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SOLICITATION ADDENDUM 123370 O3
QUESTIONS AND ANSWERS
SOLICITATION NUMBER: 123370 O3
Full-Service Collection Agency Opening Date: December 19, 2025, 2 P.M.
Addendum Effective Date: December 5, 2025
Questions and Answers
Following are the questions submitted and answers provided for the above-mentioned solicitation. The questions and answers are to be considered as part of the solicitation. It is the responsibility of bidders to check the State Purchasing Bureau website for all addenda or amendments.
Section Reference
RFP/ITB
Page Number
| 1. |
| General Question |
| N/A |
| Has the current contract gone full term? |
| There is no current contract in place. |
| 2. |
| General Question |
| N/A |
| Have all options to extend the current contract been exercised? |
| There is no current contract in place. |
| 3. |
| General Question |
| N/A |
| Who is the incumbent, and how long has the incumbent been providing the requested services? |
There is no current contract in place.
| 4. |
| General Question |
| N/A |
| To what extent will the location of the bidder’s proposed location or headquarters have a bearing on any award? |
| None. |
| 5. |
| General Question |
| N/A |
| How are fees currently being billed by any incumbent(s), by category, and at what rates? |
| There is no current contract in place. |
6.
| General Question |
| N/A |
| What estimated or actual dollars were paid last year, last month, or last quarter to any incumbent(s)? |
| There is no current contract in place. |
| 7. |
| General Question |
| N/A |
| To how many vendors are you seeking to award a contract? |
| Three (3) |
| 8. |
| General Question |
| N/A |
| Can you please provide a greater description of the specific kind of receivables to be placed for collection? |
| The receivables will be delinquent tax balances for all types of tax categories. |
| 9. |
| General Question |
| N/A |
| To what extent are these accounts owed by private consumers versus commercial businesses? |
| They are individual income tax accounts as well as business tax accounts. The business tax accounts could owe on several different tax categories. |
| 10. |
| General Questions |
| N/A |
| Will accounts be primary placements, not having been serviced by any other outside collection agency, and/or will you also be referring secondary placements? If so, should bidders provide proposed fees for secondary placements also? |
| There will be multiple vendors. There will be primary, secondary, and tertiary placements. Yes, if the fees are different based on placement, then provide the costs separately. |
| 11. |
| General Question |
| N/A |
| What is the total dollar value of accounts available for placement now by category, including any backlog? |
| The total dollar value of accounts is $25,000,000.00. |
| 12. |
| General Question |
| N/A |
| What is the total number of accounts available for placement now by category, including any backlog? |
The total number of accounts will be 6000. The accounts are split 92% Individual Income Tax Accounts and 8% Business Taxes.
| 13. |
| General Question |
| N/A |
| What is the average balance of accounts by category? |
| The average balance for Individual Income Tax is $4,000. The average balance for business taxes is $19,000. |
| 14. |
| General Question |
| N/A |
| What is the average age of accounts at placement (at time of award and/or on a going-forward basis), by category? |
The average age of accounts for placement after contract is awarded is 9 years for all tax categories. The law requires the account to be at least 6 months old.
| 15. |
| General Question |
| N/A |
| What is the monthly or quarterly number of accounts expected to be placed with the vendor(s) by category? |
| The monthly number of accounts to be placed with the vendor will vary but will be at least 200 accounts a month. |
| 16. |
| General Question |
| N/A |
| What is the monthly or quarterly dollar value of accounts expected to be placed with the vendor(s) by category? |
| The average dollar value will depend on the accounts referred. |
| 17. |
| General Question |
| N/A |
| What has been the historical rate of return or liquidation rate provided by any incumbent(s), and/or what is anticipated or expected as a result of this procurement? |
| There is no current contract in place to provide incumbent vendor. DOR cannot provide an anticipated or expected return or liquidation rate at this time. |
| 18. |
| General Question |
| N/A |
| What billing servicer do you utilize? |
| All billing is done in house. |
| 19. |
| General Question |
| N/A |
| Have all cases been fully adjudicated by the time of placement? |
| All balances have been established in accordance with Nebraska Law and have a lien filed with the Secretary of State’s office. |
| 20. |
| General Question |
| N/A |
| If applicable, will accounts held by any incumbent(s) or any backlog be moved to any new vendor(s) as a one-time placement at contract start up? |
| There is no current contract in place. |
| 21. |
| General Question |
| N/A |
| What is your case management/accounting software system of record? |
| For accounting, DOR uses the enterprise wide Oracle JD Edwards E1. For case management, it is in an in-house built system. |
| 22. |
| General Question |
| N/A |
| Who is your electronic payment/credit card processing vendor? |
| ACI Payments, Inc. |
| 23. |
| General Question |
| N/A |
| Can you please indicate what inbound and outbound contact methods, beyond phone calls or letters (such as email and text), would be permitted by the scope of work? |
| Encrypted email is permitted once the identity of the taxpayer is verified through phone or in person contact. No text messages will be allowed. |
| 24. |
| General Question |
| N/A |
| Please reconfirm the due date for this procurement by providing it in response to answers to questions. |
| All proposals are due December 19, 2025. |
| 25. |
| General Question |
| N/A |
| If there was a previous solicitation for these services, what was its title, number, release date, and due date? |
| There has not been a vendor or current solicitation for these types of services. |
| 26. |
| General Question |
| N/A |
| Why has this bid been released at this time? |
| N/A |
| 27. |
| General Question |
| N/A |
| Can you please provide greater explanation of your expectations related to any required subcontracting to minority-owned, women-owned, or other types or categories of small or disadvantaged businesses? For example, what is required with the proposal, and what is required to comply during the term of the contract? |
| There are no such expectations. |
| 28. |
| General Question |
| N/A |
| Are bidders permitted to deviate in any way from any manner of quoting fees you may be expecting? For example, if there is a pricing page in the RFP, can bidders submit an alternate fee structure? If there is no pricing page in the RFP, do you have any preference for how bidders should quote fees or can bidders create their own pricing categories? |
Yes, but Neb. Rev. Stat. § 77-377.02 specifically states that the payment of fees shall not exceed 50% of the total amount of delinquent taxes, penalties, and interest collected.
| 29. |
| General Question |
| N/A |
| Please describe your level of satisfaction with your current or recent vendor(s) for the same purchasing activity, if applicable. |
| There is no current contract in place. |
| 30. |
| FINANCIAL STATEMENTS |
| Pg. 38 |
| Question: We consider our financial statements to be confidential, proprietary, trade secrets. Would the State permit us to upload our financials to a third-party secure website for the State’s authorized reviewers to access and review this information? |
Yes, once DOR’s IT security can verify the source of the link and ensure access is acceptable.
| 31. |
| Next Steps After Unfavorable Ruling |
| Pg. 36 |
| Please provide additional explanation relating to what DOR seeks or requires relating to unfavorable ruling scenarios? In what jurisdiction/arena does DOR anticipate vendor will be involved in proceedings that may possibly result in rulings, favorable or unfavorable? What ruling(s) are to be considered in responding to the “Will this be appealed?” inquiry. |
DOR is requesting to know what the process would be in situations where the Collection Agency seeks a judgement in the non-Nebraska jurisdiction, and the judgement is not granted. Will the Collection Agency appeal this decision?
33.
| 36-37 |
| Is it accurate to conclude that this RFP content is intended to require vendor to report results under each individual category once collection efforts are commenced and accounts are being collected? Or does DOR request some form of information to be supplied in response to the RFP within the vendor response and proposal? |
| Yes, it is intended that these types of reports and information will be provided once the contract is in place. The response should indicate if this information can be provided. |
| 34. |
| Summary of Bidder’s Proposed Personnel/Management |
| Pg. 40 |
| Does DOR simply seek listing of the management team members who will work on the DOR project (and not every supporting team member)? RFP requests resumes that include at least 3 references who can attest to competence and skill level of the individual. Does DOR truly intend to request/require “personal” references for each individual? Or is it sufficient to DOR to receive references from clients who can speak to the overall competence and skill level of the overall vendor and/or management team? |
| It sufficient for DOR to receive references from clients who can speak to the overall competence and skill level of the overall vendor and/or management team. |
| 35. |
| Subcontractors |
| Page 40 |
| For collection agencies potentially subcontracting legal work to attorneys, must name/address/telephone number be provided for all attorneys in all states and jurisdictions where legal work may be pursued? |
| Yes. |
36.
| General Question |
| N/A |
| What is the estimated size of the existing portfolio (the backlog) in terms of both the number of delinquent taxpayer accounts and the total dollar amount outstanding? What is the average balance owed per taxpayer/account? |
The initial estimated size of the portfolio to be sent over is $25,000,000 and about 6,000 accounts. The average is around $4,000 per account.
| 37. |
| General question |
| N/A |
| What is the estimated breakdown (percentage and/or account volume) of the existing portfolio: - Individual income tax vs. Business tax - In-state taxpayers vs Out-of-State taxpayers - Filed tax returns vs Estimated tax returns - Accounts with liens filed vs accounts without liens filed - Accounts with Nebraska Court judgment obtained vs Accounts without Nebraska Court judgment obtained |
| 80% will be individual income tax accounts. They will mostly be out-of-state accounts but could be in-state accounts with assets located outside Nebraska. All accounts will have Nebraska State Tax Lien filed with our Secretary of State. They will not have any Nebraska court judgements. |
| 38. |
| General Question |
| N/A |
| What is the age of the oldest accounts in the portfolio that you intend to refer for collection efforts? |
| 15 years |
| 39. |
| General question |
| N/A |
| What is the estimated volume of accounts and dollars outstanding that become delinquent and eligible for referral going forward (monthly and/or annually)? |
| 200 accounts per month, minimum. |
| 40. |
| General question |
| N/A |
| It appears litigation/legal services are anticipated and expected as services to be provided. Does DOR allow (and/or desire) proposals that provide one percentage fee for non-legal collection efforts and a separate percentage fee for litigation/legal collection efforts? Alternatively, does DOR prefer a single blended fee that includes all services for a singular fee structure rate? |
DOR prefers a single blended fee that includes all services for a singular fee structure rate.
| 41. |
| System Overview |
| Pg. 24 |
| RFP states that after demands for payment “the Vendor(s) will seek to obtain a judgment within the jurisdiction of the responsible party for the debt to begin forced collections of the delinquent taxes.” - Does DOR expect every account – regardless of dollar threshold or taxpayer circumstance – to be pursued to court judgment? - Will DOR authorize pursuit of original lawsuits/petitions to obtain court judgment in all other 49 states? - Under Nebraska law, is the State of Nebraska lien considered the equivalent of a court judgment to allow pursuit of legal remedies through court proceedings? Please provide any statutory reference in support of this proposition. - Does DOR have processes in place to routinely obtain court judgments against delinquent taxpayers within the State of Nebraska? And is this court judgment remedy routinely pursued? |
DOR does not expect that every account will be pursued to court judgment. DOR will employ thresholds when evaluating which accounts to assign and which actions DOR seeks to be taken. Under Nebraska law, a perfected State of Nebraska lien is not the equivalent of a court judgment. Compare 316 Neb. Admin. Code, Ch. 36, §§006 and 007. For example, the perfected state tax liens cannot be registered in other states for enforcement actions while a Nebraska court judgment could be. However, perfected state tax liens do allow DOR to take its most common enforcement actions such as garnishment of wage, levying against financial accounts, and filing claims in bankruptcy and probate actions. DOR does not have processes in place currently to routinely obtain court judgments against delinquent taxpayers within Nebraska as it has been largely unnecessary due to the collection actions it can take against a perfected state tax lien. No, court judgment remedies are not routinely pursued.
| 42. |
| Conflict of Interest |
| Pg. 28 |
| Please describe the “conflict of interest” scenario that DOR wishes to be explained/disclosed in this RFP question. |
| DOR is seeking to understand how the Collection Agency plans to handle Conflict Of Interest with staff working accounts, or possible accounts related to the Collection Agency. |
| Penalty for Late Return |
| Page 29 |
| Please provide additional information relating to this penalty – including the anticipated process by which an account is requested to be returned as well as the nature of the penalty. What must be “returned” to DOR to avoid assessment of a penalty? Under what scenario will DOR conclude that an account is returned late? - |
This may be disregarded.
| 43. |
| DOR and Additional Cost |
| Page 29 |
| Will DOR pay/reimburse all cost of mandatory court filing fees/costs (upon approval prior to filings)? If yes, are court costs to be invoiced by vendor to DOR as costs are incurred? |
| No, they should be included in the vendors’ estimated bids. That is to say, the portion of the amount collected by the Collection Agencies which will be retained by the Collection Agencies prior to remitting the funds to DOR. |
| 44. |
| Customer Satisfaction Surveys |
| Page 29 |
| Please describe what DOR requires and the purpose for the survey. Who is the “customer” being surveyed? |
| Taxpayers after phone interactions with Collection Agency Staff. |
| 45. |
| Glossary of Terms |
| TOC page v - “Full Service Collection Agency”: |
| “Full Service Collection Agency”: Collection agency does not have a lawyer employed in-house, but there are lists of lawyers we can choose from to obtain legal services on our behalf. If we are able to identify and contract with various lawyers to complete the required legal actions, is collection agency sufficiently qualified to contract under this RFP and provide legal services? |
| Please refer to the definitions section for what qualifies as a subcontractor. |
| 46. |
| Time Schedule for Accounts |
| Page 24 - |
| “Bidder shall provide time schedule for collection of accounts provided by DOR.” Does DOR seek a timeline required for implementation prior to ability to commence collection activity? Or does DOR seek an explanation of the collection process once an account is referred by DOR to vendor. |
| DOR is seeking an explanation of the collection process once an account is referred by DOR to the vendor. |
| Electronic Solicitation Opening - |
| Page 2 |
| The RFP appears to include a “Join the meeting” link for TEAMS. Must all proposers attend this TEAMS meeting? |
| No, it is not required that all proposers attend. |
| 47. |
| Current Business Practices - |
| Page 24 - |
| RFP states that “Balances referred to collection agency have had all internal collection efforts exhausted.” Will every account referred by DOR to collection agency have a valid and effective lien filed in the State of Nebraska, and will all details relating to the lien(s) be transmitted by DOR to collection agency as accounts are referred? When a lien is filed in the State of Nebraska, how long is the lien valid and enforceable? Can a lien be extended beyond the original expiration date, and if so does DOR have a system in place that automatically extends the lien? If extended, how long is the extended lien valid and enforceable following extension? Does DOR pursue levy/garnishment through a court proceeding, or is the levy/garnishment process pursued through administrative process? Please provide reference to appropriate law/regulation that identifies and explains the DOR levy/garnishment process. |
Every account will have a lien filed with the Nebraska Secretary of State’s office. The lien is good for 10 years from the date filed, there is no limitation on the number of times it can be extended for additional 10 year periods. Neb. Rev. Stat. § 77-3904. Levy/garnishments are currently pursed through an administrative process. (Neb. Rev. Stat. §§ 25-1558, 77-3906, and 77-3910.October 26, 2014.) and Regulation title 316, Chapter 36-008.
| 48. |
| System Overview |
| Pages 24-37 |
| RFP contains numerous boxes/tables that appear to request information from proposers. Each box contains a “Yes”, “No” and “No & Provide Alternative” box as well as a box with DOR-completed commentary/instruction, followed by a “Notes/Comments” area. - Please describe the requested response in the “Yes”, “No” and “No & Provide Alternative” boxes. What information is DOR seeking as appropriate response within these 3 boxes that appear to offer 3 choices. - Is it accurate that DOR seeks narrative response to each question under the “Notes/Comments” section within each box? |
DOR is seeking to know if this is something the Agency can do and to provide information about how these will handled.
| 49. |
| Financial Statements - |
| Page 30 - |
| RFP requests information in this section, as well as more fully on RFP Page 38-Financial Statements. How should any conflict between RFP Page 30 and RFP Page 38 content be interpreted? Will DOR remove the content from Page 30 and allow/require response to Page 38 content? Will DOR consider and treat all financial information as confidential and not subject to public disclosure? - - |
| Yes. |
| Garnishments - |
| Page 31 |
| Please provide statutory reference or DOR policy authorizing 50% of disposable income. |
| (Neb. Rev. Stat. §§ 25-1558, 77-3906, and 77-3910.October 26, 2014.) and Regulation title 316, Chapter 36-008. |
| Password Support |
| Page 34 - |
| Please provide additional explanation relating to what DOR seeks or requires relating to password support. |
| This is in relation to any system that is provided by the vendor for DOR to log into. |
| Levels of Requesting Access |
| Page 35 |
| Please provide additional explanation relating to what DOR seeks or requires relating to access to referred accounts. |
| This is in relation to any system that is provided by the vendor for DOR to log into. |
| 50. |
| Ticket Systems |
| Page 35 |
| Please provide additional explanation relating to what DOR seeks or requires relating to “ticket systems.” |
| This request is intended to provide DOR insight into the systems by which vendors will log, track, and resolve IT or other issues DOR may experience when interacting with vendors’ materials. |
| 51. |
| General Question |
| N/A |
| There is an Intent to Attend Solicitation Conference page as part of the Contractual Agreement Form. It states " The Intent to Attend Solicitation Conference" form should be uploaded using the ShareFile link provided in the Schedule of Events, Section I.C. There is no Solicitation Conference listed in the Schedule of Events. |
There will be no Solicitation Conference.
| 52. |
| Project Requirements |
| #7. |
| Standardized Letters and/or Notices request sample letters. Where should these be included in the response? |
They can be attachments.
| 53. |
| Project Requirements |
| #14 |
| Project Requirements #14. Is this missing a box similar to the other questions in this section? |
A response similar to the others is requested.
| 54. |
| D. Technical Requirements, |
| #5: |
| Ticket Systems, Is the DOR requesting information on the Ticket System for the DOR or for taxpayers? |
This request is intended to provide DOR insight into the systems by which vendors will log, track, and resolve IT or other issues DOR may experience when interacting with vendors’ materials.
55.
There are unresolved comments from the DOR throughout the document. In the Project Description and Scope of Work, please see #2 and #14 from Kelly Rowlands. Will the penalties be added to #14?
The penalty response box can be disregarded.
| 56. |
| Deliverables and Due Dates |
| #7, |
| Please clarify the difference between internal and external complaints. |
External complaints are for when DOR receives complaints about the service provided by the vendor. Internal complaints are issues found during review of an account by DOR on service provided by the vendor.
| 57. |
| I. Summary of Corporate Experience |
For narrative project descriptions, what is the difference between b). Scheduled and Actual Completion dates and e). Originally Scheduled Completion Date and Actual Scheduled Completion Date?
This is in reference to the projects or implementations of prior contracts and the amount of timelines that were met within the project work.
| 58. |
| General RFP Question |
| Not Applicable |
| Please provide the expected volume of materials to be processed through legal collections. |
| The accounts referred to the Collection Agency will be accounts DOR is not able to collect and the expectation is that legal collections would often be a necessary building block to other collection actions. |
| 59. |
| General RFP Question |
| Not Applicable |
| The RFP notes the contract may not be exclusive, allowing other vendors to provide similar services. How will workload or accounts be allocated among multiple vendors if awarded? |
| The initial workload would be split up between the vendors. There may be specialties by the vendors taken into account when the accounts are divided. |
| 60. |
| General RFP Question |
| Not Applicable |
| Besides revenue recovery, what specific metrics/KPIs, if any, will the State use to monitor and evaluate vendor performance throughout the contract period? |
DOR will evaluate performance by including but not limited to recoveries, accounts closed, and customer service surveys or feedback.
| 61. |
| General RFP Question |
| Not Applicable |
| What are the minimum and maximum numbers of accounts the awarded vendor should expect to receive initially, and how are these volumes expected to change throughout the duration of the contract? |
| The total number of accounts will be 6000. The accounts are split 92% Individual Income Tax Accounts and 8% Business Taxes. |
The average balance for Individual Income Tax balances is $4,000. The average balance for business taxes is $19,000.
The average age of accounts for placement after contract is awarded is 9 years for all tax categories. The law requires the account to be at least 6 months old.
The monthly number of accounts to be placed with the vendor will vary but will be at least 200 accounts a month in total.
| 62. |
| General RFP Question |
| Not Applicable |
What are the expectations regarding reporting frequency, format, and content from the vendor to the State during contract execution?
This can be flexible but consistent and regular would be preferred.
| 63. |
| General RFP Question |
| Not Applicable |
| Please clarify whether the awarded agencies have the authority to decide which accounts are submitted for legal collection. |
| It is expected that Collection Agencies may often first need to establish judgments through legal collection in non-Nebraska jurisdictions where the assets of debtors are located before forced collection actions such as garnishments or levies can be taken. |
| 64. |
| General RFP Question |
| Not Applicable |
| Please provide a stratification of the balances and ages of the accounts expected to be placed for collection. |
| The total number of accounts will be 6000. The accounts are split 92% Individual Income Tax Accounts and 8% Business Taxes. |
The average balance for Individual Income Tax balances is $4,000. The average balance for business taxes is $19,000.
The average age of accounts for placement after contract is awarded is 9 years for all tax categories. The law requires the account to be at least 6 months old.
The monthly amount of accounts to be placed with the vendor will vary but will be at least 200 accounts a month in total.
| 65. |
| General RFP Question |
| Not Applicable |
| Please confirm whether agencies will receive regular files to reconcile balances for accounts that have been placed. |
| Yes, this can be arranged. |
| 66. |
| General RFP Question |
| Not Applicable |
| Please provide the expected number of agencies anticipated to be awarded under this contract. |
| Three (3) |
| 67. |
| General RFP Question |
| Not Applicable |
| If the DOR approves a settlement offer, will the agencies be responsible to recover the agreed upon amount and invoice the recoveries? |
| No, the approved settlement amount will be collected by DOR. |
| 68. |
| General RFP Question |
| Not Applicable |
| Can email and text be used as communication |
methods?
DOR would approve phone calls, letters and secure email once the taxpayer is verified. No text messaging will be approved.
| 69. |
| General RFP Question |
| Not Applicable |
| Please provide the anticipated placement volumes, including the number and dollar value of each account type, average balances by category, and current liquidation rates. |
| The total number of accounts will be 6000. The accounts are split 92% Individual Income Tax Accounts and 8% Business Taxes. |
The average balance for Individual Income Tax balances is $4,000. The average balance for business taxes is $19,000.
The average age of accounts for placement after contract is awarded is 9 years for all tax categories. The law requires the account to be at least 6 months old.
The monthly amount of accounts to be placed with the vendor will vary but will be at least 200 accounts a month in total.
| 70. |
| III. Vendor Duties / Section A |
| Page 16 |
| The use of vendors for services such as skip tracing and letter services is customary in the collection industry. For the purposes of this RFP, does the State deem these types of service |
providers as sub-contractors?
Yes.
| 71. |
| V. Project Description and Scope of Work / Question B9 |
| Page 28 |
| Please clarify whether agencies may request a review or exception for accounts that are subject to recall but have a pending payment or a documented promise to pay. |
| Yes, there will be discussion between DOR and awarded vendors regarding accounts subject to recall in such scenarios. |
| 72. |
| V. Project Description and Scope of Work / Question B12 |
| Page 28 |
| Please describe the guidelines or criteria used to determine which debts are referred to vendors. Specifically, since bidders cannot decline referred accounts, will the State refer all past-due balances, or will it apply minimum balance thresholds or other referral criteria instead? |
| DOR will not send all debt to the vendors, there will be criteria including but not limited to minimum balance threshold, location of assets, and necessity to secure assets in a different jurisdiction. |
| 73. |
| V. Project Description and Scope of Work / Question B13 |
| Page 28 |
| Please provide details on how vendor performance will be measured and used to determine the volume or frequency of future account referrals. Specifically, what performance metrics or evaluation criteria will be used to guide account assignments? |
| DOR will evaluate performance by, including but not limited to, recoveries, accounts closed, and customer service surveys or feedback. |
| 74. |
| V. Project Description and Scope of Work / Question B13 |
| Page 28 |
| Please describe the guidelines for referring accounts to vendors. For example, since bidders may not decline referred debts, will the State refer all past-due balances, or will there be minimum balance thresholds or other parameters for referral? |
| DOR will not send all debt to the vendors, there will be criteria including but not limited to minimum balance threshold, location of assets, and necessity to secure assets in a different jurisdiction. |
| 75. |
| V. Project Description and Scope of Work / Question B13 |
| Page 28 |
If multiple vendors are awarded contracts, please describe the process the State will use to prevent a single taxpayer or account from being assigned to more than one agency at the same time.
DOR has an internally developed system to manage which agency will have which debt and will not allow a debt to be assigned to multiple agencies.
| 76. |
| V. Project Description and Scope of Work / Question B14 |
| Page 29 |
| Please specify the nature of the penalty for late return of accounts. Is it monetary, a reduction in future placements, or another form of sanction? Please describe how the penalty is determined so bidders can evaluate risk. |
| This question may be disregarded. |
| 77. |
| V. Project Description and Scope of Work / Question B15 |
| Page 29 |
| Please clarify whether the State intends to award a separate vendor to handle litigation activities. Specifically, when a primary collection agency has exhausted standard collection efforts after the typical 12-month placement period, will those accounts be recalled by the State for reassignment to a vendor specializing in legal or post-judgment collections? |
| DOR intends to award to vendors that have internal legal teams to handle the necessary legal proceedings. |
| 78. |
| V. Project Description and Scope of Work / Question B16 |
| Page 29 |
| Settlement authority can be an effective collection tool. Will the State please clarify whether it would consider implementing structured guidelines or an approval process that allows agencies to submit compromise offers to DOR for review and approval prior to acceptance and posting of payment? |
| DOR will not consider implementing structured guidelines but would consider an approval process that allows the agencies to submit offers to DOR. |
| 79. |
| V. Project Description and Scope of Work / Question B18 |
| Page 29 |
| Please confirm that collection activities should not commence until the 10th day following placement, to prevent duplication of effort and avoid unnecessary costs to the agency during the initial non-compensable period. |
| Yes. That is acceptable. |
| 80. |
| V. Project Description and Scope of Work / Question B19 |
| Pages 29-30 |
| Please specify the anticipated method, format, and frequency for conducting customer surveys, as these factors directly affect deployment and cost. If such information is not yet available, will the State agree to allow price renegotiation once requirements are defined? |
| This is not yet available. Yes, DOR will allow if necessary any renegotiation once the requirements are defined. |
| 81. |
| V. Project Description and Scope of Work / Question B20 |
| Page 30 |
| Please specify what additional documentation, beyond financial statements and business history, is required for disclosures related to bankruptcies, litigation, buyouts, IPOs, and takeovers. |
| Provide adequate detailed information as it relates to any of the aforementioned occurrences. |
| 82. |
| V. Project Description and Scope of Work / Question B25 |
| Page 31 |
| Please define “disposable income” as it applies to the 50% garnishment requirement. |
| Neb. Rev. Stat. § 25-1558(4)(b) defines disposable earnings as that part of the earnings of any individual remaining after the deduction from those earnings of any amounts required by law to be withheld. |
| 83. |
| Section C. Scope of Work |
| Page 32 |
| Please confirm whether accounts placed in error or recalled within the initial 10-day window will be excluded from performance evaluation calculations. |
| Yes, the accounts will be excluded from metrics for performance of the vendor. |
| 84. |
| Section G. Provide Post Implementation Support |
| Page 34 |
| Please provide examples or a description of the anticipated IT support needs for DOR’s collection systems. |
| This request is intended to provide DOR insight into the systems by which vendors will log, track, and resolve IT or other issues DOR may experience when interacting with vendors’ materials. |
| 85. |
| Section G. Provide Post Implementation Support / Question 2 |
| Page 35 |
| Please define what is meant by “requesting access” to referred accounts. |
| This request is intended to provide DOR insight into the systems by which vendors will log, track, and resolve IT or other issues DOR may experience when interacting with vendors’ materials. |
Response Submission / Question 9d
| Please clarify whether the State seeks details on current ownership structure, including interests held by private individuals, private equity firms, or parent companies that are not U.S.-based. |
| DOR is not requesting this information. If it is relevant to the Bidder Identification and Information then it should be supplied. |
| 87. |
| General Question |
| N/A |
| Why is the RFP being released at this time? |
N/A
| 88. |
| General Question |
| N/A |
| Have the current contract(s) gone full-term? |
There is no current contract in place.
| 89. |
| General Question |
| N/A |
| Is this a new project? If so, what are the main goals and objectives? |
This is a new project. The goal is to obtain the services of a Collection Agency to help increase the collection of taxes legally due to the State of Nebraska.
| 90. |
| General Question |
| N/A |
| Do you have any training materials? |
No.
| 91. |
| General Question |
| N/A |
| What is the current fee schedule for the incumbent or prior contractor? |
There is no current contract in place. The fee schedule will be negotiated at time of contract.
| 92. |
| General Question |
| N/A |
| Who is the incumbent/prior contractor? |
There is no current contract in place.
| 93. |
| General Question |
| N/A |
| On a scale of 1-5, how satisfied are you with the current vendor? |
There is no current contract in place.
| 94. |
| General Question |
| N/A |
| What improvements would you like to see a new vendor bring to the table? |
DOR is only seeking bids for Collection Agency Services at this time.
| 95. |
| General Question |
| N/A |
| How much money was paid to the incumbent over the past year? |
There is no current contract in place.
| 96. |
| General Question |
| N/A |
| What are the incumbent’s rates? |
There is no current contract in place.
| 97. |
| General Question |
| N/A |
| What is one quality your current vendor excels at? What is an area for improvement? |
There is no current contract in place
| 98. |
| General Question |
| N/A |
| Does the State have any pain points you’d like to alleviate with a new vendor? |
There is no current contract in place.
| 99. |
| General Question |
| N/A |
| What is not essential to performing work under the scope of the contract, but would be a value add? |
DOR is only seeking bids for Collection Agency Services at this time.
| 100. |
| General Queston |
| N/A |
| Can agents work remotely? |
This will be subject to the agencies’ own internal policies and procedures as long as the confidentially of DOR information is secured and not compromised.
| 101. |
| General Question |
| N/A |
| Do you have a location preference for the winning bidder? If so, how is this factored into scoring? |
No.
| 102. |
| General Queston |
| N/A |
| How many vendors do you anticipate to award? |
Three (3)
| 103. |
| General Question |
| N/A |
| Does winning this contract guarantee business placement? |
Yes, if the contract is won there will be placement of accounts.
| 104. |
| General Question |
| N/A |
| If you intend to award the contract to multiple vendors, will vendors be competing for market share? How are the placement volumes determined? |
This will depend on the vendors chosen. The initial placements will be equally divided among the number of vendors selected. Future placement will be performance based.
| 105. |
| General Question |
| N/A |
| Is there any backlog to place with new vendors? If so, can you provide the approximate number of accounts and dollar value? |
Yes, the initial referrals on account will be the back log, around 6,000 accounts and approximately $25,000,000.
| 106. |
| General Question |
| N/A |
| What is the average estimated monthly placement size by number of accounts and dollar value of accounts? |
The monthly average of accounts referred will be 200. The dollar amount will vary but the average would be $4,000.
| 107. |
| General Question |
| N/A |
| Can you advise the total dollar value and number of accounts placed for collections within the past year, and among how many collection agencies these accounts were referred? |
There is not a current contract in place.
| 108. |
| General Question |
| N/A |
| How do you allocate placement volumes if intending to award multiple vendors? Are placement sizes evenly split, or performance based? |
The initial placement will depend. After the initial placement it would be performance based.
What is the liquidation rate by line of business after 180 days? 365 days?
This information is currently not tracked at DOR.
| 110. |
| General Question |
| N/A |
| After placement, how long are accounts typically held by the agency? |
DOR is anticipating placement being six (6) months before being moved to the next inline agency.
What percentage of accounts require litigation?
This is unknown but debts in states where a judgment needs to be established on an out of state lien prior to forced collections, garnishment or levy to occur it will be expected that this occurs.
What is the average liquidation/recovery rate by incumbents at the end of the placement period?
There is no current contract in place.
| 113. |
| General Question |
| N/A |
| What steps are taken during the internal collection process? |
DOR will pursue all internal collections avenues prior to referral to collection agency. This includes liens, levies, garnishments and contacts with taxpayers.
| 114. |
| General Questions |
| N/A |
| What is the average account balance? |
The average balance is $4,000.00.
| 115. |
| General Questions |
| N/A |
| What is expected forward flow (ongoing new placements)? |
200 accounts per month.
| 116. |
| General Queston |
| N/A |
| Could the State provide historical data on placements and collections? For example, how many accounts (and total dollar value) were placed with the incumbent last year, and what percentage of those dollars were recovered? |
There is no current contract in place.
| 117. |
| General Question |
| N/A |
| Will the State reimburse mandatory court fees or legal costs incurred (upon approval) as separate expenses? |
No, these should be factored into the estimated cost of bidders’ services. This is a contingency contract based on what is collected.
| 118. |
| General Question |
| N/A |
| Can the State advise of what responsibilities a contractor has with regard to legal actions? What are the expectations for lien filings/enforcements/etc? |
Debts in states where a judgment needs to be established on an out of state lien prior to forced collections garnishment or levy to occur it will be expected that this occurs.
| 119. |
| General Questions |
| N/A |
| Approximately how many total accounts are expected to be outsourced to vendors for legal action? |
It is expected that Collection Agencies may often first need to establish judgments through legal collection in non-Nebraska jurisdictions where the assets of debtors are located before forced collection actions such as garnishments or levies can be taken.
| 120. |
| General Questions |
| N/A |
| Of the total portfolio to be outsourced, approximately what is the percentage of accounts requiring legal work? |
It is expected that Collection Agencies may often first need to establish judgments through legal collection in non-Nebraska jurisdictions where the assets of debtors are located before forced collection actions such as garnishments or levies can be taken.
| III G |
| 17 |
| Is the collection fee able to be added on to the balance, or will it come out of the amount owed to the state? |
| No, they should be included in the vendors’ estimated bids. That is to say, the portion of the amount collected by the Collection Agencies which will be retained by the Collection Agencies prior to remitting the funds to DOR. |
| III G |
| 17 |
| Are convenience fees allowed for credit card payments? |
| Yes. |
| General Question |
| N/A |
| Will the Department allow text messages and emails to be sent to taxpayers? |
| Secure email is permitted once the identity of the taxpayer is verified through phone or in person contact. No text messages will be allowed. |
| Q |
| 6 |
| Can the Department provide the weights for the evaluation proposal criteria? |
| No, DOR will not provide this. |
| III G |
| 17 |
| Is there a current backlog of accounts that will be forwarded to the winner(s). If so, can you share the volume and age information? |
| Yes, there are initially 6,000 accounts, with a total value of $25,000,000 with an average of $4,900 per account. |
| III G |
| 17 |
| Is the Department open to separate pricing for aged backlog accounts, and forward flow accounts? |
| Yes. |
| A2 |
| 24 |
| Can the Department provide a target age of the date when accounts will be referred to the agency? |
| Neb. Rev. Stat. § 77-377.01 states that the liability is due and owing for a period longer than six months . Debts can be referred at any point after that. |
| A1 |
| 24 |
| Can the Department provide volume forward flow volume expectations: Number of accounts & Dollars. |
| The volume is anticipated to be about 200 accounts a month. |
| Pdf PG 10 |
| Will The Department be sending accounts with FTI in it, if so, will there be an indicator in the file to designate that? |
| No, DOR just wants to ensure the highest confidentially is followed. |
| How many accounts does the State anticipate placing with the awarded vendor on annual basis? |
| The current anticipated rate will be 200 accounts a month. |
| Have any of the accounts expected to be placed under this contract been previously assigned to another collection agency? If so, please provide details regarding prior placements. |
| Yes, but that was 15 years ago. There is no information available to provide. |
| Does the State currently utilize a collection agency for this type of work? If yes, please identify the current vendor. |
| No. |
| Can the required oral interview be conducted virtually, or is in-person attendance mandatory? |
| Yes, they can be conducted virtually. |
| Is the awarded vendor required to be registered to be or licensed with the State of Nebraska prior to contract execution? |
| It is the vendors responsibility to ensure they are licensed to engage in business in Nebraska. |
| Will the State allow the vendor to submit responses to the questions contained in Section V (Project Description and Scope of Work) as a separate attachment rather than within the main proposal document? |
| Yes. |
| What is the typical periods during which accounts are worked before the Department of Revenue considers collections efforts to be exhausted? |
| Neb. Rev. Stat. § 77-377.01 states that the debt has to be due and owing for longer than six months and for which the taxpayer has been mailed at least three notices requesting payment, and at least one notice shall include a statement that the matter of such taxpayer’s delinquency may be referred to a collection agency in the taxpayer’s home state. |
| Will placements occur weekly, monthly or on an as needed basis? |
| Monthly |
| What is the average dollar balance of accounts to be placed? |
| This will vary but in the initial placement the average is $4,000.00. |
| What file formats and transmission methods are required? |
| DOR’s preferred file format is .CSV and the transmission method would be SFTP. |
| Beyond customer service, ability and skill what additional performance metrics or KPI’s will the vendor be evaluated on? |
| DOR will evaluate performance by, including but not limited to, recoveries, accounts closed, and customer service surveys or feedback. |
| Will test files be provided before the agency go live? |
| Yes. |
| Are there historical recovery rates available from the prior placements? |
| No, there is no current contract in place. |
| 24 |
| What is the historical number of accounts that are assigned to the outside collection agency(ies) annually for the past 2 years? |
There is no current contract in place.
| 24 |
| What is the historical dollar amount of accounts that are assigned to the outside collection agency(ies) annually for the past 2 years? |
There is no current contract in place.
| 24 |
| What is the historical percentage of account placements are income taxes and what percent of the placements are business taxes? |
There is no current contract in place.
| 24 |
| What is the average balance of individual income taxes placed with the outside collection agency(ies)? |
There is no current contract in place.
| 24 |
| What is the average balance of business taxes that are placed with the outside agency(ies)? |
There is no current contract in place.
| 24 |
| How many contractors will be awarded? |
Three (3)
| 24 |
| If multiple contractors will be awarded contracts, what is the method that accounts will be split between the contractors? |
This will depend on the vendors chosen. The initial placements will be equally divided among the number of vendors selected. Future placement will be performance based.
| 24 |
| Will accounts previously worked by contracted collection agency(ies)s be recalled and placed with the new contractor as 2nd placements? |
There is no current contract in place.
| 24 |
| What is the historical percent recovered by the outside collection agency(ies) for the past 2 years: total amount placed / total dollars collected |
There is no current contract in place.
| 24 |
| Is separate approval required for each account for which the outside collection agency(ies) will seek to obtain a judgement within the jurisdiction of the responsible party for the debt? |
What is the historical number of accounts that the outside collection agency(ies) seek to obtain a judgement within the jurisdiction of the responsible party for the debt?
There is no current contract in place.
| 24 |
| Please identify all methods the outside collection agency(ies) may utilize in order to begin forced collections of the delinquent taxes. (wage garnishment; bank levy; property attachment, etc.) |
Collection agencies may use wage garnishments, bank levies, and property attachment etc.
| 24 |
| Is separate approval required for each account for which the outside collection agency(ies) will begin forced collections of the delinquent taxes? |
No.
| 2021 Cost Sheet.xls |
| Are we to use the line items on the Cost Proposal worksheet to itemize contingency fee rates for 1st Placements / 2nd placements / legal services / bank levies / wage garnishments, or do we fill out a separate sheet for each category? |
You may use line items within the Cost Proposal worksheet to itemize the fees.
2025 Cost Sheet.xls
What are current fee rate percentages earned by the current collection agency contractor(s)?
There is no current contract in place.
| 40 |
| What was the total fee amount earned by each contractor for the past 3 years? |
There is no current contract in place.
| V. Project Description and Scope of Work |
| 24 – 37 |
| Where in the Solicitation Response Submission should we include the Yes/No Tables beginning on pg.24? |
| Yes on page 24. |
| Solicitation Response Instructions: Sect. A – 9 –b. Financial Statements |
| 38 |
| Should the Financial statements/reports/statements be added at the end of the Proposal in an attachment(s)? Or insert in the Proposal in order as the RFP suggests? |
| They can be at the end. |
| Contractual Agreement |
| 41 |
| Not included in the Solicitation response? |
| It should be included. |
| Other |
| No Page # |
| Can you share any historical information on average account balances, age at placement, or typical monthly placement volumes? |
| There is no current contract in place. |
| Other |
| No Page # |
| Is there an incumbent? If so, could you share any historical collection rate data or relevant performance metrics? |
| There is no current contract in place. |
| Other |
| No Page # |
| What fees have been paid to the collection agency in the last 12 months? |
| There is no current contract in place. |
| Other |
| No Page # |
| What are the historical recovery rates? |
| There is no current contract in place. |
| Other |
| No Page # |
| What has prompted you to seek a new agency at this time? |
| There is no current contract in place. |
| Other |
| No Page # |
| What is the current agency’s commission fee? |
| There is no current contract in place. |
| Who are the DOR’s current collection vendors and how long has the DOR worked with each? |
| There is no current contract in place. |
| What are the current collection agencies’ contracted contingency fee rates? |
| There is no current contract in place. |
| How many collection agencies does the DOR intend to award through this procurement? |
| Three (3) |
| Are all accounts primary placements? Or will the DOR also be referring accounts worked previously by one or more collection agencies? |
| Initially all accounts will be a primary placement. Accounts can be referred to the secondary or tertiary placements if not resolved in the previous placement. |
| For the most recent 12-month period available, please provide the number and dollar value of accounts referred for external collections (broken down by primary, secondary, etc. if applicable). |
| There is no current contract in place. |
| Are bidders allowed to modify the Cost Sheet to propose separate contingency fees for first placements, second placements, litigation services, etc.? |
| Yes. |
| Will the DOR protect bidders’ financial documents as confidential material and prevent their disclosure in public information requests? |
| Yes. |
| Will a scan of an original ink signature be accepted? |
| Yes. |
| Section I, I. Solicitation Bond |
| RFP page 5 |
| This type of bond requirement is not typical for a contingency-based collections contract, where the collection agency assumes the operational and financial risk and the State incurs no cost until recoveries are made. Could the DOR clarify the rationale for including a bid bond in this RFP, and confirm whether this requirement is intended to apply as written? |
| Neb. Rev. Stat. § 77-377.03 requires a bond before DOR can enter into a contract for Collection Agency Services. |
| Section V., A., 1. Time Schedule of Accounts |
| RFP page 24 |
| Please expand on “time schedule.” If this question refers to the timeline of collection efforts, can the DOR clarify the maximum retention period for which collection agencies may work accounts before non-paying accounts must be closed and returned? |
| We are requesting that the Bidder provide us their proposed timeline for collections |
Section V., A., 2.
Frequency of Return Information RFP page 25
| Please define “return information.” |
| Nebraska incorporates the federal definition of “return information” found at 26 USC § 6103(b)(2) via Neb. Rev. Stat. § 77-2714. |
| Section V., A., 6. |
| RFP page 26 |
| Does the DOR bear the cost of all filing fees? |
| No, they are to be included in the percentage retained by the agency from monies recovered. |
Section V., B., 1. Understanding of 77- 377.02 Section V., A., 7.
Understanding the Billing Statement RFP page 26
| Is this question asking for our client billing process—specifically how we invoice the DOR for our contingency fee? |
| Yes, it is asking how DOR can expect to be billed for services and what will be shown on the invoices. |
Section V., B., 1. Understanding of 77- 377.02
| RFP page 26 |
| Does the DOR pass collection costs on to debtors? |
| No. |
Section V., B., 11 Notice on Recalling Accounts
| RFP page 28 |
| Please clarify “30-day notice for no reason.” |
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