File #: 22-1121    Version: 1 Name: Debt Collection Services
Type: Contract Status: Approved
File created: 1/6/2022 In control: Finance Committee
On agenda: 2/10/2022 Final action: 3/17/2022
Title: PROPOSED CONTRACT Department(s): Department of Revenue, Clerk of the Circuit Court, Cook County Health and Hospital Systems, State's Attorney's Office Vendor: AllianceOne Receivables Management, Inc., Trevose, Pennsylvania Pioneer Credit Recovery, Arcade, New York Harris & Harris Ltd. Chicago, Illinois Nationwide Credit and Collections, Oakbrook, Illinois Request: Authorization for the Chief Procurement Officer to enter into and execute Good(s) or Service(s): Debt Collection Services Contract Value: Revenue Generating - Contingency Fee Based Contract period: 2/17/2022 - 2/16/2027 with one (1), one-year renewal option Potential Fiscal Year Budget Impact: Contingency Fee Based Accounts: Various Contract Number(s): 2053-18384A - AllianceOne Receivables Management, Inc. 2053-18384B - Pioneer Credit Recovery 2053-18384C - Harris & Harris Ltd. 2053-18384D - Nationwide Credit and Collections Concurrences: The vendors have met the Minority- and Women-owned Business Ent...
Indexes: (Inactive) IRIS Y. MARTINEZ, Clerk of the Circuit Court , (Inactive) ISRAEL ROCHA JR., Chief Executive Officer, Cook County Health & Hospitals System, (Inactive) KENNETH HARRIS, Director, Department of Revenue, (Inactive) KIMBERLY M. FOXX, Cook County State's Attorney

title

PROPOSED CONTRACT

 

Department(s):  Department of Revenue, Clerk of the Circuit Court, Cook County Health and Hospital Systems, State’s Attorney’s Office

 

Vendor: 

AllianceOne Receivables Management, Inc., Trevose, Pennsylvania

Pioneer Credit Recovery, Arcade, New York

Harris & Harris Ltd. Chicago, Illinois

Nationwide Credit and Collections, Oakbrook, Illinois

 

Request: Authorization for the Chief Procurement Officer to enter into and execute

 

Good(s) or Service(s):  Debt Collection Services

 

Contract Value:  Revenue Generating - Contingency Fee Based

 

Contract period:  2/17/2022 - 2/16/2027 with one (1), one-year renewal option 

 

Potential Fiscal Year Budget Impact:  Contingency Fee Based

 

Accounts: Various

 

Contract Number(s): 

2053-18384A - AllianceOne Receivables Management, Inc.

2053-18384B - Pioneer Credit Recovery

2053-18384C - Harris & Harris Ltd.

2053-18384D - Nationwide Credit and Collections 

 

Concurrences:                     

The vendors have met the Minority- and Women-owned Business Enterprise Ordinance via direct participation.

 

The Chief Procurement Officer concurs.

 

Summary:  These contracts are for Countywide Debt Collection Services. The vendors will provide comprehensive debt collection services on behalf of the Cook County State’s Attorney’s Office on outstanding accounts classified as uncollectible by the Department of Revenue, Clerk of the Circuit Court, Cook County Health and Hospital Systems.

 

These contracts include three types of contingency fees: (1) Primary Accounts are new debt; (2) Secondary Accounts are old debt that has been transferred to the new servicer; (3) Litigation is debt that has been otherwise uncollectable and recovery necessitated litigation.

 

Contingency fees on collections are as follows:

2053-18384A - AllianceOne Receivables Management, Inc.

(Revenue): Primary Accounts (14.99%), Secondary Accounts (14.99%) Litigation (14.99%)

(Clerk): Primary (14.75%,) Secondary Accounts (14.75%) Litigation (14.75%)

 

2053-18384B - Pioneer Credit Recovery

(Revenue): Primary Accounts (14.50%), Secondary Accounts (21.90%) Litigation (30.00%)

 

2053-18384C - Harris & Harris Ltd.

(Clerk): Primary (14.95%,) Secondary Accounts (14.95%) Litigation (14.95%)

 

2053-18384D - Nationwide Credit and Collections

(Health & Hospital Systems) Primary Accounts (13.50%), Secondary Accounts (16.00%) Litigation (16.00%)

 

Request for Proposal (RFP) procedures were followed in accordance with the Cook County Procurement Code and the contract awards are being selected based on established evaluation criteria.

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