July 13, 2026

Hello:

Enclosed please find attached Addendum No. One (1) for SEPTA RFP No. 26-00155-ACAC, Compensation Consulting Services.

Addendum No. 1 must be acknowledged by signing the Addendum Acknowledgement Form and submitting it with your Technical Proposal.

This Addendum provides answers to some of the questions received. The responses to the remaining questions will be provided under a separate Addendum.

The due date for the submission of Proposals remains unchanged as Thursday, July 23rd, 2026 by 2:00PM.

Any inquiries regarding this Addendum must be directed to Carolyn Cotton of the Procurement and Supply Chain Management Department at (215) 580-7599 or cCotton@SEPTA.org.

Thank you for your interest in SEPTA.

Sincerely, Carolyn Cotton

Carolyn Cotton Senior Contract Administrator Procurement & Supply Chain Management mailto:cCotton@SEPTA.org

Addendum No. 1, 26-00155-ACAC

Page 1 of 9 July 13, 2026

SEPTA’s RFP No. 26‐00155‐ACAC Compensation Consulting Services

This addendum to the Contract Documents is hereby part of the same and is incorporated in full as part of the Project. Proposer shall acknowledge Addendum No. 1 by completing the lines below, and returning this Addendum Acknowledgement Form with your Technical Proposal.

FIRM NAME (typed or printed) ______________________________

AUTHORIZED SIGNATURE _______________________________

TITLE _________________________________

NAME (typed or printed) ___________________________________

DATE_____________________

This Addendum includes:

A. General

The due date for the submission of Proposals remains unchanged as Thursday, July 23rd, 2026 by 2:00PM.

This Addendum provides answers to some of the questions received. The responses to the remaining questions will be provided under a separate Addendum.

B. Questions and Answers (65)

Q1: Is SEPTA requesting a custom compensation survey of specific peer organizations? Or would SEPTA like the awarded consultant to use market data from a database of compensation data?

A1: SEPTA desires ongoing access to market data through reputable salary surveys for jobs pertinent to SEPTA. SEPTA will consider a custom survey of peer organizations.

Q2: Can SEPTA accommodate virtual meeting and presentations? Are there any meetings/presentations that SEPTA would request to be in person?

A2: SEPTA can accommodate virtual meetings. The selected proposer will be expected to

Page 2 of 9 July 13, 2026 attend on-site meetings when requested (including but not limited to project kickoff meeting and closing meeting).

Q3: When does SEPTA expect the project to begin?

A3: SEPTA is anticipating this RFP to go to our September 2026 Board, with a Notice to

Proceed and Purchase Order to be issued in October 2026.

Q4: To what extent are union-represented classifications expected to be included in job architecture redesign?

A4: To identify potential career paths.

Q5: Will all 723 classifications be included in the review, or only SAM positions?

A5: All 723 will be included in the job description review. SAM job descriptions will be foundational for compensation program design.

Q6: Of the 800 job descriptions that are currently in scope, can you reconfirm that all 800 job descriptions need to be rewritten for this project?

A6: All job descriptions are subject to revision.

Q7: To what degree does the consultant need to do an FLSA review for all 800 job descriptions?

A7: To make recommendations regarding exempt/non-exempt designation for SAM job classifications.

Q8: How many unique jobs are in scope for benchmarking? Is it based on the 723 classifications or 800 job descriptions?

A8: The more realistic number is 723.

Q9: What level of incumbent analysis is expected (all employees, all SAM employees, or a subset)?

A9: The incumbent analysis will be focused on SAM jobs, since non-SAM jobs’ pay rates are subject to collective bargaining.

Q10: Has SEPTA identified preferred benchmark organizations or labor markets? If so, is the expectation be for the vendor to conduct a customized survey of peers or would third party published compensation surveys from the labor market you compete for talent with suffice?

A10: From a geographic perspective, the Greater Philadelphia metro are (i.e., Delaware Valley).

Understanding pay levels for peer public transit agencies/passenger railroad in major metropolitan areas is desired.

Q11: Does SEPTA expect multiple compensation structure alternatives or one recommended design?

A11: SEPTA would like options to consider.

Q12: What level of implementation support and rollout assistance is expected post-design?

A12: To be determined based on what is adopted.

Page 3 of 9 July 13, 2026

Q13: Will future ERP requirements need to be reflected in project deliverables? Are there other initiatives that are happening concurrently we should be aware of?

A13: Undetermined at this time.

Q14: Does SEPTA currently utilize a job evaluation system to maintain internal equity? If not, is

SEPTA interested in implementing one?

A14: An internal equity strategy needs to be developed and is integral to this project.

Q15: Does SEPTA want the consultant to include both public and private sector data for comparison in the market survey? Private sector companies rarely respond to custom surveys, so our company utilizes reputable published sources to represent the private sector.

Would that approach be acceptable to SEPTA?

A15: SEPTA’s peer group is public sector transit agencies/passenger railroads. However, for other jobs, mainly SAM functions, local market data (public and private) is desired for jobs that are common to SEPTA and other employers.

Q16: While reviewing the RFP, we noted that any modifications to SEPTA’s contract must be submitted during the Q&A period. Because our Legal Department requires prior notice to review contracts, would SEPTA allow us to submit any contract exceptions with our proposal instead?

A16: Yes.

Q17: Has SEPTA established a budget for this project? If so, will that amount be shared with bidders?

A17: That information is not pertinent to submit a proposal.

Q18: We noticed that the RFP requests both hard copies and a thumb drive for submission. As part of our company’s commitment to sustainability and reducing our carbon footprint, we wanted to ask if SEPTA would consider accepting email-only submissions instead.

A18: SEPTA requires proposals to be submitted as requested.

Q19: Will you accept scanned signatures in lieu of original ink?

A19: Yes.

Q20: To what extent has SEPTA socialized and aligned stakeholders to this initiative?

A20: This has not been significantly been socialized. That process will be part of the stakeholder engagement expectations for project implementation.

Q21: How aligned are senior leaders on the “case for change”? Are there competing narratives we should be aware of?

A21: No competing narratives. Senior leaders are aligned with this request for proposals.

Q22: Are there any other major initiatives happening at the same time that will compete for attention?

A22: None identified.

Page 4 of 9 July 13, 2026

Q23: Please describe current communication methods: email, online portal, video trainings, etc.

A23: SEPTA has access and employs multiple modes of communication, including those listed above.

Q24: How many senior leadership and stakeholder interviews do you expect the vendor to conduct?

A24: Undefined at this time.

Q25: Do you have any survey or other data that will provide insights into employee/ audience segments regarding communication preferences, information needs, etc.?

A25: No.

Q26: How many languages are spoken by employees? Do you expect translation services to be required and included in the response to the RFP?

A26: Translation services are not anticipated.

Q27: Has SEPTA conducted prior major HR or benefits changes with large-scale communication campaigns? What worked well or did not?

A27: Question not pertinent for a proposal. Can discuss with selected vendor after notice to proceed.

Q28: Could you please confirm whether you will be providing the certification template regarding lobbying? Item K under Section IV, General Requirements, indicates that it is required; however, Attachment 5 in the RFP is blank.

A28: Lobbying is not applicable to this RFP.

Q29: Attachment 6. Disadvantaged Business Enterprise (DBE) Requirements does not appear to be applicable to our organization. Could you please confirm whether we should still submit the form, indicating "Not Applicable"?

A29: Please sign the form and write “N/A” at the top.

Q30: What level of involvement union representative(s) will be part of this engagement?

A30: Undetermined.

Q31: Are vendors expected to engage and solicit input from union representatives throughout the process?

A31: Undetermined.

Q32: Are there any major initiatives (e.g., HRIS transformation) that could impact or delay this engagement for the next 2 years?

A32: Nothing anticipated.

Q33: Are clients' references required as part of the submission? If yes, please indicate the number of references.

A33: Yes. There is a minimum of two references of public agency clients; public transit/passenger railroad are preferable.

Page 5 of 9 July 13, 2026

Q34: SEPTA's submission instructions require electronic copies on a flash drive. Could SEPTA please confirm whether password-protected or encrypted PDF files are acceptable as part of the submission? If so, please advise the preferred method for transmitting the password to

SEPTA.

A34: Either are acceptable. If password-protected, include the password in your submission.

Q35: Has SEPTA informed legal counsel that this project will include FLSA analysis? Are there any current, pending, threatened or recently resolved FLSA or state wage-and-hour claims, investigation, audits or litigation involving employee classification, overtime eligibility, or wage-payment practices?

A35: SEPTA has, to date, not engaged counsel regarding any FLSA analysis. There are no legal actions know to be active or pending.

Q36: How robust and current are SEPTA's current job descriptions? What do you see as the shortcomings of current descriptions?

A36: SEPTA’s job descriptions exist but the format and content of many need to be updated to current standards.

Q37: The RFP references stakeholder interviews for job description updates where gaps are identified. Would SEPTA be amenable to an approach in which draft job descriptions are first developed in alignment with the job architecture and external market, and stakeholder interviews are used primarily to validate and refine draft content, rather than serving as the primary input for initial content development? We have found this approach can help improve consistency and efficiency across a large job inventory and better ensure final job descriptions accurately reflect business requirements.

A37: SEPTA is amendable.

Q38: The RFP references "career pathways within and across job families". What is SEPTA envisioning with regard to career pathways? For example, should career pathways be identified for every function or should they be illustrative and targeted to the most common movement across job families? Should career pathways be informed based on identified skills overlap, typical external market movements, and/or something else?

A38: The focus would be targeted to the most common movement across job families. SEPTA is open to advice on other designs.

Q39: Are there existing compensation survey sources that SEPTA utilizes for pay decision making?

A39: Yes.

Q40: The RFP references market analysis and "benchmarking". Does SEPTA envision any market benchmarking being performed at the individual job classification level, as opposed to a compensation structure approach that aligns ranges job architecture (i.e., job level and job family-based salary ranges)?

A40: SEPTA is amenable to different approaches for the future state.

Page 6 of 9 July 13, 2026

Q41: The RFP references evaluating SEPTA's benefits programs. Can you clarify the expected scope and deliverables of this review? For example, is SEPTA seeking a high-level assessment of total rewards competitiveness, or a more detailed evaluation of benefit plan design, cost-sharing, and market positioning? Should we plan to provide benefits-related recommendations regarding benefits levels of plan design?

A41: SEPTA seeking a high-level assessment of total rewards competitiveness.

Q42: To the extent that benefits should be included in this assessment, should this include health

& welfare benefits, retirement benefits, or others? Are there certain benefits programs that should be prioritized for review? Should any benefits assessment include both CBA and SAM populations or just certain workforce segments?

A42: SEPTA seeking a high-level assessment of total rewards competitiveness.

Q43: What are the primary business issues you are trying to solve through this work? Are there other related initiatives or projects within the organization that you expect this project will support?

A43: To be discussed with vendor after selection.

Q44: Can you clarify whether collectively bargained/union employees should be considered in-scope, out-of-scope, or partially in-scope for each of the following requested services?

Job description review job architecture design Market analysis & benchmarking Compensation structure design Incumbent review and recommendations for adjustments

A44a: In scope A44b: in scope A44c: In scope A44d: Out of scope A44e: Out of scope

Q45: Are you able to share information on the expected SEPTA internal project team structure for both on-going work and approvals (e.g., core team, steering committee, executive sponsors)?

A45: Too premature to answer.

Q46: Are there key expected milestones within the suggested two-year timeline that we should be aware of for project planning purposes? Are there timeline interdependencies with other projects or initiatives?

A46: It is expected that selected vendor will recommend timeline. No interdependencies have been identified.

Q47: Does SEPTA prefer onsite vs. virtual meetings?

A47: Can be both. Major meetings are preferable onsite.

Page 7 of 9 July 13, 2026

Q48: Are current state org charts, job codes, grades, salary ranges, pay policies, agreements, census data, existing job descriptions and other related workforce compensation and employee data generally readily available?

A48: Yes.

Q49: Are there expected data quality issues that may impact data gathering, timing, or project planning?

A49: No.

Q50: Do you expect all current job classifications to be in scope for the job description review?

A50: Yes.

Q51: Can you share information on the process currently used to categorize jobs? Is grade alignment informed by set criteria, market analyze, or some other process?

A51: To be discussed with selected vendor.

Q52: Do you currently have a rewards philosophy?

A52: Yes.

Q53: How do you currently define the market for purposes of pay and benefits competitiveness?

Does it differ by segment of employee population?

A53: Mainly geographic.

Q54: Do you currently market price jobs against any market survey sources? Do you currently participate and/or purchase any compensation surveys, and if so which ones?

A54: SEPTA is currently working with Payscale.

Q55: Do you have preferred organizations or peer groups you expect to see included?

A55: Peer group = public transit agencies/passenger railroads in major metropolitan areas in addition to geographic labor market.

Q56: For benefits analysis, would you expect there to be multiple peer groups utilized (e.g., regional municipalities and transit organizations) or one broader peer group representative of both types of organizations?

A56: Primary review should be public government agencies (i.e., state & local) and transit agencies/passenger railroads.

Q57: Which benefits programs would you expect to be included as part of the market analysis?

A57: SEPTA would like an assessment of its benefits program as component of its overall total rewards program.

Q58: Do benefit plan designs vary by employee classification today?

A58: Retirement plans only.

Q59: Which specific leadership levels, employee groups, union representatives, and/or board members need to be engaged, and at which points of the project?

A59: To be determined and seeking the advice of the selected vendor.

Page 8 of 9 July 13, 2026

Q60: Do you anticipate needing change management and communications during the project (in-project socialization), to explain the need for the project, milestones, outcomes, etc. to key stakeholder groups?

Q60a: If so, how many unique stakeholder groups would need to be engaged during the project?

(E.g., senior leadership, board members, union leaders, HR, managers, employees, etc.)

A60: Yes.

A60a: To be defined.

Q61: Do you anticipate needing change management and communications support to activate the project rollout to key stakeholder groups?

Q61a: If so, would this only include communications to leadership stakeholder groups, or would this also include rollout/activation to employee stakeholder groups (i.e., creating an employee-facing campaign to explain the new job architecture and approach to compensation).

A61: Yes.

A61a: To be defined.

Q62: Who are the stakeholders you expect to be engaged for focus groups (leaders, managers, staff members)? Would you be open to virtual digital focus groups to gather input and feedback?

A62: To be determined. Virtual formats may work for some groups, but not all.

Q63: Are you open to stakeholder interviews to gather feedback on current practices and inform design?

A63: Yes.

Q64: Do you currently conduct any employee pulsing or engagement surveys? If so, would you be able to share recent findings with selected partner?

A64: None have been conducted recently that would be relevant.

Q65: Beyond communication strategy/planning, do you expect selected partners to provide support in drafting communications? Or would you expect communications content creation to be completed by SEPTA's internal communications team?

A65: SEPTA is open to suggestions.