ITN 25-26-41.pdf

FLORIDA DEPARTMENT OF REVENUE

INVITATION TO NEGOTIATE

ITN CONTRACTUAL SERVICES – ACKNOWLEDGEMENT FORM

Page 1 of 120 pages

SUBMIT RESPONSE TO:

Florida Dept. of Revenue Purchasing Office, Building 2-1600 2450 Shumard Oak Boulevard Tallahassee, FL 32399-0109

AGENCY RELEASE DATE:

3/12/2026

SOLICITATION TITLE:

Child Support State Disbursement Unit

SOLICITATION NO:

ITN 25/26-41

Replies WILL BE OPENED: DATE: 6/15/2026 @ 3:00 P.M.

Note:

Vendor’s Reply shall remain binding until execution of a Contract with successful awarded Respondent

VENDOR NAME:

If a fictitious name is used include registered entity name (i.e., XYZ., Inc. D/B/A

ABC)

VENDOR MAILING ADDRESS:

CITY – STATE – ZIP:

*AUTHORIZED SIGNATURE (MANUAL)

PHONE

NUMBER:

T. FREE

NUMBER:

FAX NUMBER: *AUTHORIZED SIGNATURE (TYPED), TITLE

EMAIL

ADDRESS:

FEID NO.: *This individual must have the authority to bind the respondent.

TYPE OF BUSINESS ENTITY (Corporation, LLC, partnership, etc.):

I certify that this Response is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting a Response for the same materials, supplies or equipment, and is in all respects fair and without collusion or fraud. I agree to abide by all conditions of this Response and certify that I am authorized to sign this Response for the Respondent and that the Respondent is in compliance with all requirements of the Invitation to Negotiate, including but not limited to, certification requirements.

In submitting a Response to an agency for the State of Florida, the Respondent offers and agrees that if the Response is accepted, the Respondent will convey, sell, assign or transfer to the State of Florida all rights, title and interest in and to all causes of action it may now or hereafter acquire under the Anti-trust laws of the United States and the State of Florida for price fixing relating to the particular commodities or services purchased or acquired by the State of Florida. At the State’s discretion, such assignment shall be made and become effective at the time the purchasing agency tenders final payment to the Respondent.

RESPONDENT CONTACTS: Please provide the name, title, address, telephone number and e-mail address of the official contact and an alternate, if available. These individuals shall be available to be contacted by telephone or attend meetings as may be appropriate regarding the solicitation schedule.

PRIMARY CONTACT: SECONDARY CONTACT:

NAME, TITLE: NAME, TITLE:

ADDRESS: ADDRESS:

PHONE

NUMBER: PHONE

NUMBER:

FAX NUMBER: FAX NUMBER:

EMAIL

ADDRESS: EMAIL

ADDRESS:

IMPORTANT NOTICE TO VENDORS

1. PROCUREMENT LIBRARY

In addition to the materials and attachments contained herein, the Florida Department of Revenue (FDOR) has developed a Procurement Library on its Internet site to make larger attachments available to Respondents to assist with the preparation of Replies and provide a greater understanding of solicitation requirements. Additional materials may be added to the Procurement Library by FDOR.

It is the sole responsibility of potential Respondents to monitor the Procurement Library site throughout the solicitation process for any additional attachments or information relating to this procurement, as additional notification may not be provided when information or materials are added. The URL for the Procurement Library is:

https://floridarevenue.com/Pages/CSP-State-Disbursement-Unit-Procurement.aspx .

2. VENDOR INFORMATION PORTAL

FDOR utilizes the Florida Department of Management Services’ “Vendor Information Portal” (VIP) to post and update procurement documents. It is the sole responsibility of potential Respondents to monitor the VIP for any addenda or notices issued relating to this procurement. The URL for the VIP site is: https://vendor.myfloridamarketplace.com/ . The FDOR will not be liable for any addendum or other information not received by a Vendor due to the Vendor’s failure to monitor the VIP.

Solicitation related documentation will be available on the VIP, and vendors are responsible for monitoring the site for new or updated information. Information available on the VIP includes but is not limited to the Invitation to Negotiate, amendments, and questions/answers.

The link to the VIP is https://vendor.myfloridamarketplace.com/ .

If unable to read or download material from the VIP or the Procurement Library site, please contact the FDOR Procurement Officer and copy the back-up Procurement Officer identified in Section 3.2. of this ITN. The Procurement Schedule may be used as a guideline for upcoming postings to the VIP.

3. COMMODITY CODE(S)

Vendors should be registered for at least one of the following commodity codes:

64101700 - Electronic fund transfer and payment products 78142100 - Logistics Operations Management 84111500 - Accounting services 84121500 - Banking institutions 84121600 - Funds transfer and clearance and exchange services

93141507 - Social work administration services

As stated in sections 1. and 2. above, FDOR is not liable for any information or materials not received by a Vendor due to the Vendor’s failure to monitor the VIP or the Procurement Library website.

https://dorspdevext.fdor.dor.state.fl.us/Pages/CSP-State-Disbursement-Unit-Procurement.aspx https://vendor.myfloridamarketplace.com/ https://vendor.myfloridamarketplace.com/

Contents

ITN CONTRACTUAL SERVICES – ACKNOWLEDGEMENT FORM

SECTION 1: INTRODUCTION

1.1 BACKGROUND

1.2 DESCRIPTION OF THE SERVICES REQUESTED

1.3 SPECIFIC GOALS, QUESTIONS, AND FACTS

1.4 PROCUREMENT SCHEDULE

1.5 RESTRICTION ON COMMUNICATIONS

1.6 TYPE OF CONTRACT

1.7 STATE TERM CONTRACT UTILIZATION

1.8 INDEPENDENT CONTRACTOR STATUS

1.9 CONTRACT PHASES, TERM, & RENEWALS

1.10 CONTRACT FUNDING

SECTION 2: SCOPE OF WORK/SERVICES

2.1 REQUIREMENTS

2.2 DELIVERABLES

2.3 PERFORMANCE ACCOUNTABILITY MEASURES (PAMS) AND FINANCIAL

CONSEQUENCES

2.4 SUPPORTING INFORMATION

2.6 COMPENSATION AND PAYMENT

2.7 UNKNOWN, UNANTICIPATED, UNSPECIFIED TASKS

2.8 CHANGE ORDERS

2.9 PERSONNEL, FACILITIES AND TRAINING

2.10 BOND REQUIREMENTS

2.11 INSURANCE REQUIREMENTS

2.12 ADDITIONAL REQUIREMENTS DUE TO FEDERAL FUNDING

SECTION 3: PROCUREMENT AND CONTRACTING PROCESS

3.1 PROCUREMENT APPROACH

3.2 PROCUREMENT OFFICER

3.3 DEFINITION OF REQUIREMENTS

3.4 VENDOR ADMONISHMENTS

3.5 RESERVED RIGHTS

3.6 PROCUREMENT LIBRARY

3.7 ITN RELEASE

3.8 ERRORS IN ITN

3.9 QUESTIONS

3.10 ADDENDA

3.11 PROCUREMENT / CONTRACTING CONSTRAINTS

3.12 RIGHT TO INSPECT PLACE OF BUSINESS

3.13 REPLY OPENING

3.14 RESPONSIVENESS REQUIREMENTS REVIEW

3.15 FINANCIAL REVIEW

3.16 TECHNICAL REPLY EVALUATION

3.17 COST DATA VOLUME OPENING REVIEW AND SCORING

3.18 TOTAL REPLY SCORING

3.19 NEGOTIATIONS

3.20 SELECTION CRITERIA

3.21 VENDOR RESPONSIBILITY REVIEW

3.22 CONTRACT TERMS AND CONDITIONS:

3.23 NOTICE OF AGENCY DECISION

3.24 PROTEST AND PROTEST FILING

3.25 CONTRACT FORMATION

3.26 SUBCONTRACTS & JOINT VENTURES

3.27 CONTRACT APPROVAL

3.28 STANDARD CONTRACT PROVISIONS

SECTION 4: SUBMISSION OF REPLIES

4.1 GENERAL INSTRUCTIONS TO RESPONDENTS

4.2 COSTS ASSOCIATED WITH REPLY

4.3 DELIVERY

4.4 REPLY VERSIONS

4.5 GENERAL FORMATTING INSTRUCTIONS

4.6 FORMAT, CONTENT, QUANTITY AND MEDIA

SECTION 5: ATTACHMENTS AND SUBMITTALS

5.1 SUBMITTAL CHECKLIST

ATTACHMENT B: VENDOR CERTIFICATION FORM – PUR 7801

ATTACHMENT C: NOTICE OF NO CONFLICT OF INTEREST

ATTACHMENT D: STATEMENT OF NO INVOLVEMENT

ATTACHMENT E: ORGANIZATIONAL CONFLICTS OF INTEREST CERTIFICATION

ATTACHMENT F: VENDOR RESPONSIBILITY DISCLOSURE

ATTACHMENT G: AGREEMENT TO MAINTAIN THE SECURITY OF CONFIDENTIAL INFORMATION

ATTACHMENT H: SECURITY ACKNOWLEDGEMENT

ATTACHMENT I: RESPONDENT REFERENCE FORM

ATTACHMENT J: CUSTOMER REFERENCE FORM

ATTACHMENT K: SUBCONTRACTOR FORM

ATTACHMENT L: PERFORMANCE AND FIDELITY BOND

ATTACHMENT M: COST SHEET

EXHIBIT 1: DEFINITIONS

EXHIBIT 2: EVALUATOR’S SCORE SHEET

EXHIBIT 3: PROCUREMENT LIBRARY DOCUMENTS

SECTION 1: INTRODUCTION

1.1 BACKGROUND

The Florida Department of Revenue (FDOR) is designated under section 409.2557, Florida Statutes (F.S.), as the state Title IV-D agency. The Child Support Program (the Program) is an operational program within the Department of Revenue, an agency of the Executive Branch of State government created by an Act of the Florida Legislature. See section 20.21(1)(h), F.S.

The State Disbursement Unit (SDU) established under section 61.1824, F.S., is a processing center responsible for collecting and disbursing payments for all support cases enforced by the Program pursuant to Title IV-D of the Social Security Act and for all child support cases not being enforced by the Program under Title IV-D in which the initial child support order was issued in the State on or after January 1, 1994, and that the obligor’s child support obligation is being paid through income deduction.

The Department provides management oversight of the SDU. The Florida Association of Court Clerks (FACC) is a partner in SDU operations and provides certain SDU related services. FACC provides for the operation and maintenance of the statewide eCLERC system, which is responsible for data transmission between the SDU, DOR and the Clerks of the Circuit Court. The following illustration provides an overview of the data flow under the current contract:

1.2 DESCRIPTION OF THE SERVICES REQUESTED

The Department is seeking competitive sealed replies (Replies) from firms (Contractor or Vendor) capable of providing SDU services (Services). The initial scope of services is outlined below and will be more fully explored during the negotiation phase of the ITN. The Department currently contracts with Systems & Methods, Inc., for these services. This contract expires October 10, 2026.

In summary, the Department expects the Services to include the following duties and functions to ensure child support payments are appropriately collected and disbursed. Additional information regarding the Services is provided in Section 2 Scope of Work.

A. Receipt Processing. Maintaining security and control over lockbox operations in which payments are received from multiple sources, including but not limited to individual payers, employers, and other states and countries. This includes mail pick-up and delivery, processing, oversight, and related data and records management (paper and electronic);

processing paper and electronic payments; coordinating payment processing with other entities (e.g., financial institutions, insurance companies); and correspondence processing.

B. Exception Processing. Managing unidentified items when a receipt cannot be posted to a

SDU system due to incomplete information being received; establishing and maintaining a process for tracking and resolving misapplied and rejected payments; and managing returned deposit items.

C. Bank Deposits. Depositing collection receipts daily into an interest-bearing account and managing these activities as required by law and as directed by the Department.

D. Disbursement Processing. Processing daily disbursement files and creating and storing file and transaction data as directed; providing disbursement-related services (e.g., printing and distributing checks, handling returned, lost or stolen disbursements, processing direct deposits, providing debit card services, processing foreign disbursements), issuing SDU refunds as directed; and completing unclaimed property activities and reporting as required.

E. Banking. Providing banking services, including oversight and management of SDU-related bank accounts; funding an escrow account to be used in the event of an account shortage;

coordinating with the bank to address/handle exception notices, and transferring funds between accounts; and performing banking and reconciliation activities. See Appendix 2 in the Procurement Library (https://floridarevenue.com/Pages/CSP-State-Disbursement- Unit-Procurement.aspx). for an illustration of the Department’s current SDU banking services model.

F. Reconciliation. Ensuring all transactions and activities involving SDU bank accounts are accounted for; completing periodic reconciliations (e.g., bank to book, receipts, disbursement, returned deposit items, recoupment reconciliation) of receipts and disbursements for SDU accounts; and providing online access to Contractor records to allow for review of reconciliations.

G. Customer Service. Providing a customer call center, an interactive voice response (IVR) system, and website access to permit making payments, viewing relevant payment information, and receiving alerts; timely responding to inquiries, handling information requests, and escalating matters / issues as directed; and providing reporting and analytics functionality and support.

I. Anticipated Term of Contract. The Contract term is anticipated to include a five-year initial term followed by optional renewals of up to five years. The initial Contract and renewal terms may be negotiated during the course of this ITN.

1.3 SPECIFIC GOALS, QUESTIONS, AND FACTS

In accordance with s. 287.057(1)(c), F.S., the Department provides the following information:

Specific Goals: The specific goal of this ITN is to identify and engage one Vendor to provide the best value to the Department based on several factors, including: (i) prior relevant experience, (ii) quality of personnel and resources used to provide the Services, (iii) proposed methods for delivering the Services, and (iv) contractual terms and pricing for the Services. The criteria for evaluating and selecting Vendors are more fully described in Section 3 of this ITN.

Questions Being Explored: These questions are included to give Vendors a better understanding of potential negotiation issues and factors that may impact the outcome of this ITN.

Vendors are not required to reply directly to the questions below in their Reply.

A. What Services are available to the Department that best meet Department’s needs as outlined in this ITN?

B. How can the Department and the Vendor best provide for a smooth, timely, and cost-effective implementation and migration to the Services?

C. What contract terms are commercially reasonable and appropriate for the Services?

D. How can the Department maintain ownership and usability of data associated with the

Services, even after contract expiration/termination?

E. What additional related value-added Services and products can Vendors offer?

F. Which Vendor ultimately provides the best value for the Department?

Facts Being Sought: The facts being sought in this ITN are identified primarily in Section 4, Submission of Replies.

1.4 PROCUREMENT SCHEDULE

Below is the procurement schedule that represents FDOR’s best estimate of the schedule that will be followed. If deviations from this schedule occur, FDOR will publish an addendum on the VIP. No liability to FDOR will result from such deviations. All required Vendor actions must be completed by the date and time in the schedule. All listed times are local time in Tallahassee, FL.

Event Date Time Location/Method Release of ITN 03/12/2026 5:00 PM Vendor Information Portal Vendors submit questions – 1st round

03/27/2026 5:00 PM Email to Procurement Officer

The FDOR posts responses to questions – 1st round

On or about 04/10/2026

5:00 PM Vendor Information Portal

Vendors submit questions – 2nd round

04/17/2026 5:00 PM Email to Procurement Officer

The FDOR posts responses to questions – 2nd round

On or about 05/01/2026

5:00 PM Vendor Information Portal

Responses Due Public Opening

06/15/2026 3:00 PM Procurement Office

The sequence of events below is provided for informational purposes only. Date(s) and Time(s) for each will be provided closer to the actual event. The FDOR will publish any ITN addendum on the VIP and/or notify in writing via e-mail, all Vendors that submitted Replies, with the date and time and guidance/instructions, as applicable for each event.

FDOR begins providing Clarification Requests to Vendors as needed

06/22/2026 8:00 AM Email from Procurement Officer

Vendor responses to clarification questions due (clarification request)

06/22/2026- 07/17/2026

5:00 PM Email to Procurement Officer

Product demonstrations 07/20/2026 - 07/24/2026

TBD TBD

Public Opening (Cost) 07/28/2026 3:00 PM Procurement Office

Negotiations Begin 07/29/2026 5:00 PM TBD

Best and Final Offer due 09/24/2026 5:00 PM Email to Procurement Officer

Notice of Intent to award 09/28/2026 3:00 PM Vendor Information Portal

Contract Formation 10/02/2026 - 10/10/2026

5:00 PM Child Support Program

1.5 RESTRICTION ON COMMUNICATIONS

The following provision is included in this ITN as required by s. 287.057(25), F.S.:

“Respondents to this solicitation or persons acting on their behalf may not contact, between the release of this solicitation and the end of the 72-hour period following the agency posting the notice of intended award, excluding Saturdays, Sundays, and state holidays, any employee or officer of the executive or legislative branch concerning any aspect of this solicitation, except in writing to the Procurement Officer and copy to the Back-up Procurement Officer or as provided in the solicitation documents. Violation of this provision may be grounds for rejecting a response.”

See Section 3.2., Procurement Officer.

1.6 TYPE OF CONTRACT

The Contract will be a fixed-rate, deliverable-based contract.

This ITN does not by itself obligate the State. The State’s obligation will commence when the Contract is signed by FDOR’s Director of Financial Management or approved designee. Upon written notice to the Contractor, FDOR may set a different starting date for the Contract. FDOR will not be responsible for any work done by the Contractor, even work done in good faith, if it occurs prior to the start date or date executed by both parties whichever is later.

From the date of receiving the final Contract, the successful Vendor shall have ten (10) business days to execute and return the Contract as tendered by FDOR (ten (10) business days from the date it was delivered to the successful Vendor by FDOR). FDOR reserves the right to withdraw the tendered Contract and resume discussions with other responsive Vendors after the tenth (10th) day.

The sample FDOR contract found in the Procurement Library Appendix 1 (https://floridarevenue.com/Pages/CSP-State-Disbursement-Unit-Procurement.aspx) should be scrutinized by Vendors since modifications proposed by the vendor may not be considered.

1.7 STATE TERM CONTRACT UTILIZATION

Should any goods or services proposed by Vendor be available for purchase via a Florida State Term Contract, the FDOR reserves the right to purchase any portion of those goods or services from the State Term Contract when determined by FDOR to be in the best interest of the State.

1.8 INDEPENDENT CONTRACTOR STATUS

During the performance of the Contract, the Contractor and its employees will be regarded as independent contractors and not as employees or agents of the State of Florida or the FDOR.

The Contractor will be responsible for all its employees’ insurance and federal, state, local, and FICA taxes. All employees hired by the Contractor under the prospective Contract shall be notified in writing by the Contractor of this provision as a condition of employment.

1.9 CONTRACT PHASES, TERM, & RENEWALS

This contract will consist of two phases: Phase 1 is the Transition Phase and Phase 2 is the Operations Phase.

The Transition Phase consists of start-up activities that must be completed before cutover to the Operations Phase. By way of example, tasks and activities during the Transition Phase may include but are not limited to: organization, planning, facilities, hiring, training, hardware and file set up and testing, banking arrangements, development and approval of operational procedures, and any other necessary tasks and activities to ensure an effective cutover consistent with the terms and conditions of the contract.

The Transition Phase will begin when the contract becomes effective and will end when cutover to the Operations Phase is successful, as determined by the Department. The duration of the Transition Phase and any associated activities, requirements, deliverables, project schedule, costs (if any), financial penalties, and payment for transition costs will be determined during contract formation and included in the contract.

The Operations Phase is the 60-month period that begins at cutover when the contractor assumes full responsibility for daily SDU operations and performance of all contractual requirements.

FDOR reserves the right to renew any Contract resulting from this ITN. Renewals shall be subject to the same terms and conditions set forth in the original Contract, and subsequent amendments and may be for the original term of the Contract or for a period that may not exceed (5) years.

The renewal may be divided into increments (five one-year renewals), may be for a complete term (one renewal for five years or the original term of the contract), or a combination thereof (one three-year renewal followed by one two-year renewal). Renewals are contingent upon satisfactory performance evaluation by FDOR, and must be authorized by mutual agreement in writing, prior to Contract expiration.

Vendors shall include the cost of any contemplated renewals in their Reply. The renewal, if any, is subject to the same terms and conditions set forth in the initial Contract and subsequent amendments.

1.10 CONTRACT FUNDING

The State of Florida’s performance and obligation to pay under a Contract resulting from this ITN is contingent upon an annual appropriation by the Florida Legislature. If funds are not appropriated or federal matching funds are no longer made available to fund the Contract, FDOR may terminate the Contract in accordance with Section III.D of Appendix 1 FDOR Standard Contract, available from the Procurement Library.

(https://floridarevenue.com/Pages/CSP-State-Disbursement-Unit-Procurement.aspx) .

If funding for the Contract or the continuation of the Contract resulting from this ITN is not approved by the Florida Legislature, FDOR shall have no liability for payments to the Contractor.

The costs of services paid under any other Contract or from any other source are not eligible for reimbursement under the Contract resulting from this ITN.

Under the current contract the budget is $9,620,712 per year. The budget for a new contract resulting from this ITN will be determined by FDOR after Florida’s General Appropriations Act for State Fiscal Year 2026-2027 becomes law.

END OF SECTION

SECTION 2: SCOPE OF WORK/SERVICES

The Florida State Disbursement Unit (SDU) is responsible for processing collections and disbursements for child support cases enforced by the Florida Department of Revenue (FDOR) pursuant to Title IV-D of the Social Security Act and for Non-IV-D cases not enforced by FDOR in which the support obligation is paid through income withholding.

Because the Clerks of the Circuit Court are the official recordkeepers, payment information is transmitted electronically by the SDU to the clerks then transmitted to FDOR for IV-D cases. The Florida Association of Court Clerks and Comptrollers (FACC) serves as intermediary between FDOR, SDU, and the clerks for file processing and for payment issue resolution on Non-IV-D cases.

Individual clerks may contract with the SDU vendor for receipt and disbursement services on cases not enforced by FDOR where support is not paid through income withholding. This service is referred to as Contracted Disbursement Unit (CDU) processing. (See Section 2.1.G.1)

2.1 REQUIREMENTS

A. Operational

1. Receipt Processing

a) Contractor must maintain security and control over lockbox processing for payments received from multiple sources, including but not limited to individual payers, employers, and other states and countries.

b) Contractor is responsible for all aspects of SDU receipt processing, including but not limited to mail pickup and delivery, receipt of mail at the SDU facility, mail opening and sorting, imaging documents and payment instruments, matching and applying payments to cases, and depositing receipts into the appropriate SDU bank account.

c) Contractor must process all payments on the same day they are received.

d) Contractor must notify FDOR by phone and email as soon as information available indicates that processing of all or part of the day’s receipts will not be completed. An Incident Report must be completed in accordance with Section 2.1.D Incident Reporting.

e) Contractor must perform exception processing for items that require special handling, including but not limited to misapplied payments, payments that cannot be processed, unidentified payments, and returned deposit items.

f) Contractor must have the ability to pull paper and electronic receipts from SDU processing when notified in advance by an employer or FDOR that payments are for the next month’s support obligation.

(1) This circumstance occurs a few times a year with federal agencies (such as the Social Security Administration) when, based on the calendar date payroll is processed and the day of the week a month ends or begins, the SDU receives payments that have been deducted from the next month’s pay.

(2) When the Contractor has advance notice, it must be able to identify and pull these receipts and hold them until the first business day of the next month before processing.

g) Contractor shall provide information and support to employers to resolve payment issues including but not limited to unidentified, misapplied, or out-of-balance receipts, garnishments for multiple cases, and identification of employees receiving refunds due to closed cases.

h) Contractor must include all receipts for the day in that day’s interface files, whether posted to a case or held for research, in accordance with Appendix 3 the Interface Control Document (ICD) (https://floridarevenue.com/Pages/CSP-State-Disbursement-Unit- Procurement.aspx) .

1.1 Mail Pickup/Delivery Services

Mail is currently received at nine (9) post office boxes leased from the United States Postal Service (USPS).

Contractor must:

a) Retain leases and assume costs for the boxes.

b) If the Contractor requests a different location or different post office box numbers, subject to FDOR approval, the Contractor will be responsible for any expense associated with the change and must provide a detailed plan with a schedule showing the effect of the change on mail and payment processing.

c) Pick up and deliver mail to the SDU or arrange for a bonded courier to pick up and deliver mail to the SDU at the earliest time mail is available at the post office to ensure same day processing each business day.

d) If the USPS processing schedule is such that mail is available for pickup multiple times daily and multiple pickups would enhance the timeliness of SDU processing, the Contractor must arrange for multiple daily pickups and deliveries.

e) Legibly sign for, image, and maintain a log with sufficient information to identify and track all registered, certified, and special delivery mail when delivery is to the SDU

1.2 Mail Processing

Contractor must complete mail processing activities daily.

a) Contractor’s mail processing procedures must include:

(1) Sorting mail containing payments separately from correspondence received without payments.

(2) Identifying and segregating payments that require special handling such as checks from other state SDUs and auxiliary receipts described in section 2.1.A.1.6.

(3) Imaging and storing mail content.

(4) Handling misdirected mail.

(5) Handling suspicious packages: bomb, chemical, biological, or radiological threats.

b) Correspondence and documents that accompany a payment must be kept with the payment and imaged before or during payment processing.

c) All images (payments and other documents) must be immediately available for access by Contractor personnel, FDOR, and FACC.

d) Misdirected mail must be forwarded to the intended recipient or returned to the sender.

e) Contractor must process mail and payments delivered by FDOR’s courier on the same day when received by a mutually agreed upon time.

1.3 Correspondence Processing

a) Contractor must image all correspondence.

b) Correspondence images must be available to FDOR and FACC.

c) Correspondence that does not require action by the SDU must be made available to FDOR in electronic format that allows items to be assigned to users, reviewed, and marked with statuses in the SDU system indicating the review is in process or completed.

d) Contractor must provide a system security role for FDOR to work correspondence items that restricts access to other system data and payment images.

1.4 Paper Payments

Contractor shall process paper payments to include checks, money orders, cashier’s checks, and cash.

a) Contractor is responsible for developing a comprehensive screening procedure and must provide sufficient management, personnel, and equipment to complete all screening and processing within the time frames required by this ITN. Items that must be identified in the screening process include but are not limited to:

(1) Non-negotiable instruments such as stale-dated or incomplete checks.

(2) Dollar amount discrepancy between check and source document.

(3) Remittance documentation or correspondence received without a payment.

(4) Foreign currency.

(5) Payments received with multiple case identifiers to ensure proper posting to appropriate cases.

b) Contractor shall:

(1) Have the capability to hold in suspense high dollar payments (personal checks above an agreed amount) and shall work with FDOR in good faith to establish a mutually agreeable procedure for handling these items.

(2) Propose a solution and develop procedures for processing foreign currency items.

c) Contractor must maintain an audit trail when transferring payment instruments between personnel and/or units.

d) Payments must be restrictively endorsed and sorted by remittance type (employer wage withholding, other state, persons owing support) for posting.

e) Contractor must perform outreach to payers to enhance payment accuracy and completeness to reduce the number of paper payment exceptions and promote electronic remittance.

f) Contractor shall have procedures for processing and depositing cash, including creation of substitute documents for imaging purposes.

g) Contractor shall perform ‘salting’ tests annually wherein cash and/or money orders are inserted in the day’s mail to test the efficacy of Contractor’s payment handling and security monitoring procedures.

h) Paper payments except for cash must be securely stored after electronic deposit and maintained for at least thirty (30) days.

1.5 Electronic Funds Transfer (EFT) and Electronic Data Interchange (EDI) Payments

a) Contractor must receive and process EFT/EDI payments from employers, other states, state and federal agencies, Clerks of Court, other countries, and other payers.

b) Contractor must create a representative image in the SDU system to display information received with electronic payments.

c) Contractor shall:

(1) Provide education and outreach to employers not using EFT/EDI to encourage compliance with state law. Contractor actions may include but are not limited to mass mailings, phone calls, and email.

(2) Assist employers with setting up EFT/EDI.

(3) Accept and process EFT/EDI payments using the formats prescribed by the Bankers EDI (Electronic Data Interchange) Council and NACHA (National Automated Clearing House Association).

(4) Have a representative attend federal Office of Child Support Enforcement (OCSE) EFT/EDI conference calls and comply with requests for information, reconciliations, and other activities as necessary.

d) Contractor must process the daily Over the Counter (OTC) Receipt Data File 950-01 containing information for IV-D and Non-IV-D payments receipted by the clerks of court.

Processing includes:

(1) Importing the OTC payment data into the SDU system.

(2) Maintaining clerk of court banking information and processing bank account debit transactions to ensure funds for each OTC payment are deposited into the SDU bank account by the Clerk.

(3) Verifying completion of the process daily.

e) With FDOR approval, the Contractor may provide and maintain other electronic payment alternatives or technology to simplify or enhance the receipt processing operation.

1.6 Auxiliary Receipts

a) Contractor must process payments received from financial institutions, insurance companies, and attorneys for levies and insurance settlements.

b) Payments intended for bank levy and insurance settlement must be imaged, assigned a unique standard payment identifier, reported and tracked in the SDU database, and transmitted in the SDU Auxiliary Receipt File 130-01 in accordance with the ICD. Auxiliary receipts must not be posted to cases in the SDU system.

c) Payments received by EFT/ACH encoded with the Application Indicator “FD” must be segregated from SDU payment processing and included in the auxiliary receipt file.

d) FDOR will forward payments to the SDU by courier daily for inclusion in the auxiliary receipts file. The Contractor must process payments the same day as received when the courier arrives before a mutually agreed upon time.

e) The Contractor must provide an online portal for remittance of bank levy and insurance settlement payments separate from remittance by employers and obligors.

f) IV-D SDU payments returned by Clerks in the FACC Redirected SDU Receipts File 375- 90 must be included in the auxiliary receipt file in accordance with the ICD.

2. Exception Processing

2.1 Unidentified Payments

An unidentified payment is a receipt that cannot be posted to a case on the SDU system due to missing or incomplete case identifying information or no case record existing in the SDU system.

The Contractor shall work independently and with FDOR and FACC to timely and accurately resolve unidentified payments.

a) Contractor must work unidentified payments daily to ensure payments are resolved timely and accurately.

b) Activities to resolve unidentified payments must include but are not limited to:

(1) Completing research using information such as names, social security numbers, partial case numbers, and payment history to identify intended cases.

(2) Contacting the payer when information is included with the payment that makes such attempt reasonable.

(3) Using FDOR’s CAMS and the Clerks’ CCIS systems in unidentified research.

c) Contractor must categorize payments with the proper Payment Indicator code as listed in the ICD for the New Receipt Exception File 375-96.

d) Unidentified payments that cannot be posted to a case after research must be returned to the remitter when the remitter is identified. Contractor must have the capability to initiate check disbursements from the SDU system to issue refunds of unidentified payments.

e) Contractor must classify payments that can’t be posted or returned to the remitter as unidentifiable after approval by FDOR and include such payments on the monthly SDU Unidentifiable File 975-01 in accordance with the ICD.

2.2 Misapplied Payments

The Contractor shall establish and maintain a process for resolving misapplied payments that result from actions or inactions by the Contractor, FDOR, employers, or other SDU partners.

At a minimum, Contractor must:

a) Provide detailed procedures to identify, research, correct, and avoid or minimize misapplied payments.

b) Complete processing on the correct case within one (1) business day after a misapplied payment is detected.

c) Accept financial responsibility and fund all losses to SDU bank accounts that are not the result of FDOR error. Funding transfers must be in accordance with FDOR direction. See section 2.1.A.5.2 Escrow and Returned Deposit Accounts for additional information.

d) Submit a monthly report to FDOR that identifies each misapplied payment detected during the reporting month, the Contractor’s determination of error responsibility, and the date and amount of any funding of SDU account(s) to cover losses.

(1) Information provided must be sufficient for FDOR to perform quality assurance on all error responsibility assigned.

(2) FDOR will make the final determination of error responsibility and requirements for funding losses.

2.3 Rejected Payments

Contractor must have procedures to reject payments such as non-negotiable instruments from SDU processing before deposit and return the rejected payment to the payer with a letter providing a reason for the return.

The Contractor must:

a) Resolve rejected payments no later than the next business day after receipt.

b) Review reject criteria annually to ensure criteria are valid and payments are not returned unnecessarily.

c) Propose new criteria or procedures as needed for FDOR approval.

2.4 Returned Deposit Items

The Contractor shall:

a) Be responsible for financial losses for all returned deposit items.

b) Maintain a returned items database and flag payers who submit items returned unpaid to prevent payers from submitting additional bad payment instruments.

c) Have procedures in place for reconsidering flagged payers based on the circumstance, number of occurrences, and status of recoupment of returned items to allow payers to submit payment again.

d) Remove the flagged status of a payer at the request of FDOR for circumstances that are escalated or for high-volume remitters when the financial loss has been recovered.

e) Provide FDOR access to review returned deposit items and the recoupment status.

3. Bank Deposits

a) Contractor shall deposit receipts daily into an interest-bearing account.

(1) All deposits must be held in a Qualified Public Depository as defined by section 280.02(26), F.S.

(2) All non-foreign payments must be deposited on the same business day as received.

(3) All foreign payments must be deposited no later than the next business day after receipt or otherwise be processed in accordance with Contractor’s foreign currency procedures approved by the FDOR.

b) Contractor must use image cash letter capability to electronically forward deposits to the bank.

4. Disbursement Processing

4.1 General Requirements

a) The Contractor must:

(1) Use a financial institution that is EFT capable and compliant with NACHA regulations.

(2) Process daily disbursement files created by FDOR for IV-D disbursements and by the Clerks for Non-IV-D disbursements on the same day as received by the Contractor, when received by the mutually agreed cutoff time.

(3) Notify FDOR by phone as soon as information available indicates that all or part of the day’s disbursements will not be completed and submit an incident report in accordance with section 2.1.D.

(4) Have four (4) disbursement methods: direct deposit, debit card, paper check, and

EFT.

b) Contractor must create an SDU disbursement file to go to the bank, and a print file if required for checks, the same day the disbursement files are received from FDOR and the Clerks.

c) Contractor must store in its SDU database all transaction details from disbursement files so that individual receipts are linked to the corresponding disbursements.

d) Contractor must maintain bank account information for other states, agencies, and countries to facilitate disbursements to those entities via EFT.

e) Contractor shall provide a daily file in accordance with the ICD of all disbursement method changes initiated on the SDU system due to customer enrollment status in direct deposit or debit card programs, or the rejection of electronic disbursements by the bank.

f) Contractor shall be responsible for voiding disbursements and must provide a daily void file of all voids and disbursement rejects in accordance with the ICD. Disbursement rejects are disbursements that appear on FDOR or FACC disbursement files which are removed by the Contractor because of missing mandatory details.

4.2 Checks

Checks will be issued for all disbursements not processed through the Automated Clearing House (ACH) network or disbursed to the debit card, as indicated in FDOR and FACC disbursement files.

a) Contractor shall:

(1) Print all checks on the check print file each business day. All checks must be mailed by first class mail daily.

(2) Print checks on FDOR approved check stock with FDOR approved information, format, and security features.

(3) Duplicate an electronically generated signature as directed by FDOR on each check.

b) Contractor must comply with the following check file requirements:

(1) Accommodate informational text to be printed on the check stub.

(2) Pre-sort function.

(3) Includes a bar code.

c) The Contractor shall design and use checks with a detachable stub that contains the following information:

(1) Payer name(s), multiple payer names will appear when disbursements are from multiple cases.

(2) Payee name.

(3) Check date.

(4) Depository numbers, multiple depository numbers will appear when disbursements are from multiple cases.

(5) Check amount.

(6) Case amount(s), same as check amount except when the check includes disbursements from multiple cases.

(7) Check number.

(8) Other state case number.

(9) CSP case number.

(10) Disbursement description or informational text line.

4.3 Direct Deposit

a) Contractor must maintain procedures for managing direct deposit enrollment and processing.

b) Contractor must, at a minimum:

(1) Process applications for new enrollments and account changes, including forms development and an online enrollment process.

(2) Provide marketing and customer outreach.

(3) Handle direct deposit payments returned by the payee’s bank to include voiding the disbursements in the SDU system.

(4) Resolve file transmission issues with the bank.

(5) Maintain bank account information for persons due support enrolled in direct deposit.

(6) Record changes in bank account information received in Notice of Change files from the bank.

(7) Transmit bank account information for customers with Non-IV-D cases to the Clerks and record in the SDU database bank account information received in the FACC Disbursement File 305-01.

4.4 Debit Card Services

a) Contractor must implement and maintain stored value account debit card services that provide for deposit of payments to a person due support and allows for access to payments at automated teller machines (ATMs), banks, and retail establishments.

b) Contractor must send enrollment materials to persons due support who are issued paper checks in the FACC Disbursement File 305-01 (Non-IV-D) and DOR Disbursement File

306-01 (IV-D).

(1) Enrollment materials must offer the opportunity to sign up for direct deposit or a debit card.

(2) If a customer does not sign up for direct deposit within a designated time period, the Contractor will send a debit card and indicate when payments will start being disbursed to the debit card.

(3) The enrollment process must be configurable for different notices and enrollment timeframes depending on the source file (Non-IV-D or IV-D).

c) Contractor shall provide one replacement card to each cardholder per year, upon request, at no cost to the cardholder.

d) Contractor shall have in place an unclaimed property policy for its debit card services, comply with Chapter 717, F.S., and notify FDOR of unclaimed property transfers.

Notifications of unclaimed property transfers shall be transmitted in a mutually agreed upon form, format, and schedule.

e) Contractor shall ensure its debit card provider sends the Contractor an electronic file of all address updates and deactivations received by the debit card provider within one (1) business day of receipt by the debit card provider. All updates and deactivations shall be included in the daily address files in accordance with the ICD.

f) Contractor shall provide customer outreach to inform parents about debit card services.

g) Contractor must maintain a file of debit card customers who have requested and been granted by FDOR an exception to the requirement that payments be disbursed electronically. Contractor must maintain the exception list by adding and removing people from the list as requested by FDOR.

h) Contractor’s debit card must be affiliated with the VISA or MasterCard system.

i) Contractor must notify FDOR at least ninety (90) days in advance of proposed changes in policy that affect cardholders or cardholder accounts. FDOR must approve all changes that impact the customer unless the change is required by federal or state law or regulation.

j) Contractor shall not raise cardholder fees during the term of the contract, including renewal period(s).

k) Contractor shall provide all informational and instructional materials including but not limited to enrollment materials to cardholders, and the materials must be available in English and Spanish. Cardholder agreements and fee schedules must be available online for customers to review before enrollment.

l) Contractor shall develop and provide procedures for processing debit cards that are returned to the Contractor or card provider as undelivered. At a minimum, the Contractor must ensure that:

(1) Payee/cardholder address is updated on the SDU database.

(2) The returned card is remailed or a new card is issued if a new address is provided.

(3) All address updates and deactivations resulting from debit card processing are included in the DOR Change of Address File 376-02 and the FACC Change of Address File 375-02 in accordance with the ICD.

(4) All address updates and deactivations for cardholder addresses are sent to their card provider daily.

m) Contractor must have the ability to reverse and void debit card disbursements upon request by FDOR when the disbursement was in error and the funds are available in the card account.

4.5 Foreign Disbursements

Contractor shall provide FDOR with a written description of how it could disburse payments to foreign countries, including electronic disbursements using the International ACH Transaction (IAT) format, with child support case information in the optional addenda record using information provided in the DOR Disbursement File 306-01.

4.6 Disbursement Check Pulls

a) Contractor shall have the capability to:

(1) Pull checks before mailing if information is received from FDOR that the check was issued in error.

(2) Pull checks before mailing and change the mailing address if information is received from FDOR that the check was directed to an incorrect address.

b) Contractor shall not mail checks before 12:00 P.M. ET each business day.

c) Contractor must void checks that are not mailed.

4.7 Disbursement Exceptions

a) Contractor shall establish and maintain a process for voiding electronic and check disbursements. The Contractor must, at a minimum:

(1) Place a void on a check when the Contractor is in possession of the physical check.

(2) Image all void request forms and returned checks.

(3) Void the disbursement in the Contractor’s system within one (1) business day of receiving the returned disbursement.

(4) Update the payee address in the SDU database for any check that is returned with an address update provided.

(5) Deactivate the payee address in the SDU database for any check that is returned for a bad address and an address update is not provided.

(6) Assign the appropriate void reason code from a series of void codes provided by

FDOR.

(7) Create a daily Stop Payment/Void Check/Disbursement Reject File 375-03 of stale-dated checks, pulled checks (not mailed), stop payments, rejected and returned electronic disbursements, and voids in accordance with the ICD and FDOR procedures.

(8) Include address updates in the DOR Change of Address File 376-01 and FACC Change of Address File 375-01 in accordance with the ICD.

(9) Transmit void and stop payment instructions to the bank.

b) Contractor shall establish and maintain a process for automated stale-dated voiding of disbursement checks when a check is not paid, voided, or stopped after a specified number of days (currently 185 days) from the date of the check, as determined by FDOR.

c) Contractor must void returned electronic disbursements and process changes to disbursement methods to include:

(1) Deactivating a customer’s direct deposit.

(2) Changing the customer’s disbursement method to checks or to debit card if debit card was the disbursement method prior to direct deposit enrollment.

(3) Sending the customer notice of change in disbursement methods.

(4) Transmitting disbursement method changes in the eDisbursement Update File 934- 01 and eDisbursement Shut-off File 935-01 as appropriate in accordance with the

ICD.

d) Contractor shall establish and maintain a process for handling stop payment requests for lost checks. Contractor must, at a minimum:

(1) Image all stop payment requests and affidavits.

(2) Verify with the bank whether the check has been cashed or voided.

(3) Place a stop payment on a check (not a void) if the physical instrument is in circulation and not in the Contractor’s possession.

e) Contractor shall establish and maintain a process for handling claims involving stolen or forged disbursement checks. Contractor must, at a minimum:

(1) Assist customers by providing forms and instructions for submitting a forgery claim in accordance with bank requirements.

(2) Forward all forgery claims to the bank no later than the next business day after the required documents are received.

(3) Assign the appropriate forgery code to the check in the Contractor’s system and transmit the information in the daily void file in accordance with the ICD.

(4) When a forgery request has been investigated and accepted by the bank and cash is reimbursed to the bank account, the Contractor shall add the transaction to the daily void file in accordance with the ICD.

4.8 SDU Refunds

a) Contractor shall have the capability to generate check disbursements from the SDU system and insert the disbursement records in daily bank files. SDU refunds are issued for unidentified items that cannot be posted to a case after research and for Non-IV-D payments returned in the FACC Redirected SDU Receipts File 375-90 in accordance with the ICD.

b) SDU refund checks must be processed within two (2) business days of unidentified payment resolution or notification of redirection in the FACC file.

c) Contractor shall apply standard stale-date, void, stop, and forgery processes to SDU refund checks and have procedures in place to review and reissue payments after checks are stale-dated or voided.

4.9 Unclaimed Property Reporting

a) Contractor shall be responsible for completing unclaimed…