Debt Recovery Services CUADRS2023

This CUA is mandatory for the Perth metropolitan region and non-mandatory in the regions for State agencies.

Buying direct

Prices for this Common Use Arrangement (CUA) are pre-negotiated, and you will only pay if debt is recovered. You can Pick and Buy the specified services from the contractors without calling quotes or tenders – but remember the CUA rates are maximum rates and can be negotiated. Evaluate which contractor represents best value for money for your needs, then contact the contractor to make your purchase.

Although overseas debts* are non-mandatory, you should first consider using CUA Contractors however, you may choose to engage a Contractor outside of the CUA.

State agencies in the regions may choose to purchase from this CUA however, it is not mandatory for them to do so.

View the What will it cost? section to find out prices for the services you require.

Orders should be placed directly with contractors, using the Order Form. 

State agencies should be aware of the following requirements under review the Western Australian Procurement Rules as they apply to purchases from this CUA. The table below is a summary of the requirements, and State agencies are encouraged to review the WA Procurement Rules.

Procurement planning

Request development and contract formation

Contract management

Exemption from using this CUA

Procurement Frameworks are responsible for processing and approving all requests from State agencies seeking exemption from using a mandatory CUA. Requests for an exemption are considered on a case-by-case basis, and a requesting agency must be able to demonstrate that a business need cannot be adequately met by the relevant CUA.

Exemption requests should be directed to the Assistant Director Procurement Frameworks through an email to the contract manager in the first instance. Requests for exemption must be in writing via email and must provide sufficient explanation and background to enable the request to be considered. The requesting officer should be the Accountable Authority or delegate of the agency.

For guidelines on what to include in an exemption request, please refer to the Common Use Arrangements Procurement Practice Guideline.

As part of the tender process, contractors on this arrangement have provided details of, and have been evaluated on, their corporate social and environmental responsibility, and the initiatives they have in place to support this.

AMPAC Debt Recovery Pty Ltd

AMPAC’s suppliers are local businesses ranging from process servers and field agents, and legal advisers. These businesses in turn also contribute to the WA economy.

We have an open-ended timeline to providing job opportunities to residents of refugee, youth, Indigenous or disability status recognising that it is important to have representation and understanding of the barriers that these groups, may experience, especially in relation to our field of work. Our process aligns with the Equal Opportunity Act 1984.

ARMA Group Holdings Pty Ltd

• Local Resourcing - is from our West Perth Offices where all core services relating to the provision of services will be undertaken.
• Indigenous Employee Recruitment - our recruitment partner in Western Australia, Maxima, is committed to facilitating meaningful employment and vocational training opportunities for Indigenous Australians and positive outcomes for employers. This includes acting as a significant employer of indigenous trainees and apprentices, providing quality pre-employment training programs and providing effective mentoring and coaching services to indigenous employees.
• Use of Local Materials - 100% - it is expected that all materials to be used within our Perth Offices to deliver the services under this contract (including but not limited to, office equipment, IT infrastructure and stationery) will be sourced from local suppliers.
• Community Programs - as a Group, we see ourselves as an extension of our clients' brands, and this influences not only the way we engage with their customers but also our involvement with community groups and charities that they support. By way of example, in partnership with one of our long-standing clients, we sponsor the Ronald McDonald House Charities (RMHC). RMHC supports the families of seriously ill children during their stay in hospital through providing accommodation, meals and emotional support.

Baycorp (WA) Pty Ltd

Baycorp has an environmental policy that aims to integrate a philosophy of sustainable development into all the organisation’s activities and to establish and promote responsible environmental practices in its operations.

In line with this plan, Baycorp has implemented several initiatives aimed at reducing its carbon footprint and minimising our impact on the environment:

• Time and sensor activated air-conditioning
• Timed and sensor activated lighting
• Sensor activated bathroom taps
• Follow-me printing
• Recycling facilities in all offices

National Credit Management Limited (NCML)

NCML is committed to providing sustainable financial solutions delivered in a responsible fashion. It has a long-term partnership with Kildonan Uniting Care to promote respectful engagement with consumers and the proactive recognition and management of financial hardship. 

Recoveries Corporation Pty Ltd

The community has high expectations of financial services providers that go beyond minimum legal requirements. We are committed to meeting these expectations to ensure the success of our business and to protect our clients and other stakeholders. We pride ourselves on providing our customers with genuine and affordable financial solutions tailored to their unique financial circumstances.

This matrix table provides an overview of all contractors you can purchase from under the CUA and the services they have been contracted to provide. 

Contractors may have departures from, or additional terms and conditions to, this CUA. For further information please contact the contract manager.

Insurances

Contractors have the following insurances:

• Public Liability Insurance
• Professional Indemnity Insurance
• Workers Compensation insurance
• Fraud or Dishonesty insurance

Finance will monitor the contractor’s compliance with insurance requirements throughout the term of the contract. For further information please contact the contract manager.

Pricing

The prices quoted for this CUA are maximum prices, so make sure to negotiate lower prices using levers such as the value of debt you are likely to refer per annum, early debt referral, or debt volumes.

When selecting a debt recovery agency, make sure to look beyond pricing. Speak to each individual contractor and ask questions around their approach to hardship, system capabilities, recovery rates and the turnaround times of debts.

No early settlement discounts are offered by the contractors. The relevant fees and commissions associated with the recovery of outstanding debts will be billed separately to the customer; they are not off set against the amount recovered.

Applicable commission rates are calculated using the total debt referred. For invoicing purposes, this commission rate is then applied to the total debt recovered per invoicing period.

Commission rates in the Price Schedule are inclusive of GST.

Other Costs

Field calls

If authorised, the cost of a field call will be payable:

• regardless of whether the field call service is successful in locating the debtor; and
• regardless of whether the debt is later found to be unrecoverable.

Skip tracing

If authorised, the cost of advanced skip tracing will be payable:

• regardless of whether the skip tracing service is successful in retrieving the debtor’s contact details; and
• regardless of whether the debt is later found to be unrecoverable.

Legal action

Please make sure you have read the General Conditions of Contract (November 2022) before considering legal action.

The contract manager and CUA contractors are available to provide advice.

Overseas debt

If a debt recovery assignment involves pursuing a debtor in a country other than Australia, the contractor needs to seek the State agency’s approval in writing prior to progressing overseas debt recovery and incurring any reimbursable expenses.

The State agency decides whether to pursue an overseas debt further, based on the contractor giving:

• an estimate of the total extraordinary cost that will be incurred to pursue the overseas debtor, clearly identifying the debt recovery assignment.
• details of the extraordinary cost items supported by calculations, quantities, and substantiation of requirement to spend.
• advice and comments on the likelihood of success.

Payment by purchasing card

The Western Australian Government purchasing card (purchasing card) offers a quick and convenient method of payment allowing goods and services to be efficiently purchased.

Always remember to inform the contractor that you will be paying by purchasing card at the time of ordering the product or service, and ensure they clearly understand that they must send the tax invoice directly to you, the cardholder.

Buying tips

• Buy from a range of debt collection agencies or set up a sole supplier arrangement.
• Before selecting a contractor, research how much debt you are likely to refer in each referral band – and think about the main socio-demographic that you collect debt from. This will give you a more accurate picture of your agency’s requirements and will help you negotiate discounts and choose which supplier best meets your needs.
• Consider aspects beyond pricing. Speak to each individual contractor and ask questions around their approach to hardship, system capabilities, recovery rates and turnaround times of debts. You can ask about the contractor’s write-off procedures and free services they can offer you. Make sure you enquire about the method of sending out debt requests – is this done in bulk or manually? Are debt requests checked for accuracy?
• Improve your lead times: early referral increases the chance of recovery and gives you potential leverage to negotiate more competitive rates. Look at your internal systems and processes to determine whether you can refer debt earlier. You can ask your contractor for advice on your internal debt recovery processes.
• Talk to the contractor to discuss the level of debtor detail they need – and you can provide. The more detail you can provide, the higher the chance of recovery.
• State agencies with special and unique requirements may vary the specifications, such as reporting frequency, non-standard work, and mechanisms for varying prices. You can consult with the contract manager if you require a variation to the standard specification using your Order Form.
• A major benefit of this CUA is risk mitigation and compliance with the requirements of the Financial Management Act 2006 and the Treasurer's Instructions 202 and 807. The CUA contractors have systems in place to help you comply with your obligations under these requirements. 

Buying direct

Prices for this Common Use Arrangement (CUA) are pre-negotiated, so you can pick and buy the specified products from the contractors without calling quotes or tenders. Remember the CUA rates are maximum rates and can be negotiated.

View the Price Schedule to find out prices for the services you require. Evaluate which contractor best suits your requirements and offers best value for money, then contact the contractor to make your purchase.

Orders can be placed directly with contractors, using the Order Form.

Active contract management pays off

• Check your invoices to ensure the correct commission is being applied.
• Manage your contract term – keep an eye on your contract expiry date.
• Test the market on a regular basis to see what the other contractors are offering.
• Talk to your contractor to discuss the level of debtor detail they need – and that you can provide. The more detail you can provide, the higher the chance of recovery.
• If you are unhappy with a service, contact the contractor and clearly outline the issue. Request an explanation and commitment to resolve the matter. The contract manager may be contacted to further facilitate the process and discussions.

For further information, please refer to Finance’s Feedback Management System