STC debt collection services

The State of South Carolina is procuring a Statewide Term Contract (STC) for debt collection services to be utilized by public procurement units across the state. The solicitation seeks to establish a Qualified Provider List (QPL) of debt collection firms capable of collecting delinquent accounts from various governmental entities, including higher education institutions, technical colleges, and other state agencies. The scope of services encompasses collection of delinquent taxes, returned checks, housing debts, parking fines, tuition agreements, and other governmental receivables. Contractors must meet stringent requirements, including maintaining a $1,000,000 commercial insurance policy, conducting national criminal background checks with fingerprinting for employees, and providing SOC II Type II reporting. The solicitation (Number 5400023482) was initially posted on October 10, 2022, with the final amendment (Amendment 4) extending the bid submission deadline to October 13, 2022, at 11:00 AM. The contract is structured with a one-year initial term and potential for four optional one-year renewals, potentially extending through October 28, 2027.

The procurement allows for multiple awards to different vendors to populate the Qualified Provider List, with no guaranteed usage or revenue commitment. The solicitation does not specify specific set-aside designations for disadvantaged enterprises. Pricing is structured with fixed maximum collection fee percentages of 25 percent for non-litigated accounts and 40 percent for litigated accounts, with variations possible across different service types. The contract includes a mandatory 1.0 percent administrative services fee based on total dollar purchases, to be remitted quarterly to Procurement Services. The contract covers 33 higher educational institutions across South Carolina, including major universities like Clemson University and the University of South Carolina, as well as numerous technical colleges. Three approved billing and accounting service contractors are identified: ACS - BPO Solutions, AMS Servicing Group, and University Accounting Services. While specific total contract value is not explicitly stated, the comprehensive coverage of debt collection services across multiple state entities suggests a potentially significant procurement opportunity for qualified debt collection providers.