Statewide Collection Agency Services - UPDATED

The State of Tennessee, Department of General Services, is issuing a Request for Proposals for statewide collection agency services to manage receivables owed to state agencies and departments. The procurement seeks a qualified collection agency contractor to handle diverse account types including overpayments to terminated employees, state park receivables, returned checks, erroneous insurance benefits, non-payment of fines and fees, and medical provider receivables. The contractor must maintain a valid collection service license per Tennessee Code Ann. § 62-20-105, obtain American Collectors Association membership, and comply with all applicable federal and state laws, including HIPAA and data security requirements. The RFP was issued on February 18, 2026, with proposals due on March 26, 2026, at 2:00 p.m. central time; technical evaluations will be completed by April 9, 2026, with cost proposals opened on April 10, 2026, and a Notice of Intent to Award released on April 15, 2026, followed by a protest period ending April 22, 2026. The contract will become effective May 15, 2026, and extend for a 60-month term with potential renewals or extensions. Evaluation will be weighted as follows: 20 points for general qualifications and experience, 45 points for technical qualifications and approach, and 35 points for cost proposal. The contractor must maintain comprehensive insurance coverage including cyber liability, crime insurance, and professional liability insurance, and will be available to all Tennessee state agencies, local governments, higher education institutions, and certain nonprofit organizations.

The RFP does not specify any set-aside designations or restrictions limiting participation to disadvantaged enterprises or particular organizational types. No incumbent vendor or current contractor is identified in the available procurement documents. Compensation will be calculated as a Collection Agency Charge based on a percentage of monies collected and remitted to authorized users, with percentages potentially varying annually throughout the five-year contract term; the state makes no guarantees regarding collection volumes or referral volumes and reserves the right to perform all or part of the work itself. Historical data from Attachment 6-7 indicates that accounts receivable across eight state agencies totaled approximately $8.8 million in 2024 with 9,594 accounts, and collections across the five-year period from 2021 through 2025 totaled $264,594, providing prospective bidders with baseline performance metrics. Respondents must provide current bank references, credit references dated within three months, and a credit bureau report demonstrating financial stability and reliability. No minimum or estimated purchase amounts are specified in the procurement materials.