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September 02, 2010

Camdenton and Olivette License Offices Awarded Using Competitive Bidding Process

JEFFERSON CITY - The incumbent agent for two local motor vehicle and license offices has been awarded the contracts to continue to manage 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 Camdenton License Office, which is located at 61 McCrory Dr.  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 September 2009.

The winning bid for the office was one of four 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 71,757 transactions were conducted at the office during FY 2009, and $252,257 in contract agent processing fees were generated.

The Olivette License Office will also continue to be managed by Alternative Opportunities.  The corporation has operated the office since September 2009.  The winning bid was one of six submitted, and the office is located at 9652 Olive Blvd.  An estimated 86,096 transactions were conducted at the office in FY 2009, and the office generated $289,914 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 Camdenton office included a 6 percent ($15,135) annual return to the state, and the bid for the Olivette office included a 7 percent ($20,293) 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 Camdenton and Olivette 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.  All 10 of the offices have now 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 how the competitive bidding system benefits Missouri citizens.

"The new bidding system provides an incentive for each bidder to develop as good a bid as possible," she said.  "Each proposal submitted by a bidder is judged on its own merit, and the Department has been pleased with the high quality of the bids."

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 registrations for motor vehicles, boats and outboard motors.


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