Debt Broker. HM Revenue & Customs (HMRC) is looking to carry out a tender exercise to appoint a provider who will assist in running a trial exercise to test the costs and benefits of using a debt broker/panel manager as an intermediary between HMRC and up to ten Debt Collection Agencies (DCAs). In 2011 HMRC put in place a fully enabled framework contract (that can be used by other central government departments and executive agencies) for debt collection agency services. HMRC now wish to trial the use of a “debt broker†to manage the existing DCA panel. The use of a debt broker is expected to: • Reduce the overall cost of debt collection through more effective management, monitoring and control of DCA placement activity; • Improve debt recovery rates through the more effective use of available data; analytical tools; and/or market knowledge; to improve targeting of intervention activity by DCA’s; • The broker will be expected to provide a complete managed service to include, but not be restricted to, first and second placement decisions, Performance Management, Management information and reporting, query management, audit and assurance, invoice checking and reconciliation. • The debt broker would receive debt data of approximately £150 - £200M from HMRC by secure data transfer and upload this to a secure analytics environment. Once the debt is segmented/batched the broker will send the debts to DCAs for collection. The trial will run for a period of 6 months, with an interim review stage after 3 months where HMRC reserves the right to terminate the trial. HMRC provides no guarantee that it will award the trial and reserves the right, once the whole life costs have been established, to not award the trial exercise. The objectives for this trial are as follows : To evaluate any benefits that using a panel broker might bring which may include : Maximising recovery rates for debt collection, Reducing HMRC internal costs (management overhead for DCA activity), Driving down commission charges, Developing an understanding of the skills and tools panel brokers employ and how these contribute to the DCAs’ performance in collecting tax debt and establishing to what extent these techniques (for example, segmentation) could be employed by HMRC to aid wider HMRC debt recovery. To determine whether the benefits outweigh the costs involved. To understand whether the use of a debt broker creates any additional business risks, for example to data security. To understand whether the totality of risk and possible reputational impact is outweighed by financial benefits/increased recovery rates and reduced costs. The trial is expected to start in February 2013 and end in August 2013.
Ref: GB-Salford Debt Broker Trial,
HMRC
5th Floor West Ralli Quays,3 Stanley Street
Salford
M60 9LA
Steve Walton
01618270129
ralph.oliver@hmrc.gsi.gov.uk
0161 827 0270
Greater Manchester
Contract value: 1000000.00 - 5000000.00GBP
Published: 3 Dec 2012, Receipt by: 7 Dec 2012
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