Solicitation_QuestionsAnswers__FLM_TW112017.docx

Solicitation Questions for Request for Proposals (RFP) number - DJJK-18-RFP-1080 Middle District of Florida

Note: For some questions, we recommend not providing answers, as we cannot guarantee volume or referrals based upon past volume or referrals. The MD Fla Financial Litigation Unit (FLU) AUSA supervises private counsel pursuing student loan debts.

The MD Fla Civil Division AUSA supervises private counsel in virtually all other subject matter areas, which can generally be broken down into three categories:

1. Affirmative Foreclosure: foreclosure suits brought on behalf of the U.S. or one of its agencies (usually HUD) which holds a mortgage on real property;

1. Association Litigation: Affirmative and defensive litigation against Condo and Homeowner’s Associations regarding assessments and other amounts levied on real property owned by the U.S. or one of its agencies (again, usually HUD); and

1. Other Litigation: affirmative litigation to enforce debts to federal agencies that are typically unsecured. Most often these are cases to recover on various SBA loans (small business loans, disaster loans guaranties, etc.), but can also include loans, grants, and other benefits given by, among others, the USDA, the VA, and the Social Security Administration.

1. Section B.2 Other than travel (as specified in Attachment J.2), the Government will not reimburse the contractor for any other direct costs separately. Please confirm if that includes costs associated such as court reporters, sheriff expenses, recording of a judgment lien certificate, etc. Please confirm if these costs to be borne by the contractor in total.

DOJ Response- The contractor can be reimbursed with associated costs mentioned when litigating secured debt. Section B.2 provides guidance that these costs are to be borne by the contractor when litigating unsecured debt.

2. Section B.4 provides for the Unauthorized Direct Expenses that are not authorized for direct reimbursement under the contract. These fees include (among others) fees for service of process, as well as filing/releasing liens. Please further provide explanation regarding this section. Please confirm if these costs are to be fully borne by the contractor without reimbursement under any circumstance.

DOJ Response- Please refer to Section B.4 of the Statement of Work for exact details. Costs are to be fully borne by the contractor without reimbursement.

3. The procurement makes mention of “unsecured debts”; specifically, what kind of unsecured delinquent debts (e.g., assets) will be assigned for collection purposes?

DOJ Response- Most unsecured debts will be defaulted student loans, Health & Human Services debts, SBA Loans, and unsecured debts from other federal agencies.

4. What is the age (e.g., 180 days to 5 years delinquent) of the assets that will be assigned for collection purposes?

DOJ Response- The average age of debts within the Middle District of Florida is currently 6.8 years with the Department of Justice.

5. What is the forecasted volume (in terms of number of accounts, number of borrowers, and dollar value of receivables) that will be assigned for collection purposes?

a. Please delineate in both a one-time “spot” assignment and monthly “forward flow” placement tranches.

DOJ Response- We are unable to provide a response at this time.

6. What are the historic liquidation yields (recovery rates) of the assets within the Middle District of Florida portfolio that will be assigned for collection purposes?

DOJ Response- We are unable to provide this information at this time.

7. What collection vendor(s)/law firm(s) is(are) currently assigned to perform collections on behalf of the Middle District of Florida?

DOJ Response- Luis F. Navarro, P.C. & Becker & Poliakoff, P.C.

8. Must a party bid on all components of the contract, or may a party bid only on one or two components (such as bidding on foreclosures and bankruptcy work, but not contingent collections)?

DOJ Response- : Each contract awarded will cover both, secured and unsecured debts. The USAO reserves the right to distribute cases to a vendor which may only consist of one type of debt (secured or unsecured) usually according to the firm’s known expertise.

0. Affirmative Foreclosure: Agree with the above.

0. Association Litigation: Agree with the above.

0. Other Litigation: Agree with the above.

9. Under Section C.8.3, the RFP indicates that only lump sum payments, or several payments made over 90 days, are acceptable to the government. However, Section C.8.4 indicates that the government might accept installment payments upon consideration of the debtor’s financial statement. Does that mean that the government might accept installments over a longer period than 90 days? This is an important question, because our experience in collecting unsecured debts on a contingency is that most debts are collected in installments over many months or years.

DOJ Response- Yes, installments can be accepted for a period exceeding 90 days. Section C.8.3 I in reference to compromise settlements only, which should not have payments exceeding 90 days. Section C.8.4 is for payment agreements that are not for compromise settlements

10. One of our most successful collection techniques is to identify which debtors are employed so that their wages may be garnished. This requires a subscription to a third party service that provides employment and bank account information, but we understand that such costs incurred on contingent fee cases would not be reimbursed. Is that correct?

DOJ Response – Yes, that is correct. Please refer to Section B of the Statement of Work.

11. Are we correct in assuming that all cases filed under this contract must be filed in Federal Court?

DOJ Response- Yes, unsecured debt cases are filed in Federal Court. Some foreclosure cases are filed in state court.

a. Affirmative Foreclosure: Secured and usually filed in State Court.

b. Association Litigation: Unsecured. Usually filed in State Court, occasionally filed in federal court.

c. Other Litigation: Unsecured. Filed in Federal Court.

d. Student loan cases: Filed in federal court.

12. Are there any fees or costs associated with the use of the Consolidated Debt Collection System required under this contract?

DOJ Response- Other than obtaining a PIV card reader, and maintaining your own CPU to the technological requirements of the contract, there are no cost associated with CDCS.

13. Are you able to advise how many collection cases, foreclosure cases and bankruptcy cases have been referred in the past two years in the Middle District?

DOJ Response- Within the system of record, the total number of debts referred to Private Counsel in the Middle District of Florida was 245 in 2015 and 98 in 2016. Of which, 23 were foreclosures in 2015 and 6 were foreclosures in 2016. There were not any bankruptcy cases referred in the last two years.

14. A search on that FPDS site revealed that one firm’s numbers reflect a wide range of figures, such as $72,000 on 8/5/11, a negative ($8,044) on 9/6/11, and a negative ($55,847.94) on 8/14/12. We don’t understand what those numbers mean. How can there be a negative number? Can you clarify?

DOJ Response - FPDS-NG contains summary level information about a particular contract. Please be advised that the figures reported to FPDS.gov are only obligations and do not accurately reflect expenditures for one particular firm. In addition, any proposed pricing from previous contractors is proprietary information that cannot be shared during a competitive solicitation. The negative amounts reflect de-obigations of excess funds on a particular contract.

15. Do you know what percentage of referrals are typically litigated, such that hourly attorney’s fees may be charged?

DOJ Response- We are unable to provide this information at this time.

16. Are there any particular recurring legal issues that the Department of Justice sees on these referrals? For example, defenses based upon consumer statutes like TILA or RESPA, or involving documents with electronic signatures?

DOJ Response- No, current referrals have not encountered these defenses with any noticeable recurring frequency.

17. When skiptracing can the contractor use currently available skiptracing companies such as Equifax, Transunion, Accurint for information and are we able to use the information including but not limited to a social security number, name, date of birth, or address and submit these to the aforementioned vendors?

DOJ Response- Yes, the contractor may use skiptracing companies.

18. If we obtain a payment agreement in writing, is there still need for a complaint to be filed, for example if there is an agreement to pay over 60-90 days?

DOJ Response - Yes, the contractor should secure the government’s interest via judgment.

19. What is the average age of accounts according to recent placements?

DOJ Response- The average age of debts within the Middle District of Florida is currently 6.8 years with the Department of Justice.

20. Do each of the agencies have general settlement parameters, and would it be appropriate to reach out to the agencies upon receiving the accounts?

DOJ Response- Most referred debts come with general settlement parameters set by the Referring Agency and also a Point of contact from the agency. The USAO should be consulted for approval of settlements outside of the Agency general parameters.

1. Affirmative Foreclosure: Agree with the above.

1. Association Litigation: These cases will typically be referred directly by the USAO and will usually not come with settlement parameters. All settlements must be discussed with the AUSA Liaison.

1. Other Litigation: Agree with the above

1. Student loan cases: The agency will provide a floor for settlement upon request.

21. What is the current success rates for liquidation on cases? Paying, judgments.

DOJ Response- We are unable to provide this information at this time.

22. Based on past experiences, how often is physical appearance in Court required?

DOJ Response-

a. Affirmative Foreclosure: Typically in State Court. Usually one appearance per case to get final judgment if uncontested. More if contested.

b. Association Litigation: Usually in State Court, occasionally in federal court. If in State Court, frequently negotiated resolutions with between 0 and 2 court appearances. If in federal court, frequently negotiated resolutions with 0 – 1 appearances, typically to attend mediation. For both State and federal court, can be more appearances if contested.

c. Other Litigation: Typically in Federal Court. Can be no appearances if uncontested; more if contested.

d. Student loan cases: This is difficult to predict, but our past PC firms have had minimal court appearances.

23. Does Florida court rules allow for different treatment of Federal debt with regards to wage garnishments, liens, bank garns?

DOJ Response-

a. Affirmative Foreclosure: N/A

b. Association Litigation: N/A

c. Other Litigation: N/A

d. Student loan cases: Liens are the same. For garnishments, under 28 U.S.C. § 3205, there are a few procedural differences. For example, a 30-day demand must be sent before seeking a writ, the defendant and garnishee are served via U.S. Marshal, and there are annual reporting requirements for a continuing writ of garnishment. But as far an ability to recover, that is the same.

24. What is the average annual fee paid to PC’s under this contract over the past 2 years?

DOJ Response- We are unable to provide this information.

25. What rates are the current PC’s currently being paid on the same contract?

DOJ Response- We are unable to provide this information.

26. Are we able to get a copy of the current contract?

DOJ Response- We are unable to provide this information.

27. What is the average balance of each case? And what is the recovery rate ? Average fee’s paid to a PC over the last 2 years?

DOJ Response - We are not able to provide a response at this time.

28. How many renewals of contracts do you typically receive from PC’s?

DOJ Response- Each district is competed on a full and open basis where incumbents and other interested parties may participate.

29. How many complaints have been filed on this portfolio in the last 24 months? How many of them have paid?

DOJ Response- We are unable to provide this information.

30. What percentage of accounts are returned within first 90 days as uncollectible? And what percentage has been returned within the 2 year period of time as uncollectible with a judgment and/or with no legal performed? Are there any circumstances where PC’s are reimbursed for court costs that PC’s have expended when they are recovered from the debtor?

DOJ Response- We are unable to provide this information.

31. What supporting documentation and information is needed to return a case as “uncollectible” per Section c.19.4?

DOJ Response - C.19.4 details what is necessary to return the case. The PC should update CDCS accordingly documenting efforts at collection

32. What is the current referral volume?

DOJ Response- We are unable to provide this information.

33. How many accounts have judgment at the time of referral (percentage)?

DOJ Response- We are unable to provide this information.

34. What are the historic liquidation rates on this contract for the last 2 years?

DOJ Response- We are unable to provide this information.

35. Can you anticipate the volume of cases (and can you disclose to) the Contractor firm will likely be awarded for the first year in order to properly present a competitive price for services rendered?

DOJ Response- No, we are not able to forecast volumes of caseloads for a particular PC firm.

36. Can you anticipate (and can you disclose) the number of secured debt vs. bankruptcy vs. unsecured debt collection cases the Contractor firm will likely be awarded for the first year in order to properly present a competitive price for services rendered?

DOJ Response- No, we are not able to forecast volumes of caseloads for a particular PC firm.