12-646RFR.doc

COMMONWEALTH OF MASSACHUSETTS

DEPARTMENT OF REVENUE

REQUEST FOR RESPONSE FOR

UNDERGROUND STORAGE TANK PROGRAM

THIRD PARTY CLAIMS ADMINISTRATION

AND ASSOCIATED TECHNICAL SERVICES

RFR 12-646

DATE OF ISSUE: JULY 12, 2011

CONTACT PERSON: JOE BELLOFATTO

(617) 626-2808

TABLE OF CONTENTS

1. REQUEST FOR RESPONSE INTRODUCTION AND OVERVIEW

1.1 RFR Identification

1.2 RFR Background

1.3 Scope of Services

2. PROCUREMENT OVERVIEW

2.1 Procurement Information

2.2 Procurement Timetable

3.

PROCUREMENT PROCEDURES

3.1 RFR Release

3.2 Bidder Communication

3.3 RFR Amendments

3.4 Procurement Cancellation

3.5 Written Inquiries

3.6 Conflict of Interest

3.7 Collusion

3.8 Debarred Bidder or Subcontractor

3.9 Alternatives

3.10 Corrections or Clarifications of Responses

3.11 Best and Final Offer

3.12 Bidder Selection and Award Notice

3.13 Contract Negotiation and Execution

4.

REQUIRED SPECIFICATIONS – OPERATIONAL SERVICES DIVISION

4.1 Supplier Diversity Program (SDP)

4.2 Supplier Diversity Program Subcontracting Policies

4.3 Best Value Selection and Negotiation

4.4 Comm-PASS

4.5 Contract Expansion

4.6 Costs

4.7 Debriefing

4.8 Electronic Communication/Update of Bidder’s/Contractor’s Contact Information

4.9 Electronic Funds Transfer (EFT)

4.10 Environmental Response Submission Compliance

4.11 Minimum Bid Duration

4.12 Pricing: Federal Government Services Administration (GSA) or Veteran’s Administration Supply

4.13 Pricing: Price Limitation

4.14 Prompt Payment Discounts (PPD)

4.15 Public Records

4.16 Reasonable Accommodation

4.17 Restriction on the Use of the Commonwealth’s Seal

4.18 Subcontracting Policies

4.19 Contract Termination

4.20 Insurance

4.21 Invoicing and Hold-Backs from Payments

4.22 Performance Reviews

4.23 Property of DOR

4.24 Publicity

4.25 Brand Name or Equal

4.26 Estimated Provisions

4.27 Performance and Payment Time Frames Which Continue Beyond the Duration of the Contract

4.28 Complaint Resolution

4.29 Contractor Record Keeping

5.

DEFINITIONS

6.

CONTRACTOR AND CONTRACTOR’S EMPLOYEE REQUIREMENTS

6.1 Contractor Tax and Child Support Compliance

6.2 Confidentiality and Security

6.3 Contractor’s Employee Requirements

7.

PHYSICAL AND TECHNICAL SECURITY REQUIREMENTS

7.1 Managing Operation and Physical Security Controls

7.2 Storage, Transmission and Monitoring Technical, Operational and Management Controls

7.3 Configuration, Maintenance, Logging, Audit and Inventory Requirements

7.4 Policies and Procedures

7.5 Internet Access

7.6 Destruction of Data

7.7 Periodic Review by DOR

8.

PERFORMANCE GOALS AND MEASUREMENTS

8.1 General

8.2 Quantitative Evaluation Criteria

8.3 Qualitative Evaluation Criteria

8.4 Performance Measurements

9.

EVALUATION PROCEDURES AND CRITERIA

10.

SUBMISSION OF RESPONSES

10.1 General

10.2 Response Delivery

10.3 Response Labeling and Packaging

11.

REQUIRED DOCUMENTS TO BE SUBMITTED WITH BIDDER’S RESPONSE

11.1 Required Commonwealth Forms

11.2 Mandatory Information Required from Bidders – Not to Be Scored

11.3 Mandatory Information Required from Bidders – To Be Scored

12.

COST RESPONSE

ATTACHMENT A – COST RESPONSE FORM

1. REQUEST FOR RESPONSE INTRODUCTION AND OVERVIEW

1.1 RFR Identification.

This document entitled “Request for Response for Underground Storage Tank Program Third Party Claims Administration and Associated Technical Services” (RFR) is issued by the Massachusetts Department of Revenue’s (DOR) Underground Storage Tank Program (USTP), which is within the Executive Office for Administration and Finance. The purpose of this RFR is to solicit Responses from Bidders that can act as a Third Party Administrator (TPA) to provide claims administration support and associated technical services to the USTP.

A Procurement Management Team (PMT) has been selected to identify the Scope of Services, develop Selection Criteria and Performance Goals and Measurements, evaluate all Responses, and award a contract to the Selected Bidder.

This procurement is authorized and governed by 801 CMR 21.00 et. seq. and by those common law principles that have been established by the Commonwealth’s courts regarding government procurements. This RFR complies with World Trade Organization (WTO) Government Procurement Agreement because it has been advertised for a period of 40 days or more between the RFR announcement and the Response submission deadline.

The Contracts will be funded in whole by state funds.

1.2 RFR Background.

Federal law requires owners and operators of petroleum underground storage tanks (USTs) to demonstrate financial responsibility. Financial responsibility is proof of the ability to pay for response actions, third party damages and damage to natural resources caused by a release from an underground storage tank system. To assist UST owners/operators in meeting this financial responsibility requirement, the USTP’s Administrative Review Board (“the Board”), promulgated the UNDERGROUND STORAGE TANK PETROLEUM PRODUCT CLEANUP FUND REGULATIONS, 503 CMR 2.00. The USTP reimburses eligible owners or operators for eligible petroleum product releases from USTs.

The USTP is similar to insurance. Pursuant to M.G.L. c. 21J, §2, funding to support the program is derived from fees paid on petroleum product deliveries and annual tank fees.

Presently the fees are as follows: $250.00 per tank per year maintenance fee and 2½ cents per gallon delivery fee. These fees currently generate approximately $75 million annually. Eligible parties may file claims with the USTP for reimbursement of response action costs, third party damage costs, and damages to natural resources incurred from leaking USTs and/or historical petroleum product contamination.

By statute, the Board is comprised of the following members: the Commissioner of the Department of Revenue or his designee, who serves as Chairman; the State Fire Marshal or his designee; the Commissioner of the Department of Environmental Protection or his designee; and six members appointed by the Governor who must be representatives of the following groups: the Massachusetts Petroleum Council; the New England Service Station and Automotive Repair Association; the Independent Oil Marketers Association of New England; a financial institution or organization; an insurance institution or organization; and a statewide environmental public interest organization. The statute requires seven members constitute a quorum, but for the purposes of voting to approve any reimbursement, five members constitute a quorum.

Bidders must be aware that the Board can make regulation and policy changes affecting the claim process at any time. The approval process can slow down at times because of the lack of quorum and/or various issues presented by the Board. The successful Bidder will appear at each Board meeting, including subcommittee meetings, and must be prepared to provide oral and written updates of its claims processing activities to the Board and its various subcommittees.

There are three basic steps to the USTP: Compliance, Eligibility and Reimbursement. Each step has its own criteria and regulatory requirements. Since October 1994, the USTP has utilized the services of a TPA for reimbursement claims processing and is advertising this RFR because of the prior contract expiration. Please note that in addition, M.G.L. c. 21J and M.G.L. c. 148, §37A established a grants program for cities and towns to fund removal or replacement of USTs. However, the city and town grant programs are not the subject of this RFR. Department staff will remain solely responsible for grant program processing.

The Department employs an Executive Director and staff to assist the Board in carrying out the day-to-day administration of the USTP. The DOR is seeking a TPA to assist the USTP Staff and provide reimbursement claim processing and reconsideration/conference data integration. The TPA must also be able to provide specific capabilities and skills including: 1) electronic database systems capability and support; 2) administrative support; 3) technical environmental skills; and 4) technical financial skills. The services to be provided pursuant to this RFR are described in Section 1.3.

The Department anticipates the TPA’s services to commence on or about September 19, 2011. Bidders are on notice that it is of utmost importance to the DOR and the Board to have no delays in claims processing. The successful Bidder, therefore, must be prepared to commence claims processing on or about September 19, 2011.

1.3 Scope of Services.

1.3.1 General.

This part of the RFR presents the services that Bidders will be required to perform under any contract that results from this RFR and are to be considered within the contract unit price provided under Section 12.

The TPA will provide support in the following areas:

· Reimbursement Claims Processing and Management; and

· General Administrative and Technical Support.

1.3.2 Reimbursement Claims Processing and Management.

The TPA, under the direction of the Executive Director or his designee, will process claims for reimbursement for the USTP and manage and report the information generated as a result of the reimbursement claim processing. The TPA will process and manage claims for activities carried out in accordance with the regulations governing the reimbursement process. Processing of claims will occur throughout the term of the contract. Processing of these claims will include, but not be limited to, the following activities as required under 503 CMR 2.00.

A. Pick up and deliver reimbursement claims, files and reports to the USTP office.

B. Record the date of receipt from the USTP of each reimbursement claim.

C. Establish that each claim is submitted within regulatory deadlines.

D. Review claim for completeness, including supporting documentation, and accuracy of cost and computations.

E. Determine whether the response action activities proposed for reimbursement are eligible activities under 21J regulations and are submitted and formatted correctly in accordance with the Reimbursement Fee Schedule; whether appropriate response action activities were taken given the characteristics of the site and the release; whether the costs for the response actions are within the ranges established in Appendix 3 (Reimbursement Fee Schedule) of the reimbursement regulations (503 CMR 2.00); and whether such costs are not in excess of what has been previously paid to a Claimant (e.g., task maximums and applicable per occurrence maximums), taking into account all prior submissions by that Claimant.

F. Resolve areas of uncertainty through contacts with the Claimant and the USTP Staff.

G. Based on the results of activities (a) through (e), recommend to the Executive Director whether a full approval, partial approval, or denial of the claim should be recommended to the Board.

H. Update the database information system throughout and at the end of the claims processing activities.

I. Following the Board’s vote of a claim, return all claim files to the USTP as directed.

J. Immediately notify the Contract Manager, in writing, of any Conflict of Interest.

K. Within the initial contract period, prepare written guidelines (Internal Procedures), subject to approval by the Executive Director, stating how activities (a) through (j) will be accomplished.

The goal of this contract is to assist the Department in processing the backlog of reimbursement claim applications. The approximate number of claims currently in backlog is 1,500 claims. Claims will be assigned to the Contractor based on staffing capacity and the Contractor’s ability to meet contract performance goals. The Bidder can also refer to the USTP website (www.mass.gov/ust) for the actual number of claims received per fiscal year since inception.

1.3.2 General Administrative and Technical Support.

The TPA will provide support in three (3) areas under the administrative and technical support task:

· information systems and support;

· information line and response to requests for information; and

· technical skills and support.

1.3.2.1 Information Systems and Support.

Upon award, the USTP will provide the TPA with a copy of the UST Program database, a Microsoft Access database (ver. 2003). However, this database is currently being upgraded to Microsoft Access version 2010. The TPA will be required to obtain and maintain the necessary licenses for a compatible version of Microsoft Access for the current database and the pending upgrade, as well as any necessary computer hardware to operate the software and database, including version upgrades as necessary. The TPA will maintain the database, computer data communications, and data processing support necessary for operation of the claims reimbursement program.

All data and databases, including documentation, used and developed in the performance of this contract will be considered the property of the DOR and shall not be disseminated to any party without the expressed consent of the USTP The TPA is also required to provide systems expertise to resolve problems with PC-based information systems and to carry out networking and basic programming tasks.

1.3.2.2 Information Line

The TPA will provide and staff an information telephone line to answer Claimants’ questions concerning the USTP and the status of specific claim applications. Information line staff must have real-time access to the TPA’s information system. This information line must be available during the TPA’s normal business hours.

As necessary, the TPA is also required to assist DOR in preparing responses to requests for information including copying documents, faxing, emailing, and mailing information as requested.

1.3.2.3 Technical Skills and Support

The TPA staff must have a range of technical skills to support different components of the USTP. These technical skills will include, at a minimum, the following:

· assessment of containment and removal response actions and costs;

· assessment of “reasonable and appropriate” response actions;

· assessment of “cost effective” response actions;

· UST regulatory compliance;

· financial accounting;

· financial auditing;

· regulatory analysis; and

· database management.

2. PROCUREMENT OVERVIEW

2.1 Procurement Information.

Massachusetts Department of Revenue

100 Cambridge Street, Suite 600

Boston, MA 02114

Telephone: 617-626-2808

Facsimile: 617-660-0111

Email: bellofatto@dor.state.ma.us

Procurement Type:

Single Department Procurement/Single

Department User Contract.

Procurement Category:

Professional Services/SERVICES – HUMAN RESOURCES – Program Coordinators

2.2 Procurement Timetable.

This Timetable is subject to change at the discretion of the PMT.

3. PROCUREMENT PROCEDURES

3.1 RFR Release.

This RFR has been distributed electronically as an open solicitation under the Department of Revenue on www.comm-pass.com. Comm-PASS is the official system of record for all procurement information which is publicly accessible at no charge at www.comm-pass.com. Information contained in this document and in each tab of the Solicitation, including file attachments, and information contained in the related Bidders’ Forum(s), are all components of the Solicitation.

3.2 Bidder Communication.

From the RFR’s date of release on Comm-PASS until the execution of the contract, prospective bidders are prohibited from communicating directly with any DOR employee regarding this RFR or the solicitation process. Bidders may contact a DOR employee in the ordinary course of business in regard to tax, wage reporting or child support matters, and bidders with current DOR contracts may contact DOR to the extent necessary for performance of the vendor’s contractual obligations, but the bidder may not discuss the RFR or the solicitation process. DOR may deem violation of this provision sufficient cause for disqualification of a bidder’s response. Except as otherwise specified in the RFR, no individual Commonwealth employee or representative is authorized to provide any information or respond to any question or inquiry concerning the RFR. Bidders may contact the Contact Person in the event this RFR is incomplete or the bidder is having trouble obtaining any required attachments electronically through Comm-PASS.

3.3 RFR Amendments.

If it becomes necessary to revise any part of the RFR, or if additional data is necessary to clarify any of its provisions, an amendment will be issued to prospective bidders by the amendment deadline through Comm-PASS. It is the bidder’s responsibility to check Comm-PASS for any supplement or clarification. Any bidder that has difficulty accessing or downloading a supplement or clarification should notify DOR’s Contact Person. Only a written supplement or clarification will bind DOR. If a major amendment is made after the deadline for submission of responses, the PMT shall allow current bidders either to submit new responses or to submit amendments to previously submitted responses. The PMT shall also allow responses from additional bidders.

If it becomes necessary for the PMT to make a significant change to the scope of this RFR, one which might result in encouraging additional bidders to submit responses, the PMT may either amend the RFR and re-advertise the amendment in the same manner as the RFR was advertised, or withdraw the RFR, cancel the procurement, and begin a new procurement.

DOR may, at any time prior to the award of the contract, and without penalty, amend the RFR or change the RFR requirements, scope, budget or schedule upon notice to bidders.

3.4 Procurement Cancellation.

The PMT may, for any reason, at any time prior to the execution of the contract, and without penalty, notify bidders on Comm-PASS of the rejection of all responses and the cancellation of the procurement. The PMT will post a notice of the cancellation on Comm-PASS. The notice need not state the reason for the cancellation. The PMT is not required to return any responses if the procurement is cancelled.

3.5 Written Inquiries.

Prospective bidders may submit written questions raised by this RFR to the Contact Person no later than the date and time specified in the Procurement Timetable in Section 2.2, by e-mail only, not by telephone. Bidders are responsible for confirming the actual receipt of written inquiries by DOR. The PMT will review and consolidate inquiries received by the deadline and prepare written answers to questions.

Bidders are encouraged to raise any questions regarding this RFR, particularly as they relate to Section 7. (Physical and Technical Security Requirements).

All written answers will be distributed through Comm-PASS; it is the bidder’s responsibility to check Comm-PASS for the answers. DOR will not send written answers directly to any bidder unless the bidder is having difficulty obtaining them through Comm-PASS. Any bidder experiencing difficulty accessing or downloading the written answers should notify DOR’s Contact Person.

DOR reserves the right to refuse to answer any inquiries concerning this RFR after the date and time specified in the Procurement Timetable in Section 2.2. Bidders are advised that only the PMTL, acting on behalf of the PMT, can answer questions, clarify issues, or render any opinion regarding the RFR.

Only written answers posted on Comm-PASS will bind DOR.

3.6 Conflict of Interest.

Each response shall include a statement indicating whether or not the bidder or any of the subcontractors or employees has a possible conflict of interest in connection with this procurement and, if so, the nature of that conflict. DOR reserves the right to disqualify the response or cancel the contract award if any interest disclosed from any source could either give the appearance of a conflict or cause speculation as to the objectivity of the contractor, a subcontractor, or any employee. DOR’s determination regarding any questions of conflict of interest shall be final. Certain key employees may be deemed "special state employees" under M.G.L. chapter 268A, the Commonwealth’s conflict of interest law. Former DOR employees who are currently employed by a contractor may be subject to chapter 268A. In addition, bidders and contractors are advised to check M.G.L. chapter 268A before approaching any DOR employee about possible employment or consulting work with the bidder or contractor. Former DOR employees may not accept compensation in connection with matters in which they participated as DOR employees.

Any questions about the applicability or operation of chapter 268A should be addressed to the State Ethics Commission at (617) 371-9500. The State Ethics Commission’s website is www.mass.gov/ethics.

3.7 Collusion.

The PMT may disqualify any response if the PMT reasonably believes that the response is the result of collusion or unfair trade practices by one or more bidders agreeing to act in a manner intended to avoid or frustrate fair and open competition.

3.8 Debarred Bidder or Subcontractor.

The PMT will disqualify any response submitted by a bidder who is subject at that time to any state or federal debarment order or determination, including, but not limited to, an order or determination under Executive Order 147, M.G.L. chapter 152, section 29F, and M.G.L. chapter 152, section 29C. If the bidder’s response depends upon the services of a named subcontractor and the disqualification of the named subcontractor would have a material effect on the response, then the PMT will disqualify the response, if the named subcontractor is subject to debarment at the time the response is submitted.

3.9 Alternatives.

A response that fails to meet any material term or condition of the RFR, including the submission of required attachments, may lose points or may be disqualified because it is deemed unresponsive. Unless otherwise specified, bidders may submit responses proposing alternatives which provide equivalent, better or more cost effective performance than is achievable under the stated RFR specifications. These alternatives may include related commodities or services that may be available to enhance performance during the period of the contract. The response should describe how any alternative achieves substantially equivalent or better performance to that of the RFR specifications.

The PMT will determine if a proposed alternative method of performance achieves substantially equivalent or better performance. The goal of this RFR is to provide the best value of commodities and services to achieve the procurement goals of DOR. Bidders that propose discounts, uncharged commodities and services or other benefits in addition to the RFR specifications may receive a preference or additional points under this RFR as specified.

Bidders may also propose alternatives for equivalent, better or more cost effective performance than specified under the bidder’s original response to enable DOR to take advantage of enhanced technologies, commodities or services which become available during the term of the contract.

3.10 Corrections or Clarifications of Responses.

The PMT shall have full discretion to allow corrections to a response. Bidders shall be accorded fair and equal treatment with respect to an opportunity to correct minor errors in a response. Minor errors are matters of form rather than substance and include clerical errors and insignificant mistakes that can be corrected without prejudice to other bidders. Mistakes in responses, which are clearly evident, such as typographical errors, transposition errors and arithmetical errors where the intended response is obvious, may, at the option of the PMT, be corrected by the bidder or waived. However, no correction of costs, terms and conditions contained in a response, or the submission of supplemental information prejudicial to the interests of other bidders or to fair competition, shall be permitted.

If DOR requires a clarification of any particular section of a response, DOR will provide all bidders with the same notice and opportunity for clarification of the identified section in the response. Clarifications are explanations of what is stated in a response and may not be used as an opportunity by a bidder to submit supplemental information or a change to a response, unless DOR specifically requests these submissions or changes as part of the clarification of all responses. No correction or clarification of costs, terms and conditions contained in a response, or the submission of supplemental information prejudicial to the interests of other bidders or to fair competition, shall be permitted.

3.11 Best and Final Offer.

Pursuant to 801 CMR 21.06(11), the PMT may provide bidders with an opportunity to provide a Best and Final Offer (BAFO). This is an optional tool in the bidder selection process and is not considered part of the final contract negotiation process. A BAFO may follow a reverse auction or multiple rounds of competitive negotiations or may be done independently.

BAFOs may be useful when no single response addresses all the specifications, when the costs submitted by all bidders are too high, when Supplier Diversity Program Plans do not contain sufficient SOMWBA certified M/WBE participation, when two or more bidders are very close or tied after the initial evaluation process or when all bidders submitted responses that are unclear or deficient in one or more areas.

The PMT may restrict the number of bidders invited to submit a BAFO or may offer the option to all bidders. In either case, the PMT should provide the same information and the same submission requirements to all bidders chosen to submit a BAFO. DOR will develop and distribute to selected bidders the written terms for a BAFO with specific information on what is being requested, submission requirements with timelines and information on the basis for evaluating responses and determining the successful bidder(s). Bidders may be asked to reduce costs or provide additional clarification to specific sections of the RFR. DOR may evaluate the submissions of BAFOs as an addition to the scores already received by bidders on their original RFR responses or may develop a new evaluation process based entirely on the BAFO submission.

Selected bidders are not required to submit a BAFO and may submit a written response notifying the PMT that their response remains as originally submitted. During the BAFO process, it is permissible to disclose the lowest price submitted during the initial responses but not to disclose the identity of the bidder. Further, it is not permissible to disclose the current rank of any of the bidders. The PMTL will have full discretion to accept or reject any information submitted in a BAFO.

3.12 Bidder Selection and Award Notice.

Notice to a bidder that it has been awarded the contract does not constitute acceptance of all the terms of a response by DOR and shall not impose any contractual obligation on DOR. DOR will post the name of the selected bidder on Comm-PASS, and will also notify the selected bidder in writing of the award of the contract.

3.13 Contract Negotiation and Execution.

Once the contract is awarded, DOR may negotiate certain terms of the contract, provided that the change is within the scope of the original RFR and a selected bidder’s response. A bidder may be disqualified if DOR determines that it is unreasonably delaying the timely execution of the contract or if the bidder conditions the execution of the contract upon DOR’s acceptance of additional or amended terms or conditions. If a bidder is disqualified for any reason once the contract has been awarded to it, or if a contract is terminated for any reason, DOR may award the contract to the next highest ranked bidder if its terms remain substantially the same as those in its original response.

The executed contract shall include the Commonwealth’s Terms and Conditions, the Commonwealth’s Standard Contract Form, the RFR (as amended, supplemented, or clarified, and including all attachments and exhibits), the bidder’s response (as amended, supplemented, or clarified, and including all attachments and exhibits), DOR’s written answers to questions, and any written negotiated terms.

4. REQUIRED SPECIFICATIONS – COMMONWEALTH’S OPERATIONAL SERVICES DIVISION

The terms of 801 CMR 21.00: Procurement of Commodities and Services are incorporated by reference into this RFR. Words used in this RFR shall have the meanings defined in 801 CMR 21.00 (and 808 CMR 1.00, if applicable). Additional definitions may also be identified in this RFR. Unless otherwise specified in this RFR, all communications, responses, and documentation must be in English, all measurements must be provided in feet, inches, and pounds and all cost proposals or figures in U.S. currency. All responses must be submitted in accordance with the specific terms of this RFR.

4.1 Supplier Diversity Program (SDP).

Massachusetts Executive Order 524 established a policy to promote the award of state contracts in a manner that develops and strengthens Minority and Women Business Enterprises (M/WBEs) that resulted in the Supplier Diversity Program in Public Contracting. M/WBEs are strongly encouraged to submit responses to this RFR, either as prime vendors, joint venture partners or other type of business partnerships. All bidders must follow the requirements set forth in the SDP section of the RFR, which will detail the specific requirements relating to the prime vendor’s inclusion of M/WBEs. Bidders are required to develop creative initiatives to help foster new business relationships with M/WBEs within the primary industries affected by this RFR. In order to satisfy the compliance of this section and encourage bidder’s participation of SDP objectives, the Supplier Diversity Program (SDP) Plan for large procurements greater than $50,000 will be evaluated at 10% or more of the total evaluation. Once an SDP Plan is submitted, negotiated and approved, the agency will then monitor the contractor’s performance, and use actual expenditures with SDO certified contractors to fulfill their own SDP expenditure benchmarks. M/WBE participation must be incorporated into and monitored for all types of procurements regardless of size, however, submission of an SDP Plan is mandated only for large procurements over $50,000.

This RFR will contain some or all of the following components as part of the Supplier Diversity Program Plan submitted by bidders:

· sub-contracting with certified M/WBE firms as defined within the scope of the RFR,

· growth and development activities to increase M/WBE capacity,

· ancillary use of certified M/WBE firms,

· past performance or information of past expenditures with certified M/WBEs; and

· additional incentives for bidders to commit to at least one certified MBE and WBE in the submission of SDP plans.

A Minority Business Enterprise (MBE), Woman Business Enterprise (WBE), M/Non-Profit, or W/Non-Profit, is defined as such by the Supplier Diversity Office (SDO). All certified businesses that are included in the bidder’s SDP proposal are required to submit an up to date copy of their SDO certification letter. The purpose for this certification is to participate in the Commonwealth’s Supplier Diversity Program for public contracting. Minority- and Women-Owned firms that are not currently certified but would like to be considered as an M/WBE for the purpose of this RFR should submit their application at least two weeks prior to the RFR closing date and submit proof of documentation of application for consideration with their bid proposal. For further information on SDO certification, contact their office at 1-617-973-8692 or via the Internet at mass.gov/SDO.

4.2 Supplier Diversity Program Subcontracting Policies.

Prior approval of the agency is required for any subcontracted service of the contract. Agencies may define required deliverables including, but not limited to, documentation necessary to verify subcontractor commitments and expenditures with Minority- or Women-Owned Business Enterprises (M/WBEs) for the purpose of monitoring and enforcing compliance of subcontracting commitments made in a bidder’s Supplier Diversity Program (SDP) Plan. Contractors are responsible for the satisfactory performance and adequate oversight of its subcontractors.

4.3 Best Value Selection and Negotiation.

The Procurement Management Team (PMT) may select the response(s) which demonstrates the best value overall, including proposed alternatives that will achieve the procurement goals of the department. The PMT and a selected bidder, or a contractor, may negotiate a change in any element of contract performance or cost identified in the original RFR or the selected bidder’s or contractor’s response which results in lower costs or a more cost effective or better value than was presented in the selected bidder’s or contractor’s original response.

4.4 Comm-PASS.

Comm-PASS is the official system of record for all procurement information which is publicly accessible at no charge at www.comm-pass.com. Information contained in this document and in each tab of the Solicitation, including file attachments, and information contained in the related Bidders’ Forum(s), are all components of the Solicitation.

Bidders are solely responsible for obtaining all information distributed for this Solicitation via Comm-PASS, by using the free Browse and Search tools offered on each record-related tab on the main navigation bar (Solicitations and Forums). Forums support Bidder submission of written questions associated with a Solicitation and publication of official answers. All records on Comm-PASS are comprised of multiple tabs, or pages. For example, Solicitation records contain Summary, Rules, Issuer(s), Intent or Forms & Terms and Specifications, and Other Information tabs. Each tab contains data and/or file attachments provided by the Procurement Management Team. All are incorporated into the Solicitation.

It is each Bidder’s responsibility to check Comm-PASS for:

· any addenda or modifications to this Solicitation, by monitoring the “Last Change” field on the Solicitation’s Summary tab; and

· any Bidders’ Forum records related to this Solicitation (see Locating a Online Bidders’ Forum for information on locating these records.

The Commonwealth accepts no responsibility and will provide no accommodation to Bidders who submit a Response based on an out-of-date Solicitation or on information received from a source other than Comm-PASS.

Comm-PASS SmartBid Subscription. Bidders may elect to obtain an optional SmartBid subscription which provides value-added features, including automated email notification associated with postings and modifications to Comm-PASS records. When properly configured and managed, SmartBid provides a subscriber with:

· a secure desktop within Comm-PASS for efficient record management

· a customizable profile reflecting the subscriber’s product/service areas of interest

· a customizable listing in the publicly accessible Business Directory, an online “yellow-pages” advertisement

· full-cycle, automated email alert whenever any record of interest is posted or updated

· access to Online Response Submission, when allowed by the Issuer, to support:

· paperless bid drafting and submission to an encrypted lock-box prior to close date

· electronic signature of OSD forms and terms; agreement to defer wet-ink signature until Contract award, if any

· withdrawal of submitted bids prior to close date; and

· online storage of submitted bids

Every public purchasing entity within the borders of Massachusetts may post records on Comm-PASS at no charge. Comm-PASS has the potential to become the sole site for all public entities in Massachusetts. SmartBid fees are only based on and expended for costs to operate, maintain and develop the Comm-PASS system.

4.5 Contract Expansion.

If additional funds become available during the contract duration period, the department reserves the right to increase the maximum obligation to some or all contracts executed as a result of this RFR or to execute contracts with contractors not funded in the initial selection process, subject to available funding, satisfactory contract performance and service or commodity need.

4.6 Costs.

Costs which are not specifically identified in the bidder’s response, and accepted by a department as part of a contract, will not be compensated under any contract awarded pursuant to this RFR. The Commonwealth will not be responsible for any costs or expenses incurred by bidders responding to this RFR.

4.7 Debriefing.

Non-successful bidders may request a debriefing from the department.

4.8 Electronic Communication/Update of Bidder’s/Contractor’s Contact Information.

It is the responsibility of the prospective bidder and awarded contractor to keep current the email address of the bidder’s contact person and prospective contract manager, if awarded a contract, and to monitor that email inbox for communications from the PMT, including requests for clarification. The PMT and the Commonwealth assume no responsibility if a prospective bidder’s/awarded contractor’s designated email address is not current, or if technical problems, including those with the prospective bidder’s/awarded contractor’s computer, network or internet service provider (ISP) cause email communications sent to/from the prospective bidder/awarded contractor and the PMT to be lost or rejected by any means including email or spam filtering.

4.9 Electronic Funds Transfer (EFT).

All bidders responding to this RFR must agree to participate in the Commonwealth Electronic Funds Transfer (EFT) program for receiving payments, unless the bidder can provide compelling proof that it would be unduly burdensome. EFT is a benefit to both contractors and the Commonwealth because it ensures fast, safe and reliable payment directly to contractors and saves both parties the cost of processing checks. Contractors are able to track and verify payments made electronically through the Comptroller’s Vendor Web system. A link to the EFT application can be found on the OSD Forms page (www.mass.gov/osd). Additional information about EFT is available on the VendorWeb site (www.mass.gov/osc). Click on MASSfinance.

Successful bidders, upon notification of contract award, will be required to enroll in EFT as a contract requirement by completing and submitting the Authorization for Electronic Funds Payment Form to this department for review, approval and forwarding to the Office of the Comptroller. If the bidder is already enrolled in the program, it may so indicate in its response. Because the Authorization for Electronic Funds Payment Form contains banking information, this form, and all information contained on this form, shall not be considered a public record and shall not be subject to public disclosure through a public records request.

The requirement to use EFT may be waived by the PMT on a case-by-case basis if participation in the program would be unduly burdensome on the bidder. If a bidder is claiming that this requirement is a hardship or unduly burdensome, the specific reason must be documented in its response. The PMT will consider such requests on a case-by-case basis and communicate the findings with the bidder.

4.10 Environmental Response Submission Compliance.

In an effort to promote greater use of recycled and environmentally preferable products and minimize waste, all responses submitted should comply with the following guidelines:

· all copies should be printed double sided;

· all submittals and copies should be printed on recycled paper with a minimum post-consumer content of 30% or on tree-free paper (i.e. paper made from raw materials other than trees, such as kenaf). To document the use of such paper, a photocopy of the ream cover/wrapper should be included with the response;

· unless absolutely necessary, all responses and copies should minimize or eliminate use of non-recyclable or non re-usable materials such as plastic report covers, plastic dividers, vinyl sleeves and GBC binding. Three ringed binders, glued materials, paper clips and staples are acceptable;

· Bidders should submit materials in a format which allows for easy removal and recycling of paper materials;

· Bidders are encouraged to use other products which contain recycled content in their response documents. Such products may include, but are not limited to, folders, binders, paper clips, diskettes, envelopes, boxes, etc. Where appropriate, bidders should note which products in their responses are made with recycled materials;

· unnecessary samples, attachments or documents not specifically asked for should not be submitted.

4.11 Minimum Bid Duration.

Bidders responses/bids made in response to this RFR must remain in effect for at least 90 days from the date of bid submission.

4.12 Pricing: Federal Government Services Administration (GSA) or Veteran’s Administration Supply.

The Commonwealth reserves the right to request from the successful bidder(s) initial pricing schedules and periodic updates available under their GSA or other federal pricing contracts. In the absence of proprietary information being part of such contracts, compliance for submission of requested pricing information is expected within 30 days of any request. If the contractor receives a GSA or Veteran’s Administration Supply contract at any time during this contract period, it must notify the Commonwealth contract manager.

4.13 Pricing: Price Limitation.

The bidder must agree that no other state or public entity customer within the United States of similar size and with similar terms and conditions shall receive a lower price for the same commodity and service during the contract period, unless this same lower price is immediately effective for the Commonwealth. If the Commonwealth believes that it is not receiving this lower price as required by this language, the bidder must agree to provide current or historical pricing offered or negotiated with other state or public entities at any time during the contract period in the absence of proprietary information being part of such contracts.

4.14 Prompt Payment Discounts (PPD).

All bidders responding to this procurement must agree to offer discounts through participation in the Commonwealth Prompt Payment Discount (PPD) initiative for receiving early and/or on-time payments, unless the bidder can provide compelling proof that it would be unduly burdensome. PPD benefits both contractors and the Commonwealth. Contractors benefit by increased, usable cash flow as a result of fast and efficient payments for commodities or services rendered. Participation in the Electronic Funds Transfer initiative further maximizes the benefits with payments directed to designated accounts, thus eliminating the impact of check clearance policies and traditional mail lead time or delays. The Commonwealth benefits because contractors reduce the cost of products and services through the applied discount. Payments that are processed electronically can be tracked and verified through the Comptroller’s Vendor Web system. The PPD form can be found under the Forms and Terms tab of this solicitation.

Bidders must submit agreeable terms for Prompt Payment Discount using the PPD form within their proposal, unless otherwise specified by the PMT. The PMT will review, negotiate or reject the offering as deemed in the best interest of the Commonwealth.

The requirement to use PPD offerings may be waived by the PMT on a case-by-case basis if participation in the program would be unduly burdensome on the bidder. If a bidder is claiming that this requirement is a hardship or unduly burdensome, the specific reason must be documented in or attached to the PPD form.

4.15 Public Records.

All responses and information submitted in response to this RFR are subject to the Massachusetts Public Records Law, M.G.L., c. 66, s. 10, and to c. 4, s. 7, ss. 26. Any statements in submitted responses that are inconsistent with these statutes shall be disregarded.

4.16 Reasonable Accommodation.

Bidders with disabilities or hardships that seek reasonable accommodation, which may include the receipt of RFR information in an alternative format, must communicate such requests in writing to the contact person. Requests for accommodation will be addressed on a case by case basis. A bidder requesting accommodation must submit a written statement which describes the bidder’s disability and the requested accommodation to the contact person for the RFR. The PMT reserves the right to reject unreasonable requests.

4.17 Restriction on the Use of the Commonwealth Seal.

Bidders and contractors are not allowed to display the Commonwealth of Massachusetts Seal in their bid package or subsequent marketing materials if they are awarded a contract because use of the coat of arms and the Great Seal of the Commonwealth for advertising or commercial purposes is prohibited by law.

4.18 Subcontracting Policies.

Prior approval of the department is required for any subcontracted service of the contract. Contractors are responsible for the satisfactory performance and adequate oversight of its subcontractors. Human and social service subcontractors are also required to meet the same state and federal financial and program reporting requirements and are held to the same reimbursable cost standards as contractors.

4.19 Contract Termination.

DOR may terminate the contract without cause upon thirty (30) days written notice to the Contractor’s Contract Manager, based on the following circumstances including but not limited to the following:

· bidder is unable to perform claims processing in a timely fashion or in accordance with the USTP’s requirements;

· there is evidence or appearance of illegality, corruption, or fraud associated with the award or implementation of the contract;

· the funds for the services to be provided under the contract cease to be available or are not approved within the spending plan of the Commonwealth during any fiscal year period included within the term of the contract; or

· a change in general or special law or regulation that prohibits or limits the Department’s authorization to spend available funds for the purpose of the contract.

The Contractor may terminate the contract without cause upon one hundred and eighty (180) days written notice to DOR’s Contract Manager. Upon the expiration or termination of the contract, the vendor must complete all claims administration up to the date specified in the notice of contract expiration or termination and shall be compensated. The Contractor must continue to comply with all the terms of the contract after such notice.

DOR reserves the right to suspend or terminate the contract immediately, if it determines that any term of this RFR or any resulting contract has been violated.

4.20 Insurance.

The contractor must purchase and maintain at its expense general liability insurance. The insurance coverage shall remain in effect until ninety (90) days after the termination or expiration of the contract. DOR shall be named as an additional insured on any such policy. All required insurance policies must be maintained with companies that may lawfully issue the policies and must have an A.M. Best rating of at least A-7 or a Standard and Poor’s rating of at least AA, unless prior written approval is obtained from DOR’s contract manager.

A contractor, as a prerequisite to contract execution, must provide evidence that it has met these requirements (such as a copy of a binder or a certificate of insurance) to DOR. Each insurance policy must have only such deductibles as are reasonable and customary. The contractor must name DOR as an additional insured on the policy. Said policies must provide that the carrier may not cancel or transfer the policy without giving DOR thirty (30) days written notice prior to the cancellation or transfer. The contractor shall timely renew the policies required during the term of the contract, including any extensions, and shall provide DOR with evidence of such insurance and renewals upon request.

DOR reserves the right to require that a contractor obtain additional insurance as a condition of executing the contract or at any point during the contract term.

4.21 Invoicing and Hold-Backs from Payments.

The contractor must bill DOR by submitting an accurate invoice to the DOR’s contract manager. The frequency and format of each invoice will be negotiated by DOR and the selected bidder.

DOR may retain 10% of the amount due the contractor on each invoice, if the contractor’s performance is not timely or a deliverable does not meet all of DOR’s requirements for acceptance. DOR will remit this amount to the contractor only if and when DOR accepts the deliverable and the contractor has provided any required documentation to DOR’s contract manager.

4.22 Performance Reviews.

DOR will periodically review the contractor’s performance under the contract. DOR will review the contractor’s performance based on the following factors, among others:

· adherence to claims processing turnaround time milestones;

· responsiveness to UST and claimant requests;

· ability to provide technical services promptly;

· compliance with Confidentiality and Security Requirements; and

·…