Objectives

The primary objective of this tender is to procure specialised debt collection services for the Overberg District Municipality. The aim is to recover all outstanding debts owed to the municipality through the engagement of qualified debt collection attorneys or registered debt collectors, utilizing a dedicated debtor management system. The service provider is expected to maximise collection efforts on all handed-over accounts, with an emphasis on aggressive and specialist skills to ensure effective recovery over a period of 11 months.

Scope

The scope of work includes:

• Recovery of all outstanding municipal debts via specialised debt collection attorneys or registered debt collectors.
• Use of a dedicated debtors management system to track and manage accounts.
• Management of debtor accounts in line with the municipality’s credit control policy, including aged debt management.
• Continuous updating and purification of customer information through multiple data sources.
• Provision of monthly statistics on successful and unsuccessful notifications (SMS, MMS, email, post, registered letters).
• Updating customer records to facilitate communication and marketing efforts.
• Analysis of data and monthly reporting on arrears and collection progress.
• Within three months of receipt, reporting on accounts that failed collection, with reasons and recommendations.
• Work to be carried out only upon receipt of written instructions or official municipal orders.
• Work to be performed on a “no success no fee” basis, with a maximum commission of 10% or less on successfully collected debts.

Technical Requirements

The technical requirements include:

• Engagement of qualified debt collection attorneys or registered debt collectors with a dedicated debtor management system.
• Ability to handle high volumes of debtor accounts, including aged debt in line with municipal policies.
• Regular updating and maintenance of customer information, with monthly reporting.
• Provision of statistics on notifications sent and responses received.
• Analysis and reporting on debt recovery efforts, including failure reasons and recommendations.
• Work to be performed only upon official instructions, with clear documentation and authorisation.
• Collection on a “no success no fee” basis, with transparent commission rates.

Skills Requirements

The service provider must demonstrate:

• Relevant experience in municipal debt collection, with proof of years of service in the field.
• High-quality service offerings, evidenced by references and satisfied client testimonials.
• Capacity and resources, including skilled staff and support personnel, to manage large volumes of debt collection.
• Technical capability to operate a dedicated debtor management system and perform data analysis.
• Ability to provide detailed monthly reports and analytics on collection progress.
• Proven track record of successful debt recovery, with documented previous projects and references.
• Compliance with all legal and contractual obligations, including confidentiality and data security.