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California Department of Developmental Services·California

IFB 2209 Debt Collection Services

Closes 11/19/2026$1.5M – $3MInvitation for Bid
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Description

The Department of Developmental Services (DDS) is seeking a qualified contractor to provide comprehensive debt‑collection services for its Accounting and Fiscal Services Section. The work includes auditing delinquent vendor accounts, recovering employee‑related advances, handling dishonored checks, enforcing judgments, and pursuing over‑payments. The contractor must perform skip‑tracing, credit‑report pulls, property searches, and maintain a secure real‑time database accessible to DDS. All collected funds must be remitted to DDS, with the contractor compensated only as a percentage of amounts collected. The contract runs from January 1 2027 through June 30 2028 and requires compliance with federal and California debt‑collection statutes, extensive data‑security measures, and timely reporting. • Scope: full‑service debt collection (vendor, employee, judgment, over‑payment) with reporting and data security. • Requirements: California debt‑collector license, $1 M general liability insurance, background checks, and ability to remit 100 % of collected funds. • Timeline: IFB posted 10/29/2026, questions due 11/5/2026, bid deadline 11/19/2026, contract period 18 months.

Attached files

Contact

Jonathan Louie(Primary Procurement Contact)

[email protected]

Key dates

Opened
10/29/2026
Questions due
11/5/2026
Closes
11/19/2026
Duration
18 months

Last updated

Details

Type
Invitation for Bid
Industry
Financial Services
NAICS
561440
Solicitation №
IFB 2209

Budget estimate

$1,500,000 – $3,000,000

The solicitation does not set a fixed fee; payment is a percentage of collected amounts. The estimated debt pool is $10 M in year 1 and $5 M in year 2 (total $15 M). Assuming a typical collection‑fee range of 10 %–20 % for government contracts, expected contractor earnings would be roughly $1.5 M to $3.0 M over the 18‑month period. Factors influencing the final amount include the actual recoverable percentage, the fee rate the contractor proposes, and the efficiency of collection activities.

AI estimate from the solicitation

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