4-Addendum1 6000001073.pdf

4 World Trade Center l 150 Greenwich Street, 21st floor l New York, NY 10007

August 23, 2022

SUBJECT: REQUEST FOR PROPOSALS FOR PERFORMANCE OF EXPERT

PROFESSIONAL INTERNAL AUDIT SERVICES AS REQUESTED ON A

“CALL-IN” BASIS DURING 2023 THROUGH 2026 (RFP# 6000001073) –

ADDENDUM #1

Dear Sir or Madam:

The Port Authority of New York and New Jersey (the “Port Authority” or “Authority”) hereby amends the subject Request for Proposals (RFP) as follows:

• The due date for receipt of Proposals has been changed to 2:00 p.m. Eastern Time (ET), September 8, 2022.

The following are questions from RFP recipients. The questions and the corresponding Authority answers are provided for your information and use, as appropriate.

Question #1: Is the Authority able to provide the list of the subject RFP’s attendees and presentation from the August 22, 2022 pre-proposal meeting?

Answer #1: The Authority has attached the subject pre-proposal meeting’s attendee list and presentation for your reference.

Question #2: Are the insurance requirements per candidate or for the firm? Will auditors need insurance for their own vehicles? What happens if we don’t carry Professional Liability Insurance?

Answer #2: The insurance requirements are required of the firm (the Proposer). Yes, auto insurance is requirement for use of personal vehicles for performance of the subject services. Should you be awarded an agreement, your firm must have the required insurance requirements as spelled out in the RFP, including professional liability insurance.

Question #3: The Scope of Work notes that the provided staff will work under the direct supervision of the Authority’s Audit Department Staff. The submission requirements in Section III. of the RFP Letter, under Letter G asks to provide a management structure for sharing project responsibilities, work allocation, oversight, deliverables, costs, and reporting responsibilities. We want to clarify that the Scope of Work is to provide internal audit staff that will work under the supervision of Authority staff and our firm will not have any responsibility to review our internal audit staff work, provide oversight of their work on a day-to-day basis or have any reporting responsibilities (internal audit staff augmentation). We are looking to understand more clearly the Authority’s vision on how the firm and the Authority would collaborate and complete the scope of services requested so we can include the proper professionals in our response and be responsive to the organizational structure you desire.

Answer #3: Although the Authority’s Audit Department will provide daily oversight to the consulting staff assigned to do the work, explain how your firm intends to provide high level oversight over your staff to ensure the quality of the services to be performed and keeping Authority staff appraised of issues in completing assignments, or other staff issues that may arise.

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Question #4: How many auditors are needed for these Call-In Services?

Answer #4: At this time, we anticipate utilizing approximately five (5) auditors on a full-time basis, forty (40) hours per week (minus their vacation time offered by their firm as well as holidays).

However, the number of auditors/projects can change at any time under this “Call-In” Program.

Therefore, be sure to include a full roster of those individuals who meet the requirements and can be available for these “Call-In” Services.

Question #5: Has the Authority previously contracted for similar Internal Auditing Call-In Services? If so, which firms were awarded agreements for such services?

Answer #5: Firms on the current Internal Auditing Call-In Services are located here on the Authority’s website: https://www.panynj.gov/port-authority/en/business-opportunities/awards/professional-technical-and-advisory-call-in---award-list.html Question #6: Will the Authority provide copies of the prior three years of internal audit plans?

Answer #6: No, access to these reports are not necessary to submit a proposal. The Authority has outlined the type of services the consulting staff would be performing in the Attachment A.

Question #7: For the pricing schedule, is the Authority solely looking for hourly rates by labor category?

Answer #7: The Authority is seeking auditors/senior auditors as outlined in the RFP Letter and proposers must provide fully loaded hourly rate for those two titles only. The Authority is not seeking above these levels. The fully loaded hourly billing rate for each employee is the amount to be paid to you and is full compensation for all overhead, benefits, taxes, etc., paid by you.

Question #8: Approximately what percentage of contracted audits has the Authority authorized to be done remotely for each of the past two fiscal years?

Answer #8: The past two years are anomalies. There may be opportunities for some remote work, however consulting staff will be required to follow the most up-to-date remote work policies established by the Authority at all times during the Call-In Program duration.

Question #9: Is the Authority’s expectation that consulting staff will access the Authority’s network and business applications to perform audit services, or may consulting staff use their own hardware and software if it is compatible and can perform the necessary functions?

Answer #9: Auditors will use Authority devices and tools to perform the services.

Question #10: Will firms be expected to use the Authority’s Audit Department tools and templates for planning, fieldwork, and reporting or may proposers propose using their own methodologies to complete the requested services?

Answer #10: Firms will be expected to use the Authority’s tools, templates and automated workpapers application.

Question #11: Will Audit projects be co-sourced with the Authority’s Audit Department staff or will the projects be completely outsourced to the firms, or will there be a hybrid approach depending on the project?

https://www.panynj.gov/port-authority/en/business-opportunities/awards/professional-technical-and-advisory-call-in---award-list.html https://www.panynj.gov/port-authority/en/business-opportunities/awards/professional-technical-and-advisory-call-in---award-list.html

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Answer #11: Each firm will be assigned to an Authority Audit Department Supervisor and Audit project staffing sources can be hybrid depending on the audit.

The date for receipt of proposals for the subject RFP has changed to 2:00 P.M. on September 8, 2022.

If you have any questions, please contact Ms. Amira Willis at amwillis@panynj.gov.

mailto:amwillis@panynj.gov

Organization Email 1 Deloitte ybattal@deloitte.com 2 Deloitte mohindsingh@deloitte.com 3 Weaver daniel.graves@weaver.com 4 K2 Integrity tduckworth@k2integrity.com 5 Protiviti zachary.unger@protiviti.com 6 Baker Tilly Tony.Ollmann@bakertilly.com 7 Grant Thornton Nazrine.Khan@us.gt.com 8 Grant Thornton Louise.Labrie@us.gt.com 9 Jefferson Wells christopher.fejko@jeffersonwells.com 10 Jefferson Wells michael.nemeth@jeffersonwells.com 11 Weaver alice.roach@weaver.com 12 CohnReznick LLP Nicole.Gorman@CohnReznick.com 13 CohnReznick LLP George.Gallinger@CohnReznick.com 14 Robert Half Josh.Britt@roberthalf.com 15 Holmes & Company, LLC cholmes@holmescpas.com

REQUEST FOR PROPOSALS FOR PERFORMANCE OF EXPERT PROFESSIONAL

INTERNAL AUDIT SERVICES AS REQUESTED ON A “CALL-IN” BASIS DURING

2023 THROUGH 2026

RFP# 6000001073

Pre-Proposal Attendance Sheet from August 22, 2022

REQUEST FOR PROPOSALS FOR PERFORMANCE OF EXPERT PROFESSIONAL

INTERNAL AUDIT SERVICES AS REQUESTED ON A “CALL-IN” BASIS DURING

2023 THROUGH 2026

RFP# 6000001073

Pre-Proposal Attendance Sheet from August 22, 2022

PERFORMANCE OF EXPERT PROFESSIONAL

INTERNAL AUDIT SERVICES AS REQUESTED ON A

“CALL-IN” BASIS DURING 2023 THROUGH 2026

RFP# 6000001073

Pre-Proposal Presentation to Certified Firms

8.22.22– 11:00 a.m.

*For Information Purposes Only. Requests for Proposals will supersede any information included in this presentation.*

AGENDA

Office of Diversity, Equity & Inclusion – Ocean Stokes, Compliance Analyst

Scope of Service Highlights – Rebecca Mojica, Audit Manager

Insurance Requirements – Sabiha Rahman, Risk Analyst, Risk Financing

Procurement Process – Amira Willis, Solicitation Manager

Q&A

OFFICE OF DIVERSITY, EQUITY AND

INCLUSION

Ocean Stokes, Compliance Analyst

Office of Diversity, Equity and Inclusion Priorities and Standards

OPPORTUNITIES DIVERSITY CAPACITY BUILDING

POLICY OVERSIGHT COMPLIANCE

Maximize opportunities available for minority, women-owned, small and disadvantaged business enterprises (MWSDBEs).

Promote Workforce Diversity in Port Authority and tenant business activities.

Offer capacity-building services for MWDSBEs/SDVOBs.

Initiate remedial plans to address deficiencies. Enforce compliance measures to ensure goals are met.

Implement reforms and develop agency policies.

Certification Programs

At the Port Authority of NY & NJ, we believe that our operations should reflect the diversity of our community. Our Board enacted the following participation goals:

20% Minority-owned business enterprises (MBE) 10% Women-owned business enterprises (WBE) 3% Service-disabled Veteran-owned businesses (SDVOB)

Specific ACDBE/DBE goals for federally assisted contracts are set in accordance with federal regulations.

M/WBE

SBE

SDVOB

AC/DBE

Certification: Resources

• PA Website: www.panynj.gov/supplierdiversity

• Certification and to search for certified firms: https://panynj.diversitysoftware.com

• Certification Hotline: 212-435-7888

• Cert Help email: certhelp@panynj.gov

• We encourage firms seeking certification to also register with Procurement at www.paprocure.com to be considered for business opportunities and to fill out the PSFQ to participate in A&E business opportunities.

http://www.panynj.gov/supplierdiversity https://panynj.diversitysoftware.com/ mailto:CertHelp@panynj.gov http://www.paprocure.com/

SCOPE OF SERVICE HIGHLIGHTS

Rebecca Mojica, Audit Manager

Scope of Service Highlights The services of the Consultant shall generally consist of providing full-time internal audit staff on a continuous and long-term basis. Specifically, audits shall generally consist of, but not be limited to the review of the Authority’s construction and consultant contracts for services performed at Authority facilities, including but not limited to the World Trade Center site, the airports, bridges and tunnels, ports and the Port Authority Trans-Hudson Corporation (PATH). The audits shall be financial and compliance in nature and may involve but not be limited to the following:

• operational components.

• verifying contractor billings submitted to the Authority against the Engineering Department’s field records, the contractor’s/consultant’s books and records, and the terms of the contract(s).

• reviewing Authority business processes, systems and operations, as well as the business and accounting records of third parties that conduct business with the Authority.

• reviewing the construction contracts’ extra work and net cost components billed on a time and material basis, burden/overhead rates of firms and other reviews arising out of the major capital infrastructure projects currently underway.

The audits shall take place at contractor offices, Authority facilities or the Audit Department offices located at the Journal Square Transportation Center in Jersey City, New Jersey, as determined by the Authority.

INSURANCE REQUIREMENTS

Sabiha Rahman, Sr. Risk Analyst, Risk Financing

Insurance Requirements

• Commercial General Liability Insurance – $2 million per occurrence for bodily injury and property damage liability.

• Automobile Liability Insurance – $2 million per accident for bodily injury and property damage liability covering any auto, owned, non-owned, rented or hired automobiles.

• Workers’ Compensation and Employers Liability Insurance – To statutory limits and in accordance with the requirements of law in the state(s) where work will take place, and Employer’s Liability Insurance of not less than $1 million for bodily injury by accident and $1 million for bodily injury by disease, and at least a $1 million policy limit.

• Professional Liability (Errors and Omissions) – Insurance appropriate to the Consultant’s profession, with limit no less than $2 million per occurrence.

PROCUREMENT PROCESS

Amira Willis, Solicitation Manager

Professional Services Opportunities

• Publicly Advertised RFPs (and Addenda) posted on the Port Authority’s website and Bonfire

• Be sure to utilize the Subcontractors List for potential subconsulting opportunities.

Procurement Process for RFP Solicitations

Solicitation Documents consist of the following:

1. Proposer Requirements

2. Staff Qualifications and Experience

3. Firm Qualifications and Experience

4. Management Approach

5. MBE/WBE/SDVOBs Participation Plan

Procurement Process for RFP Solicitations

Solicitation Documents consist of the following:

6. Conflict of Interest

7. Standard Agreement

8. Attachment A – Scope of Work

9. Attachment B – Terms of Discussion

10.Attachment C – Company Profile

11.Attachment D – Staffing Schedule

Proposer Tips Know the name of the Procurement contact

Ask questions if you have any

Check for any addenda

Demonstrate how you meet the Proposer Requirements

Be as specific as possible when describing what projects your staff and firm have worked on

Include MBE, WBE and SDVOB subconsulting opportunities

After the Proposal Process

• Debrief o Prepare your questions before the debrief o Discuss strengths and weaknesses in your proposal

• Transparency – Awards Page

• Monitor – Upcoming Solicitations (including subconsulting opportunities)

Questions?

Thank You!