This public procurement record has 2 releases in its history.

Award

02 Feb 2024 at 20:12

Tender

21 Jun 2023 at 16:47

Summary of the contracting process

Thames Water Utilities Limited, a water service company based in Reading, United Kingdom, has recently completed a procurement process for Debt Collection Agencies. The contract involves collecting unrecovered debt through various stages, including commission-based solutions, litigation services, and field services. The tender offers multiple lots, each with specific requirements and contract durations. The procurement method used was a negotiated procedure with prior call for competition, aiming to select suitable providers through a framework agreement. The award decision was communicated after a standstill period of at least 10 days.

This tender by Thames Water Utilities Limited presents business growth opportunities for debt collection agencies and service providers in the collection industry. Companies adept in handling debt collection, litigation processes, and field services are well-suited to compete for the different lots on offer. The contract offers a 3-year duration with potential extensions, providing stability and growth prospects for successful bidders. Interested businesses should review the detailed requirements for each lot, consider the performance-based allocation approach, and assess the suitability of their services to meet Thames Water's debt recovery needs.

How relevant is this notice?

Notice Title

Debt Collection Agencies

Notice Description

As part of our commitment to collecting unrecovered debt, we have redesigned our customer debt journey focusing on delivering "right customer, right treatment path" and ensuring our financially vulnerable customers are supported at all stages of the journey. We intend to outsource our unrecovered water debt, provided mainly on a commission basis with some specific customer outcomes chargeable on a fee structure. Both collect and trace solutions are required within various parts of the portfolio. Litigation and field services will also be required at the later stages of the process, where any unrecovered debts will be assessed and selected depending on their suitability. With the cost of living rising, we recognise the importance of collecting debt in a socially responsible manner and as result we are seeking partners who are committed in supporting our customers on this journey while helping Thames Water achieve our goals. We are offering a 3-year contract with the ability to extend up to an additional 2. Field service will be offered at an initial 1-year contract. After year 1 there's a potential for this to be brought inline with the with other contracts mimicking their contract terms.

Lot Information

Placement 1 - Active and Final including trace and collect

Lot 1 will see circa 218 thousand active customer accounts and circa 54 thousand closed customer accounts placed annually, spread across 8 segments. 6 of these segments relate to the active customers and are allocated to the segment based on Equifax scoring. 2 of the segments relate to the closed customer accounts and are split by the accounts that have a forward address and require a collect solution and those that have no forward address and require a trace and collect solution. The successful supplier will be required to move the accounts with no customer contact from the collect strategy to the trace and collect strategy within their own system after the placement period has expired. Cases in all segments will be placed to the successful supplier daily along with account updates, closures and any new debts that are now at the recoveries stage for customers previously placed. Performance scorecards will determine the allocation % throughout the contract to award the higher performing suppliers with higher allocations.

Options: This contract will be for 36 months with a further two 12 months optional extension(s).

Renewal: This contract will be for 36 months with a further two 12 months optional extension(s).

Placement 2 - Active and Final

Lot 2 will see circa 156 thousand active customer accounts and circa 47 thousand closed customer accounts placed annually, spread across 5 segments. These accounts have been returned as uncollected from Lot 1. 4 of these segments relate to the active customers and are allocated to the segment based on Equifax scoring. The other segment relate to the closed customer accounts and require a trace and collect solution. Cases in all segments will be placed to the successful supplier daily along with account updates, closures and any new debts that are now at the recoveries stage for customers previously placed. Performance scorecards will determine the allocation % throughout the contract to award the higher performing suppliers with higher allocations.

Options: This contract will be for 36 months with a further two 12 months optional extension(s).

Renewal: This contract will be for 36 months with a further two 12 months optional extension(s).

Placement 3 - Litigation - Active and Final

Lot 3 will see circa 73 thousand active customer accounts and circa 40 thousand closed customer accounts placed annually for assessment of litigation potential. Accounts that are unsuitable for a litigation process will be closed and returned at no cost to Thames Water, and those selected to move into strategy will be initially placed through a pre-litigation strategy before moving into a formal litigation process. We expect a 3 staged approach and the customers to be reassessed before moving onto each stage and those not suitable to move to be closed and returned at no cost to Thames Water: Pre-Litigation = Contact attempts to resolve the debt with the customer before legal processes begin Litigation = Formal LBA/PAP and the issuing of the claim and judgement Enforcement = Enforcement end to end process. Closed customer accounts may require a trace solution in addition. All customer contact, plan management and payment processing to be handled by the supplier. Cases will be placed to the successful supplier once per month with daily account updates, closures and any new debts that are now at the recoveries stage for customers previously placed. This lot will be awarded on a commission basis, with alternative arrangements for defended cases which will be agreed and charged on a case by case basis.

Options: This contract will be for 36 months with a further two 12 months optional extension(s).

Renewal: This contract will be for 36 months with a further two 12 months optional extension(s).

Placement 4 - Field Services - Visit and Call Handling

Lot 4 will receive active customer accounts only that are unsuitable for a litigation process and or that have been closed and returned throughout the litigation process with an unsuccessful outcome. Placements will be made monthly and accounts should be assessed for suitability for a field visit. The volume of accounts passing through into the field strategy should be a joint decision between the supplier and Thames Water each month. Performance will be managed via KPIs assessing the positive outcomes of visits with a strong focus on governance and oversight to ensure the right customer outcomes. All customer contact, plan management and payment processing to be handled by the supplier. The commercial structure is expected to encourage a culture of fair customer outcomes and value for Thames Water.

Options: This contract will be for 12 months and if successful, the contract will continue for an additional 24 months with a further two 12 months optional extension(s).

Renewal: This contract will be for 12 months and if successful, the contract will continue for an additional 24 months with a further two 12 months optional extension(s).

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-03d858
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/003615-2024
Current Stage
Award
All Stages
Tender, Award

Procurement Classification

Notice Type
Tender Notice
Procurement Type
Framework
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Negotiated procedure with prior call for competition
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

79 - Business services: law, marketing, consulting, recruitment, printing and security


CPV Codes

79940000 - Collection agency services

Notice Value(s)

Tender Value
£17,500,000 £10M-£100M
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
2 Feb 20242 years ago
Submission Deadline
6 Jul 2023Expired
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
Not specified - Not specified
Recurrence
Between 2 and 5 years

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
THAMES WATER UTILITIES LIMITED
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
READING
Postcode
RG1 8DB
Postcode Area
Reading
Country
England

Major Region (ITL 1)
TLJ South East (England)
Basic Region (ITL 2)
TLJ1 Berkshire, Buckinghamshire and Oxfordshire
Small Region (ITL 3)
TLJ16 Berkshire West
Delivery Location
TLI London, TLJ South East (England)

Local Authority
Reading
Electoral Ward
Thames
Westminster Constituency
Reading Central

Supplier Information

Number of Suppliers
8
Supplier Names

1ST LOCATE (UK) LIMITED

Advantis Credit Limited

Arvato Financial Solutions Limited

BPO Collections Ltd

Moorcroft Debt Recovery Limited

Moriarty Law Limited

Resolvecall Ltd

UK Search Limited

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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