1600019_CBR_IFB.pdf

STATE OF CALIFORNIA

FRANCHISE TAX BOARD

Business Acquisitions Unit P.O. Box 2086, Mailstop A-374

Rancho Cordova, CA 95741-2086

(916) 845-4385 FAX (916) 843-0136

Invitation For Bid (IFB) NOTICE TO PROSPECTIVE BIDDERS May 5, 2016

You are invited to review and respond to the attached IFB, entitled “Credit Bureau Reports, FTB- IFB-1617- C1600019”. The Franchise Tax Board (FTB) is asking that in submission of your bid, you comply with the following instructions:

I. GENERAL INFORMATION:

All bids/protests/requests for additional information must be submitted as follows:

All bids must be submitted in the enclosed envelope or under sealed cover and plainly marked "BID FOR CREDIT BUREAU REPORTS - DO NOT OPEN". Bids not submitted under sealed cover will be rejected.

All bids shall include; i.e., signed sheet entitled "Bid", Cost Sheet, and any other required attachments. Bids not including the proper "Required Attachments" shall be ruled non-responsive, which means the bid did not meet the basic bid requirements.

The bid addresses for:

Overnight Deliveries (UPS, Express Mail, Federal Express) Franchise Tax Board

Business Acquisitions Unit Attn: Courtney Adams, MS A374

Central Office 9646 Butterfield Way

Sacramento, CA 95827

For information:

Phone: (916) 845-4385

Email: Courtney.Adams@ftb.ca.gov

BETTY T. YEE

Chair

FIONA MA, CPA

Member

MICHAEL COHEN

Member mailto:Courtney.Adams@ftb.ca.gov

II. TIME SCHEDULE:

Contractor shall adhere to the timetable noted below:

1. IFB available to prospective bidders May 5, 2016

2. Written question submittal due by 2:00 PM (PST) May 12, 2016

3. Bids are due by 2:00 PM (PST) May 19, 2016

4. Bid opening to be held at 10:00 AM (PST) May 23, 2016

5. Award of Agreement to successful bidder* May 25, 2016

6. Agreement development, processing and approval, and commencement of performance * July 1, 2016

7. Termination of Agreement June 30, 2017

* Dates subject to change without notice

Courtney Adams

Contract Administrator Business Acquisitions Unit

(916) 845-4385

REQUIRED ATTACHMENT

Checklist

Qualification Requirements

I certify that I meet the following qualification requirements:

Confirmed by FTB

Yes

Certify bidder has met all required tax filings and is in good standing with the FTB or any other agency of the State of California.

Yes

No

Yes My firm is willing and able to comply with all terms and conditions addressed in the IFB section entitled, “Scope of Work”, including those terms in the referenced exhibits.

Yes

No

Certify bidder is qualified to do business in the State of California. Yes

Bid Content

I have completed and returned the following REQUIRED MANDATORY attachments along with my bid. A complete bid package will consist of the items identified below:

Confirmed by FTB

Required Attachment/Checklist Yes

Bid/Bidder Certification Form Yes

Attachment I, Bid Cost Sheet Yes

Yes

Yes Attachment II, STD. CCC 307 – Contractor Certification Clauses and

Darfur Contracting Act Form

Yes

No

Yes Attachment III, Small Business and Non-Small Business Preference (If Applicable) Yes

Yes Attachment IV, Bidder’s Declaration GSPD 05-105

Yes Attachment V, Commercial Useful Function Documentation (If Applicable) Yes

No

Yes Attachment VI, STD. 204 – Payee Data Record Yes

Yes Attachment VIII, Mandatory Credit Reports Requirements (Please Include Sample)

Yes Taxpayer Credit Bureau Report Notice Sample *(Please Note Below)

Name of Firm: Signature:

Printed Name / Title: Date:

* If the Contractor elects to notify the debtor that a credit report was accessed, either voluntarily or to comply with

Federal or State law, the Contractor shall add the language below to the letter, and provide a copy of the letter for review

The California Franchise Tax Board has requested a Credit Bureau Report for the purposes of collecting a debt. If you have any questions, please contact The California Franchise Tax Board at (insert phone number of the user accessing the report – phone number to be provided by

FTB).

Note: Please submit your Subscriber’s Certifications/Terms with the Bid, if you employ one. It will be used for discovery purposes only, at this time.

BID/BIDDER CERTIFICATION FORM

BID LOG FTB-IFB-1617-C1600019, BID FOR CREDIT BUREAU REPORTS

This bid must be signed and returned along with all the "REQUIRED ATTACHMENTS" as an entire package in duplicate with original signatures. The bid must be transmitted in a sealed envelope in accordance with all bid instructions.

DO NOT RETURN "BID REQUIREMENTS" AND "PROPOSED AGREEMENT".

A. Our all inclusive bid is submitted as follows: (See Bid Cost Sheet) B. All Attachments follow behind this cover letter.

C. Your signature affixed hereon and dated certifies that you have made all California required tax filings and have no outstanding tax obligations. Your signature authorizes the verification of this certification.

(1) Company Name:

(2) Address:

(3) Federal I.D. Number:

(4) Sole Proprietorship: (5) Partnership: (6) Corporation:

(7) California Corporation No:

(8) Required License # or

Certificates:

(Contractor’s State Board #;

PUC License # CAL-T; or Licenses or Certifications)

(9) Contact Numbers:

Phone: ( ) Fax: ( )

(10) Bidder's Name and Title:

Printed or Typed

(11) Bidder’s Signature, Date:

Signature and Date Required

X

(12) Are you certified with the Department of General Services, Office of Small Business and DVBE Certification (OSDC) as a: (Circle either “Yes” or “No” for each category below)

Small Business Enterprise

Disabled Veteran Business Enterprise

NOTE: A copy of your certification is required to be included if the above item has been checked.

(SEE ATTACHED EXPLANATIONS ON BID SHEET)

EXPLANATION OF ITEMS ON "BID" SHEET

A. This bid shall be completed and submitted in accordance with the bid requirements.

B. The bidder is responsible for reading, understanding, and completing any or all of the attachments that follow behind the "Bid".

C. Your signature on this document certifies that you are in tax compliance.

(1) (2) (2a) and (3) Must be completed and are self-explanatory.

(4) Must be completed if you are a sole proprietorship.

A sole proprietorship is a form of business (other than a corporation or LLC) in which one person owns all the assets of the business. The sole proprietor is solely liable for all the debts of the business.

(5) Must be completed if you are a partnership or joint venture.

A partnership or joint venture is a voluntary agreement between two or more competent persons or entities to place money, effects, labor, and skill (or some or all of them) in lawful commerce or business, with the understanding that there shall be a proportional sharing of the profits and losses between them; It is an association of two or more persons or entities to carry on, as co-owners, a business for profit.

(6) Must be completed if you are a corporation.

A corporation is an artificial person or legal entity created by or under the authority of the laws of a state or nation, composed, in some instances, of a single person and his successors, being the incumbents of a particular office, but ordinarily consisting of an association of numerous individuals.

(7) Enter your corporation number assigned by the California Secretary of State’s Office. This information is used for checking if a corporation is in good standing and qualified to conduct business in California.

(8) Complete, if applicable, by indicating the type of license and/or certification that your firm possesses and that is required for the type of services being procured.

(9) (10) (11) Must be completed and are self-explanatory.

(12) Complete if certified by the Department of General Services, Office of Small Business and DVBE Certification (OSDC).

ATTACHMENT I

BID COST SHEET

Credit Bureau Reports, FTB- IFB-1617-C1600019

BIDS SUBMITTED WITHOUT THIS COST SHEET WILL BE REJECTED.

ITEM COST PER REQUESTS TOTAL

COST

1. Credit Report with FICO Score $__________ x up to 11,000 Requests* = $

TOTAL BID AMOUNT: $

*We are requiring a fixed per unit price

The estimated number of requests indicated above will be used solely for the purpose of computing the cost as a fair and equitable formula to determine the low bidder and is not binding on the contracting agency. However, the actual costs quoted above by the bidder shall be binding for the term of the Agreement.

ATTACHMENT II

CONTRACTOR CERTIFICATION CLAUSES (STD. CCC-307)

The attached Contracter Certification Clauses (STD CCC-307) provide the definitions to the standard contract language in this solicitation. Please sign and return this form upon request from FTB. The URL is listed below:

http://www.dgs.ca.gov/ols/Resources/StandardContractLanguage.aspx

DARFUR CONTRACTING ACT FORM

The Act is intended to preclude state agencies generally from contracting with SCRUTINIZED companies that do business in the African nation of Sudan (of which the Darfur region is a part), for the reasons described in Public Contract Code, section 10475.

http://www.documents.dgs.ca.gov/pd/poliproc/darfurcert072010.doc http://www.documents.dgs.ca.gov/pd/poliproc/darfurcert072010.doc

ATTACHMENT III

SMALL BUSINESS AND NON-SMALL BUSINESS PREFERENCE

1. Are you claiming preference as a Small Business?

YES _______ IF YES, PROVIDE THE OSDS REFERENCE NUMBER: __________

NO _______

If yes, submit your Small Business certification document from the Department of General Services.

2. Are you a Non-Small Business requesting the five percent (5%) preference? This preference is available to

Non-Small Businesses claiming twenty-five percent (25%) California certified Small Business subcontractor participation. The subcontracting must be a Commercially Useful Function (CUF) in order to qualify for this preference. The State reserves the right to verify CUF prior to contract award.

YES _______ NO _______

ATTACHMENT IV

BIDDER DECLARATION FORM GSPD-05-105

All bidders must complete the Bidder Declaration GSPD-05-105 and include it with the bid response.

http://www.documents.dgs.ca.gov/pd/delegations/GSPD105.pdf

DVBE DECLARATION FORM STD. 843

(If Applicable)

Bidders who have been certified by California as a DVBE (or who are bidding rental equipment and have obtained the participation of subcontractors certified by California as a DVBE) should also submit a completed form(s) STD. 843 (Disabled Veteran Business Enterprise Declaration). All Disabled Veteran Owners and Disabled Veteran Managers of the DVBE(s) must sign the form(s). Should the form not be included with the solicitation, contact the State contracting official or obtain a copy online from the Department of General Services Procurement Division, Office of Small Business and DVBE Services (OSDS) website at www.pd.dgs.ca.gov/smbus. The completed form should be included with the quotation/bid response. Please refer to the following URL for more details:

http://www.documents.dgs.ca.gov/pd/poliproc/STD-843.pdf http://www.documents.dgs.ca.gov/pd/delegations/GSPD105.pdf http://www.pd.dgs.ca.gov/smbus http://www.documents.dgs.ca.gov/pd/poliproc/STD-843.pdf

ATTACHMENT V

COMMERCIALLY USEFUL FUNCTION DOCUMENTATION

All certified Small Business, Micro-Business, and/or DVBE contractors, subcontractors, or suppliers must meet the Commercially Useful Function requirements under Government Code § 14837(d)(4) (for SB) and Military

Veterans Code § 999(b)(5) (for DVBE).

Please answer the following questions, as they apply to your firm for the goods/services being acquired in this procurement.

Will your company be responsible for the execution of a distinct element of the resulting contract? Yes___ No___

Will your company be actually performing, managing, or supervising an element of the resulting contract? Yes___ No___

Will your company be performing work on the resulting contract that is normal for its business, services, and functions? Yes___ No___

Will your company be responsible, with respect to products, inventories, materials, and supplies required for the contract, for negotiating price, determining quality and quantity, ordering, installing, if applicable, and making payment? Yes___ No___

Will there be any subcontracting that is greater than that expected to be subcontracted by normal industry practices for the resulting contract? Yes___ No___

A response of “NO” in questions 1-4, or a response of “YES” in question 5, may result in your quote being eliminated from consideration. At the State’s option prior to award, bidders may be required to submit additional written clarifying information.

ATTACHMENT VI

PAYEE DATA RECORD, STD. 204

The successful bidder as a result of this IFB will be required to sign the Payee Data Record, STD. 204, before contract award. Refer to the following website link for more details:

http://www.documents.dgs.ca.gov/dgs/fmc/pdf/std204.pdf http://www.documents.dgs.ca.gov/dgs/fmc/pdf/std204.pdf

ATTACHMENT VII

California Disabled Veteran Business Enterprise (DVBE) Program Requirements: The State has established goals for Disabled Veteran Business Enterprises (DVBE) participating in State contracts.

Please review the attached DVBE Program Requirements Package. Bidders must complete and return all the appropriate pages in order for the bid to be considered responsive. For the purposes of this solicitation, the DVBE Program Requirements are waived.

Disabled Veteran Business Enterprise (DVBE) Bid Incentive: Important note regarding the DVBE Bid Incentive – The following DVBE Bid Incentive (table provided below) will be applied for the purposes of this solicitation.

Please see attached link for DVBE Bid Incentive instructions:

http://www.documents.dgs.ca.gov/pd/poliproc/MASTER-DVBEIncentivePkg.pdf

In accordance with Section 999.5(a) of the Military and Veterans Code, an incentive will be given to DVBE bidders. For evaluation purposes only, the State shall apply an incentive to bids from a California certified DVBE and confirmed by the State. The following percentage will apply for awards based on low price.

DVBE BID INCENTIVE: A DVBE Bid Incentive will be given to a DVBE bidder as there are no subcontracting opportunities in regards to this solicitation. For evaluation purposes only, the State shall apply a DVBE Bid Incentive to bids obtained by a California certified DVBE and confirmed by the State.

For confirmed DVBE Participation the DVBE Incentive outlined in the table provided below will be applied:

Confirmed DVBE Participation of:

DVBE

Incentive:

100% 3%

Awards based on low price: The net bid price of responsive bids will be reduced (for evaluation purposes only) by the amount of DVBE Incentive as applied to the lowest responsive net bid price. If the #1 ranked responsive, responsible bid is a California certified Small Business, the only bidders eligible for the incentive will be California certified Small Businesses. The incentive adjustment for awards based on low price cannot exceed five percent (5%) or one-hundred thousand dollars ($100,000), whichever is less, of the #1 ranked net bid price. When used in combination with a preference adjustment, the cumulative adjustment amount cannot exceed fifteen percent (15%) or one-hundred thousand dollars ($100,000), whichever is less.

http://www.documents.dgs.ca.gov/pd/poliproc/MASTER-DVBEIncentivePkg.pdf

ATTACHMENT VIII

MANDATORY CREDIT REPORT REQUIREMENTS

(Check Yes or No)

1. The reports should contain the following information:

a. Name YES______ NO______

b. Complete Address YES______ NO______

c. Social Security Number YES______ NO______

d. Credit Summary YES______ NO______

e. FICO Score YES______ NO______

f. Employment Summary YES______ NO______

g. Summary of Recorded Judgments and Liens YES______ NO______

h. Subscriber Decode Information YES______ NO______

i. AKA’s (Also Known As) YES______ NO______

j. DBA’s (Doing Business As) YES______ NO______

k. Prior or Other Addresses YES______ NO______

The bidder is to complete this Attachment VIII–Mandatory Credit Report Requirement and submit it with your bid package. Bidder must indicate (Yes or No) if the sample credit report you are submitting meets each requirement. If a No box is checked for a mandatory requirement, your bid will be deemed non-responsive and will be rejected. Please submit a sample copy of the credit report. The sample must be submitted for verification of requested items.

BID REQUIREMENTS

A. SUBMISSION OF BID

1. All bids are to be sent to the Franchise Tax Board and must be received as indicated in Item II, Time Schedule. All bids must be addressed as listed in Item I, General Information.

2. All bids must be submitted in the envelope provided or under sealed cover. The sealed cover must be plainly marked with the IFB title and number, and must show your firm name and address.

3. Bids not submitted under sealed cover will be rejected. A minimum of two (2) copies must be submitted.

4. Bid must be submitted for the entire service described therein. Deviations from the specifications will not be considered and will be cause for rejection of bid.

5. A bid may be rejected if conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. The State may reject any or all bids and may waive any immaterial deviation in a bid. The State's waiver of immaterial defect shall in no way modify the IFB document or excuse the bidder from full compliance with the objectives if awarded the Agreement.

6. Costs for developing bids and in anticipation of award of the Agreement is entirely the responsibility of the bidder and shall not be chargeable to the State of California.

7. This IFB shall be signed by an individual who is authorized to bind the bidding firm contractually.

The signature must indicate the title or position that the individual holds in the firm. An unsigned bid shall be rejected.

8. A bidder may modify a bid after its submission by withdrawal and resubmitting prior to the bid submission deadline. Modification offered in any other manner, oral or written, will not be considered.

9. A bidder may withdraw a bid by submitting a written request for its withdrawal to the State, signed by the bidder or an agent authorized in accordance with Paragraph 7 above. A bidder may thereafter submit a new bid prior to such bid submission time. Bids may not be withdrawn without cause subsequent to bid submission time.

10. FTB may modify the IFB prior to the date and time fixed for submission of bids by the issuance of an addendum to all parties who received a bid package.

11. If all bids are deemed too high, the Department is not required to enter into an Agreement.

12. Bids are public upon bid opening; however, the contents of all proposals, draft bids, correspondence, agenda, memoranda, working papers, or any other medium which discloses any aspect of a bidder's proposal shall be held in the strictest confidence until bid is awarded. The content of all working papers and discussions relating to the bidder's proposal shall be held confidential indefinitely unless the public interest is best served by an item’s disclosure because of its direct pertinence to a decision, agreement, or the evaluation of the bid. Any disclosure of this subject by the bidder is a basis for rejecting this proposal and ruling the bidder ineligible to further participate.

BID REQUIREMENTS (continued)

13. Bidders are cautioned not to rely on the State during the evaluation to discover and report to the bidder all defects and errors in the submitted documents. Bidders, before submitting their documents, should carefully proof them for errors and adherence to the IFB requirements.

B. EVALUATION AND SELECTION PROCESS

1. The State will put each bid through a process of evaluation to determine the responsiveness of bids to the State's needs. The final selection will be made on the basis of the lowest qualified bid.

2. At the time of bid opening, each bid will be checked for the presence or absence of required information in conformance with the submission requirements of this IFB.

3. Bids which contain false or misleading statements, or which provide references that do not support an attribute or condition claimed by the bidder, may be rejected. If, in the opinion of the State, such information was intended to mislead the State in its evaluation of the bid, and the attribute, condition, or capability is a requirement of this IFB, it will be the basis for rejection of the bid.

C. AWARD & PROTEST

1. Whenever an Agreement is awarded under a procedure which provides for competitive bidding, but the Agreement is not to be awarded to the low bidder, the low bidder shall be notified by telegram, electronic facsimile transmission, overnight courier, or personal delivery five (5) working days prior to the award of the Agreement.

2. Upon written request by any bidder who has submitted a bid, notice of the proposed award shall be posted in a public place in the office of the contracting agency at least five (5) working days prior to awarding of the Agreement.

3. If, prior to the award, any bidder files a protest with FTB against the awarding of the Agreement on the grounds that the bidder is the lowest responsible bidder meeting the specifications for the IFB, the Agreement shall not be awarded until either the protest has been withdrawn or the Department of General Services has decided the matter.

4. Within five (5) days after filing the protest, the Protestant shall file with the Department of General Services a full and complete written statement specifying the grounds for the protest. The written protest must be sent to the Department of General Services, Office of Legal Services, 707 Third Street, 7th Floor, West Sacramento, CA 95605. A copy of that written protest must be mailed to the Franchise Tax Board, P.O. Box 2086, Rancho Cordova, California 95741-2086. It is suggested that you submit any protest by certified or registered mail.

D. DISPOSITION OF BIDS

All documents submitted in response to this IFB will become the property of the State of California and may be returned only at the bidder's expense.

E. ADDITIONAL INFORMATION

In the opinion of FTB, this IFB is complete and without need of explanation. Should clarifying information be needed, contact the Business Acquisitions Unit’s Agreement Administrator by telephoning (916) 845-4385. However, no information given will be binding upon the State unless such information is issued as an official written addendum.

F. STANDARD CONDITIONS OF SERVICE

1. Service shall be available no later than five (5) days, or on the express date set by FTB and the Contractor, after all approvals have been obtained and an Agreement is fully executed. Should the Contractor fail to commence work at the agreed upon time, FTB, upon five (5) days’ written notice to the Contractor, reserves the right to terminate the Agreement, assess FIVE HUNDRED DOLLARS ($500.00) for administrative costs of rebidding the work. In addition, the Contractor shall be liable to the State for the difference between the Contractor's bid price and the actual cost of performing the work by the second low bidder or by another Contractor.

2. All performance under the Agreement shall be completed on or before the termination date of the Agreement.

3. The State will not accept indemnity language from a prospective Contractor. The only acceptable indemnity language is that which is listed in Exhibit C, General Terms and Conditions, Paragraph (5) Five (Refer to Proposed Agreement).

4. Evaluation of contracted services shall be completed by FTB no later than thirty (30) days after termination of the Agreement.

5. No oral understanding or agreement not incorporated in the executed Agreement shall be binding on either party to the Agreement.

G. CALIFORNIA DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) PROGRAM REQUIREMENTS

For the purposes of this solicitation, the DVBE Program Requirements are waived.

H. DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) BID INCENTIVE (is included)

Please see ATTACHMENT VII.

I. SMALL BUSINESS NONPROFIT VETERAN SERVICE AGENCIES (SB/NVSA)

SB/NVSA prime bidders meeting requirements specified in Military and Veterans Code Section 999.50, et seq. and obtaining a California certification as a Small Business are eligible for the five percent (5%) Small Business preference.

J. SMALL BUSINESS REGULATIONS

The Small Business regulations, located in the California Code of Regulations (Title 2, Division 2, Chapter 3, Subchapter 8, Section 1896, et seq.), concerning the application and calculation of the Small Business preference, Small Business certification, responsibilities of Small Business, Department certification, and appeals are revised, effective 09/09/04. The new regulations can be viewed at

(www.pd.dgs.ca.gov/smbus). Access the regulations by clicking on “Small Business Regulations” in the right sidebar. For those without Internet access, a copy of the regulations can be obtained by calling the Office of Small Business and DVBE Services at (916) 375-4940.

K. NON-SMALL BUSINESS SUBCONTRACTOR PREFERENCE

A five percent (5%) bid preference is available to a Non-Small Business (NS) claiming twenty-five percent (25%) California certified Small Business (SB) subcontractor participation. If claiming the Non-SB subcontractor preference, the bid response must include a list of the SB(s) with which you commit to subcontract in an amount of at least twenty-five percent (25%) of the net price with one or more California certified SBs. Each listed certified SB must perform a “Commercially Useful Function” in the performance of the contract as defined in Government Code section 14837(d)(4).

The required list of California certified SB subcontracts must be attached to the bid response and must include the following: 1) subcontractor name, 2) address, 3) phone number, 4) a description of the work to be performed and/or products supplied, and 5) the dollar amount or percentage of the net bid price (as specified in the solicitation) per subcontractor. Completion of the Bidder Declaration serves this purpose.

Bidders claiming the five percent (5%) preference must commit to subcontract at least twenty-five percent (25%) of the net bid price with one or more California certified SBs. Completed certification applications and required support documents must be submitted to the Office of Small Business and DVBE Services (OSDS) no later than 5:00 PM Pacific Standard Time (PST) on the bid due date, and the OSDS must be able to approve the application as submitted. Questions regarding certification should be directed to the OSDS at (916) 375-4940.

http://www.pd.dgs.ca.gov/smbus

STANDARD AGREEMENT

STD 213 (Rev 06/03) AGREEMENT NUMBER

REGISTRATION NUMBER

1. This Agreement is entered into between the State Agency and the Contractor named below:

STATE AGENCY'S NAME

Franchise Tax Board

CONTRACTOR'S NAME

PROPOSED CONTRACTOR

2. The term of this

Agreement is: July 1, 2016 or date of approval, whichever is later, through June 30, 2017

3. The maximum amount $ of this Agreement is:

4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made a part of the Agreement.

Exhibit A – Scope of Work 2 pages

Exhibit B – Budget Detail and Payment Provisions 2 pages

Exhibit C* – General Terms and Conditions GTC 610

Check mark one item below as Exhibit D:

Exhibit - D Special Terms and Conditions (Attached hereto as part of this agreement) 4 pages

Exhibit - D* Special Terms and Conditions

Items shown with an Asterisk (*), are hereby incorporated by reference and made part of this agreement as if attached hereto.

These documents can be viewed at http://www.dgs.ca.gov/ols/Resources/StandardContractLanguage.aspx

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.

CONTRACTOR California Department of General Services Use Only

CONTRACTOR’S NAME (if other than an individual, state whether a corporation, partnership, etc.)

BY (Authorized Signature)

DATE SIGNED(Do not type)

PRINTED NAME AND TITLE OF PERSON SIGNING

ADDRESS

AGENCY NAME

Franchise Tax Board BY (Authorized Signature)

DATE SIGNED(Do not type)

PRINTED NAME AND TITLE OF PERSON SIGNING Exempt per:

ADDRESS

P.O. Box 2086, Rancho Cordova, CA 95741-2086

PROPOSED CONTRACTOR AGREEMENT #C

EXHIBIT A

SCOPE OF WORK

1. The purpose of contracting with a credit reporting entity is to assist the Franchise Tax Board (FTB) in the resolution of accounts requiring the verification of financial information, current address, and/or employer information. It will also be used as part of the pre-employment screening process by the Investigations Bureau.

2. This Agreement is authorized pursuant to California Revenue and Taxation Code §§ 19501, 19504, & 19377.

3. FTB users’ access to and use of debtors’ full credit reports shall be in accordance with established FTB policy based on the user’s “need to know” to complete their assigned duties. In instances where the credit report is requested for purposes of screening applicants for employment in the Investigations Bureau, such request shall be in accordance with established FTB hiring policies.

4. The services shall be performed at the Contractor’s site and accessed remotely by authorized FTB employees.

5. Contractor must provide FTB with the full credit report, with FICO score on individuals by automated requests. The product must be web-based and available twenty-four (24) hours a day. The response time must be online real time. FTB will provide a name and/or social security number to request the credit report. Contractor must provide the Department with timely and accurate credit report information upon demand. A sample report must be submitted when bid is due. See Attachment VIII – Mandatory Credit Report Requirement. The reports shall be in a user-friendly format and should contain the following minimum information:

Name

Complete Address

Social Security Number

Credit Summary

FICO Score

Employment Summary

Summary of Recorded Judgments and Liens

Subscriber Decode Information

AKA’s (Also Known As) and DBA’s (Doing Business As)

Prior or Other Addresses

6. Contractor shall provide full credit reports, with FICO score and all other information as outlined above, with data drawn from a national credit reporting database as an alternate resource for credit information.

7. The usage and billing information will be tied to each subscriber number and shall be sortable by field (i.e., user id, date, type of report, subscriber number, and account number). See Exhibit B, Budget Detail and Payment Provisions. Contractor will ensure that the costs charged to FTB for the credit reports will be the same for all states/regions.

8. Volumes may increase on an annual basis or per legislative mandate.

9. Installation and initial training must be completed no later than one (1) month after the Contract start date.

10. Installation, instructor-led training and training materials are to be provided to all FTB users at no additional cost. Training will be provided via tele-video conference or in person at the Sacramento FTB Central Office facility, at the start of the contract period. When there are any new product changes affecting how users navigate,read and interpret Credit Bureau Reports (CBR), training must be provided.

On-going training is to be provided upon request at no additional cost to the State.

EXHIBIT A

SCOPE OF WORK (continued)

11. Customer support shall be available by phone and email from at least 8:00 AM – 5:00 PM Pacific Standard Time (PST), Monday through Friday. Contractor’s website for the service shall also provide information helpful to the user, such as password help and reset options. Contractor will notify FTB immediately via phone or email of any downtime or maintenance that will affect performance between 8:00 AM and 5:00 PM PST, Monday through Friday. Normal maintenance shall be performed before 8:00 AM or after 5:00 PM PST, Monday through Friday.

12. Contractor shall provide services during Monday through Friday, 8:00 AM – 5:00 PM PST, except California State holidays) at a minimum.

13. Contractor must have a designated security contact available to be contacted in the event of a suspected data breach.

14. Contractor must utilize data encryption software of at least 128-bit and a Secure Socket Layer version 3 (SSL v3). Each assigned staff member must be issued a digital certificate that is tied to the user’s computer only and is valid for the length of the contract. FTB staff must be able to install the digital certificates. There will be no limit on the number of FTB users or digital certificates available to FTB.

Each user will be provided a unique user id and will be required to have a password.

15. Contractor must have the ability to provide, and shall provide on at least a quarterly basis, a list of the FTB users authorized to use the system. The list must include for each authorized user the FTB user name, system user ID, and status (active/ inactive).

16. Contractor must create and maintain an audit log and have the ability to provide the accesses or attempted accesses to data, provided by the Contractor to FTB. The Contractor must maintain the confidentiality and integrity of audit logs. The log must specify the following data: Vendor assigned unique user ID for each authorized user, date and time of each access, originating IP address, success or failure of the request, the name of the individual whose Credit Bureau Report was accessed and the last four (4) digits of their Social Security Number, and information necessary to identify any actions taken on those accounts.

17. Contractor must supply the security log data on all FTB employees’ activity every thirty (30) days and, upon request, to the FTB Information Security Audit Unit within five (5) working days of request.

18. FTB shall provide the name, phone number, FTB email address, Supervisor’s name, Payroll Unit Code (PUC), and Program Cost Account (PCA) of each FTB user who is authorized to request a CBR.

19. The project coordinators during the term of this Agreement will be:

Franchise Tax Board Contractor Name: Name:

Phone: (Number) Phone: (Number) Fax: (Number) Fax: (Number)

Direct all Agreement inquiries to:

Franchise Tax Board Contractor Business Acquisitions Unit Unit:

Attention: Courtney Adams Name:

P. O. Box 2086, Mailstop A374 Address:

Rancho Cordova, CA 95741-2086 City, State, ZIP:

Phone: (916) 845-4385 Phone: (Number):

Fax: (916) 843-0136 Fax: (Number):

EXHIBIT B

BUDGET DETAIL AND PAYMENT PROVISIONS

1. INVOICING AND PAYMENT: For services satisfactorily rendered, and upon receipt and approval of the invoices, the State agrees to compensate the Contractor for actual expenditures incurred in accordance with the rates below which are hereby made a part of this Agreement.

Cost per Credit Bureau Report $ __________

2. The billing period will be a calendar month, beginning on the first day of the month and ending on the last day of the month.

3. On a monthly basis, the Contractor will submit an itemized invoice with a unique invoice number for the billing period to FTB within five (5) calendar days of the end of the month via FTB’s Secure Web Internet

File Transfer (SWIFT) service.

In addition, invoices shall include the Agreement number and be submitted in duplicate not more frequently than monthly in arrears to:

Franchise Tax Board Fiscal Accounting P. O. Box 2800

Sacramento, CA 95812-2800

4. The itemized invoice will be prepared in a format specified by FTB to be provided to the Contractor. FTB reserves the right to change the format of the invoice. The invoice shall contain the following information:

Agreement Number

Payroll Unit Code (PUC)

Program Cost Account (PCA)

Supervisor Name

Name of the Authorized User Accessing the CBR

Unique User ID Assigned by Vendor for Each Authorized User

Names of Persons whose CBR was Accessed

Last 4 Digits of Social Security Number for each Account Accessed

Access Date(s)

Number of Accesses to a Particular Account Number

5. Before approving each monthly invoice for payment, FTB will review the monthly invoice to verify that:

a. Each access was made by an FTB employee appropriately under the Contract.

b. The cost invoiced for each access, the total number of accesses and the total cost for the month are correct.

6. Should a monthly invoice require adjustment prior to authorization of payment, FTB will correct the report or invoice and return it to the Contractor via SWIFT with an email explaining the discrepancy. The

Contractor will have five (5) business days after the notification to approve or dispute the changes. If no response is received, the corrected report or invoice will be considered final.

7. FTB will not be obligated to reimburse the Contractor for costs incurred in excess of the contracted amount.

EXHIBIT B

BUDGET DETAIL AND PAYMENT PROVISIONS (continued)

8. Contractor will be responsible for its own operating costs as associated with this Agreement. Operating costs include, but are not limited to, all costs incurred by Contractor in providing the service, such as direct labor and operating overhead, out-of-pocket expenses for travel and subsistence, subcontracting services, and all taxes, fees, bonds, and insurance.

In case of early termination, within thirty (30) days of termination of the Agreement, the Contractor will submit via SWIFT a final invoice for all reports received and not billed prior to termination..

9. BUDGET CONTINGENCY CLAUSE: It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish any other consideration under this Agreement, and Contractor shall not be obligated to perform any provisions of this Agreement.

If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either: cancel this Agreement with no liability occurring to the State, or offer an Agreement Amendment to the Contractor to reflect the reduced amount.

10. PROMPT PAYMENT CLAUSE: Payment will be made in accordance with and within the time specified in Government Code, Chapter 4.5 (commencing with Section 927).

EXHIBIT D

SPECIAL TERMS AND CONDITIONS

1. STATEMENT OF CONFIDENTIALITY: The Franchise Tax Board has State tax return information and other confidential data in its custody, which is confidential. Unauthorized inspection or disclosure of state returns or other confidential data is a misdemeanor (Revenue and Taxation Code Sections 19542,

19542.1 and 19542.3, and Government Code Section 90005).

Upon the approval of this Agreement and prior to any access to the confidential or sensitive data of FTB, the Contractor and each of its employees who may have access to the confidential or sensitive data shall be required to have on file annually a signed Confidentiality Statement (FTB Form 7904), attesting to the fact that it/he/she is aware of the confidential data and the penalties for unauthorized disclosure thereof under applicable state and federal law.

2. USE OF INFORMATION: The Contractor agrees that the information furnished or secured pursuant to this Agreement shall be used solely for the purposes described in the Scope of Work of Exhibit A. The Contractor further agrees that information obtained under this Agreement will not be reproduced, published, sold, or released in original or in any other form for any purpose other than identified in Exhibit A.

3. DATA OWNERSHIP: The confidential tax information or sensitive information being provided under this

Agreement remains the exclusive property of the FTB. Confidential tax and sensitive data/information are not open to the public and require special precautions to protect from loss and unauthorized use, disclosure, modification, or destruction. The Contractor shall have the right to use and process the disclosed information for the purposes stated in the Scope of Work, Exhibit A of this Agreement, which right shall be revoked and terminated immediately upon termination of this Agreement.

4. EMPLOYEE ACCESS TO INFORMATION: The Contractor agrees that the information obtained will be kept in the strictest confidence and shall make information available to its own employees only on a “need to know” basis. The “need to know” standard is met by authorized employees who need the information to perform their official duties in connection with the uses of the information authorized by this Agreement. Each party recognizes its responsibilities to protect the confidentiality of the information in its custody as provided by law and ensure that such information is disclosed only to those individuals and for such purposes as are authorized by law and this Agreement.

5. PROTECTING CONFIDENTIAL INFORMATION/ INCIDENT REPORTING: The Contractor, in recognizing the confidentiality of FTB information, agrees to take all appropriate precautions to protect the confidential information obtained pursuant to this Agreement from unauthorized disclosure. The Contractor will conduct oversight of its users with access to the confidential information provided under this Agreement and will immediately notify the FTB’s Information Security Audit Unit (SecurityAuditMail@ftb.ca.gov) of any unauthorized or suspected unauthorized accesses; uses and/or disclosures (incidents). For purposes of this section, immediately is defined as within 24 hours of the discovery of the breach. The notification must describe the incident in detail and identify responsible personnel (name, title, and contact information). The Contractor will provide to FTB the information necessary to comply with incident reporting requirements in provided in Civil Code Section 1798.29 and SAM Chapter 5300 and SAM Section 20080 to facilitate or fulfill the required reporting to the taxpayers or state oversight agencies.

mailto:SecurityAuditMail@ftb.ca.gov

SPECIAL TERMS AND CONDITIONS (continued)

6. INFORMATION SECURITY: Information security is defined as the preservation of the confidentiality, integrity, and availability of information. A secure environment is required to protect the confidential information obtained from FTB pursuant to this Agreement. The Contractor shall store the information so that it is physically secure from unauthorized access. The records received by the Contractor shall be securely maintained and accessible only by the employees of the Contractor who are committed to protect the data from unauthorized access, use, or disclosure. All FTB electronic data must be encrypted and when in transit use FIPS 140-2 approved encryption technology, and be password protected and secure at all times when in storage. Confidential information obtained from the FTB must be secured in accordance with the State Administrative Manual, Chapters 5100 and 5300 (Information Security);

National Institute of Standards and Technology (NIST) Special Publication 800-53 (moderate); and additional security requirements provided by FTB. If this Agreement calls for Federal Tax Information (FTI) to be provided by FTB, the Contractor must also comply with Internal Revenue Service Publication 1075. The FTB may require that a Security Questionnaire for the Contractor receiving confidential data from FTB be completed or on file with FTB’s Information Security Architecture and Oversight Section.

7. CLOUD COMPUTING ENVIRONMENT: A Cloud Computing Environment cannot be used to receive, transmit, store, or process FTB’s confidential data without prior approval from FTB’s Chief Security Officer.

8. DESTRUCTION OF RECORDS: All records received by the Contractor from FTB, and any database created, copies made, or files attributed to the records received, will be returned or destroyed upon completion of the business purpose for which they were obtained. The records shall be destroyed in a manner to be deemed unusable or unreadable, and to the extent that an individual record can no longer be reasonably ascertained.

9. SAFEGUARD REVIEW: The FTB retains the right to conduct on-site safeguard reviews of the

Contractor’s use of FTB information and security controls established. The safeguard reviews may include, but are not limited to, an examination of the adequacy of information security controls, “need to know”, and use justifications established by the Contractor to ensure compliance with the terms and conditions of this Agreement. The FTB will provide a minimum of seven (7) days’ notice of a safeguard review being conducted by FTB staff.

10. TAX COMPLIANCE: The Contractor must be in compliance with the Revenue and Taxation Code throughout the term of the Agreement. Failure to comply with this provision shall be deemed to be a breach of this Agreement and shall be grounds for cancellation of this Agreement.

11. EXCISE TAX: The State of California (the State) is exempt from Federal Excise Taxes, and no payment will be made by the State for any taxes levied on employees' wages. The State will pay for any applicable State of California or local sales or use taxes on the services rendered or equipment or parts supplied pursuant to this agreement. The State may pay any applicable sales or use tax imposed by another state.

12. DISPUTE RESOLUTION: In the event of a dispute, the Contractor shall file a “Notice of Dispute” with the Chief Financial Officer of the Franchise Tax Board within ten (10) days of discovery of the problem.

Within ten (10) days, the Chief Financial Officer, or his/her designee, shall meet with the Contractor’s designee for purposes of resolving the dispute. The decision of the Chief Financial Officer shall be final.

13. FTB LIABILITY: The Contractor warrants by execution of this Agreement, that no person or selling agency has been employed or retained to solicit or secure this Agreement upon agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty, the FTB will, in addition to other remedies provided by law, have the right to annul this Agreement without liability, paying only for the value of the work actually performed, or otherwise recover the full amount of such commission, percentage, brokerage, or contingent fee.

14. POTENTIAL SUBCONTRACTORS: Nothing contained in this Agreement or otherwise shall create any contractual relation between the FTB and any subcontractors, and no subcontract shall relieve the Contractor of its responsibilities and obligations hereunder. The Contractor agrees to be as fully responsible to the FTB for the acts and omissions of its subcontractors and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the Contractor. The Contractor's obligation to pay its subcontractors is an independent obligation from the State’s obligation to make payments to the Contractor. As a result, the FTB shall have no obligation to pay or to verify the payment of any monies to any subcontractor.

15. BACKGROUND CHECK, FINGERPRINTING AND TAX COMPLIANCE OF CONTRACTOR

PERSONNEL: The Franchise Tax Board (FTB) will investigate the personal history of all Contractor personnel who will have access to FTB’s facilities, data systems or confidential materials during the term of the contract. FTB will require such Contractors, subcontractors, independent contractors, and their employees to complete a Personal History Statement and be fingerprinted. Fingerprints will be sent to the California Department of Justice for information regarding prior criminal history. Based upon the results, FTB reserves the right to prohibit individuals from performing work under this Contract.

As part of the background check, FTB may require tax identification information to validate compliance with the California Revenue and Taxation Code throughout the term of the contract. Compliance with the Revenue and Taxation Code means an individual has filed all required State income tax returns and all State income taxes are paid or a current payment installment agreement is in place.

Prospective contract staff are encouraged to verify their individual filing status by calling 1-800-852- 5711 to resolve any potential tax compliance issues.

If a member of the Contractor’s staff or subcontractor staff (including replacements) is ineligible to work for FTB, the Contractor will be notified. If the Contractor is unable to provide an eligible replacement, per the terms of this Contract, it may be deemed a breach of this contract and may be grounds for termination of this Contract.

16. SOFTWARE: The Contractor certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Agreement for the acquisition, operation, or maintenance of computer software in violation of copyright laws.

19. DISCLOSURE OF CONFIDENTIAL INFORMATION: Any unwarranted disclosure or use of State tax return information or any willful unauthorized inspection of the return information is an act punishable as a misdemeanor. Inspection is defined to mean any examination of confidential information. No one other than Contractor’s authorized employees shall have access to, use,view or manipulate the data being transmitted to the Contractor under this Agreement. The Contractor, in recognizing the confidentiality of State tax return information, agrees to take all appropriate precautions to protect the confidential information obtained pursuant to this Agreement from unauthorized disclosure. The Contractor shall conduct oversight of its users with access to the confidential information provided under this Agreement, and shall notify FTB within 24 hours of any suspected violations of security or confidentiality by its users.

The Contractor and its employees agree to, and hereby shall be, liable under State and Federal statutes for unauthorized disclosures by the Contractor or its employees.

20. IRS INFORMATION: No confidential Federal tax return information will be provided to the Contractor.

This Agreement does not provide for the exchange of confidential federal tax return information obtained from the…