4-RFP.pdf

REV. 12-2024

Request for Proposals for

ANNUAL AUDIT SERVICES

Issue Date: March 18, 2026

DUE DATE: APRIL 14, 2026

Time: 12:00 PM

Location: NJHMFA

New Jersey Housing and Mortgage Finance Agency 637 South Clinton Avenue, P.O. Box 18550

Trenton, New Jersey 08650-2085

NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY

REQUEST FOR PROPOSALS

FOR

ANNUAL AUDIT SERVICES

TABLE OF CONTENTS

1.0 INFORMATION FOR BIDDERS

2.0 DEFINITIONS

3.0 SCOPE OF SERVICES

4.0 INSURANCE

5.0 SPECIFIC SUBMISSION REQUIREMENTS

6.0 ADDITIONAL INFORMATION FOR BIDDERS

7.0 PROJECT TERM AND TERMINATION

8.0 CONFLICTS OF INTEREST

9.0 BID SECURITY AND BONDING REQUIREMENTS

10.0 PRICE AND PAYMENT

11.0 APPLICABLE LAW

12.0 MISCELLANEOUS

Appendix 1 – HMFA Standard Contract

Appendix 2 – HMFA Summary Contract Addendum

Appendix 3 – Information & Instructions for completing the “Two-Year Vendor Certification and Disclosure of Political Contributions” Form

Appendix 4 – Sample Audit Report

Appendix 5 – Agreed-upon Procedures Letter

Exhibits A through H

REQUEST FOR PROPOSALS

FOR

ANNUAL AUDIT SERVICES

1.0 INFORMATION FOR BIDDERS

1.1 Background

The New Jersey Housing and Mortgage Finance Agency (hereinafter referred to as the “Agency” or “NJHMFA”) is an independent state agency, whose primary mission is to provide funding for affordable home ownership and housing opportunities for New Jersey residents. The Agency is a strong, unified advocate for housing production, financing and improvement. It accomplishes its mission by responding to the needs of its residents by implementing creative programs and establishing alliances that fund affordable home mortgages for first-time home buyers; promoting construction and rehabilitation of rental housing; encouraging mixed-income, owner-occupied housing growth as a means to stabilize neighborhoods; advancing the growth and development of municipalities; contributing to the quality of life of older adults, the disabled and those with special housing needs; and formulating partnerships to foster the economic development of New Jersey and the personal development of its residents.

1.2 Purpose and Intent

The Agency is seeking proposals for the appointment of an independent certified public accounting firm for the purpose of furnishing a general independent audit and related services to the Agency. The Agency is established under, but is not a part of, the Department of Community Affairs and is constituted as a body politic and corporate and an instrumentality of the State exercising public and essential governmental functions. The Agency’s fiscal year begins January 1 and ends December 31. Vendor selection will be made by the Board Members of the Agency based upon its determination as to which firm is most suitable to meet the needs of the Agency, for accounting and related services. This Request for Proposals (“RFP”) is being issued in accordance with the requirements for independent auditing services as set forth in Executive Order No. 122 (McGreevey 2004) and Executive Order No. 37 (Corzine 2006).

The Agency conducts two major activities:

A. The Multi-Family Housing program primarily involves the issuance of taxable and tax-exempt bonds for the purpose of providing construction and/or permanent loans for the new construction or rehabilitation of multi-family rental housing.

B. The Single-Family Program entails the issuance of tax-exempt and potentially taxable mortgage revenue bonds for the purpose of providing first mortgage loans through self-origination and through various lending institutions, to qualified individuals for the purpose of purchasing their principal place of residence and pooling of qualified mortgage loans and creating mortgage backed securities to be sold via the Government National Mortgage Association (GNMA/Ginnie Mae) and Federal Home Loan Mortgage Corporation (FHLMC).

In addition, the Agency has established a subsidiary corporation to conduct business in specialized areas of real estate. This is as follows:

A Better Camden Corporation (“ABC Corporation”). The Agency Board established this corporation on April 17, 1997. In accordance with the corporation’s by-laws, the books and records of the corporation must be audited annually by a Certified Public Accountant. Such audits will furnish the Agency with statements of income and disbursements of the corporation. The corporation’s fiscal year is the same as the Agency’s. Enclosed is a sample audit report (Appendix 4).

2.0 DEFINITIONS

2.1 General Definitions

Addendum – Written clarification or revision to this RFP issued by the New Jersey Housing and Mortgage Finance Agency.

Agency Program Administrator - Individual responsible for the overall management and administration of the contract.

Bidder – An individual or business entity submitting a bid proposal in response to this RFP.

Contract – This RFP, any Addendum to this RFP, the Bidder’s proposal submitted in response to this RFP, as accepted by the Agency, and the signed Agreement, a copy of which is attached to this RFP in substantially final form as Appendices 1 and 2.

Contractor – The Bidder awarded a Contract resulting from this RFP.

Evaluation Committee – A committee established by the Agency to review and evaluate bid proposals submitted in response to this RFP and to recommend a Contract award.

Firm Fixed Price – A price that is all-inclusive of direct cost and indirect costs, including, but not limited to, direct labor costs, overhead, fee or profit, clerical support, equipment, materials, supplies, managerial (administrative) support, all documents, reports, forms, travel, reproduction and any other costs. No additional fees or costs shall be paid by the Agency unless there is a change in the scope of work.

May – Denotes that which is permissible, not mandatory.

New Jersey Housing and Mortgage Finance Agency (the “Agency” or “NJHMFA”) – The entity that has issued this RFP and will enter into a Contract.

Notice of Intent to Terminate – The notice issued by a Party to the other Party expressing its intention to terminate the Agreement.

Performance and Payment Bonds – The Performance Bond secures the contractor's promise to perform the contract in accordance with its terms and conditions, at the agreed upon price, and within the time allowed. The Payment Bond protects laborers, material suppliers and subcontractors against nonpayment.

Project – The undertaking of services that are the subject of this RFP.

Request for Proposals (“RFP”) – This document which establishes the bidding and Contract requirements and solicits bid proposals to meet the needs of the Agency as identified herein.

Shall or Must – Denotes that which is a mandatory requirement. Failure to meet a mandatory requirement will result in the rejection of a bid proposal as materially non-responsive.

Should – Denotes that which is recommended, not mandatory.

Subtasks – Detailed activities that comprise the actual performance of a task.

Subcontractor – An entity having an arrangement with an Agency Contractor, where the Agency Contractor uses the products and/or services of that entity to fulfill some of its obligations under its Contract, while retaining full responsibility for the performance of all of its [the Contractor's] obligations https://www.lawinsider.com/clause/the-notice https://www.lawinsider.com/clause/by-a-party https://www.lawinsider.com/dictionary/other-party https://www.lawinsider.com/clause/expressing https://www.lawinsider.com/clause/intention https://www.lawinsider.com/clause/terminate https://www.lawinsider.com/clause/the-agreement under the Contract, including payment to the Subcontractor. The Subcontractor has no legal relationship with the Agency, only with the Contractor.

Task – A discrete unit of work to be performed.

Vendor – A supplier of any good or service.

2.2 RFP Specific Definitions

Audit Committee – A committee of the Board which oversees the audit function of the Agency.

Board – The governing body of the Agency.

Evaluation Committee – A committee established by the Board pursuant to Executive Order No. 122 (McGreevey 2004) to review and evaluate bid proposals submitted in response to this RFP and to recommend a contract award to the Audit Committee.

Financing Adjustment Factor (FAF) - FAF funds were made available for loans and grants per Section 1012(a) of the Stewart B. McKinney Homeless Assistance Act of 1988, as amended, which provided 50% of the amounts recaptured from the refinancing of bonds which financed certain projects be used to provide affordable, decent, safe, and sanitary housing for very low-income persons and families.

3.0 SCOPE OF SERVICES

The following scope of work is required by the Agency for each fiscal year.

A. An examination of the financial statements of the Agency in compliance with the Generally Accepted Government Auditing Standards (“GAGAS”) for the fiscal year beginning January 1 and ending December 31 in the form acceptable to meet the requirements of the New Jersey Housing and Mortgage Finance Agency’s enabling legislation. This audit will include breakout by primary government, including General Fund, Single-Family Bond Funds, Multi-Family Bond Funds. Each audit must be completed to meet the deadline established (currently due annually on March 31 or 90 days after fiscal year end) by outside business interest for the filing of such reports (however extensions are usually required for completion as the State GASB 68 Pension Report is usually not available until early-August). Staff assigned to the Agency should have the ability to provide production of all draft financial statements, including Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position, Statement of Cash Flows, and footnotes, utilizing Microsoft Word and/or Excel. Additionally, the final report must be made available to the Agency in an electronic format for inclusion in its annual report and posting on the Agency website.

B. Stand-alone audits of, ABC Corporation, the Single-Family Housing Revenue Bond Resolution, the Multi-Family Revenue Bonds Resolution and any other resolution subsequently adopted by the Agency as required by the Securities Exchange Commission under its continuing disclosure obligations. Please include the current two bond resolution stand-alone audits in your annual cap fee and provide the cost for the ABC Corporation separately as the corporation may be dissolved before the end of this audit contract, and the cost for additional stand-alone audits which may arise from the issuance of additional bond resolutions.

C. A financial and compliance audit of the financial statements applicable for each year ending December 31 for all federal programs such as but not limited to the Interest Reduction Program, Community Development Block Grants, Homeowners Assistance Fund (HAF), Affordable Housing Production Fund (AHPF), Workforce Housing Program (WHP), Urban Preservation Program (UPP) and

Affordable Housing Gap Subsidy Program (AHGSP) in accordance with Generally Accepted Auditing Standards, Government Auditing Standards issued by the Comptroller General of the United States, the Single Audit Act Amendments of 1996, the provisions of Office of Management and Budget Circular A- 133 “Audits of State and Local Governments”, Circular A-87 and audit requirements established by the Department of Housing and Urban Development including the requirement to prepare and submit Standard Form SF – SAC “Data Collection Form for Reporting on Audits of States, Local Governments and Non- Profit Organizations” to the Federal Clearinghouse designated by OMB, along with the appropriate electronic submission specified by the Circular.

D. Supplementary Information and schedules required by Ginnie Mae and Federal Home Loan Mortgage Corp. for our participation in the securitization of mortgages into mortgage-backed securities

(MBS).

E. The Agency is a local participant in the State of New Jersey Health Benefits Plan (SHBP) and has established an Other Post Employment Trust (OPEB) to fund for retirees and participates in the New Jersey Public Employees Retirement System (PERS). Footnotes and schedules must be prepared in accordance with applicable GASB statements.

F. Financial review or supplementary information and schedules which are required by Ginnie Mae, Freddie Mac and Fannie Mae for participation in the securitization of mortgages into mortgage-backed securities (MBS). Please provide a separate fee quote for each.

G. The issuance annually of an agreed upon procedures letter as required by the United States Treasury in connection with any current or future federal program.

H. The issuance of a comfort review letter and/or agreed - upon procedures letter, if required, in connection with the issuance of bonds by the Agency. The aforementioned letters are typically required by the underwriter relating to financial information and other data disclosed in the Agency’s Preliminary Official Statements (“POS”) and Official Statements (“OS”) and generally contain the list of accounting and other procedures which the auditor has undertaken relating to certain Agency financial and other data contained within the POS and OS. Generally, the scope and nature of the required procedures on each bond transaction are determined by the underwriter and their counsel but may include such things as reconciling the Agency’s bonds outstanding, investment balances, and various loan data to the Agency’s internal accounting system or trustee statements. Please provide a fee quote on a per letter basis.

I. The Agency has entered into various qualified hedge derivative transactions, or instruments, in order to mitigate interest rate risk with respect to its variable rate bonds outstanding. Per GASB 53 and GASB 72 the Agency has engaged a consultant (“GASB 53 Consultant”) to determine, as of each fiscal year end, the fair value and effectiveness of each derivative instrument in the Agency’s derivative portfolio.

No later than the 30th day following the end of each fiscal year, the GASB 53 Consultant produces and delivers a report to the Agency that provides those fiscal year end fair values for each derivative instrument, and a second report that evaluates the effectiveness (as defined by GASB 53) of each derivative instrument.

These valuation services are performed annually as of December 31 for inclusion in the footnote disclosures of the audited financial statements. In addition, the disclosure requires discussion on the specific terms of each hedging transaction, counterparty credit risk and ratings confirmations, basis risk, interest rate risk, and termination risk. As of December 31, 2024, the Agency's derivative portfolio consisted of eighteen

(18) interest rate swaps pursuant to which the Agency pays a fixed rate to and receives a variable rate from the respective swap counterparty. The audit firm shall demonstrate their internal derivative valuation expertise and ability to prepare any financial statement footnote disclosures that are required under GASB 53 or GASB 72.

J. A procedures review and issuance of an agreed-upon procedures letter (AUP), conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants evaluating the Financing Adjustment Factor (“FAF”) Savings Disbursement Schedule. The Department of Housing and Urban Development requires this to be done every three (3) years. Please include a separate fee quote for this service.

K. Each audit shall be a full and complete audit of all financial statements, systems and accounting groups of the Agency. This must include the review of the subsidiary corporation and any new areas of business such as servicing or subservicing

L. As part of each annual audit, a management letter to the Members of the Board will also be required.

M. The firm shall make a presentation to the Finance and Audit Subcommittee of the Board prior to the start of the audit and at the conclusion of the audit and the full Board at least once per year and be available to perform additional assignments at the special request of the Executive Director or Board of Directors of the Agency.

N. The Agency expects it may need to consult with the firm for general accounting, tax matters, and special projects. Specify the circumstances, if any, under which you would not consider these services, part of the annual fee cap,

4.0 INSURANCE

4.1 Contractor’s Insurance

The Contractor must assume all risks connected with their work. The Contractor shall comply with all State laws and regulations concerning Workers’ Compensation and shall maintain such insurance as will protect him/her against all claims for damages for personal injury, including death, which may arise during the performance of the Contract, either by him/her or by any Subcontractor or anyone directly or indirectly employed by either of them. Any insurance company providing Workers’ Compensation coverage must be authorized to do business in the State of New Jersey and must have a minimum Financial Strength Rating of A- and with a minimum Financial Size Category of VIII per A. M. Best Company.

The Contractor shall provide the Agency with current Certificates of Insurance for Workers’ Compensation coverages and renewals thereof. Certificates of Renewal shall be provided to the Agency within thirty (30) days of expiration of such insurance.

The Contractor shall further comply with all Insurance Requirements in Section 4.2 of this RFP. Any and all insurance coverages shall be with an insurance company authorized to do business in the State of New Jersey and must have a minimum Financial Strength Rating of A- and with a minimum Financial Size Category of VIII per A. M. Best Company.

The Agency shall be named an ADDITIONAL INSURED on the General Liability and Cyber Liability policies and the Contractor shall provide to the Agency Certificates of Insurance and Policy Endorsements evidencing same. Insurance coverages shall remain in effect until the Contract is completed or the project is accepted by the Agency, and at all times thereafter when the Contractor may be removing or replacing defective work.

The Contractor shall not commence work under the Contract until the Contractor has obtained all insurance as required and such insurance has been approved by the Agency in writing, nor shall the Contractor allow any Subcontractor to commence work, in his/her subcontract until all similar insurance required of the Subcontractor has been so obtained and approved by the Agency in writing.

The Contractor’s insurance shall apply to and provide coverage for all Subcontractors and/or suppliers unless the Contractor forwards to the Agency the Certificate of Insurance for the Subcontractor and/or supplier in which case all insurance applicable to the Subcontractor and/or supplier shall fully comply with all insurance requirements applicable to the Contractor and shall be subject to the approval by the Agency in writing.

The Contractor, or the Subcontractor and/or supplier if applicable, shall give the Agency thirty (30) days written notice of any material change in, cancellation of, or expiration of the policies.

4.2 Insurance Requirements

The following are mandatory minimum insurance requirements, if indicated by an (X) shall be applicable to this Contract and shall provide for, but are not limited to the following coverages.

Certificates of Insurance and applicable Policy Endorsements for those policies required below shall be submitted by the successful Contractor. Such coverages shall be with an insurance company authorized to do business in the State of New Jersey and shall have a minimum Financial Strength Rating of A- and with a minimum Financial Size Category of VIII per A. M. Best Company and shall name the Agency as an Additional Insured, with the exception of Workers’ Compensation Insurance and Professional Liability coverages. A Waiver of Subrogation, in favor of the Agency, shall be included on all policies unless inclusion is not allowed by state law.

ACORD 25 forms “Certificates of Liability Insurance” may be utilized to provide evidence of General Liability, Cyber Liability, Workers’ Compensation coverages and Professional Liability policies as are applicable. All applicable information on the ACORD 25 must be completed and information noted must reflect actual terms and conditions as contained in the underlying policies and be in conformity with the New Jersey Certificates of Insurance Act (N.J.S.A. 17:29A-54 et seq.).

ACORD 25 “Certificates of Liability Insurance” forms are to indicate the Agency as the Certificate Holder as follows:

New Jersey Housing and Mortgage Finance Agency ATTN: Insurance Division PO Box 18550 Trenton, NJ 08650-2085

Copies of Policy Endorsements which effectuate the Additional Insured status of the Agency with respect to General Liability and Cyber Liability Insurance shall be provided.

Worker's Compensation Insurance Workers’ Compensation and Employers’ Liability. This insurance shall be maintained in force during the life of the Contract covering all employees engaged in performance of the Contract pursuant to N.J.S.A.

34:15-12(a) and N.J.A.C. 12:235-1.6. Coverage A limit is Statutory and Coverage B limits are $500,000 per occurrence; $500,000 per employee disease limit and $500,000 policy limit for disease. If the Contractor or Subcontractor is a Sole Proprietor, Partnership or Limited Liability Company, the sole proprietor, partners or members shall be included in the coverage.

General Liability Insurance General Liability Insurance shall be provided with limits of not less than $1,000,000 per occurrence and $2,000,000 General Aggregate and shall be maintained in full force during the life of the Contract. Agency

X to be named as an Additional Insured. Contractual Liability that will respond to the Indemnification Clause in the Contract shall be included.

Umbrella/Excess Liability Insurance Umbrella/Excess Liability Insurance shall be provided with limits of not less than $5,000,000 per occurrence and $5,000,000 General Aggregate and shall be maintained in full force during the life of the Contract. Umbrella/Excess Liability coverages shall be in addition to required General Liability coverages.

Agency to be named as an Additional Insured. Contractual Liability that will respond to the Indemnification Clause in the Contract shall be included.

Automotive Liability Insurance Automotive Liability Insurance covering Contractor for claims arising from owned, hired and non-owned vehicles with limits of not less than $1,000,000 combined single limit shall be maintained in full force during the life of the Contract. Agency to be named as an Additional Insured.

Professional Liability Insurance Errors and Omissions, Professional Liability Insurance and/or Professional Liability Malpractice Insurance to protect the Contractor from any liability arising out of the professional obligations performed, shall be maintained in full force during the life of the Contract. The insurance shall be in the amount of not less than $1,000,000 on an unimpaired basis and with a deductible not exceeding $50,000. If the Contractor has Professional Liability Insurance coverages which exceed the minimum requirements noted herein, those actual policy coverage limits shall apply. In instances where the Contractor has a deductible in excess of $50,000, the Agency may consider acceptance of same subject to the review by the Agency of the most recent Certified Financial Statements of the Contractor to determine the financial wherewithal of the Contractor to fund a deductible in excess of $50,000. If the Contractor has claims-made coverage and subsequently changes carriers during the term of the Contract, Contractor shall obtain from its new carrier an endorsement for retroactive coverage with a Retroactive Date that predates the start of the Contract.

Cyber Liability Insurance Cover Cyber Liability Insurance Cover shall be provided with limits on an unimpaired basis of not less than $1,000,000 per occurrence and $1,000,000 General Aggregate and shall be maintained in full force during the life of the Contract. Agency to be named as an Additional Insured. Coverage shall include data breach, privacy crisis management, multimedia liability, extortion and network security liability. If the Contractor has claims-made coverage and subsequently changes carriers during the term of the Contract, Contractor shall obtain from its new carrier an endorsement for retroactive coverage with a Retroactive Date that predates the start of this Contract.

The New Jersey Housing and Mortgage Finance Agency (NJHMFA) reserves the right to specify alternative insurance requirements in Contract/Agreement language on a case by case basis so long as such alternative insurance requirements are substantively consistent with the intent of NJHMFA’s insurance requirements hereinabove, as NJHMFA shall determine in its sole discretion, and shall not, in any instance, be in conflict with or in violation of any and all applicable State Statutes and/or Administrative Code Regulations.

5.0 SPECIFIC SUBMISSION REQUIREMENTS

5.1 The purpose of the following requirements is to assist the Agency in determining the ability of a Bidder to provide the services described in this RFP. All items listed below must be included with your proposal. Please follow the organization and numbering below when preparing and submitting your proposal. An Evaluation Committee will review all submissions to determine if the RFP requirements are satisfied. Proposals that do not include the information requested may be considered non-responsive.

Minimum Eligibility Criteria:

A minimum of 5 years’ experience related to housing finance agencies of similar size and scope is required, along with your team’s documented experience with complex variable rate tax exempt and taxable bond transactions, derivatives, actuarial valuations, mortgage-backed securities transactions and market, and information technology. Provide a brief statement describing your firm’s skills, abilities, and knowledge as they relate to these minimum eligibility qualifications.

1) Services:

Provide a detailed description of how your firm would deliver the services to be provided by your firm regarding the services required. This description must detail your firm’s proposed approach to the timely performance and completion of all the services requested in the Scope of Work (Section 3.0).

2) Similar Projects:

Detail your experience related to state housing finance agencies and/or other public agencies, or instrumentalities of Federal, State or local government to which your firm has provided services and detail your firm’s experience with complex variable rate, tax-exempt and taxable bond transactions which are synthetically converted to fixed-rate financings through the use of derivatives, and your experience with issuance of mortgage-backed securities and the related valuations and accounting.

Provide references from clients on similar projects include necessary contact information using Exhibit B.

3) Personnel:

Provide a brief background of the partners, managers and other staff and estimate hours of their work for who will be assigned to the Agency’s account. Include their specific experience, title, expertise and hourly rate. Detail individuals’ experience and familiarity with Federal laws, rules and regulations relevant to government audits. One member of the Bidder’s staff shall be identified as having a primary role with this account. Please include the name, address, telephone number and email address of your firm’s primary contact person. In the event that you will add an outside consulting firm to your team to perform certain parts of this proposal please identify the consulting firm and provide detail as to the nature of their involvement and key personnel to be assigned.

4) Fees:

State an annual fee cap for all services inclusive of direct and indirect costs, including but not limited to direct labor costs, overhead, fee or profit, clerical support, materials, supplies, all documents and reports, forms, travel and any other costs other than those identified in Section 3.0 B, 3.0 F, 3.0 G,

3.0 H, 3.0 J, and 3.1N, for each fiscal year from January 1, 2020 through that ending December 31, 2024 (Note: the cost of issuing ABC Corporation audit report, additional stand-alone resolution audits, Freddie Mac or Fannie Mae supplementary information, Homeowner Assistance Fund Program, bond comfort letters and/or agreed upon procedures letters on a per-letter basis, and FAF review should be quoted separately as noted). You should explain how such fees were calculated based on the estimated utilization of partners, managers, seniors, and other staff showing the specific hourly rates for each (see also Section 6.0). Provide a schedule of any fees applicable in accordance with Section 3.0 N. Include your standard form of engagement letter or contract, if any, as an appendix to your proposal.

5) Other:

a. State whether your firm has been subject to any disciplinary action by the New Jersey Society of Public Accountants (“NJSCPA”), American Institute of Certified Public Accountants (“AICPA”), the State of New Jersey, the SEC, or any other regulatory authority within the past five years. Or if to your knowledge there are any investigations pending which could result in disciplinary actions. Also identify any litigation which, in your attorney’s opinion, could adversely affect the ongoing viability of your firm. If the answer to either of these questions is in the affirmative, please furnish details.

b. Provide the results of the firm’s most recent internal quality control peer review.

c. Provide your firm’s senior partner rotation practice.

d. Any other relevant information you wish to have considered during our evaluation process.

e. As noted in Section 1.2, we have enclosed the Agency’s latest annual audit. State in your proposal if your firm has any differences in interpretations regarding any of the Agency’s accounting methods.

IT Requirements:

All work to be done within the United States. Application maintenance, support and data storage must be conducted with the United States. This includes Subcontractors.

Secure file transmission to be used for sensitive information.

5.2 Bid Evaluation Criteria

The following evaluation criteria will be used to evaluate, score and rank bid proposals received in response to this RFP. Proposals shall first be reviewed for completeness and shall then be evaluated, scored and ranked. The criteria and specific weighting are as follows:

6.0 ADDITIONAL INFORMATION FOR BIDDERS

6.1 Bid Opening

All bids must be submitted electronically through the Agency’s Procurement Portal at https://njhmfa.bonfirehub.com by 12:00 PM (EST) on April 14, 2026 to be considered. For sufficient time, it is strongly recommended that the uploading process and finalizing of the bid submission documents begin at least ONE (1) day before the bid opening time. No bids will be received after the bid opening date and time. Only those bids submitted electronically will be accepted.

The Agency reserves the right to reject any and all bids for any reason including but not limited to the Agency’s determination of cost vs. benefit.

The Agency reserves the right to request any and all information which may assist in making a Contract award, including information or documentation related to the bidder’s financial capabilities to perform the Contract. The Agency also reserves the right to request from any bidder a detailed explanation of a bid price.

It is highly improper for a Bidder, after bid opening, to contact a staff member of the Procurement division or Agency to discuss the bids. Should there be any questions concerning the bid(s) submitted, the Bidder will be contacted in writing by a member of the Procurement staff.

The Annual Audit Services bid responses will be publicly opened and read via a virtual meeting at 12:00 PM (EST) on APRIL 14, 2026. To obtain the Bid Opening invitation, please send your request to Agency’s Procurement Portal Procurement at: https://njhmfa.bonfirehub.com

Experience and Qualifications 30 Method of Approach & Project Schedule & Management 20 Cost 45 MBE, WBE, SBE, VOB, DVOB certification 5 https://njhmfa.bonfirehub.com/

6.2 Questions and Inquiries

It is the policy of the Agency to accept questions and inquiries from all potential Bidders receiving this RFP. Questions must be submitted electronically at https://njhmfa.bonfirehub.com through the Agency’s Procurement Portal.

6.3 Question Protocol

Questions should be directly related to the RFP by the Bidder. Questions should be asked in consecutive order, from beginning to end, following the organization of the RFP. Each question should begin by referencing the RFP page number and section number to which it relates.

6.4 Cut-Off Date for Questions and Inquiries

All questions and inquiries relating to this RFP must be received by 2:00 PM (EST) on March 27, 2026.

Questions received after this time will not be acknowledged or considered.

6.5 Revisions to the RFP

Only written modifications issued via Addendum are considered to be alterations to the RFP. Oral comments are not binding. An Addendum will be issued by the Agency for any revisions, modifications, clarifications or alterations to the RFP and will become part of the final Contract resulting from this RFP.

If it becomes necessary to amend the RFP, an Addendum will be issued by the Agency and publicly advertised for a minimum of five (5) calendar days in advance of the bid opening date and time. The bid opening date and time will be extended, if necessary, in order to meet the five (5) day requirement.

6.6 Bidder’s Responsibility

The Bidder assumes sole responsibility for the complete effort required in this RFP. No special consideration will be given after bids are opened because of a Bidder’s failure to be knowledgeable of all the requirements of this RFP. By submitting a bid in response to this RFP, the Bidder shall be deemed to have understood all the requirements of the RFP.

6.7 Cost Liability

The Agency assumes no responsibility and bears no liability for costs incurred by Bidders in the preparation and submittal of the bids in response to this RFP.

6.8 RFP Preparation and Submission Requirements

6.8.1 The proposal must be uploaded, submitted, and finalized prior to the bid opening date and time. We strongly recommend that you allow sufficient time and at least ONE (1) day prior to bid opening date and time to begin the uploading process and to finalize your submission.

Important Notes:

• Uploading large documents may take significant time, depending on the size of the file(s) and your Internet connection speed.

• An email receipt with a unique confirmation number will be sent once you finalize your submission.

• Minimum system requirements: Internet Explorer 11, Microsoft Edge, Google Chrome, or

Mozilla Firefox. JavaScript must be enabled. Browser cookies must be enabled.

Need Help?

New Jersey Housing and Mortgage Finance Agency uses a Bonfire portal for accepting and evaluating proposals digitally. Please contact Bonfire at Support@GoBonfire.com for technical questions related to your submission. You can also visit their help forum at:

https://bonfirehub.zendesk.com/hc mailto:support@gobonfire.com https://bonfirehub.zendesk.com/hc

6.8.2 The proposal submitted in response to this RFP must include the following. Failure to submit or sign any of the required documents may result in disqualification.

1. Specific Requirements as detailed in Section 5.0 of this RFP

2. Mandatory Affirmative Action Language, N.J.S.A. 10:5-31 et seq., N.J.A.C.17:27-1 et seq.

(Exhibit A)

3. References (Exhibit B)

4. Chapter 51/Executive Order 333 (2023) Vendor Certification and Disclosure Forms (See

Appendix 3 to determine applicability)

5. Signed Source Disclosure Form (Exhibit D)

6. Code of Ethics for Vendors (Exhibit E)

7. Ownership Disclosure Form (Exhibit F)

8. Subcontractor Utilization (Exhibit G)

9. Signed Cost Sheet (Exhibit H)

10. Federal Grant Program Rider (Exhibit I) – Applicable for Federal funds only

11. Copy of your New Jersey Business Registration Certificate (It is not required to submit this certificate with the proposal; however, Bidder and any named Subcontractors must submit a copy of their certificate and those of any named Subcontractors prior to entering into a Contract with the Agency).

12. Copy of Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Small Business Enterprise (SBE), Veteran-owned Business (VOB), or Disabled Veteran-owned Business (DVOB) certification if applicable. According to Section 5.2 - Bid Evaluation Criteria the Bidder will receive additional points during the evaluation process for submission of qualifying documents.

6.9 Exceptions to the RFP

Bidders may find instances where they must take exception with non-material requirements or specifications of the RFP. All exceptions shall be clearly identified, and written explanations shall include the scope of the exceptions, the ramifications of the exceptions for the Agency, and a description of the advantages to be gained, or disadvantages to be incurred by the Agency as a result of these exceptions. All exceptions must be included with the electronic submission.

6.10 Rights to Submitted Material

All proposals, responses, inquiries, and/or correspondence relating to or in reference to this RFP, and all reports, charts and other documentation submitted by Bidders shall become the property of the Agency when received.

6.11 Rejection of Bids

The failure of bidders to fulfill all bid requirements may result in rejection of bid. The Agency reserves the right to accept or reject any or all bids or to waive minor elements of non-compliance of any respondent’s bid with regard to the requirements outlined in the RFP.

The following grounds may be utilized for the rejection of the bid:

1. Failure to submit the bid on or before the date and time specified in the RFP document.

2. Failure to sign documents where indicated.

3. Failure to fully complete the Source Disclosure Certification Form (Executive Order 129).

4. Failure to submit an executed fee schedule or cost sheet.

5. Submission of contracts or other documents materially inconsistent with the requirements of the RFP or which represent general disclaimers of the terms thereof.

6. Failure to withdraw proposed exceptions deemed by the Agency to be unacceptable.

7. Failure to provide information or other supplemental materials/requirements specified in the

RFP.

6.12 Bid Errors

No alterations or corrections to the bids are permitted after the bids are opened. If an error is discovered after the bid opening but before Contract award, the Bidder may request that their bid be withdrawn. This request must be submitted in writing to the Procurement Unit, and signed by an officer or authorized representative of the firm. The decision to permit withdrawal of the bid will be at the discretion of the Agency.

The Agency may, under extraordinary circumstances, allow for a bid to be withdrawn after Contract award.

In this case, the Bidder requesting withdrawal will be liable for any administrative expenses incurred as a result of Contract cancellation and subsequent award to another Bidder.

6.13 Indemnification

The Contractor shall assume all risk of and responsibility for and agrees to indemnify, defend, and hold harmless the Agency, its officers, employees and agents from and against any and all claims, demands, suits, actions, recoveries, judgments and costs and expenses which shall relate to, arise from, or result directly or indirectly from the services, work and/or materials supplied under this Contract. This indemnification obligation is not limited by, but is in addition to the insurance obligations contained in this agreement.

The Agency assumes no obligation to indemnify or hold harmless the Contractor, its agents, servants, employees or Subcontractors for any claim that may arise out of its performance of the Contract.

6.14 Negotiation and Best and Final Offer (BAFO)

Following the opening of bid proposals, the Agency reserves the right to negotiate with Bidders, after bid opening, the final terms and conditions of any procurement, including price, the technical services offered, the terms and conditions and/or the price of a proposed Contract award with any Bidder. In response to the Agency’s request to negotiate the Bidder must continue to satisfy all mandatory RFP requirements but may improve upon original technical proposal in any revised technical proposal. However, any revised technical proposal that does not continue to satisfy all mandatory requirements will be rejected as non-responsive and the original technical proposal will be used for any further evaluation purposes, in accordance with the following procedures:

The Agency will conduct an initial review and determine whether and with which Bidder(s) it will negotiate, and will communicate its request to each such Bidder. In response, the Bidder will submit any required revisions to its proposal.

In response to the Agency’s request for a BAFO (“Best and Final Offer”), the Bidder may submit a revised price proposal that is equal to or lower in price than its original submission but must continue to satisfy all mandatory requirements.

After receipt of the results of the negotiation and/or the BAFO(s), the Evaluation Committee will complete its evaluation and recommend to the Agency for award that responsible Bidder(s) whose bid proposal, conforming to this RFP, is most advantageous to the Agency, price and other factors considered.

All contact, records of initial evaluations, any correspondence with Bidders related to any requests for negotiation or BAFO, any revised technical and/or price proposals, the Agency’s evaluation and the award recommendation, will remain confidential until an Intent to Award notice is issued.

6.15 Retainage

If retainage is required on a Contract, the Agency will retain the stated percentage or retainage from each invoice. Payment of retainage will be authorized after satisfactory completion and submission of all services, deliverables or work products by the contractor and acceptance by the Agency of all services, deliverables or work products required by the Contract.

6.16 Bidder’s Status

In the event the Bidder is awarded the Contract, the Bidder/Contractor shall be an independent Contractor of the Agency and not an employee of the Agency.

6.17 Contract Award

Award shall be made with reasonable promptness by notice to the responsible Bidder whose bid, conforming to this RFP, will be most advantageous to the Agency.

The Agency reserves the right to accept or reject any or all bids or to waive minor elements of non-compliance of any respondent’s proposal with regard to the requirements outlined in the RFP.

6.18 Notification of Award

The intended awardee will receive a Notice of Intent to Award letter. This Notice may also contain certain contingency requirements that must be satisfied within seven (7) business days of receipt of the letter.

Failure to comply with all provisions of the Notice of Intent to Award letter may disqualify that Bidder.

6.19 Bidder Right to Protest Award

Except in cases of emergency, Bidders have the right to protest the Agency’s proposed award or notice of intent to award of the Contract. Unless otherwise stated, a Bidder’s protest must be submitted to the Executive Director of the Agency within three (3) business days after receipt of written notification that his bid has not been accepted or that notice of intent to award has been made to another Bidder. Written objections with supporting facts and arguments must be addressed to the Executive Director. The Executive Director will review the protest(s) and make a determination of the validity of the claim within ten (10) business days of receipt of written objection. In case of emergency, as stated in the record, the Agency may waive the protest period.

6.20 Subcontracting or Assignment

The Contract may not be subcontracted or assigned by the Contractor, in whole or in part, without the prior written consent of the Agency. Such consent, if granted, shall not relieve the Contractor of any of their responsibilities under the Contract.

In the event the Bidder proposes to subcontract for the services to be performed under the terms of the Contract award, he/she shall state so in their bid and attach for approval a list of said Subcontractors and an itemization of the products and/or services to be supplied by them. All Contractors and subcontractors must be appropriately identified and registered and at all times comply with N.J.S.A. 52:32-44.

Nothing contained in the specifications shall be construed as creating any contractual relationship between any Subcontractor and the Agency.

6.21 Right to Inspect Facilities and Records

The Agency reserves the right to inspect the Contractor's establishment for the purposes of ascertaining whether the Contractor has the necessary facilities for performing the Contract.

The Agency may also consult with clients of the Bidder during the evaluation of bids. Such consultation is intended to assist the Agency in making a Contract award that is most advantageous to the Agency.

6.22 Confidentiality

In the course of performing services required under this Contract, the Agency may be providing certain information that the Agency may wish to keep confidential. Contractor shall not disclose Confidential Information, as defined below, to any third party unless, prior to any such disclosure, Contractor has obtained the Agency’s written permission.

“Confidential Information” shall mean any information or data of a confidential nature, which is not considered public record as determined by the Agency, including but not limited to: (a) personal information about individuals and entities, including but not limited to social security numbers and financial data; (b) technical, developmental, marketing, sales, operating, performance, cost, know-how, methodologies, business and process information; (c) computer programs and related documentation, including related programming know-how and techniques; and (d) all record-bearing media containing or disclosing such information, know-how, and techniques disclosed under this Contract.

6.23 Ownership of Material

The Agency shall retain all of its rights and interest in and to any and all documents and property, both hard copy and digitally furnished by the Agency to the Contractor, for the purpose of assisting the Contractor in the performance of this Contract. All such items shall be returned immediately to the Agency at the expiration or termination of the work or Contract. None of such documents and/or property shall be disclosed to others or used by the Contractor or permitted by the Contractor to be used by third parties at any time except in the performance of the Contract.

All data, technical information, materials gathered, originated, developed, prepared, used or obtained in the performance of the Contract, including, but not limited to: all reports, plans, charts, literature, brochures, recordings (audio and/or video), analyses, documentation and print-outs, notes and memoranda, written procedures and documents, regardless of state of completion, which are prepared for or are a result of the services required under this Contract shall be and will remain the property of the Agency and shall be delivered to the Agency upon 30 days’ notice by the Agency.

6.24 Proprietary Information/ Public Disclosure

Subsequent to bid opening, all information submitted by Bidders in response to the bid solicitation is considered public information, except as may be exempted from public disclosure by the Open Public Records Act, N.J.S.A. 47:1A-1, et seq., and the common law. If the Agency determines it will request Best and Final Offers, bid proposals will not be made public until the Letter of Intent to Award is issued.

A Bidder may designate specific information as not subject to disclosure when the Bidder has a good faith legal/factual basis for such assertion. The Agency reserves the right to make the determination and will advise the Bidder accordingly. The location in the bid proposal of any such designation should be clearly stated in a cover letter. The Agency will not honor any attempt by a Bidder either to designate its entire bid proposal as proprietary and/or to claim copyright protection for its entire proposal.

6.25 Maintenance of Records: Authority to Audit or Review Contract Records – N.J.A.C. 17:44-

2.2 The Contractor shall maintain all documentation related to products, transactions or under this Contract for a period of five (5) years from the date of final payment. Such records shall be made available to the Agency and the New Jersey Office of the State Comptroller upon request.

7.0 PROJECT TERM AND TERMINATION

7.1 Contract Term

This Contract will be awarded for a three (3) year term. The Contract may be extended for two (2) additional one (1) year terms, upon mutual written consent of both parties. If, in the opinion of the

Agency, it is in the best interest of the Agency to extend any Contract entered into as a result of this Request for Proposal, the Contractor will be so notified of the Agency’s intent at least thirty (30) days prior to the expiration date of the existing Contract. The Contractor shall have fifteen (15) calendar days to respond to the Agency’s request to extend the Contract. If the Contractor agrees to the extension, all terms and conditions of the original Contract, including price, will be applicable.

7.2 Project Suspension and Termination of the Contract Award

A. SUSPENSION OF PROJECT: If, for any reason, the Project for which the Contractor's services were contracted should be suspended, the Agency may suspend this Contract upon seven (7) business days’ written notice to the Contractor. Upon receipt of such notice, unless otherwise directed in writing by the Agency, the Contractor shall immediately discontinue all work under the Contract.