406886_SUPPLIER_US.pdf

Solicitation 406886

HRSD Procurement Office Page 1 of 39

Solicitation 406886

Title Request for Proposal (RFP) - Professional External Audit Services - FIN Due Date 05-FEB-2024 14:30:00 Award Date Not Specified

Time Zone Eastern Time

Note A pre-proposal conference will be held via Microsoft Teams on Wednesday, January 31, 2023 at 11:30 a.m. EST. -Call number: (757) 524-3781 / Passcode:

985 838 274#. Additional conferences will not be scheduled. If you would like to receive the Teams Call link, please RSVP via email at taustin@hrsd.com no later than 4:00 p.m. EST on January 30th.

Please submit your response online only:

Organization HRSD Purchaser Austin, Terrel

Phone 757-460-7314 Email taustin@hrsd.com

Responses shall only be accepted online through Hampton Roads Sanitation District 's (HRSD) Oracle ERP system "iSupplier Portal" by the due date and time specified. Late responses and other types of responses shall not be accepted.

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Table of Contents

1 Header Information

1.1 General Information

1.2 Terms

1.3 Requirements

1.4 Attachments

2 Price Schedule

2.1 Line Information

2.2 Line Details

2.2.1 Line 1

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1 Header Information

1.1 General Information

Title Request for Proposal (RFP) - Professional External Audit Services - FIN

Description Contractor shall provide professional external audit services for the HRSD Finance Department in accordance with the attached statement of needs contained herein, terms and conditions. Contract shall be from 6/01/2024 through 5/31/2025 with HRSD reserving the right to renew for four (4) successive one (1) year periods through 5/31/2029

Due Date 05-FEB-2024 14:30:00 Award Date Not Specified Purchaser Austin, Terrel

Email taustin@hrsd.com

Note A pre-proposal conference will be held via Microsoft Teams on Wednesday, January 31, 2023 at 11:30 a.m. EST. -Call number: (757) 524-3781 / Passcode: 985 838 274#.

Additional conferences will not be scheduled. If you would like to receive the Teams Call link, please RSVP via email at taustin@hrsd.com no later than 4:00 p.m. EST on January 30th.

1.2 Terms

Effective Start Date 01-JUN-2024 Effective End Date 31-MAY-2025

Ship-To Address Fin 1434 Air Rail Avenue Virginia Beach, VA 23455 United States

Bill-To Address Accounts Payable

PO BOX 5915

Virginia Beach, VA 23471-0915 United States

Payment Terms Net 30 Carrier Best Way FOB Destination Freight Terms Freight Prepaid

Total Agreement Amount (USD)

Not Specified

1.3 Requirements

Bidders/Offerors Certification By the submission of this online response, the Bidder/Offeror is duly authorized to bind the company and is familiar with all aspects of the bid/proposal and fully meets the requirements found in this solicitation.

Circle one from the response values below:

Yes General Information

Number of year's business has been in operation?

Value Type Numeric Value only Provide your answer below

Number of Employees?

Value Type Numeric Value only Provide your answer below

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General Information

Number of year's experience providing/servicing same or similar goods/services?

Value Type Numeric Value only Provide your answer below

Number of employees of this business who are certified for servicing the equipment referenced in this solicitation?

Value Type Numeric Value only Provide your answer below

Number of service locations for this business?

Value Type Numeric Value only Provide your answer below

Addresses of these service locations if applicable (type here or attach copy of the address list to this online response)

Provide your answer below

Reference - 1 1 - Name of Firm

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Reference - 1

1 - Address

Provide your answer below

1 - Contact Name

Provide your answer below

1 - Title

Provide your answer below

1 - Phone

Provide your answer below

1 - Email

Provide your answer below

1 - Describe the goods and/or services that were provided.

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Reference - 1

1 - State the start and completion date of services provided.

Provide your answer below

Reference - 2 2 - Name of Firm

Provide your answer below

2 - Address

Provide your answer below

2 - Contact Name

Provide your answer below

2 - Title

Provide your answer below

2 - Phone

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Reference - 2

2 - Email

Provide your answer below

2 - Describe the goods and/or services that were provided.

Provide your answer below

2 - State the start and completion date of services provided.

Provide your answer below

Reference - 3 3 - Name of Firm

Provide your answer below

3 - Address

Provide your answer below

3 - Contact Name

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Reference - 3 3 - Phone

Provide your answer below

3 - Email

Provide your answer below

3 - Describe goods and/or services that were provided.

Provide your answer below

3 - State start and completion dates for services provided.

Provide your answer below

Reference - 4 4 - Name of Firm

Provide your answer below

4 - Address

4 - Contact Name

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Reference - 4

Provide your answer below

4 - Title

Provide your answer below

4 - Phone

Provide your answer below

4 - Email

Provide your answer below

4 - Describe goods and/or services that were provided.

Provide your answer below

4 - State the start and completion date of services provided.

Provide your answer below

Proof of Authority to Transact Business in Virginia

Pursuant to Virginia Code 2.2-4311.2, a Bidder/Offeror must provide their State Corporation Commission

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Proof of Authority to Transact Business in Virginia

(SCC) number on the below line otherwise you must state why your firm is not required to have a (SCC) number. Any bidder/offeror described herein that fails to provide the required information shall not receive an award unless a waiver of this requirement is granted by the Procurement Office. If this bid/proposal for goods or services is accepted by HRSD, the undersigned agrees that the requirements of the Code of Virginia Section 2.2-4311.2 have been met. Please complete the following by providing the requested information.

Type No Response Required Please supply your company's Identification Number that has been issued by the State Corporation Commission (SCC) if you do not have one please enter N/A and complete the below questions.

Provide your answer below

Bidder/Offeror is not a corporation, limited liability company, limited partnership, registered limited liability partnership, or business trust.

Circle one from the response values below:

Yes N/A

Bidder/Offeror is an out-of-state business entity that does not regularly and continuously maintain as part of its ordinary and customary business any employees, agents, offices, facilities, or inventories in Virginia(not counting any employees or agents in Virginia who merely solicit orders that require acceptance outside Virginia before they become contracts, and not counting any incidental presence of the Bidder/Offeror in Virginia that is needed in order to assemble, maintain, and repair goods in accordance with the contracts by which such goods were sold and shipped into Virginia from Bidder/Offeror's out-of-state location.

Circle one from the response values below:

Yes N/A

Bidder/Offeror is an out-of-state business entity that is including with this bid/proposal an opinion of legal counsel which accurately and completely discloses the undersigned Bidder's/Offeror's current contracts with Virginia and describes why those contracts do not constitute the transaction of business in Virginia within the meaning of 13.1-757 or other similar provisions in Titles 13.1 or 50 of the Code of Virginia.

Attach opinion to your response for this solicitation.

Circle one from the response values below:

Yes N/A

Bidder/Offeror does not have an Identification Number issued to it by the SCC and such Bidder/Offeror is not required to be authorized to transact business in Virginia by the SCC. Please state the reason(s) or enter N/A if this does not apply to your company.

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Proof of Authority to Transact Business in Virginia

Answer YES if you have not completed any of the foregoing options but currently have pending before the Virginia SCC an application for authority to transact business in the Commonwealth of Virginia and wish to be considered for a waiver to allow you to submit the SCC identification number after the due date for bids/proposals(HRSD reserves the right to determine in its sole discretion whether to allow such waiver).

Circle one from the response values below:

Yes N/A

Provide Legal Name of Company (as listed on W-9)

Provide your answer below

Submittal Requirements Audited Financial Statement attached?

Circle one from the response values below:

Yes No N/A

Certificate of Insurance attached? (Sample copy shall be acceptable with submittal)

Circle one from the response values below:

Yes No N/A

Firm's experience in providing the goods/services described herein attached?

Circle one from the response values below:

Yes No N/A

Names, qualifications and experience of personnel to be assigned to the project attached?

Circle one from the response values below:

Yes No N/A

Resumes of your staff that will be assigned to this project attached?

Circle one from the response values below:

Yes No N/A

Work schedule attached?

Circle one from the response values below:

Yes No N/A

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1.4 Attachments

Name Data Type Description Attachments Short Text Attachments listed in this section are NOT viewable through this PDF. You must log into our ERP system to view these attachments.

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2 Price Schedule

2.1 Line Information

Line Item, Rev / Job

Target Quantity (N/A)

Unit Unit Price Amount Bid Minimum Release Amount

1 For the purposes of the online submittal, one dollar ($1.00) should be submitted on this line item. Please attach your complete proposal per the attached Statement of Needs contained herein. (see Note to Supplier section)

2.2 Line Details

2.2.1 Line 1 For the purposes of the online submittal, one dollar ($1.00) should be submitted on this line item. Please attach your complete proposal per the attached Statement of Needs contained herein. (see Note to Supplier section)

Shopping Category Requisition Use Only NIGP Code

(CURRENCY_COD

E=USD)

Not Specified

Minimum Release Amount (USD)

Not Specified

Estimated Total Amount (USD)

Not Specified

Note Estimates of man hours or cost for services are not to be submitted with Offeror's response. At the discussion stage, Offerors shall be required to discuss nonbinding cost estimates. In order to complete your online submission our system requires a price be entered in the unit price field. For that purpose please submit your price as $1.00 on the line item in our online procurement system.

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Terms and Conditions

Table of Contents

Terms and Conditions

I. PURPOSE

A. Purpose

II. BACKGROUND

A. Background

III. STATEMENT OF NEEDS

A. Specific Areas B. Other Services Required C. Minimum Consultant Qualifications

IV. REPORTING AND DELIVERY REQUIREMENTS

A. Reporting and Delivery Requirements

V. PRE-PROPOSAL CONFERENCE

A. Pre-Proposal Conference

VI. INSTRUCTIONS TO OFFERORS

A. Instructions to Offerors B. Solicitation Inquiries C. Submittal of Responses D. Technical Assistance E. Receipt and Opening of Solicitations

VII. PROPOSAL PREPARATION AND SUBMISSION REQUIREMENTS

A. General Requirements B. Specific Proposal Requirements

VIII. EVALUATION AND AWARD CRITERIA

A. Evaluation Criteria B. Award of Contract

IX. GENERAL TERMS AND CONDITIONS

A. Announcement of Award B. Anti-Discrimination C. Anti-Trust D. Applicable Law and Courts E. Assignment of Contract F. Authorization to Transact Business in Virginia G. Availability of Funds H. Changes I. Clarification of Terms J. Contract Documents K. Debarment Status L. Default M. Discounts N. Disputes O. Drug-Free Workplace P. Ethics in Public Contracting Q. Faith-based Organizations

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R. HRSD Procurement Policy S. Immigration Reform and Control Act of 1986 T. Indemnification U. Informality V. Invoices/Payment W. Mandatory Use of HRSD Form and Terms and Conditions X. Minority Owned Businesses Subcontracting and Reporting Y. Non-Publicity Z. Precedence of Terms AA. Qualifications of Bidders/Offerors AB. Taxes AC. Testing/Inspection AD. Withdrawal or Modification of Responses Prior to Due Date

X. SPECIAL TERMS AND CONDITIONS

A. Audit B. Best and Final Offer C. Cancellation of Contract D. Confidentiality E. Consultant Substitution F. Continuity of Services G. Contract Period H. Contractor Experience I. Definitions J. Expense Reimbursements K. Indirect Costs of Research L. Insurance M. Laws and Regulations N. Prime Contractor Responsibilities O. Proposal Acceptance Period P. Protection of Persons and Property Q. References R. Renewal of Contract S. Termination for Cause T. Termination for Convenience U. Use of Contract by Other Public Bodies V. Work Hours

XI. METHOD OF PAYMENT

A. Method of Payment

XII. PRICING

A. Pricing

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Terms and Conditions

I. PURPOSE

A. Purpose

The purpose of this Request for Proposal, RFP # 406886 is to solicit sealed proposals to establish a contract through competitive negotiations with a qualified firm (the Offeror) to provide audit services for Hampton Roads Sanitation District (HRSD). The auditor will be required to provide opinions on financial statements prepared in accordance with accounting principles generally accepted in the United States of America. Additionally, the auditor may be required to perform: Single Audits, Virginia Department of Environmental Quality reviews, and provide advice on implementing Governmental Accounting Standards Board (GASB) pronouncements.

II. BACKGROUND

A. Background

HRSD is a political subdivision of the Commonwealth of Virginia. HRSD promises to treat wastewater and recover natural resources to protect public health and the environment.

HRSD currently provides wastewater treatment services for 20 counties and cities encompassing nearly 5,000 square miles with a population of about 1.9 million. HRSD owns and operates 16 treatment plants. The eight major plants in Hampton Roads have design capacities ranging in size from 15 to 54 million gallons per day (MGD). Four of the major plants are located south of the James River and the remaining four are north of the James River. The combined capacity of these eight plants is approximately 225 MGD. HRSD's rural treatment plants have a combined capacity of 1.75 MGD. For more information about HRSD, please visit www.hrsd.com.

For the fiscal year ended June 30, 2023, HRSD's revenues were approximately $403 million, operating expenses were approximately $258 million. HRSD has approximately $917 million in long-term indebtedness outstanding and over $2 billion in capital assets.

Relevant financial information about HRSD can be found on HRSD'S Investor Relations website at www.hrsdbonds.com.

Accounting

HRSD maintains its general ledger on an accrual basis of accounting, in accordance with Generally Accepted Accounting Principles, and operates as an enterprise fund.

Accounting Systems http://www.hrsd.com http://www.hrsdbonds.com

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HRSD uses Oracle's E-Business Suite for all accounting, payroll and procurement transactions.

Auditor Independence

The auditor is required to be free of all obligations and connections which may conflict with the interests of

HRSD.

Commission

A board of eight commissioners (the Commission), appointed by the Governor of Virginia, governs HRSD. The Commission appoints the General Manager, who appoints the senior staff. HRSD's operation is accomplished by its employees under the direct supervision of senior staff and the General Manager.

As part of that oversight responsibility, the Commission, has established a Finance Committee to serve as its audit committee. At times, the Offeror will be required to report to the Finance Committee or the Commission at regularly scheduled meetings. Unless otherwise announced, the HRSD Commission meets the morning of the fourth Tuesday of each month, with some holiday exceptions.

III. STATEMENT OF NEEDS

A. Specific Areas

A. Specific Areas:

Auditing Standards –

The auditor shall conduct the audits in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Specifications for Audits of Authorities, Boards, and Commissions, issued by the Auditor of Public Accounts of the Commonwealth of Virginia.

ACFR – HRSD is required to publish its Annual Comprehensive Financial Report (ACFR) 150 days or November 27 from the Fiscal Year end (June 30) to comply with the Senior and Subordinate Trust Agreements.

The Auditor is not required to audit the introductory and statistical sections of HRSD's ACFR, however, the Auditor should review these sections for consistency with the financial section of the ACFR.

Financial Statements - The auditor shall give an opinion on HRSD's general purpose financial statements prepared by staff in accordance with accounting principles generally accepted in the United States of

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America.

The Code of Virginia requires HRSD, as a component unit of the Commonwealth of Virginia, to have all of its accounts and records audited annually by an independent CPA in accordance with the specifications furnished by the Auditor of Public Accounts (APA) of the Commonwealth of Virginia as of June 30 of each year. In addition, each entity must ensure that its auditor responds to APA communications and provide all required information, including independence letters, to the APA within specific timeframes.

Management Letter - The auditor shall provide to HRSD's Commission a management letter on all Material Internal Control Weaknesses at its October Commission meeting. The auditor will also provide to the General Manager suggested internal control improvements or possible system enhancements that came to their attention during the audit.

Pension – HRSD provides defined benefit and hybrid pension plans through the Virginia Retirement System.

Other Post-Employment Benefits (OPEB) – Aside from the pension benefit, HRSD provide three other post-employment benefits: retiree health plan, health insurance credit program, and group life insurance.

Report Preparation - HRSD will be responsible for preparing and printing the (ACFR). The Auditor shall furnish the audit opinion and required compliance reports necessary to produce the ACFR. Any suggested format improvements or modifications should be submitted to HRSD by September 1.

The latest ACFR is available on HRSD's Investor Relations website at www.hrsdbonds.com, under "Reference Documents".

Reporting to the Finance Committee

The Auditor shall ensure that the Finance Committee is informed of each of the following:

• The Offeror's responsibilities.

• Significant changes in accounting principles, including forthcoming pronouncements of the Governmental Accounting Standards Board (GASB). Management judgments and accounting estimates, if questionable. Significant audit adjustments.

• Disagreements with management.

http://www.hrsdbonds.com

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• Management consultation with other accountants.

• Difficulties encountered in performing the audit.

Work Schedule - To facilitate the timely completion of the audit the Offeror shall comply with the following schedule:

• A detailed audit work plan – April 15.

• A list of required prepared-by-client schedules (PBCs) – April 30.

• A list of required system generated reports – April 30.

• A list of confirmation and information request letters to be prepared by HRSD – April

30.

• The Offeror shall complete all interim audit test work in July and provide review comments with respect to the pro forma schedules prepared by HRSD.

• The Offeror shall complete all audit fieldwork no later than October 1.

• The Offeror shall submit drafts of the required reports to HRSD for review in accordance with the dates set forth in the mutually-agreed audit work plan.

• The Offeror shall be prepared to provide a summary of its audit results each October at a Finance Committee meeting. Final opinion letters shall be provided to Commission each year no later than the October Commission meeting.

Conferences and Progress Reporting

At a minimum, the following conferences and meetings shall be held:

• Entrance conferences for the purpose of discussing prior audit problems, the audit work plan, prepared-by-client schedules and the interim work to be performed will be scheduled in March and April. These meetings will also be used to establish an overall liaison for the audit and to make arrangements for workspace and other needs of the Offeror, and they will involve key staff from the Department of Finance, various other departments, and the "other entities."

• Progress reporting during the course of the audit to review the progress of the audit, to resolve accounting, systems and audit issues and to review audit findings that are proposed for inclusion in the reports on internal controls over financial reporting will be scheduled with the following groups:

• The Chief of Accounting of the Department of Finance (Audit Coordinator) (weekly)

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• The HRSD's Finance Committee as agreed upon in the annual Audit Work Plan. A written status report is to be prepared and presented at each meeting.

• The Offeror may be requested to meet with the HRSD Commission and the Finance Committee.

Such meetings may be scheduled in the audit work plan.

• The Offeror shall meet with the Deputy General Manager/CFO to review the draft of all audit reports prior to their finalization and issuance.

• The Offeror shall conduct exit conferences following completion of the audit, but not later than December 15 following the year under audit, with designed staff from the Department of Finance and other parties as appropriate to discuss the results of the fieldwork, review significant findings, and discuss audit process improvements.

Time Constraints

• Certain legal and grantor requirements dictate the reporting timeline that must be met by HRSD.

The following due dates must be met:

• The Auditor of Public Accounts must receive the HRSD's ACFR, the Comparative Report Transmittal Forms, and the agreed-upon procedures reports by November 30.

• The ACFR must be presented to the Commission at its public meeting in October.

• The ACFR, together with the application for the GFOA Certificate of Achievement for Excellence in Financial Reporting Award Program, must be submitted to the GFOA by December 31.

• Any "other entity" financial statements must be filed and presented to their respective boards by the dates designated in the audit work plan.

Required Reports

The Offeror shall:

• Issue a report on the fair presentation of the Basic Financial Statements as presented in the HRSD's ACFR in conformity with Generally Accepted Accounting Principles.

• Be responsible for performing certain limited procedures involving the Management's Discussion and Analysis (MD&A) and Required Supplementary Information (RSI) required by GASB as mandated by Generally Accepted Accounting Auditing Standards (GAAS).

• Issue a report on the fair presentation of the Basic Financial Statements in conformity with GAAP.

• Issue a report on compliance and internal controls which shall include all material instances of

HRSD Page 21 of 39 noncompliance. All nonmaterial instances of noncompliance shall be reported in a separate management letter.

• Issue a separate opinion on the Basic Financial Statements to be used by the Owner as part of its Official Statements in subsequent debt offerings. (As required)

• The Offeror will be required to make an immediate, written report of all irregularities and illegal acts.

Work Paper Retention - The Offeror will be required to retain all work papers five years or until federal audits of applicable grant or loan funds are final, whichever comes later. The Offeror will be required to make working papers available, upon request, to HRSD.

B. Other Services Required

B. Other Services Required:

Additional Services - Occasionally, additional audit or accounting services will be required in addition to those set forth. Compensation for these services will be negotiated at the time of the requested service.

C. Minimum Consultant Qualifications

C. Minimum Consultant Qualifications:

1. Firm's Minimum Experience:

The Offeror must have a minimum of (5) five year's recent experience for which their company has experience in servicing same or similar types of accounts and providing similar type of services requested in this solicitation.

The Offeror must submit a minimum of (4) four recent references with their offer. References furnished must be for similar type of services requested in this solicitation for which their company has provided the services.

2. Qualifications of Key Staff:

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The Offeror shall have prior experience auditing local government, preferably a Virginia locality.

All persons performing services pursuant to the Contract shall be qualified to perform those services and shall hold any license and/or certification required by applicable federal, state, and local laws and regulations.

IV. REPORTING AND DELIVERY REQUIREMENTS

A. Reporting and Delivery Requirements

The auditor shall provide the following items by these dates:

• Suggested format improvements or modifications to the Financial Statements - September 1

• Letter to management and suggested internal controls at the October commission meeting.

• Contractor opinions must be available at least one week prior to issuance of the corresponding audit, agreed upon procedures, or other report.

V. PRE-PROPOSAL CONFERENCE

A. Pre-Proposal Conference

A pre-proposal conference will be held via Microsoft Teams on January 31, 2024 at 11:30 a.m.. The conference call number and passcode are listed as follows:(757) 524-3781 Passcode: 985 838 274#. The purpose of this conference is to allow potential Offerors an opportunity to present questions and obtain clarification relative to any facet of this solicitation.

While attendance at this conference is not a prerequisite to submitting a proposal, Offerors who intend to submit a proposal are encouraged to attend the conference at the specified time and date. HRSD will not reschedule additional pre-proposal conferences.

Have a copy of the solicitation with you. Any changes resulting from this conference will be issued in a written addendum to the solicitation.

The Offeror's online submittal to this solicitation constitutes certification that your company is aware of the optional pre-proposal conference and is aware of the conditions under which the work must be accomplished.

Claims, as a result of failure to attend the optional pre-proposal conference, will not be considered by HRSD.

VI. INSTRUCTIONS TO OFFERORS

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A. Instructions to Offerors

This is an HRSD Request for Proposal solicitation for sealed proposals to establish a contract through competitive negotiations for the requested goods/services. THIS IS NOT AN ORDER.

B. Solicitation Inquiries

Please direct all questions concerning this solicitation to the HRSD Procurement Office Purchaser indicated in the solicitation. Direct contact with HRSD departments, other than the Procurement Office, concerning this solicitation is prohibited. HRSD disclaims any responsibility for documents distributed by other parties. Any changes to this solicitation shall be issued from HRSD's Procurement Office through HRSD's Online Oracle ERP system.

C. Submittal of Responses

HRSD only accepts responses submitted online through HRSD's Online Oracle ERP system. Failure to submit a response through HRSD's Online Oracle ERP system will be rejected by HRSD. It is the responsibility of the Offeror to assure that their response is submitted in HRSD's Online Oracle ERP system prior to the due date and time. All times listed in the HRSD solicitation are Eastern Standard Times. Late responses shall not be accepted.

HRSD shall not be responsible for late or lost responses due to an improper online submittal by Offeror.

D. Technical Assistance

If you experience difficulties logging into your account or using HRSD's Oracle ERP system, please contact the help desk at erphelp@hrsd.com for assistance.

E. Receipt and Opening of Solicitations

Online responses received will be opened at the HRSD Department of Finance Procurement Office, 1434 Air Rail Ave., Virginia Beach, VA 23455 at the time stated in the solicitation. For Request for Quote and Invitation for Bid, Bidders' names and prices will be made public for the information of Bidders and others interested who may be present either in person or by representative. For Request for Proposal, only the Offerors' names shall be made public. The official or agent of HRSD, whose duty it is to open them, will decide when the specified time has arrived. No responsibility will be attached to any official or agent for the premature opening of a response not properly submitted. No decisions relating to an award of a contract shall be made at the solicitation opening.

VII. PROPOSAL PREPARATION AND SUBMISSION REQUIREMENTS

A. General Requirements

1. RFP Response:

In order to be considered for selection, Offerors must submit a response online through HRSD's Oracle ERP mailto:erphelp@hrsd.com

HRSD Page 24 of 39 system no later than the published due date and time. No other distribution of the proposal shall be made by the Offeror. No offer received after the time designated for receipt of offers shall be considered.

2. Proposal Preparation:

a. Proposals shall be submitted online through HRSD's Oracle ERP system by an authorized representative of the Offeror. All information requested must be submitted. Failure to submit all information requested may result in the Procurement Office requiring prompt submission of missing information and/or giving a lower evaluation of the proposal. Proposals which are substantially incomplete or lack key information may be rejected by the Procurement Office. Mandatory requirements are those required by law or regulation or are such that they cannot be waived and are not subject to negotiation.

b. Proposals should be prepared simply and economically, providing a straight forward, concise description of capabilities to satisfy the requirements of the RFP. Emphasis should be placed on completeness and clarity of content.

c. Proposals should be organized in the order in which the requirements are presented in the RFP and should be contained in a single volume. All documentation submitted with the proposal should be contained in that single volume.

d. All pages of the proposal should be numbered. Each paragraph in the proposal should reference the paragraph number of the corresponding section of the RFP. It is also helpful to cite the paragraph number, subletter, and repeat the text of the requirement as it appears in the RFP. If a response covers more than one page, the paragraph number and subletter should be repeated at the top of the next page.

The proposal should contain a table of contents which cross references the RFP requirements.

Information which the Offeror desires to present that does not fall within any of the requirements of the RFP should be inserted at an appropriate place or be attached at the end of the proposal and designated as additional material. Proposals that are not organized in this manner risk elimination from consideration if the evaluators are unable to find where the RFP requirements are specifically addressed.

e. Trade Secrets/Proprietary Information - Ownership of all data, materials and documentation originated and prepared for HRSD pursuant to the RFP shall belong exclusively to HRSD and be subject to public inspection in accordance with the Virginia Freedom of Information Act. Trade secrets or proprietary information submitted by an Offeror shall not be subject to public disclosure under the Virginia Freedom of Information Act; however, the Offeror must invoke the protections, in writing, prior to or upon submission of the data or other materials, and must specifically identify the data or other materials to be protected and state the reasons why protection is necessary. The proprietary or trade secret material submitted must be clearly identified by highlighting specific words, figures, or paragraphs that constitute trade secret or proprietary information. Offerors shall also be required to mark the corresponding pages with the word "confidential" in the upper right hand corner of each page, submit an index with proposals entitled "Trade Secrets/Proprietary Information" referencing all protected page numbers and section numbers, and state reasons why protection is necessary for each item. Index page must be submitted in the front of each Offeror's proposal. The classification of an entire proposal document as proprietary or trade secrets is not acceptable and may result in the rejection of the proposal.

f. All proposal preparation costs incurred are the responsibility of the Offeror.

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B. Specific Proposal Requirements

Proposals should be as thorough and detailed as possible so that HRSD may properly evaluate your capabilities to provide the required goods/services. Offerors are required to submit the following items as a complete proposal:

1. Online Submittal of proposal.

2. Online acknowledgement of HRSD Amendment/s, if applicable.

3. Current Certificate of Insurance showing coverage's required in Section IX.

4. Completed Offeror's Data Sheet, including required references (see attachment).

5. Written narrative statement to include:

a. Experience in providing the goods/services described herein.

b. Names, qualifications and experience of personnel to be assigned to the project.

c. Resumes of staff to be assigned to the project.

6. Specific plans for providing the proposed goods/services including:

a. List of detailed specifications, including the level of effort and labor hours.

b. What, when, and how the services will be offered.

c. Time frame for completion.

7. Nonbinding Cost Estimates:

Estimates of man hours or cost for services are not to be submitted with Offeror's response. At the discussion stage, selected Offerors shall be required to discuss nonbinding cost estimates. In order to complete your online submission, HRSD's Oracle ERP system requires a price entry in the line item field. For that purpose, please submit your price as $1.00 on the line item in our online system.

VIII. EVALUATION AND AWARD CRITERIA

A. Evaluation Criteria

Proposals shall be evaluated by HRSD using the following:

Evaluation Criteria Maximum

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Points Available

1. Understanding of HRSD and its objectives 20

2. Audit team's experience and professional activities. (Qualifications and experience of principals and staff)

3. Prior audit experience of the Offeror and ability to meet deadlines. 15

4. Organization, size and structure of Offeror's firm. 15

5. Offeror's understanding of the scope of work to be performed. 15

6. Offeror's technical experience. 15

TOTAL 100

B. Award of Contract

HRSD shall engage in individual discussions with two or more Offerors deemed fully qualified, responsible and suitable on the basis of initial responses and with emphasis on professional competence, to provide the required services. Repetitive informal interviews shall be permissible. Such Offerors shall be encouraged to elaborate on their qualifications and performance data or staff expertise pertinent to the proposed project, as well as alternative concepts. At the discussion stage, HRSD may discuss nonbinding estimates of total project costs, including, but not limited to, life-cycle costing, and, where appropriate, nonbinding estimates of price for services. Proprietary information from competing Offerors shall not be disclosed to the public or to competitors.

At the conclusion of the informal interviews, on the basis of evaluation factors published in the Request for Proposal and all information developed in the selection process to this point, HRSD shall select, in the order of preference, two or more Offerors whose professional qualifications and proposed services are deemed most meritorious. Negotiations shall then be conducted, beginning with the Offeror ranked first. If a contract satisfactory and advantageous to HRSD can be negotiated at a price considered fair and reasonable, the award shall be made to that Offeror. Otherwise, negotiations with the Offeror ranked first shall be formally terminated and negotiations conducted with the Offeror ranked second, and so on, until such a contract can be negotiated at a fair and reasonable price. Should HRSD determine in writing and in its sole discretion that only one Offeror is fully qualified, or that one Offeror is clearly more highly qualified and suitable than the others under consideration, a contract may be negotiated and awarded to that Offeror.

IX. GENERAL TERMS AND CONDITIONS

A. Announcement of Award

Upon the award or the announcement of the decision to award a contract as a result of this solicitation, results will be available on HRSD'S web site (https://erpprodext.hrsd.com:4443).You must log in to the system to view this information otherwise you can find a list of all awards located on HRSD's website under Procurement Public Notices at https://www.hrsd.com/bids-and-rfps.

B. Anti-Discrimination https://erpprodext.hrsd.com:4443 https://www.hrsd.com/bids-and-rfps

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By submitting your response, Bidders/Offerors certify to HRSD that they will conform to the provisions of the Federal Civil Rights Act of 1964, as amended, as well as the Virginia Fair Employment Contracting Act of 1975, as amended, where applicable, the Virginians With Disabilities Act, the Americans With Disabilities Act and the Virginia Public Procurement Act. If the award is made to a faith-based organization, the organization shall not discriminate against any recipient of goods, services, or disbursements made pursuant to the contract on the basis of the recipient's religion, religious belief, refusal to participate in a religious practice, or on the basis of race, age, color, gender or national origin and shall be subject to the same rules as other organizations that contract with HRSD to account for the use of the funds provided; however, if the faith-based organization segregates HRSD funds into separate accounts, only the accounts and programs funded with HRSD funds shall be subject to audit by HRSD, (Code of Virginia).

In every contract over $10,000 the provisions in 1 and 2 below apply:

1. During the performance of this contract, the Contractor agrees as follows:

a. The Contractor will not discriminate against any employee or applicant for employment because of race, religion, color, sex or national origin, except where religion, sex or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of the Contractor. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this non-discrimination clause.

b. The Contractor, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, will state that such Contractor is an equal opportunity employer.

c. Notices, advertisements and solicitations placed in accordance with federal law, rule or regulation shall be deemed sufficient for the purpose of meeting the requirements of this section.

2. The Contractor will include the provisions of 1. above in every subcontract or purchase order over $10,000, so that the provisions will be binding upon each Subcontractor or Contractor.

C. Anti-Trust

By entering into a contract, the Contractor conveys, sells, assigns, and transfers to HRSD all rights, title and interest in and to all causes of the action it may now have or hereafter acquire under the antitrust laws of the United States and the Commonwealth of Virginia, relating to the particular goods or services purchased or acquired by HRSD under said contract.

D. Applicable Law and Courts

This solicitation and any resulting contract shall be governed in all respects by the laws of the Commonwealth of Virginia and any litigation with respect thereto shall be brought in the courts of the Commonwealth. The Contractor shall comply with applicable federal, state and local laws and regulations.

E. Assignment of Contract

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A contract shall not be assignable by the Contractor in whole or in part without the written consent of HRSD.

F. Authorization to Transact Business in Virginia

By submitting a response to HRSD a contractor organized as a stock or non-stock corporation, limited liability company, business trust, or limited partnership or registered as a registered limited liability partnership shall be authorized to transact business in the Commonwealth as a domestic or foreign business entity if so required by Title 13.1 or Title 50 of the Code of Virginia or as otherwise required by law. Any business entity described above that enters into a contract with a public body pursuant to the Virginia Public Procurement Act shall not allow its existence to lapse or its certificate of authority or registration to transact business in the Commonwealth, if so required under Title 13.1 or Title 50, to be revoked or cancelled at any time during the term of the contract. A public body may void any contract with a business entity if the business entity fails to remain in compliance with the provisions of this section.

G. Availability of Funds

It is understood and agreed between the parties herein that HRSD shall be bound hereunder only to the extent of the funds available or which may hereafter become available for the purpose of this agreement.

H. Changes

By written notice to the Contractor, HRSD may from time to time make changes, within the general scope of the contract, in the goods or services to be provided by the Contractor, the method of shipment or packing, or the place of delivery or the place of performance. The Contractor shall promptly comply with the notice and shall make all subsequent shipments of goods and performance of services in conformity to the notice. If any such change causes an increase or decrease in the Contractor's cost of performance or the time required for performance, an equitable adjustment in the contract price and/or the time allowed for performance of the contract shall be negotiated and the contract modified accordingly by written supplemental agreement. Any claim by the Contractor for adjustment under this clause must be asserted by written notice to the purchasing agent within (30) days from the date of receipt by the Contractor of the change notice. If the parties fail to agree to an adjustment, the question of an increase or decrease in the contract price or time allowed for performance shall be resolved in accordance with the procedures for resolving disputes provided by the disputes clause of the contract. Neither the existence of a claim, a dispute, submission of the dispute to HRSD resolution process, litigation or any portion of this provision or changes shall excuse the Contractor from promptly proceeding with performance of the contract as changed by the notice.

I. Clarification of Terms

It shall be the responsibility of the Bidders/Offerors to examine the entire contents of the solicitation. If any prospective Bidder/Offeror has questions about the specifications or other solicitation documents, the prospective Bidder/Offeror should contact the Procurement Official whose name appears on the face of the solicitation prior to the due date. Any revisions to the solicitation will be made only by an amendment issued by the Procurement Office.

J. Contract Documents

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The Contract entered into by the parties shall consist of the online submittal by the Contractor through HRSD's online procurement system, HRSD's Purchase Order, General and Special Terms and Conditions, the Specifications with drawings, if any, including all modifications thereof, all of which shall be referred to collectively as the Contract Documents.

Bidders are advised that HRSD does not sign standard contract forms which may be used by the Bidder. Your online submittal certifies the Bidder is an agent or officer authorized to bind the company to the terms and conditions of this solicitation.

K. Debarment Status

By submitting their response, Bidders/Offerors certify that they are not currently debarred by HRSD or the Commonwealth of Virginia from submitting responses on contracts for the type of goods and/or services covered by this solicitation, nor are they an agent of any person or entity that is currently so debarred.

L. Default

In case of failure to deliver goods or services in accordance with the contract terms and conditions, HRSD, after due oral and written notice, may procure them from other sources and hold the Contractor responsible for any resulting additional purchase and administrative costs. This remedy shall be in addition to any other remedies, which HRSD may have.

M. Discounts

Payment discounts shall be considered at time of payment but will not be an award factor.

N. Disputes

Contractual claims, whether for money or other relief, shall be submitted in writing to the issuing procurement office no later than sixty (60) days after final payment; however, written notice of the contractor's intention to file such claim shall have been given at the time of the occurrence of beginning of the work upon which the claim is based. Nothing herein shall preclude a contractor from requiring submission of an invoice for final payment within a certain time after completion and acceptance of the work or acceptance of the goods. Pending claims shall not delay payment of amounts agreed due in the final payments (Code of Virginia). A contractor may not institute legal action prior to receipt of the procurement office's decision on the claim, unless that office fails to render such decision within thirty (30) days. The decision of the procurement office shall be final and conclusive unless the contractor, within six months of the date of the final decision on the claim, institutes legal action as provided in the Code of Virginia.

O. Drug-Free Workplace

During the performance of this contract, the contractor agrees to (i) provide a drug-free workplace for the contractor's employees; (ii) post in conspicuous places, available to employees and applicants for employment, a

HRSD Page 30 of 39 statement notifying employees that the unlawful manufacture, sale, distribution, dispensation, possession, or use of a controlled substance or marijuana is prohibited in the contractor's workplace and specifying the actions that will be taken against employees for violations of such prohibition; (iii) state in all solicitations or advertisements for employees placed by or on behalf of the contractor that the contractor maintains a drug-free workplace; and

(iv) include the provisions of the foregoing clauses in every subcontract or purchase order of over $10,000, so that the provisions will be binding upon each subcontractor or contractor.

P. Ethics in Public Contracting

By submitting their response, all Bidders/Offerors certify that their responses are made without collusion or fraud and that they have not offered or received any kickbacks or inducement from any other Bidder/Offeror, supplier, manufacturer or subcontractor in connection with their solicitation/proposal, and that they have not conferred on any public employee having official responsibility for this procurement transaction any payment, loan, subscription, advance, deposit of money, services or anything of more than nominal value, present or promised unless consideration of substantially equal or greater value was exchanged.

Q. Faith-based Organizations

HRSD does not and shall not discriminate against faith-based organizations.

R. HRSD Procurement Policy

This solicitation is subject to the provisions of HRSD's Procurement Policy, and any revisions thereto, which are hereby incorporated into this contract in their entirety. The policy is available at https://www.hrsd.com/sites/default/files/assets/Documents/Adopted%20Policies/ProcurementPolicy2020.pdf.

S. Immigration Reform and Control Act of 1986

By submitting their response, Bidders/Offerors certify that they do not and will not during the performance of this contract employ illegal alien workers or otherwise violate the provisions of the federal Immigration Reform and Control Act of 1986.

T. Indemnification

Contractor agrees to indemnify, defend and hold harmless HRSD, its officers, agents, and employees from any claims, damages and actions of any kind or nature, whether at law or in equity, arising from or caused by the use of any materials, goods, or equipment of any kind or nature furnished by the Contractor/any services of any kind or nature furnished by the Contractor, provided that such liability is not attributable to the sole negligence of the using agency or to failure of the using agency to use the materials, goods, or equipment in the manner already and permanently described by the Contractor on the materials, goods, or equipment delivered.

U. Informality https://www.hrsd.com/sites/default/files/assets/Documents/Adopted%20Policies/ProcurementPolicy2020.pdf

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HRSD reserves the right to waive informalities. Informality is a minor defect or variation of a solicitation or proposal from the exact requirements of the request, which does not affect the price, quality, and quantity or delivery schedule for the goods, services or construction being procured. The Chief of Procurement's decision shall be final.

V. Invoices/Payment

1. To Prime Contractor:

a. Invoices for items ordered, delivered and accepted shall be submitted by the Contractor directly to HRSD per the "Method of Payment" section of the solicitation.