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Awarded contract·City of Spokane·Washington

Collection Agency Services

Won by Ray Klein & Merchants Credit Association$350kAwarded 1/1/2025Single Award
Contract source

Awarded vendors

  • Ray Klein & Merchants Credit Association

Description

The City of Spokane is awarding a three‑year contract for collection agency services to recover delinquent utility revenues. The selected vendor will provide real‑time online account access, toll‑free support, monthly and quarterly reporting, and must operate on a contingency‑based commission model with no upfront fees. The contract allows up to two one‑year renewal extensions and requires compliance with Washington collection statutes, record retention for seven years, and strict confidentiality. • Scope: Debt‑recovery for water, sewer, and refuse accounts, including possible litigation and credit‑reporting. • Payment: Percentage‑of‑principal commission (vendor to propose rate; incumbents used 30‑33%). • Requirements: WA‑licensed, ≥5 years experience, real‑time system, toll‑free line, 7‑year record retention, adherence to FDCPA.

Attached files

Key dates

Bids closed
6/3/2024
Intent to award
1/1/2025
Awarded
1/1/2025
Contract modified
5/29/2024
Starts
8/1/2024
Ends
8/1/2027Renews
Duration
3 years

Last updated

Details

Award type
Single Award
Procurement
Full and Open Competition
Industry
Financial Services
NAICS
561440
Solicitation №
RFP 6135-24

Contract value

$350,000

No explicit contract dollar amount is disclosed. Based on Addendum 1, the city expects average residential balances of $500 and commercial balances of $1,000, with a contingency commission of roughly 30 % (the rates used by current incumbents). Assuming a modest portfolio of 500 accounts per year (≈ 80 % residential, 20 % commercial), total annual principal collections would be about $375,000 (500 × $750 average). At a 30 % commission, the city would pay roughly $112,500 per year. Over the three‑year base term, that equals about $337,500, plus a small margin for possible renewals. Therefore a reasonable ballpark estimate for the contract value is approximately $350 000. Factors influencing the estimate include the actual number of accounts assigned, the mix of residential vs. commercial, and the final commission percentage negotiated.

AI estimate from the award documents

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