25SS0022_-_All_Exhibits.pdf

California Department of Veterans Affairs RFP Number: 25SS0022 Exhibit A - Scope of Work Contractor- TBD

Financial Governance Services

1. INTRODUCTION/SERVICES

A. Contractor shall provide Financial Governance consultation services to the California Department of

Veterans Affairs (CalVet) for the benefit and care of the Veterans Home Residents. Contractor shall provide all labor, materials, staff, license, permits and every other item of expense necessary to perform services, unless otherwise stated. Services shall be provided at the Contractor’s place of business.

B. All work shall be coordinated and approved by the Contract Manager or designated representative.

Services shall be available to meet with CalVet during standard business hours 8:00 a.m. to 5:00 p.m., Monday through Friday, Pacific Standard Time (PST), unless otherwise specified. No work is to be performed on State holidays or on an overtime basis unless prior approval is received in writing from the Contract Manager, prior to this work taking place. Any and all services performed outside the scope of this Agreement or not approved by the Contract Manager, or designated representative, will be at the sole risk and expense of the Contractor.

C. Contractor must perform services under the scope of their license and in accordance with federal and state laws and regulations as well as CalVet policies and procedures.

D. Any and all services performed outside the scope of this Agreement will be at the sole risk and expense of the Contractor.

E. The Contractor is not authorized to deliver or commence performance of services as described in the agreement until written approval has been obtained from CalVet Contract Manager and the Contractor has received an executed contract from CalVet. Any delivery or performance of service commenced prior to the Contractor obtaining all written approvals shall be considered voluntary on the part of the Contractor.

2. CONTRACTOR’S RESPONSIBILITIES

A. Contractor must refer to Exhibit A-1, Services Specifications for details and to prepare proposals.

B. Contractor must review current processes and develop written standard operating procedures and training for all eight Homes as specified in the Exhibit A-1 to bring:

1) Consistent revenue cycle operations

2) Stabilize and strengthen the revenue cycle process

3) Improve operation efficiency and revenue performance

4) Reduce manual processes

5) Refine and synchronize enterprise-wide financial controls. Ensure different financial systems are compatible.

6) Provide comprehensive onsite staff training.

C. Contractor shall review and assess the current budget allocation process, methodologies, policies, procedures, calculations and compliance with California Department of Finance guidance and State Administrative Manual requirements. Deliver findings, and recommendations in a report.

Contractor shall implement recommended improvements, develop standardize operating procedures, enhancing budget allocation tools and monitoring processes, improving expenditure tracking, and provide training and knowledge transfer to impacted personnel.

D. Contractor must discuss any finds with the CalVet contract manager and provide guidance according

State and Federal regulations.

E. Contractor must ensure that contractor’s reports and designs will not contradict with CalVet’s mission and vision.

F. Contractor must follow the HIPAA.

3. DELIVERABLES

Deliverables- Financial Governance- Anticipated Completion Date

1. Submit the completed Phase 1;Building Foundation: 1) Report on findings and proposal to establish governance, ownership and internal controls; 2) Presentation (e.g. PowerPoint); and 3) Desk procedures, 4) Developed and documented training plan.

08/15/2026

2. Submit the completed Phase 2; Revenue Cycle Stabilization. The deliverable must consist of: 1) Report on findings and proposal to stabilize the revenue process for all eight Veterans Homes by ensuring tasks are completed through the intricacy for a complex regulatory framework of entire financial lifecycle from resident pre-admission to final payment is followed; 2) Presentation (e.g.

PowerPoint); and 3) Desk procedures, 4) Developed and documented training plan.

11/30/2026

3. Submit the completed Phase 3; Process Optimization: The deliverable must consist of 1) Streamline the billing process and boost the revenue by eliminating manual workarounds, removing duplicates workflows and increasing operational efficiencies; 2) Presentation (e.g. PowerPoint); and 3) Desk procedures, 4) Developed and documented training plan.

02/01/2027

4. Submit the completed Phase 4; Process Refinement: The deliverable must consist of 1) Process to strengthen month-end disciplines, eliminate residual manual gaps, and synchronize enterprise-wide financial controls; 2) Presentation (e.g.

PowerPoint); and 3) Desk procedures, 4) Developed and documented training plan. 5) Provide on-site training to staff utilizing the documented standard operating procedures from the completion of Phases 1, 2, and 3 to applicable personnel to ensure consistency with business operational efficiencies are achieved and compliance standards are maintained.

04/01/2027

Deliverables- Enterprise- Wide: Budget Process Enhancement Anticipated Completion

Date

5. Submit the completed Phase 1; Assessment: 1) Report on findings; 2) Presentation (e.g. PowerPoint); and 3) Desk procedures, 4) Developed and documented training plan.

09/01/2026

6. Submit the completed Phase 2;Process Enhancement: 1) Upon completion of the assessment performed and the documented report provided from phase 1, assist with implementation of recommendations given to enhance and strengthen the budget process for the enterprise; 2) Presentation (e.g. PowerPoint); and

3) Desk procedures, 4) Developed and documented training plan.

12/30/2026

4. CONTRACTOR/PROVIDER’S QUALIFICATIONS

A. Contractor/Providers must have the required licenses, insurance, permits, and/or certifications noted herein.

B. Contractor must have at least 3 years demonstrated experience with developing financial strategies and trainings to health care facilities which accept Medicare and Medical reimbursements.

C. Proposers must certify that they are and will continue to meet all terms and conditions for operating a business in the city/county in which the business is headquartered.

D. Proposers and/or their subcontractors which are corporations shall submit a printout from the California

Secretary of State website which shows that their corporation is currently in good standing.

E. Proposer shall provide three (3) written references three (3) references from existing or former customers for whom the proposer has provided services of a similar nature and type as those outlined in this solicitation. Proposer shall also submit three (3) reference forms for any subcontractor(s) being used to meet any of the Minimum Qualifications, clearly distinguishing between Proposer and Subcontractors. if the proposer has provided services to CalVet during this timeframe, one of the references must be from a CalVet contract manager

F. The proposer certifies that they understand the insurance requirements and, if awarded an agreement, shall sign and return one (1) originals of the Standard Agreement signature pages (Std. 213) and any required insurance documents as directed

G. Proposers must submit a detailed narrative that addresses the proposers’ qualifications and experience as it relates to the recruitment for Financial Governance services and Trainings.

H. Proposer must submit Response to Requirements as Attachment 1, and Cost Proposal as Attachment 2

Refer to Attachment 3, Minimum Qualifications Responses for additional details.

1. LICENSES, PERMITS, AND CERTIFICATION REQUIREMENTS

A. Prior to providing services specified in this Agreement, Contractor or Contractor’s Provider shall possess and maintain throughout the term of this Agreement all licenses, permits, and certification requirements.

B. If, during the course of this Agreement, any of the licenses and/or requirements are found to be inactive or not in compliance, CalVet may withhold payment for services rendered during the expiration period and/or immediately terminate this Agreement.

C. Assume responsibility for verifying, through the appropriate licensing boards, that no current or unresolved adverse actions have been taken by the State licensing authorities against any Provider(s) assigned to CalVet, and that all licenses are active and void of misconduct. CalVet may, at its discretion, verify the current status of Provider(s) assigned.

2. INDEPENDENT CONTRACTOR STATUS

A. The Contractor/Providers shall be considered “Independent Contractors” in relation to CalVet and the

State. Therefore, the Contractor/Providers shall not be considered employee(s) of the Home and shall not be entitled to any employee benefits from the CalVet or the State including, but not limited to, the following:

1. Premium Pay, Overtime Pay, or Holiday Pay

2. Medical Insurance

3. Vacation or Sick Leave

4. Worker’s Compensation

5. Other employee benefits

3. CONTACT INFORMATION

A. The project representatives during the term of this agreement will be:

1. CalVet Representative/Contract Manager:

Geraldine Gillen Director, Policy and Compliance - Executive Division 1227 “O” Street Sacramento, CA 95814

(916) 503-8006 Geraldine.gillen@calvet.ca.gov

2. Contractor Representative:

Contractor Contact Person Title Contractor- TBD Address City, State, Zip code Phone Number Email address

B. Project Representatives, addresses, and phone/fax numbers may be changed by issuing a 20-day prior written notification and shall not require a formal amendment to this Agreement. The notifying party shall provide complete contact information for the replacement Project Representative including, name, title, mailing address, phone/fax numbers, and email address. All other changes require a formal written amendment to this agreement.

C. Contract Representatives, addresses, and phone/fax numbers may be changed by issuing a 20-day prior written notification and shall not require a formal amendment to this Agreement. The notifying party shall provide complete contact information for the replacement Contract Representative including, name, title, mailing address, phone/fax numbers, and email address. All other changes require a formal written amendment to this Agreement.

California Department of Veterans Affairs Exhibit A1 –Services Specifications

RFP Number:25SS0022

TBD

Veterans Homes of California: Revenue Cycle Transformation

Phase 1: Building the Foundation Establish governance, ownership, and internal controls before any downstream work begins.

A. Align legacy policies and procedures with adopted touchpoints on the electronic healthcare record

(EHR) system.

B. Standardize desk procedures per role across core revenue functions.

C. Enhance authority matrices for approval, adjustment, and reconciliation controls.

D. Develop a documented training plan that provides continuous professional education to personnel performing the revenue cycle management function.

Phase 2: Revenue Cycle Stabilization Stabilize the revenue process for all eight Veterans Homes by ensuring tasks are completed throughout the intricacy for a complex regulatory framework of entire financial lifecycle from resident pre-admission to final payment is followed.

A. Consolidate fee management and the unreimbursed cost of care calculation within the EHR system.

i. Access and Verification: Ensure resident benefits are active, prior authorizations are secured, and financial responsibilities are transparent through collection and verification of demographic and insurance information.

ii. Documentation: Ensure accuracy for case-mix classification such as Medicare’s Patient Driving Payment Model (PDPM) to reflect the true acuity and care needs of the resident by tracking ongoing resident assessments, such as Minimum Data Set (MDS) submissions, which directly drive reimbursements.

iii. Charge Capture: Prevent revenue leakage or lost charges by ensuring every provided service is documented and coded correctly by systematically logging every billable medical service, therapy, medication, and room and board charges provided to the resident

iv. Coding, Claims, and Reimbursement:

• Submit claims that are free of coding and demographic errors to avoid immediate rejection by converting clinical data and charges into standardized claims and submitting those to the appropriate payor.

• Resolve issues with denied claims promptly through appeals or corrected submission to receive owed revenue timely by reviewing payments sent by insurers and identifying any underpayments or claim denials.

• Maximize collection of patient-responsible balances while maintaining strong communication with the resident and families to prevent unrecoverable bad debt.

B. Payment Posting and Cash Application

i. Standardize retro-adjustment workflows and financial reconciliation.

ii. Implement documented, deadline-based, payment posting and cash handling controls.

iii. Establish system-driving receivable reconciliation and aging management.

C. Solution Configuration and System Alignment

i. Configure EHR billing, authorization, and financial modules to enterprise standards.

ii. Replace spreadsheet-based tracking with system-generated financial reporting.

D. Census Stabilization and Billing Readiness

i. Transition census and admissions tracking to real-time EHR workflows.

ii. Standardize third-party billing processes and payor coordination.

RFP Number:25SS0022

TBD

Phase 3: Process Optimization Once controls and the core cycle are stable, streamline the billing process and boost revenue by eliminating manual workarounds, removing duplicate workflows, and increasing operational efficiencies.

A. Medical Service Payment

i. Standardize the intake, validation, and payment authorization for outside medical services provided to residents.

ii. Implement program-level oversight to prevent duplicate payments and avoidable liability.

B. Authorization and Denial Management

i. Activate EHR authorization management tools and dashboards.

ii. Centralize denial tracking, appeal, and root-cause focused adjustment tracking.

C. Billing and Revenue Optimization

i. Standardize therapy documentation and coding practices across all eight Veterans Homes.

ii. Automate eligibility verification workflows and documentation.

D. Key Performance Indicators (KPI) and Reporting

i. Develop program KPIs for data-driven performance monitoring

ii. Establish standardized reporting across all eight Veterans Homes for consistent measurement.

Phase 4: Process Refinement Strengthen month-end disciplines, eliminate residual manual gaps, and synchronize enterprise-wide financial controls.

A. Month-End Financial Discipline

i. Tighten month-end close process and reconciliation cycles.

ii. Standardize financial reporting cadence across all eight Veterans Homes.

B. Enterprise Controls Synchronization

i. Synchronize financial controls for all eight Veterans Homes.

ii. Align FI$Cal integration with EHR financial workflows.

C. Third-Party Billing Refinement

i. Refine payor coordination and billing follow-up processes.

ii. Optimize denial prevention and appeals management workflows.

D. Residual Gap Elimination

i. Eliminate remaining manual workarounds and parallel processes.

ii. Consolidate cross-system operations for sustained auditability.

E. Staff Training

i. Provide applicable onsite training utilizing the documented standard operating procedures developed from completion of Phases 1, 2, and 3 to applicable personnel to ensure consistency with business operational efficiencies are achieved and compliance standards are maintained.

Enterprise-Wide: Budget Process Enhancement

Phase 1: Assessment Obtain an understanding of the current process and assess for gaps and improvements.

A. Review of documented policies and procedures.

B. Ensure alignment of California Department of Finance Budget Process overview and State

Administrative Manual cost allocation methodology, particularly with Distributed Administration.

C. Review documentation and calculations used to confirm methodology applied.

D. Provide an overall assessment report on conclusions reached.

Phase 2: Process Enhancement Upon completion of the assessment performed and the documented report provided from Phase 1, assist with implementation of the recommendations given to enhance and strengthen the budget process for the enterprise.

A. Develop standard operating procedures.

RFP Number:25SS0022

TBD

i. Include the methodology adopted and being used.

ii. Include the treatment of cost pools assigned to determine administrative costs were accurately calculated and captured.

iii. Include the timelines and the communication cadence provided to the programs.

B. Assist with the updates required for the calculation tools and spreadsheets used in the enhanced process, to include a monitoring mechanism for tracking of actual expenditures versus budgeted amounts.

C. Provide necessary training for impacted personnel, which includes a documented training plan and onsite training sessions.

Exhibit B - Budget Detail and Payment Provisions

Agreement Number: 25SS0022

TBD

1. STANDARD BUDGET DETAIL AND PAYMENT PROVISIONS

A. Invoicing and Payment

1. For services satisfactorily rendered, and upon receipt and approval of the invoices, the State agrees to compensate the Contractor for services rendered in accordance with the rates in Exhibit B-1.

2. Invoices shall include the Agreement Number and shall be submitted in not more frequently than monthly in arrears to:

Original Invoice Approval Copy Department of Veterans Affairs CalVet Accounting Office 1227 “O” Street Room 402 Sacramento, CA 95814 APInvoices@calvet.ca.gov

Veterans Home of California – TBD Attn: TBD Home Address Home City, State, and Zip code

B. Budget Contingency Clause

1. 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 form and effect. In this event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish any other considerations under this Agreement and Contractor shall not be obligated to perform any provisions of this Agreement.

2. 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 Contractor to reflect the reduced amount.

C. 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.

2. SPECIAL BUDGET DETAIL AND PAYMENT PROVISIONS

Submissions of Invoices/Claims

A. All invoices/claims must be completed thoroughly and legibly, with all applicable fields completed.

Invoices/claims that are submitted to the appropriate location but have been altered, or are inaccurate, or do not provide all necessary information will not be accepted and will be returned to the Contractor for correction.

B. Any changes to this provision relating to the invoice/claim submittal process, including but not limited to an address, form, or process change, shall be an administrative change managed through the appropriate designated CalVet office and shall not require a contract amendment.

C. Contractor shall submit monthly invoices to the CalVet Contract Manager for approval and processing.

Invoices/claims submitted shall include the following information in order to be considered complete and acceptable for processing, or the invoice/claim will be returned:

1) Contractor’s Company name exactly as it appears on the Payee Data Record (STD.204)

2) Contractor’s Company address, phone number and e-mail

3) Date of invoice/claim

4) Invoice/claim number

Exhibit B - Budget Detail and Payment Provisions

Agreement Number: 25SS0022

TBD

5) CalVet location where services were performed

6) Contract/Agreement Number

7) Date(s) of Service

8) Total dollar amount being billed

9) First and Last name of Contractor or Provider performing services, if applicable

10) Contractor’s or Provider’s Classification, whichever is applicable

11) Contractor’s final invoice must be clearly marked as “Final Invoice”

12) When applicable, Contractors shall include the following information on the invoice/claim submitted for hourly reimbursement:

a) Hourly Rate

b) Time in and time out

c) Total hours worked

d) Any other information or documentation reasonably required to verify and substantiate the provision of services and the charges for such services.

3. CONTRACTOR OVERPAYMENTS

A. If the State determines that an overpayment has been made to the Contractor, the State will seek recovery immediately upon discovery of the overpayment by: (a) calling the Contractor’s accounting office to request a refund of the overpayment amount, or (b) offsetting subsequent Contractor payments by the amount of the overpayment if Contractor repayment or credit is not received within thirty (30) days from the date of notice.

B. If Contractor discovers it has received an overpayment, Contractor must notify the State and refund the overpayment immediately.

4. DVBE Withhold

A. For contracts with DVBE subcontractors pursuant to Mil. & Vet. Code Section 999.7, ten thousand dollars ($10,000) will be withheld from the final payment, or the full final payment if less than ten thousand dollars ($10,000), until the prime contractor complies with the certification requirements of subdivision (d) of Mil.

& Vet. Code Section 999.5. Prime contractor shall be given 30 days’ notice to cure the defect. If, after 30 calendar days from the date of notice, the prime contractor refuses to comply with the certification requirements, CalVet shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if less than ten thousand dollars ($10,000).

B. CalVet shall maintain all records of the information provided by the prime contractor pursuant to Section

999.5 and shall establish appropriate review procedures for those records to ensure the accuracy and completeness of the award amounts and paid amounts reported. The records shall be maintained in a manner that facilitates access and review by external auditors. Records collected pursuant to this section shall be retained for a minimum of six years after collection. (Mil. & Vet. Code Section 999.55)

California Department of Veterans Affairs Agreement Number: 25SS0022 Exhibit B-1 – Rate Sheet TBD

The Contractor must be able to provide services listed below. Subcontractors may be used to comply with this requirement. Subcontractor(s) information must be identified on Bidder Declaration (GSPD-05-105). If additional Subcontractors are added during the term of the Agreement, an updated GSPD-05-105 must be submitted.

The rate listed below is in effect for the term of the Agreement, including any extension of the term through a formal amendment.

DELIVERABLES AMOUNT PER DELIVERABLE

Completed Phase 1;Building Foundation: 1) Report on findings and proposal to establish governance, ownership and internal controls; 2) Presentation (e.g. PowerPoint); and 3) Desk procedures, 4) Developed and documented training plan Completed Phase 2; Revenue Cycle Stabilization. The deliverable must consist of: 1) Report on findings and proposal to stabilize the revenue process for all eight Veterans Homes by ensuring tasks are completed through the intricacy for a complex regulatory framework of entire financial lifecycle from resident pre- admission to final payment is followed; 2) Presentation (e.g. PowerPoint);

and 3) Desk procedures, 4) Developed and documented training plan.

Completed Phase 3; Process Optimization: The deliverable must consist of 1) Streamline the billing process and boost the revenue by eliminating manual workarounds, removing duplicates workflows and increasing operational efficiencies; 2) Presentation (e.g. PowerPoint); and 3) Desk procedures, 4) Developed and documented training plan.

Completed Phase 4; Process Refinement: The deliverable must consist of 1) Process to strengthen month-end disciplines, eliminate residual manual gaps, and synchronize enterprise-wide financial controls; 2) Presentation (e.g. PowerPoint); and 3) Desk procedures, 4) Developed and documented training plan. 5) Provide on-site training to staff utilizing the documented standard operating procedures from the completion of Phases 1, 2, and 3 to applicable personnel to ensure consistency with business operational efficiencies are achieved and compliance standards are maintained.

Deliverables- Enterprise- Wide: Budget Process Enhancement AMOUNT PER DELIVERABLE Completed Phase 1; Assessment:1) Report on findings; 2) Presentation (e.g. PowerPoint); and 3) Desk procedures, 4) Developed and documented training plan.

Completed Phase 2;Process Enhancement: 1) Upon completion of the assessment performed and the documented report provided from phase 1, assist with implementation of recommendations given to enhance and strengthen the budget process for the enterprise; 2) Presentation (e.g. PowerPoint); and 3) Desk procedures, 4) Developed and documented training plan.

Exhibit C, General Terms and Conditions TBD

1. General Terms and Conditions

A. General Terms and Conditions (GTCs)

The (GTCs) are hereby incorporated by reference and made part of this agreement as if attached.

hereto. These documents may also be viewed at the California Department of General Services website: https://www.dgs.ca.gov/-/media/Divisions/OLS/Resources/GTC-Updates/GTC-225- February-2025.pdf https://www.dgs.ca.gov/-/media/Divisions/OLS/Resources/GTC-Updates/GTC-225-February-2025.pdf https://www.dgs.ca.gov/-/media/Divisions/OLS/Resources/GTC-Updates/GTC-225-February-2025.pdf

Exhibit D – Special Terms and Conditions TBD

1. EXCISE TAX

The State of California is exempt from Federal Excise Taxes, and no payment will be made 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 Contract. California may pay any applicable sales or use tax imposed by another state.

2. STATUTORY AND REGULATORY PROVISIONS

A. This Contract shall be governed and construed in accordance with all applicable statutory and regulatory provisions including, but not limited to:

1) Title XVIII of the Federal Social Security Act

2) Title XIX of the Federal Social Security Act

3) Chapters 7 and 8 (commencing with Section 14000), Part 3, Division 9, Welfare and Institutions Code

4) Division 3, Title 22, California Code of Regulations (CCR)

5) Health and Safety Code Section 1340 et seq.

6) All applicable Federal provisions which regulate the administration of health care programs and budget revisions, as contained in the Code of Federal Regulations (CFR), Title 42, and Title 45, Part 74, Title 42 United States Code, Sections 1395 et seq. and 1396 et seq.

7) Sub-chapter 13 (commencing with Section 6800), Chapter 4, Part 1, Title 17, CCR; and

8) All other applicable laws and regulations.

B. Any provision of this Contract in conflict with the applicable laws and regulations is hereby amended to conform to the provisions of those laws and regulations. Such amendment of the Contract shall be effective on the effective date of the statutes or regulations necessitating it, and shall be binding on the parties even though the amendment may not have been reduced to writing and formally agreed upon and executed by the parties. If, due to amendment in laws of regulations, Contractor is unable or unwilling to comply with the provisions of the amendment(s), State or Contractor may terminate this Contract in accordance with the Termination provision of this Contract.

3. EXAMINATION AND AUDIT

A. Contractor shall allow the State and its related entities, the Comptroller General of the United States, Department of Justice (DOJ), and the Bureau of Medi-Cal Fraud, or their duly authorized representatives, to inspect or otherwise evaluate the quality, appropriateness, and timeliness of services performed under this Contract, and to inspect, evaluate, and audit any and all books, records, and facilities maintained by the Contractor and Subcontractors pertaining to services under this Contract at any time during normal business hours.

B. Contractor shall be subject to the examination and audit of the State Auditor for a period of three (3) years after final payment under this Contract in accordance with Government Code, Section 85467.7. The examination and audit shall be confined to those matters directly connected with the performance of the contract, including, but not limited to, the costs of administering the Contract.

C. Books and records include, but are not limited to, all physical records originated or prepared pursuant to the performance under this Contract, including working papers, reports, financial records, and books of account, Medical Records, prescriptions files, Subcontracts, and any other documentation pertaining to medical and non-medical services for residents of the Home. Upon request, at any time during the term of this Contract, the Contractor shall furnish any record or copy.

4. RESOLUTION OF DISPUTES

A. The Contractor may dispute and appeal a decision or action by the State arising out of the Interpretation or administration of this Contract. A written dispute notice shall be submitted to the Contract Manager within thirty (30) calendar days from the date the Contractor receives notice of the decision or action in dispute.

The Contractor’s dispute notice shall state the following, based on the most accurate information available to the Contractor:

1) That it is a dispute pursuant to this Section.

2) The date, nature, and circumstances of the conduct, which is the subject of dispute.

3) The names, telephone numbers, function, and activity of each contractor, subcontractor, State official, or employee involved in or knowledgeable about the conduct.

4) The identification of any documents and the substance of any oral communications involved in the conduct. Copies of all identified documents shall be attached.

5) The reason why the Contractor is disputing the conduct.

6) The cost impact to the Contractor directly attributable to the alleged conduct, if any.

7) The Contractor’s desired remedy.

B. The State and the Contractor agree to try to resolve all contractual issues by negotiation and mutual agreement at the Contract Manager level. The parties recognize that the implementation of this policy depends on open-mindedness, and the need for both sides to present adequate supporting information on matters in question. The Contract Manager, in a written decision stating the factual basis for the decision, will decide any disputes concerning performance of this Contract. Before issuance of the Contract Manager’s decision, informal discussions between the parties by the individuals who have not participated substantially in the matter in dispute will be considered by the parties in efforts to reach mutual agreement.

C. The Contract Manager will render a decision or request additional substantiating documentation from the

Contractor within thirty (30) days of receipt of the Contractor’s appeal. A copy of the decision will be provided to the Contractor. The decision shall be final and conclusive unless, within thirty (30) days from the date of the decision, the Contractor files a written appeal addressed to the Undersecretary, California Department of Veterans Affairs.

D. The Undersecretary’s decision shall be final and conclusive unless the decision is arbitrary, capricious, grossly erroneous or if any determination of fact is unsupported by substantiating evidence. The Undersecretary’s decision will be in writing and may encompass facts, interpretations of the Contract, and determination or application of law. The Contractor may, prior to the Undersecretary’s decision, present oral or documentary evidence, and arguments in support of the Contractor’s appeal. The decision will either:

1) Find in favor of the Contractor, in which case the Undersecretary may:

a) Countermand the earlier conduct which caused the Contractor to file a dispute; or

b) Reaffirm the conduct and, if there is a cost impact sufficient to constitute a change in obligations pursuant to the payment provisions, direct the State to comply with that Section.

2) Deny the Contractor’s dispute and, where necessary, direct the manner of future performance; or

3) Request additional substantiating documentation in the event the information in the Contractor’s dispute or appeal is inadequate to permit a decision to be made under paragraphs (1) or (2) above, advise the Contractor as to what additional information is required, and establish how that information will be furnished. The Contractor shall have thirty (30) days to respond to the Undersecretary’s request for further information. Upon receipt of this additional requested information, the

Undersecretary will have thirty (30) days to respond with a decision. Failure to supply additional information required by the Undersecretary within the time period specified above shall constitute waiver by the Contractor of all claims.

E. Attorney’s fees and costs for any dispute or subsequent trial shall be borne by the respective parties.

Both parties waive trial by jury, and any trial in superior or municipal court shall be by a judge alone. Any litigation arising out of this Contract shall be conducted in a California Court pursuant to California law.

F. Contractor shall continue with the responsibilities under this Contract during any dispute.

5. AGENCY LIABILITY (Applies only to Federally Funded Contracts)

The Contractor warrants by execution of this Contract, that no person or selling agency has been employed or retained to solicit or secure this Contract upon Contract 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 State shall, in addition to other remedies provided by law, have the right to annul this Contract 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.

6. POTENTIAL SUBCONTRACTORS

For all Agreements, with the exception of Interagency Agreements and other governmental entities/auxiliaries exempt from bidding, nothing contained in this Contract or otherwise shall create any contractual relation between the State and any subcontractors, and no subcontract shall relieve the Contractor of Contractor’s responsibilities and obligations hereunder. The Contractor agrees to be as fully responsible to the State 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 State shall have no obligation to pay or enforce the payment of any moneys to any subcontractor.

7. REPORTING SMALL BUSINESS (SB)/MICRO BUSINESS (MB) AND /OR DISABLED VETERANS

BUSINESS ENTERPRISE (DVBE) UTILIZATION

A. If SB/MB and/or DVBE Subcontractor participation is a requirement on this Agreement, the Contractor must report the actual amount paid to certified Subcontractors. The Contractor must comply with Government Code Section 14841 and Military and Veterans Code Section 999.5(d) by reporting the actual utilization of certified Subcontractor(s) during the performance of this Agreement. The Contractor shall prepare and submit the report to the Contract Manager within 60 days from receipt of final payment.

B. Withhold: Pursuant to Mil. & Vet. Code Section 999.7, ten thousand dollars ($10,000) will be withheld from the final payment, or the full final payment if less than ten thousand dollars ($10,000), until the prime contractor complies with the certification requirements of subdivision (d) of Mil. & Vet. Code Section

999.5. Prime contractor shall be given 30 days’ notice to cure the defect. If, after 30 calendar days from the date of notice, the prime contractor refuses to comply with the certification requirements, CalVet shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if less than ten thousand dollars ($10,000).

8. SUBSTITUTION OF DVBEs

A. If applicable, DVBE subcontractors shall be used per the California Code of Regulations (CCR), Title 2 §

1896.70 unless a substitution is approved in writing by the Department of General Services (DGS),Office of Small Business & Disabled Veteran Business Enterprise (OSDS). A DVBE subcontractor shall be replaced by another DVBE to perform the work originally stated. The substitution shall maintain, at minimum, the level of participation goal stated in the bid.

1) The Contractor shall simultaneously notify the DVBE and the CalVet Contract Manager of the intended substitution. The written notice shall contain the reasons for the substitution and be sent by certified mail. The Contractor shall submit the following to the CalVet Contract Manager:

i. A copy of the written notice issued to the DVBE with proof of delivery. In the absence of proof of delivery, provide the certified mail receipts.

ii. A copy of the DVBE’s consent or opposition to the substitution. In the absence of the consent or opposition, provide the returned and unopened certified mail.

iii. The name and supplier number of the business being substituted and the name and supplier number of the proposed replacement. If a DVBE cannot be identified as a replacement, the Contractor shall document the absence of DVBEs. This documentation shall include but is not limited to:

1. Contact CalVet’ SB/DVBE Coordinator regarding the absence of DVBEs to perform the specific work.

2. Search results from the DGS website for DVBEs to perform the specific work.

3. Communication with a DVBE Community Organization nearest the worksite regarding the absence of DVBEs, if applicable.

4. Documented communication with DVBEs describing the work to be performed, its percentage of the overall contract, the corresponding dollar amount, and their responses to the request.

2) The DVBE shall have up to five (5) business days from the postmark date to consent or oppose the substitution. A copy of the DVBE’s reply shall be sent simultaneously by certified mail to the Contractor and the CalVet Contract Manager.

3) When written oppositions to a substitution are filed, CalVet shall grant the DVBE a hearing. The hearing notice shall be issued within five (5) business days from receipt of the opposition. If CalVet grants the substitution, continue to G, below.

4) The CalVet Contract Manager shall submit the substitution request to the DGS, OSDS:

i. The request must meet the criteria as specified above or § 4107 of the Public Contract Code for

Public Works.

ii. The substitution request shall be accompanied by the hearing decision, when applicable.

5) The OSDS will respond to substitution requests within three (3) business days. The OSDS shall consent to the substitution of another DVBE in any of the following situations:

i. When the DVBE becomes bankrupt, insolvent or goes out of business.

ii. When the DVBE does not perform as listed in the Bidder Declaration.

iii. When the DVBE does not meet the bond requirements of the contractor.

iv. When the DVBE’s name is incorrect due to an inadvertent clerical error. In the case of public works contracts, compliance with § 4107.5 of the Public Contract Code is required.

v. When the DVBE is not licensed as required by any State of California regulatory agency.

vi. When CalVet, or its duly authorized officer, determines that the DVBE:

1. Did not perform in accordance with the plans and specifications; or,

2. Has delayed or disrupted the progress of the work.

6) The DVBE substitution process shall not be used as an excuse for noncompliance with any provision of law. This includes, but is not limited to, the Subletting and Subcontracting Fair Practices Act (§ 4100 et seq., Public Contract Code) or any Agreement requirements relating to substitution of subcontractors.

7) Contractors who proceed with work pending a substitution decision may be subject to contract termination, recovery of damages under rights, remedies and penalties. This is outlined in § 999.9 of the Military and Veterans Code, § 10115.10 of the Public Contract Code or § 4110 of the Public Contract Code (applies to public works only). Failure to adhere to the DVBE participation in the performance of the Agreement may be cause for Agreement termination and recovery of damages under the rights and remedies due CalVet.

8) Any DVBE firm acting/working under subcontract must be responsible for providing materials, supplies, equipment or services and must carry out its responsibility by actually performing, managing, or supervising the work involved that is normal for its business services and functions.

9) The Contractor shall maintain records of all subcontracts entered into with DVBE Subcontractors including records of materials purchased from DVBE suppliers. Such records shall show the name and address of each DVBE Subcontractor or supplier and the total dollar amount paid to each one.

Upon completion of the Agreement, a summary of these records shall be prepared and certified correct by the Contractor or his authorized representative and the summary shall be furnished to the CalVet Contract Manager.

9. SMALL BUSINESS OR DISABLED VETERAN BUSINESS ENTERPRISE CERTIFICATION

A. Contractor shall maintain its status as a Department of General Services (DGS) certified Small Business

(SB)/Microbusiness (MB) or Disabled Veteran Business Enterprise (DVBE), as applicable, throughout the term of this Agreement.

B. Subcontractor must also maintain its certification with the DGS Office of Small Business & Disabled Veteran Business Enterprise Services as a SB/MB or DVBE, as applicable, for the duration of this Agreement.

10. INSURANCE REQUIREMENTS

A. Upon contract award, contractor must furnish to the State an original certificate(s) of insurance stating that the contractor has the following types of coverage, if applicable:

1) Commercial General Liability: Combined Single Limit (CSL) for no less than $1,000,000 per occurrence for bodily injury and property damage. The policy must include coverage for liabilities arising out of premises, operations, independent contractors, products/completed operations, personal & advertising injury, and liability assumed under an insured contract. This insurance shall apply separately to each insured against whom claim is made or suit is brought subject to the contractor’s limit of liability.

2) Professional Liability: (Applies to any contract in which the work is of a professional nature such as, but not limited to, physicians, architects, engineers, accountants, or consultants) Covering any damages caused by an error, omission, or any negligent acts. Limits of not less than $1,000,000 per claim and $3,000,000 aggregate.

3) Automobile Liability (Applies to any contract in which the contractor will likely use a vehicle to complete the project or drive a vehicle onto State property): Limits of not less than $1,000,000 per accident. Such insurance shall cover liability arising out of an automobile including owned, hired, and non-owned autos.

a) MCS90 endorsement on the Automobile policy (required whenever contractor will be transporting Hazardous materials i.e. Pest Control and Waste contracts.)

4) Pollution Liability/Environmental Impairment Liability (Applies only to Pollution Contracts – i.e. Pest Control and Waste Contracts): In addition, the certificate evidencing general liability must include evidence of one of the following if applicable to the service:

a) Pesticide/Herbicide Endorsement, OR

b) An endorsement deleting the general liability pollution exclusion, OR

c) A separate environmental/pollution liability policy with limits not less than $1,000,000 covering bodily injury and property damage from pollution and related clean up costs incurred arising out of the work or services to be performed under this contract.

5) Workers’ Compensation (Mandatory for all Contractors who have at least one employee): Contractor shall maintain workers’ compensation and employer’s liability coverage for all its employees who will be engaged in the performance of the contract, including special coverage extensions where applicable. Contractor shall furnish a certificate for Workers’ Compensation issued by an insurance carrier licensed to write Workers’ Compensation insurance in the State of California, including the name of the carrier and the date of expiration of insurance, or a Certificate of Consent to Self-Insure issued by the Department of Industrial Relations.

6) Fidelity Bond/Crime Insurance: (Applies only to contracts handling State money or securities – i.e.

Armored Car Service Contracts) Contractor shall maintain Employee Dishonesty and, when applicable, Inside/Outside Money & Securities coverages for state-owned property in the care, custody and control of the Contractor. Coverage limits shall not be less than the amount scheduled in the contract. The policy shall include as Contractor. Coverage limits shall not be less than the amount scheduled in the contract. The policy shall include as loss payee the California Department of Veterans Affairs

7) The certificate(s) of insurance shall be on an ACORD form, or equivalent, and must show

“occurrence” coverage. The certificates of insurance must also contain all of the following provisions:

a) Name and address of the insurance company, policy number, and beginning and ending dates of the policy.

b) Statement that the insurer will not cancel the insured’s coverage without 30 days prior written notice to the State.

c) Statement that the State of California, its officers, agents, employees, and servants are included as additional insured on the policy, but only insofar as the operations under this contract. The additional insured endorsement must accompany the certificate of insurance. This does not pertain to professional liability.

8) Contractor agrees that any insurance herein provided shall be in full force and effect at all times during the term of the contract. In the event said insurance coverage expires at any time during the term of this contract, Contractor agrees to provide, at least ten (10) days prior to said expiration date, a new certificate of insurance evidencing insurance coverage as provided for herein for not less than the remainder of the term of the contract, or for a period of not less than one (1) year. In the event contractor fails to keep in effect at all times insurance coverage herein provided, State may, in addition to any other remedies it may have, terminate the contract upon the occurrence of such event, subject to the provisions of the contract.

9) Contractor shall notify the State within five (5) days if any insurance coverage identified in the contract is altered in any way.

11. RIGHT TO TERMINATE

A. The State reserves the right to terminate this Contract subject to thirty (30) days written notice to the

Contractor. Contractor may submit a written request to terminate this Contract only if the State should substantially fail to perform its responsibilities as provided herein. However, the Contract can be immediately terminated for cause. The term “for cause” shall mean that the Contractor fails to meet the terms, conditions, and/or responsibilities of the contract. In this instance, the contract termination shall be effective as of the date indicated on the State’s notification to the Contractor.

B. This Contract may be suspended or cancelled without notice, at the option of the Contractor, if the

Contractor or State’s premises or equipment are destroyed by fire or other catastrophe, or so substantially damaged that it is impractical to continue service, or in the event the Contractor is unable to render service as a result of any action by any governmental authority.

12. FORCE MAJEURE

Neither party shall be liable to the other for any delay in or failure of performance, nor shall any such delay in or failure of, performance constitute default, if such delay or failure is caused by “Force Majeure.” As used in this section, “Force Majeure” is defined as follows: Acts of war and acts of god such as earthquakes, floods, and other natural disasters such that performance is impossible.

13. EVALUATION OF CONTRACTOR

Performance of the Contractor under this Agreement will be evaluated. The evaluation shall be prepared on Contract/Contractor Evaluation Sheet (STD 4), and maintained in the Agreement file. For consultant agreements, a copy of the evaluation will be sent to the Department of General Services, Office of Legal Services, if it is negative and over $5,000.

14. SB/DVBE PARTICIPATION

In accordance with requirements set forth by the State, the CalVet shall enforce all laws, rules, and regulations pertaining to this program. It is the Contractors responsibility to provide CalVet with all required documents as outlined in this agreement. The CalVet reserves the right to contact each SB and DVBE identified by the Contractor to verify compliance. Failure to meet SB/DVBE requirements under Exhibit B, and Exhibit C (GTC 02/2025), paragraphs 19.a and 19.b. may deem the Contractor to be non-responsible and rejected from future bid and contract opportunities with the CalVet.

15. LICENSES AND PERMITS

The Contractor shall be an individual or firm licensed to do business in California and shall obtain at his/her expense all license(s) and permit(s) required by law for accomplishing any work required in connection with this…