APERS Banking Services.pdf

STATE OF ARKANSAS

DEPARTMENT OF TRANSFORMATION AND SHARED SERVICES

OFFICE OF STATE PROCUREMENT

501 Woodlane St., Ste. 220

Little Rock, Arkansas 72201-1023

REQUEST FOR PROPOSAL

SOLICITATION DOCUMENT

SOLICITATION INFORMATION

Solicitation Number: S000000410 Solicitation Issued: April 10, 2025

Description: Banking Services

Department: Arkansas Public Employees’ Retirement System

SUBMISSION DEADLINE AND DELIVERY OF RESPONSE DOCUMENTS

Proposal Opening Date: May 12, 2025, Proposal Opening Time: 10:00 AM, Central Time

Proposal submissions for this Request for Proposal must be submitted through ARBuy, the State’s eProcurement system. It can be accessed at arbuy.arkansas.gov. Proposals received after the submission deadline may be rejected as untimely.

LIVE PROPOSAL OPENING INFORMATION

Teams Meeting Link: Join the meeting now Meeting ID: 281 088 790 107 6 Passcode: tP3LV9Rd Call in (audio only): 501.244.3310 or find a local number

TSS OFFICE OF STATE PROCUREMENT CONTACT INFORMATION

TSS OSP Procurement Specialist: Taylor Watkins Procurement Specialist’s

Direct Phone Number:

(501) 683-

Email Address: Taylor.Watkins@arkansas.gov TSS OSP’s Main Number: 501-324-9316

TSS OSP Website: transform.ar.gov/procurement/ https://arbuy.arkansas.gov/ https://teams.microsoft.com/l/meetup-join/19%3ameeting_MGRlOWNhMGEtZGZkYS00NDNlLWFkMDUtMzA5ZmU5OTA5Njcy%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%22758ab97c-e8c4-4fbc-8334-72be41d361fc%22%7d https://dialin.teams.microsoft.com/6b6513dc-a034-48d2-8d06-7e711c4ecc0b?id=719036839 https://www.transform.ar.gov/procurement/

Rev 12/2024

SECTION 1 – GENERAL INFORMATION AND INSTRUCTIONS

1.1 INTRODUCTION

This Request for Proposal (RFP) is issued by the TSS Office of State Procurement (TSS OSP) for the Arkansas Public Employee Retirement Services to obtain pricing and a contract(s) for banking services beginning 7/1/25 for APERS, The Arkansas State Police Department (ASPRS), and the Arkansas Judicial Retirement System (AJRS).

Contract will be awarded to the Prospective Contractor determined to have submitted the proposal that is the most advantageous to the State. Direct all questions, comments, or concerns regarding this solicitation to the TSS OSP, not the Department.

1.2 TYPE OF CONTRACT

A. As a result of this RFP, TSS OSP intends to award a contract to a single Contractor.

B. The anticipated starting date for any resulting contract is July 01, 2025, except that the actual contract start date may be adjusted unilaterally by the State for up to three (3) calendar months. By submitting a signed proposal in response to the RFP, the Prospective Contractor represents and warrants that it will honor its proposal as being held open as irrevocable for this period.

C. The initial term of the resulting contract will be for four (4) years. Upon mutual agreement by the Contractor and Department, the contract may be renewed by TSS OSP for up to three (3) additional one-year terms or portions thereof, not to exceed a total aggregate contract term of seven (7) consecutive years.

1.3 DEFINITION OF TERMS

A. Unless otherwise defined herein, all terms defined in Arkansas Procurement Law have the same meaning herein.

B. “Prospective Contractor” means a responsible offeror who submits a proposal in response to this Solicitation.

C. The terms “Request for Proposal,” “RFP,” and “Solicitation” are used synonymously in this document.

D. “Requirement” means a term, condition, provision, deliverable, Specification, or a combination thereof, that is obligated under the Solicitation, resulting contract, or both.

E. “Responsive Proposal” means a proposal submitted in response to this Solicitation that conforms in all material respects to this RFP.

F. “Shall” and “must” mean the imperative and are used to identify Requirements.

G. “Specification” means any technical or purchase description or other description of the physical or functional characteristics, or of the nature, of a commodity or service. “Specification” may include a description of any Requirement for inspecting, testing, or preparing a commodity or service for delivery.

H. “State” means the State of Arkansas. When the term “State” is used herein to reference any obligation of the State under a contract that results from this Solicitation, that obligation is limited to the Department using such a contract.

1.4 SOLICITATION SCHEDULE

For informational purposes, TSS OSP is providing a Solicitation Schedule; however, dates listed and noted with an asterisk (*) are anticipated dates only and are subject to change at the discretion of the State. All times are listed in Central Time.

TABLE A: TENTATIVE SOLICITATION SCHEDULE [Dates are provided for reference]

ACTIVITY DATE

RFP Release to Prospective Contractors April 11, 2025

Deadline for Prospective Contractor Questions April 17, 2025 Answers to Questions Posted to ARBuy* April 23, 2025 Proposal Due Date May 12, 2025 @ 10 am Initial Proposal Evaluation* May 13, 2025 Interviews* May 15 – May 16, 2025 Final Proposal Evaluation* May 16, 2025 Discussions Kick Off Meeting* May 21, 2025 Finalize Discussions* May 30, 2025 Post Anticipation to Award* May 30, 2025 Award Contract* July 1, 2025

1.5 CLARIFICATION OF SOLICITATION

A. Submit questions requesting clarification of information contained in this Solicitation via the

Solicitation posting in ARBuy by the date and time listed in Table A.

1. For each question submitted, the Prospective Contractor should reference the specific Solicitation item number to which the question refers, as applicable.

2. Prospective Contractors’ written questions will be consolidated and responded to by the State as deemed appropriate. The State’s consolidated written response is anticipated to be posted to the Solicitation posting in ARBuy by the close of business on the date provided in Table A. If Prospective Contractor questions are unclear or non-substantive in nature, the State may request clarification of a question(s) or decline to answer.

B. The Prospective Contractor should notify the TSS OSP Procurement Specialist of any Requirements that precludes the Prospective Contractor from submitting a Responsive Proposal.

C. Prospective Contractors may contact the TSS OSP Procurement Specialist with non-substantive questions at any time prior to the proposal opening.

D. An oral statement by TSS OSP will not be part of any contract resulting from this Solicitation and may not reasonably be relied on by any Prospective Contractor as an aid to interpretation unless it is reduced to writing and expressly adopted by TSS OSP.

E. Only an addendum written and authorized by the State will modify the Solicitation.

1.6 RESPONSE DOCUMENTS

A. All proposal responses must be submitted through ARBuy, the State’s eProcurement system. The system can be accessed at arbuy.arkansas.gov.

1. Prospective Contractors must be registered in ARBuy to submit proposals responses.

B. Technical Proposal Packet

1. Prospective Contractors shall utilize the Technical Proposal Packet to submit their responses.

2. The following items are proposal Submission Requirements and must be submitted as part of a Prospective Contractor’s proposal response.

a. Signed Proposal Signature Page; signature may be ink or digital.

b. Technical Proposal response to the Information for Evaluation section included in the Technical Proposal Packet, which must be in the English language.

c. Completed Official Solicitation Price Sheet attached to the Solicitation in ARBuy.

i. Pricing must be proposed in U.S. dollars and cents.

https://arbuy.arkansas.gov/

ii. Quantities stated are estimates only and are not guaranteed. Prospective Contractor must submit unit price on the estimated quantity and unit of measure specified.

• The State may order more or less than the estimated quantity on term contracts, and the Contractor shall sell to the Department quantities ordered at no more than the submitted price.

iii. If pricing documents do not allow for accurate pricing, the Prospective Contractor should notify the OSP Procurement Specialist at least seventy-two (72) hours before the proposal opening time.

iv. Prices must be firm offers and shall not be subject to escalation.

v. Discount from list pricing is not acceptable unless requested elsewhere in the Solicitation.

vi. State or local sales taxes should not be included in the price. Trade discounts should be deducted from the unit price and the net price should be shown in the pricing response.

d. Recommended Options Form

i. The Recommended Options form included in the Technical Proposal Packet allows Prospective Contractors to identify any recommended options or optional service ideas that may benefit the State that were not included in the Requirements and the proposed solution.

e. Copy of Prospective Contractor’s Equal Opportunity Policy

i. Pursuant to Arkansas Code Annotated § 19-11-104, OSP requires a Prospective Contractor bidding on a state contract to submit a copy of the Prospective Contractor’s Equal Opportunity (EO) Policy.

ii. Prospective Contractors not required by law to have an EO Policy must submit a written statement to that effect.

f. Proposed Subcontractors Form (see SRV-1, section 14)

3. The following items, which must be submitted prior to a contract award to the Prospective Contractor, may also be included with the Prospective Contractor’s proposal:

a. EO 98-04: Contract and Grant Disclosure Form (see SRV-1, section 11)

b. Voluntary Product Accessibility Template (VPAT), if applicable

4. Prospective Contractors should not include any other documents or ancillary information, such as a cover letter or promotional/marketing information.

C. Redacted copy of the Technical Proposal Packet

1. One (1) redacted (marked Redacted) copy of the Prospective Contractor’s proposal response (see Proprietary Information), if applicable.

D. Prospective Contractors should not alter language in Solicitation document(s) or Official Solicitation Price Sheet provided by the State.

E. Prospective Contractor’s proposals cannot be altered or amended after the proposal opening except as permitted by law or rule.

F. Prospective Contractors may submit multiple proposals.

https://transform.ar.gov/procurement/forms-and-reporting/#:%7E:text=Services%20Contract%20(SRV-1)%20Fillable%20Form:%7E:text=Services%20Contract%20(SRV%2D1)%20Fillable%20Form https://transform.ar.gov/procurement/forms-and-reporting/#:%7E:text=Services%20Contract%20(SRV-1)%20Fillable%20Form:%7E:text=Services%20Contract%20(SRV%2D1)%20Fillable%20Form https://www.section508.gov/sell/vpat/

SECTION 2 – REQUIREMENTS

2.1 BACKGROUND AND CURRENT ENVIRONMENT

A. The Department currently operates three distinct retirement systems, each comprising four accounts, summing up to twelve in total. Among these, three accounts—one per system—are designated for disbursing EFT annuities and non-recurring lump sum payments to members, with funding aligned to each system’s specific payment date. Additionally, six accounts—two per system—function as “sweep” accounts, handling deposits and managing federal and state tax withholdings. The final trio of accounts, one for each system, is allocated for the daily deposit of contributions from both members and employers.

B. Electronic Funds Transfer (EFT) serves as the main mechanism for adding funds to account across all retirement systems. Each day a file is generated for the APERS Member/Employer Self Service portals to trigger transactions related to employer or member contributions. Pre-notes for new accounts are produced daily and dispatched alongside incoming payment files through a secure file transfer protocol (SFTP). This consolidation file encompasses both pre-note and payments. Typically, the funds placed in these accounts are transferred to APERS’ custodian bank for investment the day following the deposit.

C. The Automated Clearing House (ACH) Procedure for Outbound Retiree Payroll involves transmitting the file with retiree payee details to the institution via SFTP, occurring three days prior to the annuity payroll’s effective date. To assist with your response, here is a comprehensive schedule overview for the retiree payroll and cycle for each system in January 2025:

1. APERS annuitants are paid in advance, so the dates provided for January are for a February 1st effective date.

2. If the effective date falls on a weekend or a holiday, the effective date must be the next business day.

3. ADJRS is now merged with APERS but retirees prior to the merge are paid on a different effective date.

D. The Outbound Non-Periodic Distribution Automated Clearing House (ACH) Process encompasses non-periodic distributions such as Deferred Retirement Option Plan (DROP), Partial Annuity Withdrawal (PAW), and Termination Refunds. The timing and amounts of these payments vary monthly. Below is a comprehensive schedule from January 2025:

System Recipients Amount Dates

File

Transmit Effective ASPRS One-Time 3 $19,344.89 1/30/25 2/3/25 APERS One-Time 145 $594,829.16 1/13/25 1/15/25

4. These disbursements are set to be processed on the 1st and 15th of each month, or the next business day if these dates fall on a weekend or holiday.

System Recipients Amount Dates

File Transmit Effective

(2) APERS Monthly (1) 41,523 $51,631,496.69 1/30/25 2/3/25 ASPRS Monthly 753 $2,057,050.39 1/13/25 1/15/25 AJRS Monthly 185 $1,300,303.98 1/27/25 1/30/25 ADJRS Monthly (3) 135 $208,908.03 1/28/25 1/31/25

5. The same initial and final file transmission protocols as those used for retiree payroll files are followed, with the final transmission taking place three business days prior to the effective date.

E. To comply with the NACHA Web Debit Account Validation Rule, APERS utilizes Account Validation Services to verify ownership of accounts used to credit or debit payments on first use or change of account. This is a daily batch process that occurs in parallel to pre-note transaction.

2.2 OBJECTIVE AND GOALS

A. The Department aims to establish an agreement with a financial entity to deliver services encompassing ACH/EFT and remote deposit capabilities for contributions from employers and members, as well as ACH disbursements for monthly retiree pensions and various payouts.

Comprehensive online banking services are essential, including fed wires, EFTs, and account inquiries/transactions/reports. Assigned account representatives are expected to collaborate with other banking personnel as necessary and address all APERS account service concerns. Thorough account analysis statements are required.

2.3 PROSPECTIVE CONTRACTOR MINIMUM QUALIFICATIONS

A. The Prospective Contractor shall be recognized as a certified public depository is accordance with the Depositories of Public Funds Act AR Code § 19-8-107 and shall uphold this designation for the entire duration of any ensuring contract.

B. The Contractor shall have a minimum of 5 years of experience in handling public retirement systems

C. The Contractor shall be experienced with Government Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) reporting requirements.

D. The Prospective Contractor shall be a member of or have access to the Federal Reserve System, possessing full wire transfer capabilities for the aggregate term of the contract.

E. The Prospective Contractor shall provide a certificate from the Chairman of the Board of Directors prior to award, attested by the Secretary of the Board, confirming that the financial institution isn’t under any regulatory actions.

F. The Prospective Contractor shall be affiliated with or have access to the Depository Trust Company System.

G. The Prospective Contractor shall accommodate an intra-day overdraft of up to $100 million

2.4 GENERAL REQUIREMENTS

A. The Contractor shall ensure that all branches, facilities and offices maintain Fidelity and Indemnity insurance coverage.

B. The Contractor shall provide real-time online updates on balance, deposits, and wire transactions.

C. During the Discussions phase, the Contractor shall supply a schedule that is commercially feasible for the availability of funds:

1. Same day for items on depository, ACH deposits, wire transfer, and cash

2. Next day on items on local institutions

D. The Contractor shall offer collateral in the quality, form, and manner specified by the Arkansas State Board of Finance Rule 2012-A, encompassing, but not limited to pledges against balance and daily deposits.

E. The Contractor shall immediately inform APERS in writing if any state or federal regulatory agency takes formal enforcement action against them. Should this occur, the State reserves the right to immediately terminate any ensuring contract, regardless of any other provision herein or within the contract.

F. The Contractor shall provide automated notifications via text and/or emails for all services to ensure staff can effectively monitor all bank account activity.

https://law.justia.com/codes/arkansas/2020/title-19/chapter-8/subchapter-1/section-19-8-107/#%3A%7E%3Atext%3D(A)%20Require%20security%20for%20the%2Cthe%20requirements%20of%20this%20subsection

2.5 REQUIRED INTERFACES

A. The Contract shall be responsible for developing, transitioning, and implementing files formats and data transfer systems for ACH interfaces and Direct Deposits, ensuring they are essential, complete, and compatible with the State’s various information technology systems.

2.6 ACH SERVICES

A. The Contractor shall provide ACH and EFT functions for employer and member contributions.

B. ACH disbursements for monthly retiree annuities and other non-periodic distributions must be provided.

C. The system must enable the upload and transmission of ACH transactions and files and provide detailed reports of returned ACH items.

D. The Contractor shall provide automated emails and notifications integrated into all ACH services so the APERS staff can monitor the status of file submissions in a timely manner.

2.7 EFT RETURNS:

A. The Contractor shall have a designated department and email address for all EFT return requests.

B. All requested EFT returns must be given credit by the next business day.

2.8 ACCOUNT VALIDATION SERVICES:

A. Contractors shall comply with the NACHA Web Debit Account Validation Rule by utilizing Account

Validation Services.

2.9 REMOTE DEPOSIT REQUIREMENTS:

A. The Contractor shall accept remote deposits and credit all received deposits as available funds by closing the same day.

B. The Contractor shall be responsible for providing all necessary equipment for remote check deposits.

C. The Contractor shall supply a unique identification/location code for each remote deposit to facilitate reconciliation and include this code on adjustments or returned items.

D. The Contractor shall verify deposit totals, clearing images, Image Replacement Documents (IRDs), ACH conversions, and the use of Magnetic Ink Character Recognition (MICR) line truncation.

2.10 FILE TRANSMITTAL REQUIREMENTS:

A. The Contractor shall support various file transfer protocols, including SFTP, and must ensure the availability of a secure, non-proprietary connectivity method at the State Data Center West and disaster recover locations.

B. File transmission must be 24/7, with the capability to accept ACH and other files through an alternative method if internet access fails

2.11 WIRING SECURITY & FLEXIBILITY:

A. The Contractor shall establish a secure internet system for the State to initiate EFT Payment and wire transfers.

B. The Contractor shall support secondary authorization for all outgoing wire transfers.

C. The system must provide real-time online reports detailing daily wire transfer activities and implement adequate security measures to enable APERS to maintain appropriate separation of duties throughout the entire transfer process.

D. Wire transfers must be verified before secondary authorization and the system must allow viewing of all wires initiated in a day, including their statuses.

E. All financial institutions wires, including intrabank transactions, must be posted to the account by 5PM CT on business days.

F. The Contractor shall provide online access to detailed reports of incoming and outgoing wires.

G. The Contractor shall provide wire templates to streamline the setup of wires for frequently used accounts to make payments more efficient and secure.

H. The Contractor shall allow for wire transfer initiation and authorization

2.12 REPORTING REQUIREMENTS:

A. The Contractor shall provide APERS with a secure online banking access featuring password protection and login security.

B. The system must generate daily reports on ledgers collected and available balances for all linked in individual accounts, with account details accessible for at least 90 days (preferably 365 days.

C. The system must be capable of compiling daily interaction reports for operating accounts and delivering updates for controlled disbursement accounts, including presentments, paid items, stop payments, manuals adjustments, and exceptions.

D. The system must produce daily and monthly banking statements, along with reports for ACH activities, wire activities, deposits, requested deletions and reversals, and returned items for the current and previous day.

2.13 TECHNOLOGY REQUIREMENTS

A. The Contractor shall ensure their processing systems meet industry standard uptime and must provide a secure website for state staff to access account statements, transactions, and inquiries.

B. The system must utilize industry standard encryption, authentication techniques, and secure individual logins and passwords.

2.14 IMPLEMENTATION SERVICES REQUIREMENTS:

A. The Contractor shall provide a proposed Implementation and Testing Plan during the Discussions phase. The Implementation and Testing Plan must, at minimum, meet all the requirements set forth in this section of the RFP.

B. The Implementation & Testing Plan must include a final acceptance testing phase in which the State can confirm that the system adheres to all contractual requirements.

2.15 TRAINING AND SUPPORT REQUIREMENTS:

A. The Contractor shall provide a proposed Training Plan during the Discussions Phase. The Training

Plan must, at minimum, meet all requirements set forth in this section of the RFP.

B. The Contractor shall provide all training materials and training for the client and to be able to effectively execute remote deposits wire transfer, and incoming and Outgoing ACH file submissions.

C. The Contractor shall provide all training sufficiently in advance to the “Go-Live” of the proposed System such that all Users required to be trained have had a sufficient amount of exposure to capably use the system.

D. In the event that the Contractor makes any material alterations to the solution, the Contractor shall be required to update the training materials accordingly. The Contractor shall provide updated training materials at no additional cost to the State.

E. The Contractor shall be responsible for providing a continuing education program for the duration of any resulting contract in the form of web-based tutorials, instructional videos, etc.

2.16 DATA INTERGRITY/SECURITY

A. The Contractor shall provide a proposed Data Security Plan during the Discussions phase. The Data

Security Plan must, at a minimum, meet all the requirements set forth in this RFP.

B. The Contractor shall establish and provide points of contact in relation to security matters. In the event of a known or suspected Security Breach, any unauthorized access to APERS information, or unauthorized disclosure of data must be reported to APRES within twenty-four (24) hours of discovery. In the event of known or suspected unauthorized access to the Solution or unauthorized disclosure of data, the Contractor shall provide APRES an incident report detailing specifics of the incident including, at a minimum:

1. Date and time of discovery

2. Scope of unauthorized access and/or disclosure of data.

3. Initial mitigation actions taken

4. Any long-term mitigation actions taken; and date of resolution of closure of incident.

C. The Contractor shall implement strong security and disaster recovery procedures to protect Sensitive system and member/retiree/employer data.

D. The Contractor shall protect the confidentiality of the State’s financial data and manage all accounts in accordance with sound banking protocols, employing suitable encryption and password security programs.

E. The Contractor shall adhere to all applicable regulatory and statutory security mandates, including but not limited to:

1. National Institute of Standards and Technology (NIST) SP 800-53 Rev 5 Framework moderate baseline, or later revision

2. National Automated Clearing House Association (NACHA) standards and operating rules

F. The Contractor shall submit files using secure file transfer protocol (SFTP).

G. The Contractor shall, upon execution of the contract, and annually hereafter, provide secure access to the latest versions of the following:

1. System and Organization Controls (SOC) 1 Type 2 report – SOC 1 Type 2, meaning as defined by the American Institute of Certified Public Accountants (AICPA)

2. System and Organization Controls (SOC) 2 Type 2 report – SOC 2 Type 2, meaning as defined by the American institute of Certified Public Accountants (AICPA)

H. All log files that may contain transactional data that could contain personally identifiable data or demographic data related to the transaction must be encrypted.

I. The Contractor shall not store any personally identifiable information longer than required by the RFP or applicable law.

J. All data being transmitted must be encrypted and all stored data must be encrypted at rest.

Encrypting must be done with AES-256.

K. The system must be configurable to lock out an operator after a State-assigned number of failed attempts to log in.

L. In provision of the services anticipated by this RFP, the Contractor shall adhere to all applicable regulatory and statutory security requirements in the National Institute of Standards and Technology (NIST) SP 800-53 Rev 5. Framework (https://csrc.nist.gov/pubs/sp/800/53/a/r5/final), moderate baseline, or later revision (https://csrc.nist.gov/pubs/sp/800/53/b/upd1/final).

2.17 DISASTER RECOVERY PLAN:

A. The Contractor shall provide a proposed Disaster Recovery Plan during the Discussions phase. The

Disaster Recovery Plan must, at minimum, meet the requirements set forth in this section of the

RFP.

https://csrc.nist.gov/pubs/sp/800/53/a/r5/final https://csrc.nist.gov/pubs/sp/800/53/b/upd1/final https://www.nacha.org/ https://www.aicpa-cima.com/home https://www.aicpa-cima.com/home https://csrc.nist.gov/pubs/sp/800/53/a/r5/final https://csrc.nist.gov/pubs/sp/800/53/b/upd1/final

B. The Contractor shall include the following in the final plan(s):

1. Plan Objectives

2. What situations and conditions are covered by the Plan

3. Technical considerations

4. System fails over plans

5. Roles and responsibilities of Contractor staff

6. How and when to notify the Contract Monitor

7. Recover procedures

8. Procedures for deactivating the Disaster Recovery Plan

2.18 STAFFING:

A. The Contractor shall provide a Staffing Plan during the Discussions phase. The Staffing Plan must, at minimum, meet the requirements set forth in this section of the RFP.

B. The Contractor shall include, in the Staffing Plan, individuals with sufficient expertise and experience to provide the services outlined in this RFP.

C. The Contractor shall establish a management structure to meet the state’s needs promptly and provide access to send management.

D. The Contractor shall designate, in the Staffing Plan, a Relationship Manager that must have a minimum of five years of experience in public funds or treasury management and shall be appointed to address services or pricing issues independently.

E. APERS shall have the right to approve or reject proposed staff members prior to the finalization of the plan after Contract Award.

F. The Contractor shall include, in the Staffing Plan, a provision to address the vacancies of the Project Manager or other key personnel. In the event of the vacancy of a key person, the Contractor shall provide replacement candidates to APERS for review within fifteen (15) calendar days of the Contractor learning of the vacancy. APERS will have the right to approve or reject proposed replacements if they do not meet the minimum requirements set forth in the RFP

G. The Contractor shall replace key personnel upon request by APERS for justified reasons including, but not limited to, performance, behavior, and security.

H. The Contractor shall provide and maintain sufficient staffing resources to provide timely service for the life of any resulting contract.

I. At commencement of any resulting contract and prior to the hiring of staff, the Contractor shall provide proof of the background checks for all personnel involved in any aspect of the process described in this RFP at the Contractor’s expense as a requirement of any resulting contract.

J. The Contractor shall provide information necessary to conduct Criminal Background Checks on all key personnel and subcontractors who perform or supervise work on any resulting contract for purposes of auditing.

K. APERS will have the right to refuse personnel based on the results of the criminal background checks.

L. A Project Manager for the transition from the current financial institution to the Contractor shall be designated

2.19 DATA OWNERSHIP AND CONTRACT TRANSITION:

A. The State shall retain sole ownership, rights, title, and interest to all data collected and stored by the

Contractor under any resulting contract, excluding intellectual property and exclusions governed by applicable State and Federal laws.

B. Data use by the Contractor shall be limited to its sole use in the provision of the services anticipated by this RFP. Any other use of State data collected by the Contractor shall require the express written approval of DFA.

C. At the end of any resulting contract and after confirmed transfer of 100% of the State-owned data, deliverables and products the Contractor has created, developed, produced, and managed while performing the services outlined in this RFP back to the State or their designee, the Contractor shall destroy all copies of the State-owned data the Contractor possesses

D. The Contractor shall ensure all data received as part of any resulting contract is used solely for the purpose of any resulting contract and not shared, reused, or disseminated to any other party or entity without the express written consent of the APRES designated representative or as otherwise required under applicable State and Federal laws.

E. Upon termination or expiration, should any subsequent contract for this or similar services be awarded to a provider other than the Contractor, the Contractor shall, to the greatest extent possible and reasonable, cooperate with the DFA in initiating a smooth and orderly transition to the next Contractor.

2.20 PERFORMANCE STANDARDS

A. State law requires that qualifying contracts for services include Performance Standards for measuring the overall quality of services that a Contractor shall provide.

A. The State may be open to negotiations of Performance Standards prior to contract award, prior to the commencement of services, or at times throughout the contract duration.

B. Performance Standards shall not be amended unless they are agreed to in writing and signed by the parties.

C. Failure to meet the minimum Performance Standards as specified will result in the assessment of damages.

D. In the event a Performance Standard is not met, the Contractor will have the opportunity to defend or respond to the insufficiency. The State has the right to waive damages if it determines there were extenuating factors beyond the control of the Contractor that hindered the performance of services. In these instances, the State has final determination of the performance acceptability.

E. Should any compensation be owed to the Department due to the assessment of damages, Contractor shall follow the direction of the Department regarding the required compensation process.

SECTION 3 – SELECTION

3.2 SELECTION PROCESS

A. TSS OSP will review each Technical Proposal Packet to verify Submission Requirements have been met. Technical Proposal Packets that do not meet Submission Requirements will be rejected and will not be evaluated.

1. The State may conduct cost checks based on the cost submitted by each Prospective Contractor on the completed pricing response.

a. Prospective Contractors submitting Responsive Proposals with a proposed cost that falls twenty-five percent (25%) or more from the average submitted cost may be asked to justify their submitted cost.

b. Should TSS OSP request clarification and/or additional information regarding cost, Prospective Contractors shall provide clarification and/or additional information as specified by the request.

B. A Department-appointed Evaluation Committee will evaluate and score Responsive Proposals.

Evaluation will be based on the Prospective Contractor’s response to the Information for Evaluation section included in the Technical Proposal Packet and the pricing submitted by the Prospective Contractor.

1. Cost information will be provided to the members of the Evaluation Committee (Evaluators) to allow them to determine which proposal(s) is the most advantageous to the State.

2. Evaluators will individually review and evaluate proposals and complete an Individual Score Worksheet for each proposal. Individual scoring for each Evaluation Criteria will be based on the scoring description in Table B: Scoring Table.

TABLE B: SCORING TABLE

SCORE DESCRIPTION

10 The response provides metrics clearly establishing that the Prospective Contractor is reliable and capable of fully performing the required services.

The response provides metrics suggesting that the Prospective Contractor’s level of performance may be acceptable, but it does not clearly establish that the Prospective Contractor is reliable and capable of fully performing the required services.

0 The response provides metrics clearly establishing that the Prospective Contractor is unreliable and incapable of fully performing the required services.

3. After initial individual evaluations are complete, the Evaluators will meet to discuss their individual scores. At the initial consensus meeting, each Evaluator will be afforded an opportunity to discuss his or her score for each evaluation criteria.

4. After Evaluators have had an opportunity to discuss their individual scores with the committee, the Evaluators will be given the opportunity to change their initial individual scores, if they feel that is appropriate.

5. The final individual scores of the Evaluators will be recorded on the Consensus Scoresheets and averaged to determine the group or consensus score and rank for each proposal.

6. Other agencies, consultants, and experts may also examine documents at the discretion of the Department.

C. Prospective Contractors submitting Responsive Proposals will be contacted by TSS OSP to schedule an interview.

1. Prospective Contractors shall attend the interview as scheduled by TSS OSP.

2. Evaluators will complete an Individual Score Worksheet for each interview. Evaluation will be based on the Prospective Contractor’s responses to questions presented during the interview Individual scoring for each interview will be based on the Scoring Descriptions in 3.1.B.1.

3. During a final consensus meeting, after all interviews are complete, Evaluators will have the opportunity to discuss the interviews and change their individual interview scores on the Consensus Scoresheet, if they feel that is appropriate.

a. The final individual scores of the Evaluators will be recorded on the Consensus Scoresheets and averaged to determine the group or consensus score and rank for each proposal.

4. Should the State receive only one (1) Responsive Proposal, the State may forgo the interview portion of the evaluation if the proposal has received the Maximum Weighted Score Possible for the Experience, Solution, and Risk subsections.

a. In this scenario, the proposal would automatically receive the maximum weighted score possible for the interview subsection.

D. Should the State request clarification and/or additional information Prospective Contractors’ responses, Prospective Contractors shall provide clarification and/or additional information as specified by the State.

E. TSS OSP will submit responses and pricing received from the interviewed Perspective Contractors, along with the Evaluation Committee’s recommendation to the Department for review and approval to move into Discussions.

3.3 TECHNICAL PROPOSAL SCORE

A. The Information for Evaluation section has been divided into subsections.

1. Each subsection has been assigned a maximum point value of ten (10) points. The total point value for each subsection is reflected in the table below as the Maximum Raw Points Possible.

2. The Department has assigned Weighted Percentages to each subsection according to its significance.

INFORMATION FOR EVALUATION

SUBSECTIONS

MAXIMUM

RAW

POINTS

POSSIBLE

SUBSECTION’S

WEIGHTED

PERCENTAGE

* MAXIMUM

WEIGHTED

SCORE

POSSIBLE

Experience 10 25% 175 Solution 10 25% 175 Risk 10 25% 175 Interview 10 25% 175

Total Technical Score 40 100% 700 *Subsection’s Percentage Weight x Total Technical Maximum Weighted Score = Maximum Weighted Score Possible for the subsection.

B. The proposal’s weighted score for each subsection will be determined using the following formula:

(A/B) *C =D

A = Actual Raw Points received for subsection in evaluation B = Maximum Raw Points possible for subsection C = Maximum Weighted Score possible for subsection D = Weighted Score received for subsection

C. The proposal’s weighted scores for subsections will be added to determine the Total Technical Score for the proposal.

3.4 COST SCORE

A. When scores are applied to pricing, the maximum amount of cost points will be given to the proposal with the lowest One-year grand total as shown in Table One (1) on the completed Official Solicitation Price Sheet. (See Grand Total Score for maximum points possible for cost score.)

B. The amount of cost points given to the remaining proposals will be allocated by using the following formula:

(A/B) *C =D

A = Lowest estimated cost B = Second (third, fourth, etc.) lowest estimated cost C = Maximum Points for lowest estimated cost D = Total price points received

3.5 GRAND TOTAL SCORE

The Technical Score and Cost Score will be added together to determine the Grand Total Score for the proposal. The State may move forward to Discussions with the Prospective Contractor determined reasonably susceptible of being selected for award.

MAXIMUM

POINTS

POSSIBLE

Technical Proposal 700

Cost 300

Maximum Possible Grand Total Score 1,000

3.6 EXPLANATION OF THE SUBSECTIONS OF THE TECHNICAL PROPOSAL

A. Experience

1. The Experience subsection included in the Technical Proposal Packet allows Prospective Contractors to differentiate themselves based on their experience, technical capability, and understanding of the State’s specific needs.

2. Prospective Contractors should identify expertise in the form of a claim and provide relevant experience to support each claim.

3. Prospective Contractors should use verifiable metrics (number of accounts, size of accounts, years of experience, customer satisfaction ratings) to support each claim.

B. Solution

1. The Solution subsection included in the Technical Proposal Packet allows Prospective Contractors to differentiate themselves based on their proposed solution and/or approach to solving the State’s specific needs.

2. Prospective Contractors should provide a high-level overview of the Prospective Contractor’s proposed solution and/or approach to services using the Requirements outlined in the RFP.

3. Proposed solutions should be non-technical and include the Prospective Contractor’s recommendations for meeting the objectives and Requirements of the RFP.

4. Additional service options and recommendations above and beyond those included in the proposed solution should be included in the Recommended Options Form.

C. Risk

1. The Risk subsection included in the Technical Proposal Packet allows Prospective Contractors to identify and prioritize major risks that they reasonably foresee could potentially prevent or impair the Prospective Contractor’s delivery of the solution as offered in the proposal or to otherwise fail to meet the State’s desired outcome, specifications, and performance standards, and how they will mitigate, manage, and/or minimize each risk listed.

a. Prospective Contractors should include sources, causes, or actions that are both within and beyond the control of the Prospective Contractors that they reasonably foresee may cause cost increases, delays, amendments, or dissatisfaction to the State.

b. Risks should be described in simple, clear, and non-technical terms.

c. Prospective Contractor should explain how the Prospective Contractor will mitigate, manage, and/or minimize each risk listed.

i. The Documented Performance cell should include details such as how many times any identified risk was previously mitigated and the impact on the Prospective Contractor’s performance in terms of time, cost, and client satisfaction.

D. Interview

1. The Interview will allow Prospective Contractors to further demonstrate their experience in providing the services outlined in the RFP.

a. Each Prospective Contractor meeting the Submission Requirements will be contacted by TSS OSP to schedule an interview. Prospective Contractors shall attend the interview as scheduled by TSS OSP.

b. Prospective Contractors shall identify one (1) Project Lead at the time of interview confirmation who shall attend the interview as part of the evaluation process.

c. The Evaluation Committee will interview the Prospective Contractor’s identified Project Lead using a pre-determined set of interview questions. Follow up questions may be asked based on responses given by the Project Lead.

3.7 DISCUSSIONS

A. The State will move forward into Discussions with the responsible Prospective Contractor(s) whose proposal(s) have been determined to be reasonably susceptible to being selected for award.

B. Discussions may be conducted with the highest-ranking Prospective Contractor based on the Grand Total Score for each proposal or with multiple Prospective Contractors reasonably susceptible of being awarded a contract.

C. Should the State choose to engage in Discussions with the highest-ranking Prospective Contractor, the Prospective Contractor invited to participate in Discussions shall provide all documents required during Discussions.

1. Should the Department determine, through the Discussions process, that the Prospective Contractor’s solution, approach, timelines, deliverables, expectations of the State, or a combination thereof make the Prospective Contractor no longer reasonably susceptible of being awarded a contract, the Department may abandon Discussions with that Prospective Contractor through a written justification to TSS OSP, and may proceed to additional rounds of Discussions with the next highest-ranking Prospective Contractor.

D. Should the State choose to engage in Discussions with multiple Prospective Contractors contemporaneously, each Prospective Contractor invited to participate in Discussions shall provide all documents required during Discussions.

1. Should a Prospective Contractor not provide the required documents within timeframes requested by TSS OSP or choose not to engage in the Discussions process, the Prospective

Contractor’s proposal will be considered withdrawn and will not be subject to further consideration in the Solicitation process.

E. If Discussions necessitate material revisions of proposals, each responsible Prospective Contractor reasonably susceptible of being awarded a contract will be provided an opportunity to revise its proposal for the purpose of submitting a best and final offer.

F. During the Discussions Kick Off Meeting, the Prospective Contractor shall provide the following documents to the State:

1. A detailed scope of work clearly identifying the Prospective Contractor’s understanding, implementation, and performance of services required in this RFP, including all activities required by the Contractor and all activities expected by the State/Participating Entities

2. A Risk Management Plan intended to mitigate any risks, including but not necessarily limited to, the risks identified in the Risk Plan submitted in the Prospective Contractor’s Technical Proposal Packet

3. A proposed financial summary, including:

a. The completed pricing response and Recommended Options Form submitted in the Prospective Contractor’s Technical Proposal Packet

b. A proposed payment schedule

4. Proposed project management and reporting templates

G. During the Discussions Kick Off Meeting, the Prospective Contractor shall address questions and/or concerns the State may have to the satisfaction of the State.

H. During Discussions, the Prospective Contractor shall revise the discussions documents until agreement is made and the State has provided final approval.

1. The Prospective Contractor shall attend follow up Discussions meeting as determined necessary by the State. Reasonable effort will be made to accommodate scheduling conflicts.

I. During Discussions, the Prospective Contractor shall present a final draft of the Discussions documents to the State, including, at minimum:

1. A summary of all plans and scope of work developed during the discussions process and mutually agreed upon by the State and the Prospective Contractor

2. A detailed scope of work clearly identifying the Prospective Contractor’s implementation and performance of services required in this RFP, including all provisions negotiated and agreed upon by the State and the Prospective Contractor since the Discussions Kick Off Meeting

3. Description of deliverables in terms of simplified metrics

4. The Risk Management Plan

5. Project management and reporting templates

6. Financial summary, including:

a. The completed pricing response submitted in the Prospective Contractor’s Technical Proposal Packet

b. A list of agreed upon and accepted recommended options (with impact to price)

c. A payment schedule

d. Contact information for the Prospective Contractor’s key personnel

J. During Discussions, the Prospective Contractor shall present the final drafts of the items and shall summarize the coordination and planning completed during the discussion process.

K. Once approved by the State, final drafted documents will become part of the resulting contract.

L. The Prospective Contractor may determine which key personnel will attend the Discussions meetings.

3.8 ANTICIPATION TO AWARD

A. Once an anticipated Contractor has been determined, the anticipated award will be posted to the

Solicitation posting in ARBuy by the date and time listed in Table A.

1. It is the responsibility of Prospective Contractors to check the ARBuy website for the posting of an anticipated award.

B. Anticipated awards will generally be posted for a period of fourteen (14) days prior to the issuance of a contract. These notices are anticipated awards only and are subject to protest.

C. A contract resulting from this Solicitation is subject to State review and approval processes prior to award, which may include Legislative review.

3.9 PROSPECTIVE CONTRACTOR ACCEPTANCE OF EVALUATION TECHNIQUE

The submission of a Technical Proposal Packet signifies the Prospective Contractor’s understanding and agreement that some subjective value judgments will be made during the evaluation and scoring of the technical proposals.

SECTION 4 – SOLICITATON TERMS AND CONDITIONS

4.1 ACCEPTANCE OF REQUIREMENTS

A. A Prospective Contractor's past performance with the State may be used to determine if the Prospective Contractor is responsible (OSP Rule R8:19-11-229).

1. Proposals submitted by Prospective Contractors determined to be non-responsible will be rejected.

B. A single Prospective Contractor must be identified as the prime contractor.

1. The prime Contractor shall be responsible for the resulting contract and jointly and severally liable with any of its subcontractors, affiliates, or agents to the State for the performance thereof.

C. By submission of a proposal, the Prospective Contractor represents and warrants:

1. That the prices in the proposal have been arrived at independently, without any collusion with another competing Prospective Contractor.

a. Collusion violates Arkansas Procurement Law and can lead to suspension, debarment, and can be referred to the Attorney General’s officer for investigation and appropriate legal action (Arkansas Code Annotated § 19-11-240 and 19-11-245).

2. That the Prospective Contractor has not retained a person to solicit or secure the resulting contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except for retention of bona fide employees or bona fide established commercial selling agencies maintained by the Prospective Contractor for the purpose of securing business.

D. Prospective Contractor should not discuss the Solicitation or proposal response, issue statements or comments, or provide interviews to public media during the Solicitation and award process.

E. Qualifications and services must meet or exceed the required Specifications as set forth in the Solicitation.

F. The State will not pay the costs incurred in the preparation of a proposal.

4.2 GENERAL TERMS AND CONDITIONS

A. The Contractor must be registered as a vendor to receive payment and may register online by visiting https://www.ark.org/vendor/index.html and clicking the Start Here button.

B. All payments to the Contractor under the resulting contract shall be made exclusively through ACH (Automated Clearing House) direct deposit.

1. The Contractor shall provide the necessary banking information, including account number, routing number, and any other details required to facilitate ACH direct deposits.

2. The Contractor shall be responsible for ensuring that the provided banking information is accurate and up to date.