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August 26, 2010

Springfield (South Fremont) & Republic License Offices Awarded Using Competitive Bidding Process

JEFFERSON CITY - Two local motor vehicle and license offices have been awarded to the current agent that operates the offices.  The winning proposals for both offices were chosen as part of a reformed, competitive bidding process for all of Missouri's local license offices.

Alternative Opportunities, Inc. will continue to be the agent for the Springfield (South Fremont) License Office, which is located at 3061 S. Fremont Ave.  The Springfield not-for-profit corporation provides a variety of services for youth, veterans and the physically challenged, and it has been the office agent since April of 2009.

The winning bid for the South Fremont office was one of seven submitted.  The contract with the state is good for one year, and the state has the right to renew the contract for three additional one-year periods.  According to figures from Fiscal Year 2009, an estimated 204,214 transactions were conducted at the office during FY 2009, and $670,327 in contract agent processing fees were generated.

The Republic License Office will also continue to be managed by Alternative Opportunities.  The corporation has operated the office since August of 2009.  The winning bid was one of four submitted, and the office is located at 243 U.S. Highway 60 West.  An estimated 83,811 transactions were conducted at the office in FY 2009, and the office generated $274,038 in agent fees.

Bidders have the option of returning a portion of an office's revenues to the state.  Alternative Opportunities' winning bid for the South Fremont office included a 13.6 percent ($91,164) annual return to the state, and the bid for the Republic office included a 6 percent ($16,442) return.  More than $1 million is estimated to be returned to the state in the first full year of operations from the 183 license offices statewide.

The Republic and South Fremont License Offices were two of 10 offices initially awarded in 2009 that are being re-bid at the request of the Missouri Department of Revenue because of incomplete information provided by the winning bidder during the first round of bidding.  Eight of the 10 offices have been re-awarded to various agents.

Details about changes in office operations, if any, will be announced by the agent.

Although Gov. Jay Nixon authorized the Department of Revenue to implement the new bidding system in January of 2009, it didn't become part of state law until legislation was signed by the Governor in July of 2009. The new law was overwhelmingly approved by both Republican and Democratic members of the Missouri Legislature.

Alana M. Barragán-Scott, director of the Department of Revenue, noted the overall success of the bidding process.

"Incumbent agents and new bidders compete against each other to present the best business plan," she said.  "Sometimes the incumbent wins, and sometimes a new agent is chosen.  But the competition provides an incentive to all bidders to create ways to be as efficient as possible and to provide good customer service."

All local license offices provide services that are overseen by the Department of Revenue, but each office is operated by an independent contractor.  Transactions that are conducted at these offices include the issuance and renewal of driver licenses, issuance of titles for motor vehicles, and the issuance and renewal of registration for motor vehicles, boats and outboard motors.


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