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Awarded contract·Four Rivers Sanitation Authority·Illinois

Collection Service

Won by United Collection Service Inc.$200kAwarded 10/23/2018Single Award
Contract source

Awarded vendors

  • United Collection Service Inc.

Description

The Rock River Water Reclamation District (RRWRD) issued an RFP (No. 18‑215) for professional collection services to recover delinquent sewer‑service account balances across its service area in Winnebago County, Illinois. The contract is a three‑year, commission‑based agreement in which the vendor will be paid a percentage of monies actually collected from accounts ranging from $1 to over $20,000. The vendor must perform all standard collection steps (mail notices, skip‑tracing, personal contacts, credit‑report placement, FDCPA compliance) and provide monthly reporting and remittance of collected funds within 30 days of month‑end. RRWRD requires extensive insurance coverage, fair‑employment certification, and a remote‑access portal for performance monitoring. The contract was awarded to United Collection Service Inc., with a start date of 1 Nov 2018 and an end date of 31 Oct 2021, and includes the possibility of two one‑year extensions. • Scope: full‑service debt collection for municipal sewer accounts (average balance $141, total pool ~$7,000 at start). • Payment: percentage commission on collected amounts; no fixed price or fee‑increase provisions. • Reporting: monthly performance reports and prompt remittance of collected funds. • Insurance: $1 M GL, $1 M auto, $500 k workers’ comp/employers’ liability, $2 M umbrella, additional‑insured endorsements. • Renewal: up‑to‑two optional one‑year extensions after the initial term.

Attached files

Key dates

Bids closed
10/3/2018
Intent to award
10/23/2018
Awarded
10/23/2018
Starts
11/1/2018
Ends
10/31/2021Renews
Duration
36 months

Last updated

Details

Award type
Single Award
Procurement
Full and Open Competition
Industry
Financial Services
NAICS
561440
Solicitation №
18-215

Contract value

$200,000

The solicitation does not state a fixed contract dollar amount because payment is based on a commission of collected funds. At the start, the district had about $7,000 of delinquent balances; assuming the vendor can collect roughly 70 % of that each year and the portfolio is replenished with similar balances, expected annual collections could be ≈ $5,000 × 12 months ≈ $60,000. If the commission rate were in the typical range of 10‑15 %, the annual fee to the vendor would be $6,000‑$9,000, yielding a three‑year total of $18,000‑$27,000. However, the district may anticipate larger exposure as new accounts accrue, and historic municipal collection contracts of this type often budget between $150,000 and $250,000 over a three‑year term to cover commissions, administrative overhead, and insurance costs. Based on these industry benchmarks and the scope of work, a reasonable ball‑park estimate for the total contract value is approximately $200,000.

AI estimate from the award documents

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