IFB CSLB-25-01 Debt Collection Services

The California Department of Consumer Affairs, Contractors State License Board (CSLB), issued Invitation for Bid (IFB) CSLB-25-01 to procure comprehensive debt collection services for the recovery of delinquent fees, fines, and cost recovery amounts owed to the State. The contractor shall provide full-service debt collection operations including skip-tracing, legal action filings for collecting delinquent civil penalties when attachable assets have been identified, credit reporting, and computerized account management across California. Key deliverables require the contractor to collect delinquent accounts in a timely manner, file legal actions when appropriate, and maintain all necessary systems for tracking and managing the debt collection portfolio. Contractors must be registered with the California Secretary of State, licensed to do business in California, and maintain a principal office within the State. The contractor must obtain and maintain general liability insurance of $1,000,000 per occurrence/$2,000,000 aggregate, automobile liability coverage of $1,000,000 combined single limit, and workers' compensation insurance, with the State named as additional insured. Critical deadlines include a final written questions deadline of March 11, 2026, responses to questions on March 13, 2026, bid submission deadline of March 24, 2026 at 3:00 PM, and public bid opening on March 25, 2026 at 10:00 AM. The anticipated contract start date is May 1, 2026, with a three-year term extending through April 30, 2029. Award will be made to the lowest responsive bid meeting all requirements, and the contractor shall comply with all applicable state and federal collection laws.

A 5% Small Business Enterprise (SBE) preference is available to certified small businesses or non-small businesses subcontracting at least 25% of the net bid price to certified small businesses, while Disabled Veteran Business Enterprise (DVBE) participation requirements are waived but voluntary participation is requested. Compensation is structured as a percentage of collected debt, with estimated outstanding CSLB debt of $3,000,000 and estimated litigation services of $300,000, though actual amounts are subject to change. The contractor bears all court and legal fees relating to debt collection and cannot charge the State until debt is collected. Bids may be submitted electronically or via sealed envelope to the Department of Consumer Affairs, Contracts Unit, Attention: Tacia Bates, 1625 N. Market Boulevard, Suite S-103, Sacramento, CA 95834. No incumbent vendors or existing contractors were identified in the solicitation documents, and no specific technology integration requirements were noted beyond the requirement for computerized account management systems.