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Awarded contract·Four Rivers Sanitation Authority·Illinois

Debt Collection Service

Won by IC System$250kAwarded 9/26/2022Single Award
Contract source

Awarded vendors

  • IC System

Description

The Four Rivers Sanitation Authority (FRSA) issued RFP #22‑212 for a debt‑collection service to recover delinquent water and sewer fees. The contract is a three‑year, commission‑based agreement in which the vendor will receive a percentage of monies collected (the rate to be proposed by the vendor). The contractor must handle all aspects of collection—including mailing notices, skip‑tracing, personal contacts, credit‑bureau reporting, and monthly electronic reporting to FRSA—while complying with the Fair Debt Collection Practices Act and related statutes. In‑house FRSA staff will manage lien filings and show‑cause hearings; the vendor may litigate with FRSA approval. Insurance requirements include general liability, auto, workers’ comp, umbrella, professional liability and a new $1 M cyber‑insurance policy. No performance bond or prevailing‑wage requirements apply. The base term runs from 1 Nov 2022 to 31 Oct 2025 with up to two one‑year extensions possible.

Attached files

Key dates

Bids closed
8/25/2022
Intent to award
9/26/2022
Awarded
9/26/2022
Contract modified
8/16/2022
Starts
11/1/2022
Ends
10/31/2025Renews
Duration
3 years

Last updated

Details

Award type
Single Award
Procurement
Full and Open Competition
Industry
Water Management and Sanitation
NAICS
561440
Solicitation №
22-212 Debt Collection Service

Contract value

$250,000

The FY22 payment to the incumbent was $6,703.84, while the current backlog of accounts valued at $916,122.18 suggests a much larger potential recovery. Assuming an 18 % commission (the incumbent rate) and a realistic collection recovery rate of ~19 % (as reported), the expected annual revenue to the vendor would be roughly 0.19 × $916,122 ≈ $174,000 in collections, yielding a commission of about $31,000 per year. Over the three‑year base term this equates to roughly $90,000, plus additional revenue from new monthly placements (~$29,000 per month) which could add another ~$1 M in collections and ~$180,000 in commissions. Given these figures, a conservative total contract value (commission payments) is estimated in the $250,000‑$300,000 range for the full term.

AI estimate from the award documents

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