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Lansing Board of Water & Light·Michigan

Collection Agency Services

Closes 10/30/2026$315k – $840kRequest for Proposal
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Description

The Lansing Board of Water & Light (BWL) seeks a qualified collection agency to recover delinquent utility and limited non‑utility accounts that have been inactive for 60+ days. The agency will receive weekly electronic account files, must adhere to all applicable laws (including the Fair Debt Collection Practices Act), and will be compensated via a performance‑based commission on amounts collected. The contract requires implementation testing by 16 April 2027, go‑live by 1 May 2027, and ongoing collection services for the contract term. BWL will evaluate proposals on price, experience, reporting capabilities, and overall response. • Target volume: ~400 accounts worth $175,000 monthly • Services: first and second placement collections, settlement negotiations (≥80% of amount), payment‑arrangement handling, reporting, and data security compliance • Compensation: fixed percentage fee on gross collections (no netting) • Deliverables: monthly remittance by the 10th, invoices within 30 days, real‑time reporting by the 2nd business day of each month • Technical requirements: secure FTP, ESB file transfer, Lexis‑Nexis access, CIS experience • Timeline: RFP issued 7 Oct 2026, questions due 16 Oct, proposals due 28 Oct, award expected 20 Nov 2026.

Attached files

The solicitation documents live at the source — open the bid source above to download them.

Contact

Nikki Bradshaw

[email protected]

Key dates

Opened
10/7/2026
Questions due
10/16/2026
Closes
10/30/2026
Projected award
11/20/2026

Last updated

Details

Type
Request for Proposal
Industry
Financial Services
NAICS
561440
Solicitation №
202610077701

Budget estimate

$315,000 – $840,000

Based on the stated monthly delinquent account value of $175,000 and a typical collection‑agency commission ranging from 15% to 40% of amounts actually recovered, the agency could expect gross fees between $26,250 and $70,000 per month. Assuming a 12‑month contract, total revenue would fall roughly between $315,000 and $840,000. The estimate varies with collection success rates, the mix of first‑ vs. second‑placement accounts, and any negotiated performance incentives.

AI estimate from the solicitation

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