IFB Collection Services

Caltrans Division of Accounting is soliciting bids for a comprehensive collection services contract through Invitation for Bid (IFB) #81A0187, targeting the recovery of delinquent Accounts Receivable (AR). The four-year contract will commence on June 23, 2025, or upon Department of General Services approval, with the initial three years focused on placing new collection orders and the fourth year dedicated to completing collections on retained accounts. The successful contractor must provide experienced staff capable of conducting written communications with debtors, skip tracing, address verification, credit bureau reporting, settlement negotiations, court judgment procurement, and judgment enforcement. Bidders must demonstrate at least four years of collection experience, with either a minimum collection of $1,500,000 per calendar year or a 32% success rate. Proposals are due by 2:00 p.m. on May 8, 2025, with bid opening at 2:30 p.m. the same day. The contractor will be compensated through a commission rate on collected accounts, with interest collected split evenly between Caltrans and the contractor.

The procurement includes a 25% Small Business (SB) participation goal, though Disabled Veteran Business Enterprise (DVBE) participation is not mandatory, with a DVBE incentive available. Contractors must maintain collection agency licenses for all 50 states and employ a California-licensed attorney. Historical data indicates Caltrans has placed between 296-355 accounts monthly, with monthly placement values ranging from $1,340,000 to $1,765,000. While specific award value is not explicitly stated, the commission-based compensation structure suggests potential significant revenue for the successful bidder. The contract covers jurisdictions across California, including but not limited to counties such as Alameda, Los Angeles, San Diego, and numerous cities and census-designated places throughout the state. Contractors will need robust technological and legal infrastructure to effectively manage the widespread collection efforts across diverse California jurisdictions.