11-001 Proposal.pdf

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Request for Proposals

RFP 27000676

for

Cost Allocation Services

Proposals for this requirement will be accepted until 2:00 P.M. on December 2, 2026

Proposals May be Mailed or submitted online:

City Secretary City of Midland

Suite 330

P.O. BOX 1152

Midland, Texas 79702-1153 (300 N. Loraine, Suite 330 Midland, TX 79701)

Or https://midlandtexas.bonfirehub.com/

No Late Proposals Will Be Accepted

NOTICE TO PROPOSERS:

1. IMPORTANT NOTICE – IF THE CONTRACT DOCUMENTS REQUIRE WORKER’S COMPENSATION INSURANCE, PROPOSER/CONTRACTOR MUST CARRY WORKER’S COMPENSATION INSURANCE TO BE ELIGIBLE FOR THIS CONTRACT. IF YOU CANNOT PROVIDE WORKER’S COMPENSATION INSURANCE AS REQUIRED BY STATE OF TEXAS STATUTE WE RESPECTFULLY

REQUEST THAT YOU “NO BID” THIS WORK

2. COMPLIANCE. – COMPANY AGREES THAT IT SHALL COMPLY WITH TEXAS GOVERNMENT CODE SECTION 2252.908, ET SEQ., AS AMENDED. COMPANY AGREES THAT IT SHALL COMPLY WITH TEXAS LOCAL GOVERNMENT CODE SECTION 176.006, ET SEQ., AS

AMENDED.

3. PUBLIC INFORMATION. TO THE EXTENT THAT PROPOSER IS SUBMITTING A PROPOSAL FOR A CONTRACT DESCRIBED BY SECTION 552.371 OF THE TEXAS GOVERNMENT CODE, PROPOSER AGREES AS FOLLOWS IN ACCORDANCE WITH SECTION 552.372(B) OF THE TEXAS GOVERNMENT CODE: THE REQUIREMENTS OF SUBCHAPTER J, CHAPTER 552, GOVERNMENT CODE, MAY APPLY TO THIS PROPOSAL, AND THE CONTRACTOR OR VENDOR AGREES THAT THE CONTRACT CAN BE TERMINATED IF THE CONTRACTOR OR VENDOR KNOWINGLY OR INTENTIONALLY FAILS TO COMPLY WITH A REQUIREMENT OF THAT SUBCHAPTER.

https://midlandtexas.bonfirehub.com/

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TABLE OF CONTENTS

Page SCHEDULE OF EVENTS ................................................................................................................................iii Special Terms and Conditions ........................................................................................................................... iv

1. General Information

2. Proposal Waivers:

3. Scope Of Project

4. Requirements

5. Narrative

6. Vendor Qualifications

7. Evaluation Process

8. Proposal Contents

EXECUTION OF OFFER

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SCHEDULE OF EVENTS

RFP 27000676

For Cost Allocation Services

Event Date* RFP Released .............................................................................................................. 11/06/2026 Cutoff Date for inquiries and clarification………………………………………….. 11/27/2026

Proposal Due Date ...................................................................................................... 12/02/2026 Intended Date for Contract Award .............................................................................. 12/15/2026

*These dates are our intended schedule; however, they may be changed as necessary without further notice.

NOTE:

From the issuance date of this RFP until a Contractor(s) is selected, all verbal communication is not binding.

The City will only be bound by written comments submitted by the Purchasing Office.

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SPECIAL TERMS AND CONDITIONS

Proposal Requirements /Terms

1. Unless otherwise called for, the number of copies specified in the RFP, shall be submitted typewritten or printed in ink. Many Requests for Proposals are in a word format that can be completed on your computer and will be noted on the cover page if available.

2. Each proposal should be placed in a separate envelope completely and properly identified with the RFP number, due time and date. Proposal must be time stamped at the appointed receipt location before the hour and date specified for the proposal receipt.

Responsibility for having the proposal properly marked and to the opening location by the specified date and time is solely the offeror’s.

All copies of the proposal may be delivered in the same box/package.

3. Any Proposal may be withdrawn in writing prior to the date and time set for receipt of proposals. Any proposals not so withdrawn shall constitute an irrevocable offer, for a minimum period as stated in the RFP following the final acceptance date, to provide the commodity or service set forth in the attached specifications, or until a selection has been made by the City.

4. Late proposals will not be accepted under any circumstances.

5. Proposal should give full firm name and address of Offeror. Failure to manually sign the proposal will disqualify it. The person signing the proposal should show title or authority to bind his/her firm in contract. Insert your Federal Employer’s Identification Number _____________________ or Sole owner should enter SSN ______-____-______.

6. Purchases made for City use are exempt from State Sales Tax and Federal Excise Tax.

Do not include tax in your proposal. Tax exemption certificates will be furnished by the City upon request.

7. Telephone proposals are not acceptable when in response to an RFP.

Conditions The City of Midland is requesting proposals with the intent of awarding a contract for the requirement contained in this RFP. However, the City is not obligated to award a contract on this solicitation and reserves the right to reject any and all proposals and award the proposal to best serve the interests of the City.

1. Offerors electing to respond to this RFP are responsible for all costs of proposal preparation. The City is not liable for any costs incurred by a offeror in response to this RFP.

2. No public disclosures or news releases pertaining to this RFP shall be made without prior written approval from purchasing.

3. In case of a tie between two or more offerors, the award will be made in accordance with preferences as outlined by statute.

4. The Offeror agrees to protect the City from claims involving infringement of patents or copyrights.

5. The Offeror hereby assigns to Purchaser, any and all claims for overcharges associated with any contract resulting from this RFP which arise under the antitrust laws of the United States 15 U.S.C.A. Section 1, et seq.

1973 and which arise under the antitrust laws of the State of Texas, Texas Business and Commercial Code Ann. Sec. 15.01, et seq. (1967).

6. No substitutions or cancellation permitted without the written approval of the City Purchasing Agent. Deliveries made pursuant to a resulting contract shall be made during normal working hours only, unless approval for late delivery has been obtained.

7. Contractor shall submit two copies of an itemized invoice to Accounts Payable, The City of Midland, Texas, P.O. Box 1152, Midland Texas 79702.

Each copy of the invoice shall reference the P.O. and the RFP numbers.

8. In the event of a conflict between the standard proposal requirements and conditions and the attached detail specification, the detail specifications shall govern.

9. Governing Law & Venue: This agreement shall be governed by and construed in accordance with the laws of the State of Texas. Venue for any disputes or lawsuits arising from the performance of this contract shall be exclusively in Midland County, Texas. The parties agree that all performance under this contract shall take place in Midland, County, Texas. The Contractor and City agree that all payments made under this contract shall take place in Midland County, Texas.

10. This obligation and undertakings of each of the parties to this contract shall be deemed to have been performed in Midland County, Texas.

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1. GENERAL INFORMATION

1.1. INTRODUCTION

The City of Midland (hereinafter referred to as "the City") is pleased to invite you to submit a proposal for Cost Allocation Services as specified herein. Proposals submitted in response to the specifications contained herein shall comply with the following instructions and procedures.

Request for Proposal Standard Information

This Request for Proposal (RFP) is issued in accordance with City of Midland Policy, the RFP Manual and the statutes of the State of Texas. The RFP process is a procurement option allowing the award to be evaluated based on stated criteria. The RFP states the relative importance of all criteria. No other criteria, other than as outlined in the Request for Proposal, will be used.

1.2. INITIAL EVALUATION

Upon receipt, the proposal information will be disclosed only to persons participating in the evaluation or contracting process until the proposal has been reviewed and all marked trade secrets have been removed (see “Trade Secrets and Other Withheld Information” statement below). After this review, all remaining proposal materials will be available under the open records act. The proposals will be initially evaluated by the committee as being “responsive” or “non-responsive”.

1.3. DISCUSSION/NEGOTIATION

Although proposals may be accepted and a contract awarded without discussion, the City may initiate discussions should clarification or negotiation be necessary. Offerors should be prepared to send qualified personnel to Midland, Texas to discuss technical and contractual aspects of the proposal.

1.4. BEST AND FINAL OFFER

The "Best and Final Offer" is an option available to the City under the RFP process allowing one or more offerors to submit a best and final offer. Offerors may be contacted, asking that they submit their best and final offer, which must include the discussed and/or negotiated changes.

1.5. AWARD

1.5.1. If the Contract is awarded, it will be awarded to either the lowest responsible bidder, or to the bidder who provides goods or services at the best value for the City of Midland. In determining the best value for the City of Midland, the City of Midland may consider the criteria enumerated in Section 252.043 of the Texas Local Government Code.

1.6. TRADE SECRETS

1.6.1. All information received in response to this RFP will be available to the public except for:

1.6.1.1. trade secrets meeting the requirements of Texas Government Code Title 5, Chapter

552, Subchapter C, § 552.110; and

1.6.1.2. matters involving individual safety as determined by the department.

1.6.2. In order for an offeror to claim trade secret material, the following conditions must be met. Information to be withheld must be clearly marked and separated from the rest of the proposal.

1.6.2.1. The proposal may not contain trade secret matter in the cost or price.

1.6.2.2. An affidavit from the offeror’s legal counsel attesting to and explaining the validity of the trade secret claim must be attached to each proposal containing trade secrets. In

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1.6.3. Documents not meeting all of the requirements of (1) and (2) will be available for public inspection, including copyrighted materials.

1.7. LATE PROPOSALS

Proposals received after the time specified for receipt of proposals will be destroyed or returned at the offeror’s expense after consultation with the offeror. There are no exceptions to this deadline.

1.8. PREPARING A RESPONSE

This RFP contains the instructions governing the proposals to be submitted and a description of the mandatory requirements. To be eligible for consideration, an offeror must meet the intent of all mandatory requirements. Compliance with the intent of a mandatory requirement will be determined by the Purchasing Office. When imperative language (shall, will, must) appears in any section of the RFP, it is considered to be mandatory.

1.8.1. Offerors shall promptly notify the City of any ambiguity, inconsistency or error, which they may discover upon examination of this RFP.

1.9. CLARIFICATION/ INTERPRETATION

Offerors requiring clarification or interpretation of any section or sections contained in this RFP shall make a written request to the City Purchasing Agent by the deadline described in the Schedule of Events. All written correspondence must be addressed to:

The City Of Midland FAX: (432) 685-0523 Office of the Purchasing Agent OR P.O. Box 1152 e-mail: purchasing@midlandtexas.gov Midland, TX 79702

1.10. FORMAT FOR INQUIRIES:

Each offeror submitting written questions must clearly address each question by reference to a specific section, page and item of this RFP. An official written answer will be provided to all questions received. Verbal responses shall not be considered binding.

1.11. INTERPRETATION:

Any interpretation, correction or change of this RFP will be made by written Addendum.

Interpretations, corrections or changes of this RFP made in any other manner will not be binding and offerors shall not rely upon such interpretations, corrections or changes.

The City of Midland Purchasing Office will issue any necessary Addenda.

A point-by-point response to all numbered sections, subsections, paragraphs, subparagraphs and appendices must be submitted by each offeror in order to be considered for selection.

1.12. PROPOSAL ORGANIZATION AND SUBMISSION

Offerors must organize proposals into sections following the format of this RFP, with tabs separating each section. If no exception, explanation, or clarification is required in the offeror's response to a specific subsection, the offeror shall indicate so in the point-by-point response with the following:

“(Offeror’s Name)", understands and will comply.

1.13. OFFER PRICING

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Offerors must respond to this RFP by utilizing the RFP Cost Summary. The cost summary will be used as the primary representation of each offeror’s cost, and will be used extensively during proposal evaluations. Additional information should be included as necessary to explain in detail the offeror’s cost.

Proposals should be complete to the degree that all of the information sought by this RFP is supplied in the order requested.

1.14. SUBMITTING A SEALED PROPOSAL

1.14.1.1. Offerors must submit through the E-Procurement system or by mail. Sealed proposals must be received by the date before the time stated on the face of the Request for Proposal Cover Page, local time. Sealed Proposals received after this time will not be accepted for consideration. Facsimile copies are not acceptable now.

1.14.1.2. If submitting by mail please be sure to label the outermost package of the RFP whether it is an envelope, box or overnight package with the RFP number, RFP description and closing date so that it is visible when received by the City.

1.14.2. Each Offeror who submits a proposal represents that:

1.14.2.1. The proposal is based upon an understanding of the specifications and requirements described in this RFP.

1.14.2.2. Costs for developing and delivering responses to this RFP and any subsequent presentations of the proposal as requested by the City are entirely the responsibility of the offeror. The City is not liable for any expense incurred by the offerors in the preparation and presentation of their proposals.

1.14.2.3. All materials submitted in response to this RFP become the property of the City and are to be appended to any formal documentation, which would further define or expand any contractual relationship between the City and offeror resulting from this RFP process.

1.14.3 The proposals must be signed in ink by an individual authorized to legally bind the business submitting the proposal.

A proposal may not be modified, withdrawn or canceled by the offeror for a 60-day period following the deadline for proposal submission, or receipt of best and final offer, if required, as defined in the Schedule of Events, and offeror so agrees in submitting the proposal.

1.15. RIGHTS RESERVED

While the City has every intention to award a contract as a result of this RFP, issuance of the RFP in no way constitutes a commitment by the City of Midland to award a contract. Upon determination, such actions would be in its best interests, the City in its sole discretion reserves the right to:

A) waive any formality;

b) cancel or terminate this RFP;

c) reject any or all proposals received in response to this document;

d) waive any undesirable, inconsequential, or inconsistent provisions of this document, which would not have significant impact on any proposal; not award, or if awarded, terminate any contract if the City determines adequate City funds are not available.

1.16. OFFEROR INTERVIEW / PRODUCT DEMONSTRATION

After receipt of all proposals and before the determination of the award, respondents may be required to make an oral presentation and product demonstration in Midland, Texas to clarify

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1.17. SUBCONTRACTING

1.17.1. The successful offeror will be the Prime Contractor and shall be responsible, in total, for all work of subcontractors. All subcontractors must be listed in the proposal.

The City reserves the right to approve all subcontractors.

1.17.2. The contractor shall be responsible to the City for the acts and omissions of all subcontractors or agents and of persons directly or indirectly employed by such subcontractors, and for the acts and omissions of persons employed directly by the contractor. Further, nothing contained within this document or any contract documents created as a result of any contract awards derived from this RFP shall create any contractual relationships between any subcontractor and the City.

1.18. INSURANCE REQUIREMENTS

See Contract or Agreement

1.19. CONTRACTOR'S RESPONSIBILITIES

The successful offeror shall keep informed of, and shall comply with all applicable laws, ordinances, rules, regulations and orders of the City, County, State, Federal or public bodies having jurisdiction affecting any work to be done to provide the services required. The offeror shall provide all necessary safeguards for safety and protection, as set forth by the United States Department of Labor, Occupational Safety and Health Administration.

1.20. OFFEROR COMPETITION

The City encourages free and open competition among offerors. Whenever possible, specifications, proposal requests and conditions are designed to accomplish this objective, consistent with the necessity to satisfy the City's need to procure technically sound, cost-effective services.

The offeror's signature on a proposal in response to this RFP guarantees that the prices quoted have been established without collusion of other eligible offerors and without effort to preclude the City of Midland from obtaining the best possible price.

1.21. CONTRACT PROVISIONS AND TERMS

1.21.1. Contract Execution

1.21.1.1. The City will execute a contract with the successful offeror(s). The City requires that the RFP and the terms and conditions attached to it, the offeror’s response, the best and final offer (if required), and any formal addenda to the RFP be included as part of any contract documents.

1.21.2. Terms and Conditions

Contract that will be executed by the successful offeror and the City is found in Appendix A.

1.21.3. Exceptions to Contract Terms & Conditions

Offerors should notify the City of any terms within the sample contract that either precludes them from responding to the RFP or add unnecessary cost.

1.21.4. The initial contract(s) term is for a period of one (1) year. Renewals of the contract may be made at 1 year intervals, not to exceed a total of (5) five years, at the City's option.

1.21.5. Contract Extension

The offeror agrees that, through the term of the initial contract and any agreed-upon extension, the City will be entitled to any price reductions at least equal to any lower prices made available to any other customer of comparable volume.

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1.21.6. Escalation

Annual pricing adjustments to contract extensions following the initial contract term, if applicable, shall not exceed seventy-five percent (75%) of the rate of increase in the cost of living as reflected in the Federal Bureau of Labor Statistics, Consumer Price Index (CPI) for all Urban Consumers (1982-84=100; through November 1991 = 137.8) or any other index which may be substituted in the future. The CPI for the latest twelve (12) month period of the contract will be the CPI base on which later adjustments are computed. Each time an adjustment is made, the earlier CPI base will be replaced by the adjusted CPI base. The percentage of adjustment to contract prices shall in no event exceed the percentage change in the index.

2. PROPOSAL WAIVERS:

2.1. WAIVER OF ATTORNEY FEES: BY SUBMITTING THIS PROPOSAL,

OFFEROR AGREES TO WAIVE AND DOES HEREBY KNOWINGLY,

CONCLUSIVELY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY

CLAIM IT HAS OR MAY HAVE IN THE FUTURE AGAINST CITY

REGARDING THE AWARD OF ATTORNEY’S FEES, WHICH ARE IN ANY

WAY RELATED TO THIS PROPOSAL, OR THE CONSTRUCTION,

INTERPRETATION OR BREACH OF THIS PROPOSAL. OFFEREOR

SPECIFICALLY AGREES THAT IF OFFEROR BRINGS OR COMMENCES

ANY LEGAL ACTION OR PROCEEDING RELATED TO THIS PROPOSAL,

THE CONSTRUCTION, INTERPRETATION, VALIDITY OR BREACH OF

THIS PROPOSAL, INCLUDING, BUT NOT LIMITED TO, ANY ACTION

PURSUANT TO THE PROVISIONS OF THE TEXAS UNIFORM

DECLARATORY JUDGMENTS ACT (TEXAS CIVIL PRACTICE AND

REMEDIES CODE SECTION 37.001, ET SEQ., AS AMENDED), OR CHAPTER

271 OF THE TEXAS LOCAL GOVERNMENT CODE, OFFEROR AGREES TO

ABANDON, WAIVE AND RELINQUISH ANY AND ALL RIGHTS TO THE

RECOVERY OF ATTORNEY’S FEES TO WHICH OFFEROR MIGHT

OTHERWISE BE ENTITLED.

2.2. OFFEROR AGREES THAT THIS IS THE VOLUNTARY AND INTENTIONAL

RELINQUISHMENT AND ABANDONMENT OF A PRESENTLY-EXISTING

KNOWN RIGHT. OFFEROR ACKNOWLEDGES THAT IT UNDERSTANDS

ALL TERMS AND CONDITIONS OF THIS PROPOSAL. OFFEROR FURTHER

ACKNOWLEDGES AND AGREES THAT THERE WAS AND IS NO

DISPARITY OF BARGAINING POWER BETWEEN CITY AND OFFEROR.

THIS SECTION SHALL NOT BE CONSTRUED OR INTERPRETED AS A

WAIVER OF GOVERNMENTAL IMMUNITY AND SHALL SURVIVE THE

TERMINATION OF THE CONTRACT.

2.3. OFFEROR IS RELYING ON ITS OWN JUDGMENT. OFFEROR HAD THE

OPPORTUNITY TO DISCUSS THESE PROPOSAL DOCUMENTS WITH

COMPETENT LEGAL COUNSEL PRIOR TO SUBMISSION OF THE

PROPOSAL OR EXECUTION OF THE CONTRACT.

2.4. WAIVER:

2.5. BY SUBMITTING A PROPOSAL, THE OFFEROR AGREES TO WAIVE AND

DOES HEREBY VOLUNTARILY AND INTENTIONALLY WAIVE, ABANDON

AND RELINQUISH ANY CLAIM THE OFFEROR HAS OR MAY HAVE IN THE

FUTURE AGAINST THE CITY OF MIDLAND, TEXAS, AND THE CITY’S

EMPLOYEES, AGENTS AND OFFICERS, ARISING OUT OF OR IN ANY WAY

CONNECTED WITH THE FOLLOWING:

2.5.1. THE ADMINISTRATION, EVALUATION OR RECOMMENDATION OF ANY

PROPOSAL;

2.5.2. WAIVER OR DELETION OF ANY OF THE REQUIREMENTS UNDER THE

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PROPOSAL DOCUMENTS OR THE CONTRACT DOCUMENTS;

2.5.3. ACCEPTANCE OR REJECTION OF ANY PROPOSALS; OR

2.5.4. AWARD OF THE CONTRACT.

2.6. BY SUBMITTING A PROPOSAL, THE OFFEROR ACKNOWLEDGES THAT

THE OFFEROR UNDERSTANDS ALL OF THE TERMS OF THE PROPOSAL

DOCUMENTS AND CONSENTS TO THE PROPOSAL PROCESS AND THE

POSSIBILITY OF A NEGATIVE ASSESSMENT. BY SUBMITTING A

PROPOSAL, THE OFFEROR ACKNOWLEDGES AND AGREES THAT THERE

WAS AND IS NO DISPARITY OF BARGAINING POWER BETWEEN THE

OFFEROR AND THE CITY OF MIDLAND, TEXAS. THE OFFEROR AGREES

THAT THIS IS THE INTENTIONAL RELINQUISHMENT OF A PRESENTLY

EXISTING KNOWN RIGHT. BY SIGNING THE PROPOSAL AND/OR BELOW,

YOUR COMPANY AGREES TO THE ABOVE WAIVER(S).

2.7. BY SIGNING THE EXECUTION OF OFFER, YOUR COMPANY AGREES TO

THE ABOVE WAIVER(S). IF THIS FORM IS NOT SIGNED AND INCLUDED

WITH YOUR PROPOSAL DOCUMENTS YOUR PROPOSAL WILL BE

CONSIDERED NON-RESPONSIVE AND WILL BE REJECTED.

3. SCOPE OF PROJECT

The City of Midland seeks Professional Services for Central Service Cost Allocation Plans, including preparation of:

• A federally compliant 2 CFR 200 Central Service Cost Allocation Plan,

• A Full Cost Allocation Plan reflecting true program and administrative costs,

• An Internal Service Fund Analysis evaluating structure, operations, and cost recovery.

The selected consultant will conduct comprehensive financial consulting services to develop annual cost allocation plans that meet state and federal requirements. The project requires deep expertise in governmental cost allocation methodologies, indirect cost identification, and allocation model development. Tasks include data collection, methodology design, plan creation, staff review sessions, and deliverable preparation.

4. REQUIREMENTS

The consultant shall meet the following project requirements:

4.1 Data Collection & Review

A. Gather organizational charts, ERP financials, and determine central service units.

The extent of this effort should be as in-depth and as extensive as is required and necessary to support the methodology.

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B. Conduct meetings with city Departments for design input of the plan. Determine functions of the central service departments.

C. Identify and request allocation data needed from departments.

D. Provide preliminary budget and detailed timeline.

4.2 Methodology Development: Prepare one or two design options, including a double step-down plan compliant with 2 CFR 200.

A. Identify and Provide Allocation Base Metrics that are appropriate and based on current and accurate information.

B. Provide allocations to every department receiving services, regardless of actual payments for those services.

C. Determine and Provide Direct Charges – usually do not include departmental overhead. Adjust for these costs.

D. Propose and defend allocation basis by providing documentation on calculations.

4.3 Development of Cost Allocation Plans

A. Prepare drafts of plans for review including excel based cost models.

B. Explain the allowability of expenses and important differences between the 2

CFR 200 and Full Cost Plans.

C. Ensure the 2 CFR 200 Central Service Cost Allocation Plan is FAA compliant, and that all plans are structurally and operationally sound and meet federal compliance standards.

D. Cost Allocation plans should include:

• Direct and indirect cost identification;

• Allocation methodologies using rational basis;

• Rate development and support schedules.

4.4 Internal Services Fund Analysis:

A. Review the internal service funds and revenue received from other governmental and non-governmental funds.

4.5 Review, Training & Presentation

A. Provide presentation of results and review with key staff.

B. Provide any training and explanation of methodology.

C. Efficiently explain variances.

D. Provide examples of how and why each of the CFR 200 and Full-Cost can be utilized

4.6 Deliverables

4.6.1 Provide a complete 2 CFR 200 cost allocation plan

4.6.2 Full-Cost Allocation plan

4.6.3 Indirect cost rate

4.6.4 Results from analysis of the internal service funds.

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4.6.5 Implementation and procedural norms.

5. NARRATIVE

Midland Texas is the 5th largest economy in the State of Texas with an MSA population of 182,324. The Midland Area has topped GDP growth among the 150 Extended Metropolitan Areas in the US at 5.2%. These areas include Austin (3.7%), San Francisco (3.0%), Seattle (2.3%), Nashville (2.3%) and Dallas (2.0%).

The City of Midland employs approximately 1,280 staff and delivers services across multiple administrative and operational departments. The General Fund Budget for FY2027 is $197 million with all funds budgeted at $504 million. The General Fund is supported primarily through Property and Sales Tax making up 70% of revenue, with remaining revenue from taxes, franchise, and other fees.

The General Fund includes police, fire, street maintenance, health department activities, parks and recreation, code compliance, building inspections, and most administrative functions such as administrative services, finance, purchasing, and information systems.

City has multiple enterprise and internal services funds, including water and sewer, sanitation, drainage, Golf Course, and the Midland International Air and Spaceport, which is under a massive expansion due to the growth in the area. Internal service funds include Employee Benefits, Risk, Garage, and Technology funds.

Costs continue to rise and pressing budget realities the city faces are the costs of public safety, healthcare insurance, equipment costs and information technology system improvements. The City continues to absorb many of these cost increases by doing more with less and implementing solid practices which include cost recovery. An innovative, and methodical cost allocation assessment and implementation plan is needed to allocate and recover costs among city funds.

Proposals will be evaluated heavily based on the projected yearly cost to the City, encompassing all necessary expenses for the operation, maintenance, and any additional services required.

Vendors must provide a detailed breakdown of all annual costs associated with their proposed solution.

6. VENDOR QUALIFICATIONS

6.1. INFORMATION VERIFICATION

The City may make such investigations as deemed necessary to determine the ability of the offeror to supply the products and perform the services specified.

6.2. RIGHT TO REJECT

The City reserves the right to reject any proposal if the evidence submitted by, or investigation of, the offeror fails to satisfy the City that offeror is properly qualified to carry out the obligations of the contract.

6.3. VENDOR CAPABILITIES

In determining the capabilities of an offeror to perform the services specified herein, the

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6.3.1. References

6.3.1.1. Offeror shall provide a minimum of 3 references that are using services of the type proposed in this RFP. The references should fall within the categories identified below. At a minimum, the offeror shall provide the company name, the location where the services were provided, contact person(s), customer telephone number, a complete description of the service type, and dates the services were provided. The City reserves the right to use any information or additional references deemed necessary to establish the ability of the offerors to perform the conditions of the contract. Negative references may be grounds for proposal disqualification.

6.3.1.2. These references should include City government, County government, or other taxing entities, where the offeror, preferably within the last 5years, has successfully completed cost allocation plan accounting/services.

6.3.2. Vendor Stability

6.3.2.1. Offerors shall demonstrate their financial stability to supply, install and support the services specified.

6.3.2.2. Provide financial statements, preferably audited, for the 2 consecutive years immediately preceding the issuance of this RFP.

6.3.2.3. Provide copies of any quarterly financial statements that have been prepared since the end of the period reported by your most recent annual report.

6.3.2.4. An offeror shall specify how long it has been in business doing cost allocation plan developments.

7. EVALUATION PROCESS

7.1. EVALUATION PROCEDURE

7.1.1. Committee Actions

7.1.1.1. The evaluation committee will separate proposals into “responsive” and “non-responsive” proposals. Non-responsive proposals will be eliminated from further consideration.

7.1.1.2. The evaluation committee will evaluate the remaining proposals and determine whether to award the contract to the best proposal or to seek a best and final offer before awarding a contract. Selection and award will be based on the offeror’s proposal and other items outlined in this RFP.

7.1.1.3. Responses must be complete and address all the criteria listed. Information or materials presented by offerors outside the formal response or subsequent “best and final offer,” if requested, will not be considered and will have no bearing on any award.

7.2. EVALUATION CRITERIA

The evaluation committee will review and evaluate the offers according to the following criteria:

7.2.1. Company Service Qualifications: 20%

• Demonstrated success on at least three recent similar projects, including cost allocation development and preparing internal service fund analyses for municipal governments.

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7.2.2. Three references: 5% Recent experience on similar projects, showing professional integrity, reputation and competency.

7.2.3. Project Manager: 10% Provide Qualifications and Availability of key personnel, with relevant education, certifications, and expertise in cost allocation methodologies

7.2.4. Implementation Plan: 15%

• Ability to meet project schedule.

• Provide detailed timeline of activities within the required timeframe. Deliverables are required annually by April.

7.2.5. Training Requirements: 10%

• Ability to explain complex allocation logic to non-finance stakeholders in simple terms.

• Skills in gathering business requirements and aligning allocation methods with organizational goals.

• Ability to create clear, auditable documentation explaining methodologies, assumptions, cost pools, drivers, and rationale.

• Developing process maps or SOPs to ensure repeatability and compliance.

7.2.6. Organization: Process Design & Optimization: 5%

• Skills in streamlining allocation processes, reducing manual work, and improving accuracy.

• Understanding of allocation methodologies (e.g., usage-based, headcount-based, revenue-based, activity-based costing).

• Ability to validate allocation drivers using correlation, trend, or root-cause analysis.

7.2.7. Technical Abilities: Financial & Accounting Expertise: 20%

• Strong understanding of cost accounting principles, such as direct vs. indirect costs, overhead distribution, and cost drivers.

• Knowledge of GAAP or relevant regulatory frameworks if your organization is subject to compliance requirements.

• Ability to interpret financial statements and understand how allocations impact P&L, balance sheet, and managerial reporting.

• Familiarity with ERP systems (SAP, Oracle, Workday, Dynamics, etc.) and how cost centers, ledgers, and financial dimensions flow through them.

• Ability to work with large datasets, clean them, and structure them for cost allocation.

• Proficiency with Excel (pivot tables, lookup functions, SUMIFS, INDEX/MATCH, arrays, Power Query, etc.).

• Skill in building cost allocation models and performing scenario/sensitivity analysis.

7.2.8. Cost of Service: 15%

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8. PROPOSAL CONTENTS

The following items constitute the RFP submittal in response to the request herein:

8.1. THE RFP

8.2. THE COST SUMMARY OR PROPOSAL FORM

8.3. REQUESTED ATTACHMENTS

8.3.1. References

8.3.2. Resumes

8.3.3. Business Plan

8.3.4. Financial Information

8.3.5. Signed Execution of Offer

9. TEXAS PUBLIC INFORMATION ACT

Notwithstanding any other provisions, this request for proposals, along with any associated contract, is subject to the Texas Public Information Act.

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EXECUTION OF OFFER

Date:

In compliance with this RFP, and subject to all the conditions herein, the undersigned offers and agrees to furnish any or all commodities or services at the prices quoted.

By executing this offer, Offeror affirms that he/she has not given, offered to give, nor intends to give at anytime hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant in connection with the submitted offer.

Failure to sign the offer, or signing it with a false statement, shall void the submitted offer or any resulting contracts, and the Offeror shall be removed from all proposal lists.

By the signature hereon affixed, the Offeror hereby certifies that neither the Offeror or the firm, corporation, or institution represented by the Offeror or anyone acting for such firm, corporation, or institution has violate the antitrust laws of this State, codified in Section 15.01, et seq., Texas Business and Commerce Code, or the Federal antitrust laws, nor communicated directly or indirectly the offer being made to any competitor or any other person in such line of business. By signing this offer, Offeror certifies that if a Texas address is shown as the address of the Offeror, Offeror qualifies as a Texas Resident Offeror as defined in Rule 1 TAC 113.8.

This offer consists of pages number 1 through .

Offeror/ COMPANY:

SIGNATURE (INK):

NAME: (TYPED/PRINTED)

TITLE:

STREET:

CITY/STATE/ZIP:

TELEPHONE: FAX:

E-MAIL ADDRESS:

1.6.3. Documents not meeting all of the requirements of (1) and (2) will be available for public inspection, including copyrighted materials.