A framework for debt resolution

RM6226 exists to give people multiple options when faced with often the most financially unstable period of their lives.

This framework agreement was designed to provide ethical and fair outcomes for citizens in vulnerable situations by bringing together a range of debt recovery solutions and data services into a single commercial agreement. It will run for four years from 2021 and will expire in December 2025.

The Debt Resolution Services (DRS) framework is aligned with the cross-government debt management strategy. It aims to provide a more consistent and unified approach to making sure that taxpayers money is spent in the most efficient and effective way.

All UK public sector organisations can use this agreement including central government and their arm’s length bodies and agencies, the wider public sector and third sector, local government, health and education, emergency services including police, fire and rescue, house associations and charities.

The agreement has 20 lots. Each lot will provide a different type of service, such as managed debt collection agencies, a range of data and analytics solutions, and enforcement agents, or bailiffs (where you will engage with the enforcement agents directly).

As well as this, managed enforcement agents (where a single managed service provider manages a panel of enforcement agents on your behalf), litigation, auctioneers, process servers (individuals or organisations that physically deliver legal documents on your behalf), and a range of spend analysis and recovery services are included.

What are the benefits?

There are numerous benefits that come with the framework agreement. Firstly, Crown Commercial Services (CCS) said it ensures values for money and provides debt recovery solutions which are aligned with cross government debt management strategy.

Also, CCS said they provide high quality services with the support of their subject matter experts. The agreement also provides access to a range of high quality and highly capable suppliers who are committed to providing excellence, as well as the best in-class suppliers selected using in depth market insights, based on fair and open competition.

Another benefit is the broad range of data solutions. Strong collections and recoveries performance is promised, meaning the agreement will maximise the amount of debt recovered.

Finally, it is endorsed by major debt charities and committed to providing social value and achieving fair outcomes.

All suppliers for this agreement have committed to comply with the Procurement Policy Note 06/21: ‘Taking account of Carbon Reduction Plans in the procurement of major government contracts’ as required. If a supplier is required to publish a carbon reduction plan, you can find it on their individual supplier details page.

What are the lots?

Here we go into more detail on the lots offered in this agreement. There are a total of 52 suppliers on this agreement.

Lot 1, which expires on 13 December 2025, provides access to two Managed Service Providers (MSP). Each MSP will manage a panel of Debt Collection Agencies (DCAs) who are FCA authorised and regulated. The DCAs offer desk based collection services, contacting your customers directly to arrange repayment of outstanding debts.

The MSPs will use data to create debt recovery strategies based on customers’ individual circumstances. They will then place the debt with the most appropriate DCA and will monitor their performance and adjust placements accordingly to maximise recovery rates. The DCAs will work directly with your customers and ensure debt is collected sustainably and fairly, including identification and ethical treatment of vulnerable consumers.

Lot 2 provides a range of data, report, search, and alert services to maximise debt collection and help to prevent fraud and error. You can also use these services for risk analysis and intelligence purposes.

This will help you to get an informed view of a citizen’s profile and will allow you to identify vulnerable customers, make informed decisions about how you can collect debt fairly and effectively.

In addition, Lot 3 helps to access automated data analytic tools to assess and validate personal financial circumstances, income and expenditure. These services can help you to identify vulnerable customers, as well as make informed decisions about a citizen’s ability to repay debt facilitating more sustainable repayment plans, resulting in greater collections.

It also incorporates a mix of multi-credit reference agency (CRA) data, open-banking, and automation software.     Next up is Lot 4: Fraud, Error and Debt (FED) Advisory. This provides fraud, error, and debt advisory and consultancy services from subject matter experts.

Additionally, Lot 5 is focused on enforcement services. It provides fraud, error, and debt advisory and consultancy services from subject matter experts. The CCS’ experts can support the review and improvement of existing fraud, error and debt processes and services. They can also help to design new processes and services to help maximise debt collection and peripheral services.

How can I buy?

You can buy from this agreement through further competition with the option to direct award from Lots 6 to 7, Lot 15 and 19 or Lot 20. In limited cases you may be able to place a direct award for Lot 1. You can buy through direct or further competition.

If you choose a direct award, make sure that your needs match the agreement specifications. Check your organisation’s policy to make sure that direct award is a compliant route.

To place a direct award you will need to clearly define your requirements and specify your intentions, lead times and Most Economically Advantageous Tender (MEAT).

MEAT helps you to decide which solution provides best overall value by considering factors outside of price (such as quality and functionality).

Next, send your defined requirements directly to your chosen supplier using your own procurement portal. Then establish your award criteria using Framework Schedule 7 Call-Off Award Procedure.

You can then award your contract by signing Framework Schedule 6, and publish your contract on Contracts Finder.

If you choose to run through further competition, you need to identify the suppliers that meet your needs and develop your specification.

Your specification should include specific details of what you need and lead times. Then complete your further competition documents, such as an invitation to tender or a draft order form.