Fiscal Management Section Debt Collection Service

The Department of California Highway Patrol (CHP) has issued Invitation for Bid (IFB) #25C071001 for Debt Collection Services, targeting the procurement of comprehensive debt recovery solutions for the CHP's Fiscal Management Section. The contract, scheduled to run from January 1, 2026, through December 31, 2029, seeks a debt collection contractor with a minimum of five years of experience in debt collection services who maintains a principal headquarters in California and possesses a valid debt collections license. Contractors will be responsible for skip-tracing, employment and income verification, and legal actions to collect delinquent fees, with all collected funds to be deposited directly to CHP. The bid submission deadline is October 16, 2025, at 3:15 P.M., with an immediate bid opening following the deadline. Evaluation criteria will likely include the contractor's proposed percentage rates for collecting non-legal and legal accounts, with the specific percentages to be determined by the bidder.

The solicitation includes provisions for small/micro business and Disabled Veteran Business Enterprise (DVBE) incentives, though the DVBE participation requirement has been waived for this specific contract. Bidders must comply with California Civil Rights Laws and provide comprehensive insurance coverage. The maximum agreement amount is set at $300,000, with the payment structure based on a percentage of collected funds. Contractors will be required to adhere to strict state regulations and demonstrate robust capabilities in debt recovery across various account types. The contract emphasizes full transparency, mandating that all collected funds be remitted in full to the CHP, with the successful contractor acting as a recovery agent focused on efficient and legal debt collection strategies.