Attachment 4 - Cost Narrative.pdf

Attachment 4 – Cost Narrative Page 1 of 4 Workforce Scheduling & HOS Compliance

System & Implementation Services

Attachment 4 – Cost Narrative

Proposer is instructed to complete and submit the Price Proposal under separate cover as identified herein.

Proposer to use the following sub header format as provided below.

I. PART I: COST WORKSHEETS

Proposer to submit and complete the Cost Worksheets as contained in Attachment 3. Proposers shall not modify the worksheets in any way. The MBTA understands that there will be potentially four primary types of costs associated with procuring a new system: software licensing, implementation services, annual maintenance costs, and annual subscription costs.

The below statements are provided to further guide the Proposer on how to fill out the cost worksheets.

a. Software Licensing Cost: Software license costs include all costs related to licensing the software application and include third-party software license fees, where applicable. In presenting software license fees, the Proposer shall:

• Explain all factors that could affect licensing fees in the Vendor Notes field of Attachment 3.

• To the extent possible, the Proposer shall show any applicable discounts separately from the prices for products and Services.

• The MBTA requests that the Proposer provide separate prices for each functional area/module in the proposed solution.

b. Implementation Services Cost: Implementation service costs typically include all costs related to professional services (including general implementation, project management, configuration, and other professional services), data conversion, customization, and training.

It is important to note the following:

• In the event the product or service is provided at no additional cost, the item should be noted as "No charge.”

• In the event the product or service is not being included in the Proposal, the item should be noted as "No bid.”

• Proposer shall make clear the basis of calculation for all fees and costs.

• All estimated travel expenses and related out-of-pocket costs must be included as a separate line item in Attachment 3 on a not-to-exceed basis. The MBTA shall not be liable for additional travel costs or out-of-pocket costs incurred for any reason outside the MBTA’s control. Travel expenses will be paid as incurred on a monthly basis.

c. Ongoing Software Subscription Cost (SaaS Deployment): Ongoing software subscription costs include the annual payments for access to the software, hosting costs, backup costs, and potentially disaster recovery provisions. The MBTA expects to pre-negotiate any rates of

Attachment 4 – Cost Narrative Page 2 of 4 Workforce Scheduling & HOS Compliance increase in these costs for the duration of the contract term. The MBTA expects annual subscription costs will not increase in the first five (5) years upon go-live operation, and will increase by no more than 3% annually thereafter

II. PART II: TRAVEL AND EXPENSE EXHIBIT

Proposer to submit a travel and expense policy that will apply for the duration of the Project up to final payment and for the future as it relates to any renewal terms. The MBTA requests that vendors travelling to perform onsite services stay in lodging accommodations within the greater Boston area.

Confirm Exhibit attached in Price Proposal

III. PART III: PAYMENT AND RETAINAGE TERMS

Proposer to submit a brief statement of agreement with the payment and retainage terms identified herein for each Cost Worksheet submitted. If a Proposer does not agree with all items, a description should be provided for those items for which an exception is taken.

Proposer confirms that the RFP proposal is submitted in compliance with the payment and retainage terms provided below in Part III, Payment and Retainage Terms.

Brief Statement:

The MBTA requests that the following Payment and Retainage Terms be utilized for the MBTA’s Project:

a. Software Licensing: Use of an acceptance-based payment schedule for software licensing.

i. Potential milestones including system deployment, Phase Kickoff, Initial Module/System Configuration, Approval of Phase Go-Live, and Acceptance of System. The MBTA expects that licensing for any software modules will not be payable until the associated project phase for that module begins. For example, if Module X were a part of a potential Phase II to the project, the MBTA would expect to have payment milestones for Module X begin with the phase kickoff for Phase II.

ii. Proposer shall fully describe their proposed milestone-based payment schedule for software licensing as part of their Price Proposal.

Brief Statement:

b. Implementation Services Cost: Implementation service costs typically include all costs related to implementation, configuration, data conversion, customization, and training.

i. The MBTA prefers that implementation service costs be proposed as “not-to-exceed” amounts and that the MBTA will be charged for Services as incurred up to the not-to-exceed amounts. Establishment of a not-to-exceed amount does not obligate the MBTA to expend the full amount.

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ii. The MBTA prefers that services be invoiced on a deliverable, phased, or milestone basis.

iii. The MBTA prefers that twenty percent (20%) of each invoice for the implementation service costs will be retained (as a “holdback”) until successful completion, and the MBTA’s written acceptance, of the Project.

Brief Statement:

c. Ongoing Software Subscription Cost: Ongoing software subscription costs include the annual payments for access to the software, hosting costs, backup costs, and potentially disaster recovery provisions. The MBTA expects that subscription costs for software modules will not be payable until the associated project phase for that module begins. The MBTA expects to pre-negotiate any rates of increase in these costs in the first 10 years.

Brief Statement:

IV. NARRATIVE DESCRIPTION OF PRICE PROPOSAL

Proposers are encouraged to include a narrative description of the proposed costs, including, at a minimum the following;

a. Any optional services/offerings for professional services

Brief Statement:

b. Any discounts that have been offered

Brief Statement:

c. Any additional service offerings that may be out of scope but may be available on an optional basis to serve to shift some of the implementation work effort from the MBTA to the vendor during implementation.

Statement:

d. Any projected or anticipated cost savings or cost avoidance considerations related to the proposed software and services (savings in MBTA staff time, savings in ongoing hardware acquisition/maintenance costs, etc.)

Statement:

e. A description of any future upgrade costs, including upgrades to hardware, software, and related professional services costs (such as training, configuration, and other anticipated services costs related to upgrades in the future)

Statement:

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f. Describe how pricing would scale if the MBTA elects to add users, departments, business units, modules, or functionality during the contract term. The Proposers should identify applicable pricing tiers or unit rates for anticipated growth and indicate the extent to which such pricing can be committed to or capped for the duration of the agreement.

g. A description of the estimated travel costs, including the number of trips, average duration of trips and number of staff included per trip, average cost per trip, and whether seasonality in pricing has been considered in the travel estimate.

Statement:

h. Other topics or statements related to the price proposal that the Proposer feels will help the MBTA better understand the pricing structure or key differentiators for the proposed products and services.

Statement:

Attachment 4 – Cost Narrative