220000000133.pdf

320 S Walnut Street Lansing, MI 48933 P.O. Box 30026, Lansing, MI 48909

STATE OF MICHIGAN PROCUREMENT

Department Technology, Management and Budget Central Procurement Services

CONTRACT CHANGE NOTICE

CONTRACT SUMMARY

SW Financial Auditing and Accounting Prequal Program

INITIAL EFFECTIVE DATE INITIAL EXPIRATION DATE INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

November 1, 2021 October 31, 2024 3 - 1 Year October 31, 2027

PAYMENT TERMS DELIVERY TIMEFRAME

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

MINIMUM DELIVERY REQUIREMENTS

N/A

P-Card Direct Voucher (PRC) Other Yes No

1500 W. Big Beaver Rd., 2nd Floor

Troy MI 48084

Nathan C. Baldermann

517-841-4235

Nathan.baldermann@rehmann.com

CV0045122

THE REHMANN GROUP

C O

N

TR

A C

TO

R

Colleen West

517-730-8430

DTMB

Various Various westc6@michigan.gov

C on tr ac t A dm in is tr at or

Pr og ra m

M an ag er

ST

A

TE

N/ANet 45

Change Notice Number 5

Contract Number MA220000000133 to

DESCRIPTION OF CHANGE NOTICE

OPTION EXTENSIONLENGTH OF OPTION LENGTH OF EXTENSION REVISED EXP. DATE

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

0 Years

$1,166,360.00 $0.00 $1,166,360.00

DESCRIPTION

Please note the Program Manager or Contract Administrator may have changed, and are reflected on this Change Notice.

Effective November 20, 2025, this Contract is amended to reflect updated accessibility requirements. All prior references to ADA, Accessibility, and/or WCAG 2.0 are replaced and superseded with the following language:

Accessibility Requirements:

The State is required to comply with the Americans with Disabilities Act of 1990 (ADA) and has adopted standards and procedures regarding accessibility requirements for websites, applications, content, and electronic documents. Due to a change in the law, the State is required to comply with specific accessibility standards for websites, applications, content and documents.

Starting 4/24/2026, throughout the Term, all websites, applications, software, content, and electronic documents, including but not limited to mobile applications, text, images, sounds, videos, controls, animations, links, and documents (including files in the following formats: PDF, word processing, presentation, and spreadsheet), created, provided, or made available by the Contractor under this Contract, must comply with WCAG 2.1 Level AA.

All other terms, conditions, specifications and pricing remain the same. Per contractor and agency agreement, and DTMB Central Procurement approval.

AGENCY NAME PHONE EMAIL

TREA Jeff Guilfoyle 517-335-7505 guilfoylej@michigan.gov

DTMB Jordan Sherlock 517-897-1973 SherlockJ@michigan.gov

LARA Rebecca Mack MackR2@michigan.gov

DTMB Diana McFadden 517-241-9104 McFaddenD@michigan.gov

LEO Eric Frederick 517-230-8510 FrederickE1@michigan.gov

MDE Jenny Manar 517-335-0543 ManarJ@michigan.gov

DTMB Susan Watt-Smith 517-230-0535 WattSmithS@michigan.gov

Program Managers for

Multi-Agency and Statewide Contracts

CHANGE NOTICE NO. 5 TO CONTRACT NO. MA220000000133

STATE OF MICHIGAN

ENTERPRISE PROCUREMENT

Department of Technology, Management, and Budget 320 S. Walnut Street 2nd Floor Lansing, MI 48933

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

CONTRACT SUMMARY

SW Financial Auditing and Accounting Prequal Program

INITIAL EFFECTIVE DATE INITIAL EXPIRATION DATE INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

November 1, 2021 October 31, 2024 3 - 12 Months October 31, 2024

PAYMENT TERMS DELIVERY TIMEFRAME

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

MINIMUM DELIVERY REQUIREMENTS

N/A

P-Card Direct Voucher (PRC) Other Yes No

1500 W. Big Beaver Rd., 2nd Floor

Troy MI 48084

Nathan C. Baldermann

517-841-4235

Nathan.baldermann@rehmann.com

CV0045122

THE REHMANN GROUP

C O

N

TR

A C

TO

R

517-335-7505 guilfoylej@michigan.gov

Susan Watt-Smith

517-230-0535

DTMB

Jeff Guilfoyle TREA wattsmiths@michigan.gov

C ontract

A dm inistrator Program M anagerSTA

TE

N/ANet 45

Change Notice Number 4

Contract Number MA220000000133 to

DESCRIPTION OF CHANGE NOTICE

OPTION EXTENSIONLENGTH OF OPTION LENGTH OF EXTENSION REVISED EXP. DATE

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

36 Months October 31, 2027

$440,360.00 $726,000.00 $1,166,360.00

DESCRIPTION

Effective September 11, 2024, the attached Schedule A - Statement of Work (SOW), Schedule B - Pricing, and associated $726,000.00 are added to the Contract for use by DTMB Financial Services.

Zach Kolodin, 517-242-0449, kolodinz@michigan.gov, is the Project Manager associated with this SOW.

Additionally, the 3, 1-year options available on this contract are hereby exercised. The revised contract expiration date is October 31, 2027.

All other terms, conditions, specifications, and pricing remain the same. Per contractor and agency agreement, DTMB Central Procurement approval, and State Administrative Board approval on September 10, 2024.

Michigan.gov/MiProcurement

Version 2021-2 Page 1 of 13

SCHEDULE A - STATEMENT OF WORK

CONTRACT ACTIVITIES

SCOPE

The Michigan Infrastructure Office (MIO) is utilizing consulting services to leverage federal tax credits for renewable energy and energy efficiency projects across the enterprise and within State-owned facilities. The contracted services must be in accordance with provisions of the Inflation Reduction Act of 2022 (IRA) Section 1647 along with other applicable energy tax credits. These services will also be made available to clients of the MIO Technical Assistance Center, such as local governments.

Section 1647 Elective pay allows applicable entities, including tax-exempt and governmental entities that would otherwise be unable to claim certain credits because they do not owe federal income tax, to benefit from clean energy tax credits. The goal of the services outlined in this Statement of Work is to assist the State of Michigan in complying with all federal and State regulations relating to clean energy projects and corresponding tax credits. This work will be completed under the direction of, and as requested by, the Michigan Infrastructure Office (MIO).

Anticipated Term of the Statement Of Work (SOW).

The term of this SOW is anticipated to be from September 16, 2024, to October 30, 2026.

1. Requirements

1.1. General Requirements

A. Requirement 1: Consulting services in interpreting federal regulations, including guidance on specific investments, and developing legally operative language for use in solicitation documents and contract forms.

Contractor will provide comprehensive consulting services related to tax credits for renewable energy projects, particularly under the Inflation Reduction Act of 2022 (IRA). Contractor is equipped to handle engagements of all sizes and scales, supported by a robust infrastructure designed to support diverse project initiatives, especially within state-owned facilities.

B. Requirement 2: Preparation of documentation necessary to properly substantiate applicable tax credit, including bonus eligibility and validation of specific project costs eligible for claim.

Contractor will manage the preparation and substantiation of documentation necessary to claim federal tax credits, including determining bonus eligibility and validating project costs. Contractor’s methodology memorandum explains the rationale behind the tax credit claims and any additional bonus eligibility, such as the domestic content bonus, energy communities, and/or low-income community bonus.

Version 2021-2 Page 2 of 13

Contractor must ensure that every aspect of documentation is meticulously prepared, reviewed, and validated to maximize the benefits available under federal programs such as the IRA. Contractor will conduct a comprehensive review of all relevant project documentation, financial records, and contracts to accurately identify and validate the specific costs eligible for tax credits. This process involves close collaboration with the State to gather all necessary information, ensuring that each expense is documented in strict compliance with federal requirements.

Contractor must validate bonus eligibility for specific projects to ensure that all potential bonus credits are identified and claimed accurately. Contractor’s prepared documentation is designed to withstand federal audit scrutiny, with comprehensive supporting materials that include detailed cost allocation reports, contracts, invoices, and receipts, all of which substantiate each claimed credit. Contractor’s methodology memorandum explains the rationale behind the tax credit claims and bonus eligibility, providing a transparent and cohesive narrative that reinforces the credibility of the State’s submissions. By implementing rigorous internal review procedures and guiding clients through the pre-filing registration process, Contractor ensures that all documentation is accurate, compliant, and ready for any audit defense, positioning the State, to fully leverage the tax credits available for renewable energy projects.

C. Requirement 3: Complete reports set by IRA Elective Pay Guidelines.

Reporting must be compatible with State of Michigan Microsoft Office Suite tools.

Contractor will fulfill the reporting obligations mandated by the IRA Elective Pay Guidelines, ensuring that all reports are both comprehensive and accurate while integrating with the State of Michigan’s Microsoft Office Suite tools. Contractor will focus on understanding the specific reporting requirements imposed on the State of Michigan and will ensure that reports not only meet the formal requirements of the Elective Pay provision but also provide clear, actionable insights for our clients.

All deliverables must be formatted in Microsoft Word, Excel, and/or PowerPoint files, allowing for effortless internal review, modification, and distribution. Contractor’s reporting process must capture all necessary data related to tax credit validation, project costs, and bonus eligibility under the IRA. The reports must include detailed breakdowns of project expenses, eligibility assessments, and supporting documentation, providing the MIO with user-friendly, compliant, and functional reports that effectively support their objectives in maximizing federal tax credits for renewable energy.

D. Requirement 4: 3 years of audit defense - Provide support in responding to inquiries, providing relevant documentation, and navigating the audit process effectively. It may include representation, documentation review, strategic advice and any necessary negotiations to resolve audit issues. The support aims to ensure compliance with applicable laws, regulations, or contractual obligations.

Contractor must provide comprehensive support throughout the audit process, ensuring that the State is thoroughly prepared to respond to inquiries, provide

Version 2021-2 Page 3 of 13 necessary documentation, and navigate audits with confidence. Contractor must proactively document all critical information upfront, creating IRS-ready deliverables specifically designed to address initial audit inquiries. Contractor’s structured approach includes not only detailed documentation review but also representation, strategic advice, and negotiation assistance, all aimed at ensuring compliance with relevant laws and regulations.

When responding to audit inquiries, Contractor must deliver targeted support to address specific questions or concerns raised by auditors, ensuring that all responses are timely, accurate, and well-documented. This involves preparing detailed explanations that justify tax credit claims, clarify the methodologies used in calculating eligible costs, and demonstrate full compliance with applicable regulations. In cases where audit issues require resolution, Contractor will assist with negotiations, advocating for the acceptance of legitimate claims and working to protect the State’s interests, ensuring that the audit process concludes favorably, with minimal disruption to the State’s operations, by providing the expertise and support necessary to achieve the best possible outcomes.

E. Requirement 5: 990T completion and filing. For 2024, this will occur no later than November 15, 2024.

Contractor must ensure the accurate and timely completion and filing of the 990-T forms by the applicable filing deadlines with precision and efficiency.

To meet any applicable deadlines, Contractor will implement a strategic timeline aligned with the financial reporting schedule of the owners of the energy property, ensuring that all necessary information is collected and reviewed well in advance.

Contractor’s proactive approach includes early data collection, regular communication with relevant departments, and multiple reviews of the 990-T to minimize errors and prevent delays. Leveraging advanced tax software, Contractor will ensure that all data is accurately captured and reported. Upon completion, a final review will be conducted to confirm the accuracy of the 990-T form, and Contractor will handle the electronic filing with the IRS, providing state-owned facilities with confirmation and necessary documentation.

F. Requirement 6: Provide IRA Elective pay support services/requirements to Michigan Technical Assistance Center clients, such as local governments.

This may include consulting to assist with interpreting federal regulations and developing legally operative language for use in solicitation documents and contract forms, bonus credit preparation, IRS pre-registration, 990T and related tax forms completion and filing, assistance with reports and more.

Contractor will deliver comprehensive support services under the IRA Elective Pay program to clients of the Michigan TAC, including local governments. Contractor must ensure that these entities comply with all federal requirements while maximizing the available tax credits under the IRA.

Version 2021-2 Page 4 of 13

Contractor will help local governments understand and apply the federal regulations related to IRA Elective Pay and associated tax credits. Contractor will translate these regulations into actionable guidance, advising on eligible projects, opportunities for bonus credits, and ensuring compliance with federal standards. Contractor will manage the preparation and submission of bonus credit applications, performs IRS pre-registration for participation in the elective pay program, and handles tax compliance tasks, including the preparation and filing of 990-T forms.

1.2. Specific Standards

Acceptable Use Policy To the extent that Contractor has access to the State’s computer system, Contractor must comply with the State’s Acceptable Use Policy, see http://michigan.gov/dtmb/0,4568,7-150-56355_56579_56755---,00.html. All Contractor Personnel will be required, in writing, to agree to the State’s Acceptable Use Policy before accessing the State’s system. The State reserves the right to terminate Contractor’s access to the State’s system if a violation occurs.

Mobile Responsiveness The Contractor’s Solution must utilize responsive design practices to ensure the application is accessible via a mobile device.

The use of mobile devices will be dependent on each specific project. Contractor will request all information electronically and provide deliverables in Microsoft Office or PDF format.

ADA Compliance The State is required to comply with the Americans with Disabilities Act of 1990 (ADA) and has adopted a formal policy regarding accessibility requirements for websites and software applications. The State is requiring that Contractor’s proposed Solution, where relevant, to level AA of the World Wide Web Consortium (W3C) Web Content Accessibility Guidelines (WCAG) 2.0. Contractor may consider, where relevant, the W3C’s Guidance on Applying WCAG 2.0 to Non-Web Information and Communications Technologies (WCAG2ICT) for non-web software and content. The State may require that Contractor complete a Voluntary Product Accessibility Template for WCAG 2.0 (WCAG 2.0 VPAT) or other comparable document for the proposed Solution.

http://www.michigan.gov/documents/dmb/1650.00_209567_7.pdf?20151026134621

1.3. Access Control and Audit

The Contractor’s solution must integrate with the State’s IT Identity and Access Management (IAM) environment as described in the State of Michigan Digital Strategy (https://www.michigan.gov/dtmb/0,5552,7-358-82547_56345_56351_69611-336646-- ,00.html), which consist of:

A. MILogin/Michigan Identity, Credential, and Access Management (MICAM)

i. An enterprise single sign-on and identity management solution based on

IBM’s Identity and Access Management products including, IBM Security Identity Manager (ISIM), IBM Security Access Manager for Web (ISAM), IBM http://www.michigan.gov/documents/dmb/1650.00_209567_7.pdf?20151026134621 https://www.michigan.gov/dtmb/0,5552,7-358-82547_56345_56351_69611-336646--,00.html https://www.michigan.gov/dtmb/0,5552,7-358-82547_56345_56351_69611-336646--,00.html

Version 2021-2 Page 5 of 13

Tivoli Federated Identity Manager (TFIM), IBM Security Access Manager for Mobile (ISAMM), and IBM DataPower, which enables the State to establish, manage, and authenticate user identities for the State’s Information Technology (IT) systems.

B. MILogin Identity Federation

i. Allows federated single sign-on (SSO) for business partners, as well as citizen-based applications.

C. MILogin Multi Factor Authentication (MFA, based on system data classification requirements)

i. Required for those applications where data classification is Confidential and

Restricted as defined by the 1340.00 Michigan Information Technology Information Security standard (i.e., the proposed solution must comply with PHI, PCI, CJIS, IRS, and other standards).

D. MILogin Identity Proofing Services (based on system data classification requirements)

i. A system that verifies individual’s identities before the State allows access to its IT system. This service is based on “life history” or transaction information aggregated from public and proprietary data sources. A leading credit bureau provides this service.

To integrate with the SOM MILogin solution, the Contractor’s solution must support SAML, or OAuth or OpenID interfaces for the SSO purposes.

1.4. Software

N/A

1.5. Migration

N/A

1.6. Hosting

Contractor must maintain and operate a backup and disaster recovery plan to achieve a Recovery Point Objective (RPO) of 24 hours, and a Recovery Time Objective (RTO) of 24 hours.

1.7. Products and Services

In managing its obligation to meet the above milestones and deliverables, the Contractor must utilize the applicable State Unified Information Technology Environment (SUITE) methodologies, or an equivalent methodology proposed by the Bidder.

SUITE’s primary goal is the delivery of on-time, on-budget, quality systems that meet customer expectations. SUITE is based on industry best practices, including those identified in the Project Management Institute’s PMBoK and the Capability Maturity Model Integration for Development. It was designed and implemented to standardize methodologies, processes, procedures, training, and tools for project management and systems development lifecycle management. It offers guidance for efficient, effective improvement across multiple process disciplines in the organization, improvements to best practices incorporated from earlier models, and a common, integrated vision of improvement for all project and system related elements.

http://www.michigan.gov/suite http://www.michigan.gov/suite

Version 2021-2 Page 6 of 13

While applying the SUITE framework through its methodologies is required, SUITE was not designed to add layers of complexity to project execution. There must be no additional costs from the Contractor, since it is expected that they are already following industry best practices which are at least similar to those that form SUITE’s foundation.

SUITE’s companion templates are used to document project progress or deliverables. In some cases, Contractors may have in place their own set of templates for similar use.

Because SUITE can be tailored to fit specific projects, project teams and State Program Managers may decide to use the Contractor’s provided templates, as long as they demonstrate fulfillment of the SUITE methodologies.

1.8. Secure Web Application Standard

Contractor’s solution must meet the State’s Secure Application Development Standards as mandated by the State.

Secure Application Development Life Cycle (SADLC) Contractor must meet the States Secure Application Development Life Cycle requirements that include:

A. Security Accreditation Contractor must complete the State Security Accreditation process for the solution.

B. Application Scanning

i. On-Premise solutions

The State may scan the application using its application scanning tools.

Contractor will need to provide the resources, at its sole expense, to complete any analysis remediation and validation required by the results of the scan.

ii. Externally hosted solutions Contractor must grant the right to the State to scan either the application code or a deployed version of the solution; or in lieu of the State performing a scan, Contractor will provide the State a vulnerabilities assessment after Contractor has used a State approved application scanning tool. These scans must be completed and provided to the State on a regular basis or at least for each major release.

For COTS or vendor owned applications, Contractor, at its sole expense, must provide resources to complete the scanning and to complete the analysis, remediation and validation of vulnerabilities identified by the scan as required by the State Secure Web Application Standards.

Types of scanning and remediation may include the following types of scans and activities.

• Dynamic Scanning for vulnerabilities, analysis, remediation, and validation

• Static Scanning for vulnerabilities, analysis, remediation and validation

• Third Party and/or Open-Source Scanning for vulnerabilities, analysis, remediation and validation

Version 2021-2 Page 7 of 13

C. Infrastructure Scanning

i. On-Premise solutions

The State may scan the application using its infrastructure scanning tools and remediate infrastructure vulnerabilities internally.

ii. Externally hosted solutions A Contractor providing Hosted Services must scan the infrastructure at least once every 30 days and provide the scan’s assessment to the State in a format that can be uploaded by the State and used to track the remediation.

2. Service Requirements

2.1. Timeframes

All Contract Activities must be delivered as agreed to between the successful bidder and the state at contract initiation. The receipt of order date is pursuant to the Notices section of the Standard Contract Terms.

2.2. Delivery

See 2.1. (above).

3. Acceptance

3.1. Acceptance, Inspection, and Testing

The State will use the following criteria to determine acceptance of the Contract Activities:

The Contractor must provide necessary services to ensure that the State has the needed tools to accurately gather and track required reporting criteria set by IRA Elective Pay Guidelines. Applicant or applying firm has provided documented experience working with entities on IRA Direct Pay related credits, IRS 179D, Energy Investment & Production Credits, and/or related government programs.

Along with the general project support listed above the State of Michigan also requires that all necessary forms and filing be completed by the Contractor, accurately and on or before established due date.

The state of Michigan reserves the right to contract with multiple respondents if necessary.

4. Staffing

4.1. Contractor Representative

The Contractor must appoint 1 individual specifically assigned to State of Michigan accounts, who will respond to State inquiries regarding the Contract Activities, answer questions related to ordering and delivery, etc. (the “Contractor Representative”).

The Contractor must notify the Contract Administrator at least 14 calendar days before removing or assigning a new Contractor Representative.

4.2. Program Manager

The Program Manager for each party related to this SOW will monitor and coordinate the day-to-day activities of the Contract (each a “Program Manager”):

Version 2021-2 Page 8 of 13

State: Contractor:

Zachary Kolodin 111 S. Capitol Avenue Lansing, MI 48909 kolodinz@michigan.gov 517-242-0449

Anthony J. Licavoli Jr. CPA 1500 W Big Beaver Rd, 2nd Floor Troy, MI 48084 anthony.licavoli@rehmann.com 248.463.4598

4.3. Customer Service Toll-Free Number

See Master Contract 220000000133 Schedule A – SOW, Section 4.2 for details.

4.4. Work Hours

See Master Contract 220000000133 Schedule A – SOW, Section 4.3 for details.

4.5. Key Personnel

The Contractor must appoint at least 1 individual who will be directly responsible for the day-to-day operations of the Contract (“Key Personnel”). Key Personnel must be specifically assigned to the State account, be knowledgeable on the contractual requirements, and respond to State inquiries within 24 hours.

See Master Contract 220000000133 Schedule A – SOW, Section 4.4 for more details.

A. The Contractor must identify all Key Personnel that will be assigned to this contract in the table below which includes the following:

1. Name and title of staff that will be designated as Key Personnel.

2. Key Personnel years of experience in the current classification.

3. Identify which of the required key personnel positions they are fulfilling.

4. Key Personnel’s roles and responsibilities, as they relate to this RFP, if the

Contractor is successful in being awarded the Contract. Descriptions of roles should be functional and not just by title.

5. Identify if each Key Personnel is a direct, subcontract, or contract employee.

6. Identify if each Key Personnel staff member is employed full-time (FT), part-time

(PT) or temporary (T), including consultants used for the purpose of providing information for the proposal.

7. List each Key Personnel staff member’s length of employment or affiliation with the Contractor’s organization.

8. Identify each Key Personnel’s percentage of work time devoted to this Contract.

9. Identify where each Key Personnel staff member will be physically located (city and state) during the Contract performance.

<Add more rows below as needed> mailto:kolodinz@michigan.gov mailto:anthony.licavoli@rehmann.com

Version 2021-2 Page 9 of 13

1.

Name

2.

Years of

Experience in Current

Classification

3.

Role(s) /

Responsibilities

4.

Direct /

Subcontract/ Contract

5.

% of Work Time

6.

Physical Location

Nathan Baldermann 14 Partner, Overall

Program Manager Direct | FT 5% Jackson, MI

Anthony J.

Licavoli Jr. 4 Partner, Program

Manager Direct | FT 20% Troy, MI

Paul Mene, JD 2

Senior Manager, Lead Energy Credit Advisor

Direct | FT 35% Orlando, FL

Grace Koskinen 2 Manager, Energy

Credit Advisor Direct | FT 35% Troy, MI

Benjamin Brewer 2

Senior Manager, Subject Matter Expert

Direct | FT 2.5% Lansing, MI

Rachel Frisch 2

Senior Manager, Subject Matter Expert

Direct | FT 2.5% Muskegon, MI

B. The Contractor must provide detailed, chronological resumes of all proposed Key Personnel, including a description of their work experience relevant to their purposed role as it relates to the Statement of Work.

Qualifications will be measured by education and experience with particular reference to experience on projects similar to that described in the RFP.

4.6. Organizational Chart

4.7. Disclosure of Subcontractors

If the Contractor intends to utilize subcontractors, the Contractor must disclose the following:

Version 2021-2 Page 10 of 13

• The legal business name; address; telephone number; a description of subcontractor’s organization and the services it will provide; and information concerning subcontractor’s ability to provide the Contract Activities.

• The relationship of the subcontractor to the Contractor.

• Whether the Contractor has a previous working experience with the subcontractor. If yes, provide the details of that previous relationship.

• A complete description of the Contract Activities that will be performed or provided by the subcontractor.

4.8. Access to Tax Information

The Contractor must comply with the requirements of IRS Publication 1075 (including Exhibit 7 Safeguarding Contract Language) and Michigan Department of Treasury Safeguard Requirements of Confidential Tax Data.

5. Project Management

5.1. Project Plan

Bidder must provide detailed information as requested in the above requirement(s).

The legal business name, address, telephone number of the subcontractor(s).

McGuire Sponsel 201 N. Illinois Street, Suite 1000 Indianapolis, IN 46204 T: (317) 564-5000

A description of subcontractor’s organization and the services it will provide and information concerning subcontractor’s ability to provide the Contract Activities.

McGuire Sponsel offers specialty tax services in various areas related to the IRA. They will be utilized as needed based on the specifics of each project.

The relationship of the subcontractor to the Bidder.

Strategic partnership

Whether the Bidder has a previous working experience with the subcontractor.

If yes, provide the details of that previous relationship.

Rehmann and McGuire Sponsel formed a strategic partnership in 2019 to work together on various specialty tax consulting opportunities.

A complete description of the Contract Activities that will be performed or provided by the subcontractor.

McGuire Sponsel would be utilized in specific IRA areas, particularly where the use of engineers is required such as a 179D energy efficiency study.

Of the total bid, the price of the subcontractor’s work.

See price schedule for hourly rates.

Version 2021-2 Page 11 of 13

The Contractor must carry out this project under the direction and control of the Program Manager. Within 14 business days of the Effective Date, the Contractor must submit a final project plan to the Program Manager for approval. The plan must identify items such as the required personnel; project management process; project breakdown identifying sub-projects, tasks, and resources required; expected frequency and mechanisms for updates/progress reviews; process for addressing issues/changes; and individuals responsible for receiving/reacting to the requested information, and the Contractor's organizational chart with names and title of personnel assigned to the project, which must align with the staffing stated as outlined in the Contract. Necessary substitutions due to change of employment status and other unforeseen circumstances may only be made with prior approval of the State. The Contractor will carry out this project under the direction and control of the Program Manager. Within 30 calendar days of the Effective Date, the Contractor must submit a final project plan to the Program Manager for approval. The plan must include: (a) the Contractor's organizational chart with names and title of personnel assigned to the project, which must align with the staffing stated in accepted proposals; and (b) the project breakdown showing sub-projects, tasks, timeline, and resources required.

5.2. Meetings

The Contractor must attend the following meetings:

• Kick-off meeting within 10 business days of contract award

• Project selection criteria finalization meeting within 30 business days of award

The State may request other meetings, as it deems appropriate.

5.3. Reporting

The Contractor must accurately gather and track required reporting criteria set by IRA Elective Pay Guidelines and prepare a comprehensive report for each project to ensure compliance with all IRA credit requirements.

Contractor must have documented experience working with entities on IRA Direct Pay related credits, IRS 179D, Energy Investment & Production Credits, and/or related government programs. Contractor must be able to utilize data collection, business intelligence and reporting tools to gather all criteria set by IRA Elective Pay Guidelines including but not limited to geographic, workforce, and pay requirements for use by State contracted Construction firms to accurately report their projects details. There will be no new software, apps or electronic tools as a result of this Statement of Work.

6. Pricing

6.1. Price Term

Pricing is firm for the entire length of the engagement related to this SOW. Contractor pricing must not exceed rates provided in Schedule B - Pricing of the Master Contract 220000000133.

7. Ordering

7.1. Authorizing Document

See master contract Schedule A - SOW section 7.1 for details.

8. Invoice and Payment

Version 2021-2 Page 12 of 13

8.1. Invoice Requirements

See master contract Schedule A - SOW section 8.1 for details.

8.2. Payment Methods

See master contract Schedule A - SOW section 8.2 for details.

8.3. Procedure

Invoices are to be emailed to DTMB-Accounts-Payable DTMB-Accounts- Payable@michigan.gov and must include a State of Michigan official order number (i.e., DO or PO number) so verification and payment can be completed timely.

9. Liquidated Damages See Master Contract 220000000133 Schedule A – SOW, Section 9. for details.

10. Service-Level Agreement (SLA) Service Level Agreements for this Contract will be as follows:

A. If Contractor is assigned an application support task with a deadline, the Contractor must complete the application before the deadline.

B. The Contractor must respond to State and Partner (Tribal/Comm Orgs) inquiries within 24 hours.

The Contractor will be held accountable to meet the requirements and the Service Level Requirements (SLAs) established in the Statement of Work.

The State reserves the right to reconsider or amend these SLAs.

mailto:DTMB-Accounts-Payable@michigan.gov mailto:DTMB-Accounts-Payable@michigan.gov

Version 2021-2 Page 13 of 13

SCHEDULE B - PRICING

State of Michigan IRA Tax Accounting Services

OPERATIONAL CONSULTING SERVICES:

STAFF / ROLE ANTICIPATED

HOURS

ORIGINAL

SCHEDULE B –

CONTRACT

HOURLY RATE

TOTAL

Principal 400* $490 $196,000* Senior Manager 600* $365 $219,000* Manager 600* $310 $186,000* Senior 500* $250 $125,000*

TOTAL $726,000*

*Hours will vary significantly based on the type and extent of the actual project over the two-year term. The above schedule assumes consistent project engagement throughout the term of the SOW.

CENTRAL PROCUREMENT SERVICES

Department of Technology, Management, and Budget

320 S. WALNUT ST., LANSING, MICHIGAN 48933

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

Change Notice Number 3 to

Contract Number 220000000133

Various

Susan Watt-Smith nathan.baldermann@rehmann.com

Nathan C. Baldermann

Troy, MI 48084

THE REHMANN GROUP

CV0045122

517-841-4235

1500 W. Big Beaver Rd., 2nd Floor

517-230-0535 S

T A

T E

P ro g ra m

M a n a g e r

C o n tra c t

A d m in is tra to r

C O

N T

R A

C T

O R

DTMB

wattsmiths@michigan.gov

$394,475.00

November 1, 2021 October 31, 2024

SW FINANCIAL AUDITING AND ACCOUNTING PREQUAL PROGRAM

October 31, 2024

INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

3 - 1 Year

PAYMENT TERMS DELIVERY TIMEFRAME

NET 45

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

☐ P-Card ☐ PRC ☐ Other ☒ Yes ☐ No

MINIMUM DELIVERY REQUIREMENTS

DESCRIPTION OF CHANGE NOTICE

OPTION LENGTH OF OPTION EXTENSION LENGTH OF EXTENSION REVISED EXP. DATE

☐ ☐ October 31, 2024

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

N/A

$45,885.00 $440,360.00

Effective June 1, 2023, the attached Schedule A - Statement of Work, Schedule B - Pricing, and associated $45,885.00 are added to this Contract for use by Treasury. Jeff Guilfoyle is the Treasury PM associated with this SOW.

All other terms, conditions, specifications and pricing remain the same. Per contractor and agency agreement, and DTMB Central Procurement approval.

INITIAL EXPIRATION DATEINITIAL EFFECTIVE DATE

N/A

DESCRIPTION

CONTRACT SUMMARY

SW

AGENCY NAME PHONE EMAIL

Multi-Agency and Statewide Contracts

Program Managers for

CHANGE NOTICE NO. 3 TO CONTRACT NO. 220000000133

Jeff Guilfoyle 517-335-7505 guilfoylej@michigan.govTREA

SCHEDULE A - STATEMENT OF WORK

CONTRACT ACTIVITIES

Tax Liabilities and Credit Carryforwards Consulting

CN 3 – Contract 220000000133

BACKGROUND

The Department of Treasury (Treasury) is seeking accounting services to assist in resolving an issue raised during year-end closing by the Office of the Auditor General (OAG). In the government fund financial statements, revenue is recorded using a modified accrual basis of accounting. Under this approach funds need to have been earned prior to the end of the fiscal year and must be available, which is defined as having been received within 60 days of the end of the fiscal year.

The OAG has raised concerns with the accounting treatment of credit carryforwards. If a taxpayer filing an annual return has overpaid their annual liability, they can choose to receive a refund, or they can elect a credit carryforward indicating that the amount is to be used as an estimated payment for the next tax year. Cumulative credit carryforward balances have been growing, and the OAG has stated that credit carryforward balances should be recognized as a liability (unearned revenue) on the governmental fund financial statements until earned. The OAG has requested that Treasury develop a methodology to estimate the potential liability relating to credit carryforwards and reduce governmental fund balances accordingly.

Treasury has disputed this determination arguing:

• Taxpayers electing a credit carryforward are requesting these payments be used as estimated payments for the next tax year, so credit carryforwards should be treated the same as estimated payments paid in cash which are recognized as revenue when received. In addition, estimated payments are effectively earned because funds from business activities throughout the year are based on those businesses’ underlying exchange activities have already occurred.

• While a taxpayer may have a claim for a refund when electing a credit carryforward, the state also has an effective claim for that first estimated payment.

• The amount of any credit carryforward that is unearned is effectively unmeasurable since taxpayers continue to make estimated payments after claiming. Annual returns are not filed until April or later, so the unearned amount of credit carryforwards at fiscal year-end is unknown before the Annual Comprehensive Financial Report is completed.

Treasury is seeking assistance with three primary goals:

• Ascertaining the opinions of experts on the appropriate accounting treatment of credit carryforwards.

• Documenting how states with similar corporate income taxes account for credit carryforwards in their fund level financial statements.

• Supporting the development of a methodology for accounting for credit carryforwards if a change in Treasury’s current approach is appropriate.

SCOPE

This project contains the following scope:

A. Provide financial accounting, integrity oversight monitoring or auditing services.

Services may include, but not be limited to, the following:

The Contractor will interview academic and professional experts and review Government Accounting Standards Board (GASB) guidance and published research to determine the appropriate accounting treatment of credit carryforwards under a modified accrual basis of accounting, including how any amounts to be included as an accounting entry should be measured. The Contractor will also document how other states treat credit carryforwards in their governmental funds.

The results of this research will be documented in a short report. Finally, if a change to Treasury’s current approach is warranted, the selected firm will assist in developing a methodology to account for credit carryforwards that is consistent with the findings of the research.

1. Requirements

1.1. General Requirements

A. The Contractor must interview a minimum 4 experts in governmental accounting on the proper treatment of credit carryforwards under a modified accrual approach. The experts should consist of a mix of practicing and academic accountants.

B. The Contractor must research published guidance from the Government Accounting Standards Board (GASB), academic literature, and other published sources on the appropriate accounting treatment of credit carryforwards.

C. The Contractor must document the treatment of credit carryforwards by at least 8 other states. Selected states should have corporate income tax.

D. The Contractor must summarize the findings from requirements A through C in a short report. Include an analysis of whether the research points to a generally accepted approach or if there is a diversity of opinion in treatment.

E. The Contractor must assist Treasury in developing a methodology for estimating the portion of credit carryforwards that is unearned if the research findings indicate a need.

F. The Contractor must complete work for requirements A through D six weeks from the effective date of the Change Notice to the Contract.

2. Acceptance

2.1. Acceptance

The State will use the following criteria to determine acceptance of the Contract Activities: The Contractor will have completed all deliverable in Schedule A, Requirements Section 1.1, A through D within 6 weeks from the effective date of the Change Notice.

2.2. Final Acceptance

The State will use the following criteria to determine final acceptance of the Contract Activities: Completion of all tasks and deliverables in Schedule A and certified by the State Program Manager that the Contractor has met all the defined requirements of the Contract.

3. Staffing

3.1. Contractor Representative

The Contractor Representative who is specifically assigned to State of Michigan account, who will respond to State inquiries regarding the Contract Activities, answer questions related to ordering and delivery, etc. (the “Contractor Representative”) is:

Nathan C. Baldermann, CPA, CGFM 675 Robinson Road Jackson, MI 49203 517.841.4235 nathan.baldermann@rehmann.com

The Contractor must notify the Contract Administrator at least 5 calendar days before removing or assigning a new Contractor Representative.

3.2. Program Manager

The Program Manager for each party related to this SOW will monitor and coordinate the day-to-day activities of the Contract (each a “Program Manager”):

State: Contractor:

Jeff Guilfoyle 430 W. Allegan Street Lansing MI, 48922 guilfoylej@michigan.gov@michigan.gov

Nathan Baldermann 675 Robinson Road Jackson, MI 49203 Nathan.baldermann@rehmann.com 517-841-4235

3.3. Customer Service Toll-Free Number

See master contract Schedule A - SOW section 4.2 for details.

3.4. Work Hours

See master contract Schedule A - SOW section 4.3 for details.

3.5. Contractor Personnel

The Contractor personnel who have been identified to perform services under this Contract are in the following table:

1. NAME

2. YEARS OF

EXPERIENCE IN

CURRENT

CLASSIFICATION

3. ROLE(S) /

RESPONSIBILITIES

4. DIRECT /

SUBCONTRAC

T/ CONTRACT

5. % OF

WORK

TIME

6. PHYSICAL

LOCATION

Nathan Baldermann 13 Principal, Program Manager Direct 19% Jackson, MI

Paul Matz 7 Principal, Subject Matter Expert Direct 7% Muskegon, MI

Stephen Blann 17 Principal, Subject Matter Expert Direct 5% Grand Rapids, MI

Lisa Pohl 4 Principal, Subject Matter Expert Direct 2% Grand Rapids, MI

Benjamin Brewer 1 Senior Manager, Project Manager Direct 57% Lansing, MI

Jeff Bankowski 3 Partner, Advisor Subcontract 5% Ann Arbor, MI

Jeff Reese 1 Associate Director, Advisor Subcontract 5% Cincinnati, OH

3.6. Disclosure of Subcontractors

The following subcontractor, has been identified by the Contractor to perform work under this SOW:

SUBCONTRACTOR INFORMATION

The legal business name, address, telephone number of the subcontractor(s).

Guidehouse Inc.

2941 Fairview Park Drive, Suite 501 Falls Church, VA, 22042 734.644.0595

The relationship of the subcontractor to the Bidder.

Rehmann and Guidehouse have jointly proposed and worked together on many engagements.

A complete description of the Contract Activities that will be performed or provided by the subcontractor.

The subcontractor will primarily be providing assistance in recommending additional research publications and the coordination of communications with comparable states for the analysis. The subcontractor will also participate in meetings with the State of Michigan.

Of the total bid, the price of the subcontractor’s work.

Of the total bid price, $5,100 (est.) will be attributable to subcontractor’s work.

4. Project Management

4.1. Project Plan

The Contractor will carry out this project under the direction and control of the Program Manager. Within 2 calendar days of the Effective Date, the Contractor must submit a final project plan to the State Program Manager for approval. The plan must include: (a) the Contractor's organizational chart with names and title of personnel assigned to the project, which must align with the staffing stated in accepted proposals; and (b) the project breakdown showing sub-projects, tasks, timeline, and resources required.

4.2. Meetings

The Contractor must attend the following meetings:

A Kick-off meeting must be held within 3-business days of the Effective Date of the Change Notice.

The State may request other meetings, as it deems appropriate.

5. Pricing

5.1. Price Term

Pricing is firm for the entire length of the engagement related to this SOW. Contractor pricing must not exceed rates provided in Schedule B of the master contract.

6. Ordering

6.1. Authorizing Document

See master contract Schedule A - SOW section 7.1 for details.

7. Invoice and Payment

7.1. Invoice Requirements

See master contract Schedule A - SOW section 8.1 for details.

7.2. Payment Methods

See master contract Schedule A - SOW section 8.2 for details.

8. Liquidated Damages See master contract Schedule A - SOW section 9. for details.

SCHEDULE B PRICING

Tax Liabilities and Credit Carryforwards Consulting

1. Price proposal includes all costs, including but not limited to, any one-time or set-up charges, fees, and potential costs that Contractor may charge the State (e.g., shipping and handling, per piece pricing, and palletizing).

Deliverables Proposed Hours

Price Per Hour (Flat Fee) Total Price

Schedule A, Section 1.1, A – D

Principal / Partner 41.5 $490 $20,335

Senior Manager / Associate Director 65.0 $365 $25,550

Total Price: $45,885

Should Schedule A, Section 1.1, E be required, pricing will be time and material based off the Hourly Rates provided in Schedule B of the master contract. Proposed hours and staff involved in the completion of Schedule A, Section 1.1, E must be approved by the State Program Manager prior to commencement of work.

NOTES:

a. Overtime, holiday pay, and travel expenses will not be paid.

Department of Technology, Management, and Budget

525 W. ALLEGAN ST., LANSING, MICHIGAN 48913

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

Change Notice Number 2 to

220000000133Contract Number

Various

Marissa Gove nathan.baldermann@rehmann.com

Nathan C. Baldermann

Troy, MI 48084

THE REHMANN GROUP

CV0045122

517-841-4235

1500 W. Big Beaver Rd., 2nd Floor

(517) 449-8952 S

T A

T E

P ro g n a g e r

C o n tra ct

A d m in istra to r

C O

N T R A C T O

R

DTMB

govem1@michigan.gov

$174,875.00

November 1, 2021 October 31, 2024

SW FINANCIAL AUDITING AND ACCOUNTING PREQUAL PROGRAM

October 31, 2024

INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

3 - 1 Year

PAYMENT TERMS DELIVERY TIMEFRAME

NET 45

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

☐ P-Card ☐ PRC ☐ Other ☒ Yes ☐ No

MINIMUM DELIVERY REQUIREMENTS

DESCRIPTION OF CHANGE NOTICE

OPTION LENGTH OF OPTION EXTENSION LENGTH OF EXTENSION REVISED EXP. DATE

☐ ☐ N/A

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

N/A

$219,600.00 $394,475.00

Effective 3/1/2022, the attached Schedule A - Statement of Work is added to the Contract for use by LARA-MRA. This Contract is hereby increased by $219,600. In addition, Schedule B - Pricing is hereby added to the Contract for these activities per the attached.

All other terms, conditions, specifications, and pricing remain the same. Per contractor and agency agreement, DTMB Central Procurement approval, and State Administrative Board approval on 2/15/2022.

INITIAL EXPIRATION DATEINITIAL EFFECTIVE DATE

N/A

DESCRIPTION

CN 2 - SCHEDULE A

STATEMENT OF WORK

CONTRACT ACTIVITIES

BACKGROUND

The Marijuana Regulatory Agency (MRA) is responsible for the licensing and regulation of medical marijuana facilities under the Michigan Medical Marihuana Facilities Act (MMFLA) and adult-use marijuana establishments under the Michigan Regulation and Taxation of Marihuana Act (MRTMA). These laws establish a regulatory framework for provisioning centers/retailers, growers, processors, secure transporters, safety compliance facilities, and other commercial operations. They also create a statewide monitoring system for the tracking, inventory and verification of marijuana and allows for the manufacture and use of marijuana-infused products.

The medical regulatory framework has been in place since December 2017 and the adult-use regulatory framework since November 2019. Applicants for licensure are subject to a thorough background investigation by the State inclusive of all persons holding a direct/indirect of more than 10%, officers, boards of directors and other individuals exercising managerial control to determine eligibility and evaluate applicants’ integrity, moral character, reputation, personal and business probity, financial ability and experience, and responsibility or means to operate or maintain a marijuana business.

SCOPE

This is a request for background check services for all applicants and licensees under the MMFLA and MRTMA Background checks for the purpose of this statement of work refer only to the evaluation of character and financial background information for foreign applicants and does not include criminal history information or background investigations of domestic applicants.

This project contains the following scope:

A. Provide financial accounting, integrity oversight monitoring or auditing services as required by this Tier 2 SOW issued by Licensing and Regulatory Affairs (LARA). Services may include, but not be limited to, the following:

1. Cash Management

2. Forensic Accounting/Auditing (e.g. investigative engagements designed to detect fraud or misuse of funds, general auditing procedures to evaluate program operations and financial and other compliance requirements.

3. Budgeting (e.g. evaluating program needs and ensuring proper budgeting, forecasting and related monitoring controls)

4. Financial Forecasting (e.g. Assist with the coordination and development of multiyear financial plans and models.)

5. Internal Controls (e.g.