TO: Mayor and Commissioners
FROM: Chief Purchasing Officer
THROUGH: Donald B. Cooper, City Manager
DATE: April 19, 2016
Title
CONTRACT AWARD TO ACCOUNTS RECEIVABLES, INC. DBA ARI FOR COLLECTION OF THE CITY’S CONSUMER DEBT (2016-040)
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Recommended Action:
Recommendation
Motion to Approve the Selection Committee’s ranking and award a contract for RFP NO. 2016-040 to Accounts Receivables, Inc. d/b/a ARI, for collection of the City’s past due consumer debt, for a two year term with two additional one year renewal options.
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Background:
On January 26, 2016, RFP 2016-040 was issued to obtain proposals from firms for collection of the City’s consumer debt. The bid opening, held on February 26, 2016 at 2:00PM, revealed that four out of 44 vendors who viewed the RFP submitted a proposal. Vendors were asked to state collection service fees as a percentage of the monies collected from the accounts turned over by the City to the Proposer for each account type.
A selection committee was appointed by the City Manager, and consisted of three members. Those members were:
• Desiree Lancaster, Fire Department
• Tanya Sallette, Police Department
• Jeff Snyder, Finance Department
After the selection committee conducted an in-depth review of each proposal and checked each proposer’s references, they ranked the proposers according to the RFP’s evaluation criteria. The ranking is as follows:
1. Accounts Receivables, Inc. DBA ARI - 281 points
2. I.C. System, Inc. -- 278 points
3. Penn Credit Corporation - 273 points
4. National Enterprise Systems, Inc. - 266 points
The cost of this proposed contract will be determined by the success of the collection agency. The pricing is established as a percentage of debt collected: (1) 25 percent for parking tickets; (2) 20 percent for all other receiveables. Before delinquent receiveables are sent to the agency for collection, the Finance Department adds a collection fee. The net amount received by the City is 100 percent of the original receiveable amount. Effecting this collection fee will require updating some City ordinances.
This motion is in accordance with the Code of Ordinances, Chapter 36, Section 36.02(A)(2), "Requests for Proposals, Requests for Qualifications, Requests for Letters of Interest."
City Attorney Review:
Approved as to form and legal sufficiency.
Finance Department Review:
Finance recommends approval. This proposal is an integral part of a plan to improve the City's accounts receivable and internal control systems. The plan includes consolidation of currently dispersed activities, additional amendments to the accounts receivable policy to establish stronger internal control procedures, standardizing our write-off procedures, streamlining our receivable process, and implementing online payment and other e-commerce opportunities.
Funding Source:
001-1511-513-31.90 Finance Administration Other Professional Services
Timing of Request:
Implementing this proposal will immediately broaden the scope and effectiveness of the City's collection activities.