Agency_Credit_Card_Processing_Specifications.docx

The purpose of this Invitation for Bid is to establish a contract with a company to serve as the credit card processing company for the Fort McClellan Training Center Billeting Operations (FMTC Billeting) of the Alabama State Military Department (SMD). The Fort McClellan Training Center Billeting Operation is a 325-room (multiple buildings) lodging facility located at the Alabama Army National Guard Ft McClellan Training Center in Anniston, Alabama. During the term of this contract, other offices or divisions of the SMD may be added to this contract.

The bidder is to provide pricing and percentages on the IFB for credit card transactions for Mastercard, Visa, American Express and Discover. Detailed monthly statements of fees due will be submitted to SMD for payment of Visa, Master Card, American Express and Discover processing fees.

The SMD will pay the contract vendor for the processing of on site and on line credit card transactions of FMTC Billeting. The service fee for Master Card, Visa, American Express, and Discover indicated in the bid, other fees stated on the bid and the payment to American Express are the only fees that will be charged to SMD, and must include all of the services mentioned below.

The successful bidder agrees to the following provisions:

1. Only Visa, Master Card, American Express, Discover Cards, and associated debit cards will be accepted.

2. The successful bidder agrees to accept from FMTC Billeting and process Visa, Master Card, Discover, debit card transactions, and authorize and capture American Express transactions through the process of electronic transactions through the process of electronic data capture (“EDC”).

All Visa, Master Card, American Express, Discover, debit transactions shall be accomplished by the use of electronic data capture terminals with plural interface processing (PIP) capability provided by the successful bidder of the type specified by the processing company in accordance with Visa, Master Card, American Express, Discover, debit electronic processing regulations. (Stipulation, EDC machine must be provided so that the customer’s name will be printed only onto sales slips).

Electronic data capture terminals are designed to provide automatic authorizations for each transaction and to electronically transmit the transaction amount and other details to successful bidders’ processor. If, for any reason, electronic data capture terminals cannot provide authorizations, FMTC Billeting will use a telephone authorization procedure provided by successful bidder’s processor or will not accept credit card transactions. If obtaining authorizations by telephone, FMTC Billeting will put the authorization number on each manual ticket processed. If, for any reason, the electronic data capture terminals cannot transmit the transaction data to successful bidders’ processor, FMTC Billeting may accept authorized transactions manually, but will hold the applicable data until the electronic data capture terminals are able to transmit the data. At that time, FMTC Billeting will manually input the data into the electronic data capture terminal. FMTC Billeting will maintain records of all transactions in accordance with Visa, Master Card, Discover and American Express regulations. FMTC Billeting will also submit legible copies of manually input transactions to the successful bidder upon request within ten (10) days after request.

Card transactions will be tabulated, balanced, and transmitted electronically to successful bidders’ processor each business day.

3. Successful bidder will deposit the amount of all transactions to FMTC Billeting’s designated credit card account number at successful bidder location into an established “State of Alabama Treasurer Demand Account,” The SMD will provide the awarded vendor account information for the deposit of proceeds. Successful bidder will provide the State Treasurer availability of such deposits for Visa, debit card, Master Card, Discover transactions within 2 business days and as agreed by American Express for all American Express transactions. Successful bidder will not be liable for insuring ACH payments from American Express within the time period aforementioned. Electronic procedures and equipment shall accomplish all deposits to the FMTC Billeting Demand Account. Manual deposits of sales slips or otherwise, to the FMTC Billeting Treasurer Demand Account, shall not be accepted. A monthly statement will be provided for FMTC Billeting reflecting the transaction activity, a summary by transaction type and the associated fees charges as well as the number of sales, the amount of the sales, the number of credits, the amount of the credits and the associated fees. A daily EDC activity report must be provided to FMTC Billeting and this amount is to balance to the daily statement of the total amount deposited with the exceptions of charge backs. The daily activity report summarizes by location by batch all transactions by type and amount. All statements will be provided, as SMD may deem essential to balance daily and monthly reports by the successful bidder and their processor. With the monthly report, a daily summary shall be provided detailing the amounts on the monthly statement so that all fees can be verified. All transactions must be credited and/or adjusted following State Audits compliance.

4. FMTC Billeting currently utilizes an online reservation and payment system. The successful bidder will process credit card payments made through the online reservation and payment system and deposit tin same manner as on-site transactions. Fortis Pay is the current online reservation and payment system utilized by FMTC Billeting.

FMTC Billeting will be provided by the successful bidder any and all necessary equipment to include the electronic data capture terminals and printers initially and or an as-needed basis; therefore, at no charge to FMTC Billeting for the term of the contract. Same EDC terminal must be utilized to process all Master Card, Visa, Discover, American Express, and debit card transactions. The successful vendor will be responsible for the installation of any and all required equipment.

5. Successful bidder must be able to integrate with any gateways and seamlessly into the existing online reservation system. FMTC Billeting will be provided by successful bidder any and all new and necessary equipment.

6. FMTC Billeting agrees to comply and be bound by any agreements it has to honor Master Card, Visa, Discover and American Express to the extent that such documents do not specifically conflict with the conditions specified, herein, the contract to be executed, or with state law. In the event there is a specific conflict in terms, the conditions as established by SMD herein or in the contract to be executed shall control.

7. Successful bidder agrees that it will not initiate any charge backs by reason of customer disputes to FMTC Billeting unless and until Successful bidder has given actual notice of the disputed claim to FMTC Billeting and same have had a reasonable time (10 working days) in which to provide an explanation. Credit slips will be processed electronically in the same manner as sales slips.

8. Successful bidder shall assign to SMD/FMTC Billeting a contract individual or individuals including an individual at the successful bidder’s processor company. Said individual/s shall provide SMD/FMTC Billeting research services on items requested within 24 hours of any transactions, as well as handle credits for FMTC Billeting. In cases where FMTC Billeting experiences a balancing problem, said contact shall provide FMTC Billeting, within a reasonable time (10 working days) after requesting copies of transactions for FMTC Billeting in question. Said services shall be provided to SMD/FMTC Billeting at no charge.

9. Successful bidder agrees that, except as provided in item 9, there shall be no annual fees, set up fees, initiation fees, programming fees or any other fees charged to Parks or Lands in connection with the administration, acceptance and processing of Visa, Master Card, Discover and American Express.

10. The transaction fee shall be calculated as of the end of the business for the last business day of the month and a summary of charges together with supporting documentation will be forwarded to SMD/FMTC Billeting for remittance. Payment for services should be within 30 days of the receipt of an accurate invoice and shall be done by State warrant only. No payment shall be made without proper documentation.

11. Successful bidder will provide, at no charge, assistance in requesting the credit card authorization vendor to address any problems concerning the operation and use of equipment related to the process of transactions.

12. Successful bidder warrants that no part of the contract amount provided herein must be paid directly or indirectly to any officer or employee of the State of Alabama as wages, compensation, or gifts in exchange for acting as officer, agent, employee, sub-contractor, or consultant to successful bidder in connection with any work contemplated or performed relating to this contract.

13. SMD/FMTC Billeting retains the right throughout the term of contract to evaluate the services provided by vendor and to confirm that the amounts payable under contract are calculated correctly at such intervals as SMD/FMTC Billeting deem necessary.

14. Successful bidder must retain documentation for all service fees and any other obligation paid by SMD/FMC Billeting under contract. The books, records and documentation of successful bidder insofar as they relate to this contract, must be maintained for a period of 36 months from the date of the final payment of a service fee by SMD/FMTC Billeting and may be subject to audit at any time and upon written notice by SMD/FMTC Billeting or the Examiners of Public Accounts. The records must be maintained in accordance with generally accepted accounting principles.

15. Successful bidder must maintain and assure to confidentiality of financial records obtained under this contract and as required by applicable law.

16. Contract may be terminated by the State with or without cause by giving (30) thirty days written notice to the other party of SMD/FMTC Billeting’s intention to terminate. The contract must thereafter terminate thirty (30) days after the date of receipt of such notice. Any obligations incurred by any parties to contract prior to its date of termination must remain in full force and effect and not be affected by said termination provided. However, all associated costs incurred in the removal of any equipment upon termination will be at the expense of the vendor and not the SMD/FMTC Billeting.

17. The contract must be construed in accordance with the laws of the State of Alabama and must be issued in the form of a Purchase Order each fiscal year. Any provision of the contract determined to be invalid must be ineffective only to the extent of such invalidity and must not affect the remainder of the terms and provisions of contract. Successful bidder must not assign its interest in the contract without the written consent of the State Purchasing Director, provided that vendor may employ such contractors, agents and employees as it deems appropriate for the purpose of fulfilling its obligations under this contract, but vendor must remain responsible to the State for the proper fulfillment of such obligations.

18. Successful bidder will be an independent contractor and not an employee or agents of the State.