T2769 - Non-Tax Debt Collection: Management and Related Services

The State of New Jersey is seeking a contractor for Non-Tax Debt Collection: Management and Related Services through Bid Solicitation #25DPP01127, issued by the Department of the Treasury's Division of Purchase and Property. The procurement aims to select a single contractor responsible for collecting non-tax debt receivables from various state agencies after the 91st calendar day following debt recording. The selected vendor will perform comprehensive collection services including skip-tracing, debtor contact, payment processing, reporting, and potential litigation services across multiple state departments such as Agriculture, Banking and Insurance, Children and Families, Corrections, and others. Key deliverables include managing the Revenue Delinquent Invoice (RDI) system, maintaining strict data security and confidentiality protocols, and maximizing revenue collection through systematic debt recovery processes. Evaluation will be based on the bidder's approach to contract management, technical capabilities, and contingency pricing structure. The optional pre-quote conference is scheduled for April 4, 2025, at 9:30 AM, with bid questions due by 2 PM on April 18, 2025, and final quotes due by 2 PM on May 14, 2025.

The solicitation includes set-asides and preferences for Small Businesses and Disabled Veteran-Owned Businesses, with potential 5% pricing preferences to encourage diverse vendor participation. Bidders must complete comprehensive procurement forms demonstrating ownership structures, potential conflicts of interest, and compliance with various state and federal regulations. The contract has a base three-year term with potential extensions up to two additional years, using a contingency rate model where the contractor is compensated through a percentage of collected debt, with rates escalating based on total dollars collected annually. The total accounts receivable across state departments stands at $2,480,582,274.25, presenting a significant opportunity for the selected vendor. Strict information security requirements are mandated, including completion of a detailed Third-Party Information Security Questionnaire covering 30 security control areas, and vendors must provide extensive documentation about their security practices, including SOC2 Type II audit reports and privacy policies. Confidentiality is paramount, with legal consequences for unauthorized information disclosure, and the contract emphasizes compliance with the Federal Fair Debt Collection Practices Act.