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Agreement for Initial Placement <br />Collection Agency Services <br />June 17, 2014 <br />Page 2 <br />A committee comprised of City staff reviewed the three proposals received. An evaluation of <br />proposals compared eight criteria: (1) ability to meet requirements as set forth in the RFP, (2) <br />thoroughness and understanding of the tasks to be performed; (3) firm's expertise and overall <br />experience of personnel assigned to the work; (4) service approach; (5) time required accomplishing <br />the requested services, (6) public sector experience in municipal setting conducting similar services; <br />(7) fee structure; (8) quality of references and result of interviews. Based on the evaluation of <br />proposals by the committee, the following is the ranking of service proposals: <br />FIRM <br />7nl ilk <br />1. PennCredit 1 st <br />2. Automated Collection Services, Inc. 2nd <br />3. American Capital Enterprises, Inc. 3rd <br />PennCredit (a 27 -year collection services company), was most responsive to the evaluation criteria <br />and the City's future collection agency service requirements. The recovery fee rates for PennCredit's <br />services are based on the City's transmittal of delinquent debt as follows: <br />Staff recommends approval and authorization to award an agreement with PennCredit for Initial <br />Placement Collection Agency Services for all accounts receivable initially placed for collection <br />beginning July 1, 2014. <br />However, to continue collecting on existing outstanding debt balances, staff recommends approval <br />and authorization to award an agreement with American Capital Enterprises, Inc. for Prior Placement <br />Collection Agency Services for all accounts receivable previously placed for collection prior to July 1, <br />2014. This recommendation is made based on American Capital Enterprises, Inc.'s expert knowledge <br />regarding the nature & collection status of previously placed debt and their #1 ranking of 20% in <br />terms of fee structure relating to prior placement debt. <br />25G -2 <br />Within 7 months of <br />After 7 months of <br />delinquency <br />delinquency <br />1. Standard Collection <br />17% <br />19% <br />2. Subject to Franchise Tax <br />Board Interagency <br />22% <br />24% <br />Intercept Program <br />3. Require Legal Action <br />33% <br />35% <br />Staff recommends approval and authorization to award an agreement with PennCredit for Initial <br />Placement Collection Agency Services for all accounts receivable initially placed for collection <br />beginning July 1, 2014. <br />However, to continue collecting on existing outstanding debt balances, staff recommends approval <br />and authorization to award an agreement with American Capital Enterprises, Inc. for Prior Placement <br />Collection Agency Services for all accounts receivable previously placed for collection prior to July 1, <br />2014. This recommendation is made based on American Capital Enterprises, Inc.'s expert knowledge <br />regarding the nature & collection status of previously placed debt and their #1 ranking of 20% in <br />terms of fee structure relating to prior placement debt. <br />25G -2 <br />