IFB 2209 Debt Collection Services

California's Department of Developmental Services (DDS) is soliciting bids under IFB 2209 for debt collection services for its Accounting and Fiscal Services Section (AFSS), with final written questions due November 5, 2026 at 3:00 p.m. and bids due November 19, 2026 at 3:00 p.m. A valid California debt collector license and a principal office in California are mandatory, which acts as a local-presence filter.

DDS waives its DVBE Participation Program requirements but offers an incentive of up to five percent applied to bid prices for DVBE participation. A five percent Small Business preference applies to certified SB/MB enterprises, and a five percent non-small business preference applies to firms committing at least 25 percent of the net bid price to California certified SB subcontractors.

The contractor must collect delinquent accounts receivable, including vendor audit accounts, employee payroll and travel advances, dishonored checks, judgments and settlements, and overpayments. Required capabilities include skip-tracing, automated dialing systems, computerized account management, and real-time database access to AFSS. The contractor collects 100 percent of funds from debtors, remits them to DDS, and invoices quarterly in arrears at the fee percentage in the cost worksheet. No charges accrue until accounts are collected. Required insurance includes commercial general liability of $1 million per occurrence and $2 million annual aggregate, plus workers' compensation.

The agreement runs January 1, 2027 through June 30, 2028, with a public bid opening on November 23, 2026 at 10:00 a.m. Bids are submitted by email to Jonathan.Louie@dds.ca.gov or by sealed mail to the DDS Contracts Unit. Award goes to the lowest responsive and responsible bidder, and protests are due within five working days of the State's intent-to-award notice.