Third Party Debt Collection Services

The South Dakota Bureau of Human Resources and Administration is seeking third-party debt collection services through RFP #25RFP11629, targeting delinquent amounts owed to the State of South Dakota. The procurement involves collecting debts that the state's Obligation Recovery Center (ORC) has been unable to recover, covering 22 different state entities with a current inventory of 165,664 active debts valued at $143,171,262. Qualified collection firms will be responsible for undertaking accounts promptly, making multiple contact attempts, conducting monthly collection activities, and maintaining strict confidentiality and data security standards. The state will evaluate proposals based on past performance, expertise, resources, project management, and ability to handle special project constraints, with a total possible score of 100 points. Key procurement dates include a virtual pre-proposal conference on March 26, 2025, a deadline for written inquiries on April 4, 2025, responses to offeror questions by April 16, 2025, and proposal submissions due on May 2, 2025, at 5:00 PM CT.

The contract will have an initial term of approximately 27 months, from contract execution to November 14, 2027, with potential for up to four one-year renewals. The compensation structure involves a 20% collection charge added to referred accounts, with the contractor receiving 17% of collected debt. The current ORC is managed by Reliant Capital Solutions, LLC, which will provide the collection platform, telephony services, and supporting infrastructure at cost to the awarded contractor. Proposals must be submitted electronically via email to 25RFP11629@state.sd.us with a specific subject line format. While the RFP does not explicitly mention set-aside designations or restrictions for disadvantaged enterprises, it requires contractors to have significant capabilities in debt collection, technological infrastructure, and compliance with state collection regulations. The total potential contract value could approach $24.3 million based on the current debt inventory, though actual collections will determine the precise compensation.