Amendment One.docx

231 SAP

State of South Carolina

Request for Proposals From S.C. Department of Administration (Admin)

AMENDMENT TO ANSWER QUESTIONS RECEIVED

Number:

Date Issued:

Admin Contact:

Phone:

E-Mail Address:

5400028128 3/26/25 Elsie Montgomery

(803) 737-1178 Elsie.Montgomery@admin.sc.gov

DESCRIPTION: Admin seeks proposals for services of an independent compliance consultant to assess and oversee compliance with certain recommendations resulting from 1) a State Treasury forensic accounting review and 2) an assessment of the State’s ACFR development process.

SUBMIT PROPOSAL BY April 2, 2025, 11:00 AM QUESTIONS MUST BE SUBMITTED BY MARCH 24, 2025, 11:00 AM (See General Instructions p. 9 below)

SUBMIT YOUR PROPOSAL BY E-MAIL TO THE ADMIN CONTACT (Elsie.Montgomery@admin.sc.gov) OR TO EITHER OF THE FOLLOWING ADDRESSES:

MAILING ADDRESS:

S.C. Department of Administration PO Box 2825 Columbia SC 29211 Attention: Elsie Montgomery

PHYSICAL ADDRESS:

S.C. Department of Administration 1200 Senate Street, Suite 450 Columbia SC 29201 Attention: Elsie Montgomery

ENTITY NAME

(Full legal name of business)

AUTHORIZED SIGNATURE

TITLE

(Business title of person signing above)

PRINTED NAME

(Printed name of person signing above)

DATE

MAILING ADDRESS

SAP

AMENDMENTS TO SOLICITATION (JAN 2004)

(a) The Solicitation may be amended at any time prior to opening. All actual and prospective Offerors should monitor the following web site for the issuance of Amendments: www.procurement.sc.gov (b) Offerors shall acknowledge receipt of any amendment to this solicitation (1) by signing and returning the amendment, (2) by identifying the amendment number and date in the space provided for this purpose on Page Two, (3) by letter, or (4) by submitting a bid that indicates in some way that the bidder received the amendment. (c) If this solicitation is amended, then all terms and conditions which are not modified remain unchanged. [02-2A005-1]

QUESTIONS FROM OFFERORS - AMENDMENT (JUN 2017)

THE SOLICITATION IS AMENDED AS PROVIDED HEREIN. INFORMATION OR CHANGES RESULTING FROM QUESTIONS WILL BE SHOWN IN A QUESTION-AND-ANSWER FORMAT. ALL QUESTIONS RECEIVED HAVE BEEN REPRINTED BELOW. THE QUESTIONS ARE INCLUDED SOLELY TO PROVIDE A CROSS-REFERENCE TO THE POTENTIAL OFFEROR THAT SUBMITTED THE QUESTION. QUESTIONS DO NOT FORM A PART OF THE CONTRACT; THE “STATE’S RESPONSE” DOES. ANY RESTATEMENT OF PART OR ALL OF AN EXISTING PROVISION OF THE SOLICITATION IN AN ANSWER DOES NOT MODIFY THE ORIGINAL PROVISION EXCEPT AS FOLLOWS: UNDERLINED TEXT IS ADDED TO THE ORIGINAL PROVISON. STRICKEN TEXT IS DELETED. [02-2A097-1]

Questions and Answers to 5400028128:

1. The RFP states that the consultant may be required to assist in implementation. Please clarify whether this assistance is expected to be purely advisory, or if the consultant will be directly involved in drafting policies and implementing procedural changes?

The State’s Response:

In responding to Section II “Scope of Work” Subsection B “Enhanced Services” of the RFP, Admin expects the bidders to include in their proposal a narrative describing how the contractor would provide actual hands-on assistance to the CGO, STO and OSA in implementing the recommendations. That assistance may include direct involvement in drafting policies, implementing procedural changes, etc. Bidders’ narratives responding to Section II B. Enhanced Services, should also include an indication of the benefit the enhanced services provide to the implementation of the recommendations. Bidders are required to provide a discrete fee structure and methodology for fees and anticipated expenses for providing the services set out in Section II B. Enhanced Services, including an indication of the additional work required to provide the additional services and a detailed breakdown of costs associated with that work.

Please also refer to Question #54 and the State’s Response thereto.

2. The RFP states that in-person attendance is required for presentations to the Governor and General Assembly. Can you confirm whether the consultant may attend the required monthly public meetings of the CGO, STO, and OSA virtually, or if in-person attendance is expected for these as well?

The State’s Response:

In-person attendance is expected at the required monthly public meetings of the CGO, STO, and OSA.

3. The RFP states that the consultant must appear before the General Assembly or legislative committees as required by Admin. Can you clarify whether these meetings will follow a set schedule, or if they will be scheduled on an ad hoc basis?

The State’s Response:

Meeting dates of these legislative bodies and the agendas for those meetings are generally determined by the members of the bodies. Contractor will be provided as much advance notice of dates and agendas as is possible.

4. Will the consultant have direct access to financial systems and agency reports, or will all data and reporting be provided upon request only, such as through a document-sharing platform?

The State’s Response:

The consultant (aka contractor) will have direct access to information contained in SCEIS. The consultant will be issued network user accounts and SCEIS user account(s) and will be granted roles necessary to perform their function. The consultant may use their own equipment to connect to Virtual Desktop Infrastructure (VDI) environments on the state network to access SCEIS systems and environments. The consultant will be required to install DUO multifactor authentication application on their mobile devices for use during authentication procedures. Reports, information, and other documents, such as spreadsheets, will be requested and Admin will create and store the items in a document-sharing platform.

5. Will access be provided virtually (or documents provided virtually), or will certain records only be available in hardcopy or on-site?

The State’s Response:

Most documents and information will be provided virtually.

6. Are there any confidentiality or legal restrictions that may limit access to specific records?

The State’s Response:

Admin is aware of no confidentiality or legal restrictions that may limit Contractor’s access to specific records.

7. The RFP states that travel, lodging, and subsistence expenses must follow South Carolina’s state employee travel policies. Please confirm whether these costs should be included within the $1.2M budget cap, or if they will be reimbursed separately based on state travel regulations?

The State’s Response:

Travel, lodging, and subsistence expenses are included within the $1.2M budget cap.

8. Is AlixPartners eligible to respond to this RFP and be selected to serve as the Independent Compliance Consultant?

The State’s Response:

No firm has been determined to be ineligible to respond. Potential conflicts with a bidder’s ability to perform or perceived independence issues with a bidder’s performing some or all of the elements of the scope of work required will be taken into account.

9. Is Mauldin & Jenkins eligible to respond to this RFP and be selected to serve as the Independent Compliance Consultant?

The State’s Response:

See State’s response to Question #8

10. How many AFS agencies does the State anticipate will need tailored checklists?

The State’s Response:

The CGO is tasked with developing policies and procedures to enhance the accuracy of the development of the state’s ACFR. It is anticipated that the CGO will include such checklists in their updated processes. As a note, the CGO has requested funds in the FY 2026 budget to hire a contractor to assist them with updating their policies and procedures.

CGO anticipates there being a need for at least 4 tailored checklists for the following categories:

There may be a possibility to make specific templates for the Research Universities (3) and Major Component Units (4) instead of a standard for the entire category. Relevant State offices will be open to recommendations based on industry best practice.

Admin will coordinate with the selected Contractor and the CGO in this regard.

11. Does the State have an estimate of the number of in-person training sessions it would like to conduct for its agency personnel?

The State’s Response:

Admin is unsure to what “in-person training sessions” this question refers. To the extent the question relates recommendations in either AlixPartners’ Forensic Accounting Final Report or Mauldin & Jenkins’ ACFR Development Process Assessment, it is anticipated that the Contractor will have some role in determining what is needed for an office to comply.

12. How many State agencies are included in the State’s ACFR?

The State’s Response:

There are 82 state agencies that transact in the state’s accounting system and submit reporting packages. There are 61 governmental entities that do not transact in the state’s accounting system and submit audited financial statements for inclusion in the state’s ACFR.

13. What is the breakout of AFS agencies vs RP agencies?

The State’s Response:

There are 82 state agencies that transact in the state’s accounting system and submit reporting packages. There are 61 governmental entities that do not transact in the state’s accounting system and submit audited financial statements for inclusion in the state’s ACFR.

14. Approximately what percentage of AFS agencies are not meeting the State’s deadlines?

The State’s Response:

For 2024, 33% (20 total) of the 61 AFS entities did not meet their assigned deadlines by an average 22.5 days. 2 were related to the entities’ statements reliance on another entity’s financial statement. The others were related to other external factors to include office closures due to major storms.

15. What is the status of Recommendation 7A in relation to the CGO’s hiring of two additional staff members?

The State’s Response:

Recommendation 7A in the Mauldin and Jenkins “Operational Performance Assessment of the ACFR Development Process” and Recommendation 9 in the AlixPartners “State Treasury Forensic Accounting Review Final Report” are related. The CGO received the two new FTEs in the FY 2024-25 Appropriations Act. The Quality Assurance Manager position was filled on January 2, 2025. The ACFR Accountant position was delayed until the completion of the AlixPartners’ report. With the completion of that report, the CGO intends to proceed with filling that position by the end of the fiscal year. Currently, the CGO is requesting funding in the FY 26 budget to hire a contractor to assist them with developing policies, processes, and assignment of responsibilities to assist them in the accurate and timely preparation of the ACFR. Working with their contractor, the CGO will determine the need for additional staff.

16. In reviewing the Solicitation, I wanted to pose a question related to the “Enhanced Services” section II. B. In paragraph 5), there is a section bolded “and provide assistance to.” Can you clarify at all what types of "assistance" in implementing the recommendations would be expected of the Contractor? Would you envision the Contractor taking on the bulk of the implementation in this section, or would this be more so advising on potential remedial actions to take? Depending on the level of assistance expected and types of activities, anticipated hours could vary greatly. Any clarification you could provide would be greatly appreciated.

The State’s Response:

Please see the State’s response to Question 1.

17. General: Will each applicable State office (e.g., CGO, STO, OSA, etc.) have a point person or key responsible party dedicated to the implementation of the comprehensive recommendations? If so, will the Independent Compliance Consultant (“ICC”) have direct access to coordinate with those individuals or will all information be coordinated through Admin?

S.253 provides that “The Department of Administration has the authority to request support from any agency of the State for the implementation of recommendations and all reasonable requests shall be granted.” Admin intends to coordinate with the Contractor and the applicable State office for the provision of necessary support including access to any needed personnel from a particular office.

18. Point 4 of Section II A. within the RFP (Basic Requirements of S.253) notes that the ICC “must review and provide comment to Admin on the detailed timelines for implementation of all recommendations provided by the CGO, STO and OSA within 10 business days of the receipt of a particular timeline.” To the extent possible, can you please clarify the following?

a. What is the anticipated format (e.g., Word, Excel, PowerPoint, Visio, etc.) for the timelines submitted by the various offices? Will the timelines be in a standardized, consistent format?

b. Will the ICC be able to discuss with / have access to the individuals preparing the timelines during the 90-day timeline preparation period?

c. During the 10-business day period for the ICC to review and provide comment to Admin on the timelines, will the ICC have access to individuals who prepared the timelines to discuss any questions the ICC may have?

The State’s Response:

a. The timelines will be in a standardized format. Admin will work with the contractor to determine a standardized format and communicate that format to the offices.

b. The ICC (aka contractor) will have be able to discuss/have access to the individuals preparing the timelines.

c. The ICC will have access to the individuals preparing the timelines within the 10-business day ICC review period.

19. Point 6 of Section II A. within the RFP (Basic Requirements of S.253) notes that the Contractor will be required to collect and review documents as well as conduct interviews of relevant personnel in order to gain an understanding of: (i) the ACFR process and the participation of various State agencies in that process, (ii) AlixPartners’ final report and recommendations, and (iii) the ACFR Development Process Assessment and recommendations. To the extent possible, can you please clarify the following?

a. In addition to the reports referenced within the RFP, what volume and type (e.g., source documents, data extracts, studies, etc.) of documentation will be available to the ICC to understand the issues that underlie the comprehensive recommendations? For example:

i. Will the ICC be limited to only certain documents deemed necessary by Admin or have broader access to any key data/documentation identified as relevant and important during the forensic review and ACFR Development Process Assessment?

ii. Will the ICC have access to any detailed workpapers, prior interview notes, etc. from the respective parties that support and provide further detail to AlixPartners’ report and the ACFR Development Process Assessment?

b. Will representatives of AlixPartners be available to respond to any potential questions from the ICC related to their work and findings in order to facilitate an efficient and thorough transfer of knowledge?

c. Similarly, will representatives of Mauldin & Jenkins be available to respond to any potential questions from the ICC regarding their work on the ACFR Development Process Assessment?

The State’s Response:

a. The contractor will have access to key data/documents identified as relevant and important during the AlixPartners forensic review and that are in Admin’s possession. Admin only has access to the Mauldin and Jenkins public report.

b. & c. It may be possible that the contractor will have limited access to ask questions of AlixPartners and Mauldin and Jenkins. Those communications will need to flow through Admin.

20. Given the timing of the ACFR Development Process Assessment (March 2024), were any of the observations and recommendations therein deemed no longer relevant or applicable by AlixPartners during their subsequent forensic review (conducted July – December 2024)?

The State’s Response:

AlixPartners did not undertake to determine which observations and recommendations, if any, in the ACFR Development Process Assessment (March 2024) may be no longer relevant or applicable.

21. Point 10 of Section II. A of the RFP notes that certain work must be performed on-site at the State offices while other work may be performed remotely. In addition to the required in-person meetings, does Admin currently have an estimate of the percentage of work that is expected on-site vs. remote?

The State’s Response:

Admin will work with the contractor to determine the most efficient use on on-site and remote work for the scope of work.

22. Point a.3. within the Qualifications and Experience section requests a detailed list of staff that would work on the project. Can the ICC add individuals to the team at any point in the project if the individual is not specifically included in the proposal (meaning, does the proposal need to include any possible resources, and specific names of subconsultants at the time of submitting the proposal)?

The State’s Response:

Subject to Admin’s prior approval, it may be possible for the Contractor to “add individuals to the team at any point in the project if the individual is not specifically included in the proposal.”

23. A portion of the Scope of Work requires the determination of which recommendations require statutory change. Can you please clarify who is responsible for the final determination regarding which recommendations require statutory change (e.g., AG’s Office, Admin, ICC, etc.)? If the ICC is responsible for making the final determination, would the ICC be able to discuss with the State’s internal counsel, external counsel or other advisors for this matter?

The State’s Response:

Admin with input from any relevant office (STO, CGO, OSA, AG etc.) and the Contractor will make the determination of which recommendations require statutory change.

24. Where “the Contractor must review and provide comment to Admin on the detailed timelines for implementation . . .” (A. Basic Requirements, 3)); does the Admin have a preferred format, to the extent the Admin expects such comments to be written?

The State’s Response:

No, Admin will work with the contractor on the format. Admin does expect the contractor’s review and comment to be in a written format.

25. With respect to “attending monthly public meetings of the CGO, STO and OSA” (A. Basic Requirements; 5) d)), are these anticipated to be joint meetings or separate/distinct? How many “monthly public meetings” does the Admin estimate or anticipate?

The State’s Response:

The meetings are anticipated to be joint meetings. Monthly meetings will continue at least until the Contractor provides the comprehensive report required by S.253 and the RFP.

26. Where “the Contractor must assess and provide assistance to” (B. Enhanced Services; 5)), how does the Admin define “assistance”? What does the Admin estimate or foresee as the nature and extent of such “assistance”? Does the Admin have a point of view (or estimate) on the mix of recommendations requiring primarily assessment versus assistance in implementation?

The State’s Response:

Please see the State’s response to Question 1.

27. Can the Admin further describe its objective(s) regarding preferred experience in “data privacy and experience (“Qualifications and Experience”, a. 1. e.)?

The State’s Response:

Part of the recommendations involve the sharing of confidential information, including large data sets, between the CGO and STO. Additionally, interactions with Admin, as well as the CGO, STO, OSA, and other State agencies and representatives will involve the consultant having access to and sharing confidential information and data. It is expected that the consultant will have significant experience in working with and protecting large data sets that consist of, at least in part, confidential financial information and/or PII, and that the consultant will have an understanding of data privacy best practices and compliance.

28. Would the State please confirm that the RFP instructions for “Cover Sheet and Proposal” section are requesting a section within bidders’ response documents titled “Proposal,” which separately provides a narrative approach and methodology? If not, would the State please clarify where bidders should provide in their response documents “overall strategy, methodology, and technical approach your entity intends to employ throughout the process”?

The State’s Response:

Bidders should make “proposals” as part of their submissions under Section IV of the RFP “Information to be Submitted” addressing the requirements of the RFP.

29. Under “Qualifications and Experience,” item a.1., the RFP requests bidders provide “a detailed list of staff who will work on this project for your entity. Include the names, titles, roles for the engagement and prior experience for the employees listed.” Similarly, under “Ability to Perform,” item a., the State requests bidders provide “specifically a staffing plan and identification of any sub-consultants necessary to perform the services and the professional qualifications of both staff and sub-consultants. Are these synonymous or separate/distinct? If separate/distinct, would the State please clarify any differences in the requirements between the “Qualifications and Experience,” item a.1., request and the Ability to Perform, item a., request?

The State’s Response:

As part of the “Information to be Submitted,” bidders should provide a detailed listing of the employees and staff to be used as part of this engagement and a plan detailing how those employees and staff will be used to accomplish the requirements of the RFP. Bidders should also provide identification and planned use of any sub-consultants or sub-contractors. Also, see the Answer to Question #22.

30. Can you specify the roles of the CGO, STO, and OSA in the implementation process?

0. For example, do the State and its agencies have available resources (with the appropriate skills and qualifications) to draft documents/policies, or will the State require support with the actual creation of deliverables (not just oversight and review of deliverables they will draft with our direction)?

0. For any trainings included in the listed recommendations, will the agencies be designing and delivering the training? Or does the State expect the Contractor to design and conduct such trainings?

0. Are there specific resources or support provided by Admin to assist the Contractor in fulfilling the SOW?

The State’s Response:

a. See response to Questions 1 above. The responsibility for the design and implementation of the recommendations resides within the CGO, STO, and OSA. The consultant will assess the adequacy and effectiveness of the design and implementation by the CGO, STO, and OSA, but as reasonably needed, the consultant will assist the CGO, STO, and OSA in the design and implementation process, potentially including drafting or revising policies and procedures.

b. As with other recommendations, the responsibility for intra-agency training design and implementation resides within the CGO, STO, and OSA respectively. The consultant will be expected to review and assess the adequacy and effectiveness of the design and implementation of such intra-agency training and to provide feedback and assistance as reasonably needed. The consultant will be expected to take a more active role in the design and implementation of inter-agency training as reasonably needed.

c. Admin will provide some support to the contractor in fulfilling the SOW. For example, Admin will provide access to the state’s enterprise information system, SCEIS; Admin will create and provide access to a data sharing platform for documents and other relevant data; Admin will work with contractor to schedule, provide public notice, and host required public meetings.

31. What level of authority does the Contractor have in advising and overseeing the implementation?

The State’s Response:

S.253 gives the contractor the authority to request such documents and information from the agencies needed to assess and oversee the agencies’ compliance with the recommendations, to include the agencies’ timelines for completion. S.253 further requires the agencies to provide a monthly written status on their efforts towards implementation and requires the contractor to provide Admin with a monthly written review and comment of the agencies’ progress towards implementation. Those written reviews and comments will be discussed in a public meeting each month, and leadership of the General Assembly will receive a summary of progress and issues.

It will be up to the various State agencies to ultimately decide what new policies and procedures the agencies will implement or how the agencies will modify existing policies and procedures. The consultant will not have the authority to mandate that the State agencies adopt any policies or procedures. That said, the consultant will have no restrictions on what it can recommend to the State agencies in order to best implement the recommendations, and the consultant will be free to report to Admin on any and all of its recommendations, including recommendations that the consultant may make which the agencies reject but which the consultant believes are appropriate.

32. What are the criteria for determining the end date of the monitoring period (between June 30, 2027, and June 30, 2029)?

The State’s Response:

Circumstances at the time will dictate the end date of the monitoring period.

33. With respect to quarterly reports, what are the State’s requirements? i.e., what specific information should they contain?

The State’s Response:

It is unknown at this time the specific information to be contained in the quarterly reports. Those reports will be developed in coordination with the contractor and Admin.

34. Are there any legal or compliance issues the Contractor should be aware of, especially concerning statutory changes?

The State’s Response:

Admin knows of none at this stage.

35. How will potential statutory changes be communicated to relevant stakeholders?

The State’s Response:

Admin will establish an appropriate mechanism to communicate potential statutory changes.

36. Can the State provide a list of the systems and technology currently utilized by the State and relevant agencies for financial and accounting purposes?

The State’s Response:

· SAP Financial Accounting

· General Ledger Accounting (FI-GL)

· Accounts Payable (FI-AP)

· Accounts Receivable (FI-AR)

· Asset Accounting (FI-AA)

· Bank Accounting (FI-BL)

· Travel Management (FI-TV)

· Special Purpose Ledgers

· Grant Management

· SAP Controlling

· Cost Element Accounting (CO-OM-CEL)

· Cost Center Accounting (CO-OM-CCA)

· Internal Orders (CO-OM-OPA)

· Profitability Analysis (CO-PA)

· SAP Treasury and Risk Management

· Treasury and Risk Management

· Debt

· SAP Public Sector Management

· Funds Management

· SAP Business Warehouse

· Data Extraction and Transformation

· Data Modeling

· Data Integration

· Reporting and Analysis

· Business Objects (BOBJ)

· Hyland Onbase

· Azure Synapse

In addition to the state’s accounting system, the CGO implemented Workiva in August 2024. The CGO utilized Workiva to compile the final report for the 2024 ACFR. Starting in August 2025, the CGO intends to utilize Workiva for the collection of state agency reporting packages. Many of the CGO’s workpapers are built using Microsoft Excel. Starting in August 2025, most of the workpapers will be built and maintained within Workiva.

37. Who will be the primary points of contact for the contractor at the CGO, STO, and OSA?

The State’s Response:

See response to Question #17.

38. Does the Department of Administration have a key contact responsible for oversight of the implementation review?

The State’s Response:

Yes.

39. Will there be any internal resources allocated to support on this project in addition to oversight? If so, what are anticipated hours contributed to the project for these internal resources annually?

The State’s Response:

Admin intends to allocate available resources (personnel, operational, information technology) as needed in order to fulfill its duties required by S.253 and allow the Contractor to perform the work required by this RFP. An estimated number of “hours contributed to the project for these internal resources annually” cannot be made at this time. Also, see the Answer to Question #17 and #30.

40. Does the Department of Administration have an estimated budget for monitoring services described in Section II C. Continued Monitoring?

The State’s Response:

Not at this time.

41. What is the current structure and frequency of implementation status reporting received from the CGO, STO, and OSA?

The State’s Response:

S.253 requires monthly written reports from the CGO, STO, and OSA on the status of implementation of the recommendations beginning no later than March 31, 2025. It is anticipated that each office will have provided one monthly report by the time a contract pursuant to this RFP is awarded.

42. What are the top three qualities you are seeking in a contractor?

The State’s Response:

Responses will be evaluated in accordance with the criteria set out in Section V. Evaluation Criteria of the RFP. See the State’s response to Question 44 below. Additionally, some of the qualities include:

· Public sector audit or accounting experience, ideally at a state level, to include a thorough understanding of fund accounting and experience with ACFR preparation and audit.

· Experience with compliance consulting in situations similar to the state’s current requirements.

· Optimal blend of staff, to include senior level staff, that have the experience above to effectively meet the state’s requirements.

43. What is the anticipated start date for the project?

The State’s Response:

Admin hopes to award the contract by April 15, 2025, and work to begin immediately thereafter.

44. Can you elaborate on how the proposals will be evaluated, particularly the weight given to qualifications and experience versus the fee structure?

The State’s Response:

It is expected that 40% weight will be assigned to Qualifications and Experience; 40% weight will be assigned to Ability to Accomplish Scope of Work; and 20% weight will be assigned to Fee Structure. The fee structure will be evaluated relative to qualifications and ability to perform.

45. Page 5, Basic Requirements, item 5 b) reviewing and opining to Admin in writing on the monthly implementation status reports that must be provided by the CGO, STO and OSA no later than thirty days following receipt of the status reports [...] – What form of opinion is expected as AICPA standards have specific rules relating to the provision of an opinion which generally do not fit within the context of this request?

The State’s Response:

The State does not expect to receive any sort of formal “attestation opinion” (such as what auditors provide on financial statements). The State is, however, expecting the consultant to provide a report to the State, which report will inform the State on the consultant’s views as to whether various state agencies have implemented and are complying with the recommendations made. The State also reasonably expects the consultant may be required to provide information to various State government officials or State legislative bodies, which may occur in a sworn testimonial setting.

46. Page 6, Basic Requirements, item 10) The Contractor is expected to perform work on-site at designated state agency offices as is necessary as determined by Admin. Work not required to be performed on-site by Admin may be performed remotely by the Contractor. – What work does Admin expect to be performed on-site versus remotely?

The State’s Response:

See responses to Questions #2 and #21.

47. Page 9, SUBMITTING CONFIDENTIAL INFORMATION The selected Contractor must indemnify and defend Admin from any claim made under the S.C. Freedom of Information Act resulting from Admin’s excluding from disclosure information marked as “Confidential.” – Does Admin have an expectation that the selected Contractor would engage legal counsel to carry out its responsibilities?

The State’s Response:

Should an action be brought against Admin under the S.C. Freedom of Information Act resulting from Admin’s excluding from disclosure information marked as “Confidential” the Contractor would be responsible for any attorney fees that Admin incurs in defending the action and any damages awarded against Admin.

1. Page 12, FEE STRUCTURE: d. Any portion of the awarded contract for which the term extends beyond the current fiscal year is dependent upon appropriations and subject to the TERMINATION DUE TO UNAVAILABILITY OF FUNDS clause in Section VIII of this RFP. – How much notice does Admin expect to give to Contractor prior to termination due to unavailability of funds.

The State’s Response:

Admin would have an understanding of the availability of funds upon the passage by the General Assembly of an annual appropriations act and the signature/vetoes by the Governor.

48. Can you please clarify the fee appropriation for the expected services to be provided surrounding the $1.2m that has been appropriated for the Sections II A, B and C. What is not clear is whether there is an expectation that the appropriated amount should cover the requested enhanced and monitoring services through 2029?

The State’s Response:

Please refer to Section IV of the RFP “INFORMATION TO BE PROVIDED” “FEE STRUCTURE” subparagraphs b. and c. on page 12 of the RFP.

49. Does the State of South Carolina – Department of Administration foresee an identification of gaps or risk assessment to be completed as part of the independent compliance consultant services?

The State’s Response:

The State is not engaging the consultant to evaluate whether recommendations other than those made by AlixPartners and Mauldin & Jenkins are needed. That said, in the course of performing services, if the independent compliance consultant identifies gaps or believes that the State agencies should take other measures to better ensure that issues similar to these do not arise in the future, the State would expect the independent compliance consultant to describe those concerns and/or other measures with the State.

50. Will proposals from non-CPA firms be considered?

a. Will proposals from consulting firms with certified professionals, such as CPAs, CFEs, and others - be considered?

The State’s Response:

See response to Question #42.

51. Would proposals involving out-of-state contractors and / or subcontractors be considered?

The State’s Response:

Yes, given that all contractors and subcontractors are within the U.S.

52. Are there any specific business licenses that the State of South Carolina – Department of Administration requires (or prefers) proposers to have? If yes, please list those licenses and the name of the organization that issues them.

a. Are there any specific business licenses that the State of South Carolina – Department of Administration requires (or prefers) sub-contractors to have?

The State’s Response:

Admin is aware of no specific business license required.

53. Are there any specific personal certifications that the State of South Carolina – Department of Administration requires (or prefers) proposers to have? If yes, please list those licenses and the name of the organization that issues them.

a. Are there any specific business licenses that the State of South Carolina – Department of Administration requires (or prefers) sub-contractors to have?

The State’s Response:

Admin expects that all employees of contractors and subcontractors identified as having professional licenses or certifications are actually so licensed or certified. Admin is aware of no specific business license required.

54. Page 4: Intro, paragraph 1: The RFP states that the Contractor will "assess" and "may be required to assist in the implementation" of the recommendations. Please clarify and/or provide examples of situations where the Consultant may assist in the implementation of the recommendations. If the consultant assists in implementation, wouldn't this impair the independence of the consultant?

The State’s Response:

See response to Question 1. When the State says that it wants to hire an independent compliance consultant, the State is not using the word “independent” in the same way that the AICPA and/or PCAOB uses the word to require that auditors be “independent”. When the State uses this word, it means that the consultant should be “independent” of the State agencies (i.e., the CGO, STO and OSA) who are the subject of recommendations. As a result, should the independent compliance consultant hired by the State be asked to assist with the implementation of any recommendations, the State would not view that assistance in the context of this engagement as affecting the independence of the consultant.

55. Page 4: Intro, paragraph 1: The RFP states that the Contractor “will oversee and may be required to assist in the compliance by the appropriate Office(s) with those recommendations". Please define the term "compliance" and clarify or provide examples of how Admin expects the Consultant "to assist" the offices.

The State’s Response:

See responses to Question 1

56. Page 6: Scope, item 5c: As the independent consultant is likely not an expert of South Carolina law, please clarify who at the State will make the determination of which recommendations require statutory change.

The State’s Response:

See the Answer to Question #23

57. Page 4, Intro Work performed, paragraph 1: The RFP states that portions of the work would be under privilege. Please clarify what types of activities would be the guidance of the AG's office and therefore considered privileged.

The State’s Response:

At times, the State AG’s office and/or outside counsel for the State may request discussions with the consultant regarding the effectiveness and implementation of the policies that have been recommended. Similarly, interim or progress reports regarding the consultant’s engagement may be requested or overseen by the State AG’s office and would similarly be potentially subject to attorney-client privilege or attorney work product protections depending on the specific circumstances.

58. Section II Scope of Work, A.5d, A.8, B.5d, B.8: The RFP states that the Contractor's assessment and oversight will include, but may not be limited to, "attending monthly public meetings of the CGO, STO and OSA". The RFP also states that the Contractor will make "any required presentations concerning the status, reports or completed implementation of the recommendations to the Governor, members of the General Assembly and any other State or federal agency as may be necessary, including at in-person meetings with these parties." Please clarify the Contractor's role at such meetings. Please clarify what deliverables will be expected of the Contractor at such meetings (e.g., anything written, presentation slide decks, testimony, oral statements, Q&As).

The State’s Response:

What exactly will be needed for any such meeting will be determined at the time. It is very possible that written materials, presentation slide decks, testimony, oral statements, Q&As, etc. may be needed from the Contractor.

59. Scope of Work, A.7, B.7, C.2: The RFP states that the Contractor's assessment and oversight will include, but may not be limited to, "providing a comprehensive report upon the completion of the implementation (or within one year of the effective date of S.253 if not complete) of all recommendations to the South Carolina Joint Bond Review Committee." The RFP also states that Contractor will be "reviewing and opining to Admin in writing on the monthly implementation status reports" and that the Contractor must also "provide a written update to Admin regarding the Contractor's opinion of progress in the implementation of the recommendations." The RFP states that the Contractor "must make quarterly reports to Admin regarding the implementation efforts or the results of the implementation efforts..." Please clarify the format of the (1) comprehensive report upon the completion of the implementation; (2) monthly implementation status reports; (3) quarterly reports.

The State’s Response:

The comprehensive report upon the completion of the implementation must be provided in a format suitable for submission to the South Carolina General Assembly’s Joint Bond Review Committee. There is no particular format required for the monthly implementation status reports and quarterly reports. Bidders should describe the intended format for such in their response to the RFP. Ultimately, the formats will be determined by the contractor and Admin.

60. Scope of Work, A.7, B.7, C.2: The RFP states that the Contractor is expected to perform work on-site at designated state agency offices as is necessary as determined by Admin. Please clarify the expected amount of time spent on-site verses remote.

The State’s Response:

See responses to Questions #2, #21, #46.

61. Scope of Work, page 6 paragraph 10: The RFP states that the Contractor is expected to perform work on-site at designated state agency offices as is necessary as determined by Admin. Please clarify the expected amount of time spent on-site verses remote.

See responses to Questions #2, #21, #46, #60.

62. Evaluation Criteria, page 13, paragraph 1: Please confirm how each piece of the evaluation criteria will be weighed and how the proposal response will be scored.

See response to Question #44.

63. Scope of Work, page 4, paragraph 1: The RFP states that the Contractor will be required to collect and review documents and interview relevant personnel as necessary to understand the State's ACFR process. Please clarify the frequency of this assessment (e.g., at initiation, every year). Please also clarify when the assessment will start (i.e., FY25 or FY26).

The Contractor is expected to collect and review documents and interview relevant personnel as necessary for the Contractor to develop a sufficient understanding of the work being done and to be done. The assessment will begin in FY 25, per S.253.

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