IFB_2209_Debt_Collection_Services.pdf

INVITATION FOR BID (IFB) 2209

Debt Collection Services

October 29, 2026

You are invited to review and respond to the Department of Developmental Services (DDS) Invitation for Bid (IFB) 2209, Debt Collection Services. In submitting your bid, you must comply with the instructions found herein.

Read all portions of this solicitation carefully. The Bidder is solely responsible for ensuring that DDS receives the complete bid in accordance with the Bid requirements, prior to the date and time specified in the solicitation. Bids received after the specified deadline will not be considered for review. DDS shall not be responsible for any delays in submittal, including misdelivery. DDS reserves the right to cancel this IFB without cause at any time prior to award.

Bidders are advised to check the Cal eProcure website for addenda, modifications, and updates to the Bid documents. DDS is not responsible for failure of the prospective bidder to check for any bid document updates, changes, or answers to questions posted on Cal eProcure. Failure to check the website periodically will be at the Bidder’s sole risk.

Note that all agreements entered into with the State of California will include by reference General Terms and Conditions and Contractor Certification Clauses that may be viewed and downloaded at Internet site Standard Contract Language for Non-IT Services.

In the opinion of DDS, this IFB is complete and without need of explanation. However, if questions arise or there is a need to obtain clarifying information, bidders shall submit an email by the Written Questions Submittal Deadline in Article V. Key Action Dates.

Please note that no verbal information given will be binding upon the State unless such information is issued in writing as an official addendum.

Department of Developmental Services

IFB 2209

Contents

CONTENTS

I. DESCRIPTION OF SERVICES

II. AGREEMENT PERIOD

III. BIDDER ELIGIBILITY CRITERIA

IV. BIDDER REQUIREMENTS AND MINIMUM QUALIFICATIONS

V. KEY ACTION DATES

VI. QUESTIONS AND ANSWERS

VII. SUBMISSION OF BID

VIII. REQUIRED ATTACHMENTS AND CONDITIONAL DOCUMENTS

IX. EVALUATION

X. AWARD AND PROTEST

XI. DISPOSITION OF BIDS

XII. AGREEMENT EXECUTION AND PERFORMANCE

XIII. GENERATIVE ARTIFICIAL INTELLIGENCE DISCLOSURE NOTIFICATION

XIV. PARTICIPATION, PREFERENCE, AND INCENTIVE PROGRAMS

1. DVBE PROGRAM PARTICIPATION

2. DVBE INCENTIVE

3. SMALL BUSINESS (SB) PREFERENCE PROGRAM

4. NON-SMALL BUSINESS PREFERENCE REQUEST

EXHIBITS

EXHIBIT A–SCOPE OF WORK

EXHIBIT B–BUDGET DETAIL AND PAYMENT PROVISIONS

EXHIBIT C–GENERAL TERMS AND CONDITIONS

EXHIBIT D–SPECIAL TERMS AND CONDITIONS

EXHIBIT E–ADDITIONAL TERMS AND CONDITIONS

EXHIBIT F–SEXUAL HARASSMENT PREVENTION POLICY

EXHIBIT G–CONFIDENTIALITY AND INFORMATION SECURITY

REQUIREMENTS

EXHIBIT H–ANTI-NEPOTISM POLICY

ATTACHMENTS

ATTACHMENT 1 - REQUIRED ATTACHMENT CHECKLIST

ATTACHMENT 2 - BIDDER CERTIFICATION SHEET

ATTACHMENT 3 - COST WORKSHEET

ATTACHMENT 4 - CONTRACTOR POINT OF CONTACT

ATTACHMENT 5 - PAYEE DATA RECORD (STD 204) AND PAYEE DATA RECORD

SUPPLEMENT (STD 205*)

ATTACHMENT 6 - BIDDER DECLARATION (WRITTEN) (GSPD-05-105)

ATTACHMENT 7 - CONTRACTOR CERTIFICATION CLAUSES (CCC 04/2017)

ATTACHMENT 8 - DARFUR CONTRACTING ACT CERTIFICATION (DGS PD 1)*

ATTACHMENT 9 - INSURANCE ACKNOWLEDGEMENT

ATTACHMENT 10 - CONFIDENTIALITY AND INFORMATION SECURITY

REQUIREMENTS

ATTACHMENT 11 - CALIFORNIA CIVIL RIGHTS LAWS CERTIFICATION (DGS OLS

04)

ATTACHMENT 12 – DEBT COLLECTOR LICENSE

ATTACHMENT 13 - BIDDING PREFERENCES AND INCENTIVES

ATTACHMENT 14 – CALIFORNIA CITY OR COUNTY BUSINESS LICENSE

ATTACHMENT 15 - DISABLED VETERAN BUSINESS ENTERPRISE (DVBE)

DECLARATIONS (DGS PD 843)*

ATTACHMENT 16 - CALIFORNIA CERTIFIED SMALL BUSINESS

(SB)/MICROBUSINESS (MB)/DISABLED VETERAN BUSINESS ENTERPRISE

(DVBE) CERTIFICATION*

ATTACHMENT 17 - CALIFORNIA SECRETARY OF STATE CERTIFICATION OF

STATUS*

I. DESCRIPTION OF SERVICES

The Contractor shall provide debt collection services to the Department of Developmental Services (Department), Accounting and Fiscal Services Section (AFSS) for the following delinquent accounts receivable:

• Delinquent vendor audit accounts receivable

• Employee or separated employee accounts receivable to include payroll accounts receivable, outstanding salary advances, outstanding travel advances, outstanding training advances, and other outstanding travel repayments due for prepaid travel costs such as hotel, rental car, airline, and other transportation (taxi, Uber, etc.) that have been determined unallowable by the Department and due back from the employee or former employee.

• Dishonored checks

• Judgments/settlements

• Overpayments, and other various delinquent accounts receivable.

The Contractor shall collect the delinquent accounts receivable outlined above in a timely manner as described herein, see Exhibit A, Scope of Work (SOW) for a complete description of services.

II. AGREEMENT PERIOD

The Agreement will be from an anticipated start date of January 1, 2027, through June 30, 2028.

Contractors are cautioned that no work shall begin until the Agreement has been fully executed. If work is performed prior to the Agreement approval, and the Agreement is, for any reason, not approved, all previous work performed by the Contractor is considered donated to DDS and no payment shall be made for that work.

III. BIDDER ELIGIBILITY CRITERIA

1. Public or private corporations, agencies, organizations, associations, or individuals may submit a sealed bid response to this IFB. The bidder must be legally constituted and qualified to do business within the State of California (registered with the California Secretary of State), if applicable. Bidders must be a legally cognizable public agency, sole proprietorship, partnership, or corporation (fully incorporated by the deadline for submitting bids). Failure to meet the foregoing requirement will result in disqualification.

2. Bidders must be in good standing with the California Franchise Tax Board (FTB), California Department of Tax and Fee Administration (CDTFA), and not on the U.S. Government, Office of Foreign Control’s “Specially Designated Nationals and Blocked Persons List” (SDN List).

3. Bidders, including the Bidders’ representatives such as executives, officers, board members, and agents, must be responsible and have the capability to carry out the terms in this IFB. Bidders who have had an agreement terminated, for cause, with DDS in the past 18 months may be disqualified.

This restriction extends to all entities for which the Bidders’ representatives have been responsible in whole or in part (e.g., making decisions, managing operations).

4. Executive Order N-6-22- Russian Sanctions

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. By submitting a bid or proposal, Contractor represents that it is not a target of Economic Sanctions. Should the State determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for rejection of the Contractor’s bid/proposal any time prior to contract execution, or, if determined after contract execution, shall be grounds for termination by the State.

5. The Disabled Veteran Business Enterprise (DVBE) Participation Program requirements for this solicitation have been waived. However, DDS is committed to achieving legislatively established goals for the participation of DVBEs whenever possible. Please see Article XIV, Items 1. and 2. DVBE Program Participation and Incentive.

IV. BIDDER REQUIREMENTS AND MINIMUM QUALIFICATIONS

Licenses and Certifications

a. Bidders shall obtain, at their expense, all licenses or permits required by law for accomplishing any work required in connection with this agreement.

b. All licenses must remain valid for the term of the Agreement. If any license or certification expires at any time during the term of this agreement, the Contractor agrees to provide DDS with a copy of the renewed license or certification within 30 days following the expiration date. In the event the Contractor fails to keep in effect at all times all required licenses or certifications, DDS may, in addition to any remedies it may have, terminate this agreement upon occurrence of such event.

c. Bidders must submit a valid debt collector license (see attachment 12).

V. KEY ACTION DATES

The dates and times below are important and show which specific actions must be taken or completed. If DDS finds it necessary to change any of these dates, it will be accomplished via an addendum to the IFB.

Event Date/Time IFB available to Bidders October 29, 2026 Final Date for Submission of Written Questions November 5, 2026 @ 3:00 PM Response to Written Questions (Tentative) November 13, 2026 Final Date for Bid Submission November 19, 2026 @ 3:00 PM Public Bid/Cost Opening November 23, 2026 @ 10:00 AM Anticipated Agreement Start Date January 1, 2027

Dates after Final Date for Bid Submission are estimates only and may be adjusted by DDS as conditions indicate without an addendum to this IFB.

VI. QUESTIONS AND ANSWERS

1. Bidders may submit questions for clarification of the content of this IFB to

Jonathan.Louie@dds.ca.gov no later than the date and time specified in Article V., Key Action Dates. The Bidder must reference the section and page number about which they are inquiring.

2. Written Questions and Answers will be provided without identifying the submitter. At DDS’ sole discretion, DDS may paraphrase questions for clarity.

3. Questions must be submitted in writing by the Final Date for Submission of Written Questions specified in Article V. Key Action Dates.

4. DDS will answer questions at its sole discretion.

5. Questions and Answers will be posted on Cal eProcure.

VII. SUBMISSION OF BID

All bids must be received, either emailed in portable document format (PDF) to Jonathan.Louie@dds.ca.gov or mailed under sealed envelope, by the date and time specified in Article V. Key Action Dates. DDS reserves the right to cancel this IFB without cause at any time prior to award.

1. Email Bid Submission Requirements:

a. Email subject lines must include the IFB number, Title, and be marked:

Bid for Debt Collection Services – IFB 2209.

b. DDS reserves the right to consider emailed responses as properly “sealed.” Responses will only be considered if they are sent to the email address listed in this IFB. IFB responses sent to any other email address will not be considered.

c. Bidders shall ensure that emails do not exceed a file size of 25 megabytes.

d. Bidders shall ensure that emails do not contain scripts, executable files, or macros, which may make their emails undeliverable.

e. Do not imbed links within the PDF – all documents must be contained within the PDF. DDS cannot access links to external sources. Bids containing links to external sources will be rejected.

f. Bid submissions sent from unrecognized email servers may be blocked by DDS security filters and be flagged as spam, thereby rendering them unsubmitted.

g. DDS will confirm receipt of email. Receipt confirmations only confirm receipt of emails and do not assess bidder’s responsiveness to the IFB requirements in the email content or in any attachments therein.

2. Mail or Delivery Bid Submission Requirements:

a. The sealed envelope must be plainly marked: BID for Debt Collection Services – IFB 2209, Attention: Jonathan Louie, Contracts Unit – DO NOT OPEN and deliver to the address below:

Department of Developmental Services Contracts Unit

Attn: Jonathan Louie 1215 O Street, MS 10-10 Sacramento, CA 95814

Bids not clearly marked and submitted under sealed envelope may be rejected.

Mail or deliver bids to the address shown above. Neither the postmark on the Bid response envelope nor receipt in the Department of Developmental Services (DDS) Mailroom will constitute timely delivery.

Any bid received and time stamped in the DDS Mailroom on or before the date and time specified in Article V. Key Action Dates is considered timely delivery. It is the policy of DDS to make every effort to ensure that all bids have been received and properly time stamped; however, bidders are ultimately responsible for ensuring timely receipt of their bid. Bidders may verify receipt of their bid by contacting Jonathan.Louie@dds.ca.gov.

b. All bids shall include the documents identified in Attachment 1, Required Attachment Checklist. Bids not including the proper required attachments may be deemed nonresponsive. A nonresponsive bid is one that does not meet the basic bid requirements and nonresponsiveness is justification for rejection.

c. Electronic signature of the person authorized to bind the Bidder to this agreement is acceptable. Bids submitted without authorized signatures on all forms requiring signature may be rejected.

d. It is the Bidder’s responsibility to provide all necessary information for DDS to evaluate the Bid, verify requested information, and determine the Bidder’s ability to perform the services defined in the Agreement in Exhibit A, SOW and Attachment 3, Cost Worksheet.

e. Bids must be submitted for the performance of all the services described herein. Any deviation from the work specifications will not be considered and will cause a bid to be rejected.

f. A bid may be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. DDS may reject any or all bids and may waive any immaterial deviation in a bid. DDS’ waiver of immaterial defect shall in no way modify the IFB document or excuse the Bidder from full compliance with all requirements if awarded the Agreement.

g. Clarification may be requested by DDS during the review of the bids for the purpose of clarifying ambiguities in the information presented in the bid response. DDS reserves the right, at its sole discretion, to overlook, correct, or require a bidder to remedy any obvious clerical or incidental mathematical errors on a bid form. Bidders may be required to initial corrections.

h. Costs incurred for developing bids and in anticipation of award of the Agreement are entirely the responsibility of the Bidder and shall not be charged to DDS.

i. An individual who is authorized to bind the Bidder contractually shall sign Attachment 2, Bidder Certification Sheet. The signature should indicate the title or position that the individual holds in the firm. An unsigned bid may be rejected.

j. A bidder may modify a bid after its submission by withdrawing its original bid and resubmitting a new bid prior to the Final Date for Bid Submission.

A bidder’s modification offered in any other manner, oral or written, will not be considered.

k. A bidder may withdraw its bid by submitting a written withdrawal request to DDS, signed by the Bidder or an authorized agent. A bidder may thereafter submit a new bid prior to the Final Date for Bid Submission. Bids may not be withdrawn without cause after the Final Date for Bid Submission.

l. DDS may modify the IFB prior to the Final Date for Bid Submission by issuing an addendum that shall be posted to Cal eProcure.

m. Before submitting a response to this solicitation, bidders should review, correct all errors, and confirm compliance with the IFB requirements.

n. DDS does not accept alternate agreement language from a prospective contractor. A bid with such language will be considered a counterproposal and will be rejected. The State’s General Terms and Conditions (GTC 02/2025) are not negotiable.

o. No oral understanding or agreement shall be binding on either party.

VIII. REQUIRED ATTACHMENTS AND CONDITIONAL DOCUMENTS

This bid package requires completion of all attachments referenced on the required Attachment 1, Required Attachment Checklist. Exclusion of any required attachments may result in bidder’s disqualification.

The bid submission package must include the following required forms fully completed and signed:

1. ATTACHMENT 1 – REQUIRED ATTACHMENT CHECKLIST – is to be used to confirm compliance with the bid submission requirements. The checklist must be fully completed and submitted as the cover to your bid package.

2. ATTACHMENT 2 – BIDDER CERTIFICATION SHEET – This Bid/Bidder Certification Sheet must be signed and returned along with all the "required attachments" as an entire package.

3. ATTACHMENT 3 – COST WORKSHEET – must be completed and submitted. The cost sheet must contain the proposed bid cost for Total Cost.

4. ATTACHMENT 4 – CONTRACTOR POINT OF CONTACT – must be completed in its entirety.

5. ATTACHMENT 5 – PAYEE DATA RECORD (STD 204) AND PAYEE DATA

RECORD SUPPLEMENT (STD 205) – the STD 204 must be completed with original signature. The STD 205 is only completed if applicable.

6. ATTACHMENT 6 – BIDDER DECLARATION FORM (GSPD-05-105) –

must be completed and submitted with original signature.

7. ATTACHMENT 7 – CONTRACTOR CERTIFICATION CLAUSES – must be signed and dated with original signature.

8. ATTACHMENT 8 – DARFUR CONTRACTING ACT CERTIFICATION

FORM – must be fully completed, signed, and dated with original signature.

9. ATTACHMENT 9 – INSURANCE ACKNOWLEDGEMENT – must be completed and signed.

10. ATTACHMENT 10 – CONFIDENTIALITY AND INFORMATION SECURITY

REQUIREMENTS – must be completed and signed.

11. ATTACHMENT 11 – CALIFORNIA CIVIL RIGHTS LAWS CERTIFICATION

(DGS OLS 04)

12. ATTACHMENT 12 – DEBT COLLECTION LICENSE

13. ATTACHMENT 13 – BIDDING PREFERENCES AND INCENTIVES

14. ATTACHMENT 14 – CALIFORNIA CITY OR COUNTY BUSINESS LICENSE

The following documents must be included with the bid submission if applicable:

1. ATTACHMENT 15 – DISABLED VETERAN BUSINESS ENTERPRISE

(DVBE) DECLARATIONS (DGS PD 843)*

2. ATTACHMENT 16 – CALIFORNIA CERTIFIED SMALL BUSINESS

(SB)/MICROBUSINESS (MB)/DISABLED VETERAN BUSINESS

ENTERPRISE (DVBE) CERTIFICATION* – Proof of current and valid certification through DGS Office of Small Business and Disabled Veteran Business Enterprise Certification Services (OSDS).

3. ATTACHMENT 17 – CALIFORNIA SECRETARY OF STATE

CERTIFICATION OF STATUS* – California Secretary of State Certification of Status is required if your company is a corporation, limited liability company (LLC), or limited partnership (LP).

IX. EVALUATION

1. DDS will evaluate each bid to determine its responsiveness to the published requirements.

2. Bids that contain false or misleading statements that do not support an attribute or condition claimed by Bidder may be rejected. If in the opinion of DDS, information submitted by the bidder was intended to mislead DDS in its evaluation of the Bid and the attribute, condition, or capacity is a requirement of the IFB, it will be the basis for rejection of the Bid.

3. DDS will send invitations to the Cost Opening through an email meeting notice with the Microsoft Teams link the day before the Cost Opening identified in Article V. Key Action Dates. Questions will not be allowed.

4. To request an invitation to the Cost Opening, please email request to Jonathan.Louie@dds.ca.gov by Final Date for Bid Submission identified in Article V. Key Action Dates.

5. In the event of a precise tie, if Government Code (GC) Section 14838(f) does not apply to the Bidders, a witnessed coin toss will be conducted by the Procurement Official. If a coin toss is needed, the Procurement Official will schedule and arrange for the coin toss and nonpartisan witnesses, notifying the participating bidders of the outcome of the coin toss.

6. Each bid will be checked for the presence or absence of required information in conformance with the submission requirement of this IFB.

X. AWARD AND PROTEST

1. The Agreement shall be awarded based on the responsive and responsible bidder submitting the lowest Total Costs on Attachment 3 – Cost Worksheet.

2. Award, if made, will be within 90 days – if no protest of the award is received

– after the scheduled date for the Intent to Award. If a protest is received, the Award, if made, will be after the protest is resolved.

3. Whenever an agreement is awarded under a procedure which provides for competitive bidding, but the agreement is not awarded to the low bidder, the low bidder shall be notified by email, overnight courier, or personal delivery five working days prior to the award of the agreement.

4. All protests must be made in writing, signed by an officer of the company or individual authorized to do so and submitted within five working days of the State’s posting of its intent to award. An original copy of the protest must be mailed (i.e., certified mail with return receipt requested) to:

Department of General Services Office of Legal Services (DGS/OLS) 707 Third Street, 7th Floor, Suite 7-330 West Sacramento, CA 95695 Email: OLSProtests@dgs.ca.gov

The protest must include a statement that Bidder believes they are the lowest responsive and responsible bidder and are therefore protesting the Agreement award to another bidder.

Within five days after filing the protest, the protesting bidder shall file a detailed written statement specifying the grounds for the protest with DGS, OLS, and DDS. The written protest must be sent to DGS, OLS, 707 Third Street, 7th Floor, Suite 7-330, West Sacramento, CA 95695. A copy of the detailed written statement must be emailed to DDS at Jonathan.Louie@dds.ca.gov.

XI. DISPOSITION OF BIDS

1. Upon bid opening, all documents submitted in response to this IFB will become the property of the State of California and will be regarded as public records under the California Public Records Act (GC Section 6250 et seq.)

and subject to review by the public.

2. Bid packages may be returned only at bidder’s expense unless DDS waives it.

XII. AGREEMENT EXECUTION AND PERFORMANCE

1. Services shall commence on the express date set by DDS and the Contractor after all approvals have been obtained and the Agreement is fully executed.

The Agreement will be executed only upon the State’s acceptance of the Contractor’s certificates of insurance, bonds, licenses, and permits, when such items are required. Should the Contractor fail to commence work at the agreed upon time, DDS – upon five days’ written notice to the Contractor – reserves the right to terminate the Agreement. In addition, the Contractor shall be liable to DDS for the difference between contractor’s bid price and the actual cost of performing work by the second lowest bidder, or another contractor.

2. All performance under the Agreement shall be completed on or before the termination date of the Agreement.

3. Should it become necessary to modify the terms of the resulting agreement, those modifications may be made through a written amendment. An agreement amendment shall not be effective unless it is in writing and until fully executed by both parties.

4. The Agreement will not include a hard copy of the General Terms and Conditions (Exhibit C, GTC-02/2025); they will be incorporated by reference and made part of this agreement and can be viewed here:

https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal- Services-Resources-List-Folder/Standard-Contract-Language

XIII. GENERATIVE ARTIFICIAL INTELLIGENCE (GENAI) NOTIFICATION

The State of California seeks to realize the potential benefits of GenAI, through the development and deployment of GenAI tools, while balancing the risks of these new technologies.

Bidder must notify the State in writing if it: (1) intends to provide GenAI as a deliverable to the State; or (2), intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (i) functionality of a State system, (ii) risk to the State, or (iii) Contract performance. For avoidance of doubt, the term “materially impacts” shall have the meaning set forth in State Administrative Manual (SAM) § 4986.2 Definitions for GenAI.

Failure to report GenAI to the State may result in disqualification. The State reserves the right to seek any and all relief it may be entitled to as a result of such nondisclosure.

Upon notification by a Bidder of GenAI as required, the State reserves the right to incorporate GenAI Special Provisions into the final contract or reject bids/offers that present an unacceptable level of risk to the State.

Government Code 11549.64 defines “Generative Artificial Intelligence (GenAI)” as an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system’s training data.

XIV. PARTICIPATION, PREFERENCE, AND INCENTIVE PROGRAMS

The Preference and Incentive Programs listed below may be combined but will not exceed a combined total of 15 percent of the Bid amount or $100,000 per bid, whichever is less. No bid price will be reduced by more than $100,000, and all preference and incentive cost adjustments are for bid evaluation purposes only and do not alter the actual cost offered by the Bidder.

A Small Business (SB)/Microbusiness (MB) and a Disabled Veteran Business Enterprise (DVBE) must have current and valid certification through DGS, Office of Small Business and Disabled Veteran Business Enterprise Services (OSDS); certifications must remain unexpired throughout the Agreement term. Completed certification applications and required support documents must be submitted to OSDS no later than 5:00 PM PT on the Final Date for Bid Submission, and OSDS must be able to approve the application as submitted.

For certification and preference approval process information, contact OSDS by telephone at (916) 375-4940 or access OSDS’ Internet website https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List- Folder/Apply-for-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise

Each listed California certified SB, MB, and DVBE contractor, subcontractor, or supplier must perform a “commercially useful function” (CUF) in the performance of a distinct element of the Agreement as defined in GC Section 14837 (d)(4) and California Military and Veterans Code (MVC) Section 999 (B). Commercially Useful Function

1. DVBE Program Participation

The DVBE Participation Program requirements for this solicitation have been exempted.

However, DDS is committed to achieving legislatively established goals for the participation of DVBEs and seeks to use certified DVBE businesses whenever possible.

DVBEs must have current and valid certification through DGS OSDS. Completed certification applications and required support documents must be submitted to OSDS no later than 5:00 PM PT on the Final Date for Bid Submission, and OSDS must be able to approve the application as submitted.

For certification and preference approval process information, contact OSDS by telephone at (916) 375-4940 or access OSDS’ Internet website at https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List- Folder/Apply-for-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise

2. DVBE Incentive

Firms voluntarily utilizing DVBE subcontractors can have an incentive applied based on their level of DVBE participation identified in the Bid response, not to exceed five percent. The DVBE Incentive is for bid computation purposes only and is only applied to responsive bids from responsible bidders proposing DVBE participation. The incentive shall be applied as follows:

DVBE Participation Level Incentive Applied 5% or More 5% 4% to 4.99% 4% 3% to 3.99% 3% 2% to 2.99% 2% 1% to 1.99% 1%

Under 1% No Incentive

a. The incentive is subject to a minimum of one percent and a maximum of five percent. Bids with DVBE participation of more than five percent will be calculated with a five percent incentive.

b. A signed Disabled Veteran Business Enterprise Declaration - DGS PD 843 must be submitted with the Bid response. The fill and print form is available at this link:

https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/pd_843.pdf. The form must be completed if a bidder is a DVBE or subcontracts to a DVBE.

c. The DVBE Incentive is computed from the lowest responsive and responsible bid price.

d. If the awarded contractor has a certified DVBE perform an element of work for the Agreement, within 60 days of expiration of the Agreement, the awarded contractor shall complete a Prime Contractors Certification - DVBE Subcontractors Report (STD 817) and submit to DDS.

e. SB 588 requires an awarding department to withhold $10,000, or the full amount if it is less than $10,000, from the final payment on an agreement until certification is received by the awarding department regarding DVBE participation and payment. The awarding department gives a prime contractor that fails to meet those certification requirements 15 to 30 calendar days to cure the defect. If not, the final payment is permanently deducted.

f. The required list of California certified DVBE subcontractors must be provided on Attachment 6, Bidder Declaration (Written) (GSPD-05-105) and must include the following: 1) subcontractor name, 2) address, 3) phone number, 4) a description of the work to be performed and/or products shipped, 5) and the dollar amount or percentage of the net bid price (as specified in the solicitation) per subcontractor.

3. Small Business (SB) Preference Program

a. Current law encourages state departments to first consider an SB/MB Enterprise for contracting opportunities. DDS is committed to supporting SB/MB participation in state contracting and seeks to use certified SBs/MBs whenever possible.

b. Section 14835, et seq., of the California Government Code requires that a five percent preference be given to bidders who certify as an SB/MB. The rules and regulations of this law are contained in Title 2, California Code of Regulations, Section 1896, et seq. A copy of the regulation is available upon request.

c. The SB/MB Preference may not exceed $50,000 for any bid. This preference cost adjustment is for bid computation purposes only and does not alter the actual cost offered by the Bidder. The SB Preference is computed from the lowest responsive and responsible bid price.

d. Details about the Small Business Preference program can be found at:

https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division- Services-List-Folder/Apply-for-or-Re-apply-as-Small-Business-Disabled- Veteran-Business-Enterprise

4. Non-Small Business Preference Request

A five percent bid preference is available to a non-small business claiming 25 percent California certified SB subcontractor participation. If claiming the non-small business subcontractor preference, the Bid response must include a list of the small business(es) with which you commit to subcontract in an amount of at least 25 percent of the net bid price with one or more California certified SBs. Each listed certified SB/MB must perform a commercially useful function in the performance of the Agreement as defined in GC Section 14837(d)(4).

a. The required list of California certified SB contractors must be provided on Attachment 6, Bidder Declaration (Written) (GSPD-05-105) and must include the following: 1) subcontractor name, 2) address, 3) phone number, 4) a description of the work to be performed and/or products shipped, 5) and the dollar amount or percentage of the net bid price (as specified in the solicitation) per subcontractor.

b. In granting the Non-Small Business Preference, no bid price will be reduced. This preference cost adjustment is for bid evaluation purposes only and does not alter the actual cost offered by the Bidder. The Non- Small Business Preference is computed from the lowest responsive and responsible bid price.

c. A non-small business is defined as a responsive, responsible bidder that is not certified by the DGS OSDS as an SB/MB enterprise.

EXHIBIT A

SCOPE OF WORK

1. GENERAL SCOPE:

The Contractor shall provide debt collection services to the Department of Developmental Services (Department), Accounting and Fiscal Services Section (AFSS) for the following delinquent accounts receivable:

Delinquent vendor audit accounts receivable Employee or separated employee accounts receivable to include payroll accounts receivable, outstanding salary advances, outstanding travel advances, outstanding training advances, and other outstanding travel repayments due for prepaid travel costs such as hotel, rental car, airline, and other transportation (taxi, Uber, etc.) that have been determined unallowable by the Department and due back from the employee or former employee.

Dishonored checks Judgments/settlements Overpayments and other various delinquent accounts receivable.

The Contractor shall collect the delinquent accounts receivable outlined above in a timely manner as described herein.

2. PROJECT REPRESENTATIVES:

The project coordinators during the term of this agreement shall be:

Department of Developmental Services TBD

Direct all agreement inquiries to:

Department of Developmental Services TBD

Either party may make changes to the contact names or information above by providing written notice to the other party. Said changes shall not require an amendment to this Agreement.

3. LOCATION AND SCHEDULE:

The services shall be performed as follows:

A. Specific times and days will be identified by the Contractor (on a case-by-case basis for each delinquent debtor). The Contractor will notify the Accounting and Fiscal Services Section of these timeframes via email.

B. The services shall be performed at various locations throughout California.

The Contractor shall provide toll-free communication and assistance to AFSS clients during regular business hours, Monday through Friday, 7:00am to 4:00pm PST.

4. SUMMARY OF WORK TO BE PERFORMED:

A. Contractor shall collect the outstanding debts (delinquent accounts receivable) in a timely manner.

B. Contractor shall provide services as outlined in this Agreement. Contractor shall be responsible to fulfill the requirements of the Agreement and shall incur expenses (all personnel, labor, tools, equipment, supplies, transportation, licenses and/or permits, insurance) at its own risk and invest time and capital to fulfill the obligations as contained herein.

5. CONTRACTOR RESPONSIBILITIES:

A. The Contractor shall provide debt collection services as described below:

1. Perform skip-tracing abilities at the state level.

2. Possess credit report accounts nationwide.

3. Possess a valid California business license.

4. Maintain a principal office (headquarters) in California.

5. Secure personnel with demonstrated and verifiable skills and experience in order to perform the requirements of this Agreement, including telephone collections.

6. Report to AFSS any disciplinary actions taken against Contractor’s firm or key personnel by any state agencies, government entities, or others.

7. Maintain current certificates of insurance covering professional liability, bonding, and worker's compensation. Upon request from AFSS, the Contractor shall provide certificates of coverage.

B. Within fourteen (14) business days after the fully executed Agreement is distributed to the Contractor, the Contractor shall provide AFSS a list identifying the names and classifications of all collection agents (including which agents are assigned to each account) who are providing services under this Agreement.

1. This list shall also indicate whether the collection agent is employed in a full-time or part-time capacity. A part-time agent is recognized as an employee who works less than forty (40) hours per week.

2. The Contractor shall notify AFSS via email of any changes to the assigned personnel within ten (10) business days of a change in assignment.

C. Contractor shall ensure its staff performing services in connection with this agreement are aware of, and that they perform services in accordance with all applicable state and federal laws concerning the subject of this Agreement, which include but are not limited to: Fair Credit Billing Act; Federal Equal Credit Opportunity Act; Federal Fair Debt Collection Practices Act; California Rosenthal Fair Debt Collection Practices Act; and Regulation B, as amended, of the Consumer Credit Protection Act. To the extent that any binding legal authority is in conflict with any provision of this Agreement, Contractor shall provide the Department with a description of such conflict in writing, and the binding legal authority shall take precedence.

D. Contractor shall provide full-service collection to include, but not be limited to, written correspondence and telephonic means of collection.

E. Contractor shall provide fully computerized office services, not merely an account card service, which shall include:

1. Reporting to credit bureaus electronically.

2. Using an automated direct dialer system.

3. Storage of all documents on a computer.

4. Backing up data to a secure server.

5. Working directly from the computerized system.

F. In collaboration with AFSS, Contractor shall establish a secure, timely, and efficient transfer of account information. Any electronic exchange of information shall be via an approved method mutually agreed upon by the Department and the Contractor.

G. Contractor shall maintain a database accessible to AFSS with real-time information and data regarding collection accounts.

1. The database shall be formatted in such a manner that the screens are printable, and the data is exportable.

2. The Contractor shall notify AFSS via email of any changes to IT accessibility and/or compatibility within ten (10) business days.

H. Contractor shall not release personal information and shall safeguard the information from disclosure. The Contractor is liable and shall be held accountable by AFSS for inappropriate use or disclosure of personal information.

I. The Contractor shall implement the following debt collection processes when providing services under this Agreement:

1. Collection Process:

a. After the initial telephone contact or attempt, the account is transferred to a collector with an automatically generated credit report, based upon pre-determined account criteria. Reports may be hard copy and/or electronically transferred to the collector.

b. Credit reports shall be generated based on AFSS’ criteria and account balances preset and delivered to the collection agent upon receipt of the assigned account.

c. Collectors shall make contact attempts approximately every three (3) business days until contact is made. If no contact is made, skip-tracing shall begin. If no phone number is available (within AFSS media/data), skip-tracing shall begin immediately after assignment in order to contact the debtor.

d. Credit reports are reviewed and utilized for additional employment contacts, recent creditor inquiries, repayment ability, and assets.

Additionally, databases, including real property ownership, crisscross phone and address directories, corporate status, fictitious business filings, Board of Equalization (BOE), the Department of Developmental Services, Uniform Commercial Code (UCC) filings, general and limited partnerships, and marriage/divorce records are queried for debtor information.

e. When contact is made, the Contractor shall request that the debtor pay the full balance. If the debtor is unable to pay the amount owed in full, all demographics and financial history are updated to determine ability to pay.

2. Skip-Tracing Process:

a. The Contractor shall perform skip-tracing, employment and income verification, and property search services. The Contractor's services shall include, but are not limited to the following:

i. The Contractor shall utilize standard tools, such as credit reports from all three (3) major credit bureaus (Equifax, Experian, and Trans-Union), crisscross books, reconciling information from cable companies, and other entities, as well as matching it to the Contractor’s debtor account database.

ii. The Contractor shall have and retain records which include information on debtors' property ownership, marriages, divorces, probates, name changes, and criminal indexes.

iii. The Contractor shall update current database(s) quarterly. Updated information shall include the following:

A. Real Estate by Situs & Alpha for specific states

B. UCC filings

C. Fictitious business filings D. Crisscross phone and address for the continental United States

E. Corporate status

F. BOE

3. Cancellations:

a. After extensive collection activities and all skip-tracing efforts have been exhausted, the account will be given a final management review by the Contractor. The Contractor's management staff will review all accounts, in order to verify that every effort has been made. The Contractor's management staff may return the account to the Contractor's collection staff after the instructive management review where the collector will continue to perform additional specific work, if necessary.

b. The Contractor shall immediately cease efforts on recalled accounts upon request of AFSS. The Contractor shall cancel and pull the account from the collection process and submit a "Client Cancellation Acknowledgement Report" electronically to AFSS.

c. The Contractor shall continue to skip-trace inactive accounts monthly in order to re-establish contact or locate assets. The Contractor shall possess computer systems adequate for the storage and retrieval of all accounts (both active and inactive).

d. At the time of cancellation, the Contractor shall return all debt collection files to AFSS, unless otherwise instructed by AFSS, and remove the delinquent account from national credit reporting. Once a debtor's account has been cancelled, AFSS may choose, after review, to re-activate and continue collection efforts.

4. Procedures and Timelines Used to Process Claims:

a. Once AFSS has made its referrals and supplied the necessary account information to the Contractor, the Contractor shall use its federally mandated first notice, which shall be sent to each debtor. Media/data format from AFSS may be hard copy or electronic download. An initial telephone call and/or telephone contact shall be made for each delinquent account as a first attempt for a possible quick resolution.

Between one (1) to five (5) calendar days after AFSS has made its referral, each referred account shall have a minimum of one

(1) notice and one (1) telephone call contact or attempted contact.

5. Outline of Account Treatment Process:

a. Day 1:

i. AFSS’ account assignment information is electronically transferred to the Contractor. Accounts are then assigned to collectors based upon the following criteria:

A. Accounts with balances under five-hundred dollars and no cents ($500.00) are assigned to small claims collectors, whereas accounts with balances of five-hundred dollars and no cents ($500.00) or over shall be assigned to larger claim collectors.

B. Notice of Assignment is mailed.

C. First telephone contact is attempted.

D. Reports are made to nationwide Credit Reporting Agencies

(which include, but are not limited to, Equifax, Experian, and Trans-Union).

E. In the event the account is assigned and immediately determined to be a skip-trace account (as defined by an account where there is no valid telephone number), the skip-tracing process shall immediately begin. The skip-tracing shall be performed by the Contractor's skip-tracing department, where the department shall locate and research valid information pertaining to each account/claim. Once Contractor’s skip-tracing department has successfully located the necessary information, the department shall forward the account to the assigned collection agent.

b. Days 2 through 5:

i. Searches are performed on all new assignments for possible matches based on the debtor's name, and other criteria to locate any other accounts against AFSS. Positive matches are then packed together, in order to work on the accounts simultaneously.

ii. All "Can Be Reached" (CBR) telephone numbers are dialed to locate or establish contact for the delinquent account.

iii. In the event an account's CBR number is busy, all busy lines will be redialed within five (5) to fifteen (15) minutes.

c. Days 6 through 13:

i. All CBR numbers are dialed or retried, if prior payment arrangements were not established or if no contact has been made. A stronger second demand letter from the Contractor shall be sent (via regular U.S. mail) by the thirteenth (13th) day, in order to motivate payment from each debtor. All valid CBR numbers are redialed at least two (2) times per week for maximum effect.

d. Days 14 through 30:

i. At least one-third (1/3) of all accounts/claims assigned to the Contractor's collectors shall be randomly reviewed by their supervisors every seven (7) to eight (8) days to ensure quality, performance expectations, and account resolution in as short of a time frame as possible. In the event there is no contact within fourteen (14) calendar days, the skip-tracing process will begin.

ii. In addition, the Contractor shall review and utilize credit reports

(based on predetermined value systems) for additional information, in order to assist the collector in making direct contact with the debtor. Additional information includes, but is not limited to, banking relationships, recent creditor inquiries, employers, spouses, and location of real and personal property and assets. Furthermore, the Contractor shall utilize databases to search for additional valuable personal and business information, which includes but is not limited to, crisscross phone and address directories, corporate status, fictitious business filings, BOE, the Department/AFSS, UCC filings, general and limited partnerships, California real estate property ownership, and marriage/divorce records.

e. Days 31 or More:

i. The Contractor shall redial all previously established and valid telephone numbers for delinquent accounts on a weekly basis.

In the event a debtor makes a commitment to make payment on the delinquent account, and the debtor does not fulfill such commitment, the Contractor shall conduct a follow-up call on the date in which payment by the debtor was required. The Contractor shall report all unpaid accounts to credit reporting agencies (including, but not limited to, Equifax, Experian, and Trans-Union) ninety (90) days after the date of assignment.

J. Required Reports:

Contractor shall provide reports to AFSS that capture information as described below and combine all accounts into one (1) cumulative list.

Reports shall not include debtors' SSNs.

1. Monthly Activity Report: The Contractor shall provide monthly activity reports to AFSS. The monthly activity report shall provide information including, but not limited to, an account's assignment date, balance, date last worked, activities/actions taken, geography, area code, time zone, and any additional information requested by AFSS.

2. Performance Statistics: Upon AFSS’ request, the Contractor shall submit monthly Performance Statistics, which capture information on account summaries by age and statistical overview by status codes, etc.

3. Acknowledgement Report: Upon AFSS’ request, the Contractor shall confirm (in writing) all accounts/claims referred by AFSS where an account number has been assigned. The Acknowledgement Report shall include the debtor's name, date assigned, Contractor's account number, total dollars, and number of accounts assigned for the possible write-off.

4. Inventory Listing: Upon AFSS’ request, the Contractor shall furnish an inventory listing to AFSS. The Contractor shall submit the listing either monthly or quarterly (as required by AFSS), which captures information including debtor's name, account number, assigned amount, payments to date, outstanding balance, and the Contractor's recovery statistics.

5. Cancellation Report: The Contractor shall submit monthly, to AFSS, a

Cancellation Report containing an itemization and summary of all accounts returned to AFSS. The Cancellation Report shall include the account number, debtor's name, balance owing, and reason(s) for cancellation.

6. History Report: Upon AFSS’ request, the Contractor shall provide History Reports to AFSS, which are cumulative reports reflecting the amount of dollars collected during the current statement period against the month in which they were assigned.

7. Dispute-Resolution Report: The Contractor shall notify AFSS, in the event a debtor disputes all or part of the outstanding account receivable. The disputed accounts will remain suspended until additional information is obtained relative to the dispute and instructions are given by AFSS to proceed, cancel, etc.

K. The Contractor shall:

1. Not charge the Department for services rendered, until the outstanding delinquent accounts receivable are collected, whether partially or completely. Contractor shall remit all funds collected to the Department and submit an invoice to the Department in arrears for Contractor’s fee percentage, in accordance with Exhibit B, Section 1.

2. Not settle any account without AFSS’ prior written authorization.

3. Not forward accounts to another collection agency for collection without prior written authorization from AFSS.

4. Not compromise settlements on claims, which have been assigned to the Contractor, without prior written authorization from AFSS.

5. Not make any false or misleading statements, use threatening, intimidating, or harassing language, or use unfair collection practices that violate state, federal, local laws and regulations (see Confidentiality and Information Security Requirements Exhibit G).

6. Employ all lawful methods to collect the outstanding and delinquent accounts receivable, accept payments received from debtors, and forward debtors' payments to AFSS in full, as required. All funds collected by Contractor from debtors on behalf of AFSS shall be remitted to AFSS in full, and Contractor shall subsequently invoice AFSS for its compensation in accordance with the rates herein.

7. Be responsible for the loss of any funds collected while the funds are in the custody of the Contractor.

8. If payment to Contractor by debtor is made by check, payment shall not be remitted to the Department until such check has cleared the bank and is…