6 PAYMENTS

The sole consideration/compensation to be paid to the Contractor for its services shall be a percentage of collections as outlined in Section 3.7 Gross Remittance of Collection.

3.7 GROSS REMITTANCE OF COLLECTION

3.7.1 The ORC shall add a twenty percent (20%) collection charge on placements referred to the Contractor.

3.7.2 The Contractor agrees that all funds collected, including the collection charge, shall be immediately deposited in the trust account maintained by the ORC. In turn, the ORC will pay any applicable negotiated collection fees to the Contractor in accordance with the Prompt Payment Act, SDCL Chapter 5-26. The processes and forms to be used for such remittances shall be prescribed by the ORC.

3.7.3 The ORC will pay the Contractor seventeen percent (17%) of the debt referred and collected (excluding the collection charge). Reliant Capital Solutions, LLC (the prime contractor for the ORC) will invoice the Contractor on a monthly basis for actual costs of all letter, skip tracing, and telephony services incurred on the accounts assigned to the Contractor.

3.8 AUDIT OR EXAMINATION OF RECORDS

3.8.1 The Contractor agrees the ORC, or any authorized representative of the State, shall have access to and the right to examine, audit, excerpt, and transcribe any directly pertinent books, documents, records, paper, or electronic files, of the Contractor relating to orders, invoices, or payments of this contract.

3.8.2 All records relating to this contract shall be retained for five (5) years following the date of final payment or completion of any required audit, whichever is earlier. The ORC will provide the Contractor with reports detailing collection activity such as, but not limited to, the debtor name, account number, date of payment, amount of payment, and date the payment was posted to the ORC Debt Management system.

3.8.3 Compliance with this clause does not relieve the Contractor from retaining any records required by other laws or regulations of federal, state or local government units.

3.9 SECURITY OF DATA

3.9.1 Information, accounts and data available from the ORC are of a confidential nature and may include personally identifiable information (PII) and protected health information (PHI) protected under the Health Information Portability and Accountability Act of 1996 (HIPAA) and/or the Health Information Technology for Economic and Clinical Health Act (HITECH) (hereinafter individually or collectively referred to as “Protected Information”). Protected Information includes any identifiable information about a debtor’s physical or mental health, the health care received, and the payment for health care. Contractor shall execute a separate HIPAA Business Associate Agreement (BAA) certifying claims containing an individual’s personal health information.

3.9.2 In addition to the obligations set forth in the BAA, all medical information and/or data that is derived from or obtained during the course of Contractor’s services shall be treated by Contractor and its employees, agents and representatives as confidential so as to comply with all applicable state and federal laws and regulations.

3.9.3 In performance of the contract, Contractor agrees that it will comply with all laws and regulations relating to the privacy and confidentiality of data received under this contract. Contractor agrees and assures that it, its officers, employees and agents will be bound by the same privacy and confidentiality laws and regulations in the same manner and to the same extent as the officials and employees of the State. Contractor agrees that neither it, nor its officers, employees or agents will disclose or make public any information received by the Contractor on behalf of the ORC other than that authorized by law.

3.9.4 The Contractor agrees that any debt related information will be treated as confidential and will be maintained in accordance with state and federal confidentiality requirements and will be used solely for purposes of administering this contract, unless otherwise required by law. The Contractor affirms that access will be given only to authorized personnel, as deemed appropriate and necessary by the Contractor. The Contractor further agrees that all personnel authorized to handle such debt-related information will have signed confidentiality agreements. The Contractor will maintain a list of these employees with authorized access and such list will be provided to the State. On an annual basis the ORC, with the Contractor, will review all personnel with authorized access to the ORC Debt Management system.

3.9.5 The Contractor will be required to assume responsibility for the safety and security of confidential records, whether they are hard copy or electronic. Except in the performance of their duties, neither Contractor nor its employees will browse the debtors’ records or any return or debtor information. All confidential information must be securely stored in a manner to prevent unauthorized access. Failure to comply with these provisions may result in contract termination and other actions as appropriate.

3.9.6 The State requires all employee(s) of the Contractor, agents, assigns and or affiliated entities who have access to protected personally identifiable information and confidential information, or have access to secure areas, to undergo fingerprint-based background checks. These fingerprints will be used to check the criminal history records of both the State and the Federal Bureau of Investigation. These background checks must be performed by the State with support from the State’s law enforcement resources. The State will supply the fingerprint cards and prescribe the procedure to be used to process the fingerprint cards. Project plans should allow two (2) to four (4) weeks to complete this process. If work assignments change after the initiation of the project covered by this agreement so that additional employee(s) of the Contractor, Agents, Assigns and or Affiliated Entities will have access to protected personally identifiable information or other confidential information or have access to secure areas, background checks must be performed on any additional employees who will complete any of the referenced tasks. The State reserves the right to require the Contractor to prohibit any employee, Agents, Assigns and or Affiliated Entities from performing work under this Agreement whenever the State, in its sole discretion, believes that having a specific employee, agent assign or affiliated entity performing work under this Agreement is detrimental to the project or is considered by the State to be a security risk, based on the results of the background check. The State will provide the Contractor with notice of this determination. The Contractor must notify the ORC of any employee terminations, 48 hours prior to such termination, so that access of the terminated employee from the ORC Debt Management System is removed.

3.9.7 Any hard copy documents and printouts that may result during the collection process will be either returned to the ORC or shredded prior to disposal. Any hard copy documents received from or about the debtor or their debts will be scanned and uploaded to the ORC Debt Management system in a timely fashion. When it is not possible to return the documents to the ORC the Contractor will be responsible for the destruction of the documents and printouts and will provide the ORC with a statement containing the date of destruction, description of material destroyed, and the method used to destroy the documents.

3.9.8 The Contractor must indemnify and hold the ORC harmless from any and all liabilities arising from the disclosure by Contractor, its officers, employees or agents of any information required to be held private, confidential or not-public under the provisions of the contact and law.

3.10 ORC RESPONSIBILITIES

3.10.1 The ORC shall establish and maintain a debt management system to compile the information provided by referring entities, to track collection efforts for all debt referred to the center, to cross-reference and identify debtors for collection purposes, and to maintain all information provided or collected from all sources concerning addresses, financial records, and any other information useful to the center.

3.10.2 The ORC will use the collection software platform managed by Reliant (referred to as the “ORC Platform”) as the debt management system. This system will act as the system of record, be used for the receipt of debts, and to monitor and manage the entire collection process including the following:

· Receipt of debt;

· Accounting functions including cost recovery and collection charge fees;

· Payment allocation and distribution (Trust Account for all debtor payments to be deposited into);

· Provide the following standard reports: Assignment Report, Inventory Report, Stipulated Payment Report, Account Closure Report;

· Work with the Contractor to develop custom reports which the Contractor may need from time to time in order to properly perform collection activities. Additionally, the ORC will provide the Contractor with an Ad Hoc reporting tool for developing custom reports;

· Adjustments;

· Correspondence;

· Payment agreements including automated monitoring;

· Incoming and outgoing telephone calls;

· License suspension/revocation process;

· Outside collection agency management;

· Assigning accounts to/from third-party debt collection agencies;

· Accounting and reconciliation functions with third-party debt collection agencies;

· Auditing third-party debt collection agencies for compliance;

· Skip tracing; and

· A consumer payment portal for receiving payments from debtors (all electronic payments taken from the debtor will be processed through this payment portal). All debtor payments will be processed and deposited in a trust account maintained by the ORC.

3.10.3 The ORC will provide a point of contact/manager of the process.

3.10.4 The ORC will provide meeting sites when necessary.

3.10.5 The ORC will initially respond to inquiries or requests from the Contractor within one (1) business day or as otherwise agreed.

3.10.6 The ORC will collect statistical information regarding Contractor’s performance to aid the Contractor and ORC in developing strategic debt placement or assignments. This information will be made available to the Contractor monthly.

3.10.7 The ORC will provide information specific to the accounts assigned to the Contractor to aid in the collection of accounts.

3.10.8 The ORC will be available for consultation throughout the contract.

3.11 TIME TO COLLECT

In your description of collection efforts please provide details about how your firm will handle accounts assigned during Phase #1.

4.0 PROPOSAL REQUIREMENTS

Offeror is cautioned that it is the Offeror’s sole responsibility to submit information related to the evaluation categories and that the State of South Dakota is under no obligation to solicit such information if it is not included with the proposal. Failure to submit such information may cause an adverse impact on the evaluation of the proposal.

4.1 All questions and comments regarding this RFP, the evaluation, etc. must be directed to the buyer of record indicated on the first page of this RFP in accordance with 1.12 Contractor Inquiries.

4.2 Offerors, their employees, or agents may not contact any state employee other than the buyer of record regarding any of these matters during the solicitation and evaluation process. Inappropriate contact is grounds for suspension and/or exclusion from future procurements.

4.3 Submit one (1) electronic copy of the entire proposal, including all attachments, to the email address indicated in 1.5 Submitting Your Proposal.

4.4 Proposal must be in Microsoft Word or searchable PDF format. Scanned documents included as attachments must be made searchable prior to submission using OCR software.

4.5 Proposal must be page numbered and have an index and/or a table of contents referencing each response section and associated page number.

4.6 The total number of pages including the RFP Cover Page, Executive Summary, and Detailed Response must not exceed thirty (30) pages. (Key executive and manager resumes and/or biographies may be added as an appendix to the proposal and are not included in the page limit).

4.7 The Offeror may be required to submit a copy of its most recent audited financial statements upon the State’s request.

4.8 The proposal of the successful Offeror becomes public information. Proprietary information can be protected under limited circumstances as described in Section 1.13. The successful Offeror may be asked to submit a separate copy of the proposal with all proprietary information clearly redacted.

5.0 RESPONSE FORMAT

All proposals must be organized and labeled with the following section headings:

5.1 RFP COVER PAGE

Return the completed RFP Cover Page signed by an authorized representative.

5.2 EXECUTIVE SUMMARY

An executive summary, no more than two (2) pages long, briefly describing the Offeror’s proposal and highlighting the major features of the proposal. Indicate any requirements that cannot be met by the Offeror. The reader should be able to determine the essence of the proposal by reading the executive summary. Proprietary information requests must also be identified in this section.

5.3 DETAILED RESPONSE

This section should constitute the majority of the proposal and must contain at least the following mandatory information.

5.3.1 BUSINESS ORGANIZATION

Provide information on your business organization to include, at a minimum, the following:

· Company ownership (persons and percentage of ownership, parent company, subsidiaries, etc.);

· Legal status (corporation, partnership, etc);

· Primary point of contact;

· Years in business;

· Physical locations and business hours;

· Businesses or services the organization is engaged in; and

· Credentials and/or memberships.

5.3.1.1 COMPANY QUALIFICATIONS Provide a complete listing of all states Offeror is licensed to collect as a third-party debt collection agency.

5.3.1.2 A description of the Offeror’s experience performing the scope of work, citing previous work experience with contracts having similar requirements.

5.3.1.3 Provide the following information for at least three (3) references evidencing previous and/or current service/contracts performed by the Offeror’s organization similar to the requirements of this RFP. Provide the same information for any service/contracts that have been terminated, expired, or not renewed in the past three (3) years.

· Name, address, and telephone number of client/contracting agency and a representative of that agency who may be contacted for verification of all information submitted;

· Dates of the service/contract;

· A brief description of the services performed and requirements thereof; and

· Results (placement amount, asset type, recovery percentages by month).

5.3.2 COLLECTION STAFFING

5.3.2.1 Describe your project management approach. Provide resumes or biographies for key executives and managers, including the collection manager assigned to this project.

5.3.2.2 Provide your staffing plan for this contract including:

· Location of collection staff;

· Number of collectors;

· Whether collection staff are dedicated or pooled;

· Accounts-to-collector ratio; and

· Average years of collection experience of collection staff.

5.3.2.3 Explain your hiring policies and collector training program. Include education and experience requirements for collection staff and information about how you prepare your staff to meet the needs of the diverse communities and…