Item 12 - Collection Agency Services

Home Browse Search

Collection Agency Services August 5, 2025 Page 2 monitor accounts in addition to ensuring compliance with the Fair Debt Collection Practices Act (FDCPA), Federal Fair Credit Reporting Act (FCRA), and other legislation. The selected proposer has proven to adhere to all of the rules required for debt collection, including state laws that protect debtors from harassment, abuse, and deceptive practices. These rules include restrictions on communication times, the use of threatening or profane language, and the representative of debt collection practices. The City's current agreement with its temporary collection agency servicer expires September 30, 2025. To enhance debt recovery and resume regular collection cycles, staff initiated a competitive bidding process. Request for Proposals (RFP) No. 25-040 was issued on March 12, 2025, on the City's online bid management and publication system. A summary of vendor participation and results is as follows: 72 Vendors Notified 1 Santa Ana Vendor Notified 31 Vendors Downloaded the RFP Packet 9 Proposals Received 0 Proposals Received from Santa Ana Vendors Proposals were solicited, opened on April 10, 2025, and evaluated. Nine (9) proposals were submitted by the RFP deadline, and eight (8) proposals were determined to be responsive to the specifications and met the City's requirements. An evaluation committee reviewed the responsive proposals and rated them according to the criteria listed in the RFP. Staff recommends awarding an agreement to the BC Services, Inc. ("BCS") (Exhibit 1). The proposal submitted by BCS was found to meet the City's needs, offers the best value, and is appropriate for the services requested. BC Services possesses a strong background and experience, understanding of the scope of work, and value added customer service. Local Outreach Efforts The Purchasing Division advertised this project on the City's online bid management and publication system, which directly notified one (1) Santa Ana vendor. However, no Santa Ana vendors downloaded the RFP packet or submitted a bid for consideration. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Payment for services is contingent upon successful collection, regardless of effort spent on individual accounts. There is no direct fiscal impact on any expenditure accounts. The vendor will retain a fee ranging from 14.5% to 25% of the amounts collected. This includes 14.5% for accounts placed with the vendor for initial collection efforts and 25%