RFP_Questions_and_Answers.pdf

Questions and Answers -- Request for Proposals No. DJJB-14-RFP-0849 Private Counsel Debt Collection – NY Western District

April 22, 2014

1. Question: What percentage of the work awarded will consist of contingency fee cases vs. matters that are billed at a flat fee rate or at an hourly rate?

Answer: Please understand that it is difficult if not impossible to predict with any accuracy the volume and type of debts that may be referred to the Department of Justice by various Federal agencies. All we can provide at this time is a response that reflects current assignments to private counsel in this district. The approximate split at present is 80% contingency fee-based cases and 20% foreclosure assignments.

2. Question: As the contracts can be awarded to law firms with varying staffing capabilities, how is the determination made as to the volume of cases assigned once a contract has been awarded?

Answer: Initially cases are assigned equally amongst the law firms. See also Section F.3.

3. Question: Please clarify the following with regards to what is covered by Contractor under its fee regarding CLIN 0002A Flat Fee for Handling Foreclosures set forth on page 46. (1) My understanding is that the “initial title search” is a Contractor expense in commencing a foreclosure action. In many foreclosure actions, the title search needs to be updated, such as where the defendant mortgagors cannot be timely located for service of process to be effected or where the applicable Agency wants a title policy if it acquires the premises at the foreclosure auction. Are the title search updates a Contractor expense or would it be a reimbursable expense? If reimbursable, is approval first required from AUSA or COR? (2) With respect to “Collecting deficiency judgments”, please confirm that the Contractor remains entitled to the contingency fee associated with any monies collected on a deficiency judgment. Note that this reference appears to conflict with C.12.8 that indicated “the contractor will, however, be entitled to its contingency fee established for CLIN 0001 on any sums recovered through the Government from deficiency judgment debtors”.

Answer: The cost of an initial title search should be factored into the flat rate fee for foreclosures (CLIN 0002A). Any additional title searches that may be required are reimbursable under CLIN 0005B. Authorization is not needed to perform an updated title search. In the event an agency requests a deficiency judgment, the contractor will be entitled to the contingency fees on the collections from the deficiency judgment.

4. Question: With respect to the various timeframes and collection amounts set forth in section C.8, may the monthly sums collected in payment plans and the time periods set forth be outside the various guidelines if the applicable Agency and AUSA approves same?

Answer: Yes, but only if the USAO has approved going outside of the DOJ payment guidelines.

Questions and Answers -- Request for Proposals No. DJJB-14-RFP-0849 Private Counsel Debt Collection – NY Western District

April 22, 2014

5. Question: In the event the applicable Agency and/or AUSA authorize and/or direct the Contractor to retain unsecured collection files where either no payment agreements or garnishments are in place or where agreed payments have either stopped or not been commenced, may Contractor deviate from the timeframe guidelines set forth in Section C.8 to close and return files?

Answer: Yes. See Section C.19 (particularly C.19.4).

6. Question: The RFP provides an estimate of $45 million in debt to collect. About how much of the work will be commissioned based collection actions?

Answer: See answer to question 1.

7. Question: Please identify the incumbent provider(s).

Answer: Forsyth, Howe, O’Dwyer, Kalb & Murphy; contract no. DJJ07-C-1562.