This is a Statewide Contract (SWC) for debt collection services. This Statewide Contract has been expanded to encompass the collection of multi-state transportation and tolling debt owed to MassDOT. Related legal services, including litigation when necessary to pursue matters through settlement, dismissal, or judgment, are also covered. Additionally, Fee-for-Service for skip-tracing services (separate from the collection process) are available exclusively for MassDOT-related accounts.

These services will recover overdue payments through effective and ethical collection practices. They employ advanced methods and maintain the highest professional integrity to boost Commonwealth revenues.

Commonwealth Agencies and legislatively authorized Eligible Entities can use the debt collection services offered through this SWC, as mandated by M.G.L. c. 29, § 29D. In accordance with 815 CMR 9.00, debts represent non-tax revenues, which can include fines, fees, licenses, permits, interest income, assessments, third-party payments, fleet debt, pay by plate debt, parking tickets, and all other types of transportation debt, as well as any other receivables that can be collected. 

Debt Collection Agencies (DCAs) enhance the user experience by offering:

• Industry Leadership: DCAs   lead the industry in technology security. They use Payment Card Industry Data Security Standard (PCI DSS) and other protocols to ensure maximum security and privacy for account referral, funds remittance, and reporting.
• Advanced Collection Methods: DCAs employ advanced collection methods, including skip-tracing, letters, calls, and predictive dialing.
• Diverse Electronic Payment Options: They offer diverse, no-cost electronic payment options such as major credit cards, checks (ACH, hard copy, by phone), MoneyGram, Western Union, and Interactive Voice Response (IVR)    . These options are designed to maximize collections and expedite fund transfers to the Eligible Entity.
• Dedicated IT and Security Teams: DCA bids include dedicated IT and security teams. 
• HIPAA Compliance: DCAs are aware of and agree to comply with all applicable requirements of the Health Insurance Portability and Accountability Act (HIPAA) and its accompanying regulations throughout the term of the contract.

To learn more about the benefits and cost savings offered by this SWC contract, see Benefits and Cost Savings.

Note: This contract can be used to procure the goods or services described herein at any dollar amount. Any limitations, including for procurements involving construction, are outlined in this Contract User Guide.

For the Master Contract Record, view Master Blanket Purchase Order PO-20-1080-OSD03-SRC02-18683. 

Benefits and Cost Savings

Statewide Contracts are an easy way to obtain benefits for your organization by: 

• Leveraging the Commonwealth’s buying power
• Simplifying the solicitation process
• Providing contracting expertise
• Enhancing vendor relationships through proactive management and oversight
• Offering competitive pricing
• Offering Prompt Payment Discounts (PPD), which is a percentage discount given to the buyer if the invoice is paid within a specified time, in accordance with the Commonwealth’s Bill Paying Policy

• Partnering with a pool of qualified and experienced vendors

• Multiple statewide contractors with a wide range of debt collection services.
• Competitive debt collection rates.
• More than 10 years of government collection experience.
• Capacity to provide services to multiple Commonwealth departments simultaneously.
• Capability to accept all types and sizes of debt, and expertise to seek collections internationally.
• High-level of audit standards with robust internal controls.
• State of the art collection methods, security protocols, and PCI compliance.
• Ability to provide location services for other business purposes not related to collections on a fee-for-service basis.
• Familiarity with HIPPA requirements and its accompanying regulations.
• Accurate daily processing of electronic payments and comprehensive reconciliation of all financial activities and relevant schedules for each Eligible Entity.
• Automated close out deadlines to limit the time debts are actively worked on based upon industry standards.
• Additional value-added services to deliver the greatest benefit to the Commonwealth.

The following is a complete list of the types of organizations generally allowed to use the Operational Service Division’s (OSD's) Statewide Contracts (SWCs). Some SWCs may be open to additional organizations, and some are more restricted in usage.

• Cities, towns, districts, counties, and other political subdivisions
• Executive, Legislative, and Judicial Branches, including all departments and elected offices therein
• Independent public authorities, commissions, and quasi-public agencies
• Local public libraries, public school districts, and charter schools
• Public hospitals owned by the Commonwealth of Massachusetts
• Public institutions of higher education
• Public purchasing cooperatives
• Non-profit, UFR-certified organizations that are doing business with the Commonwealth
• Other states and territories and their cities, towns, districts, counties, other political subdivisions, and public institutions of higher education without prior approval from the State Purchasing Agent 
• Other entities when designated in writing by the State Purchasing Agent
  

The DCA payment terms for debt collection services is a contingency fee contract. In contrast to traditional fee-for-service contracting, Eligible Entities are authorized to engage Debt Collection Agencies (DCAs) to assist in the collection of delinquent debts. DCAs will be compensated through a contingency fee, calculated as a percentage of the amounts collected. 

For debt collection purposes, Total Debt means the original principal debt identified by the Eligible Entity/Department, plus any applicable late fees, penalties, and accrued interest added by the Department. The process is as follows:
1. DCAs will add their contingency fee as a bid in their RFR Response Part E: Contingent Fee Schedule for Debt Collection Services.
2. Upon successful collection, the DCA will receive a contingency fee, which will be a percentage of the total debt recovered. 
3. DCA will keep their contingency fee and forward the remaining collected funds to the Department. 

Skip-tracing-as-a-service, rendered outside the scope of traditional debt collection efforts, will be billed separately in accordance with the terms and conditions presented in the vendor's RFR. 

Customers are responsible for any fees resulting from non-sufficient funds (NSF) or returned checks. The original amount of the check will then be re-attempted for collection.

Eligible Entities have not been appropriated funding for this Debt Collection Services Statewide Contract. 
The purchase option for this contract is Direct Purchase of Non-Fixed Price Item ($0 Line Item) on Vendor’s MBPO. This option is applicable to products and services that may require customized quoting. See the Vendor MBPO Listing for a list of eligible vendors. The Buyer can create a Release Requisition in COMMBUYS, submit the requisition for approval in COMMBUYS, and then send the vendor a Release Purchase Order. See the How to Make a Statewide Contract Purchase in COMMBUYS job aid for more details.

Prior to establishing new engagements or onboarding SWC PRF72 vendors, Eligible Entities are required to notify CTR’s Category Manager Corrine Steller at debtcollectioncontract@mass.gov.

When selecting a vendor, Eligible Entities should review Finding Vendors-Specific Documents. The DCA contact will assist the Eligible Entity in setting up login credentials (user IDs and passwords) for the DCA web portal. DCA will then complete the implementation process to identify Eligible Entity bank accounts for electronic deposits (EFT/ACH) and outline parameters for the following:

• Debt types
• Authorized payment types
• Remitting and posting schedules for collected payments
• Format for uploading debt information
• Process to begin accepting debt payments and remitting net proceeds to the Eligible Entity designated bank account(s)

Note: MOSAIC and COMMBUYS do not interface. Payment request and invoice must be reported in both MOSAIC and COMMBUYS.

Please adhere to these guidelines:

• Eligible Entities are obligated to review all DCA's Close and Return Reports each month and perform reconciliation of debts referred, collected and fees remitted. 
• When debts are deemed uncollectible and returned by the DCA, the Eligible Entity must decide whether to write off the debt or initiate a second or third DCA referral or Intercept.
• State Departments must adhere to CTR's write-off procedures, while non-state departments must follow their own policies for closing out receivables. 
• DCAs are obligated to provide necessary information, support, and cooperation for closing out uncollectible debts when returned by the DCA, after 6 months of referral, upon contract termination, or upon Statewide Contract termination. 
  • This includes a full accounting of all referred debts, their status, recommended close-out procedures, a schedule of payment plans, and any debts in litigation.
    

COMMBUYS is the Commonwealth of Massachusetts' e-procurement platform, serving as a central marketplace for state agencies and other Eligible Entities to procure goods and services, connecting government buyers and businesses. It aims to streamline the purchasing process, ensuring transparency and efficiency in the procurement process.

For Executive Agencies, COMMBUYS is required. Per 801 CMR 21.00, Executive Agencies must use established Statewide Contracts (SWCs) for the purchase of products and services. To set up a COMMBUYS buyer account or to update an existing agency account, the buyers must contact the COMMBUYS Help Desk at: 888-627-8283 or OSDhelpdesk@mass.gov.

While COMMBUYS use is not mandated for Non-Executive Agencies and other Eligible Entities, it is highly recommended to streamline the procurement process and assist buyers in making informed purchasing choices. Eligible entities should follow their internal guidelines for COMMBUYS use.

Buyers can view contract documents on COMMBUYS without requiring a COMMBUYS account or logging in.  
To find contract documents in COMMBUYS, follow these steps:

1. On the COMMBUYS home page, enter PRF72 in the search tool and select Blankets from the drop-down list.
2. Select the Search icon. The related Master Blanket Purchase Orders (MBPOs) information opens in a table format. 
3. To view the associated contract documents, under the Blanket # column, select the applicable Purchase Order (PO) link. MBPO opens for the selected PO and the attachments can be found in the Agency Attachments or Vendor Attachments section. 

4. All standard contract documents are within the Master Contract Record. Access them directly by clicking this link: Master Blanket Purchase Order PO20-1080 OSD03-SRC02-18683
5. To find SWCPRF72 RFR contracts and rates on COMMBUYS, go to the Appendix. Refer to the appendix for instructions on accessing the DCA vendor’s attachments, including the RFR featuring the contingency fee percentage rate, litigation contingency fee percentage rate, and skip-tracing pricing as a separate Fee-for-Service (MassDOT only). 

If applicable, to find vendor-specific documents, view the links to the individual vendor MBPOs on the Vendor Information page, and follow these steps:

1. On the Vendor Information page, select the applicable Purchase Order (PO) link. The Master Blanket Purchase Order (MBPO) opens for the selected PO.
2. If applicable, on the MBPO, scroll down to the Vendor Attachments section to find the vendor-specific documents.
3. To view, select the desired document link.

Please refer to the following guidelines:

• Executive Departments must use diverse and small businesses to the extent possible based on contract terms, Supplier Diversity Office (SDO), and departmental policies, laws, and regulations.
• The Small Business Purchasing Program (SBPP) applies to small procurements ($250,000 or below annually), while the Supplier Diversity Program (SDP) applies to large procurements (over $250,000 annually). Executive Departments must consider these requirements when soliciting quotes or issuing Statements of Work (SOWs).
• Operational Services Division (OSD) provides a list of SDO businesses through the Statewide Contract Index. Refer to the Programs (SDP and SBPP) tab on the index (scroll to view the tab).

• In cases where all other factors are equal, and particularly when adhering to a best value approach, the department will favor the vendor with stronger SDP commitment.
• For more information, refer to Best Value Evaluation of SDP Plan Forms: A Guide for Strategic Sourcing Teams.
• Vendor SDP commitment percentages may be found on the Vendor List table.

• If available, departments must notify at least two certified small businesses capable of providing the product or service. Bids received from SBPP-participating small businesses must be evaluated, and if one meets the department’s best value criteria, the contract must be awarded to that vendor.
• For more information, refer to Best Value Evaluation of Responses to Small Procurements: A Guide for Strategic Sourcing Teams.
• Vendor SBPP Certification status can be found on the Vendor List table.

Vendors on this contract may be required to provide products or services in cases of statewide emergencies. The 801 CMR 21.05(3) defines emergency for procurement purposes. Visit the Emergency Response Supplies, Services and Equipment Contact Information for Statewide Contracts list for emergency services related to this contract.

Vendors' performance is measured by several factors, including the following:

• Buyers provide actionable feedback on vendors for this contract to optimize performance through the Procurated platform. On the Procurated website, click "Search for a Massachusetts Vendor to Review", then search for the vendor by name and select them from the list. Once you enter your professional email address, you will be forwarded to the review screen.
• Buyers are encouraged to reach out to the Category Manager(s) (Corrine Steller or Tina Sang or Hayley Lebert) if vendors are not meeting their contractual obligations and buyers may be surveyed for vendor performance feedback.
• Vendors will be evaluated on their current performance and may be asked to work with the Commonwealth toward improvement.
• Vendors must meet all contractual requirements throughout the life of the contract, including requirements for timely and accurate report submission, to remain in good standing under the contract.
  

For general procurement guidelines and best practices, follow these recommendations:

• Buyers should inform vendors to reference Statewide Contract PRF72 on all quotes and invoices.
• No prepayment should be made for products not yet delivered or services not yet rendered.
• No sales tax should be applied to invoices.
• No fees or surcharges (including travel, fuel, delivery) should be applied to invoices.
• Special order fees must be agreed upon by both parties upfront.
• Payments for products or services provided must be paid within 45 days per Massachusetts Bill Payment Policy, or sooner if applying Prompt Payment Discount.
• Buyers are not required to sign additional agreements with vendors that conflict with the Request for Response (RFR) Terms and Conditions. Contact the Category Manager(s) (Corrine Steller or Tina Sang or Hayley Lebert) for guidance. 
• Vendors must notify buyers of product substitutions.

MassDOT Only

Mosaic users must reference the MA number in the proper field in Mosaic when placing orders with any contractor. All MassDOT Mosaic payments for skip-tracing Fee-for-Service must be made referencing the Statewide Contract's Master Agreement: MA OSD 0100 PRF7200000000000000
Please address all inquiries regarding MOSAIC technical support and job aids by emailing the Comptroller Help Desk or by calling 617-973-2468. 

Specifications that Apply to Debt Collection Agencies and Eligible Entities

The following specifications apply to both DCAs and Eligible Entities for use of this Statewide Contract. The documents listed below are incorporated by reference into this Statewide Contract, or as amended.

DCAs and Eligible Entities are required to comply with and perform the duties, responsibilities and requirements outlined below under the Debt Collection Services Statewide Contract. Eligible Entities and DCAs collecting Commonwealth debt must comply with these terms and the terms of the Statewide Contract. Any of the terms contained in this document may not be amended or modified in writing or by actions or performance without prior written approval of CTR. Past practice that does not comply with these specifications shall not be exempted.

Compliance with Debt Collection Requirements

Refer to 815 CMR 9.00 regulation for applicable debt collection requirements. In addition, all DCAs are required to submit monthly collections reporting to CTR for financial reporting purposes.

Eligible Entity Dunning and Review Accuracy of Debt to Be Referred

Before referring debt to a DCA, State Departments are required to verify adherence to 815 CMR 9.00 regulation and confirm the debt is undisputed. Other non-executive Eligible Entities are required to follow their own published debt collection and due process procedures. If the entity lacks published procedures, the 815 CMR 9.00 process should be used.

Comptroller Intercept Program

According to 815 CMR 9.04, debts can be simultaneously submitted to both the Commonwealth Intercept Program and to a Statewide Debt Collection Agency. Statewide Debt Collection Agencies that accept debts simultaneously submitted for Intercept and Debt Collection assume the risk that the debt will be successfully intercepted in whole or in part prior to the Collection Agency's successful collection of the debt. In such cases, the Statewide Debt Collection Agencies shall not be entitled to any compensation for the debt collection work carried out.

To learn more about the Intercept process, please visit CTR’s Intercept webpage.

Payment Plans

Eligible Entities may authorize a DCA to establish installment payment plans with debtors to collect the full debt amount. Payment plans should include at least a 25 percent down payment, which may vary depending on the debt and debtor's financial situation. The maximum repayment period is 6 months, though an Eligible Entity can approve an extension of up to 12 months.

Payment plans negotiated in the final year of the Statewide Contract may not be negotiated to extend beyond 6 months after the termination date of the Contract. Contingent fees will be due at the time each payment installment is remitted to the Eligible Entity. DCAs must provide reports on all activities specified by CTR including payment plans on a monthly basis. If a debtor defaults on a payment plan, the DCA must immediately notify the Eligible Entity for further instructions. DCAs may not accept post-dated checks for payment plans. Electronic payment options, such as electronic check authorization and ACH, are available in compliance with the law.

Referral to the Attorney General’s Office

State Departments, in consultation with the Attorney General’s Office (AGO), will determine if sufficiently large cases will be referred to the AGO for litigation. Should a referral to the AGO be made, the DCA shall furnish all records and data pertaining to the case to the designated Eligible Entity for submission to the AGO.

Legal Services and Litigation

Per 815 CMR 9.05 (5), DCAs authorized to offer legal and litigation services will work in conjunction with Eligible Entities to establish clear criteria for recommending collections for legal intervention. The contingency fee rate for these services can be found as a separate category on the vendor’s RFR Response Part E: Contingent Fee Schedule for Debt Collection Services (Option 2 with Legal Services).

Early Recall for Cause

An Eligible Entity may initiate an early recall of the debt, outside of the standard 6-month cycle, for cause due to poor performance, including but not limited to the following reasons:

• Failure to perform
• Overly aggressive or discourteous handling of clients
• Failure to provide timely reporting
• Failure to remit funds timely or accurately
• Any other breach, violation, or non-compliance with the terms of this contract, general or special law, or any act of fraud or other cause
• Any other act or omission constituting a breach of this contract, a violation of applicable law or regulation, or an instance of fraud or other misconduct.

The DCA must return the debt immediately and the Eligible Entity does not need to provide an opportunity to cure. The DCA will not be entitled to any fee on a recalled debt for cause.

Early Recall Without Cause

While discouraged, an Eligible Entity possesses the right to recall a debt prematurely, before the customary 6-month period, without needing to provide a specific justification ("without cause"). However, the Entity remains responsible for the debt collection fee owed to this DCA if the debt is recovered directly by them or by another DCA. The Eligible Entity is responsible for paying the original DCA's contingent fee using amounts remitted either directly by the debtor or from the net proceeds remaining after the second referral DCA's fee has been deducted.

Since early recall without cause may result in double fees for collection activities, early recall without cause should be limited. The debtor may not be charged dual DCA fees if two DCAs have been used in the debt collection process. When dual fees are applicable, the active DCA is solely responsible for adding its fee to the initial debt amount (the first DCA's fee is not included). After the active DCA recovers the debt and subtracts its fee, it will send the remainder to the Eligible Entity, which then pays the first DCA.

How to Find SWC PRF72 RFR Contracts and Rates on COMMBUYS

1. Access the COMMBUYS website.
2. In the top search bar, enter PRF72 in the search bar, select the drop-down menu option Blankets, and then select the orange magnifying glass icon to search. The results will populate and appear on the screen as individual blanket/bid numbers with associated vendor information.
3. Under the Blanket # column, select the applicable PO number for the desired Debt Collection Agency (DCA) vendor. The associated Master Blanket Purchase Order page will display.
4. Scroll down towards the bottom of the screen and under the Item Information category section, select the link after the Quote #/Quote Item #. This will bring up the DCA vendor’s attachments including the RFR featuring the contingency fee percentage rate, litigation contingency fee percentage rate, and skip-tracing pricing as a separate Fee-for-Service (MassDOT only).
5. In the Attachments section, select the applicable link to download the associated vendor procurement documentation. For example, to view the debt collection agency contingency rate fees, select the RFR – PRF72DesignatedCTR link to download the file for review and reference.