RFP-+Collection+Services+v7.docx

STATE OF NORTH DAKOTA

Office of Management and Budget State Procurement Office 14th Floor Capitol Tower 600 E Boulevard Ave., Dept. 012 Bismarck, ND 58505 Phone: 701-328-2741 Fax: 701-328-1615

REQUEST FOR PROPOSAL (RFP)

RFP Title: Collection Services RFP Number: 110.7-22-035 Issued: June 30, 2022

TABLE OF CONTENTS

ATTACHMENTS

1. Collection Services Contract

2. Proposal Evaluation Form

3. Contract Bond

4. Service Provider or Vendor Acknowledgement of Secrecy Provisions

5. Participating Addendum

6. Cost Proposal Format

SECTION ONE – INSTRUCTIONS

1.1 Purpose of RFP

The State of North Dakota, acting through its Office of Management and Budget State Procurement Office, hereafter known as “State” or “purchasing agency” is soliciting proposals from licensed and qualified vendors to provide collection services for governmental entities in North Dakota. The services will include (1) collecting principal, interest from defaulted borrowers, (2) collecting delinquent North Dakota taxes from taxpayers who reside outside of North Dakota (collections for delinquent in-state taxpayers are handled by the State), and (3) where applicable, NSF fees, late fees, penalties and interest.

This will be a cooperative purchasing contract that will be made available to North Dakota State agencies and other governmental entities.

1.2 COOPERATIVE PURCHASING

The contract resulting from this solicitation is a cooperative purchasing contract established pursuant to North Dakota Century Code (NDCC) sections 54-44.4-13. The contract is made available to state entities, institutions under the jurisdiction of the State Board of Higher Education, other government entities (including counties, cities, townships, public primary and secondary educational entities, governmental boards and commissions), nonprofit entities established on behalf of public entities, tribal agencies, transportation providers under N.D.C.C. chapter 39-04.2, and the International Peace Garden. Participation by other governmental entities is not mandated or guaranteed; therefore, the estimated volume of this contract is not known.

1.3 PROCUREMENT OFFICER CONTACT INFORMATION

The Procurement Officer is the point of contact for this RFP. Offerors shall direct all communications regarding this RFP to the Procurement Officer. Please do not add the Procurement Officer to any marketing distribution lists

PROCUREMENT OFFICER: Chad Keech EMAIL: ckeech@nd.gov

PHONE: 701-328-2767

TTY Users call: 7-1-1

Engaging in unauthorized communication or seeking to obtain information about an open solicitation with any state employee or official other than the responsible Procurement Officer or designee is sufficient grounds for suspension or debarment. [N.D.A.C. § 4-12-05-04(7)]

1.4 DEFINITIONS

For the purposes of this RFP, the acronyms and defined terms are as follows:

1.5 RFP SCHEDULE

Deadline for submission of Questions and Objections

July 7, 2022 @ 12:00 PM CT

1.6 ASSISTANCE TO INDIVIDUALS WITH A DISABILITY

Contact the Procurement Officer, as soon as possible, if an individual with a disability needs assistance with the RFP, including any events in the RFP schedule, so reasonable accommodations can be made.

1.7 BIDDERS LIST AND SECRETARY OF STATE REGISTRATION REQUIREMENTS

Offerors must comply with requirements related for OMB Bidders List application and Secretary of State registration [N.D.C.C. § 54-44.4-09]. Bidders Lists are used to notify vendors when solicitations are issued on SPO Online.

Proposals will be accepted from Offerors that are not on the Bidders List. The successful Offeror must complete the Bidders List application process and comply with Secretary of State registration requirements within 60 calendar days from the date a notice of intent to award is issued. If the successful Offeror does not register within this time, its proposal may be rejected.

Bidders List and Secretary of State Information

1. Secretary of State Registration and Online Bidder Registration instructions are available online at How to Bid | Office of Management and Budget, North Dakota.

2. Offeror should check the Bidders List to determine if Offeror is already registered.

3. An Offeror that needs to complete the registration process shall:

a. Register with the Secretary of State (fees apply) and obtain a “System ID” number.

b. Complete the On-line Bidder Registration including selecting commodity codes. Notices related to this RFP will be sent to the Bidders List for the needed commodity or service and other known potential Offerors. The commodity codes used for this solicitation are: Insert all applicable 5-digit commodity codes

4. The successful Offeror may be required to register as a new supplier to receive payment from the STATE. New vendors (suppliers and individuals) looking to receive payment from the STATE should use the online Supplier Registration.

1.8 STATE PROCUREMENT WEBSITE (SPO ONLINE)

This solicitation has not been posted to the State Procurement website. The Procurement Officer will contact all vendors solicited regarding any amendments to this solicitation and award notices.

This RFP and any related amendments and notices will be posted on the North Dakota OMB website using SPO Online. Offerors are responsible for checking this website to obtain all information and documents related to this RFP: https://apps.nd.gov/csd/spo/services/bidder/main.htm Select “Recent Solicitations”. Recent Solicitations are listed by close date.

Notices related to this RFP will be sent to the Bidders List for the needed commodity or service and other known potential Offerors.

Offerors not having completed the Bidders List registration may request to receive notices related to this RFP by contacting the Procurement Officer in writing with the following information: RFP title, business name, contact person, mailing address, telephone number, and email address.

1.9 AMENDMENTS TO THE RFP

If an amendment to this RFP is issued, it will be provided to all Offerors on the Bidders List for the solicitation and to those prospective Offerors who have contacted the Procurement Officer to receive notices related to the RFP. An Offeror shall include in its proposal any required acknowledgements of amendments to the RFP.

1.10 DEADLINE FOR QUESTIONS AND OBJECTIONS

Offerors should carefully review the RFP including all Attachments. Offerors may ask questions to obtain clarification and request additional information, or object to material in the RFP. Questions and objections must be submitted to the Procurement Officer in writing by the deadline identified in the RFP Schedule. If no deadline is specified, questions or objections must be received at least seven days prior to the Solicitation Closing deadline. The Procurement Officer may elect to respond to questions received after the deadline.

Questions and objections should include a reference to the applicable RFP section or subsection. Email is the preferred method of submission with the RFP number and title cited in the email subject line.

Responses to questions will be distributed as a solicitation amendment unless the question can be answered by referring the Offeror to a specific section of the RFP.

1.11 OFFER HELD FIRM

Offerors must hold proposals firm for at least 180 days from the deadline for receipt of proposals (Solicitation Closing). The STATE may send a written request to all Offerors to hold their offer firm for a longer period of time.

1.12 OFFEROR RESPONSIBLE FOR COSTS

Offeror is responsible for all costs associated with the preparation, submittal, and evaluation of any proposal including any travel and per diem associated with demonstrations and presentations.

1.13 TAXES

The STATE is not responsible for and will not pay itemized local, state, or federal taxes. Purchases of tangible personal property made by a state government agency is exempt from sales tax. The state sales tax exemption number is E-2001, and certificates will be furnished upon requested by the purchasing agency. The contractor must provide a valid Vendor Tax Identification Number as a provision of the contract.

The purchasing agency will determine if services provided under this contract are 1099 reportable. The purchasing agency may require the contractor to submit an IRS Form W-9.

The state tax exemption number should not be used by contractors in the performance of a contract.

A contractor or service provider performing any contract, including service contracts, for the United States Government, State of North Dakota, counties, cities, school districts, park board or any other political subdivisions within North Dakota is not exempt from payment of sales or use tax on materials, tangible personal property, and supplies used or consumed in carrying out contracts. In these cases, the contractor is required to file returns and pay sales and use tax just as required for contracts with private parties. Contact the North Dakota Tax Department at 701.328.1246 or visit its website at http://www.tax.nd.gov./ for more information.

A contractor performing any contract, including a service contract, within North Dakota is also subject to the corporation income tax, individual income tax, and withholding tax reporting requirements, whether the contract is performed by a corporation, partnership, or other business entity, or as an employee of the contractor. In the case of employees performing the services in the state, the contractor is required to withhold state income tax from the employees' compensation and remit to the state as required by law. Contact the North Dakota Tax Department at 701.328.1248 or visit its website for more information.

1.14 F.O.B. POINT AND FREIGHT

All commodities purchased through this contract will be Free on Board (“F.O.B.”) final destination, freight prepaid. Unless specifically stated otherwise, all prices offered must include the delivery cost.

1.15 PROPOSAL RECEIPT DEADLINE – LATE PROPOSALS REJECTED

An Offeror is solely responsible for ensuring its proposal is received by the STATE prior to the Solicitation Closing deadline identified in the RFP schedule regardless of the method of submission. A solicitation amendment will be issued if this deadline is changed. An Offeror may contact the Procurement Officer to inquire whether its proposal has been received. Proposals delivered late will be rejected pursuant to N.D.A.C. § 4-12-08-13.

1.16 PROPOSAL OPENING

This is an informal Request for Proposal (RFP) process that does not require formal sealed proposals or a public opening. A public opening will not be held.

A public opening will not be held.

This is a formal sealed Request for Proposal (RFP) process. Proposals will be secured and held unopened until the Solicitation Closing deadline. Per N.D.A.C § 4-12-08-04, the openings may be made public at the discretion of the purchasing agency. If a public opening is held, only the names of Offerors that submitted proposals can be revealed at the opening, and each proposal will be opened in a manner to avoid disclosure of the contents to the competing Offerors.

1.17 AMENDMENT AND WITHDRAWAL OF PROPOSALS

Offeror may amend, supplement, or withdraw proposal prior to the Solicitation closing deadline. No changes will be accepted after the Solicitation closing deadline. After the Solicitation closing deadline, Offeror may make a written request to withdraw proposal and provide evidence that a substantial mistake has been made, and the STATE may permit withdrawal.

1.18 NEWS RELEASES

Offerors shall not make any news releases related to this RFP without prior approval of the STATE.

1.19 CONFLICT OF INTEREST

Under state laws and rules, a state employee or official shall not participate directly or indirectly in a procurement when the state employee or officials knows of a conflict of interest. Potential conflicts of interest include state employees or their immediate family members employed by the firm, seeking employment with the firm, or with a financial interest in the firm. Potential conflicts of interest will be addressed in accordance with N.D.A.C. § 4-12-04-04. [N.D.C.C. § 12.1-13-03 ]

Persons employed by the State of North Dakota, or within one year thereafter, may be prohibited from acquiring a pecuniary interest in a public contract or transaction. Offerors should review N.D.C.C. § 12.1-13-02 to ensure compliance and avoid such conflict(s) of interest.

1.20 ATTEMPT TO INFLUENCE PROHIBITED

Offerors must not give or offer to give anything to a state employee or official anything that might influence or appear to influence procurement decisions. Suspected attempt to influence will be handled in accordance with N.D.A.C. § 4-12-04-05.

1.21 COLLUSION PROHIBITED

Offerors must prepare proposals independently, without collusion. Suspected collusion will be handled in accordance with N.D.A.C § 4-12-04-06.

1.22 PROTEST AND APPEAL

An interested party may protest a solicitation pursuant to N.D.C.C. § 54-44.4-12 and N.D.A.C. § 4-12-14-01. When a solicitation contains a deadline for submission of questions and objections, protests of the solicitation will not be allowed if these faults have not been brought to the attention of the Procurement Officer before the specified deadline. If no deadline for questions is specified, protest based upon defects in the solicitation must be made at least seven calendar days before the deadline for receipt of proposals.

An Offeror that has submitted a response to a solicitation and is aggrieved may protest an award or notice of intent to award pursuant to N.D.C.C. § 54-44.4-12 and N.D.A.C. § 4-12-14-02. The protest must be submitted in writing to the Procurement Officer during the protest period, which is seven calendar days beginning the day after the notice of intent to award is issued.

The protestor may appeal the decision of the Procurement Officer to the Director of OMB or designee in writing within seven calendar days after receiving notice of the decision pursuant to N.D.C.C. § 54-44.4-12 and N.D.A.C. § 4-12-14-03.

SECTION TWO – BACKGROUND

2.1 BACKGROUND INFORMATION

The State has multiple agencies that use collection services. Previously each agency utilized the State Pool Contract 176, Collection Services which will expire on September 30, 2022. The State is seeking to establish a new State term contract to cover the needs for all State agencies. This contract will also be made available to other governmental entities and political subdivisions. The participation level is unknown at this time.

The North Dakota Department of Veterans Affairs (NDDVA) administers a Veterans Aid Loan Program. The NDDVA is overseen by a fifteen member board appointed by the Governor. The Administrative Committee on Veterans Affairs makes and promulgates rules and regulations for the Veterans Aid Loan Fund Program as Stated in North Dakota Century Code (N.D.C.C.) § 37-17-40. The Veterans Aid Fund is a permanent fund to be used solely for the purpose of making loans to veterans or their widow/widowers. The maximum loan amount is $5,000. The interest rate is 8% per annum and the time limit range is six months to 48 months.

The Office of State Tax Commissioner, hereafter known as “Tax Department” is authorized under N.D.C.C. § 57-01-13 to contract with any collection or credit agency for the purpose of collecting delinquent North Dakota sales, use, motor vehicle fuels, special fuels, importer for use, aviation fuel, motor vehicle excise, telecommunications carriers, income, or alcoholic beverage gross receipts taxes due from a taxpayer not residing or domiciled in this State.

North Dakota law, for purposes of this section, defines a delinquent tax as a tax liability that is due and owing for a period longer than six months and for which the taxpayer has been given at least three notices in writing requesting payment. The notices must be sent by regular mail to the taxpayer at the taxpayer's last-known mailing address. The third notice must be sent with a copy of an affidavit of mailing.

2.2 BUDGET

The Tax Department currently has approximately 4,600 accounts totaling $14.6 million assigned to third party collection agencies. During the past year, approximately 1000 new accounts were placed with the third party collection agencies, totaling approximately $1.5 million.

The data above is provided to give a general sense of the historical placement volume under the prior contract. There is no guarantee that future placement volume will be similar or that any certain volume of accounts will be placed in the future.

SECTION THREE – SCOPE OF WORK

3.1 SCOPE OF WORK

The Contractor shall provide collection services by (1) collecting principal, interest from defaulted borrowers, (2) collecting delinquent North Dakota taxes from taxpayers who reside outside of North Dakota (collections for delinquent in-State taxpayers are handled by the State), and (3) where applicable, NSF fees, late fees, penalties and interest.

3.2 Cooperative Purchasing and Participating Addendum

This contract is a cooperative purchasing contract established pursuant to North Dakota Century Code (NDCC) sections 54-44.4-13. This contract is made available to State entities, institutions under the jurisdiction of the State Board of Higher Education, other government entities (including counties, cities, townships, public primary and secondary educational entities, governmental boards and commissions), nonprofit entities established on behalf of public entities, tribal agencies, transportation providers under N.D.C.C chapter 39-04.2, and the International Peace Garden. Participation in this open-ended contract is not mandated; therefore, the estimated volume of this contract is not known.

A Participating Addendum (See Attachment 5) will be executed by each participating entity. The Participation Addendum is the contract between the Contractor and the participating entity. The Participation Addendum is subject to the terms and conditions of the State Contract, and it may also contain terms and conditions specific to that participating entity. The participating entity is solely responsible to the Contractor for payment of any services rendered. A copy of the executed Participating Addendum (PA) must be sent to the State Procurement Office Contract Administrator. This copy may be faxed or emailed. The Contract Administrator will verify that the government entity is eligible for cooperative purchasing.

3.3 Collection Strategy

The contractor will be required to meet and provide the following deliverables:

A. Collection Policy and Complaint Resolution Procedures

1. The policy of the State is to work with people in a courteous and respectful manner. Our expectation is that any collection agency with which it contracts shares these values. The Contractor will not use collection procedures that intimidate, harass, can be regarded as unethical, or which may adversely reflect on the State of North Dakota.

2. The Contractor will be required to assist the State in resolving complaints of harassment, intimidation, false or misleading representation or unnecessary communications filed by the debtor against the Contractor’s collection process. The Contractor shall notify the State by letter when a complaint is received against its collection practices. Upon receipt of a complaint, the Contractor shall suspend collection activity on the account in question until the issue is resolved. Should the complaint against the Contractor be justified, the Contractor shall remove the collector(s) referenced in the complaint from the contract and return the collection responsibility for the account to the State. No fee shall be paid for collection activity performed on this account. A justified complaint may also constitute grounds for termination of the contract by the State.

B. Collection Procedures

1. The Contractor must have strategies and tools to pursue collections.

2. The accounts available for assignment by the Tax Department are limited by law to taxpayers who reside or are domiciled outside the State of North Dakota. The Tax Department may perform some “upfront”, pre-legal collection action in delinquencies, including mailing of monthly Statements, collection letters, telephone contact and filing of tax liens. The collection or credit agency selected will promptly commence and continue to make collection efforts. If the collection or credit agency is a law firm, after performing a brief period of pre-legal collection efforts, that law firm will quickly determine whether legal remedies are necessary and feasible and move quickly toward those remedies.

3. The State will provide account information to the Contractor on each account, including name, social security number or Federal ID number, last known address and amount due. The Contractor shall locate, if necessary, and establish contact with the debtor.

4. The Contractor must contact the State before any legal action is initiated by the Contractor. Any attorney initiating legal action brought by the successful collection or credit agency on behalf of the State of North Dakota in furtherance of the duties described in this RFP and as agreed to by contract must be designated a Special Assistant Attorney General by the North Dakota Office of Attorney General, upon application by the State. The attorney(s) must agree to the terms and conditions for such appointment provided in N.D.C.C. § 54-12-08, and as may be promulgated by the Attorney General and contained in a Special Assistant Attorney General Appointment Agreement to be drafted by the Attorney General’s Office. Court costs, process service fees, fees for services provided by any attorney(s) initiating legal action brought by the collection or credit agency on behalf of the State of North Dakota in furtherance of the duties described in this RFP, must be incorporated into the fee arrangement negotiated between the successful collection or credit agency and the State and will not be paid in addition to that fee arrangement.

C. Payment Procedures

1. The Contractor shall obtain full payment of the balance due or establish a reasonable and affordable payment schedule with the debtor until full payment is collected. The Contractor must not accept any compromise settlement without prior consent from the State.

2. Upon the establishment of a payment schedule with the debtor, the Contractor shall set up accounts and controls for collection purposes. Whether the payment is made in full or on a scheduled basis, the Contractor shall collect cash or other acceptable means of funds transfer and issue receipts to the debtor for all payments. The Contractor shall not charge the debtor a fee to make a payment.

3. The Contractor must comply with the State laws relating to collection of delinquent taxes for the Tax Department.

a. Fees for services must be based on the amount of tax, penalty and interest actually collected. Under N.D.C.C. § 57-01-13(2)(a), the contract entered into between the Tax Department and the collection or credit agency must provide for the payment of fees for the services, reimbursements, or other remuneration not in excess of fifty percent of the amount of delinquent tax, penalty, and interest actually collected. Court costs, process service fees, and fees for services provided by any attorney(s) initiating a lawsuit brought by the collection or credit agency on behalf of the State of North Dakota in furtherance of the duties described in this RFP must be incorporated into the fee arrangement negotiated between the successful collection or credit agency and tax commissioner and will not be paid in addition to that fee arrangement. All funds collected by the collection or credit agency must be remitted to the tax commissioner monthly from the date of collection from a taxpayer. Fees for services will then be paid to the collection or credit agency as set forth in the contract and as provided under State law. A collection or credit agency entering into a contract with the tax commissioner for the collection of delinquent taxes pursuant to this section must agree that it is doing business in this State for the purposes of the North Dakota income tax and business and corporation privilege tax laws.

b. In any case where the Tax Department receives an offer in compromise pursuant to N.D.C.C. § 57-01-02(14), the Contractor shall suspend all collection efforts upon being notified by the Tax Department. If the Tax Department accepts the offer in compromise, the Contractor shall be entitled to a commission one half (1/2) of the standard contract rate.

c. In cases in which payment of an account is generated as a result of liens filed by the Tax Department, no commission shall be due to the Contractor unless, prior to settlement of payment, a judgment or transcript of judgment has been filed by the Contractor in the county where the real estate is located.

d. No commission shall be due to the Contractor on collections resulting from State or federal tax refund offsets.

4. Payments received by the Contractor are to be credited to the State’s designated bank accounts on a monthly basis. Monthly remittance to the State may be made by wire or ACH transfer and sent to the State’s designated bank account. The Contractor is authorized to make ACH credits only. ACH debits are not authorized.

5. The State will notify the Contractor of all direct payments. The Contractor will include direct payments on a monthly report to the State.

6. The Contractor must accept State payment as payment in full for services rendered. The State will make payments based on a negotiated payment schedule based off of the determined percentage of debt collected. Each billing must consist of an invoice and a monthly collection recap report. No payment will be made until the agency has approved the invoice. The State will not make any advanced payments before performance by the Contractor under this contract.

D. Closing Accounts

1. In situations where the Contractor has begun collection activity and is unable to collect the debt in full, such as the death or incarceration of the debtor, the Contractor shall cease activity and return the account to the State, accompanied by a detailed report to include identifying information and the reason for cessation of the collection activity.

2. In situations where the Contractor has an account that subsequently becomes the subject of a bankruptcy proceeding, the Contractor shall immediately cease collection activity on the account. All information received by the Contractor pertaining to an account’s bankruptcy proceedings shall be forwarded to the State. Notwithstanding any other provision in this RFP, or the contract entered into between the Offeror and the State, the Contractor will not receive any fee or other reimbursement for any payment made pursuant to a bankruptcy proceeding.

3. The Contractor must agree that if the State subsequently determines that a particular debt no longer exists, Contractor will honor that determination and cease collection activity on the account.

4. If the taxpayer upon whom the account is held once again resides in or becomes domiciled in North Dakota, the Contractor will, immediately upon notice, refer the account back to the State. No additional fees or charges shall be billed to or paid by the State to the Contractor after the account is returned to the State.

5. The Contractor shall notify the State when collection efforts are considered to be exhausted. The State shall retain the right to cancel or request the return of any account referred to the Contractor on which payments are not being paid or have not been paid.

6. Upon expiration/termination of the contract, all collection activity performed by the Contractor shall terminate and the entire collection account portfolio must be returned to the State within 15 days of the expiration/termination, unless an extension is approved by the participating entity.

E. Confidentiality

1. The Contractor must retain records that fully disclose the extent and nature of services provided for each debtor referred by the State.

2. Information furnished to the Contractor by the State is considered confidential in nature. The Contractor must ensure the confidentiality of State records and any other records related to the debtor, including, but not limited to; Federal Identification Numbers and Social Security Numbers.

While in the Contractor’s possession, the information shall be safeguarded and not released to the debtor or any other party without the prior consent of the State. Any unauthorized disclosure of the information constitutes unethical conduct and is grounds for termination of the contract.

3. The Tax Department is governed by strict confidentiality laws. The successful Contractor must sign confidentiality agreements for both the Tax Department and the Internal Revenue Service (Attachment 4). (see N.D.C.C. §§ 11-18-02(7), 57-01-14, 57-05-11, 57-35.3-12, 57-37.1-22, 57-38-57, 57-39.2-23, 57-40.2-13), the federal provisions are contained in sections 7213(a), 7213A and 7431 of the United States Internal Revenue Code [26 U.S.C. §§ 7213(a), 7213A, and 7431].

F. Reporting Capability The Contractor must provide detailed reports for each participating agency. Examples of reports that agencies may request are listed below. The actual reports required by each agency will be agreed upon between the Contractor and the agency in the participating addendum.

1. Monthly Collection Recap. A report with the monthly remittance of prior month collections (including direct payments to the State). The report must include for each file with reportable activity: name, State file number, Contractor file number, amount collected by Contractor (or State), date of payment, and current balance due.

2. Monthly Inventory Status Report. A status report for all current accounts to include the name, State file number, Contractor file number, current balance due, current status and/or detailed activity for that account in the previous month.

3. Quarterly Collection Recap. A quarterly report which will list each account with identifying information including, but not limited to, name, State file number, Contractor file number, payments received, and status of account.

4. Individual Status Report. A status report on individual accounts, upon request of State, which will include the following information: identifying information, payment history, collection costs, account balances, and collection history.

5. Account Update Report. A report to include changes to account information such as address changes, phone number changes and progression of legal actions to include copies of judgments when obtained.

6. Returned Accounts Report. A report on accounts the Contractor determines to be uncollectible. The account shall be returned to the State stating the reason why the account was deemed uncollectible, along with a record of contacts, collection activity taken on the account, and collection information gathered during the collection process.

7. Final Collection Report. A report on accounts where the balance due has been collected in full.

8. Annual Cumulative Report. A cumulative year-end summary for all accounts.

G. Pertinent Issues and Potential Problems The Contractor should identify any pertinent issues or potential problems that may impact the Contractor’s ability to accomplish the scope of work in this proposal.

3.4 Experience and Qualifications

A. Minimum Qualifications Offerors must have the following minimum qualifications in order to be considered for contract award:

The Offeror must have and keep current any professional licenses and permits required by federal, state, and local laws for performance of this contract Offerors that do not possess required licenses at the time proposals are due will be determined non-responsive and rejected.

B. Experience The Offeror must meet the following experience requirements to be considered for contract award. A proposal from the Offeror that does not meet minimum experience requirements will be rejected. Must be an established company regularly engaged in the business of debt collection for a period of five years within the last seven years.

C. Account Personal The Contractor shall designate a qualified individual as an Account Manager to manage the State of ND account and serve as a constant primary point of contact for the State. This individual shall have the following qualifications:

1. Bachelor’s degree in business, accounting, or related field

2. Five years of experience in debt collection services

D. Background Check Contractor must ensure adequate staffing of qualified personnel who have successfully completed background checks. Contractor must notify the State when Contractor personnel change. The State reserves the right to request changes in Contractor personnel.

If STATE, including the state agency entering into this Contract on behalf of the STATE, has the necessary authority under N.D.C.C. §12-60-24, STATE may require personnel that CONTRACTOR assigns to perform work under this Contract, including employees, contracted staff, subcontractors, or other individuals, to submit to a criminal history record check. STATE shall have the right to reject any individual CONTRACTOR assigns to perform work under this Contract if, in STATE’s sole discretion, it determines that the results of the criminal history record check make the individual unacceptable. CONTRACTOR agrees to be responsible for all costs associated with criminal history record checks carried out pursuant to this paragraph.

Forms and information regarding North Dakota Criminal History Record Checks are available on the following website: https://attorneygeneral.nd.gov/public-safety/criminal-history-records/requesting-criminal-history-record-check

3.5 Location of Work

All work is to be performed, completed, and managed at the Contractor’s location. No onsite performance is required. The State will not provide workspace for the Contractor.

The Contractor’s office may not be a home-based office, as security and confidentiality concerns cannot be adequately addressed in such a setting. The sole purpose of the office must be for conducting of business and no residential area may be attached.

3.6 State and Federal Requirements

A. Performance Bond North Dakota Century Code § 57-01-13(2)(c) States that before entering into a contract, the tax commissioner will require a bond from the collection or credit agency not in excess of ten thousand dollars, guaranteeing compliance with the terms of the contract.

A copy of a Contract Bond form is attached to this RFP as Attachment 3. This form or an equivalent will be used. The amount of the Performance Bond must be equal to ten thousand dollars.

If the Contractor fails to satisfactorily perform the contract, the bonding company that provided the Performance Bond will be required to pay the dollar amount of the bond to the State.

The actual Performance Bond must be obtained from the bonding company and provided to the State within 14 CALENDAR DAYS after the date of the Notice of Intent to Award unless the time is extended in writing by the State. An Offeror’s failure to provide the Performance Bond, within the required time, will cause the State to reject the proposal.

In lieu of a Performance Bond, a certified check or cashier’s check drawn on a federally insured bank, or other form of bid security acceptable to the State may be substituted. The amount of the surety deposit must be ten thousand dollars. Substitution of a surety deposit must be approved by the State prior to its submittal. An Offeror’s failure to provide the surety deposit, within the required time, will cause the State to reject the proposal.

B. Licensing and Permits At the time specified by the deadline for submission of proposals, the Offeror must have and keep current any professional licenses and permits required by federal, State, and local laws for performance of this contract. Offerors must be licensed and bonded with the North Dakota Department of Financial Institutions as outlined in North Dakota Century Code (N.D.C.C.) §13-05. For more information, Offerors can refer to http://www.nd.gov/dfi/forms/index.html. Offerors that do not possess required licenses at the time proposals are due will be determined non-responsive.

C. Fair Debt Collection Practices Act The Contractor shall follow the rules set forth in the Fair Debt Collection Practices Act (FDCPA). The Act creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act.

D. Telephone Consumer Protection Act of 1991 The Contract shall follow the rules set forth in The Telephone Consumer Protection Act (TCPA). The TCPA aims to restrict telephone solicitations and the use of automated telephone equipment. The Act restricts the use of automatic dialing systems, prerecorded voice messages, texts and fax machines. Per the TCPA, a prerecorded message must identify the business, individual or entity that is responsible for the call at the outset of the message.

SECTION FOUR – PROPOSAL INSTRUCTIONS

4.1 PROPOSAL PREPARATION

The STATE discourages overly lengthy and costly proposals. An Offeror must prepare its proposal using the prescribed proposal format and provide all the requested information; this will enable the proposal to be evaluated fairly and completely. If an Offeror submits more than one proposal, each proposal must be prepared in accordance with these instructions.

Each proposal will include a Technical Proposal and a Cost Proposal prepared in accordance with these instructions. The Technical Proposal and a Cost Proposal must be submitted as separate documents, clearly labeled with the name of the Offeror, and marked “Technical Proposal” and “Cost Proposal.” Costs must not be revealed in the Technical Proposal. Options may be discussed in the technical proposal, but all cost information must be in the Cost Proposal only. DO NOT submit documents that are embedded into proposal documents or that contain links to documents on an external website.

4.2 PROPOSAL SUBMISSION INSTRUCTIONS

UPLOAD RESPONSE THROUGH THE STATE PROCUREMENT ONLINE SYSTEM (SPO ONLINE):

Offeror must electronically submit proposals through the State Procurement Office Online system (SPO Online) by the Solicitation Closing deadline.

DO NOT WAIT UNTIL THE “LAST MINUTE” TO SUBMIT A RESPONSE. Recommend uploading response 24 hours prior to the Solicitation Closing deadline.

Offeror must begin the electronic submission process well in advance of the Solicitation Closing deadline to allow for transmission and resolution of any technical difficulties. Be advised that the STATE is not responsible for an Offeror’s failure to timely submit a proposal due to any technical difficulties. If you experience any technical difficulties contact the Procurement Officer or the State Procurement Office at infospo@nd.gov or 701.328.2740.

If documents are in the process of being uploaded when the Solicitation Closing deadline occurs, the upload process will stop. The attempted submission will not be uploaded successfully and is ineligible for consideration. The STATE takes no responsibility for electronic submissions that are captured, blocked, filtered, quarantined, or otherwise prevented from uploading by any anti-virus or other security software.

1. This solicitation is posted on SPO Online at: https://apps.nd.gov/csd/spo/services/bidder/main.htm

2. Select “Recent Solicitations” and find this solicitation. Solicitations are listed by close date.

3. Use “Upload Response” to upload a maximum of five (5), clearly labeled documents before the Solicitation Closing deadline provided in the RFP Schedule.

4. Offeror must upload their Technical Proposal and Cost Proposal in separate files.

5. The maximum file size allowed is 50mb per file.

6. There is a 50 character file name limitation for the document being uploaded.

7. There is 75 character limit in the TITLE field within SPO Online.

8. All SPO Online field entries must be alphanumeric. Dashes and underscores are allowed; however, the system DOES NOT accept other special characters such as apostrophe, & symbol, quotation marks, etc..

9. DO NOT submit documents that are embedded (zip files), movies, wmp, encrypted, or mp3 files.

10. Offeror will receive an email confirmation from infospo@nd.gov that the upload response was received including the “File Description” for the uploaded files. Review this email to ensure all files were successfully uploaded. If Offeror DOES NOT receive an email confirmation, the upload was NOT successful, and the files will need to be uploaded again. If Offeror does not receive an email confirmation after the reattempt, contact the Procurement Officer or the State Procurement Office at infospo@nd.gov or 701.328.2740.

Visit https://www.omb.nd.gov/sites/www/files/documents/doing-business-with-the-state/procurement/spo-electronic-response-external-job-aid.pdf for the SPO Electronic Response Job Aid which describes how to submit an electronic response.

4.3 PROPOSAL FORMAT

Prepare the Technical Proposal and Cost Proposal in accordance with these instructions.

Technical Proposal – Format the proposal with the following labeled sections:

Section 1 – Cover Letter Section 2 – RFP Amendments Section 3 – Scope of Work Strategy Section 4 – Experience and Qualifications Section 5 – Contract Provisions Section 6 – Open Records and Confidentiality

Cost Proposal – The Cost Proposal must be a separate document. Format the Cost Proposal following the RFP instructions.

Sections 1-5 should not exceed 150 pages. This page limit is inclusive of all attachments, appendices, or supporting materials. Proposals longer than 150 pages will be rejected. Section 6 will not count against the page limitation total.

4.4 TECHNICAL PROPOSAL

SECTION 1 – COVER LETTER

Proposals shall include a cover letter that includes the following:

1. The name of the Offeror, name of the person to contact regarding the proposal, email address, telephone number, and mailing address.

2. Offerors are instructed to review the “Conflict of Interest” provisions in RFP Section 1 “Instructions.” If the firm, its employees or subcontractors working on the contract have an apparent or actual conflict of interest, provide a statement disclosing the circumstances of the apparent or actual conflict of interest. Otherwise, provide a statement that your firm, employees and subcontractors do not have a conflict of interest.

3. The cover letter must be signed by an individual with authority to bind the Offeror. By signing the cover letter, an Offeror certifies that it complies with:

a. All the requirements, terms and conditions as set forth in this RFP.

b. The requirement that the Offeror’s proposal accurately describes the goods and services being offered to the STATE, and the proposal will be held firm for the period specified.

c. All local, state, and federal laws, rules, code laws, rules, code, regulation, and policies, including those relating to nondiscrimination, accessibility, civil rights, and equal employment.

d. The requirement that this proposal was prepared independently without collusion.

SECTION 2 – RFP AMENDMENTS

Provide signed copies of all Solicitation Amendments issued by the STATE that were required to be acknowledged by Offerors.

SECTION 3 –SCOPE OF WORK STRATEGY

Offeror must review the requirements and deliverables provided in RFP Section 3, Scope of Work.

1. Applicable Directives. The Offeror must identify any state and federal requirements that apply to the contract.

2. Strategy for Scope of Work Requirements. The Offeror must provide narrative statements to demonstrate their understanding of the scope of work requirements. Explain the proposed strategy to accomplish the scope of work, meet all requirements, and provide the deliverables described in RFP Section 3, Scope of Work, including:

A. Collection Policy and Complaint Resolution Procedures, items 1-2 B. Collection Procedures, items 1-4 C. Payment Procedures, items 1-6 D. Closing Accounts, items 1-6 E. Confidentiality, items 1-3 F. Reporting Capability, items 1-8 G. Pertinent Issues and Potential Problems

3. Value-Added Options. Offerors may include any optional services or goods that are not required by the STATE but are within the scope of work (e.g., an option for a higher level of service, equipment accessories, extended warranty options, etc.). Describe any value-added options being offered.

4. Location of Work. The proposal must respond to the STATE’s Location of Work instructions within the RFP Scope of Work. Describe where the work will be performed and any proposed travel.

5. State Furnished Property and Services. Provide a detailed breakdown of the Offeror’s expectations for STATE resources that will be needed for the project, including number of staff, qualifications, roles and responsibilities, and time requirements for the various phases of the project.

6. State and Federal Requirements. The Offeror must include the Letter of Commitment from a bonding company or a Statement that the Offeror intends to furnish a certified check or cashier’s bond.

SECTION 4 –EXPERIENCE AND QUALIFICATIONS

Mandatory Requirements. An Offeror must provide information to demonstrate meeting the Offeror Experience and Qualifications Requirement in RFP Section 3, Scope of Work, Experience and Qualifications.

Experience and Qualifications of the Firm Provide a brief history and describe the organization of the firm. Describe the number of years the Offeror has provided the type of work requested in this RFP. Describe specific experience of their firm in completing similar projects. Provide a description of the project, approximate time frame of the project, and contact information for the customer. Offerors may provide letters of reference from customers.

Experience and Qualifications of the Project Team Provide a narrative or organizational chart that describes the organization of the proposed project team. Provide information for key project team members, including:

1. Description of anticipated work they will perform and approximate estimated hours;

2. Resume or description of the relevant education, training, experience, skills and qualifications;

3. If the Offeror has vacant positions, identify the job description and minimum qualifications for staff members to be recruited;

4. Subcontractors. If an Offeror intends to use subcontractors, the Offeror must identify in the proposal the names of the subcontractors and the portions of the work the subcontractors will perform. Provide a statement that the Offeror will ensure that the subcontractor has or will obtain any required licenses and registrations, including registration with the North Dakota Secretary of State; and

5. Joint Venture. If submitting a proposal as a joint venture, provide narrative statements that describe the roles and responsibilities of each party to the joint vendor. If available, submit a copy of the joint venture agreement that identifies the parties involved and its rights and responsibilities.

References Provide three (3) reference letters from clients for whom similar work was completed. The reference letter must include the name of a contact person, address, email, and telephone number.