FORM OF TENDER

FOR THE PROVISION OF

SHERIFF OFFICER AND DEBT COLLECTION SERVICES

CONTRACT NO. SC651

PERIOD:-1ST NOVEMBER 2008 TO 31STOCTOBER 2013

TO FIFE COUNCIL

I(WE):
of:

(hereinafter called "the Contractor") hereby offer to supply to Fife Council (hereinafter called "the Council"), in accordance with the General and Special Conditions of Contract annexed, the products, articles, goods, materials or services mentioned in the Schedule annexed, in respect of which I (We) hereby submit a tender at the rates and/or prices shown in the said Schedule for the period above mentioned.

Dated This Day: / Month: / Year:
Position:
On Behalf of:

NOTE:Tenders will not be considered unless received electronically in the secure postbox not later

than:

1500 HOURS on

MONDAY 25TH AUGUST 2008

FIFE COUNCIL

CONTENTS

  1. TENDER INFORMATIONPages 3-22
  1. GENERAL CONDITIONS OF CONTRACT Page 23-33
  1. SPECIAL CONDITIONS OF CONTRACT Page 34-37
  1. TENDER COMPLETION GUIDANCEPage 38-39
  1. TENDER SCHEDULE:Page 40 -41
  1. APPENDIX 1 CODE OF PRACTICEPage 42 -43
  1. METHOD STATEMENTPage 44
  1. HEALTH & SAFETY QUESTIONNAIREPage 45 -46
  2. RACE RELATIONS QUESTIONNAIRE Page 47 -48
  3. REFERENCES Page 49
  1. QUALITY Page 50
  1. SUSTAINABILITY & ENVIRONMENTAL INFORMATIONPage 51 -52
  2. CONTACTSPage 53

TENDER INFORMATION

CORPORATE DEBT POLICY

INTRODUCTION

This document outlines our the Council’ policy for the collection of all debt due by businesses, individuals and organisations. owed to it.

Commits usthe Council to operating in a fair, and equal and objective way when recovering debts.

Requires us officers to work with debtors and their representatives, taking into account the personal circumstances of each individual , setting realistic repayment amounts.

STATEMENT OF INTENT

We The Council considers that people have a responsibility to pay all amounts properly due to us. To achieve this we will:, and that debts must be met.

The Council

Encourages people to pay regularly and thereby prevent attempts to dissuade them from a culture of non-payment.

The Council Encourages people to tell us as soon as they have problems paying.

The Council will Focus onbe concernedabout the ability to pay whichever rather thanthe type of debt is due owed.

The Council Acknowledges and respects people’sthe debtor’s obligations to theirhis/her dependants.

The Council is aware of the need to Offer a sensitive and flexible approach to debt collection whilst ensuring that monies due are effectively and efficiently recovered for the benefit of the whole community.

The CouncilAims to achieve a fair balance between the claims of competing creditors, in recognition of the need for peopledebtors to maintain an acceptable standard of living.

Staff in all Services will Wwork closely together to ensure that a co-ordinated approach to debt is debt is taken by all Council Services

and to Provide advice on available concessions and charge reductions e.g. housing and council tax benefit, where appropriate. .

Offer Referral will be made for specialistt, independent debt advice, using our Trading Standards Money Advice Service, and Citizens Advice Rights Fife (CARF) wheren appropriate.

required.The Council will aim toTreat all debtors as individuals and to consider, wherever possible, the individual’s circumstances when taking action to recover debt.

The Council willTryseek to reach satisfactory arrangements for payment of debts at all stages of recovery recognising that where this cannot be achieved. However, unless there is contact with an individual and a satisfactory arrangement for payment is reached and maintained, we will take progress recovery action using the appropriate legal powers.

The Council aiOffer a range of easily accessible payment methods.

ms to be both proactive and reactive in its attempts to minimise debts.

CODE OF PRACTICE FOR COLLECTING DEBTS

Types of Debt Covered by the Policy

This policy applies to all debt owed to the Council.

Communication and Contact with the Council

WeThe Councilwill willprovide:

HelpAssistance for people with language and sensory communication difficulties;

Send cCorrespondence to debtors about debts which will encourage peoplethem to make contact in person or by phone at an early stage of the recovery process.

All suchWcorrespondence will bewritten in ‘Plain English’ and providewill contain, where appropriate, information about where to get independeent financial advice;

Provide cClear information about all aspects of collection and debt recovery includingand in particular give information as to where advice and help is available;

provide sSupport to advice agencies, recognising the intermediary role such agencies play in achieving a common goal.

Collection and Recovery Process

WeThe Council will:

Provide a wide variety of payment methods and maximise access to payment facilities;

Actively encourage early contact in the recovery process;

Provide and make widely available clear and concise information about the statutory recovery processes available to us and our it must use and its approach to and provisions for people with financial difficulties.

Use the full range of statutory powers available to us to obtain payment.

Make every effort to adhere to the timetable/ limits we it sets for its recovery procedures.

The Council and its collection agents will Ccomply with the Office of Fair Trading guidelines on debt collection.

Repayments

WeThe Council will negotiate with debtors for repayments, taking account of personal circumstances, where appropriate.

We will take account of cCurrent expenditure, other debts and payment proposals from money advice agencies, recognised by the Council, will be taken into account when negotiating repayments.

Debt Collection Agents and Sheriff Officers

Collection agents and Sheriff Officers appointed by the Council will operate within the Code of Practice set by the Council and comply with the Office of Fair Trading guidelines on debt collection.

.

Benefits, Concessions and Reductions

WeThe Council will, as far as possible, ensure that debtors maximise their entitlement to benefits, concessions and/or reductions in charges due to it.

The Council will ensure that Ppublicity about state benefits will be is available in all Council offices dealing with debt.

The Council will advise debtors, Wwhere appropriate, households will be advised of the general availability of means tested benefits.

Customer Care

In it’sits approach to recovery action, wethe Council will take account of the whole financial situation of the debtor and collect debts in a sympathetic and efficient way.

Monitoring Quality

WeThe Council will ensure that people a re encouraged to make comments, complaints and suggested improvements on debt collection matters.

Late or Missed Payments

All payment arrangements will be be made on the basis that payment will be made as agreed. Such arrangements will be closely monitored, with appropriate further recovery action being taken forin respect of late or missed payments.

All Council charges are payable by their stated date. Failure to pay by the due date will result in the swift issue of reminders. Arrangement monitoring will take place and an account may have further action taken on it even though payment is received shortly after the due date.

Individuals are responsible for ensuring that payments reach us by the due date. Those who anticipate problems in making payment on timee responsibility for making sure that payment reaches the account by the due date remains with the debtor, however, customers will be actively encouraged to contact us to discuss alternative payment arrangements.the Council

if they anticipate problems in meeting any instalment.

AN EFFECTIVE POLICY

For the policy to be effective it is vital that we will ensure:

Accurate, clear and prompt billing arrangements:

A quick response to changes in circumstances:

Fast and accurate delivery of entitlement to any benefit, concession or charge reduction:

An ability to follow through on publicly known enforcement actions within previously publicised timescales.

Subject to the Data Protection Act share relevant information between Services.

The Benefits of a Corporate Debt Policy

We believe that a corporate debt policy will:

Enable people to come to realistic repayment agreements:

Make sure that when we do take enforcement action it is likely to be more effective:

Mean that, by being more approachable, people will be more willing to make contact at an early stage when they first face difficulties.

Avoid the accumulation of individual debt before it becomes unmanageable.

IMPLEMENTING AND MONITORING

All Services involved in the raising of charges and their collection will be responsible for ensuring that this policy is implemented and monitored.

THE POLICY IN PRACTICE

Services with the responsibility for collecting debt will normally deal with their own customers. However, where a customer has multiple debtdebts due to the Council e.g. council tax and rent, or has multiple debtors of which the Council is one and is finding it difficult to come to an arrangement to suit all parties, the debtor will be referred to the Trading Standards Money Advice Service or CARF, whichever is appropriate.e.

If the debtor is agreeable, the Money Advice Service/CARF will compile a financial statement, ascertain all debts and recommend a repayment programme for all Council debts. This will be carried out in accordance with the British Bankers Association (BBA) guidelines.

All debts will be dealt with in the same way except that some will be prioritised depending on impending diligence e.g. rent and council tax arrears would be a priority debt. Similarly, secured loans, unpaid fines and fuel debts will be prioritised because of the consequences of non payment.

Debtors will be expected to provide evidence of income and debts in support of any payment arrangement.

Payment proposals provided by other advice agencies e.g. Citizens Right Advice Fife (CARF) and Citizens Advice Bureaux (CAB) will be accepted if they have been calculated in accordance with BBA guidelines.

Debtors will be expected to notify Services or the Money Advice Agency that set up their payment programme of any material changes in circumstance which could impact on their level of payments.

Services will establish timescales in which payment arrangements will be

reviewed.

Services will retain the right to withhold any future service provision in the event of non or continued late payment.

BAD DEBT

Once the recognised methods of debt collection in relation to particular debts have been exhausted, the Executive Director of Finance and Procurement, shall be empowered to write off any such sums as bad debts. Individual debtors due in excess of £50,000 will be reported by the Executive Director of Finance and Asset Management to the Policy, Finance and Asset Management Committee and housing rent bad debts will be reported periodically to the appropriate committee by the Head of Housing.

The Executive Director of Finance and Procurement shall present an annual summary of bad debts, to the Policy, Finance and Asset Management Committee.

The Executive Director Finance and Procurement or the Executive Director Performance & Organisational Support, shall lodge claims with the appropriate person (including liquidators, administrators, administrative receivers, supervisors of compositions or schemes, trustees in sequestration and trustees under a trust deed for creditors) in relation to sums due to the Council.

Finance and Procurement Service

Fife House

Glenrothes

Date 15 April 20065

  1. General Information

Fife Council is the Local Authority responsible for administration of Council Tax, Non-Domestic Rates and Residual Community Charge in Fife. Fife is the third largest Council in Scotland with a population of 358,930

There are 165,404 domestic properties in Fife, with 158,654 of these properties chargeable.

The Council's non-domestic rates team have responsibility for the assessment, billing collection and recovery of all rates charges on behalf of Central Government. There are approximately 12,500 non-domestic properties in the area.

To comply with the appropriate legislation, including the principles of “Striking the Balance”, a new approach to Debt Management and the new Debt Arrangement and Attachment (Scotland) Act 2002, the Council proposes to implement a more streamlined approach to the recovery of Council Tax. This will incorporate arrangements that will include the Council’s in-house recovery team, Sheriff Officers and Recovery Agents.

Fife Council is currently divided into three Sheriffdoms, and the area will be divided into 3 areas which will be awarded to one or more Contractors.

The Council’s Collection Team will continue to be involved in the administration and collection of Council Tax and Non-domestic Rates, with the overall responsibility for performance measurement and management, remaining with the Recovery Teams. It will be a requirement that certain recovery measures and diligences will only be carried out after consultation with the Council.

The initial Contract will be for 5 years and an option to extend the Contract period for a further two years will be at the sole discretion of Fife Council and will be subject to a satisfactory performance review.

During 2006/07, 18,000 council tax accounts, with a value of £9.9m and 1019 non-domestic rates properties, were passed over to Sheriff Officers for collection and diligence.

Accounts currently with the existing Sheriff Officers will be passed to the successful Tenderers on a phased basis after negotiation with all parties.

  1. Service Specifications

2.1Introduction

2.1.1Fife Council intends to establish a 5 year Contract for the provision of Debt Recovery and Diligence Services for the collection of Council Tax and Non-domestic Rates, with an option to extend on an annual basis for a further two years at the sole discretion of the Council.

2.1.2Tenders are invited for all or any part of these services.

2.1.3The Tender will be for:

  • Collection of Arrears at Summary Warrant;
  • Provision of Sheriff Officers duties and diligence;
  • Training.
  • Trace & Collect Services

2.1.4The successful Contractors will be responsible for the timeous, effective collection of Council Tax and Non-domestic Rates with associated accurate information.

2.1.5The use of effective debt recovery and diligence methods which comply with the principles of “Striking the Balance” and appropriate legislation, together with Council directives to maximise income to the Council while creating a reduction in the current cost of collection are a requirement.

2.1.6The Council operates over a geographic area which is served by 3 Sheriff Courts. It is preferable that any organisation appointed to work in this area, maintain a local office within Fife.

2.1.7The Contractor in executing the Contract, will at all times comply with the legislation in force during the duration of the Contract.

2.1.8The Contractor must comply with all specifications. A failure to do so may result in the termination of the Contract.

2.2Scope of Requirement

2.2.1The operational requirements as defined in this section are intended as a statement of the basic criteria that are seen as necessary to provide the service required. Whilst the requirement should be entirely met by any proposed service proposal, they should not be seen as an exclusive definition nor as a rigid prescription of how the service should be provided.

2.2.2Tenderers may make any alternative proposals they consider beneficial on technical and/or financial grounds. The reason for and effect of any such alternative proposals must be fully explained in the Tender response.

2.2.3Any aspects of the service that cannot be met must be clearly identified from the outset. Any Tender involving peripheral cost outwith the Contract price must be clearly identified.

2.3Code of Conduct

Fife Council has a requirement to providing a Best Value quality service to the citizens of Fife.

2.3.1The Contractor will comply with the law at all times and must not misrepresent or misquote the law at any time. Any changes in legislation will be implemented within a reasonable timescale, agreed between the Council and the Contractor. Any doubt over interpretation of the law shall be referred to the Council’s Revenue Manager or designated officers for clarification and instruction.

2.3.2The Contractor will comply with any instruction given by the Council’s Revenue Manager, or designated officers, other than those that the Contractor considers will prejudice the rights of debtors or the Contractor under the law, in which case the Council must be advised within 24 hours.

2.3.3The Contractors will ensure all enquiries from elected representatives, media representatives or senior representatives of government departments are dealt with in an appropriate manner and within agreed timescales. Any response must be agreed in advance by the Council’s Revenue Manager or designated officers and copies passed to the Council as appropriate.

2.3.4The Contractor’s employees or representatives must act in accordance with the Council’s Code of Practice.

2.3.5The Contractor’s employees or representatives will carry with them at all times, a copy of the letter of authorisation issued by the Council’s Revenue Manager or designated officer, that they are acting on behalf of the Council in respect of debt recovery and/or diligence proceedings. When they visit debtor’s premises they will introduce themselves and show identification issued by the Contractor. Identification will include a photograph of the visiting employee or representative. A sample identification card should be included in the Tender response.

2.3.6The Contractor will, in pursuance of the service, use documentation, letters, visiting slips and cards written in plain English. Copies should be supplied as part of the Tender response.

2.3.7The Contractor will be responsible for the cost of paper, printing, folding, enveloping, postage and distribution of all their stationery, payment documents, arrears notices and reports as necessary. They will also be required to distribute, at no additional cost to the Council, associated information and documents as produced by the Council and the Scottish Executive.

2.3.8The Contractor, in cases where English is not the first language of the debtor, will offer the facility of an interpretation service. Please give details of interpreting service (including sign language) which will be available to the customer. Such a service is available from the Council. However, any fee incurred will be agreed with, and borne by, the Contractor.

2.3.9The Contractor will take account of sensitive issues (for example serious illness, learning difficulties, recent bereavement, low-income households, etc). If there is any doubt regarding action to be taken on any particular account, a report should be passed to the Revenue Manager or designated officer, who will determine further action.