Addendum 2 - Compliance and Auditing Services~1.pdf

Compliance & Auditing Services

B-49921/26 BIC-R-281946

Addendum #2

Response to Offeror’s Questions RFP

1. Section, A, Scope of Work: Can the State clarify whether work orders will be issued on a firm-fixed-price, time-and-materials, labor-hour, or other pricing basis?

Response: All labor hours will be billed/paid using the appropriate rate listed in the contract.

2. Section A, Scop of Work: Can the State provide information regarding the typical lead time between work order issuance and the expected project start date?

Response: The lead time between work order issuance and the anticipated project start date will vary based on the specific requirements and complexity of each assignment.

3. Section B, Current Conditions: Will the selected vendor be expected to issue audit or review reports (GAGAS or non-GAGAS), or will IDOT retain responsibility for issuing final reports related to indirect cost rate reviews, audits, and investigations?

Response: No, the selected vendor will not be expected to issue audit or review reports (GAGAS, or non-GAGAS, it is IDOT’s responsibility to issue the reports.

4. Contract Requirements, F.1.2: Regarding the requirement to conduct audit services at auditee offices and IDOT facilities, would the State consider a hybrid model with a portion of the work being performed virtually? Since COVID, many CPA firms have become adept at performing audits and training their own staff on a purely virtual basis. Excluding firms that can perform well virtually may limit the State in its options to select the vendor best suited to meet the requirements of this solicitation.

Response: The State may approve a hybrid work arrangement for certain assignments, subject to applicable terms and conditions. However, IDOT reserves the right to require vendor staff to perform work on-site at auditee offices or IDOT facilities whenever deemed necessary.

5. Contract Requirements, F.1.3: Regarding the documentation requirement in Section F.1.3, can the State clarify the documentation required to demonstrate compliance? Specifically, would a narrative describing the bidder's experience applying the referenced standards satisfy this requirement?

Response: For these items, the bidder is not required to provide documentation or demonstrate experience. The bidder only needs to indicate that they agree to the requirements.

6. Contract Requirements F.1.3: Is the State's expectation that bidders demonstrate experience with all standards listed in Section F.1.3, or is experience with a subset of the standards acceptable?

Response: Bidders are not required to demonstrate experience related to Section F.1.3. Rather, bidders must indicate their agreement to comply with the contract requirement outlined in Section F.1.3.

7. Mandatory Requirements F.2.1: Regarding the educational requirements in Section F.2.1, can the State please clarify the following:

• Is the requirement intended to be 27 credit hours in accounting coursework rather than 27 semesters in accounting courses?

Response: The word “hours” was inadvertently omitted from Section F.2.1., the Mandatory Requirements with evidence Section of RFP. The requirement is that each proposed team member hold a degree in an accounting-related field with a minimum of 27 semester hours in accounting courses. This Q&A serves as clarification of the requirement for the RFP.

• Does this requirement apply to all proposed personnel, including investigators, IT auditors, data analytics professionals, and subject matter experts, or only personnel performing auditing functions?

Response: This requirement applies to all proposed personnel who may perform work and be billed under the resulting contract, regardless of their specific role or function.

• Are unofficial transcripts acceptable for proposal submission purposes?

Response: A copy or unofficial transcript would be acceptable, however, should the bidder be selected for the award, IDOT reserves the right to request an official transcript with reasonable notice.

• Would degrees or diplomas in accounting or related fields satisfy the requirement where transcripts showing specific credit hours earned are unavailable?

Response: No, not all degree programs have 27 hours of accounting

• Would an active CPA license be accepted in lieu of transcripts, degrees, or diplomas?

Response: A CPA license will be accepted as verification that an individual has completed the minimum hours of accounting.

8. Mandatory Requirements, F.2.1: Will documentation only be required for personnel assigned to work orders or for all personnel proposed in the response?

Response: Documentation is required for all proposed personnel who may bill hours to the contract.

9. Mandatory Requirements, F.2.2: May project experience performed by proposed subcontractors be used to satisfy the requirements of Section F.2.2?

Response: Yes. Project experience performed by proposed subcontractors may be used to satisfy the requirements of Section F.2.2, provided that the experience is relevant to the requirements specified in that section and is clearly identified as subcontractor experience.

10. Mandatory Requirements, F.2.3: May bidders propose a broader pool of qualified personnel and identify specific resources at the work-order level, subject to the State's approval requirements?

Response: Yes

11. Quote Items Tab: The Quote Items tab includes Lead Auditor and Staff Auditor labor categories.

May offerors propose additional labor categories? If so, please clarify whether pricing should be provided for those categories and where such rates should be entered within BidBuy.

Response: No. Additional labor categories were not included as an option in the RFP. Offerors should provide pricing in BidBuy only for the labor categories identified in the solicitation.

Section F.5.5.1. OFFEROR’S PRICING OFFER: Enter pricing in the line items of BidBuy.

12. Quote Items Tab: The Quote Items tab reflects estimated quantities of 14,000 annual hours for Staff Auditors and 3,000 annual hours for Lead Auditors. Are these quantities intended solely for evaluation purposes, or do they reflect the State's anticipated level of effort? If the former, can the State provide additional information regarding expected scope and volume so bidders can estimate the level of effort required?

Response: The hours provided are estimates for evaluation purposes and are not guaranteed.

Actual hours may vary based on the specific requirements and scope of each assignment.

13. Section A.2.1.4 and Section F.5.3: Section A.2.1.4 states that vendor staff should expect a minimum of 25% travel, while Section F.5 states that expenses are not allowed. Please clarify whether travel costs are expected to be included in fully-burdened hourly rates. Would the State consider allowing reimbursement of travel expenses associated with work performed under authorized work orders?

Response: Travel expenses should be considered at the hourly rate.

14. Vendor Answer Sheet, Section II., Subcontracting/Contract with any WMDB: The requested subcontracting and contracting cost information may contain confidential commercial or financial information. Would the State accept a summary of prior-year WMDB utilization, supported by appropriate documentation, in lieu of detailed cost data?

Response: Section II of the C2D Vendor Answer Sheet, verification must include receipts, contracts, or references with a WMDB. Confidential or commercially sensitive information may be redacted. A summary of prior-year WMDB utilization alone is not sufficient. Please refer to Section II of the Commitment to Diversity Vendor Guidance, “Subcontracting/Contracting with any WMDB (not limited to BEP),” for the specific requirements.

15. Please clarify the types of “investigations” that may be assigned under this contract and the expected boundaries of the Vendor’s responsibilities. Specifically, could investigations include suspected fraud, employee misconduct, vendor misconduct, forensic accounting, litigation support, expert testimony, etc? If not, please identify which of these activities are outside the anticipated scope.

Response: Investigations may include, but are not limited to, suspected fraud, vendor misconduct, and forensic accounting, as assigned by the Agency based on the needs of the specific engagement. The scope of each investigation will be defined by the applicable assignment or work order.

16. The RFP includes external audit services within the scope. Please clarify whether IDOT anticipates the selected vendor performing financial statement audits that require issuance of an audit opinion, or whether the scope is limited to compliance, performance, operational, cost, overhead, contract, and grant-related audits.

Response: The Vendor will be required to perform audit services as assigned by the Agency.

IDOT will be responsible for issuing the final audit report and any applicable audit opinion. The Vendor will provide the necessary work papers, findings, and supporting documentation in accordance with the applicable work order.

17. Section A.1 describes external audits, desk reviews, and investigations, while Sections A.2.1.5 and A.2.1.6 state that both internal and external audits may be assigned. Please clarify the anticipated nature and approximate mix of internal audits, external audits, indirect cost rate reviews, desk reviews, and investigations under the contract. For internal audits, please provide examples of the functions or processes that may be reviewed.

Response: The nature and volume of assignments will be based on the Agency’s needs and will vary by assignment. The Vendor may be required to perform or assist with internal and external audits, indirect cost rate reviews, desk reviews, and investigations, as authorized through the work order process. Internal audit-related work may include reviewing audit activities and documentation maintained by IDOT project managers and other Agency staff, as applicable to the assigned work. There is no guaranteed volume or specific mix of assignments under the contract.

18. Please clarify whether the annual objective is approximately 25 audits plus approximately 400 indirect cost rate reviews, with investigations assigned separately, or whether investigations are included within either stated quantity.

Response: Investigations are included in the 25 audits.

19. If available, please provide the approximate number completed during the most recent year by category: audits, indirect cost rate reviews, desk reviews, and investigations

Response: Approximately 400 indirect cost rate reviews, 20 desk reviews, and 10 audits/instigations.

20. Please provide the anticipated expectations for:

• the time allowed for the Vendor to respond to a proposed work order;

Response: Within a week.

• the usual number of concurrent work orders;

Response: One to three is the usual number of concurrent work orders.

• any required turnaround targets for indirect cost rate reviews, audits, investigations, draft reports, or final reports.

Response: This will vary based on work order.

21. The RFP states that Vendor staff should expect to travel a minimum of 25% of their time and that expenses are not allowed, while the sample work order includes a “Travel Expenses” column.

Please clarify whether all travel time and travel-related costs must be incorporated into the proposed fee, whether travel time is billable, and whether any travel expenses may be separately authorized through an approved work order.

Response: Travel expenses should be considered at the hourly rate.

22. For Mandatory Requirement F.2.1, please clarify whether the accounting-related degree and minimum 27 semester hours of accounting coursework apply to every individual proposed under the contract, including all subcontractor employees under contract. Please also confirm what documentation will be accepted as substantiating evidence. Will CPA licensure, CIA licensure, or other certifications meet the requirement?

Response: This requirement is for all staff that will be billed to the contract. Transcripts and any professional licenses that require a minimum of 27 hours of accounting.

23. Please clarify whether every work order must be performed in accordance with all standards and authorities listed in Sections A.2 and F.1.3, or whether IDOT will specify in each work order which standards and regulatory requirements apply based on the assignment’s objectives and subject matter.

Response: Work orders will be performed in accordance with the applicable standards and authorities listed in the RFP unless specifically stated otherwise.

24. Please describe the anticipated training responsibilities, including whether the Vendor will be expected to develop formal curricula, training materials, job aids, sample workpapers, recorded sessions, or competency assessments, or whether training is expected to occur primarily through coaching and knowledge transfer during assigned audits and reviews. If formal training is anticipated, please provide the expected audience size, frequency, delivery format, and ownership of developed materials.

Response: The vendor will not be expected to develop such materials. Any training would be performed through coaching and knowledge transfer during assigned audits and reviews.

25. The RFP states that the awarded Vendor will invoice “at the completion of the contract” unless invoicing is tied to milestones, deliverables, or other agreed requirements. Please confirm whether the Vendor may invoice upon completion of each approved work order, monthly for approved hours incurred under active work orders, or according to another schedule. Please also clarify the expected review and approval process for work-order invoices.

Response: The vendor may invoice upon completion of each approved work order or a schedule agreed to by both parties. The vendor will submit invoices to the contact person listed in the contract. The invoice will be reviewed by IDOT. After review and approval of the invoice, it will be submitted for payment.

26. Will IDOT accept limited, clearly identified contract exceptions for review?

Response: IDOT will consider limited, clearly identified contract exceptions for review. Any proposed exceptions will be reviewed by the appropriate Legal, State Purchasing Officer (SPO), and End User representatives to determine whether the exceptions will be allowed.

Acceptance of any proposed exceptions is not guaranteed and will be determined through the review process.

27. When does IDOT anticipate awarding the contract?

Response: The Agency anticipates awarding the contract following completion of the proposal evaluation, selection, and required approval processes. An exact award date cannot be determined at this time due to the various steps involved in the procurement process.

28. Following contract award and execution, does IDOT anticipate issuing an initial work order immediately, or is there an anticipated timeframe for issuance of the first work order?

Additionally, does IDOT have an estimate of the number of work orders expected during the first contract year?

Response: A work order will be placed immediately. An estimate of 10 work orders could be issued in the first year.

29. Has a third-party consultant previously provided these services to IDOT under a similar contract?

If yes, please provide the contract term and a brief description of the services performed.

Response: Yes. The Agency previously awarded a contract for similar services to a vendor. The contract had an initial two-year term with two additional two-year renewal options. The scope of services was substantially similar to the scope of services identified in the current RFP.

30. Does IDOT intend to award a single contract to one vendor or establish a multiple-award contract vehicle with work orders distributed among multiple vendors?

Response: The Agency intends to award a single contract to one vendor.

31. The BidBuy pricing schedule includes labor categories (e.g., Lead Auditor and Staff Auditor) with estimated quantities expressed in hours. For evaluation and pricing purposes, please clarify whether the listed quantities are intended solely as estimated evaluation quantities, anticipated annual usage, or maximum contract quantities. Additionally, please clarify how the State will calculate the total evaluated price from the BidBuy pricing schedule and whether work will continue to be authorized and compensated through individual work orders regardless of the estimated quantities shown.

Response: The hours listed are estimates for evaluation and pricing purposes only. Actual utilization will vary based on the specific assignment and individual work order. Services will be authorized through individual work orders based on the Agency’s needs, and the estimated hours do not represent guaranteed quantities.

32. The BidBuy pricing schedule appears to include only two labor classifications, Lead Auditor and Staff Auditor. Please clarify how the Agency defines these classifications and how Offerors should map personnel with multiple staffing levels (e.g., Partner, Senior Manager, Manager, Senior Consultant, Consultant) to the required pricing categories. Additionally, may Offerors propose blended rates within each labor classification, provided work is performed by personnel meeting the qualifications identified in the proposal and approved through the work-order process?

Response: The Agency has established two labor classifications for pricing purposes: Lead Auditor and Staff Auditor. The Lead Auditor classification is intended for senior-level personnel who lead and oversee audit assignments, while the Staff Auditor classification is intended for personnel who perform audit procedures and related activities under the direction of the Lead Auditor.

Offerors should map their internal classifications (e.g., Partner, Senior Manager, Manager, Senior Consultant, Consultant) to one of these two categories based on the duties, responsibilities, and qualifications of the personnel performing the work. Offerors shall provide an all-inclusive rate for each year under each applicable labor category.

33. Will the vendor be permitted to work remotely for desk reviews and indirect cost rate reviews, or is on-site presence at BIC headquarters required for all work?

Response: The State may approve a hybrid work arrangement for certain assignments, subject to applicable terms and conditions. However, IDOT reserves the right to require vendor staff to perform work on-site at auditee offices or IDOT facilities whenever deemed necessary.

34. Does BIC use any specific audit management software, document management systems, or proprietary templates that the vendor will be expected to use or interface with?

Response: BIC does not utilize audit or document management software. BIC has templates for specific documents that Vendors will be required to use, as applicable to each assignment. The applicable templates will be provided by BIC.

35. Will the vendor be granted direct access to IDOT financial, contract management, or procurement systems to pull data for audits, or will IDOT staff serve as the intermediary for data retrieval?

Response: Data retrieval may be facilitated through direct access to applicable IDOT systems or by IDOT staff, depending on the specific audit and the data required. System access, when applicable, will be subject to the appropriate requirements and approvals.

36. Question F.2.3. does not ask for any information that is not also requested in F.3.6. Because F.3.6. asks for additional information above and beyond what is included in F.2.3., can F.2.3. be struck from requirements? If not, please clarify what additional information is intended to be captured by these two questions and whether or not you would like resumes to be included twice.

Response: F.2.3. will not be removed from the RFP requirements. However, vendors are not required to submit duplicate resumes. The resume information provided in response to F.2.3.

may be incorporated into the response to F.3.6.

F.2.3. is intended to capture the required resumes and qualifications of the Vendor’s personnel, including subcontractors, who will be assigned to the contract. F.3.6. requests the same resume information but additionally requires the Vendor to describe how each proposed individual, including any subcontractor personnel, will be involved in the performance of the services under this RFP.

Therefore, vendors may provide the required resume information once, provided that the response to F.3.6. also clearly identifies the role and responsibilities of each proposed individual in performing the services.

37. Section C.9 establishes a 5% BEP participation goal and references the use of certified BEP vendors. Through the BidBuy vendor lookup function, Offerors can identify a list of under NIGP Code 918-04 (Accounting, Auditing, Budget Consulting Services) using filters. Please clarify:

a. May Offerors satisfy the BEP goal using any currently certified Illinois BEP vendor that performs relevant services, or only vendors identified through the BidBuy vendor lookup results for this solicitation?

Response: Offerors may satisfy the BEP participation goal by utilizing any currently certified BEP vendor that provides a commercially useful function on the contract.

b. Does inclusion in the BidBuy vendor lookup results indicate that the vendor is eligible to receive BEP participation credit for this procurement?

Response: No. Inclusion in the BidBuy vendor lookup results does not, by itself, indicate that a vendor is eligible to receive BEP participation credit for this procurement. Vendors must meet the applicable BEP eligibility and certification requirements established by the State of Illinois. Please refer to the BEP Utilization Plan and the applicable requirements identified in the RFP for additional information.

c. Are there any additional certification, commodity code, or eligibility requirements that must be met for a subcontractor to count toward the 5% BEP goal?

Response: Please refer to the BEP Utilization Plan for B-49921 for the applicable certification, eligibility, and participation requirements.