Award Recommendation - Treas Acct Mgmt System.docx

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Attached to
Treasury Investment Portfolio System
Solicitation number
NIA1-171-180000000372-1
Issued by
Michigan

About this file

This is an Award Recommendation document from the State of Michigan's Department of Technology, Management & Budget for an Investment Accounting and Portfolio Management Software as a Service System (RFP #171-180000000378). The contract was awarded to QED Financial Systems, Inc. following evaluations of proposals submitted by three vendors (Broadridge/QED, Eagle Investment Systems, and SimCorp USA) by the January 19, 2018 deadline. The RFP was originally posted on SIGMA on December 7, 2017. The contract term is for five base years with five additional renewal option years.

The total contract award amount is $3,366,310.78, which includes $3,251,296.00 for software license, maintenance, and optional annual onsite training, plus $115,014.78 for estimated market data subscription fees. The award recommendation was based on a three-step evaluation process that included technical evaluation (worth 100 points), sample reports evaluation (pass/fail), and pricing consideration. Only Broadridge/QED passed the technical evaluation with a score of 88 points, meeting the minimum threshold of 80 points, and successfully passed the sample reports evaluation. The award is pending State Administrative Board approval.

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STATE OF MICHIGAN

ENTERPRISE PROCUREMENT

Department of Technology Management & Budget

525 W. Allegan Street, PO Box 30026, Lansing, MI 48909

Recommendation of Award

The Department of Technology, Management & Budget’s Procurement office has completed the evaluation of RFP # 171-180000000378 for an Investment Accounting and Portfolio Management Software as a Service System and has recommended an award to QED Financial Systems, Inc. (QED) in the amount of $3,366,310.78 pending State Administrative Board approval. More information on the State Administrative Board can be found at: State Administrative Board. The term of this contract is five base years, with five additional renewal option years.

Bidders who were not recommended for the award are encouraged to schedule a debriefing session with the Solicitation Manager. The debriefing session will provide the bidder with the State’s rationale on why the bidder was not recommended for the award. The Solicitation Manager may be contacted as follows:

Jarrod Barron, Solicitation Manager Barronj1@michigan.gov 517-284-7045 Bidders The RFP was posted on SIGMA on 12/7/2017. The following bidders submitted proposals by the published due date of 1/19/2018.

Bidder
Address

City, State Zip

SDVOB*

Broadridge Financial Solutions, Inc., subsidiary of QED Financial Systems, Inc.
5 Dakota Drive, Suite 300, Lake Success, NY 11042
No
Eagle Investment Systems LLC
45 William Street, Wellesley, MA, 02481
No
SimCorp USA Inc.
1 State Street, New York, NY 10004
No

*SDVOB: Service-Disabled Veteran Owned Business

Evaluation Synopsis I. Evaluation Process A Responsible Vendor is a vendor that demonstrates it has the ability to successfully perform the duties identified by the solicitation. A Responsive proposal is one that is submitted in accordance with the solicitation instructions and meets all mandatory requirements identified in the solicitation.

Per the Proposal Instructions, Section 8, the following were the Mandatory Minimum Requirements:

To avoid disqualification, the bidder must provide documentation to support the following. Failure to provide documentation will result in disqualification.

1. SOC 1 certification

2. SOC 2 Type II certification Only those proposals that meet the mandatory minimum requirements will be considered for evaluation.

Per the Proposal Instructions, Section 9, Evaluation Process, the following describes the evaluation steps:

If all mandatory requirements are met, the State will evaluate each proposal based on the following factors:

STEP 1 – TECHNICAL EVALUATION

Technical Evaluation Criteria
Weight
1.
Vendor Questions Worksheet

Schedule A – Statement of Work Appendix B – Preliminary Enterprise Architecture Solution Assessment

2.
Schedule E – Requirements Matrix

Appendix A – Safeguard Requirements

3.
Schedule C – Resume Templates
15
4.
Schedule D – Preliminary Project Plan
10
Total
100

Proposals receiving 80 or more technical evaluation points will have its pricing evaluated and considered for award.

STEP 2 – SAMPLE REPORTS (PASS/FAIL) Proposals receiving 80 or more technical evaluation points will be evaluated on their sample reports. The table below states the criteria upon which the reports will be evaluated.

Structure
Reports are clear and logical.

Reader can easily follow line of reasoning. Logical connection of points.

Style
Writing is free of errors in grammar, punctuation, and spelling. Flows smoothly.
Content
Reports accurately reflect results from information acquired from various sources.
Use of Figures and Tables
Strong supplement to the text. Information is clearly presented. If taken from other sources, appropriate reference is given. Can stand alone without reference to text.

STEP - 3 – PRICING. Proposals receiving 80 or more technical evaluation points (Step 1) and the proposed system sample reports having passed evaluation (Step 2) will have pricing evaluated and considered for award.

II. Evaluation Method Responses to this solicitation were reviewed by Joint Evaluation Committee, which consisted of the following individuals:

Voting
Advisory

Jarrod Barron, DTMB Karen Stout, Treasury Semone James, Treasury Kristen Robel, Treasury Darrell Hill, DTMB David Conarton, II, DTMB

III. Evaluation Results The JEC determined that two of the three bidders’ proposals met the mandatory minimum requirements:

Broadridge/QED
Eagle
SimCorp
MM #
MM Description
COMPLIANT?
COMPLIANT?
COMPLIANT?
1
Provide SOC 1 certification documentation
Yes
Yes
Yes
2
Provide SOC 2, Type 2 certification documentation
Yes
No
Yes
Result
Pass
Fail
Pass

The JEC determined that one of the two bidders’ proposals met the minimum 80 technical evaluation point threshold. The JEC derived the technical scores below from the bidders’ written proposals:

EVALUATION SCORING SUMMARY

Weight
Criteria
Broadridge/QED
SimCorp
50
Vendor Questions Worksheet

Schedule A – Statement of Work Appendix B – Preliminary Enterprise Architecture Solution Assessment

-11
-16
25
Schedule E – Requirements Matrix

Appendix A – Safeguard Requirements

0
-6
15
Schedule C – Resume Templates
-1
-15
10
Schedule D – Preliminary Project Plan
0
0
Total Deductions
-12
-37
Technical Evaluation Score
88
63

EVALUATION SCORING BREAKDOWN

Vendor Questions, Statement of Work, EASA

RFP SECTION

Broadridge/QED
SimCorp
Vendor Questions
Only provided 2 of the requested 3 prior experiences currently in production
-2
Vendor Questions
Failed to provide any prior experiences

-6

Vendor Questions
Did not provide 3 relevant experiences for proposed Project Manager
-2
-2
Vendor Questions
Failed to provide principal place of business
-1
Statement of Work
Did not explain issue management process
-1
Statement of Work
Did not explain risk management process
-1
Statement of Work
Did not explain change management process
-1
Statement of Work
No Disaster Recovery plan submitted
-2
Statement of Work
Failed to agree to State's Certification and Accreditation requirement

-1

Statement of Work
Failed to agree to Separation of Duties

-1

Statement of Work
Failed to agree to States change control

-1

Statement of Work
Proposed solution relies on Citrix presentation layer as opposed to a pure web-based solution.

-1

Statement of Work
Failed to detail how proposed solution meets the design requirement.

-1

Statement of Work
Failed to detail how proposed solution meets the training requirement.
-1
-1
Statement of Work
Proposed solution relies on third-party hosting

-1

Statement of Work
Failed to agree to State's Project Management Plan requirements

-1

Subtotal Deductions
-11
-16

Requirements Matrix, Safeguard Requirements

RFP SECTION

Broadridge/QED
SimCorp
Requirement A8
Failed to agree to ADA standard

-3

Requirement A10
Nonresponsive answer

-1

Requirement A28c
New transaction types - is not and will not be met

-1

Requirement A28d
Customized screens - is not and will not be met

-1

Subtotal Deductions
0
-6

Resume Templates

RFP SECTION

Broadridge/QED
SimCorp
Lead Tester Resume
Did not answer question involving leading stress/load testing
-1
All Resumes
Failed to provide any resumes

-15

Subtotal Deductions
-1
-15

Preliminary Project Plan

RFP SECTION

Broadridge/QED
SimCorp
Subtotal Deductions
0
0

V. Sample Reports The JEC determined that the sample reports of the one bid meeting the minimum 80 technical evaluation point threshold met the State’s evaluation criteria.

VI. Pricing Summary Pricing was evaluated for Broadridge/QED, the bidder that passed technical evaluation. The following is a 5-year cost summary of this proposal:

ITEM
TOTAL
Software License, Maintenance and Optional Annual Onsite Training
$3,251,296.00
Estimated Market Data Subscription Fees (may vary based on actual consumption)
$115,014.78
Total
$3,366,310.78

VII. Award Recommendation Award recommendation is made to the responsive and responsible Bidder who offers the best value to the State of Michigan. Best value is based on the proposal meeting the minimum point threshold and offering the best combination of factors stated in Technical Evaluation Criteria of the RFP and price. The JEC has determined that QED Financial Systems, Inc. will provide the best value to the State. Therefore, the JEC recommends award be made to QED Financial Systems, Inc. in the amount of $3,366,310.78.

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