Collection Agency Services

COLLECTION AGENCY SERVICES
Release Date: March 31, 2026
Submission Deadline: April 21, 2026 by 5:00 PM PST
Contact
Mai Vang, Financial Services Director
REQUEST FOR PROPOSALS Email: mvang@coalinga.com
City of Coalinga

CITY OF COALINGA
REQUEST FOR PROPOSAL
COLLECTION AGENCY SERVICES
Section I: General Information/Overview
A. Overview
The City of Coalinga is seeking the services of a qualified and experienced full-service Collection Agency to provide
collection services for unpaid and delinquent account receivables for the City which include damage to City property
invoices, returned checks, utility services, service fees, and other miscellaneous receivables. It is anticipated that the term
of the services to be awarded will be for three (3) years with an option to renew for two (2) additional years.
B. Description of the Government
The City of Coalinga was incorporated in 1906 and operates as a general law city with a Council-Manager form of
government, focused on providing municipal services to roughly 18,000 residents. A five-member City Council, elected by
citizens, governs the city, sets policy, and appoints a City Manager to oversee daily operations, with a strong focus on
community development, public safety, and financial stability.
C. Proposal Content and Format
Proposals must be for the entire scope of services stated in this RFP. Incomplete proposals will not be considered.
1. Title Page
Page showing the Request for Proposal's subject, the firm's name, the name, address, e-mail address, and
telephone number of a contact person; and the date of the proposal.
2. Table of Contents
3. Cover Letter
Provide a letter of introduction, approximately one (1) page in length, stating the proposer's
understanding of the work to be done, a statement why the firm believes itself to be best qualified to
perform the engagement, state of incorporation, name of owner(s) and principal party(ies), number and
position title of staff. Information regarding any collection associations of which the proposer and its staff
are members should be included. This letter shall be signed by an officer of the bidding firm authorized to
bind the firm to all commitments made in the proposal.
4. Qualifications of staff proposed for the assignment, their position and types and amount of equivalent
collection experience. Be sure to include any municipal agencies they have worked with and their level of
involvement. A description of how overall supervision will be provided should be included. A brief
summary discussing the firm's qualifications and relevant experience.
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5. List of references (at least 4) of present clients for comparable work performed, including a summary of
similar engagements with other governmental agencies.
6. Is the agency able to make collections in all 50 states and the agency's ability to file reports with all three
national credit bureaus?
7. Provide sample copies of the agency's current monthly statement of accounts that are available to your
clients.
8. Provide sample copies of the agency's monthly aging report by delinquency length (30, 60, 90, 120+ days)
9. Provide three different sample letters to be sent to delinquent accounts.
10. A description of your agency's collection methodology, how many agents you will use in our collection
effort, the geographical area you service, and an outline of your agency's collection success rate.
11. The City of Coalinga shall incur no cost for this program. Agency fees will be collected directly from the
debtor. Clearly describe the agency's contingency-based fee structure (percentage of the amount
collected), any legal action fees, and any other charges associated with the collection process.
12. A statement of the dollar amount of an account under which your agency will not actively pursue regular
collection and/or legal action.
13. Provide information if notices are available online and searchable by account for City of Coalinga to
access.
14. A statement of the services your agency feels differentiates your agency from other agencies.
D. Instructions/Conditions/Legal Requirements
1. Agency agrees that failure on its part to list all cost components related to the service will not be accepted by
the City as an acceptable justification to re-quote the proposal. Agency acknowledges that the original proposal
and costs provided stand. However, the agency has the option of withdrawing a proposal at any time until a
final contract is executed.
2. The City of Coalinga has outlined the requirements herein in as much detail as is currently known. Please provide
any exceptions, additional information, or suggestions that will aid in the City's selection process (attachments
are acceptable).
3. The agency shall provide collection services as outlined in the specifications section of this RFP.
4. Agency shall defend, indemnify, and hold harmless the City of Coalinga, its officers, officials, employees, and
volunteers from and against any and all claims, damages, losses, liabilities, and expenses, including reasonable
attorneys' fees, arising out of or related to Agency's performance of services, including but not limited to
violations of applicable laws, data breaches, or negligent acts or omissions.
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5. The City reserves the right to negotiate terms and specifications/scope of work with the highest ranked agency
or piggyback on any existing governmental contract. If an agreement cannot be negotiated the City reserves the
right to negotiate with any other finalist.
6. Agency shall identify those services, if applicable, that will be outsourced to a subcontractor and receive
approval prior to assigning the services. The prime Agency will be responsible for verifying the qualifications and
validity of licenses, permits, and quality of work for any outsourced work to subcontractors. The prime Agency
is also responsible for paying its employees and any subcontractors the prime Agency hires.
7. The selected agency shall enter into a Professional Services Agreement with the City.
8. At the time of execution of the contract, the selected agency is obligated to provide evidence of insurance
liability to include: Workers Compensation, General Liability, Automobile Liability, and Professional Liability in
the amount of $1,000,000 per occurrence.
9. The successful agency shall be an independent firm, and nothing shall be construed to cause the agency to be
deemed or represent itself as an agent or employee of the City.
10. Any evidence of collusion among agency's acting illegally to restrain freedom of competition by agreement to
propose fixed price, or otherwise, will render the proposal of such agency void.
11. The term of the contract shall commence upon award by the City. The City of Coalinga intends for this service
to result in a three (3) year contract, which will have two (2), two-year options to renew. Each renewal period
will be for two (2) years. The City of Coalinga will grant extensions for each of these years on a two (2) year basis,
subject to prior review and approval.
12. The contract between the agency and the City of Coalinga is non-transferable. The agency shall under no
circumstances assign the agreement without written permission of the City. The agency shall notify the City, in
writing, of any changes in business ownership at least thirty (30) days prior to said change.
13. The City reserves the right to add additional accounts receivable collection items to the existing contract. Agency
agrees pricing will be the same for any additional receivables.
14. The agency is required to carefully and fully investigate all the requirements of the RFP. By submitting a proposal,
the agency represents and certifies to the City that such investigation has been completed and that it fully
understands the specifications/scope of services.
15. The City will not reimburse agency for any costs involved in the preparation and submission of proposals.
Furthermore, this RFP does not obligate the City to accept or contract for any expressed or implied services.
16. If a requirement cannot be met by an agency, then the agency should submit a 'no proposal response' for the
items affected. Alternate or equivalent items may be submitted for consideration by the City, unless otherwise
specified.
17. All submitted proposals and information included therein or attached there to shall become public records upon
contract award.
18. The specifications/scope of services is a suggested list only. If agency needs to revise or make additions,
computer or typed alterations are allowed as long as the City format is maintained.
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19. The City reserves the unilateral right to amend, cancel, or reissue this RFP in writing at any time.
20. Disclosure: Materials submitted by Professionals are subject to public inspection under the California Public
Records Act (Government Code Sec. 7927.000 et seq.), unless exempt. Any determination that a document is or
is not a public record pursuant to the Public Records Act shall be decided solely by the City. In the event the
Professional believes a document or record to be confidential, the Professional shall mark the document in a
conspicuous location as "CONFIDENTIAL" before providing it to the City.
21. Any questions regarding this RFP should be referred to Mai Vang, Financial Services Director via email at
mvang@coalinga.com.
E. Schedule for RFP Process
Date and Time Process Steps
March 31, 2026 Request for Proposal released
April 9, 2026 by 5 PM PST Deadline to submit questions to City of Coalinga
April 17, 2026 Reponses to Questions Posted
April 21, 2026 by 5 PM PST Proposal Submission Deadline
April 22 - May 1, 2026 Evaluation of Proposals
May 8, 2026 Notification of Awards
May 21, 2026 (or after) Contract Start Date
Section II: Evaluation and Award
A final contract will be awarded to the most competitively priced and qualified proposal. The City reserves the right to
select the appropriate firm based on the most qualified proposal. The determination of the most qualified and most
competitively priced proposal may involve all or some of the following factors:
1. Qualifications of Firm (20%)
Strength and stability of the firm; strength, stability, experience and technical competence of for
handling collections for public agencies of a similar size, particularly with utility services and service
fees.
2. Related Experience (15%)
Experience in providing services similar to those requested herein; experience working with public
agencies; size of the agency; assessment by client references.
3. Key Performance Indicator/Reporting (15%)
Ability to track, measure, and report performance through clearly defined metrics.
4. Technology (10%)
Availability and the use of secure technology for customers and the City.
5. Compliance (10%)
Adherence to all applicable federal, state, and local laws and regulations governing debt collection
and data privacy, including FDCPA, CFPB Regulation F, CCPA/CPRA, TCPA, and FCRA. This includes
policies demonstrated, training, and internal controls to ensure lawful, ethical, and secure collection
practices.
6. Completeness of Response (10%)
Completeness of response in accordance with RFP instructions; exceptions to or deviations from the
RFP requirements; inclusion of required licenses and certifications.
7. Competitive Cost and Price (10%)
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Reasonableness of the individual firm-fixed prices and/or hourly rates, and competitiveness of quoted
firm-fixed prices with other proposals received; adequacy of the data in support of figures quoted;
basis on which prices are quoted.
8. References and Past Performance (10%)
Demonstrated ability to maintain positive customer relations and professional conduct throughout
the collection process. Feedback from current or past clients, especially in the utility sector.
The City reserves the right to select an agency to perform all of the work identified in the RFP, or only a selected
portion based on price and/or other factors.
Section III: Specifications/Scope of Service
The City of Coalinga intends to obtain the services of a full-service collection agency to provide Collection Service for
unpaid and delinquent accounts receivable to include, but may not be limited to:
1. Damage to City Property Invoices
2. Returned Checks
3. Utility Services
4. Service Fees
5. Miscellaneous Receivables
A. Specific Requirements for the Agency
1. The City has not had a collection agency since October 2024. There are 2,452 closed accounts eligible to
be sent for collections. Those accounts totaled $883,600. With the previous agency, the City sent an
average of $6,225.00 per month.
2. Agency shall make a minimum of two written or telephone contacts for each account (unless the account
clears sooner) within sixty (60) days of receipt of account. Agency shall provide in the proposal detailed
steps that will be taken once account is received from the City and number of contacts and procedures
that will be taken.
3. Agency shall make contacts with delinquent accounts under the name of the collection agency.
4. Agency shall submit status reports on a monthly basis and an annual report (on a fiscal year bases) July 1,
through June 30, comparing the activities to the previous fiscal year. These reports shall include data for
each account detailing the value of the current debt, money received, charges waived, interest charged,
balance due and date of last payment. A financial summary will also be required showing "period to date"
and "year to date" totals for pertinent information such as receipts, net accounts receivable, total
accounts receivable, and collection percentage. In addition, an aging report should be available in
summary and in detail. Agency shall provide copies of all available reports or have it available to the City
at any given time.
5. Agency shall conduct skip tracing on delinquent accounts. Agency to provide specific tools used to conduct
skip tracing.
6. Agency shall indicate policy on when delinquent accounts will be reported to the three major national
credit bureaus.
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7. Agency shall accept automated or manual transfer of delinquent payment information from the City of
Coalinga or other vendor's database. It is expected the agency will work, at no additional cost, with the
City of Coalinga and its software to ensure accurate and timely transmission of data.
8. Agency shall guarantee the confidentiality, security, and safety of all files and access, through secure
technology such as API or SFTP integration, Online portal for City and consumers, digital payment
capabilities, and reporting dashboards.
9. Agency shall maintain administrative, technical, and physical safeguards designed to protect the security,
confidentiality, and integrity of City data. Agency shall comply with PCI DSS and maintain SOC 2 Type II
certification or equivalent. All data must be encrypted in transit and at rest. In the event of a data breach
or security incident involving City data, Agency shall notify the City within seventy-two (72) hours,
cooperate fully in investigation and mitigation efforts, and bear all costs associated with required
notifications, credit monitoring (if applicable), and remediation.
10. All data provided by the City, and all data generated, collected, or maintained by the Agency in
connection with this agreement, shall remain the sole and exclusive property of the City. Agency shall
not sell, share, disclose, or otherwise use such data for any purpose other than performance of services
under this agreement without the City's prior written consent.
11. Agency shall provide detailed information regarding its collection process and methods.
12. Agency shall instruct consumers to submit payment to the collection agency. Any payments received at
the City will be forwarded to the collection agency. The collection agency will be notified within ten (10)
working days of any payment processed by the City.
13. Agency shall comply with all applicable federal, state, and local laws and regulations, including but not
limited to the Fair Debt Collection Practices Act (FDCPA), Consumer Financial Protection Bureau
Regulation F (12 CFR Part 1006), California Consumer Privacy Act (CCPA) and California Privacy Rights Act
(CPRA), Telephone Consumer Protection Act (TCPA), Fair Credit Reporting Act (FCRA), and all applicable
California laws governing debt collection practices.
14. Agency shall develop and implement Key Performance Indicators (KPIs), subject to City approval, and
provide quarterly performance reports. At a minimum, KPIs shall include recovery rates, timeliness of
collection efforts, reporting accuracy, and dispute resolution timelines. Agency shall meet performance
standards established by the City.
15. The City reserves the right, upon reasonable notice, to audit Agency's records, systems, and processes
related to the services provided under this agreement. Agency shall provide full access to relevant
records and personnel and shall cooperate fully with any such audit.
16. The agency will be fully responsible for maintaining accurate records of all correspondence, documents,
accounting records, transactions and other relative evidence. These records shall remain on file for a
period of at least seven (7) years. All records shall be made available to the City of Coalinga for review
upon request.
17. No work shall be subcontracted without the prior written consent of the City of Coalinga.
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18. Maintain professional and respectful communication with the City of Coalinga's customers. Ensure that
collection efforts do not harm the relationship between the customer and the City. Collection agencies
shall not initiate any legal action pertaining to any account without the prior written permission of the
City. No compromise settlement shall be accepted by the Collection agency without the City's written
consent.
19. Any settlement of principal or charges shall be agreed upon between the agency and the City, prior to
acceptance. The City shall support this in writing.
20. The City reserves the right to terminate the agreement, with or without cause, upon thirty (30) days
written notice. In the event of termination for cause, the City may terminate immediately. Agency shall
cooperate with the City to ensure an orderly transition of services and return of all City data.
Thank you for your interest in partnering with the City of Coalinga.
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