B-48531 Agency Payroll RFP July 2025.pdf

State of Illinois RFP V.25.2

Illinois State Board of Education

Request for Proposal

Agency Payroll System

26-586SBE-CHOPE-B-48531

Section A. SCOPE OF WORK

A.1. OVERVIEW AND PURPOSE

The Illinois State Board of Education (ISBE) is seeking a vendor to provide a new agency payroll processing system. A new Payroll System must be able to meet our growing needs to adjust to scale.

A.2. DESIRED OUTCOMES OF THIS PROJECT/ENGAGEMENT

ISBE is interested in obtaining a new cloud-based system with a single sign-on (SSO) with Active Directory or Entra ID to process payroll. The primary purpose of this Request for Proposal (RFP) is to solicit competitive Bids and proposals from different vendors so that ISBE can evaluate its options and select the most suitable vendor.

A.3. SCHEDULE & BUDGET

Below is an estimated timeline of the procurement process:

Bid Posted – July 2025

Bid Opening – July 2025

Evaluation – July 2025

Demonstrations – August 2025

Award – August 2025

Execution – September 2025

System Go live – No later than December 31, 2025

A.4. UNIQUE CONSIDERATIONS

ISBE is paid twice per month (semi-monthly) for regular payroll. (See attached

Schedule 13)

We also have a delayed payroll that is paid twice per month (but one pay period behind). (Schedule 20)

We have supplemental payrolls that are processed as needed. (See attached

Schedule 12)

We have lapse period supplementals that are processed in July and August usually for anything that needs to be paid for the previous fiscal year that has not been.

(Schedule 11)

We have 3 main payroll groups – Exempt, American Federation of State, County and

Municipal Employees (AFSCME) Bargaining Unit, & Illinois Federation of State Office

Educators (IFSOE) Bargaining Unit. The Salary Bands for the Exempt group and the

Salary Schedules for the AFSCME & IFSOE Bargaining Units are attached.

A.5. TERM

A.5.1. TERM OF THIS CONTRACT: The contract resulting from this procurement will have an initial term commencing upon execution and ending on June 30, 2030.

In no event will the total term of the contract, including the initial term, any renewal terms, and any extensions, exceed ten (10) years. Vendor shall not commence billable work in furtherance of the contract prior to final execution of the contract except when permitted pursuant to 30 ILCS 500/20-80.

A.5.1.1. Pricing for the renewal term(s), or the formula for determining price, is in the Pricing section of this solicitation.

A.5.1.2. Any renewal of the resulting contract is subject to the same terms and conditions that apply to the initial term of the contract unless otherwise provided. The State may renew the contract for any or all of the option periods specified, may exercise any of the renewal options early, and may exercise more than one option at a time based on continuing need and favorable market conditions, when in the best interest of the State. The contract may neither renew automatically nor renew solely at the Vendor’s option

Section B. CURRENT CONDITIONS

B.1. OVERVIEW & BACKGROUND

ISBE is seeking a vendor to provide a new agency payroll processing system. Between

550-600 individuals are paid each pay period. A new Payroll System must be able to meet our growing needs to adjust to scale. The Payroll System must be useable over the long term and have the capacity to be upgraded, if needed. It must be a cloud-based system with an SSO with Active Directory or Entra ID. Cost structure of upgrades and maintenance must be provided for transparency. The system also must contain options for talent management applications to enable the agency to manage functions such as timekeeping, recruitment, onboarding, performance management, training and development, and succession planning.

B.2. AREAS OF CONCERN/CHALLENGES

The payroll process at ISBE is burdened with several inefficiencies and challenges that significantly impact its effectiveness and accuracy. The process is complicated by the excessive number of forms and requests received through various channels, such as emails, SharePoint, physical documents, and internal systems like the Human Resources Management System (HRMS). The lack of integration between these systems further exacerbates the issue, necessitating manual data entry across multiple platforms, which increases the risk of errors and consumes substantial staff time. Moreover, the absence of established metrics and key performance indicators makes it difficult to monitor the efficiency, accuracy, or timeliness of payroll operations, hindering the identification of areas for improvement. The process also relies heavily on manual interventions, with inconsistent data validation and no real-time feedback mechanisms, leading to potential errors and delayed corrective actions. Additionally, the high resource intensity of managing 50 to 400 changes per pay period, coupled with the potential for overlapping responsibilities due to multiple approval layers, further underscores the need for streamlining and optimizing processes within the payroll department.

ISBE is currently utilizing the Central Payroll System of the Illinois Department of Innovation & Technology (DoIT). That system is hosted on DoIT’s IBM z/OS-based mainframe. DoIT plans to retire that system by calendar year 2025. It is in the process of procuring the Human Capital Management (HCM) tool, which contains a payroll module, but that system is not designed to meet the demands of ISBE. The Human Resources Department has been experiencing issues with the Employee Central module that is part of the HCM tool, including timeliness of issue resolution, missing fields, data errors, and complications with various fields. In addition, the module cannot be customized and is not a repository for historical documents. Data quality issues, such as inaccuracies and inconsistencies, have negatively impacted system performance and reliability. Lack of customization requires the agency to maintain and provide support to legacy systems. A significant flaw in the HCM system is the lack of integration capability with the agency’s Management Information Database Accounting System. The accounting system hosts the agency budget tables and pay codes and is necessary to process payroll.

B.3. STRENGTHS

ISBE staff supporting the current payroll process (Human Resources, Budget, Payroll System Solutions+ and Technology Support and Infrastructure) consistently goes above and beyond by performing thorough and meticulous checks on every payroll update.

This extra effort ensures the accuracy of the data, even under tight deadlines, to compensate for the system’s lack of automated validation.

The agency is currently using the Human Resources Management System (HRMS), which was developed by ISBE programmers, as its central repository for all personnel-related transactions as well as its budgeting database. HRMS is LAN-based app with a SQL server backend. The system is adequate for those purposes but is not capable of processing payroll.

B.4. FIGURES, DIAGRAMS, & REFERENCE DOCUMENTS

Agency Terms and Conditions are located as an attachment under Section G.

Depart

Section C. PROPOSAL REQUIREMENTS

Only Electronic Submissions through BidBuy of Offers will be Accepted

C.1. REQUIRED DOCUMENTS TO COMPLETE AND SUBMIT

The Offeror shall submit the listed documents in BidBuy under the Attachments tab in the appropriate “Required Attachments” spaces.

• Vendor Disclosure or IPG Active Registered Vendor Disclosure

• Technical response

• Offer to the State of Illinois Information and Technology Commitment to Diversity

• BEP Utilization Plan

Blank documents may be found on the Chief Procurement Officer for General Service’s website at https://cpo-general.illinois.gov/solicitation-and-contract-templates.html and on the BidBuy posting under “File Attachments:”. Business Enterprise Program/Veterans Small Business Program

Utilization Plan may be downloaded from the Commission on Equity and Inclusion’s website at https://cei.illinois.gov/purchasing-entity-resources/compliance.html.

Failure to submit Vendor Disclosure or IPG Active Registered Vendor Disclosure, as applicable, and the Utilization Plan(s), as applicable, with the Offer submitted in BidBuy shall render the Offer non-responsive.

Offerors are required to submit their response to the State’s solicitation through BidBuy. Any information sent to the State outside of BidBuy, for example by US Mail, FedEx, UPS, e-mail, or hand delivery, will neither be accepted nor considered. Offeror submissions will only be considered if they are received through BidBuy and on or before the time and date indicated as the “Bid Opening Date” on the BidBuy posting. Any required attachments must be submitted via BidBuy.

https://cpo-general.illinois.gov/solicitation-and-contract-templates.html https://cei.illinois.gov/purchasing-entity-resources/compliance.html

Price entries on the Items tab will be locked automatically upon submission of the quote.

E n t e r i n g c o s t , p r i c i n g o r d i s c o u n t i n f o r m a t i o n i n t h e A l t e r n a t e D e s c r i p t i o n m a y r e s u l t i n d i s q u a l i f i c a t i o n . If the agency requires pricing to be submitted in an attachment, Offeror shall upload pricing under the “Required Documents” section on the Attachments tab and check the box “Does the attachment contain any pricing, cost or discount information?”. Failure to check this box allows your pricing to be viewed when bids are opened and will result in disqualification of your offer. NOTE: Do not check “Does the attachment contain any pricing, cost or discount information” if the attachment does NOT include pricing, cost, or discount information.

Documents shall be submitted in an electronic format that is accessible and readable using

Microsoft Office suite software or Adobe Reader. Corrupted files shall not be considered. It is the Offeror’s responsibility to check that files are accessible and legible after uploading.

The Offeror is solely responsible for ensuring timely submission of their electronic solicitation response. Failure to allow adequate time prior to the Bid Opening Date to complete and submit a response to a solicitation, particularly in the event technical support assistance from the State is required, places the Offeror and their offer or response at risk of not being accepted.

The State encourages the Offeror to ensure that their BidBuy account is up-to-date. It is recommended that you access your BidBuy account prior to the solicitation due date and time to make sure that your company’s information is up-to-date and your password is current. Files may be uploaded at any time prior to submission.

File size may impact the uploading and downloading speed and may lead to browser time-outs, resulting in failed upload/download attempts. Please consider this dependency when attaching very large documents.

OFFEROR INSTRUCTIONS TO SUBMIT IN BIDBUY

Create Quote:

General Tab : Save and Continue

Items Tab Follow instructions in the Pricing section of the solicitation document as to whether pricing will be entered in the Unit Cost of the Items Tab or submitted as a separate Pricing Document in the Attachments Tab.

Note: any pricing entered in the Unit Cost of the Items Tab will be locked until after Technical Evaluations take place. Do not enter cost, pricing, or any discount information in the Alternate Description field. Entering cost, pricing or discount information in the Alternate Description may result in disqualification.

Terms and Conditions Tab

: Select “Yes”, “No”, or “Yes with Exceptions”

Note: If taking any exceptions to Standard Terms and Conditions an offeror must submit a redline version of the Standard Terms and Conditions with their proposal.

Attachments Tab For each required quote attachment listed:

: “Upload” (next to each required attachment) : “Choose File” Note: If a pricing document is required, mark the box next to the question, “Does this attachment contain any pricing, cost, or discount information?”

Failure to mark this box when attaching a pricing document will result in disqualification.

Check this box ONLY if a separate pricing document is required.

Do NOT check this box for any other required quote attachment such as the Technical Proposal, Vendor Disclosure / IPG Active Registered Vendor Disclosure, or Utilization Plan(s), or Offer.

Summary Tab : “Submit Quote”

Offerors may also view the “Request for Proposal (RFP) Vendor Submission Instructions

Video found at https://cpo-general.illinois.gov/vendor-resources.html

C.2. DUE DATE AND TIME FOR SUBMISSION OF OFFERS

Each solicitation contains the Offer due date and time, appearing as the “Bid Opening

Date:” on the BidBuy posting. Offeror shall submit Offers in BidBuy, and the State shall open Offers electronically in BidBuy on the “Bid Opening Date”. The Offer must remain firm for 180 days from opening.

C.3. CONFLICT BETWEEN INFORMATION IN ELECTRONIC DOCUMENTS AND ON BIDBUY

If the State provides information in electronic documents (i.e., the RFP and other attachments) that is different or in conflict with the information the State provides on

BidBuy, then the information in electronic documents is presumed to represent the

State’s intent. If the Offeror provides information in electronic documents that is different or in conflict with the information the Offeror provides in BidBuy through their

Seller Account, then the information in electronic documents shall represent the

Offeror’s intended submission.

C.4. PUBLISHED PROCUREMENT INFORMATION

https://cpo-general.illinois.gov/vendor-resources.html

The State publishes procurement information, including solicitations, awards, and amendments, on the Chief Procurement Officer for General Services’ Illinois

Procurement Bulletin, known as the Bulletin or BidBuy

(https://www.bidbuy.illinois.gov/bso/). Procurement information may not be available in any other form or location. Offeror is responsible for monitoring BidBuy. The State will not be held responsible if Offeror fails to receive the optional e-mail notice of future amendments to the solicitation.

C.5. INFORMATION CONTACT

The individual listed in the “Info Contact:” field on the BidBuy posting shall be the single point of contact for this solicitation. Unless otherwise directed, Offeror should only communicate with the Information Contact. The State/Agency shall not be held responsible for information provided by or to any other person.

Suspected errors should be immediately reported to the Information Contact. Do not discuss, directly or indirectly, the solicitation or any Offer with any State officer or employee other than the Information Contact.

C.6. OFFEROR QUESTIONS AND AGENCY RESPONSE

All questions, other than questions raised at the Pre-Submission Conference, pertaining to this solicitation must be submitted in writing to the Information Contact no later than

July 10, 2025. Questions received and Agency responses may be posted as a Bid

Amendment to the original solicitation on BidBuy; only these posted answers to questions shall be binding on the State. Offeror is responsible for monitoring BidBuy and BidBuy email notifications.

C.7. SMALL BUSINESS SET-ASIDE

In the Bulletin posting, if “Yes” is shown to the question “Is this a Small Business Set-

Aside Procurement?”, then Offeror must be registered by the Illinois Small Business Set-

Aside Program at the time Offers are due for the Offer to be evaluated. For requirements on qualifying Offeror’s business in the Small Business Set-Aside Program, please go to the Chief Procurement Office for General Service’s website at https://cpo-general.illinois.gov/sell-2-illinois.html .

C.8. SECURITY

Bid/Performance Bond: $ N/A. If a bond is required, Offeror must submit the Bid Bond with your offer or Performance Bond to the Information Contact within ten (10) days after contract execution. The bond must be from a surety licensed to do business in

Illinois. An irrevocable letter of credit is an acceptable substitute. The form of security must be acceptable to the State.

https://www.bidbuy.illinois.gov/bso/ https://cpo-general.illinois.gov/sell-2-illinois.html https://cpo-general.illinois.gov/sell-2-illinois.html

C.9. TERMS AND CONDITIONS

Standard Terms and Conditions will become a part of any resulting contract. To view the

Standard Terms and Conditions, please go to https://cpo-general.illinois.gov/solicitation-and-contract-templates.html.

https://cpo-general.illinois.gov/solicitation-and-contract-templates.html

Section D. EVALUATION PROCEDURES

D.1. EVALUATION PROCESS

The State assesses each Offer for Responsibility (E.10) and Responsiveness. The State considers the information provided and the quality of that information when assessing

Offers. If the State finds a failure or deficiency, the State may reject the Offer or reflect the failure or deficiency in the assessment.

There are three scored parts to each proposal – technical, commitment to diversity, and pricing. Each part of the proposal is evaluated and ranked independently of the other parts of the proposal. The results of the evaluation of all three parts shall be used in ranking the proposals.

The State may award to the most responsive and responsible offeror whose offer best meets the specified criteria.

D.2. RESPONSIVENESS

A responsive offeror is one who submits an offer that conforms in all material respects to the Request for Proposal and includes all required forms.

D.2.1. The State will determine whether the Offeror complied with the instructions for submitting offers. Except for late submissions, and other requirements that by law must be part of the submission, the State may require that an Offeror correct deficiencies as a condition of further evaluation.

D.2.2. Subcontractor Disclosure: If the Offer includes any subcontractors, then

Offeror shall complete the Subcontractor Disclosure section of the Offer to the State of Illinois.

D.2.3. If completing IPG Active Registered Vendor Disclosure, then responsiveness may include and may not be limited to:

• Active Illinois Procurement Gateway registration # with expiration date

• Certifications timely to this solicitation

• Disclosure of lobbyists for Offeror and parent entity(ies)

• Disclosure of pending and current contracts

D.2.4. If completing Vendor Disclosure, required parts may include and may not be limited to:

• Business and Directory Information: Offeror should complete and return the Business and Directory Information form in Vendor

Disclosure, Part 1.

• Illinois Department of Human Rights (IDHR) Public Contracts

Number: Offeror shall complete and return the IDHR Public

Contracts Number form in Vendor Disclosure, Part 2.

• Authorized to Transact Business or Conduct Affairs in Illinois: A person (other than an individual acting as a sole proprietor) must be a duly constituted legal entity prior to submitting an Offer and authorized to transact business or conduct affairs in Illinois prior to execution of the contract. For more information, see

Authorized to Transact Business or Conduct Affairs in Illinois in

Vendor Disclosure, Part 3.

• Standard Illinois Certifications: Offeror shall complete and return the Standard Illinois Certifications form in Vendor Disclosure, Part

4.

• State Board of Elections Registration: Offeror may be prohibited from making political contributions and be required to register with the State Board of Elections. For more information, see State

Board of Elections in Vendor Disclosure, Part 5.

• Disclosure of Business Operations with Iran: Offeror should complete and return the Disclosure of Business Operations with

Iran form in Vendor Disclosure, Part 6.

• Financial Disclosures and Conflicts of Interest: Offeror shall complete and return the Financial Disclosures and Conflicts of

Interest form in Vendor Disclosure, Part 7.

• Taxpayer Identification Number: Offeror should complete and return the Taxpayer Identification form in Vendor Disclosure, Part

8.

D.2.5. The State will determine whether the Offer meets the stated Technical requirements. Minor differences or deviations that have negligible impact on the price or suitability of the supply or service to meet the State’s needs may be accepted or corrections allowed. If no offeror meets a particular Technical requirement, the State may waive that requirement.

D.2.6. When the specification calls for “Brand Name or Equal,” the brand name product is acceptable. Other products will be considered with proof that the other product meets stated specifications and is equivalent to the brand product in terms of quality, performance, and desired characteristics.

D.3. EVALUATION METHODOLOGY

The Technical Requirements are described in Sections F.2., F.3., F.5, and F.6. The State evaluates the Technical Requirements without consideration of price.

D.3.1. Total Number of Points Available for Technical Requirements is: 800.

D.3.2. Offeror shall complete and return Sections F.2., F.3.

D.3.3. Relative Weight in Point Format

Technical Requirements Points Available

Mandatory Requirements with Evidence 0; all must be met and are evaluated as pass or fail

Project Management Technical Proposal (Desirable elements)

Demonstration (if not applicable agency to remove) 500

D.4. COMMITMENT TO DIVERSITY ELEMENTS

Sections 20-15 and 35-30 of the Illinois Procurement Code (30 ILCS 500/) require offerors to be evaluated on their commitment to diversity. The points available for Commitment to Diversity are described in Section F.4. and are equivalent to 20% of the Technical

Requirements points. The State evaluates Commitment to Diversity without consideration of price.

D.4.1. The total number of points for Commitment to Diversity is 160.

D.4.2. Offeror shall complete and return Section F.4 Commitment to Diversity

D.4.3. Commitment to Diversity Categories: The percentages at the end of each section reflect the weighted distribution of points available identified in

D.4.1.

Commitment to Diversity Categories

Category 1 – BEP Compliance - Whether or how well the Offeror meets this solicitation’s goal of contracting or subcontracting with businesses owned by women, minorities, or persons with disabilities. 5%

Category 2 – Subcontracting/Contracting with any WMD businesses (not limited to BEP vendors) - Whether the Offeror assisted businesses owned by women, minorities, or persons with disabilities. 10%

Category 3 – Diversity, Equity and Inclusion (DEI) Spend – Offeror’s percentage of business, education and/or community spend from prior calendar year gross revenue that involves businesses owned by women, minorities and/or persons with disabilities. The assisted businesses are not required to be certified in the

Illinois Business Enterprise Program. 20%

Category 4 – DEI Time - Offeror’s hours spent in the prior calendar year on promoting DEI in the workplace, the community, education institutes, or supporting businesses owned by women, minorities, or persons with disabilities. The assisted business is not required to be certified in the Illinois Business Enterprise Program.

The success or failure of each event does not impact the points achieved. The event may be voluntary or paid time. 20%

Category 5 – DEI Policies - Entity has provided a written copy of, or link to, their current written workforce diversity, equity, and inclusion policy. Policies must be actionable plans, not overarching concepts around

DEI. 10%

Category 6 – Diversity in Staffing - % of individuals on governing board and/ or Senior executives out of all staff who identify as women, minorities or person with disabilities. 10%

% of individuals in management /supervisor positions out of all staff who identify as women, minorities or person with disabilities. 13%

% of total staff who identify as women, minorities or person with disabilities. 12%

D.5. MINIMUM REQUIRED POINTS 300

Requests for Proposal may specify that offerors must receive a minimum number of points in their Technical and Commitment to Diversity proposals combined to be considered for price evaluation and award.

The State determines how well offers meet the Technical and Commitment to Diversity requirements and rank the offers from best to least qualified using a point ranking system (unless otherwise specified) as an aid in conducting the evaluation. Offerors who receive fewer than the minimum required points will not be considered for price evaluation and award.

D.5.1. The total number of available points for Technical and Commitment to

Diversity is 960.

D.5.2. A minimum of 150 of the available (Technical and Commitment to

Diversity) points is required to be eligible for demonstrations.

D.5.3. A minimum of 700 of the available (Technical and Commitment to

Diversity) points is required for price evaluation and award consideration.

D.6. PRICE

The State opens Price proposals after evaluating all Technical and Commitment to

Diversity proposals.

If the State does not consider the price to be fair and reasonable and negotiations fail to meet an acceptable price, the State reserves the right to cancel the award and take appropriate action to meet the needs of the State. The State determines whether the price is fair and reasonable by considering the offer, including the offeror's qualifications, the offeror's reputation, all price proposals submitted, other known prices, the project budget, and other relevant factors.

D.6.1. The total number of points for Price is 280.

D.6.2. The State will determine Price points using the following formula:

Maximum Price Points X (Lowest Price/Offeror’s Price) = Total Price

Points

D.7. MAXIMUM AVAILABLE POINTS

The maximum number of points is 800 (Technical) + 160 (Commitment to Diversity) +

280 (Price) = 1240 maximum available points.

Section E. ADMINISTRATIVE REQUIREMENTS

E.1. GOVERNING LAW AND FORUM

Illinois law and rules govern this solicitation and any resulting contract. Offeror must bring any action relating to this solicitation or any resulting contract in the appropriate court in Illinois. This document contains statutory references designated with “ILCS”.

To view the full text, go to http://www.ilga.gov/legislation/ilcs/ilcs.asp . The Illinois

Procurement Code (30 ILCS 500) and the Standard Procurement Rules (44 ILL. ADM.

CODE PART 1) are applicable to this solicitation. To view them respectively, go to http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=532&ChapterID=7) and https://www.ilga.gov/commission/jcar/admincode/044/044parts.html

E.2. PUBLIC RECORDS AND REQUESTS FOR CONFIDENTIAL TREATMENT

Offers become the property of the State. All offers will be open to the public under the

Illinois Freedom of Information Act (FOIA) (5 ILCS 140) and other applicable laws and rules, unless Offeror requests in its Offer that the State treat certain information as confidential. A request for confidential treatment will not supersede the State’s legal obligations under FOIA. The State will not honor requests to keep entire Offers confidential. Offerors must show the specific grounds in FOIA or other law or rule that support confidential treatment. Regardless, the State will disclose the successful

Offeror’s name, the substance of the Offer, and the price.

If Offeror requests confidential treatment, Offeror must submit additional copy/copies

(see Instructions for Submission of Offers in Section C.) of the Offer with proposed confidential information redacted. This redacted copy must tell the general nature of the material removed and shall retain as much of the Offer as possible. In a separate http://www.ilga.gov/legislation/ilcs/ilcs.asp http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=532&ChapterID=7)%20%20 https://www.ilga.gov/commission/jcar/admincode/044/044parts.html attachment, Offeror shall supply a listing of the provisions identified by section number for which it seeks confidential treatment and identify the statutory basis or bases under

Illinois law, including a detailed justification for exempting the information from public disclosure.

Offeror will hold harmless and indemnify the State for all costs or damages associated with the State defending Offeror’s request for confidential treatment. Offeror agrees that the State may copy the Offer to facilitate evaluation, or to respond to requests for public records. Offeror warrants that such copying will not violate the rights of any third party.

E.3. MINORITY CONTRACTOR INITIATIVE

The State requires a fee of $15 to cover expenses related to the administration of the

Minority Contractor Opportunity Initiative. Any offeror awarded a contract of $1,000 or more under Section 20-10, 20-15, 20-25 or 20-30 of the Illinois Procurement Code (30

ILCS 500) is required to pay a fee of $15. The Comptroller shall deduct the fee from the first check issued to the Vendor under the contract and deposit the fee in the

Comptroller’s Administrative Fund. 15 ILCS 405/23.9.

E.4. FEDERAL FUNDS

The resulting contract may be partially or totally funded with Federal funds. Upon notice of intent to award, the percentage of supplies and/or services involved that are

Federally funded and the dollar amount of such Federal funds will be disclosed.

E.5. EMPLOYMENT TAX CREDIT

Offerors who hire qualified veterans and certain ex-offenders may be eligible for tax credits. 30 ILCS 500/45-67 and 45-70. Please contact the Illinois Department of

Revenue (217-524-4772) for information about tax credits [35 ILCS 5/216, 5/217].

E.6. RESERVATIONS

Offeror must read and understand the solicitation and tailor the Offer and all activities to ensure compliance. The State reserves the right to amend the solicitation, reject any or all offers, award by item/services, group of items/services, or grand total, and waive minor defects. The State may request a clarification, inspect Offeror’s premises, interview staff, request a presentation, or otherwise verify the contents of the Offer, including information about subcontractors and suppliers. The State may request Best &

Final Offers when appropriate. The State will make all decisions on compliance, evaluation, and terms and conditions, and shall make decisions in the best interests of the State and in accordance with the Illinois Procurement Code, rules and other applicable State and Federal statutes and regulations. This competitive process may require that Offeror provide additional information and otherwise cooperate with the

State. If an offeror does not comply with requests for information and cooperate, the

State may reject the offer as non-responsive to the solicitation. Submitting an offer does not entitle Offeror to an award or a contract. Posting a vendor’s name in a Bulletin notice does not entitle the vendor to a contract. The State is not responsible for and will not pay any costs associated with the preparation and submission of any offer.

Awarded Offeror(s) shall not commence and will not be paid for any billable work undertaken prior to the date all parties execute the contract, unless approved in writing in advance by the State Purchasing Officer or the Chief Procurement Officer (or designee).

E.7. AWARD

The State is not obligated to award a contract pursuant to this solicitation. If the State issues an award, the award will be made to the responsive and responsible offeror whose offer best meets the specified criteria unless otherwise permitted by the Illinois

Procurement Code and Illinois Administrative Code. However, if the State does not consider the price to be fair and reasonable and negotiations fail to meet an acceptable price, then the State reserves the right to cancel the award and take appropriate action to meet the needs of the State. The State will determine whether the price is fair and reasonable by considering the offer, including the offeror's qualifications, the offeror's reputation, all prices submitted, other known prices, the project budget and other relevant factors. The State will post a notice to the Bulletin identifying the apparent most responsive and responsible offeror.

E.8. INVOICING ADDRESS

The awarded Vendor shall invoice at the completion of the contract unless invoicing is tied in the contract to milestones, deliverables, or other invoicing requirements agreed to in the contract. The Bulletin posting contains the “Bill-to Address:” where invoices should be sent.

Vendor shall not bill for any taxes unless accompanied by proof that the State is subject to the tax. If necessary, Vendor may request the applicable Agency’s Illinois tax exemption number and Federal tax exemption information.

E.9. PROTEST REVIEW OFFICE

Offeror may submit a written protest to the Protest Review Office following the requirements of the Standard Procurement Rules. 44 ILL. ADM. CODE 1.5550. For protests related to specifications, the Protest Review Office must physically receive the protest no later than fourteen (14) days after the solicitation or related addendum was posted to the Bulletin. For protests related to rejection of individual proposals or awards, the protest must be received by close of business no later than fourteen (14) days after the protesting party knows or should have known of the facts giving rise to the protest.

The Protest Review Office’s information is as follows:

Chief Procurement Office

Attn: Protest Review Office

Email: cpogs.pro@illinois.gov

E.10. RESPONSIBILITY

A responsible Offeror is one who has the capability in all respects to perform fully the contract requirements and who has the integrity and reliability that will assure good faith performance. The State determines whether the Offeror is a “responsible” offeror;

an offeror with whom the State can or should do business. For example, the State may consider the following:

E.10.1. A “prohibited bidder” includes any person assisting an employee of the

State of Illinois by reviewing, drafting, directing, or preparing any invitation for bids, a request for proposal, or request of information, or providing similar assistance unless such assistance was part of a publicly issued opportunity to review drafts of all or part of these documents. For purposes of this section, an employee of the State of Illinois means one who, by the nature of his or her duties, has the authority to participate personally and substantially in the decision to award a State contract. No person or business shall submit specifications to a State agency unless requested to do so by an employee of the State. No person or business that contracts with a State agency to write specifications for a particular procurement need shall submit a bid or proposal or receive a contract for that procurement need.

Nothing herein is intended to prohibit a vendor from bidding or offering to supply developing technology, supplies or services after providing the

State with a demonstration of the developing technology, supplies, or services; provided the subject of the demonstration to the State represents industry trends and innovation and is not specifically designed to meet the State's needs. Nothing herein is intended to prohibit a person or business from submitting a bid or offer or entering into a contract if the person or business: (i) initiates a communication with an employee to provide general information about products, services, or industry best practices and, if applicable, that communication is documented in accordance with Section 50-39 of the Illinois Procurement

Code or (ii) responds to a communication initiated by an employee of the

State for the purposes of providing information to evaluate new products, trends, services, or technologies.

mailto:cpogs.pro@illinois.gov

E.10.2. Other factors that the State may use to evaluate to determine responsibility include, but are not limited to: political contributions, certifications, conflict of interest, financial disclosures, taxpayer identification number, past performance in business or industry, references (including those found outside the Offer), compliance with applicable laws, financial responsibility, insurability, effective equal opportunity compliance, payment of prevailing wages if required by law, capacity to produce or sources of supply, and the ability to provide required maintenance service or other matters relating to the offeror’s ability to deliver in the quality and quantity within the time and price as specified in this solicitation.

E.10.3. Awarded offerors must always have financial resources sufficient, in the opinion of the State, to ensure performance of the contract and must provide proof upon request. The State may require a performance bond if, in the opinion of the State, it ensures performance of the contract.

The State may terminate the contract, consistent with the termination for cause provision of the contract, if the vendor lacks the financial resources to perform under the contract.

E.10.4. The State may require that an offeror correct any deficiencies as a condition of further evaluation.

E.11. BidBuy Terminology and Guidance: BidBuy is an online e-procurement system. There may be some difference between the procurement terminology used in this solicitation and the terms used in BidBuy. Please learn more about BidBuy by accessing the online resources found here:

https://www2.illinois.gov/cpo/PathwayToProcurement/Pages/Guides-and-Manuals.aspx https://www2.illinois.gov/cpo/PathwayToProcurement/Pages/Guides-and-Manuals.aspx

Section F. PROPOSAL FORMS

Offeror must complete and return:

• The following three (3) tables include: Contract Requirements (Section F.1), and Technical Requirements: Mandatory Requirements with Evidence (Section F.2), and Proposed Technical Solution (Section F.3)

• Commitment to Diversity (Section F.4)

• Offer to the State of Illinois Information and Technology

Please read and follow each instruction carefully.

F.1. CONTRACT REQUIREMENTS

Please read each contract requirement carefully in F.1. These contract requirements shall be included in any contract resulting from this solicitation.

CONTRACT REQUIREMENTS

F.1.1. Employee Payroll Changes:

a. Automated Satisfactory Performance Increase: The system must trigger salary increases automatically based on predefined hire date criteria.

b. Personal Service Contracts: The system must incorporate functionality for automated validation and updating of personal service contracts. (A Personal Service Contract (PSC) details an individual who is not employed by ISBE, does work for ISBE, however they are paid via our payroll. They are hourly employees who are paid based on hours that they work, which can vary each pay period. That said, the Agency requires the capability to change the amount that they are paid within the system. Some have retirement deductions and some do not. If they have retirement, we deduct Medicare only. If they do not have retirement deductions, then we deduct both Social Security and

Medicare. They are also pay delayed (Schedule 20). Additionally, PSCs are not in timekeeping system. We provide them with a timesheet and they send that back with their worked hours and manager approval)

c. Data Validation/Comparison: The system must include validation mechanisms to compare payroll data against HRMS records, with automated alerts for variances.

F.1.2. Automated Cross-Checks:

a. The system must support automated cross-checks between HRMS data and generated reports, ensuring consistency and accuracy.

F.1.3. User Training and Support:

a. This must include initial training, refresher courses, and comprehensive user manuals.

F.1.4. Compliance and Legal Updates:

a. Ensure the system can automatically update and comply with changes in local, State, and Federal laws, especially regarding payroll and tax regulations.

F.1.5. Customization and Flexibility:

a. The system must allow for customization to meet specific needs that may arise in the future. This includes flexible reporting capabilities and the ability to add or modify workflows.

F.1.6. Data Migration and Transition:

a. This includes historical data conversion and ensuring data integrity throughout the transition process.

F.1. 7 Budgetary Information:

a. Payroll pre-run to ensure funding is where it is needed.

b. Scenario planning to ensure that we have enough funds for the year.

c. Standard and ad hoc reporting to allow department directors to confirm employees are properly allocated, and allow Budget staff to confirm (by individual, center, department, fund, fund source, etc.) allocations, year-to-date spending, and remaining estimates (by spending type, such as salary, retirement [Teachers’ Retirement System and State Employees’ Retirement System], pickup, Federal taxes, etc.).

d. Predictive analytics for out-year forecasting to allow Budget staff to estimate future year costs using various scenarios, each based on various entered parameters (including salary tables, raise percentages, tax assumptions, and staffing that might differ from current year staffing).

F. 1.8. System Requirements

a. The system must have single sign-on (SSO) with Active Directory or

Entra ID.

b. The system must be cloud-based.

c. Vendor must provide SOC Type 2 reports and bridge letter upon request for the life of the contract.

By submitting an offer to this solicitation. The offeror agrees that will meet the contract requirements in Section F.1.

F.2. MANDATORY REQUIREMENTS WITH EVIDENCE

Please check “Met” to each of the mandatory requirements for the proposed solution. An

Offeror that does not provide substantiating evidence for each requirement will be disqualified and the rest of the proposal will not be scored.

These Mandatory Requirements shall be included in any contract resulting from this solicitation.

Please provide substantiating evidence in your Proposed Technical Solution. Use the column on the right to indicate the section and page number where your evidence/response to each item may be found. The State will evaluate Offeror’s evidence/response to verify the mandatory requirement is met.

MANDATORY REQUIREMENTS WITH EVIDENCE Proposal Section and

Page Number

F.2.1

• The Payroll System will provide named user licenses.

• Respondent had provided evidence of experience in HR/Payroll System and services.

• Payroll System will provide automated transaction processing based on effective date and user rules.

• Payroll System will provide rules-based system logic.

• Payroll System will support document scanning.

• The Payroll System workflow design will be event-triggered or date-specific, or rules-based.

F.2.2

System must have the ability to import historical data from ISBE existing SQL-backed homegrown

LAN system.

Met

Met

MANDATORY REQUIREMENTS WITH EVIDENCE Proposal Section and

Page Number

• System must be able to pull accurate reports.

• System must be able to integrate with

Management Information Database Accounting

System.

• The system will have to print database reports for payroll vouchers, Deferred Comp reports, and commuter savings.

F.3. PROPOSED TECHNICAL SOLUTION – DESIRABLE ELEMENTS

Please explain how your organization meets or will meet each of the desirable elements.

Use the column on the right to indicate the section and page number of your proposal where your response to each item may be found.

PROPOSED TECHNICAL SOLUTION – DESIRABLE

ELEMENTS

Point Value Proposal Section and

F.3.1. Solutions Overview

Offeror has provided a strategy for Steps Taken for Successful Implementation. Describe the strategy the vendor will follow in the areas below:

1. **Needs Assessment**:

a. Describe how the vendor will conduct a thorough analysis of the existing payroll processes, identifying inefficiencies and areas for improvement.

b. Describe how the vendor will engage key stakeholders, including HR, Finance, and IT departments, to gather requirements and expectations for the new system.

2. **Project Planning**:

a. Describe how the vendor will establish a project team composed of representatives from

HR, Finance, IT, and the vendor.

PROPOSED TECHNICAL SOLUTION – DESIRABLE

ELEMENTS

Point Value Proposal Section and

Page Number

b. Describe how the vendor will develop a detailed project plan that included timelines, milestones, and responsibilities.

3. **System Configuration**:

a. Describe how the vendor will work closely with the vendor to configure the Payroll System according to ISBE’s specific needs, including pay schedules, benefits, taxation, and compliance requirements.

b. Customization will include setting up different pay structures for various employee categories (e.g., hourly, salaried, overtime).

4. **Data Migration**:

a. Describe how the vendor will conduct a comprehensive audit of existing payroll data and determine what must be migrated to the new system.

b. Describe how the vendor will migrate historical payroll data while ensuring data integrity and security.

5. **Testing**:

a. Describe how the vendor will execute several rounds of testing, including user acceptance testing with HR and payroll staff, to ensure the system works as expected.

b. Will address any issues or bugs identified during testing before going live.

6. **Training**:

a. Describe how the vendor will provide extensive training sessions for HR and payroll staff on how to use the new system effectively.

b. Will create user guides and resources for ongoing reference.

7. **Go Live**:

a. Describe how the vendor will launch the new Payroll System at the beginning of the new fiscal quarter to align with pay cycles.

PROPOSED TECHNICAL SOLUTION – DESIRABLE

ELEMENTS

Point Value Proposal Section and

Page Number

b. Describe how the vendor will implement a support plan with the vendor for the initial period post-launch to address any immediate questions or concerns.

c. Describe how the vendor will implement by December 31, 2025

8. **Feedback and Continuous

Improvement**:

a. Describe how the vendor will gather feedback from users after the first payroll cycle to identify any areas for improvement.

b. Describe how the vendor will make necessary adjustments based on user input and continue to optimize the system.

F.3.2. Project Plan –

Describe how the vendor will provide an overview of how the Payroll System will be set up and configured to incorporate employee data, compensation structures, and compliance with the various tax and labor laws.

A successful payroll implementation plan will be evaluated on the following key requirements:

1. Clear Objectives and Goals: Define what you will achieve with the Payroll System, such as efficiency, compliance, and accuracy.

2. Stakeholder Involvement: Describe how you will engage key stakeholders from various departments (HR, Finance, IT) to ensure their needs and concerns are addressed.

3. Comprehensive Data Collection: Provide information on how you will gather all necessary employee data, such as personal information, tax

PROPOSED TECHNICAL SOLUTION – DESIRABLE

ELEMENTS

Point Value Proposal Section and

Page Number details, and payroll history, to ensure a smooth transition.

4. Payroll System Selection: Describe how the

Payroll System meets our organization’s needs and integrates well with existing systems.

5. Compliance and Legal Requirements: Provide details on your experience with local, State, and Federal payroll regulations to ensure compliance throughout the implementation.

6. Testing and Validation: Describe how you will conduct a thorough testing of the Payroll System to identify and resolve any issues before going live.

7. Training and Support: Provide an overview of training for the HR and payroll staff to ensure they are proficient in using the new system and establish a support plan for ongoing assistance.

8. Communication Plan: Provide an example of a communication strategy to keep all employees informed about the new Payroll System and any changes that may affect them.

9. Feedback Mechanism: Discuss plan to gather feedback from users after the rollout to make continuous improvements to the system.

10. Post-Implementation Review: Describe the review of the implementation process after the system goes live and how successes and areas for improvement will be identified.

PROPOSED TECHNICAL SOLUTION – DESIRABLE

ELEMENTS

Point Value Proposal Section and

F.4. COMMITMENT TO DIVERSITY

Commitment to Diversity Vendor Guidance including Vendor Submission Forms are located on the Chief Procurement Officer for General Service’s website at https://cpo-general.illinois.gov/commitment-to-diversity/c2d-guidance.html and on the

BidBuy posting under “File Attachments:”

F.5. DEMONSTRATIONS

Demonstrations will be scheduled during the evaluation period. Offerors are to demonstrate their capability/functionality based on the metrics D.1-D.9 listed on the next page. Offerors are to provide their own hardware/Payroll System and will not have access to any State-supplied equipment. In addition, Offerors are responsible for populating their demonstrations with sample data as ISBE will not provide such data. All demonstrations must abide by all security and compliance regulations stated within the RFP. Offerors will be given a maximum of 60 minutes for demonstrations. This time includes any necessary set-up and break-down time.

https://cpo-general.illinois.gov/commitment-to-diversity/c2d-guidance.html

Metric Description

Maximum

Point

Value

D.1

User

Interface and

Experience

Evaluate the ease of use, navigation, and overall user experience of the Payroll System.

D.2

Core Payroll

Functionality

Ensure the Payroll System can handle all essential payroll tasks, such as calculating wages, taxes, deductions, and generating paychecks.

D.2

Compliance and Tax

Management

Verify if the Payroll System is up to date with the latest tax laws and regulations. Check for features that help with tax filing and compliance.

D.3

Integration

Capabilities

Assess how well the Payroll System integrates with other systems you use, such as Azure Entra ID, HR, accounting, and time-tracking systems.

D.5

Reporting and

Analytics

Look for robust reporting features that allow you to generate detailed payroll reports and analytics. This includes custom report generation and data visualization.

D.6

Employee

Self-Service

Check if the Payroll System provides a self-service portal for employees to access their pay stubs, tax forms, and other payroll-related information.

D.7

Scalability and

Flexibility

Ensure the Payroll System can scale with your organization’s growth and adapt to changing business needs.

D.8

Security and

Data

Protection

Verify the security measures in place to protect…