Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract No. 6006947 with RSI Enterprises, Inc., to provide Payment Plan Collection Services for Delinquent Receivables, for a duration of two (2) years with an option to extend. This is a revenue contract with no payments made to the vendor. The vendor is compensated by retaining 16% of all amounts collected. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of February 19, 2025
Item No.: 2025-29
Contract No: 6006947
Contractor: RSI Enterprises, Inc.
Contractor Address: 5440 W. Northern Avenue, Glendale, AZ 85301
Contract Amount: $0.00
Contract Term: 3/1/25 - 2/28/27 (with option to extend)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6006947
Payment Plan Collection Service for Delinquent Receivables
RSI Enterprises, Inc.
MOTION
Upon recommendation of Marqaicha Welch, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract No. 6006947 with RSI Enterprises, Inc., to provide Payment Plan Collection Services for Delinquent Receivables for a duration of two (2) years with an option to extend. This is a revenue contract with no payments made to the vendor. The vendor is compensated by retaining 16% of all amounts collected. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
Payment Plan Collection Agencies are in business to recover revenue and provide accessible, convenient, and flexible payment plans to customers. Payment plan solutions are designed to improve customer payment experience, reduce the economic consequence of non-payment, and increase revenue for governments and utilities.
DWSD intends to send delinquent receivables, such as Water, Sewer, Drainage (stormwater), Fireline, Industrial Waste Charge and Associated Penalties, aged beyond 60 days, with a total outstanding debt of approximately $30,000,000.00. By signing up and staying current with the vendor payment plan and with their DWSD bill, customers will avoid further late fees and water service turnoffs.
This will be a revenue-based contract. The contractor will retain a 16% fixed percentage amount from the collection of these delinquent accounts.
The delay in taking this to the Board was due to getting the Promise Pay payment plan in place to coincide with Easy Pay. Now that the program is active, this new collection service agency will focus on delinquent receivables aged beyond 60 days.
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Proposals (RFP) per Requisition 517214, which was fully approved on 6/3/24. The RFP was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 31 calendar days (4/12/24 - 5/13/24). The solicitation was extended once to allow for vendor questions to be answered. MITN published this opportunity to 121 companies and 29 firms downloaded the bid package. Two responses were received.
The Evaluation Committee comprises Managers from Meter Operations, Customer Service and Finance. Evaluations were based on the following criteria:
• Ability to perform work
• Work plan & organization
Each voting member of the Evaluation Committee independently reviewed, evaluated, and scored the two proposals, which were deemed responsive and responsible. Procurement took the scores and tallied up the rankings based on the scores. Procurement then determined the highest ranked responsive and responsible Proposer.
|
RANK |
PROPOSER |
SCORE |
EQUALIZATION |
|
1 |
RSI Enterprises |
2510 |
None |
|
2 |
Universal Credit |
1785 |
None |
The Evaluation Committee and Procurement recommends the highest-ranked responsive & responsible Proposer, RSI Enterprises, Inc. RSI Enterprises clearances expire on 4/25/25. A formal contract document is being sent to the vendor for review and signature.
SUMMARY
A. Contract Number: 6006947
B. Contractor: RSI Enterprises, Inc.
C. Contract Term: 3/1/25 - 2/28/27
D. Contract Amount: $0.00 (Revenue Contract)
E. Funding Source: N/A
This contract was presented to the BOWC Finance Committee on February 5, 2025. Per the DWSD Procurement Policy, no additional approvals are required.