FDC-1264 - Addendum - 3.pdf

MSC 5720

752 Ott Street, Room 1042

Wine Price Building Harrisonburg, VA 22807 Office of 540.568.3145 Phone PROCUREMENT SERVICES 540.568.7935 Fax

September 8, 2026

ADDENDUM NO.: Three

TO ALL OFFERORS:

REFERENCE: Request for Proposal No: RFP# FDC-1264 Dated: August 5, 2026 Commodity: Collection Services

RFP Closing On: September 15, 2026 at 2:00 p.m. (Eastern) September 17, 2026 at 2:00 p.m (Eastern)

Please note the clarifications and/or changes made on this proposal program:

James Madison University has extended the RFP closing date to Tuesday, September 17, 2026, at 2:00 p.m. due to eVA downtime scheduled beginning Thursday, September 10 at 7pm through Monday, September 14 at 7am for a system upgrade.

1. Question: Contract term - The cover page states a one-year renewable term, while Section I (Purpose) states an initial two-year term with three additional two-year renewal options. Which governs?

JMU Response: The term in Section I will govern. The resulting contracts will have an initial two-year term with three addition two-year renewal options.

2. Question: Missing data & volumes: Will the background information and consolidated historical placement/recovery volumes for all VASCUPP institutions — including Old Dominion, VCU, and William & Mary, plus the "total aggregate amount turned over" figures left blank in the RFP — be issued by addendum before the due date?

JMU Response: No.

3. Are the historical figures shown gross or net of collection fees?

JMU Response: The fees included in the request were net of collection fees.

4. Question: How many awards are anticipated?

JMU Response:

While multiple contract awards are anticipated, the exact number of awards has not yet been determined.

5.Question: Is there a page limit for the proposal?

JMU Response: No.

6. Question: Are oral presentations expected (and if so, on what timeline)?

JMU Response: It is not known at this time if oral presentations will be part of the process for this RFP.

7. Question: SWaM (Attachment B): For an offeror that is not SBSD-certified, how is good-faith participation evaluated under the 10-point criterion, and is a subcontracting plan with limited or no current certified subcontractors acceptable given the in-house nature of collection services?

JMU Response: An offeror that is SBSD-certified would receive 10 points. An offeror that has SBSD certified subcontractors on their subcontracting plan would receive a percentage of 10 points based on the level of participation of the subcontractor. An offeror that is not certified nor has certified subcontractors would receive 0 points for that criterion.

8. Question: Is execution of the VHEPC PAC Agreement mandatory for award, and what is the current annual PAC fee?

JMU Response: Completion of the VHECP PAC Agreement is not mandatory for award, but it is highly encouraged. The current fee is 1%.

9. Question: Is the federal Student Financial Assistance (attestation) audit letter required of all offerors or only those servicing Perkins loans?

JMU Response: This is only required for offerors who service Perkins Loans.

10. Question: Will awarded firms be required to interface with the ECSI loan servicer at no cost, and is international collection capability mandatory or preferred?

JMU Response: If interfacing with ECSI (or other loan servicers) will create additional costs, please discuss those in your proposal’s pricing section. International collection capability is not mandatory.

11. Question: Is the proposal uploaded as a single file or may attachments be uploaded separately, is there a file-size limit, and should any redacted (proprietary) copy be uploaded as a separate file?

JUM Response: Offerors should upload their proposal response (including attachments) as a single, searchable PDF or Word document. If you need to upload a redacted copy of your proposal, that should be a separate file. While there is no limit to the number of attachments, the total size of all attachments uploaded cannot exceed 80MB. Additional questions relating to and submitting in eVA can be directed to eVA Customer Service.

12. Question: Are member institutions required to use only the collection agencies awarded through this procurement or does each institution have autonomy to decide to use agencies outside the vendor pool established by the VASCUPP contract?

JMU Response: Member institutions are not required to use vendors awarded contracts from this RFP process.

13. Question: Please identify the billing servicer(s) utilized by VASCUPP member institutions.

JMU Response: JMU uses Transact (CBord) for student billing. JMU doesn’t know what providers are used by all VASCUPP institutions.

14. Question: Please confirm that the following are the only RFP attachments to be submitted with our response to be considered responsive:

JMU Response: Documentation required as attachments, but included within the single proposal file, include the following executed RFP Attachments:

Executed JMU RFP Coversheet Offeror Data Sheet SWaM Utilization Plan Commonwealth of Virginia Agency Contract Form Addendum to Contractor’s Form.

JMU IT Services Addendum

15. Question: Collection services are generally compensated on a contingency basis, often with the collection agency’s fee added to the debtor’s balance and paid by the debtor rather than the placing institution. If VASCUPP’s compensation structure will operate in this manner, and the contingency fee is netted from debtor’s payments rather than paid directly by the institution, will the eVA Vendor Transaction Fee still apply, given that there is no direct sales transaction or payment from the institution to the contractor?

JMU Response: JMU Response: The decision to issue a Purchase Order (PO) under this contract will be at the sole discretion of the purchasing agency. Depending on the purchasing agencies own procurement policies. However, if an agency elects to issue a PO for purchases made under the resulting contract, the Contractor shall be responsible for all applicable eVA transaction fees associated with those orders in accordance with Commonwealth of Virginia requirements. JMU would not issue a PO for services where no direct sales transaction or payment by the institution was required.

16. Question: If the eVA Vendor Transaction fee is determined to apply, please clarify how the value “per order” will be determined. A purchase order for collection services may reflect an estimated value (e.g., $100,000); however, actual contingency fees paid to a collection agency will vary based on the recoveries generated and may be either higher or lower than the amount reflected on the purchase order. Could you please provide an example of how the vendor transaction fee will be calculated and applied under this compensation structure?

JMU Response: The decision to issue a Purchase Order under the resulting contract, and the value assigned to that Purchase Order, will be at the sole discretion of each participating agency. Agencies may establish Purchase Order values based on estimated contract amounts, anticipated recoveries, actual contingency fees earned, etc. If a Purchase Order is issued, the transaction is subject to and the Contractor shall be responsible for all applicable eVA Vendor Transaction Fees. Contractors should not assume that all agencies will utilize the same methodology when determining Purchase Order values under the resulting contract. The contractor should work with each agency engaging for contract usage as to how they will handle the issuance of purchase orders. JMU would not issue a PO for services where no direct sales transaction or payment by the institution was required.

17. Question: Section IV, A, 10: A Commercial Crime policy with Employee Dishonesty coverage provides protection equivalent to a fidelity bond. Will this type of policy be accepted as a satisfactory substitute for the required fidelity bond, provided it carries a coverage limit of $100,000 or greater?

JMU Response: An appropriate commercial crime policy with employee dishonesty coverage could be acceptable if the school is listed as an additional insured.

18. Three (3) references are sought in Section IV, C, 34, while Attachment A – Offeror Data Sheet asks for at least five (5) references. May we list the same client institutions for both? Or must a total of eight (8) references be supplied?

JMU Response: The three references used in Section IV, C, 34 can also be used for Attachment A, along with two additional references, for a total of five references supplied.

19. Question: Are bidders allowed to list VASCUPP members as references?

JMU Response: Yes

20. Question: Section VII, J, 1: “Unless the offeror is registered as a Department of Small Business and Supplier Diversity (SBSD)-certified small business and where it is practicable for any portion of the awarded contract to be subcontracted to other suppliers, the contractor is encouraged to offer such subcontracting opportunities to SBSD-certified small businesses.” QUESTION: Please clarify how SWaM inclusion will be evaluated and scored. We assume a primary bidder that is itself SBSD-certified will receive the full 10 points allocated to SWaM participation. For primary bidders that are not SBSD-certified, how will the following potential scenarios be considered and scored?

• A primary bidder commits to subcontracting 42% of the contract value to a SBSD-certified business.

• A primary bidder commits to subcontracting some portion, but less than 42% of the contract to a SBSD-certified business.

• A primary bidder does not subcontract any portion of the contract and therefore commits zero (0%) to SBSD-certified businesses.

JMU Response: See answer to question 6 above.

21. Question: Section VIII, T: Regarding the required “Broad Form Money and Securities Insurance Policy,” our insurance advisor at ACA International has advised that this coverage is encompassed within our Commercial Crime Policy. Will a Commercial Crime Policy, with limits meeting or exceeding the required $100,000 minimum and otherwise satisfying all applicable coverage requirements, be accepted as an alternative to the specified Broad Form Money and Securities Insurance Policy? If accepted, please note that the Commonwealth of Virginia would be designated as a “Loss Payee,” rather than an “Additional Insured,” under our Commercial Crime Policy.

JMU Response: This should be acceptable provided something verifies this is the case beyond just the comment so that JMU has something to rely on besides your reassurance that you have the required coverage.

22 Question: Attachment B – SWaM Utilization Plan: Since the value of the contract will depend on the volume and value of accounts actually assigned for collection, as well as the recoveries generated on those accounts, how should bidders complete the “Total Subcontractor Contract Amount” and “Total Dollars Paid to Subcontractor” fields? May bidders enter “TBD” in these fields?

JMU Response: Yes

23. Question: Attachment E, Section I, A: Is the 1% PAC Annual Fee mentioned here separate and in addition to the 1% eVA Vendor Transaction Fee?

JMU Response: Yes, they are separate fees.

24. Question: Would the state of Virginia accept proof of insurance that exceeds the requirements in leu of the fidelity bond?

JMU Response: If you have insurance beyond the amount required in the bond and can make JMU a loss payee, that should be acceptable.

25. Question: How many agencies does James Madison University anticipate awarding contracts to?

JMU Response: We do not know how many contracts will result from this RFP process.

26. Question: Will the University be passing along the collection costs/ fees for the Account Receivable accounts when placed with the collection agency? If so, will documentation be provided showing proof that collection cost/fees can be passed on to the student?

JMU Response: Different VASCUPP agencies handle this in different ways. JMU does not pass along the collection fee to the student. The agency fee is paid by the university out of funds received. Other VASCUPP institutions do pass the fee to the debtor. Each school would be responsible for collecting appropriate approvals from debtors.

27. Question: Incumbents & current pricing: Can the University identify all current collection service providers under the existing/expiring arrangements across the VASCUPP institutions, and disclose the contingency fee rate(s) currently being paid? This would help offerors propose the most competitive and appropriate fixed collection fee.

JMU Response:

Cedar Holdings International: 15% collection fee of total amount collected.

General Revenue Corporation: 18% collection fee of total amount collected.

S&S Recovery: 17% collection fee of total amount collected.

Todd, Bremer & Lawson: 20% collection fee of total amount collected Alltran Education / Transworld: 20% collection fee of total amount collected Williams & Fudge: 20% collection fee of total amount collected

28. Question: Section X requires a single Total Fixed Collection Fee across all account types and both placements. May offerors propose separate rates for 1st vs. 2nd placement, and will each institution operate under the single awarded fee or may institutions negotiate rates individually?

JMU Response: JMU understands that some agencies have different rates for account type or placement number. Please discuss price variations that would apply. VASCUPP institutions are not bound to the contract(s) negotiated by JMU. Although we hope that the collective nature of this agreement will result in lower fees for all schools, any VASCUPP member is welcome to negotiate their own agreement in place of or in addition to the contracts awarded through this process.

29. Question: Section X. Pricing Schedule: We interpret “Total Fixed Collection Fee (% of Collected Amount)” to mean that the fee rate that we bid represents the percentage of amounts collected that we earn. Please confirm that this interpretation is correct.

JMU Response: Correct. The expectation is that the agency will retain a percentage of the amount they collect from the debtor. See more below.

30. Question: Section X. Pricing Schedule: Because terminology and fee calculations differ from client to client, we would like clarity on the calculations used by VASCUPP members to determine:

(A) collection costs added to accounts at placement and (B) collection agencies’ contingency fees.

The following example assumes the “Total Fixed Collection Fee” we are asked to propose is the percentage we would retain as a contingency fee from amounts collected and uses a hypothetical 20% contingency fee rate:

• Institution assigns an account with an outstanding balance of $100.

• (A) Collection costs are added: $100 x [1+(0.20/(1-0.20)]=$125.

• The collection agency collects $125.

• (B) Agency’s contingency fee is determined: $125 x 0.20=$25.

• Agency receives its fee of $25.

• Institution receives $100, the full original balance.

JMU Response: This example matches JMU’s understanding of how the calculation fee is normally calculated. For schools that “pass the fee along”, the intent is that the school is “made whole” meaning that the percent charged to the debtor is higher than the percent charged to the school due to the math demonstrated above. For JMU, we do not pass the fee along, so we would assign a balance of $100 and expect to receive $80 (using the 20% example provided).

31. Question: Section X. Pricing Schedule: Would VASCUPP consider implementing a single, standardized pricing schedule for all collection vendors? A uniform fee helps mitigate the risk of perceived unfair or discriminatory practices (UDAAP concerns), such as situations where one debtor is charged a higher collection fee by Agency A while another debtor is charged a lower fee by Agency B—despite having no control over which agency handles their account.

JMU Response: JMU is not prescribing any standardized pricing schedule, at this time. Offerors should submit pricing in accordance with the requirements and format established within the RFP. The university recognizes that pricing structures may vary by different suppliers. The university may request clarification or negotiate pricing information by offerors. Any such requests will be made in accordance with the RFP and applicable procurement requirements. We will take the request into consideration in our negotiation of contract(s).

Signify receipt of this addendum by initialing “Addendum #_____” on the signature page of your proposal.

Sincerely, Doug Chester, VCO Buyer Senior Phone: (540-568-4274)