Request for Proposal 12-X-21271

For: Administration of Deficient and

Delinquent Tax Accounts

Event Date Time

Bidder’s Electronic Question Due Date

(Refer to RFP Section 1.3.1 for more information.)

June 24, 2011 5:00 PM

Mandatory/Optional Pre-Bid Conference (Refer to RFP Section 1.3.5 for more information.)

Not Applicable

Mandatory/Optional Site Visit (Refer to RFP Section 1.3.4 for more information.)

Not Applicable

Bid Submission Due Date (Refer to RFP Section 1.3.2 for more information.)

July 13, 2011 2:00 PM

Dates are subject to change. All changes will be reflected in Addenda to the RFP posted on the Division of Purchase and Property website.

Small Business

Set-Aside

Status Not Applicable

Entire Contract

Partial Contract

Subcontracting Only

Category

I

II

III

RFP Issued By Using Agency

State of New Jersey State of New Jersey Department of the Treasury Department of the Treasury Division of Purchase and Property Division of Taxation Trenton, New Jersey 08625-0230 Trenton, New Jersey 08695-0240

Date: June 13, 2011

Table of Contents

1.0 INFORMATION FOR BIDDERS

1.1 PURPOSE AND INTENT

1.2 BACKGROUND

1.2.1 DEFICIENCY AND DELINQUENCY OPERATIONS

1.3 KEY EVENTS

1.3.1 ELECTRONIC QUESTION AND ANSWER PERIOD

1.3.2 SUBMISSION OF BID PROPOSAL

1.3.3 ELECTRONIC BIDDING (EBID)

1.3.4 MANDATORY/OPTIONAL SITE VISIT

1.3.5 MANDATORY/OPTIONAL PRE-BID CONFERENCE

1.3.6 DOCUMENT REVIEW

1.4 ADDITIONAL INFORMATION

1.4.1 ADDENDA: REVISIONS TO THIS RFP

1.4.2 BIDDER RESPONSIBILITY

1.4.3 COST LIABILITY

1.4.4 CONTENTS OF BID PROPOSAL

1.4.5 BID OPENING

1.4.6 PRICE ALTERATION

1.4.7 BID ERRORS

1.4.8 JOINT VENTURE

1.4.9 RECIPROCITY FOR JURISDICTIONAL BIDDER PREFERENCE

2.0 DEFINITIONS

2.1 GENERAL DEFINITIONS

2.2 CONTRACT-SPECIFIC DEFINITIONS

3.0 SCOPE OF WORK

3.1 DUTIES AND OBLIGATIONS -TAXATION

3.1.1 ACCESS TO TAXNET AND TULIPS AND TAX INFORMATION

3.1.3 CASE ASSIGNMENT AND IDENTIFICATION

3.2 CONTRACTOR –OVERVIEW AND TRANSITION PERIOD

3.2.1 OFFICE LOCATION AND HOURS OF OPERATION

3.2.1.2 COURIER SERVICE

3.2.2 DISASTER RECOVERY PLAN

3.2.3 COMPUTER AND SOFTWARE COMPATIBILITY

3.2.4 TELEPHONE MONITORING ACCESS

3.2.5 FRAUD DETECTION

3.2.6 PERMISSION AND BACKGROUND INVESTIGATIONS

3.2.7 MINIMUM QUALIFICATIONS OF PERSONNEL

3.2.8 LABOR CLASSIFICATIONS

3.2.9 QUALITY ASSURANCE PERFORMANCE PLAN AND STANDARDS

3.3 CONTRACTOR -OPERATIONAL PERIOD

3.3.1 TAXPAYER ACCOUNT MAINTENANCE

3.3.2 DETERMINATION OF APPLICABILITY

3.3.3 NOTICES OF TAXPAYER LIABILITIES

3.4 DEVIATIONS TO IDENTIFICATIONS

3.4.1 DISPUTES

3.4.2 HEARINGS AND APPEALS

3.4.3 BANKRUPTCY

3.5 COLLECTIONS

3.5.1 DEFERRED PAYMENT OPTION

3.6 CONTRACTOR REPORTS

3.7 TAX ADMINISTRATION SUPPORT SERVICES

4.0 BID PROPOSAL PREPARATION AND SUBMISSION

4.1 GENERAL

4.2 BID PROPOSAL DELIVERY AND IDENTIFICATION

4.3 EBID VS NON-EBID SUBMISSION INSTRUCTION

4.4 BID PROPOSAL CONTENT

4.4.1 FORMS REQUIRED WITH BID PROPOSAL

4.4.2 FORMS REQUIRED BEFORE CONTRACT AWARD AND THAT SHOULD BE SUBMITTED WITH THE BID

PROPOSAL

4.4.3 TECHNICAL PROPOSAL

4.4.4 ORGANIZATIONAL SUPPORT AND EXPERIENCE

4.4.5 PRICE SCHEDULE

5.0 SPECIAL CONTRACTUAL TERMS AND CONDITIONS

5.1 PRECEDENCE OF SPECIAL CONTRACTUAL TERMS AND CONDITIONS

5.2 CONTRACT TERM AND EXTENSION OPTION

5.3 CONTRACT TRANSITION

5.4 CONTRACT AMENDMENT

5.5 CONTRACTOR RESPONSIBILITIES

5.6 SUBSTITUTION OF STAFF

5.7 SUBSTITUTION OR ADDITION OF SUBCONTRACTOR(S)

5.8 OWNERSHIP OF MATERIAL

5.9 SECURITY AND CONFIDENTIALITY

5.9.1 DATA CONFIDENTIALITY

5.9.2 SECURITY STANDARDS

5.9.3 SECURITY PLAN

5.10 NEWS RELEASES

5.11 ADVERTISING

5.12 LICENSES AND PERMITS

5.13 CLAIMS AND REMEDIES

5.13.1 CLAIMS

5.13.2 REMEDIES

5.13.3 REMEDIES FOR FAILURE TO COMPLY WITH MATERIAL CONTRACT REQUIREMENTS

5.14 LATE DELIVERY

5.15 RETAINAGE

5.16 STATE'S OPTION TO REDUCE SCOPE OF WORK

5.17 SUSPENSION OF WORK

5.18 CHANGE IN LAW

5.19 CONTRACT PRICE INCREASE (PREVAILING WAGE)

5.20 PUBLIC WORKS CONTRACT-ADDITIONAL AFFIRMATIVE ACTION REQUIREMENT

5.21 ADDITIONAL WORK AND/OR SPECIAL PRODUCTS

5.21.1 REVENUE PERFORMANCE STANDARDS

5.22 FORM OF COMPENSATION AND PAYMENT

5.22.1 REVENUE COMPENSATION DESCRIPTION & ADJUSTMENTS

5.23 MODIFICATIONS AND CHANGES TO THE NJ STANDARD TERMS AND CONDITIONS VERSION 05/13/10

5.23.1 PATENT AND COPYRIGHT INDEMNITY

5.23.2 INDEMNIFICATION

5.23.3 INSURANCE - PROFESSIONAL LIABILITY INSURANCE

5.23.4 INSURANCE – CRIMINAL INSURANCE

5.24 CONTRACT ACTIVITY REPORT

5.25 MACBRIDE PRINCIPLES – CERTIFICATION

6.0 PROPOSAL EVALUATION

6.1 RIGHT TO WAIVE

6.2 PROPOSAL EVALUATION COMMITTEE

6.3 ORAL PRESENTATION AND/OR CLARIFICATION OF BID PROPOSAL

6.4 EVALUATION CRITERIA

6.4.1 TECHNICAL EVALUATION CRITERIA

6.4.2 BIDDER’S PRICE SCHEDULE

6.4.3 BID DISCREPANCIES

6.4.4 EVALUATION OF THE BID PROPOSALS

6.5 NEGOTIATION AND BEST AND FINAL OFFER (BAFO)

7.0 CONTRACT AWARD

7.1 DOCUMENTS REQUIRED BEFORE CONTRACT AWARD

7.1.1 REQUIREMENTS OF PUBLIC LAW 2005, CHAPTER 51, N.J.S.A. 19:44A-20.13-25 (FORMERLY EXECUTIVE

ORDER 134) AND EXECUTIVE ORDER 117 (2008)

7.1.2 SOURCE DISCLOSURE REQUIREMENTS

7.1.3 AFFIRMATIVE ACTION

7.1.4 BUSINESS REGISTRATION

7.2 FINAL CONTRACT AWARD

7.3 INSURANCE CERTIFICATES

7.4 PERFORMANCE BOND

8.0 CONTRACT ADMINISTRATION

8.1 CONTRACT MANAGER

8.1.1 STATE CONTRACT MANAGER RESPONSIBILITIES

8.1.2 COORDINATION WITH THE STATE CONTRACT MANAGER

PRICE SCHEDULES

1.0 INFORMATION FOR BIDDERS

1.1 PURPOSE AND INTENT

This Request for Proposal (RFP) is issued by the Purchase Bureau, Division of Purchase and Property, Department of the Treasury on behalf of the Division of Taxation (Taxation). The purpose of this RFP is to solicit bid proposals to engage a contractor to perform administration, resolution and collection of deficient and delinquent taxes.

The intent of this RFP is to award a contract to that responsible bidder whose bid proposal, conforming to this RFP, is most advantageous to the State, price and other factors considered.

The State, however, reserves the right to separately procure individual requirements that are the subject of the contract during the contract term, when deemed by the Director to be in the State’s best interest.

The NJ Standard Terms and Conditions version 05/13/10 will apply to all contracts or purchase agreements made with the State of New Jersey. These terms are in addition to the terms and conditions set forth in this RFP and should be read in conjunction with them unless the RFP specifically indicates otherwise.

1.2 BACKGROUND

This is a reprocurement of the following two (2) term contracts: Collection Services, Financial Debt: Deficiency Tax Collection and Administration of Tax Delinquency Accounts, Taxation, both presently due to expire on November 30, 2011. Bidders interested in the current contract specifications and pricing information may review the current contracts (Enter T #1272 and T#1426) at http://www.state.nj.us/treasury/purchase/pricelists.shtml.

New Jersey State government (State) levies a variety of taxes, the collection of which is largely dependent upon voluntary compliance by citizens and businesses. Principal responsibility for collection of State taxes is with Taxation.

The State presumes that a number of persons and firms with legitimate tax obligations do not file required tax returns and do not remit taxes owed. The State believes that despite several collection and enforcement programs operated by Taxation, there are gaps between the amount of taxes owed and the amount collected by Taxation. This may be a consequence of purposeful evasion strategies employed by some taxpayers, the unawareness of taxpayers that tax obligations have been incurred, or changed financial circumstances requiring payment arrangements. Due to the nature of the problem, the State lacks a precise estimate of the dollar amount of such uncollected taxes.

The State has developed a variety of strategies to address this problem including stepped up collection and enforcement action. Additional penalties and fees have been added as a result of noncompliance. Interstate information exchange agreements, as well as agreements with the federal government that are intended to identify persons and firms with unpaid tax liabilities have also been used quite extensively.

In general, the uncollected tax liabilities may be categorized as follows:

Audit Assessments – additions to tax, penalty or interest imposed by Taxation as a result of information developed through examinations of the taxpayer’s books and records, tax returns, or information obtained from a variety of other sources.

http://www.state.nj.us/treasury/purchase/pricelists.shtml

Deficiency – amount owed to the State as reported by the taxpayer on a previously filed but underpaid return. Penalties and interest and other fees are added as appropriate.

Delinquency – the absence of a filed return when information from Taxation's records, from the taxpayer, or from other sources, indicates that a return is due. A delinquent return, when filed, may not actually result in a tax liability to the taxpayer. A delinquency might also be satisfied with satisfactory proof that the taxpayer was not liable to file a tax return.

The responsibilities of Taxation extend beyond the collection of State Taxes. Taxation also administers new and established property tax relief programs, such as the Property Tax Reimbursement Program (Senior Freeze), and the Homestead Rebate/Benefit.

1.2.1 DEFICIENCY AND DELINQUENCY OPERATIONS

Taxation shall provide appropriate levels of training for contractor personnel in the applicable tax laws, regulations, Taxation policy and procedures, guidelines and data systems necessary to perform the duties required under this contract. The contractor will have the necessary secure access to confidential tax information to perform the requirements of this RFP. Taxation will provide a State Contract Manager and other manager staff to coordinate and facilitate contact between the contractor and Taxation. In addition, a contract management liaison group (Taxation Liaison Group) will work directly with the contractor on a day-to-day basis.

The primary concentration for this contract on deficiency and delinquency tax matters involves Gross Income Tax (both Employer Withholding and Individual Income Tax), Sales and Use Tax and Corporation Business Tax. The Director of Taxation may also identify tax deficiencies and delinquencies for the other taxes or fees administered by Taxation for collection under this contract. A list of taxes is available for review at the following website:

http://www.state.nj.us/treasury/taxation/adminby.shtml

Taxation estimates the contractor will receive an initial workload of at least 10,000 cases.

Further, Taxation estimates average quarterly electronic transfers of approximately 20,000 cases. The State Contract Manager and Taxation Liaison Group will work closely with the contractor to ensure a sufficient number of cases are available to the contractor. Although there is no way to predict the number of deficient and delinquent tax cases that will be created each year, historical data from TULIPS system inventory reports indicate that over 100,000 deficient and delinquent cases are available. The guaranteed revenue minimum requirements are presented in Section 5.21.1 of this RFP. Revenues collected under the existing contracts have increased from nearly $100 million during the first contract year to approximately $150 million during this year.

In addition to collecting all tax, penalty, interest, and fees that may be due on the deficiencies and delinquencies, the contractor is responsible for a number of other ancillary services and tasks necessary to resolve the tax liability for a taxpayer. Services such as account adjustments, master cash transfers, edits, and other miscellaneous account correction or update activity in TAXNET may be necessary while working on taxpayer accounts. The delinquent taxpayer or a representative providing an executed Appointment of Taxpayer Representative form (Attachment

1) may submit sufficient documentation so that the contractor can correct a taxpayer account. In addition, with proper documentation and approval, the contractor may be required to perform various account maintenance functions such as line item adjustments, master cash transfers, and credit transfers. The contractor shall also be expected to perform on-line updates to the Taxpayer Profile information within the TAXNET System. For example, updates or corrections may be required for the taxpayer name, address, or tax eligibility record. In all instances, the contractor is required to perform appropriate and approved non-collection account maintenance tasks in http://www.state.nj.us/treasury/taxation/adminby.shtml addition to providing high level collection services. These required services may consume 10- 15% of case work effort.

Within its tax collection efforts, the contractor must generate a number of documents that require mailing through U.S. Postal Service First-Class or Certified-Mail. Based on experience, the contractor should anticipate paying for approximately 120,000 U.S. Postal Service First-Class mailings and 40,000 U.S. Postal Service Certified-Mail (return receipt) mailings each year. All mailing costs are borne by the contractor.

Throughout all of its operations to meet the requirements of this RFP, the contractor must comply with taxpayer confidentiality policies promulgated by Taxation in keeping with State and federal laws. The contractor shall be required to sign a confidentiality agreement with Taxation. A sample document is included as Attachment 2. Should the contractor or one of its officers or employees make an unauthorized disclosure of confidential tax information, the contractor may be considered to be in breach of this contract in addition to being subject to criminal prosecution.

1.3 KEY EVENTS

1.3.1 ELECTRONIC QUESTION AND ANSWER PERIOD

The Purchase Bureau will electronically accept questions and inquiries from all potential bidders via the web at http://ebid.nj.gov/QA.aspx.

Questions should be directly tied to the RFP and asked in consecutive order, from beginning to end, following the organization of the RFP. Each question should begin by referencing the RFP page number and section number to which it relates.

Bidders must not contact the Using Agency directly, in person, by telephone or by email, concerning this RFP.

The cut-off date for electronic questions and inquiries relating to this RFP is indicated on the cover sheet. Addenda to this RFP, if any, will be posted on the Purchase Bureau website after the cut-off date. (See RFP Section 1.4.1 for further information.)

1.3.2 SUBMISSION OF BID PROPOSAL

In order to be considered for award, the bid proposal must be received by the Purchase Bureau of the Division of Purchase and Property at the appropriate location by the required time. ANY

BID PROPOSAL NOT RECEIVED ON TIME AT THE LOCATION INDICATED BELOW WILL

BE REJECTED. THE DATE AND TIME IS INDICATED ON THE COVER SHEET. THE

LOCATION IS AS FOLLOWS:

BID RECEIVING ROOM – 9TH FLOOR

PURCHASE BUREAU

DIVISION OF PURCHASE AND PROPERTY

DEPARTMENT OF THE TREASURY

33 WEST STATE STREET, P.O. BOX 230

TRENTON, NJ 08625-0230

Directions to the Purchase Bureau are available on the web at http://www.state.nj.us/treasury/purchase/directions.shtml.

Note: Bidders using U.S. Postal Service regular or express mail services should allow additional time since the U.S. Postal Service does not deliver directly to the Purchase Bureau.

http://ebid.nj.gov/QA.aspx http://www.state.nj.us/treasury/purchase/directions.shtml

Procedural inquiries concerning this RFP may be directed to RFP.procedures@treas.state.nj.us.

The State will not respond to substantive questions related to the RFP or any other contract via this e-mail address.

1.3.3 ELECTRONIC BIDDING (EBID)

The Division is pleased to announce its electronic procurement modernization process. This RFP provides to the bidder the opportunity to electronically submit its bid proposal. A new electronic bidding – “eBid” – application is being made available to vendors to promote an easier, more efficient method to submit bid proposals. The State thanks the bidder in advance for its anticipated participation.

Instructor-led and online training sessions are available, as explained below. In the next several months, the Division will be moving to eBid-only submissions, i.e., paper proposals will no longer be accepted by the Division. It is strongly recommended that all bidders attend an instructor-led training session prior to the scheduled bid opening date and at least once before attempting to submit an eBid. It will be the bidder’s responsibility to ensure that the eBid has been properly submitted.

IMPORTANT NOTE: Bidders who wish to submit an eBid must be pre-registered for a Business Registration Certificate from the NJ Division of Revenue. The bidder is required to have the Contractor’s Certification number located on the Division of Revenue certificate in order to electronically submit a bid. This certificate may be obtained by visiting the following website:

http://www.state.nj.us/treasury/revenue/busregcert.shtml.

On-line Training Sessions:

If the bidder cannot attend an instructor-led training session, online training for the eBid process is available on the web at http://www.state.nj.us/treasury/purchase/index.shtml.

1.3.4 MANDATORY/OPTIONAL SITE VISIT

Not applicable to this procurement.

1.3.5 MANDATORY/OPTIONAL PRE-BID CONFERENCE

1.3.6 DOCUMENT REVIEW

Bidders are urged to visit the Taxation website and review publications and forms available via the links it provides to other sites at: www.state.nj.us/treasury/taxation

The following are documents that bidders may need to review in order to prepare and submit accurate and comprehensive bid proposals:

New Jersey Taxpayer’s Bill of Rights www.state.nj.us/treasury/taxation/pdf/pubs/sales/anj1.pdf

Taxes of the State of New Jersey www.state.nj.us/treasury/taxation/pdf/reg3.pdf

Form M-5008-R Appointment of Taxpayer Representative www.state.nj.us/treasury/taxation/pdf/other_forms/misc/m5008r.pdf

Fair Debt Collection Practices Act www.ftc.gov/os/statutes/fdcpa/fdcpact.htm mailto:RFP.procedures@treas.state.nj.us http://www.state.nj.us/treasury/revenue/busregcert.shtml http://www.state.nj.us/treasury/purchase/index.shtml http://www.state.nj.us/treasury/taxation http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/anj1.pdf http://www.state.nj.us/treasury/taxation/pdf/reg3.pdf http://www.state.nj.us/treasury/taxation/pdf/other_forms/misc/m5008r.pdf http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

1.4 ADDITIONAL INFORMATION

1.4.1 ADDENDA: REVISIONS TO THIS RFP

In the event that it becomes necessary to clarify or revise this RFP, such clarification or revision will be by addendum. Any addendum to this RFP will become part of this RFP and part of any contract awarded as a result of this RFP.

ALL RFP ADDENDA WILL BE ISSUED ON THE DIVISION OF PURCHASE AND PROPERTY

WEB SITE. TO ACCESS ADDENDA, THE BIDDER MUST SELECT THE BID NUMBER ON

THE WEB PAGE AT http://www.state.nj.us/treasury/purchase/bid/summary/bid.shtml.

There are no designated dates for release of addenda. Therefore interested bidders should check the Purchase Bureau "Bidding Opportunities" website on a daily basis from time of RFP issuance through bid opening.

It is the sole responsibility of the bidder to be knowledgeable of all addenda related to this procurement.

1.4.2 BIDDER RESPONSIBILITY

The bidder assumes sole responsibility for the complete effort required in submitting a bid proposal in response to this RFP. No special consideration will be given after bid proposals are opened because of a bidder's failure to be knowledgeable as to all of the requirements of this

RFP.

1.4.3 COST LIABILITY

The State assumes no responsibility and bears no liability for costs incurred by a bidder in the preparation and submittal of a bid proposal in response to this RFP.

1.4.4 CONTENTS OF BID PROPOSAL

A bidder may designate specific information as not subject to disclosure when the bidder has a good faith legal/factual basis for such assertion. The State reserves the right to make the determination and will advise the bidder accordingly. The location in the bid proposal of any such designation should be clearly stated in a cover letter. The State will not honor any attempt by a bidder either to designate its entire bid proposal as proprietary and/or to claim copyright protection for its entire proposal. In the event of any challenge to the bidder’s designation of confidential/proprietary materials, the bidder shall be solely responsible for defending its designation and the State shall have no responsibility therefor.

By signing the cover sheet of this RFP, the bidder waives any claims of copyright protection set forth within the manufacturer's price list and/or catalogs. The price lists and/or catalogs must be accessible to State using agencies and cooperative purchasing partners and thus have to be made public to allow all eligible purchasing entities access to the pricing information.

All bid proposals, with the exception of information determined by the State or the Court to be proprietary, are available for public inspection after the Letter of Intent to Award is issued. At such time, interested parties can make an appointment with the Purchase Bureau to inspect bid proposals received in response to this RFP.

http://www.state.nj.us/treasury/purchase/bid/summary/bid.shtml

1.4.5 BID OPENING

On the date and time bid proposals are due under the RFP, all information concerning the bid proposals submitted may be publicly announced and those bid proposals, except for information appropriately designated as confidential, shall be available for inspection and copying. In those cases where negotiation is contemplated, only the names and addresses of the bidders submitting bid proposals will be announced and the contents of the bid proposals shall remain confidential until the Notice of Intent to Award is issued by the Director.

1.4.6 PRICE ALTERATION

Bid prices must be typed or written in ink. Any price change (including "white-outs") must be initialed. Failure to initial price changes shall preclude a contract award from being made to the bidder.

1.4.7 BID ERRORS

In accordance with N.J.A.C. 17:12-1.11, “Bid Errors,” a bidder may withdraw its bid as described below.

A bidder may request that its bid be withdrawn prior to bid opening. Such request must be made, in writing, to the Supervisor of the Business Unit. If the request is granted, the bidder may submit a revised bid as long as the bid is received prior to the announced date and time for bid opening and at the place specified.

If, after bid opening but before contract award, a bidder discovers an error in its proposal, the bidder may make a written request to the Supervisor of the Bid Review Unit for authorization to withdraw its proposal from consideration for award. Evidence of the bidder’s good faith in making this request shall be used in making the determination. The factors that will be considered are that the mistake is so significant that to enforce the contract resulting from the proposal would be unconscionable; that the mistake relates to a material feature of the contract;

that the mistake occurred notwithstanding the bidder’s exercise of reasonable care; and that the State will not be significantly prejudiced by granting the withdrawal of the proposal. Note: A PB- 36 complaint form may be filed and forwarded to the Division’s Contract Compliance and Audit Unit for handling. A record of the complaint will also be maintained in the Division’s vendor performance file for evaluation of future bids submitted.

All bid withdrawal requests must include the bid identification number and the final bid opening date and sent to the following address:

Department of the Treasury Purchase Bureau PO Box 230 33 West State Street – 9th Floor Trenton, New Jersey 08625-0230 Attention: Supervisor, Bid Review Unit

If during a bid evaluation process, an obvious pricing error made by a potential contract awardee is found, the Director shall issue written notice to the bidder. The bidder will have five (5) days after receipt of the notice to confirm its pricing. If the vendor fails to respond, its bid shall be considered withdrawn, and no further consideration shall be given it.

If it is discovered that there is an arithmetic disparity between the unit price and the total extended price, the unit price shall prevail. If there is any other ambiguity in the pricing other than a disparity between the unit price and extended price and the bidder’s intention is not readily discernible from other parts of the bid proposal, the Director may seek clarification from the bidder to ascertain the true intent of the bid.

1.4.8 JOINT VENTURE

If a joint venture is submitting a bid proposal, the agreement between the parties relating to such joint venture should be submitted with the joint venture’s bid proposal. Authorized signatories from each party comprising the joint venture must sign the bid proposal. A separate Ownership Disclosure Form, Disclosure of Investigations and Actions Involving Bidder form, and Affirmative Action Employee Information Report must be supplied for each party to a joint venture. NOTE:

Each party comprising the joint venture must also possess a valid Business Registration Certificate (“BRC”) issued by the Department of Treasury, Division of Revenue prior to the award of a contract. Refer to Section 4.4.2.2 of this RFP.

1.4.9 RECIPROCITY FOR JURISDICTIONAL BIDDER PREFERENCE

In accordance with N.J.S.A. 52:32-1.4 and N.J.A.C. 17:12-2.13, the State of New Jersey will invoke reciprocal action against an out-of-State bidder whose state or locality maintains a preference practice for its bidders. For states having preference laws, regulations, or practices, New Jersey will use the annual surveys compiled by the Council of State Governments, National Association of State Purchasing Officials, or the National Institute of Governmental Purchasing to invoke reciprocal actions. The State may obtain additional information as it deems appropriate to supplement the stated survey information.

The bidder may submit information related to preference practices enacted for a local entity outside the State of New Jersey. This information may be submitted in writing as part of the bid response, including name of the locality having the preference practice, as well as identification of the county and state, and should include a copy of the appropriate documentation, i.e., resolution, regulation, law, notice to bidder, etc. It is the responsibility of the bidder to provide documentation with the bid proposal or submit it to the Director, Division of Purchase and Property within five (5) working days of the public bid opening. Written evidence for a specific procurement that is not provided to the Director within five (5) working days of the public bid opening will not be considered in the evaluation of that procurement, but will be retained and considered in the evaluation of subsequent procurements.

2.0 DEFINITIONS

2.1 GENERAL DEFINITIONS

The following definitions will be part of any contract awarded or order placed as result of this RFP.

Addendum – Written clarification or revision to this RFP issued by the Purchase Bureau.

All-Inclusive Hourly Rate – An hourly rate comprised of all direct and indirect costs including, but not limited to: overhead, fee or profit, clerical support, travel expenses, per diem, safety equipment, materials, supplies, managerial support and all documents, forms, and reproductions thereof. This rate also includes portal-to-portal expenses as well as per diem expenses such as food.

Amendment – A change in the scope of work to be performed by the contractor. An amendment is not effective until it is signed by the Director, Division of Purchase and Property.

Bidder – An individual or business entity submitting a bid proposal in response to this RFP.

Contract – This RFP, any addendum to this RFP, and the bidder’s proposal submitted in response to this RFP, as accepted by the State.

Contractor – The bidder awarded a contract resulting from this RFP.

Director – Director, Division of Purchase and Property, Department of the Treasury. By statutory authority, the Director is the chief contracting officer for the State of New Jersey.

Division – The Division of Purchase and Property

Evaluation Committee – A committee established by the Director to review and evaluate bid proposals submitted in response to this RFP and to recommend a contract award to the Director.

Firm Fixed Price – A price that is all-inclusive of direct cost and indirect costs, including, but not limited to, direct labor costs, overhead, fee or profit, clerical support, equipment, materials, supplies, managerial (administrative) support, all documents, reports, forms, travel, reproduction and any other costs. No additional fees or costs shall be paid by the State unless there is a change in the scope of work.

Joint Venture – A business undertaking by two or more entities to share risk and responsibility for a specific project.

May – Denotes that which is permissible, not mandatory.

Project – The undertaking or services that are the subject of this RFP.

Request for Proposal (RFP) – This document which establishes the bidding and contract requirements and solicits bid proposals to meet the purchase needs of the using Agencies as identified herein.

Shall or Must – Denotes that which is a mandatory requirement. Failure to meet a mandatory requirement will result in the rejection of a bid proposal as materially non-responsive.

Should – Denotes that which is recommended, not mandatory.

State Contract Manager – The individual responsible for the approval of all deliverables, i.e., tasks, sub-tasks or other work elements in the Scope of Work, as set forth in Sections 8.1, 8.1.1 and 8.1.2.

Subtasks – Detailed activities that comprise the actual performance of a task.

State – State of New Jersey.

Subcontractor – An entity having an arrangement with a State contractor, where the State contractor uses the products and/or services of that entity to fulfill some of its obligations under its State contract, while retaining full responsibility for the performance of all of its [the contractor's] obligations under the contract, including payment to the subcontractor. The subcontractor has no legal relationship with the State, only with the contractor.

Task – A discrete unit of work to be performed.

Using Agency[ies] – The entity[ies] for which the Division has issued this RFP and will enter into a contract.

2.2 CONTRACT-SPECIFIC DEFINITIONS

Applied Date Change – On-line adjustment to taxpayer record. Changes the date recorded in the system reflective of the date a tax return was actually received.

Appointment of Taxpayer Representative – Taxation’s version of a Power of Attorney (POA.).

Form M-5008-R available for review at the following website:

www.state.nj.us/treasury/taxation/pdf/other_forms/misc/m5008r.pdf

Case – Identified or tracked by TULIPS and contains one or more deficiencies and/or delinquencies.

Contract Effective Date – Date of award of contract to successful bidder.

Contract Operational Date – A date 120 days after the Contract Effective Date when the contractor is expected to have fully implemented its transition plan and the contract program is fully operational.

Cost of Collection – A 10% fee added to the taxpayer’s liability to help defray the costs of placing a Certificate of Debt against the taxpayer.

Certificate of Debt (COD) – An administrative judgment recorded in the NJ Superior Court that has the same force and effect as a court ordered judgment.

CRAS – Cash Receipts Accounting System check processing and accounting system maintained primarily by the Division of Revenue. All tax payments received by Taxation and / or the contractor are processed though Division of Revenue processing systems.

Director of Taxation - Director of the Division of Taxation, Department of the Treasury.

FOIL – Federal Offset of Income Tax Liabilities program that withholds federal income tax refunds for New Jersey income tax debts by an electronic exchange.

GENTS - Taxation’s generic tax database system used to maintain all taxpayer filing and payment information covering all taxes.

Holidays – New Year’s Day, Washington’s Birthday (President’s Day), Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day

Master Cash Transfer - On-line account correction. Payment posted to a specific taxpayer account is transferred to another period or tax year within the same account OR to an entirely different taxpayer account in order to correct the account(s).

OMB Vendor Set-Off – A State program that withholds contract payments due to State contractors with State tax debts and applies those payments to the tax liability.

Referral Cost Recovery Fee – A 10% fee added to the taxpayer’s liability to help defray the costs Taxation incurs having a private contractor in the collection workflow.

Revenue – All monies collected by check, money order, credit card, and electronic means by the contractor for the specific items in the TULIPS cases while assigned to the contractor that may be composed of tax, penalty, interest, fees and costs reduced by returned/rejected funds, FOIL/SOIL/TOP set-off payments, account adjustments/corrections, and refunds. Please refer to Section 5.22.1 of this RFP for complete details.

Schedule of Liabilities – The document generated from TULIPS that is a detailed summary of all the taxes that are deficient or delinquent for the specific taxpayer referenced on the document.

The document also has the balances due for tax, penalty, interest, fees and costs.

SOIL – New Jersey Set-off of Individual Income Tax Liability program that withholds State income tax refunds and property tax rebates for debts owed to State and federal agencies.

Taxation – Division of Taxation, Department of Treasury.

Taxation Liaison Group - Division of Taxation, Compliance Services Branch management and staff assigned to assist with the day to day oversight of the contract. The Group is responsible for problem resolution, analysis of assigned and unassigned workloads, implementation of new policies and guidelines and the periodic quality control review of contractor work in addition to maintaining a regular presence at the contractor’s worksite.

TAXNET – Combination of primary Taxation computer systems including TULIPS, GENTS, CRAS and TAX REG that are accessible by computer conversations with specific functions.

TAXREG - The Division of Revenue’s primary taxpayer profile database, used by Taxation, containing identification numbers, names, addresses, and other pertinent taxpayer information.

TOP – Federal Treasury Offset Program matches federal and State debt against payments due to contract vendors and redirects the payments to the debts.

TULIPS – Taxpayer Un-remitted Liability Inventory Plotting System. Taxation computer based case management / case tracking system. TULIPS cases compose the work electronically sent to the contractor’s work location for assignment. TULIPS case items within each case are the actual delinquent and deficient tax items due for specific delinquent or deficient tax periods.

3.0 SCOPE OF WORK

3.1 DUTIES AND OBLIGATIONS -TAXATION

3.1.1 ACCESS TO TAXNET AND TULIPS AND TAX INFORMATION

Taxation shall provide the contractor with access to the TAXNET and TULIPS systems and to confidential taxpayer information. All changes to the contractor equipment specified in Section

3.2.3 of this RFP or changes to other information technology specifications and requirements by Taxation shall be provided to the contractor by the State Contract Manager and/or the State Office of Information Technology (NJ OIT). When contractor personnel accessing TAXNET and/or TULIPS resign or are terminated, or removed for any reason, the contractor must notify the State Contract Manager within one (1) business day so that Taxation can revoke access to all applicable confidential taxpayer records for the employee.

3.1.2 TRAINING

The State will provide appropriate levels of training for contractor personnel in the applicable tax laws, regulations, Taxation policies and procedures, guidelines, and data systems (TAXNET and TULIPS systems) necessary to perform the duties required under this contract. Training dates shall be provided to the contractor upon contract award. Training shall be performed at the contractor’s office where the contractor shall ensure space and equipment necessary for a combination of on-line, instructor-led and lecture training. Taxation shall also provide contractor personnel with training that covers, but is not limited to the following:

a) Taxation collection procedures;

b) Case management and payment processing;

c) Collection timeframes;

d) Taxpayer Bill of Rights notice and appeal requirements;

e) State-mandated workplace policies; and

f) additional Taxation policies and procedures upon request by the State Contract

Manager.

Taxation shall provide training to initial contractor staff. All subsequent training shall be performed by contractor staff for contractor staff. The contractor shall use all course materials provided by Taxation as a reference and develop its own training materials and curriculum subject to approval by the State Contract Manager

3.1.3 CASE ASSIGNMENT AND IDENTIFICATION

Taxation shall provide the contractor with case assignments of existing cases of tax deficiency and delinquency and provide subsequent case assignments on an ongoing basis. The State Contract Manager reserves the right to recall and/or reassign any or all accounts at anytime for any reason.

Taxation shall identify all casework and shall deliver the casework electronically, through TULIPS, to the contractor. From time to time, Taxation, using its own resources, may develop "hard copy" information on deficient and delinquent taxpayers. Such information will be delivered to the contractor and the cases shall be added to the contractor's workload. The contractor shall work on all cases in a similar manner using collection procedures developed and mandated by Taxation.

The contractor shall receive intense training on all aspects of casework.

3.2 CONTRACTOR –OVERVIEW AND TRANSITION PERIOD

The contract resulting from this RFP shall have a transition period of up to 120 days for the contractor to work with Taxation to ensure that it has a New Jersey facility fully equipped to assume operations, required documentation, trained contractor personnel and operating procedures approved by the State Contract Manager and the contractor is ready to perform deficient and delinquent tax administration and collections by the contract operational date. The State requires that the contractor shall generate revenue beginning on the contract operational date.

The contractor shall meet with the State Contract Manager to review the written plans submitted with the contractor’s bid proposal. The contractor shall revise its written plan as needed detailing how it shall maintain compliance with Taxpayer Bill of Rights and the Uniform Tax Procedure Act, N.J.S.A. 54:48-1 et seq., and the Federal Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.). The contractor shall submit the revised written plan for approval by the State Contract Manager.

3.2.1 OFFICE LOCATION AND HOURS OF OPERATION

The State has determined that due to the nature of this procurement, the contractor shall maintain an office site within New Jersey and provide access to Taxation personnel. The bidder should include the location of the bidder's office where contractor personnel shall perform the tasks required by this RFP. The office location shall be located within the State of New Jersey, specifically within a forty (40) mile radius of Taxation’s main office at 50 Barrack Street, Trenton, New Jersey 08695.

The contractor shall ensure that its personnel are available to perform the requirements of this RFP six (6) days per week, from Monday through Saturday. The contractor shall ensure that its office hours of operation are from 8:00 a.m. through 8:00 p.m. Monday through Thursday and from 8:00 a.m. through 5:00 p.m. on Friday, and 9:00 a.m. through 1:00 p.m. on Saturdays, excluding Holidays.

3.2.1.1 SECURITY FOR OFFICE AND CONFIDENTIAL TAXPAYER INFORMATION

The contractor shall revise the plan for physical office and confidential information security as submitted with its bid proposal upon direction of the State Contract Manager. The contractor shall submit its revised plan for approval by the State Contract Manager. Such plan shall include, but not be limited to such topics as:

a) building access for contractor personnel;

b) visitor procedures;

c) computer access and protection;

d) storage and protection of confidential taxpayer information;

e) contractor policies and procedures to ensure that confidential tax information both electronic and hard copy is held confidential and secure at its New Jersey office; and

f) destruction of confidential taxpayer information in both hard copy and electronic formats.

Throughout all of its operations to meet the requirements of this RFP, the contractor must comply with taxpayer confidentiality policies promulgated by Taxation. The contractor shall be required to sign a confidentiality agreement with Taxation. Should the contractor or one of its officers or employees make an unauthorized disclosure of confidential tax information, the contractor may be considered to be in breach of this contract in addition to being subject to criminal prosecution.

The contractor shall ensure that all its personnel have completed an Employee Certification and Agreement to Adhere to the Confidentiality Provisions of the State Tax Uniform Procedure Law, the Internal Revenue Code, and the Policies of the Various Divisions of the Department of the Treasury Relating to Access to Tax Records and Files Form M-1010, included as Attachment 3, and that all completed, signed original forms are submitted to the State Contract Manager.

In situations where the contractor must discuss confidential tax information with a party other than Taxation or the taxpayer, prior to any discussion, the contractor shall ensure that the taxpayer has completed an Appointment of Taxpayer Representative Form M-5008-R (accessible at the following url: http://www.state.nj.us/treasury/taxation/pdf/other_forms/misc/m5008r.pdf).

3.2.1.2 COURIER SERVICE

The contractor shall ensure that it has the capability to deliver and return physical case folders, and ancillary documentation between its office and the Taxation Liaison Group office in Trenton at least twice per week.

3.2.1.3 ACCESS FOR TAXATION LIAISON GROUP

The contractor shall provide at its New Jersey office site, dedicated private office space that contains office furniture, telephone lines, personal computers and printers for use by the Taxation Liaison Group (approximately 10 members) while they are conducting on-site compliance reviews and performing general oversight functions.

3.2.2 DISASTER RECOVERY PLAN

The contractor shall develop a Disaster Recovery Plan that details its plans for continuation of services required by this RFP in the event of a disaster. The plan shall include, but not be limited to the following:

a) continuation of services; and

b) restoration of software, master files and hardware backup if information systems are disabled so that delinquent tax debt collection services are not disrupted.

The Disaster Recovery Plan shall be documented for approval by the State Contract Manager and NJ OIT and tested within four (4) weeks of Contract Operational Date.

3.2.3 COMPUTER AND SOFTWARE COMPATIBILITY

The contractor shall provide all computer hardware and software necessary to successfully access the TAXNET system. Such hardware and software shall include, but not be limited to the following:

a) T1 line between the contractor’s office and the State’s hub;

b) personal computers that support Attachmate Version 7.1a;

c) network interface and switches sized for system needs;.

d) Intelligent Printer Data Stream/Advanced Function Printing printer for printing of system-generated notices and reports; and

e) Laser line-printers for printing of certified mailing forms and for general printing use.

The contractor shall ensure that all computer hardware and software necessary to successfully access the TAXNET system are solely located within its New Jersey office.

3.2.4 TELEPHONE MONITORING ACCESS

The contractor shall provide for a telephone system that includes capability for on-site, real-time monitoring by Taxation personnel of conversations between the contractor and taxpayers and records and retains all conversations for up to one year. Upon request by the State Contract Manager, the contractor must provide the recorded, requested telephone conversations to the State Contract Manager within two (2) business days. The recording and retention capacity must include the indexing and search capability. The contractor shall revise the written protocol submitted with its bid proposal on how it shall convey accurate information to taxpayers upon request by the State Contract Manager. The State shall not be liable for contractor work disruptions or stoppages due to problems with the computer or telephone systems.

3.2.5 FRAUD DETECTION

The contractor shall develop a written plan in which it details its policies and procedures for ensuring that its practices monitor for fraud. The contractor shall submit the fraud detection plan to the State Contract Manager for approval prior to the contract operational date.

3.2.6 PERMISSION AND BACKGROUND INVESTIGATIONS

The contractor shall develop a plan to ensure that its personnel complete various permission forms and undergo a vetting process that includes criminal and civil background investigations and a check for compliance for State taxes. The contractor shall complete a Memorandum of Agreement (MOA) with Taxation that details the requirements of contractor personnel background investigations. A sample MOA is provided as Attachment 4 and a guideline for background investigations is provided as Attachment 5.

The contractor shall also ensure that all its personal have been vetted through this process.

The contractor shall immediately notify the State Contract Manager when any theft, disclosure, abuse or other misconduct by its personnel occurs or is discovered by the contractor.

3.2.7 MINIMUM QUALIFICATIONS OF PERSONNEL

The contractor shall ensure that its personnel have keyboarding and calculator skills, oral English language skills, knowledge of arithmetic sufficient to ensure correct tax return computation and to communicate with and assist taxpayers.

3.2.8 LABOR CLASSIFICATIONS

The contractor shall categorize its personnel into one of the following four (4) job classifications provided by Taxation:

1. Manager/Assistant Manager –Act as liaison with the State and update operations and procedures as required by any changes in the law or practice. Implement and ensure compliance with the policies set forth by the Division of Taxation. Administer work guidelines, set and enforce productivity standards, identify and fulfill training needs, ensure that staff attains or exceeds goals, identify and recommend steps to improve practices. Oversee operations and production of Supervisors and Call Agents and act to address problems in a timely manner. Perform regular, routine internal quality assurance audits. On a monthly basis, submit a report as specified by the State Contract Manager.

2. Supervisor – Monitor telephone calls and assigned case workloads and group backlogs to guarantee that all cases are handled by Call Agents within the appropriate guidelines in accordance with Taxation policies and procedures. Monitor individual and group performance. Identify problems, the need for training and coordinate with the Manager.

Research complicated tax problems and consult with the Taxation Liaison Group for guidance when needed. Review all account adjustment / maintenance activity for compliance with Taxation policies and procedures. Review all documents to ensure compliance with Taxation guidelines.

3. Call Agent/Assistant Supervisor –Respond to telephone inquiries concerning tax and/or rebate programs, initiate contact with taxpayers. Locate taxpayers if Taxation has a bad address. Work with taxpayers, their accountants and attorneys regarding tax and/or rebate programs as required by Taxation procedures and policies. Review incoming correspondence and take necessary action following procedures. Perform all required account maintenance functions in accordance with Taxation policies and procedures.

4. Clerical/Support -Under the direction of the Manager, perform all routine clerical tasks assigned including: directing incoming phone calls to the appropriate representative;

data entry; photocopying and preparing outgoing correspondence; receive and process taxpayer correspondence and payments; distribute correspondence and taxpayer information to the appropriate Call Agent. May assist with various skip tracing methods to locate taxpayers.

3.2.9 QUALITY ASSURANCE PERFORMANCE PLAN AND STANDARDS

The contractor must develop a plan for the periodic review, at least quarterly, of all assigned cases to verify that policies and procedures are being followed by its collection employees. The Taxation Liaison Group will also engage in such quality control review on a random basis and share the results with the contractor. The process shall be used to retrain and reinforce policies and procedures and to improve the work product of the contractor employees.

The Taxation Liaison Group shall maintain a detailed log, including the outcome, of all complaints and alleged violations of policies, procedures and/or laws, whether the complaint is lodged telephonically, or in a written communication to the contractor or to Taxation.

3.2.9.1 COMPLAINTS/VIOLATIONS

On a regular and timely basis, the Taxation Liaison Group will meet with the contractor to review the log of complaints submitted to Taxation and to the contractor. The Taxation Liaison Group, assisted by the contractor, will gather all pertinent documents, interview the case worker and supervisor to determine if the…