CalHEERS_SDMO_RFP_73040873.pdf

California Healthcare Eligibility, Enrollment, and Retention System (CalHEERS)

Request for Proposal For CalHEERS SDMO

OTSI CalHEERS SMDO RFP #73040873

September 17, 2025

California Health and Human Services Agency Offices of Technology and Solutions Integration

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CalHEERS SDMO Request for Proposal OTSI CalHEERS RFP #73040873 September 17, 2025

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CalHEERS SDMO RFP

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TABLE OF CONTENTS

RFP – REQUEST FOR PROPOSAL (RFP)

RFP Section 1 - Introduction and Overview RFP Section 2 - Rules Governing Competition RFP Section 3 - Current System RFP Section 4 - Proposed System RFP Section 5 - Administrative Requirements RFP Section 6 - Bidder Requirements RFP Section 7 - Cost RFP Section 8 - Proposal Format RFP Section 9 - Evaluation

Appendix A - STD 213 STANDARD AGREEMENT Appendix A-1: CALHEERS SDMO GENERAL PROVISIONS Appendix A-2: CALHEERS SDMO SPECIAL PROVISIONS Appendix A-3: CALHEERS SDMO ADDITIONAL FEDERAL PROVISIONS Appendix A-4: STATEMENT OF WORK (SOW)

SOW Section 1 - Introduction & Organization SOW Section 2 - Contractor Personnel Requirements SOW Section 3 - Project Management Requirements SOW Section 4 - System Change & Enhancements Requirements SOW Section 5 - Program Support Requirements SOW Section 6 - Operation Requirements SOW Section 7 - Transition Requirements SOW Section 8 - Deliverables SOW Exhibit A – System Requirement Specification

Appendix B - FORMS Appendix C - GLOSSARY Appendix D - Cost Workbook

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Request For Proposal (RFP) OTSI CalHEERS RFP #73040873 Section 1 - Introduction and Overview September 17, 2025

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Section 1 Introduction and Overview

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SECTION 1 – INTRODUCTION AND OVERVIEW

1 INTRODUCTION AND OVERVIEW

1.1 Purpose

1.2 Scope of Solicitation

1.2.1 Negotiation Process

1.2.2 Bidder Admonishment

1.2.3 Availability

1.2.4 Financial Stability

1.2.5 Americans with Disabilities Act

1.3 Term of Contract

1.4 Key Action Dates and Times

1.4.1 Mandatory Bidders Conference

1.4.2 Intention to Bid

1.5 Procurement Official and Contact Information

1.5.1 General E-mail Inquiries

1.5.2 Deliveries by Mail

1.5.3 Access to Bidders’ Library/Submit RFP Question or Request for Change

1.6 Bidders’ Library

1.6.1 Use and Purpose

TABLE OF TABLES

Table 1-1: Key Action Dates and Times

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1 INTRODUCTION AND OVERVIEW

1.1 PURPOSE

The purpose of this Request for Proposal (RFP) (hereafter referred to as “solicitation” or “RFP”) is to obtain proposals from qualified bidders and secure a prime Contractor (System Integrator) to provide a System Development, Maintenance, and Operations (SDMO) solution for the California Healthcare Eligibility, Enrollment, and Retention System (CalHEERS) Project.

The Affordable Care Act of 2010, known as federal health care reform, allowed states to establish Health Benefit Exchanges and provided the opportunity for states to expand Medicaid coverage for individuals to obtain affordable health care coverage. CalHEERS is an automated system that:

• Serves as the consolidated system support for eligibility, enrollment, and retention for the California Health Benefit Exchange (also known in the marketplace as Covered California) and the Medi-Cal Program for individuals subject to the use of Modified Adjusted Gross Income (MAGI).

• Streamlines the use of resources from which individuals can research, compare, check their eligibility for, and purchase health coverage.

The CalHEERS Project is sponsored by Covered California and the Department of Health Care Services (DHCS). The Office of Technology & Solutions Integration (OTSI) is responsible for overall project management. While the Project has a single point of management, it will be guided by the Project Sponsors, Program Partners, and its programmatic objectives.

The SDMO solution is defined as services, products, or a combination of products and services provided by the Contractor in support of the obligations and responsibilities required by the CalHEERS Contract (hereafter referred to as “Contract”). Key services include system development, ongoing maintenance, operation, and enhancement of the CalHEERS, reporting, and customer service.

Responses to this RFP will be evaluated based on the total proposal, and the award, if made, will be to a single bidder who is responsive, responsible, and awarded the highest scored points as calculated in accordance with the methodology defined in RFP Section 9, EVALUATION, of this RFP.

1.2 SCOPE OF SOLICITATION

This solicitation is being conducted under the policies and procedures developed by the CalHEERS Sponsor organizations, Covered California and the Department of Health Care Services (DHCS), per California Government Code (GC) 100505 and the Negotiation Process for the CalHEERS Project. The OTSI will be executing the Contract on behalf of the Sponsor organizations. Refer to RFP Section 2, RULES GOVERNING COMPETITION, for further instructions on the full set of requirements the bidder must comply with for this solicitation.

This solicitation contains the instructions governing the requirements for a proposal to be submitted by interested bidders. The format for how that proposal information is to be submitted and the material to be included therein follows. This solicitation also addresses the requirements that bidders must meet to be eligible for consideration, as well as addressing bidder responsibilities before and after Contract award.

1.2.1 Negotiation Process

This procurement is being conducted under California GC 100505 and a Negotiation Process.

The following steps are included in the Negotiation Process:

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Submission of bidder proposals, including cost;

Evaluation of proposals, as defined in RFP Section 9, EVALUATION;

During Evaluation, there may be opportunity for bidder discussion(s);

Negotiations (may include Key Staff interviews and oral presentations);

Best and Final Offer (BAFO) submission & evaluation, if requested;

Award of Contract.

1.2.2 Bidder Admonishment

This RFP contains the instructions governing the requirements for a firm quotation to be submitted by interested bidders. The format that the bid information is to be submitted in and the material to be included therein follows. This RFP also addresses the requirements that bidders must meet to be eligible for consideration.

IF A BIDDER EXPECTS TO BE AFFORDED THE BENEFITS OF THE STEPS INCLUDED IN

THIS SOLICITATION, THE BIDDER MUST TAKE THE RESPONSIBILITY TO:

• Carefully read the entire solicitation.

• Attend the mandatory Bidders Conference.

• Submit written questions by the date noted in RFP Section 1.4, KEY ACTION

DATES AND TIMES, if clarification is necessary.

• Submit all required responses, completed to the best of the bidder’s ability, by the required dates and times.

• Ensure that all procedures and requirements of the solicitation are accurately followed and appropriately addressed.

• Carefully re-read the entire solicitation before submitting proposal.

1.2.3 Availability

The selected Bidder must meet the requirements of this solicitation and be available to start work on the Contract Execution date as determined by the Negotiation Process.

1.2.4 Financial Stability

In order to minimize the potential risk of default due to financial issues, the State reserves the right to request additional documentation during the RFP process and throughout the life of the awarded Contract.

1.2.5 Americans with Disabilities Act

To comply with the nondiscrimination requirements of the Americans with Disabilities Act, it is the policy of the State to make every effort to ensure that its programs, activities, and services are available to all persons, including persons with disabilities.

For persons with a disability needing a reasonable accommodation to participate in the procurement process, or for persons having questions regarding reasonable accommodations of the procurement process, you may contact the Procurement Official. Persons with a disability needing a reasonable accommodation may also contact the State using the California Relay Service telephone numbers listed below.

Important: To ensure that we can meet your need, it is best that we receive your request for reasonable accommodations at least ten (10) State business days before the scheduled event (e.g. meeting, conference, workshop, or deadline due date for procurement documents).

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The California Relay Service telephone numbers are:

Voice: 1-800-735-2922 or 1-888-877-5379 TTY: 1-800-735-2929 or 1-888-877-5378 Speech to Speech: 1-800-854-7784

1.3 TERM OF CONTRACT

Effective upon approval of the OTSI, the initial term of the Contract resulting from this solicitation will be five (5) years (core term).

The Contract term shall commence upon receipt of required State and federal approvals, or the agreed upon start date, whichever is later.

The State, at its sole discretion, may exercise its option to execute five (5) one-year optional extensions for a maximum Contract term of ten (10) years.

1.4 KEY ACTION DATES AND TIMES

The Key Action Dates and Times in the following table contain the important actions, dates and times associated with this solicitation by which the actions must be taken or completed. If the State finds it necessary to change any of these dates prior to the submission of the proposal, it will be accomplished via an addendum to this solicitation.

Table 1-1: Key Action Dates and Times

KEY ACTION DATES

Item # Action Date

1. Release of Solicitation 9/17/2025

2. Last day to submit questions for clarification of solicitation for Bidder’s Conference 10/10/2025

3. Mandatory Bidders Conference 10/15/2025

4.

Last day to submit:

Intent to Bid (Appendix B-3, INTENT TO BID FORM) & Signed Confidentiality Statement (Appendix B-4, CONFIDENTIALITY STATEMENT FORM)

10/22/2025

5.

Last day to:

Submit written questions or request for changes regarding the RFP prior to submittal of proposals (See Section 1.5.1)

11/3/2025

6. State issues responses to bidder questions and bidder requests for change to the RFP requirements. 12/3/2025

7. Last day to submit proposals 1/5/2026 by 5 p.m. PT

8. Begin Evaluation Process 1/6/2026

9. Notification of Award1 6/23/2026

10. Contract Award1 8/24/2026

11. Contract Execution1 8/25/2026 1 All dates after submission of proposals are approximate and may be adjusted as conditions indicate without addendum to this solicitation. These dates will also be determined through the Negotiation Process.

1.4.1 Mandatory Bidders Conference

A mandatory Bidders Conference will be held, during which prospective bidders will meet with State personnel and discuss the content of the solicitation and the procurement process. The time, date, and place of the conference are specified in Cal eProcure. Written questions

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Vendors who wish to submit a proposal in response to this RFP must attend the Bidders Conference in person. Proposals submitted by vendors who do not attend the Bidders Conference will be rejected.

If questions are asked at or before the conference, prospective bidders will be asked to submit the question(s) in writing to the Procurement Official, specified in RFP Section 1.5, PROCUREMENT OFFICIAL AND CONTACT INFORMATION. Answers to these questions will be published in a question-and-answer set. Oral responses shall not be binding on the State. A transcript of the Bidders Conference will not be created.

1.4.2 Intention to Bid

Vendors who intend to submit a proposal must submit a notification of Intent to Bid on this procurement in accordance with instructions provided in RFP Section 2, RULES GOVERNING

COMPETITION.

Only those vendors acknowledging interest in this solicitation will continue to receive additional correspondence throughout this procurement.

• The letter should identify the contact person for the solicitation process, plus include an e-mail address, and phone number.

• See Appendix B-3, INTENT TO BID FORM.

• The State is responsible for notifying one (1) contact person per bidder. Information related to a bidder will be given to the designated contact person.

• It shall be the bidder's responsibility to immediately notify, in writing, the Procurement

Official identified in RFP Section 1.5, PROCUREMENT OFFICIAL AND CONTACT INFORMATION, regarding any revision to the information.

• The State shall not be responsible for proposal correspondence not received by the bidder if the bidder fails to notify the State, in writing, about any change pertaining to the designated contact person.

1.5 PROCUREMENT OFFICIAL AND CONTACT INFORMATION

This procurement is conducted by the OTSI CalHEERS Procurement Team. Bidders are directed to communicate with the Procurement Official, as a single point of contact, to request access for RFP related materials, proposals, and all other formal correspondence regarding this procurement. The Procurement Official and the mailing address for that official are listed below.

1.5.1 General E-mail Inquiries

All inquiries should be sent electronically, unless otherwise specified in this solicitation, to:

Alina Corpus, Procurement Official Office of Technology and Solutions Integration Phone: (916) 634-2905 E-mail: CalHEERSProcurement@otsi.ca.gov

1.5.2 Deliveries by Mail

Alina Corpus

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CalHHS, Office of Technology & Solutions Integration (OTSI) California Healthcare Eligibility, Enrollment, and Retention System (CalHEERS) 2329 Gateway Oaks, Suite 250 Sacramento, CA 95833

1.5.3 Access to Bidders’ Library/Submit RFP Question or Request for Change To obtain a User ID and password for RFP related materials (Bidders’ Library), the ability to submit questions, and/or the ability to submit a request for change, bidders must sign and submit Appendix B-4, CONFIDENTIALITY STATEMENT FORM and Appendix B-5, ACCESS AUTHORIZATION FORM to the Procurement Official.

It is the bidder’s responsibility to provide the Procurement Official the required documentation to obtain a User ID and password for SharePoint access. The bidder must identify a single point of contact, e-mail, street address, and phone number. The User ID, password, and instructions will be provided to the single company contact within five (5) State business days after receipt of required documentation.

This will be the sole method for bidders to submit RFP questions, clarifications, and/or Request for Change. If questions, clarifications, and/or Request for Change are submitted using another method, bidders will be redirected to the SharePoint site.

1.6 BIDDERS’ LIBRARY

1.6.1 Use and Purpose

The State will make available a Bidders’ Library containing reference documentation that bidders may review and use to prepare its proposals. The State will provide updated information as it becomes available during the course of the solicitation. The State will ensure the latest documents are provided in the Bidders’ Library.

Bidders are encouraged to review the information in the Bidders’ Library to gain a thorough understanding of CalHEERS and the SDMO effort in the business and technical environments in which it operates. It is each bidder’s responsibility to check for updates to the Bidders’ Library.

Bidders are advised to review and use the CalHEERS architecture and technical composition data provided in the bidders' library for the development of their proposals and are cautioned against using external sources of information or making assumptions about the system without reaching out to the State for confirmation in the form of a submitted question to the procurement official identified in RFP Section GENERAL E-MAIL INQUIRIES 1.5.1 above. It is the responsibility of bidders to contact the Procurement Official for a User ID, password, and link for access to the Bidders’ Library. Bidders should check back frequently for updates to the Bidders’ Library. Bidders are strictly forbidden to share access information with anyone.

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Section 2 - Rules Governing Competition September 17, 2025

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Section 2 Rules Governing Competition

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SECTION 2 – RULES GOVERNING COMPETITION

2 RULES GOVERNING COMPETITION

2.1 IDENTIFICATION AND CLASSIFICATION OF REQUIREMENTS

2.1.1 Requirements

2.1.2 Desirable Items

2.2 BIDDING REQUIREMENTS AND CONDITIONS

2.2.1 General

2.2.2 Irrevocable Offer

2.2.3 RFP Document

2.2.4 Examination of Work

2.2.5 Questions Regarding the RFP

2.2.6 Mandatory Bidders Conference

2.2.7 Intention to Bid

2.2.8 Addenda

2.2.9 Bonds

2.2.10 Discounts

2.2.11 Loss Leader

2.2.12 Joint Venture Submittals

2.2.13 Fair Employment and Housing Commission Regulations

2.2.14 Exclusion of Conflict of Interest

2.2.15 Seller’s Permit

2.2.16 Disclosure of Financial Interests

2.2.17 Unfair Practices Act and Other Laws

2.2.18 Plastic Trash Bag Certification Violations

2.2.19 Air or Water Pollution Violations

2.3 BIDDING STEPS

2.3.1 Negotiations

2.3.2 Compliance Phase (Not Applicable)

2.3.3 Confidentiality

2.3.4 Submission of Proposals

2.3.5 Rejection of Proposals

2.3.6 Evaluation and Selection Process

2.3.7 Protests

2.3.8 Award of Contract

2.3.9 Debriefing

2.4 CONTRACTUAL INFORMATION

2.4.1 Contract Form

2.4.2 Specific Terms and Conditions (Not applicable)

2.4.3 Approval of Proposed Contract

2.4.4 Contacts for Information

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2 RULES GOVERNING COMPETITION

2.1 IDENTIFICATION AND CLASSIFICATION OF REQUIREMENTS

2.1.1 Requirements

The State has established certain requirements with respect to proposals to be submitted by prospective bidders. The use of "shall," "must," or "will" (except to indicate simple futurity) in the RFP indicates a requirement or condition which is Mandatory. A deviation, if not material, may be waived by the State. A deviation from a requirement is material if the deficient response is not in substantial accord with the RFP requirements, provides an advantage to one bidder over other bidders, or has a potentially significant effect on the delivery, quantity or quality of items proposed, amount paid to the vendor, or on the cost to the State. Material deviations cannot be waived.

2.1.2 Desirable Items

The words “should” or “may” in the RFP indicate desirable attributes or conditions but are nonmandatory in nature. Deviation from, or omission of, such a desirable feature, even if material will not in itself cause rejection of the proposal.

2.2 BIDDING REQUIREMENTS AND CONDITIONS

2.2.1 General

This RFP, the evaluation of responses, and the award of any resultant contract shall be made in conformance with current competitive bidding procedures as they relate to the procurement of goods and services by public bodies in the State of California.

2.2.2 Irrevocable Offer

A bidder's Final Proposal is an irrevocable offer for 180 calendar days following the scheduled date for submission of Final Proposal or Best and Final Offer (BAFO). A Bidder may extend the offer in the event of a delay of contract award.

2.2.3 RFP Document

This RFP includes, in addition to an explanation of the State's requirements, which must be met, instructions which prescribe the format and content of proposals to be submitted and the model of the contract to be executed between the State and the successful Bidder. Refer to the following RFP sections for the full scope of Bidder requirements:

• Section 1, INTRODUCTION & OVERVIEW

• Section 2, RULES GOVERNING COMPETITION

• Section 5, ADMINISTRATIVE REQUIREMENTS

• Section 6, BIDDER REQUIREMENTS

• Section 7, COST

• Section 8, PROPOSAL FORMAT

• Section 9, EVALUATION

If a bidder discovers any ambiguity, conflict, discrepancy, omission, or other error in this RFP, the bidder shall immediately notify of such error in writing and request clarification or modification of the document. Refer to RFP Section 1.5.3, ACCESS TO BIDDERS’

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LIBRARY/SUBMIT RFP QUESTION OR REQUEST FOR CHANGE on how to request access with the Procurement Official.

This solicitation document is an RFP, the word "proposal" as used throughout is intended to mean "proposed," "propose" or "proposal" as appropriate. Modifications will be made by addenda issued pursuant to the Addenda Section below. Such clarifications shall be given by written notice to all vendors who have identified themselves as bidders to the Procurement Official identified in RFP Section 1, INTRODUCTION & OVERVIEW, without divulging the source of the request for same. Insofar as practicable, the State will give such notices to other interested vendors, but the State shall not be responsible therefore.

If the RFP contains an error known to the Bidder, or an error that reasonably should have been known, the bidder shall propose at its own risk. If the Bidder fails to notify the State of the error prior to the date fixed for submission of proposals, and is awarded the contract, the Bidder shall not be entitled to additional compensation or time by reason of the error or its later correction.

2.2.4 Examination of Work

The bidder should carefully examine the entire RFP and any addenda thereto, and all related materials and data referenced in the RFP or otherwise available to the bidder and should become fully aware of the nature and location of the work, the quantities of the work, and the conditions to be encountered in performing the work.

2.2.5 Questions Regarding the RFP

2.2.5.1 Clarification Questions

Bidders requiring clarification of the intent or content of this RFP or on procedural matters regarding the competitive proposal process may request clarification by submitting questions in our SharePoint site. Refer to RFP Section 1.5.3, ACCESS TO BIDDERS’ LIBRARY/SUBMIT RFP QUESTION OR REQUEST FOR CHANGE on how to request access with the Procurement Official.

This will be the sole method for bidders to submit RFP questions, clarifications, and/or Request for Change. If questions, clarifications, and/or Request for Change are submitted using another method, bidders will be redirected to the SharePoint site.

Question and Answer (Q&A) sets will be provided to all bidders without identifying the submitters. At the sole discretion of the State, questions may be paraphrased by the State for clarity. These will be posted on Cal eProcure.

2.2.5.2 Confidential Questions

A bidder who desires clarification or further information on the content of the RFP, but whose questions relate to the proprietary aspect of that bidder’s proposal and which, if disclosed to other bidders, would expose that bidder’s proposal, may submit such questions in the same manner as above, but also marked “CONFIDENTIAL,” and not later than the scheduled date identified in RFP Section 1.4, KEY ACTION DATES AND TIMES, to ensure a response.

The bidder must explain why any questions are sensitive in nature. If the State concurs that the disclosure of the question or answer would expose the bidder’s proprietary information, the question will be answered, and both the question and answer will be kept in confidence. If the State does not concur with the proprietary aspect of the question, the question will not be answered in this manner and the bidder will be so notified.

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2.2.5.3 Requests for Changes to RFP Requirements

If the bidder believes that one or more of the RFP requirements is onerous, unfair, or imposes unnecessary constraints to the bidder in proposing less costly or alternate solutions, the bidder may request a change to the RFP in the same manner as above, Clarification Questions. This will be the sole method for bidders to submit RFP questions, clarifications, and/or Request for Change. If questions, clarifications, and/or Request for Change are submitted using another method, bidders will be redirected to the SharePoint site.

The bidder must explain the recommended change(s), facts substantiating this belief, and reasons for making the recommended change. Refer to RFP Section 1.5.3, ACCESS TO BIDDERS’ LIBRARY/SUBMIT RFP QUESTION OR REQUEST FOR CHANGE on how to submit such request. The State, at its sole discretion, will determine if the recommended changes will be accepted.

Request for changes and State’s response will be published as a Q&A set.

Oral answers shall not be binding on the State.

2.2.6 Mandatory Bidders Conference

A mandatory Bidders Conference will be held, during which prospective bidders will be afforded the opportunity to meet with State personnel and discuss the content of the RFP and the procurement process.

• The time, date, and place of such conference is specified in Cal eProcure.

• Written questions received prior to the cutoff date for submission of such questions may be answered at the conference without divulging the source of the query.

• The State may also accept oral questions during the conference and will make a reasonable attempt to provide answers prior to the conclusion of the conference.

• If questions asked at the conference cannot be adequately answered during the discussion bidders will be asked to submit the questions(s) in writing to the Procurement Official.

• Answers will be published in a Q&A set. Oral answers shall not be binding on the State.

2.2.7 Intention to Bid

Vendors who would like to participate in the bidding process are required to state their intention by the date specified in RFP Section 1.4, KEY ACTION DATES AND TIMES with respect to submission of proposals.

The State is also interested as to a vendor's reason(s) for not submitting a proposal. For example, requirements that cannot be met or unusual terms and conditions that arbitrarily raise costs. Vendors who are not intending to participate in the bidding process are asked to share their reasons by the date specified in RFP Section 1.4, KEY ACTION DATES AND TIMES.

If a vendor intends to submit a bid, the letter should include the additional information identified in RFP Section 1.4.2, INTENTION TO BID. If vendors have indicated significant problems with the RFP requirements, the State will examine the stated reasons for the problems and will attempt to resolve any issues in contention, if not contrary to the State's interest, and will amend the RFP if appropriate. All suppliers who have submitted an intention will be advised by the State of any actions taken as a result of the suppliers' responses.

Hereafter, for the purposes of the instructions of this RFP, all vendors who have indicated their intent to submit a proposal are called bidders until such time that the bidder withdraws, or other

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2.2.8 Addenda

The State may modify the RFP prior to the date fixed for Contract Award by issuance of an addendum. Addenda will be numbered consecutively and posted to Cal eProcure. If any bidder determines that an addendum unnecessarily restricts its ability to propose, the bidder is allowed five (5) business days to submit a Request for Change to the addendum.

2.2.9 Bonds

The State reserves the right to require a faithful performance bond or other security document as specified in the RFP from the bidder in an amount not to exceed the amount of the contract.

In the event a surety bond is required by the State that has not been expressly required by the specification, the State will reimburse the bidder, as an addition to the purchase price, in an amount not exceeding the standard premium on such bond.

2.2.10 Discounts

In connection with any discount offered, except when provision is made for a testing period preceding acceptance by the State, time will be computed from date of delivery of the supplies or equipment as specified, or from date correct invoices are received in the office specified by the State if the latter date is later than the date of delivery. When provision is made for a testing period preceding acceptance by the State, date of delivery shall mean the date the supplies or equipment are accepted by the State during the specified testing period. Payment is deemed to be made, for the purpose of earning the discount, on the date of mailing the State warrant or check.

Cash discounts offered by bidders for the prompt payment of invoices will not be considered in evaluating offers for award purposes; however, all offered discounts will be taken if the payment is made within the discount period, even though not considered in the evaluation of offers.

2.2.11 Loss Leader

“Loss leader” is defined in section 17030 of the California Business and Professions Code (BPC) as any article or product sold at less than cost: (a) Where the purpose is to induce, promote or encourage the purchase of other merchandise; or (b) Where the effect is a tendency or capacity to mislead or deceive purchasers or prospective purchasers; or (c) Where the effect is to divert trade from or otherwise injure competitors.

It is unlawful for any person engaged in business within this State to sell or use any article or product as a “loss leader” as defined in section 17030 of the California Business and Professions Code.

2.2.12 Joint Venture Submittals

As applied to this RFP, the term “joint venture” means is a partnership between the persons or companies formed for the purpose of submitting a proposal and of performing the Contract if one is awarded to the joint venture.

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If the Contract is awarded to a joint venture, it shall be one indivisible contract. The joint bidders must designate, in writing, one individual having authority to represent them in all matters relating to the contract that will be solely liable for the performance of the entire contract. The State assumes no responsibility or obligation for the division of orders or purchases among joint bidders.

2.2.13 Fair Employment and Housing Commission Regulations

California Government Code section 12990 requires all State bidders to have implemented a Nondiscrimination Program before entering into any contract with the State. The Civil Rights Department randomly selects and reviews State bidders to ensure their compliance with the law. The Civil Rights Department periodically disseminates a list of vendors who have not complied. Any vendor so identified is ineligible to enter into any State contract.

2.2.14 Exclusion of Conflict of Interest

No consultant shall be paid out of State funds for developing recommendations on the acquisition of information technology (IT) products or services or assisting in the preparation of a feasibility study if that consultant is to be a source of such acquisition or could otherwise directly and/or materially benefit from State adoption of such recommendations or the course of action recommended in the feasibility study. Further, no consultant shall be paid out of State funds for developing recommendations on the disposal of State surplus IT products if that consultant would directly and/or materially benefit from State adoption of such recommendations.

2.2.15 Seller’s Permit

This RFP is subject to all requirements set forth in sections 6452, 6487, 7101 and 18510 of the Revenue and Taxation Code, and section 10295.1(b) of the California Public Contract Code, requiring bidders to provide a copy of their California seller’s permit or certification of registration, and, if applicable, the permit or certification of all participating affiliates issued by the California Department of Tax & Fee Administration (CDTFA). Unless otherwise specified in this RFP, a copy of the bidder’s seller’s permit or certification of registration, and, if applicable, the permit or certification of all participating affiliates, must be submitted within five (5) State business days of the State’s request. Failure of the bidder to comply by supplying the required documentation will cause the bidder’s proposal to be considered nonresponsive and the proposal rejected.

2.2.16 Disclosure of Financial Interests

Proposals in response to State procurements for assistance in preparation of feasibility studies or the development of recommendations for the acquisition of IT products and services must disclose any financial interests (e.g., service contract, Original Equipment Manufacturer (OEM) agreements, remarketing agreements) that may foreseeably allow the individual or organization submitting the proposal to materially benefit from the State’s adoption of a course of action recommended in the feasibility study or the acquisition recommendations. If, in the State’s judgment, the financial interest will jeopardize the objectivity of the recommendations, the State may reject the proposal.

2.2.17 Unfair Practices Act and Other Laws

Bidder warrants that its proposal complies with the Unfair Practices Act (California Business and Professions Code section 17000 et seq.) and all applicable State and Federal laws and

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2.2.18 Plastic Trash Bag Certification Violations

California Public Resources Code section 42290 et seq. prohibits the State from contracting with any vendor, manufacturer, or wholesaler, and any of its divisions, subsidiaries, or successors that have been determined to be noncompliant to the recycled content plastic trash bag certification requirements. This includes award of a State contract or subcontract or renewal, extension, or modification of an existing contract or subcontract. Prior to award the State shall ascertain if the intended awardee or proposed Subcontractor is a business identified on the current California Integrated Waste Management Board noncompliant list(s). In the event of any doubt of the status or identity of the business in violation, the State will notify the California Integrated Waste Management Board of the proposed award and afford the California Integrated Waste Management Board the opportunity to advise the State. No award will be made when either the bidder or a Subcontractor has been identified either by published list or by advice from the California Integrated Waste Management Board, to be in violation of certification requirements.

2.2.19 Air or Water Pollution Violations

Unless the contract is less than $25,000 or with a noncompetitively bid contractor, California Government Code section 4477 prohibits the State from contracting with a person, including a corporation or other business association, who has been determined to be in violation of any state or federal air or water pollution control law.

Prior to an award, the State shall ascertain if the intended awardee is a person included in notices from the Boards. In the event of any doubt of the intended awardee’s identity or status as a person who is in violation of any state or federal air or water pollution law, the State will notify the appropriate Board of the proposed award and afford the Board the opportunity to advise the Department that the intended awardee is such a person.

No award will be made to a person who is identified either by the published notices or by advice, as a person in violation of state or federal air or water pollution control laws.

2.3 BIDDING STEPS

2.3.1 Negotiations

The State of California reserves the right to negotiate. This solicitation is being conducted under the policies and procedures, per California Government Code section 100505 and the Negotiation Process. The purpose of the Negotiation Process is to maximize the State’s ability to obtain a best value solution, based on the requirements and the evaluation factors set forth in the solicitation.

2.3.2 Compliance Phase (Not Applicable)

2.3.3 Confidentiality

THE CONTENTS OF ALL PROPOSALS, CORRESPONDENCE, AGENDA, MEMORANDA,

WORKING PAPERS, OR ANY OTHER MEDIUM WHICH DISCLOSES ANY ASPECT OF A

BIDDER'S PROPOSAL SHALL BE HELD IN THE STRICTEST CONFIDENCE UNTIL

CONTRACT EXECUTION. BIDDERS SHOULD BE AWARE THAT MARKING A DOCUMENT

"CONFIDENTIAL" OR "PROPRIETARY" IN A PROPOSAL MAY EXCLUDE IT FROM

CONSIDERATION FOR AWARD AND WILL NOT KEEP THAT DOCUMENT FROM BEING

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RELEASED AFTER NOTICE OF AWARD AS PART OF THE PUBLIC RECORD, UNLESS A

COURT HAS ORDERED THE STATE NOT TO RELEASE THE DOCUMENT. THE CONTENT

OF ALL WORKING PAPERS AND DISCUSSIONS RELATING TO THE BIDDER'S PROPOSAL

SHALL BE HELD IN CONFIDENCE INDEFINITELY UNLESS THE PUBLIC INTEREST IS

BEST SERVED BY AN ITEM'S DISCLOSURE BECAUSE OF ITS DIRECT PERTINENCE TO A

DECISION, AGREEMENT OR THE EVALUATION OF THE PROPOSAL. ANY DISCLOSURE

OF CONFIDENTIAL INFORMATION BY THE BIDDER IS A BASIS FOR REJECTING THE

BIDDER'S PROPOSAL AND RULING THE BIDDER INELIGIBLE TO FURTHER

PARTICIPATE. ANY DISCLOSURE OF CONFIDENTIAL INFORMATION BY A STATE

EMPLOYEE IS A BASIS FOR DISCIPLINARY ACTION, INCLUDING DISMISSAL FROM

STATE EMPLOYMENT, AS PROVIDED BY CALIFORNIA GOVERNMENT CODE SECTION

19570 ET SEQ. TOTAL CONFIDENTIALITY IS PARAMOUNT; IT CANNOT BE OVER

EMPHASIZED.

2.3.4 Submission of Proposals

The instructions contained herein apply to the Bidder’s Proposal. The Proposal must be complete, including all cost information and required signatures.

2.3.4.1 2.3.4.1 Preparation Proposals are to be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Expensive bindings, colored displays or promotional materials are not necessary or desired. EMPHASIS SHOULD BE

CONCENTRATED ON CONFORMANCE TO THE RFP INSTRUCTIONS, RESPONSIVENESS

TO THE RFP REQUIREMENTS, AND ON COMPLETENESS AND CLARITY OF CONTENT.

2.3.4.2 2.3.4.2 Bidder’s Cost Costs for developing proposal are the responsibility entirely of the bidder and shall not be chargeable to the State.

2.3.4.3 2.3.4.3 Completion of Proposals Proposals must be complete in all respects as required by RFP Section 8, PROPOSAL FORMAT. A proposal may be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. A proposal must be rejected if any such defect or irregularity constitutes a material deviation from the RFP requirements. The proposal must contain all costs required by RFP Section 7, COST, setting forth a unit price and total price for each unit price item, and a total price for each lump sum price item in the schedule, all in clearly legible figures.

2.3.4.4 2.3.4.4 False or Misleading Statements Proposals that contain false or misleading statements, or that provide references that do not support an attribute or condition claimed by the bidder, may be rejected. If, in the opinion of the State, such information was intended to mislead the State in its evaluation of the proposal, and the attribute, condition, or capability is a requirement of this RFP, it will be the basis for rejection of the proposal.

2.3.4.5 2.3.4.5 Signature of Proposal The bidder must submit a cover letter (which shall be considered an integral part of the proposal) on the company’s official letterhead that includes a statement that substantiates that

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Rev 8.0 Page 10 of 14 the individual who signs the letter is authorized to bind the bidding firm contractually and a statement that the bidder commits to fulfilling the requirements of the RFP. The signature block must indicate the title or position that the individual holds in the firm. An unsigned proposal may be rejected.

2.3.4.5.1 Electronic Signatures

Each party of this Proposal agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal. Civ. Code §§ 1633.1 to 1633.17), for executing this Proposal. The parties further agree that the electronic signatures of the parties included in this Proposal are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency.

Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (h) of Section

1633.2 of the Civil Code.

2.3.4.6 2.3.4.6 Delivery of Proposals Email Submissions The Proposal must be delivered physically and electronically to the Procurement Official (listed in RFP Section 1, INTRODUCTION & OVERVIEW).

Electronic submissions of the Proposal must be sent to the Procurement Official’s email address at: CalHEERSProcurement@otsi.ca.gov

For procurement purposes, emailed responses will be considered properly “sealed” if received prior to the time and date specified in Section 1.4, KEY ACTION DATES AND TIMES.

Solicitation responses sent to any other email will not be considered. If necessary, multiple emails can be submitted as long as the subject of the email contains, “Part X of Y” (X identifies the number assigned to this email, and Y identifies the total number of emails expected).

Physical submission of the Proposal shall be mailed or delivered to the Procurement Official (listed in RFP Section 1, INTRODUCTION & OVERVIEW). If mailed, it is suggested that you use certified or registered mail with return receipt requested as delivery of documents is at the Bidder’s own risk of untimely delivery, lost mail, etc.

The complete Proposal must be submitted in the number of copies indicated in the RFP Section 8.2, PROPOSAL CONTENT and no later than the dates and times specified in RFP Section 1.4, KEY ACTION DATES AND TIMES. One copy must be clearly marked "Master." The overall package shall be sealed, labeled, and properly identified as outlined in RFP Section 8.6.6, PACKAGING AND LABELING. Bidders should be aware that marking the proposal “confidential” or “proprietary” may exclude it from consideration for award. Proposals, both electronic and physical, not postmarked or received by the date and time specified in RFP Section 1.4, KEY ACTION DATES AND TIMES, or not sealed, will be rejected. Proposals submitted under improperly marked covers may be rejected. If discrepancies are found between two or more copies of the proposal, the proposal may be rejected. However, if not so rejected, the Master Copy will provide the basis for resolving such discrepancies. If one copy of the

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Rev 8.0 Page 11 of 14 proposal is not clearly marked "Master Copy," the State may reject the Proposal; however, the State may at its sole option select, immediately after proposal opening, one copy to be used as the Master Copy.

2.3.4.7 2.3.4.7 Withdrawal and Resubmission/Modification of Proposals A bidder may withdraw its proposal at any time prior to the proposal submission date and time specified in RFP Section 1.4, KEY ACTION DATES AND TIMES, by submitting a written notification of withdrawal signed by the bidder authorized in accordance with Paragraph 2.3.4.5, Signature of Proposal, to the Procurement Official. The bidder may thereafter submit a new or modified proposal prior to such proposal submission date and time. Modification offered in any other manner, oral or written, will not be considered. Other than as allowed by law, proposals cannot be changed or withdrawn after the date and time designated for receipt, except as provided in this section.

2.3.5 Rejection of Proposals

The State may reject any or all proposals and may waive any immaterial deviation or defect in a proposal. The State's waiver of any immaterial deviation or defect shall in no way modify the RFP documents or excuse the bidder from full compliance with the RFP specifications if awarded the contract.

2.3.6 Evaluation and Selection Process

Proposals will be evaluated according to the procedures contained in the RFP Section 9, EVALUATION. This process may also apply as the State continues negotiations with up to the three (3) highest scored Proposals and the possible submission of a bidder(s)’ Best and Final Offer (BAFO). Upon completing the evaluation of the BAFOs, final selection will be determined on the responsive and responsible bidder submitting the Highest Total Scored bid, after preferences and incentives are considered. The State reserves the right at any time to reject any or all proposals.

2.3.6.1 2.3.6.1 Evaluation Questions During the evaluation and selection process, the State may desire the presence of a bidder’s representative for answering specific questions, orally and/or in writing. During the evaluation of Proposals, the State may ask the bidder to clarify their submitted information.

2.3.6.2 2.3.6.2 Errors in the Proposal An error in the proposal may cause the rejection of that proposal; however, the State may at its sole option retain the proposal and make certain corrections.

In determining if a correction will be made, the State will consider the conformance of the proposal to the format and content required by the RFP, and any unusual complexity of the format and content required by the RFP.

1. If the Bidder’s intent is clearly established based on review of the complete proposal submittal, the State may at its sole option correct an error based on that established intent.

2. The State may at its sole option correct obvious clerical errors.

3. The State may at its sole option correct discrepancy and arithmetic errors on the basis that if intent is not clearly established by the complete proposal submittal the Master

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Copy shall have priority over additional copies, the proposal narrative shall have priority over the contract, the contract shall have priority over the cost sheets, and within each of these, the lowest level of detail will prevail. If necessary, the extensions and summary will be recomputed accordingly, even if the lowest level of detail is obviously misstated.

The total price of unit-price items will be the product of the unit price and the quantity of the item. If the unit price is ambiguous, unintelligible, uncertain for any cause, or is omitted, it shall be the amount obtained by dividing the total price by the quantity of the item.

4. The State may at its sole option correct errors of omission, and in the following four situations, the State will take the indicated actions if the bidder’s intent is not clearly established by the complete proposal submittal.

a) If an item is described in the narrative and omitted from the contract and cost data provided in the proposal for evaluation purposes, it will be interpreted to mean that the item will be provided by the bidder at no cost.

b) If a minor item is not mentioned at all in the proposal and is essential to satisfactory performance, the proposal will be interpreted to mean that the item will be provided at no cost.

c) If a major item is not mentioned at all in the proposal, the proposal will be interpreted to mean that the bidder does not intend to supply that item.

d) If a major item is omitted, and the omission is not discovered until after contract award, the bidder shall be required to supply that item at no cost.

The determination of whether an item is minor or major is the responsibility of the State.

5. If a bidder does not follow the instructions for computing costs not related to the contract

(e.g., State personnel costs), the State may reject the proposal, or at its sole option, recompute such costs based on instructions contained in the RFP.

If the re-computations or interpretations, as applied in accordance with this section, subsection 2.3.6.2, ERRORS IN THE PROPOSAL, result in significant changes in the amount of money to be paid to the bidder (if awarded the contract) or in a requirement of the Bidder to supply a major item at no cost, the Bidder will be given the opportunity to promptly establish the grounds legally justifying relief from its proposal.

IT IS ABSOLUTELY ESSENTIAL THAT BIDDERS CAREFULLY REVIEW THE COST

ELEMENTS IN THEIR FINAL PROPOSAL, SINCE THEY WILL NOT HAVE THE OPTION TO

CORRECT ERRORS AFTER THE TIME FOR SUBMITTAL.

In the event an ambiguity or discrepancy between the general requirements described in RFP Section 4, PROPOSED SYSTEM and the specific bidder requirements set forth in RFP Section 6, BIDDER REQUIREMENTS is detected after the opening of proposals, RFP Section 6, BIDDER REQUIREMENTS and the bidder's response thereto, shall have priority over RFP Section 4, PROPOSED SYSTEM and the bidder's response thereto. Refer to prior Paragraph 2.2.2, RFP document, regarding immediate notification to State contact when ambiguities, discrepancies, omissions, etc., are discovered.

At the State’s sole discretion, it may declare the Proposal(s) to be a draft Proposal(s) in the event that the State determines that Proposals from all bidders contain material deviations, or if it is in the best interest of the State. If draft Proposals are declared, the State may issue an addendum to the RFP. Should this occur, confidential discussions will be held with bidders who are interested in continuing to be considered. Each bidder will be notified of the due date for the submission of a new Proposal to the State. This submission must conform to the requirements of the original RFP as amended by any subsequent addenda. The new Proposals will be

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