5-Collection Services Statement of Needs.docx

Request for Proposal Debt Collection Services FY27

RFP # SLCC2026-W1015

RFP Issued February 17, 2026

RFP Questions March 16, 2026, at 4:30 PM

Proposal Due Date April 15, 2026, at 2:00 PM

SLCC2026-W1015 SLCC Debt Collection Services FY27

Salt Lake Community College Purchasing Services 4600 S Redwood Rd Salt Lake City, UT 84123

STATEMENT OF NEEDS

OBJECTIVE

Obtain collection services that will enhance the ability for SLCC Student Loans and Receivables to collect on past due student and non-student accounts. Provide services to aid in locating individuals owing on past due accounts. Provide collection services which are in the best interest of SLCC Student Loans and receivables.

SCOPE OF WORK AND SPECIFICATIONS

Proposals will be accepted from collection agencies that meet the minimum qualifications. The purpose is for the contracting of collection services to increase the collection of delinquent accounts for Salt Lake Community College (SLCC), Student Loans and Receivables. Collection agencies will provide collection services, which may include any of the following for students and non-students: accounts receivable & return of funds (Title IV returns & tuition accounts), parking fines, library fines, returned checks (NSF), Institutional Loans, daycare, and room rentals. It is the intention of SLCC to select multiple agencies to provide services. The College will have the discretion regarding the number and type of accounts placed with the awarded collection agency or agencies.

In compliance with the UDAAP (Unfair, Deceptive and Abusive Acts or Practices Act) the following collection contingency fee shall be the sole consideration paid to Contractor for its services under this Contract for all student and nonstudent AR accounts: 20% collection contingency fee on the delinquent balance of each account collected on first placements, 23% collection contingency fee on all delinquent balance of each account collected for second, third or more placements, and 25% collection contingency on international students residing outside the United States. Percentage of collection contingency fee shall be based on the money collected which is past due and which is forwarded to the College. Payments will be net contingency fee to the College.

SLCC currently has over 6,000 past due accounts placed for a total of $7,600,000.00 broken down into approximately 10 categories… AR 1st, AR 2nd, Returned Checks 1st, Returned Checks 2nd, Childcare 1st, Childcare 2nd, Library 1st, Library 2nd, Non-Student 1st, Non-Student 2nd.

ADDITIONAL REQUIREMENTS

This section is to provide additional information on other requirements which will be expected of the Offeror. While these are not minimum requirements, they are performance requirements. Offerors must provide a detailed narrative of how they will meet these requirements. Failure to address this section may result in the rejection of the proposal.

A. SLCC must be able to access account information for student accounts assigned to your agency via the internet. Agencies may use CRS Navigate or something similar.

B. Contractors must provide monthly reports that are easily accessed online. These reports include collection status report, acknowledgement report, address changes report, returned accounts report, and invoices.

C. Contractors will provide invoices with payment of funds collected bi-monthly on the 1st and 15th of each month.

D. Accounts referred to the contractor remain the property of SLCC and will be returned to SLCC after 12 consecutive months of non-payment. Please provide information on how this will be tracked.

E. Accounts which are non-collectable due to a student in bankruptcy, deceased or incarcerated will be returned with information regarding the reason for non-collection to SLCC promptly.

F. Contractors will setup separate accounts for each type of accounts being collected on. Such as, AR 1st placement, AR 2nd placement, etc.

G. Contractor will suspend action, either temporarily or permanently, on any account upon receipt of such notification by SLCC, without penalty to the College and for any reason.

H. Any or all accounts referred to the Contractor may be withdrawn by SLCC at any time upon written notification for any reason.

I. Contractor will be required to notify SLCC, in advance, of any management, contractual, name, system, procedural or other significant changes that take place within the Contractor’s agency.

J. Contractor shall provide security precautions and controls in place to secure PCI related transactions. Additionally, please provide the number and severity of data security breaches that your company might have fallen victim to within the past three years, including a description of the data breached and the number of customers affected. Provide a description of your data security plan and provisions for data recovery.

EVALUATION CRITERIA

Past Performance and Experience – (30 Pts)

Describe experience relevant to the purpose of this RFP. For all responses please list Student AR collections and Non-Student collections separately where appropriate. Include information on:

a) How many years has your organization been in business?

b) Number of years of contracting for collection services with colleges and universities?

c) How many college or university accounts are currently managed by your agency?

d) How many total accounts are currently managed by your company?

e) What is your average collection rate over the last three years for these types of accounts? Please calculate by using the average monthly collections/average monthly inventory.

f) What is the total number of accounts placed each year?

g) What is the total dollar amount of the accounts placed each year?

h) What is the total dollar amount of collections received each year?

i) Provide performance history measures for the collection of student accounts as

a. First referrals

b. Second referrals

j) Please provide the name and phone number of individuals at three colleges or universities that we may call as references. If you do not have three college or university references, please provide three other types of references. Agencies with three college or university references will be given preference over those with other references for this section.

Organization – (20 Pts)

Proposal will be evaluated against the questions set out below:

a) State the physical locations from which the collection, accounting and data processing activities will take place.

b) Present an organizational chart depicting Contractor’s ability to work accounts and handle the reporting requirements outlined in the RFP. The chart should include pertinent managers.

c) Provide managers the number of years of experience in collection of higher education and then number of staff who will be collecting on the portfolio.

d) Provide a statement certifying the Contractor has the sufficient staff available to meet the requirements of this RFP.

e) Evidence of licenses enabling the Agency to perform nationwide collections and agreeing to adhere to all applicable federal, state and local laws and regulations.

f) Provide a statement and proof the Agency will not use sub-contractors to collect on the College’s accounts.

g) Is your agency a member of any state or national trade association? If so, which ones?

h) Provide a description of items or resources you would need from the college to assist in delinquent account collections.

Financial Stability – (10 Pts)

a) Provide a history of financial stability by including an audit report by a certified public accountant for the past three fiscal years and a banking or lending institution reference which the College may contact for financial references.

b) Provide a concise narrative which clearly establishes that the Agency has the adequate capital reserves that will allow the continuance of normal operations in the event of a four to five week response time before the Agency will receive fees.

Methodology – (20 Pts)

Contractor will furnish a detailed explanation of how the agency proposes to accomplish the work described in the RFP.

a) Proposed minimum “best efforts” that will be used to collect accounts. Include the manner in which due diligence will be met, and how violations of due diligence will be prevented.

b) Discuss methods of interaction between staff and borrower. Explain why these methods will result in the highest return while complying with all applicable state and federal laws and regulations, considering the borrowers’ ability to pay.

c) Provide a copy of staff training program protocols. Include information on how collectors are trained in the areas of collection, skip tracing, Fair Debt Collection Practices Act, Fair Credit Reporting Act, CFPB regulation F and any applicable State and Federal laws.

d) Describe security and confidentiality of account information.

e) Describe the process the College may use to handle any disputes between borrowers and the College.

f) Provide copies of standard letters and phone script templates used in collection practices.

Compliance – (10 Pts)

a) Provide evidence of compliance with the Family Education Rights and Privacy Act, Gramm-Leach-Bliley, Red Flag Rules and all applicable State and Federal laws, including Utah laws. Demonstrate an understanding of the requirements of the U.S. Department of Education, specifically 34 CFR 674.

b) Provide evidence of a compliance person or department to provide oversite and ensure compliance to the laws and regulations listed.

Benefits – (10 Pts)

a) Contractor shall provide a summary of what it believes to be the benefits of the proposal to the college from using its services.

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