Citywide Debt Collection Services (Re-Bid)

The City of Palm Bay, Florida is requesting proposals for citywide debt collection services covering outstanding utility bills and unpaid permit fees from the Utility and Building Departments, with proposals due October 6, 2026. This is a re-bid following rejection of all prior proposals due to document alterations.

The Utility Department scope is not detailed in the source materials. The Building Department scope involves collection of unpaid permit fees across three aging categories (60, 90, and 120 days). Approximately 406 primary-placement accounts totaling $30,150 and 249 secondary-placement accounts totaling $5,700 will transfer to the awardee upon contract execution. The City anticipates placing approximately 700 accounts annually. Bidders must respond with either flat-rate or percentage-based fees using the City's bid table format; alternative fee structures are not permitted. First notices must be mailed within 45 days of receiving the placement file. Remittance of collected funds occurs only after the debtor has paid the full account balance, not upon installment receipts. Approximately 90 percent of accounts are owed by commercial businesses rather than private consumers. The contractor recovers its fee directly from the debtor, calculated on the original balance owed to the City.

The contract term is three years from the date of award with an option to extend for two additional one-year periods at mutual agreement. Proposal prices remain firm for the initial 36-month period; price adjustments for years four and five are subject to written justification, City approval, and Consumer Price Index limitations. Historical context: the incumbent vendor RTR employed contingency rates of 12.5 percent (60-day), 14 percent (90-day), 16 percent (120-day), and 20 percent (secondary placements). In 2025, approximately 1,156 accounts valued at $78,699 were placed, with roughly 600 accounts resolved and $10,000 collected.

Insurance requirements include commercial general liability of $1 million per occurrence/$2 million aggregate, automobile liability of $1 million, and workers' compensation as required by Florida law. Bidders must provide professional references demonstrating experience collecting utility and permit-fee accounts, preferably from municipal or government entities of comparable size. Compliance requirements include E-Verify employment verification, human trafficking affidavit, non-collusion affidavit (notarized), drug-free workplace certification, and prohibitions on Discriminatory Vendor, Convicted Vendor, and Scrutinized Companies lists. Proposals remain irrevocable for 90 days following opening.