BPM005375_Solicitation_Requirements_rev1.pdf

Notice Page Page 1 of 55 Rev. 12.14.2022

Request for Proposal Notice Page

BPM005375

State of Arizona Department of Corrections, Rehabilitation & Reentry Procurement Services 701 E. Jefferson Street

Phoenix, AZ 85034

Solicitation Number: BPM005375

Description: Electronic Payment Transaction Processing Services

Solicitation Due Date and Time: October 6, 2023 at 3:00 P.M. (Arizona Time)

Pre-Offer Conference: A Pre-Offer Conference will not be conducted

Contract Type: Fixed Price

Contract Term: Three (3) Years with Options for Two (2) Additional Years

In accordance with Arizona Revised Statutes § 41-2534, Competitive Sealed proposals for the materials or services specified, will be received by the Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR) through the State's e-Procurement System, Arizona Procurement Portal (APP) at https://app.az.gov until the “Bid/Offer Due Date” indicated in “The State’s e-Procurement System” for the Solicitation No. shown at the top of this page. Proposals must be in the ADCRR’s possession online no later than that deadline.

LATE PROPOSALS WILL NOT BE CONSIDERED. No extension or grace period will be given for delays or incomplete proposals caused by internet connectivity problems, file uploading difficulties, or misunderstanding of the requirements or procedures for online submission in “The State’s e-Procurement System”.

Submit technical inquiries about navigating and/or submitting proposals in the State’s e-Procurement System to the State’s e- Procurement System Help Desk by phone at (602) 542-7600, option 2; or by email to app@azdoa.gov

It is the responsibility of the supplier/offeror to routinely check the APP website for Solicitation Amendments. Additional instructions for preparing an Offer are included in this solicitation.

Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the Solicitation contact person. Requests shall be made as early as possible to allow time to arrange for the accommodation.

OFFERORS ARE STRONGLY ENCOURAGED TO CAREFULLY READ THE ENTIRE SOLICITATION.

*An Equal Employment Opportunity Agency* https://app.az.gov/ https://app.az.gov/ mailto:app@azdoa.gov

Solicitation No. BPM005375 Electronic Payment Transaction Processing Services

State of Arizona Department of Corrections, Rehabilitation & Reentry Procurement Services

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Scope of Work

1. Introduction

1.1. The Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR) Vision and Mission Statements are:

1.1.1. Vision: The Arizona Department of Corrections, Rehabilitation and Reentry is committed to creating a safe, secure, and humane correctional environment that provides a healthy environment for staff and offers the incarcerated population opportunities to learn and practice the necessary skills for success upon release.

1.1.2. Mission: To enhance public safety across Arizona through modern, effective correctional practices and meaningful engagements.

2. Task

The intent of this solicitation is to allow ADCRR to enter into a contract(s) for the procurement of Electronic Payment Transaction Processing Services, as specified within the Scope of Services.

3. Definitions

For the purposes of this RFP, the following definitions shall apply:

3.1. “Chief Procurement Officer” means the ADCRR Chief Procurement Officer.

3.2. “Constituents” means public persons involved in the payment for and/or the use of the electronic payment transaction services solicited in this RFP.

3.3. “Department” means Arizona Department of Corrections, Rehabilitation & Reentry (same as

“ADCRR”)

4. Scope of Services

4.1. PURPOSE: ADCRR intends to establish a term contract with a firm(s) to provide Electronic Payment Transaction Processing (EPTP) services as a convenience for use by the general public in conducting transactions for or on behalf of persons under the care, custody and/or supervision of ADCRR. Any resulting contract(s) shall be issued on a fixed-price basis, for a three (3) year period, with options to extend the term up to an additional two (2) years.

4.2. BACKGROUND: ADCRR conducts monetary transactions to 1) service inmate trust accounts of approximately 35,000 individuals in State custody, 2) collect fees for visitor background check processing, and 3) collect a variety of Community Supervision payments and fees associated with approximately 5,300 individuals under community supervision.

The table below represents activity processed through the current EPTP services over a recent twelve (12) month period:

Electronic Payment Transaction Processing Services

State of Arizona Department of Corrections, Rehabilitation & Reentry Procurement Services

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Weekly Transactions

Weekly Volume

Annual Transactions

Annual Volume

Inmate Trust Accounts: 12,749 $962,738 662,934 $50,062,397 Community Corrections Fees: 267 $22,747 13,863 $1,182,853 Background Check Fees: 260 $6,496 13,512 $337,785

Totals: 13,276 $991,981 690,309 $51,583,035

4.3. SCHEDULE: All equipment and services are to be installed, operational, and ready for final integration testing with ADCRR’s system no later than Thursday, November 30, 2023. All payment transaction services for public use are to begin no sooner than Sunday, December 31, 2023, and no later than Monday, January 1, 2024 (which will be the Effective Date of any resultant contract); more precise schedule requirements will be communicated to Contractor(s) at a later date. Offeror should clearly state whether it can meet this schedule. Any Offeror unable or unwilling to accept this schedule may be determined not susceptible for award.

4.4. UTILIZATION OF CONTRACTOR’S SERVICES: Use of Contractor’s services is at the discretion of the public at large. ADCRR makes no representation or guarantee of any kind concerning the public’s use of Contractor’s payment transaction services, and Contractor shall have no recourse against ADCRR regardless of the extent to which actual public usage may deviate from what Contractor may have contemplated or expected. Any presumptions or plans made by Contractor regarding the amount and/or timing of transaction fees it will collect from the public under any resultant contract are made solely at Contractor’s risk. Offeror should acknowledge it has read and agrees with this Section 4.4. Any Offeror unable or unwilling to accept these terms shall be determined not susceptible for award.

4.5. DELIVERY OF SERVICES:

4.5.1. Costs and Revenue. The awarded Contractor(s) is required to bear all of its costs to provide the Services. Contractor’s sole compensation and/or revenue shall be its transaction fees collected from the public. No ADCRR or State funds shall be paid to Contractor at any time as payment, compensation, and/or reimbursement, etc., for any part of Contractor’s Services. Offeror should acknowledge it has read and agrees with this Section 4.5.1. Any Offeror unable or unwilling to accept these terms shall be determined not susceptible for award.

4.5.2. Minimum Requirements. Contractor shall meet the following minimum requirements:

4.5.2.1. As applicable, Contractor agrees to make all necessary changes to its system (hardware, software, interfaces, etc.), at no cost to ADCRR, to accommodate any future changes to Keefe’s KeepTrak Inmate Banking System, or any future system replacing it, including an option (to be implemented upon request by ADCRR) for real-time or near real-time (at ADCRR’s sole discretion) interaction/processing. Any such changes shall be made in a timely manner on a schedule to be approved by ADCRR.

4.5.2.2. As applicable, Contractor agrees to make all necessary changes to its system (hardware, software, interfaces, etc.), at no cost to ADCRR, to accommodate a request by ADCRR to set a daily/hourly schedule for

Electronic Payment Transaction Processing Services

State of Arizona Department of Corrections, Rehabilitation & Reentry Procurement Services

Scope of Work Page 4 of 55 when transactions shall be authorized to be sent to ADCRR’s inmate trust account system. Any such changes shall be made in a timely manner on a schedule to be approved by ADCRR.

4.5.2.3. Provide a system which:

4.5.2.3.1. Includes all items/components (including all hardware, software, electronic interfaces, etc.) needed for Contractor’s system to successfully interface and work with ADCRR’s systems, and

4.5.2.3.2. Includes services for ADCRR’s Central Office; Community Corrections Division; Constituent Services Office; and all Arizona prison facilities, whether existing or future, and whether publicly or privately operated (existing ADCRR locations are shown in Exhibit A); and

4.5.2.3.3. Accommodates ADCRR’s use of Keefe’s KeepTrak Inmate Banking system Contractor is required to integrate its system with KeepTrak; and

4.5.2.3.4. Provides reports compatible with ADCRR’s Arizona

Correctional Information System (ACIS); and

4.5.2.3.5. Includes any future changes in ADCRR’s financial/accounting and/or computer/information technology system (including changes in technology which may occur over the duration of the Contract); and

4.5.2.3.6. Includes an option (to be implemented upon ADCRR’s request), for real-time or near real-time (at ADCRR’s sole discretion) interaction/processing with ADCRR’s system, now or in the future, including transactions involving inmate trust account deposits, visitation background check fees, and Community Corrections payments and fees; and

4.5.2.3.7. Will only accept inmate trust account deposits for active inmates as of the date of deposit (based upon information provided by ADCRR); and

4.5.2.3.8. Will only accept Community Corrections payments and/or fees for offenders under community supervision and for offenders released from community supervision that owe payments and/or fees (based upon information provided by ADCRR);

and

4.5.2.3.9. Will only accept a visitation background check fee for an active visitation application which requires the fee to be paid (based upon information provided by ADCRR); and

4.5.2.3.10. Accepts payments from the public via Internet Website/Portal, Telephone, Walk-in Storefront, and Mobile Payment

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Platform/Application (see section 4.5.5 for more information);

and

4.5.2.3.11. Performs daily verification test(s) to confirm all persons (along with all associated information) included in ADCRR’s daily update to Contractor has been accurately incorporated into Contractor’s system. Verification of successful completion of these daily tests shall be immediately sent to ADCRR upon request; and

4.5.2.3.12. Provides each transaction payer with a transaction receipt;

and for inmate trust account transactions, provides to ADCRR an electronic payee receipt for conveyance to the inmate.

Record of all receipts shall be available to ADCRR at all times in the event account research is necessary; and

4.5.2.3.13. Includes programmable parameters for automatically notifying ADCRR of electronic corrections. Programmable parameters are parameters that may be used to trigger a notification to ADCRR that something previously reported or recorded has changed; and

4.5.2.3.14. Includes a toll-free customer service telephone number adequately staffed year-round for a minimum of Mon-Fri 9:00 a.m. to 5:00 p.m. MST (Arizona Time).

4.5.2.4. Ensure that all electronic data is stored on a secure network and encrypted both in transit and at rest. The electronic information relating to each transaction shall be made available to ADCRR via a secure online interface provided by Contractor. This interface will allow ADCRR to look up transactions, print receipts for delivery to inmate(s), add/delete users and change user access privileges through centralized administrative access, and provide an intelligence feature (ability to perform custom searches) that allows ADCRR to track all incoming transactions. All transactions shall remain available to ADCRR for review, whether via the online interface or an archive retrieval process. ADCRR requires a minimum of one (1) years’ worth of data to be provided via the online interface, with a requirement for archived or older data to be made available immediately upon request.

4.5.2.5. Acknowledge and agree that ADCRR is, and/or shall be considered, the owner of all data provided by ADCRR and/or its Constituents (unless prohibited by law), and that ADCRR shall have access to all such data, as well as all transaction data, in Contractor’s system and/or records at all times and/or immediately upon request.

4.5.2.6. Guarantee maintenance of service at all times.

4.5.2.7. Guarantee funds for all transactions and be responsible for reconciling any transaction(s) back to the original payer.

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4.5.2.8. Acknowledge and agree that, as applicable, source codes for software developed or modified by Contractor specifically for use with the Department’s system shall become the property of the Department and shall be immediately provided to the Department upon request. Software provided by the Contractor to the Department shall contain a provision for perpetual licensing with all upgrade options. The Department may decide to maintain the software in escrow; therefore the licensing agreement(s) shall also contain a provision for maintaining a version of the software in escrow in the event the Contractor is unable to continue service for financial or other business reasons.

4.5.2.9. Comply with Payment Card Industry Data Security Standard (PCI DSS) throughout the Contract term (Offeror is to provide a copy of its current PCI DSS validation/certification with Offeror’s proposal).

4.5.2.10. Hold a valid Arizona Money Transmitter License at all times during the term of any resultant contract. Offeror must submit a copy of its valid Arizona Money Transmitter License with its proposal if it has one, or within thirty (30) days of its proposal submission if it does not currently have one.

Contractor shall keep and maintain such license throughout the term of any resultant contract.

4.5.2.11. Provide for funds for the electronic transactions to be transferred daily via wire transfer to an Arizona State Treasury account (under ADCRR’s current practices, Sundays and certain holidays are excluded from this requirement, however, this practice is subject to change).

4.5.2.12. Ensure that each day the funds transfer amount(s) exactly matches the total balance(s) shown on the transactions report(s) for that day.

4.5.2.13. Ensure that each of its Subcontractors are obligated, by written contract, to comply with the requirements, terms, and conditions of this RFP and any resultant contract which are related to the Subcontractor’s services provided to Contractor, including the following:

4.5.2.13.1. Subcontractors shall meet the same licensing requirements and standards required of the Contractor.

4.5.2.13.2. Subcontractors shall meet all Scope of Work requirements related to their work.

4.5.2.13.3. Subcontractors shall comply with all ADCRR written instructions related to their work.

4.5.2.13.4. Subcontractors shall be required to maintain the insurance requirements specified in the Special Terms and Conditions.

Within twenty-four (24) hours of request, Contractor shall provide to ADCRR a copy of any such Subcontractor contract (Contractor may redact its fees/payments). ADCRR reserves the right to deny any employee of the

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Contractor, or of any Subcontractor, access to its facilities, information, or Constituent information as a result of confidential information obtained during the course of an ADCRR security clearance process or for violation of an ADCRR policy.

If, after Contract award, Contractor wishes to use a Subcontractor not identified in Attachment 6, such Subcontractor shall be subject to review and a written determination by ADCRR whether it may participate in the Services;

such determination shall be at ADCRR’s sole discretion, but Subcontractor’s participation will not be unreasonably denied.

Offeror should confirm in its proposal that it will comply with all provisions of this Section

4.5.2 Minimum Requirements; however, any provisions that Offeror does not agree to comply with are to be listed and described in Offeror’s completed Attachment 5 Supplement, Deviations and Exceptions included with Offeror’s submission.

4.5.3. Transaction Reporting. Offeror should describe how its system will comply with the following guidelines:

4.5.3.1. Provide for Electronic Funds Transfer (EFT) Reports to include:

4.5.3.1.1. Daily Transaction Summary Report

4.5.3.1.2. Monthly Reconciliation Report

4.5.3.1.3. Activity Report Detailing:

4.5.3.1.3.1. Location

4.5.3.1.3.2. Number of Transactions

4.5.3.1.3.3. Status successful or rejected

4.5.3.1.3.4. Dollar Amounts

4.5.3.1.3.5. Type of payment

4.5.3.2. Provide a methodology to audit transaction history reports on an hourly basis. Data format criteria will be provided upon award. Reporting shall include the ability to generate “Payment by day” summary reports, and allow for custom reporting where flexible search criteria are given. All transactions are required to capture the information listed below and then be transmitted electronically as part of the financial transaction. No funds shall be accepted without the verified Name, Address and Telephone Number of the individual sending the funds. Gift Cards, “burner cards” and prepaid/preloaded credit/debit cards will not be accepted.

4.5.3.2.1. Sender Name

4.5.3.2.2. Sender Address

4.5.3.2.3. Sender Phone #

4.5.3.2.4. Payee Name (ADCRR Number supplied by the customer)

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State of Arizona Department of Corrections, Rehabilitation & Reentry Procurement Services

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4.5.3.2.5. Money Transfer Control Number (MTCN)

4.5.3.2.6. Sequence Number or any unique transaction identification number

4.5.3.2.7. Identification Code

4.5.3.2.8. Transaction Date

4.5.3.2.9. Period (Same Day? Week? Month?)

4.5.3.2.10. Processing time

4.5.3.2.11. Credit/Debit card information

4.5.3.2.12. Account Number

4.5.3.2.13. Method of payment (credit/debit card, cash, mobile app, etc.)

4.5.3.2.14. Transaction Amount

4.5.3.2.15. Currency

4.5.3.2.16. Agent City

4.5.3.2.17. Country

4.5.3.2.18. Transaction Status (Valid, NSF, etc.)

4.5.3.2.19. Transaction Description (identify fee being paid)

4.5.3.2.20. Delivery Status (Pending, Delivered, etc.)

4.5.3.2.21. Delivery Method (Online, Storefront, Telephone, Mobile)

Any provisions shown above that Offeror does not agree to comply with are to be listed and described on the Deviations and Exceptions form (Attachment 5 Supplement) and included with Offeror’s submission.

4.5.4. Data and Network Access/Security. Security of the EPTP system is essential, and Contractor is hereby notified that a single security breach will be considered cause for contract termination (at ADCRR’s sole discretion). Contractor is to maintain complete confidentiality of all information through security practices and/or systems and, when applicable, execute confidentiality agreements with its employee(s) and Subcontractors (copies of which are to be promptly made available to ADCRR upon request).

Contractor must keep all information about inmates, offenders under community supervision, and offenders released from community supervision that owe payments and/or fees, confidential and make no disclosure thereof to any third party, except as may be required by law. Contractor agrees to notify ADCRR within twenty-four

(24) hours of any such disclosure (ADCRR contact instructions, which may include email, text, system message, and/or phone call, etc., will be provided after contract award).

Security and privacy policies, standards and procedures will be continuously maintained by both the Contractor and ADCRR, and are subject to change during the term of the

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Contract in accordance with State or Federal legislation, administrative rules, court orders, or industry or national standards (e.g., PCI DSS, NIST CSF, etc.).

4.5.4.1. Offeror should describe its system security, including, but not limited to, measures and features related to the following areas:

4.5.4.1.1. Unauthorized Access/Theft. Offeror’s protection should address potential threats both internal and external, whether electronic or physical. Contractor is responsible to ensure the integrity of, and to prevent unauthorized access to, all ADCRR data, including the Identity Information of all persons for whom such information is used, transmitted, or stored by Contractor’s system; this obligation includes, but is not limited to, Contractor’s owners, officers, agents, Subcontractors, employees, and any other person for whom Contractor may be held responsible and/or liable. Identity Information includes, but is not limited to, an individual’s first name or initial, and last name in combination with any of the following information: 1) Social Security Number; 2) Driver’s License number; 3) system access IDs and associated passwords;

and 4) account information such as: account number(s), credit/debit card number(s) and/or passwords and/or security codes. Offeror’s response should include a copy of its PCI DSS compliance validation/certificate.

4.5.4.1.2. Disaster Protection/Recovery. Offeror should include details such as update/restore point frequency, remote backup/mirror site(s) locations, time needed for full recovery after a disaster, method and frequency of self-testing its backup and recovery procedures, date of last disaster recovery test, etc. Offeror’s response should make clear ADCRR’s maximum theoretical potential loss using Offeror’s system.

4.5.4.1.3. Cyberattack Protection and Recovery. Describe Offeror’s safeguards and preparations for potential cyberattack, including, as applicable, compliance with NIST Cybersecurity Framework (if applicable, include copy of Offeror’s compliance certificate) and/or ADCRR’s Information Technology Policies, Standards and Procedures, which may be found at:

https://aset.az.gov/resources/policies-standards-and-procedures.

4.5.4.1.4. Subcontractor Vulnerability. If Offeror intends to use any Subcontractors in providing the Services, Offeror should also provide the information requested above in subsections

4.5.4.1.1 – 4.5.4.1.3 for the Subcontractor’s system.

4.5.4.1.5. Penetration Testing. Describe Offeror’s policies and/or practices regarding its own system penetration testing, as well https://aset.az.gov/resources/policies-standards-and-procedures https://aset.az.gov/resources/policies-standards-and-procedures

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State of Arizona Department of Corrections, Rehabilitation & Reentry Procurement Services

Scope of Work Page 10 of 55 as its accommodation of, and responsiveness to, penetration testing by ADCRR (ADCRR intends that it may perform penetration testing of Contractor’s system at any time and that Contractor will promptly begin satisfactory resolution following notification by ADCRR of any vulnerabilities found).

4.5.5. Access and Types/Methods of Payment. The Department requires that Constituents have multiple options in carrying out transactions. Offeror should describe its provisions for payments via the following required delivery methods:

4.5.5.1. Internet Website/Portal. Offeror’s response should include a description, preferably with examples, of its user interface as it applies to the three different types of ADCRR payments (inmate trust account deposit, visitation background check fee, community supervision payments).

Offeror’s Web service is presumed to be available to the public at all times, and Offeror is to clearly state if its available hours differ from 24/7/365. Offeror’s system is expected to provide an end-to-end solution for real-time transactions (real-time refers to the ability to collect the necessary information from a web-based entry point, perform the necessary interrogation to sustain a positive transaction, and then electronically report a successful transaction to ADCRR, all of which appears to take place, or actually takes place, instantaneously upon data entry or receipt of a command). User-friendly design (intuitive interface, clear instructions, minimal clicks, hyperlinks, etc.) is preferred, as well as providing the payer with immediate confirmation its transaction has been successfully completed.

4.5.5.2. Telephone. As applicable, Offeror’s response should discuss its provisions for: Live Agent and/or Interactive Voice Response (IVR) service; Hours of service; English only or multilingual service; etc.

4.5.5.3. Walk-in Storefront. Offeror’s response should include a description of its available services and operating hours, including a listing and/or complete description of locations throughout Arizona; at Offeror’s option, map locations may be shown in lieu of a listing provided the map(s) are detailed enough to accurately portray the type and location of available services. Offeror should also describe (but not necessarily provide a listing for) the type(s) and number of walk-in storefront locations available in other parts of the U.S.

4.5.5.3.1. Walk-in Storefront Requirements: Must have an in-store person

(clerk/agent/representative) trained and able to assist a customer in completing any ADCRR-related transaction, from start to finish, for a customer who has no internet access or phone, and may have only cash for the transaction. If internet access or a phone call is required to complete the transaction, the clerk/agent/representative is available to assist the customer in carrying out those processes during the customer’s store visit using the store’s equipment. If applicable, it is

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Scope of Work Page 11 of 55 permissible to have the customer insert cash into a kiosk machine or fill out a paper form, and to require the customer to have the inmate/offender’s name, ADCRR number, and location, as well as all relevant payment information (what type, how much, etc.). Standard requirements for customer identification are the customer’s responsibility (name, address, etc.). Customer is to be provided with a hard copy payment receipt upon completion of the transaction.

4.5.5.4. Mobile Payment Platform/Application (e.g., Apple Pay, Google Pay, PayPal, etc.). As in subsection 4.5.5.1 above, mobile transactions are expected to be conducted as real-time processes. Offeror should describe its payment options for Constituents using mobile devices/applications, including requirements which may be restrictive to certain mobile device users. If Offeror will use a proprietary App only, please provide details on how it may be used, what is required for Constituent use, and any restrictions or limitations that may apply (devices, payment types, etc.).

4.5.5.5. If applicable, describe any other types or methods of payment available to Constituents, including relevant details.

In addition to Offeror’s narrative response to this Section 4.5.5 in its proposal, Offeror should also include a completed Attachment 9, Accepted Payments form with its proposal indicating the specific payment options available to Constituents. Offeror has the option of providing the same information on its own form which, if used, should be identified as Attachment 9 and attached in APP as a part of Offeror’s proposal instead of the Attachment 9 form provided.

4.5.6. Search, Mapping and Data Mining. The relationship of certain transactions within the EPTP system is highly important to ADCRR. Offeror’s search, mapping and data mining capabilities are to include all ADCRR facilities, offices, institutions, districts, etc. (including privately managed prison facilities). Except for ADCRR Central Office Staff, all other ADCRR staff accessing reports shall only have access to information regarding their respective facility, office, institution or district. Since data mapping reports may involve multiple facilities, offices, institutions, or districts, designated Central Office Staff members must be able to access reports which delineate data by institution/facility or in aggregate.

4.5.6.1. Offeror should describe the search, mapping, data mining and reporting capabilities its system provides. Qualified Offerors are expected to be familiar with transactional information, events, patterns, and connections of interest to a correctional agency such as ADCRR. Offeror’s response is to be based on existing capabilities; if Offeror wishes to include any planned enhancements, they are to be clearly identified as such, along with an estimated timeframe for availability. Offeror should provide enough detail to clearly indicate its system capabilities and limitations. Offeror’s response should include, but not be limited to, addressing the following topics:

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4.5.6.1.1. How many and which criteria may be included in a multi-criteria search? If applicable, include comments that relate to any type(s) of search criteria for which the user may enter a range rather than a discrete value. Also, describe how a search result/report will differ depending on whether the search was based on “payee” or “payer” information.

4.5.6.1.2. Example(s) demonstrating the maximum reach/depth and/or complexity Offeror’s system is able to process. Offeror’s response should address its system’s ability to link secondary and tertiary transactions to other inmate accounts and/or other transaction types that may involve the same payer or payee, (e.g., would Offeror’s system support a search looking for any payer making both an inmate trust account deposit in cash at a walk-in storefront and a community supervision fee payment made online with a credit card within a 48-hr. period?)

4.5.6.1.3. Notifications and reports. Offeror should describe notification and report options available to ADCRR, including, but not limited to, the following topics:

4.5.6.1.3.1. If applicable, describe and/or provide

example(s) of what type(s) of transaction connections and/or “red-flags” Offeror’s system is, or may be, programmed to detect.

4.5.6.1.3.2. As applicable, describe and/or give example(s)

of special reports that will be available to ADCRR and/or may be customized per ADCRR request. Distinguish between reports that may result from a manual search by an ADCRR staff member versus a set of parameters ADCRR may select to receive an “automatic” report whenever the requisite parameters have been met and detected by Offeror’s system.

4.5.6.1.3.3. As applicable, how quickly after a triggering

event (e.g., a predetermined or unusual activity that raises a concern or activates a notification and/or reporting process, etc.) occurs will ADCRR be notified, and in what manner? (If applicable, please differentiate among various types of payment scenarios in order to provide a more accurate response).

4.5.7. System Upgrade/Outage/Breach. ADCRR requires timely notice of various planned and unplanned events (ADCRR contact instructions, which may include email, text, system message, and/or phone call, etc., will be provided after contract award).

Offeror should indicate its compliance with the following notification requirements (if

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Scope of Work Page 13 of 55 unable to commit to any one or more of these, Offeror should indicate what duration(s) it will commit to instead of those shown below):

4.5.7.1. Sixty (60) days in advance of any planned upgrades and/or changes that will affect the Department.

4.5.7.2. Thirty (30) days in advance of any planned system outages.

4.5.7.3. Within fifteen (15) minutes of the beginning of any unplanned system outages, loss of service, etc.

4.5.7.4. Within fifteen (15) minutes of discovery of any cyberattack, unauthorized access to identity information, system security breach, etc.

4.5.8. Customer Service. Contractor’s ability and willingness to respond promptly and cooperatively to both ADCRR and its Constituents is an important part of a successful business relationship. Offeror should describe its customer service policies and practices, including, but not limited to the following aspects:

4.5.8.1. Offeror’s policies and/or standards regarding correction of errors (by

Offeror), customer assistance, customer complaints, etc. Contractor is expected to promptly reconcile the vast majority of issues and errors involving Constituent transactions without ADCRR involvement, including the reconciliation of any transaction(s) back to the original payer.

4.5.8.2. Response time and cooperation with ADCRR regarding technical issue resolution, assistance resolving customer complaints, information/report requests, etc. (in virtually all cases, Contractor’s response and/or resolution will be expected as quickly as possible and in no more than forty-eight (48) hours).

4.5.9. Deployment, Contract Expiration/Termination and Decommissioning. Offeror should describe its plans and procedures in regard to the initiation, implementation, and expiration/termination of any resultant contract. Beginning with notice of Contract award, Offeror’s response should include, but not be limited to:

4.5.9.1. System deployment as it relates to Contractor’s preparation, installation, testing, and readiness to provide services both to ADCRR and the public.

Offeror is encouraged to provide details such as project milestones, estimated timeframes, actions requiring ADCRR involvement, communication protocols, program management, etc.

4.5.9.2. Contract expiration/termination procedures, including, but not limited to:

4.5.9.2.1. Disengagement, phase down, timing, etc.

4.5.9.2.2. Data return

4.5.9.2.3. Data cleaning

4.5.9.2.4. Temporary data retainage for reconciliation of unresolved transactions, audits, etc.

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4.5.10. Miscellaneous Provisions: ADCRR desires the optional system features listed below.

Offeror should state in its proposal whether its system will accommodate these optional features:

4.5.10.1. Offeror’s system will only accept payments for the exact amount (currently

$25.00) listed on ADCRR’s website (plus Contractor’s transaction service fee) for ADCRR’s visitation background check fee.

4.5.10.2. Offeror’s system will allow for the acceptance of visitation applications sent without any funds.

4.5.11. As applicable, Contractor must comply with the provisions shown in Exhibit B, Stipulated Requirements for Contractors, whenever Contractor personnel perform work at an ADCRR location.

Offeror should confirm its compliance with Exhibit B provisions.

4.6. EXPERIENCE AND CAPABILITY

4.6.1. Offeror should describe its experience and capability in performing services the same as, or similar to, the solicited services (Offeror’s response to this section is limited to no more than ten (10) pages).

4.6.2. Offeror shall submit at least three (3), but no more than five (5) completed Attachment 7, Experience and References forms in accordance with the stated guidelines therein.

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Special Terms and Conditions

1 AUTHORITY TO CONTRACT:

This Contract activity is issued under the authority of the Arizona Department of Corrections, Rehabilitation and Reentry’s Chief Procurement Officer. No alteration of any portion of the Contract, any items or services awarded, or any other agreement that is based upon this Contract may be made without express written approval of the Department in the form of an official Contract amendment. Any attempt to alter any documents on the part of the ordering agency or any Contractor is a violation of the Contract and the Arizona Procurement Code. Any such action is subject to legal and Contractual remedies available to the State inclusive of, but not limited to, Contract cancellation, suspension and/or debarment of the Contractor.

2 ELIGIBLE AGENCIES:

Any contract resulting from this solicitation shall be for the exclusive use of the Arizona Department of Corrections Rehabilitation and Re-entry.

3 PRESS/PUBLICITY:

Prior to pursuing any press or publicity regarding these services, the contractor shall work with ADCRR’s Communications Department. ADCRR retains approval rights concerning any such factors.

4 PRICING:

The method of compensation governing the Contract shall be fixed price.

5 PRICE INCREASE:

The Department may review a fully documented request for a price increase only after the Contract has been in effect for twenty-four (24) months. A price increase adjustment shall only be considered at the time of a Contract renewal and shall be a factor in the renewal review process. The Department shall determine whether the requested price increase or an alternate option is in the best interest of the State. The price increase adjustment, if approved, will be effective upon the effective date of the Contract renewal.

6 PRICE REDUCTION:

A price reduction may be offered at any time during the term of the contract and shall become effective upon issuance of a contract amendment.

7 BUSINESS STANDING A.R.S. § 10-1501:

A selected Contractor whose business structure requires that documents be filed regularly with the Arizona Corporation Commission (ACC) must remain in good standing with the ACC during the term of the Contract. An out-of-state firm selected for Contract award must file necessary documents with the ACC as doing business in Arizona prior to execution of the Contract and, throughout the term of the Contract, must remain in good standing with the ACC and the entity where the original documents were filed.

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8 INVOICING/BILLING REQUIREMENTS:

8.1 If applicable, a legible and detailed invoice shall be provided by the Contractor to Accounting at ADCPayables@azadc.gov or mail to the address below:

Arizona Department of Corrections, Rehabilitation, and Reentry Attn: Accounts Payable

8.2 At a minimum any invoice shall include:

• Department Location’s Name and Address

• Contractor’s Name, Remit to Address and Contact Information

• Contract Number

• Purchase Order Number

• Invoice Number and Date

• Date the items or services were shipped or provided

• Applicable taxes

• Total Invoice Amount Due

8.3 Invoices not sent to the proper address or not containing the necessary and required information may delay payment. A contractor whose payments are delayed due to improper invoicing shall make no claim(s) against the Department or the State for late or finance charges.

8.4 The Department will make every effort to process payment(s) within thirty (30 calendar days after acceptance of goods and or services. Delivery of goods and or services does not constitute acceptance.

9 INDEPENDENT STATUS OF THE CONTRACTOR:

9.1 Personnel actions of employees on the Contractor’s payroll shall be the Contractor's responsibility. The Contractor shall comply with all applicable government regulations related to the employment, compensation and payment of personnel.

9.2 The Department will not be responsible in any way for the damage or loss caused by fire, theft, accident, or otherwise to the Contractor's stored supplies, materials, equipment, or his employee's personal property stored on Department property.

10 CONFIDENTIALITY OF RECORDS:

The Contractor shall establish and maintain procedures and controls, that are acceptable to the Department for the purpose of assuring that no information contained in its records or obtained from the Department or from others in carrying out its functions under the Contract shall be used or disclosed by it, its agents, officers, or employees, except as required to efficiently perform duties under the Contract. Persons requesting such information should be referred to the Department.

Contractor also agrees that any information pertaining to individual persons shall not be divulged

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11 COMPLIANCE WITH DEPARTMENT LAWS, RULES AND REGULATIONS

The Contractor shall abide by all formally adopted Department Rules and General Operating Policies and Procedures as applicable for fulfilling the obligations outlined in the Contract. Any allegations of non-compliance with Department Rules, General Operating Policies and/or Procedures, or other Contractor misconduct shall be subject to investigation by the Department and may result in Contract termination. The Department’s General Operating Policies and Procedures are available for review upon request.

12 RULES AND REGULATIONS

12.1 Offeror’s attention is called to the requirements of the document Rules for Non-Employees of

ADCRR in Arizona State Prisons Form (Attachment 3), which shall be adhered to in all respects.

12.2 Should the owner require signatures of other parties such as subcontractors or persons directly or indirectly employed by the contractor, it shall be the contractor's responsibility to obtain such signatures. The signed document must be submitted within ten (10) days of the issuance of a notification of intent to award.

13 INVESTIGATIONS:

ADCRR reserves the right to make investigations, as deemed necessary, to determine the ability of the contractor to perform the specified work. The contractor shall furnish to ADCRR all such information and data for this purpose as may be requested. ADCRR reserves the right to reject any bid if evidence submitted or investigation fails to satisfy the owner that the contractor is properly qualified to carry out the obligations of the solicitation. Conditional bids shall not be accepted.

14 NOTICE WARNING:

Any person who takes into or out of or attempts to take into or out of a correctional facility or the grounds belonging to or adjacent to a correctional facility, any item not specifically authorized by the correctional facility, shall be prosecuted under the provisions of the Arizona Revised Statutes. All persons, including employees and visitors, entering upon these confines are subject to routine searches of their persons, vehicles, property or packages.

Authority: A.R.S. § 13-2501;

A.R.S. § 13-2505;

ADCRR Department Order 708

15 CONTRABAND:

Contraband means any dangerous drug, narcotic drug, intoxicating liquor of any kind, deadly weapon, dangerous instrument, explosive or any other article whose use of or possession would endanger the safety, security or preservation of order in a correctional facility or any person therein.

(Any other article includes any substance which could cause abnormal behavior, e.g., marijuana, nonprescription medication, etc.)

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Promoting prison contraband A.R.S. § 13-2505:

A person, not otherwise authorized by law, commits promoting contraband:

By knowingly taking contraband into a correctional facility or the grounds of such a facility; or

By knowingly conveying contraband to any persons confined in a correctional facility; or

By knowingly making, obtaining, or possessing contraband in a correctional facility.

Promoting Prison Contraband is a Class 5 felony:

Authority: A.R.S. § 13-2501;

A.R.S. § 13-2505;

ADCRR Department Order 708

16 FEDERAL PRISON RAPE ELIMINATION ACT 2003:

The Contractor shall comply with the Federal Prison Rape Elimination Act of 2003.

Reference 28 C.F.R. Part 115.

17 UNLAWFUL SEXUAL CONDUCT:

17.1 A person commits unlawful sexual conduct by intentionally or knowingly engaging in any act of a sexual nature with an offender who is in the custody of the ADCRR, the Department of Juvenile Corrections, a private prison facility or a city or county jail or with an offender who is under the supervision of either Department or a city or county. For the purposes of this subsection, "person" means a person who:

17.1.1 Is employed by the ADCRR or the Department of Juvenile Corrections.

17.1.2 Is employed by a private prison facility or a city or county jail.

17.1.3 Contracts to provide services with the ADCRR, the Department of Juvenile

Corrections, a private prison facility or a city or county jail.

17.1.4 Is an official visitor, volunteer or agency representative of the ADCRR, the Department of Juvenile Corrections, a private prison facility or a city or county jail.

17.2 This section does not apply to a person who is employed by the ADCRR, a private prison facility or a city or county jail or who contracts to provide services with the ADCRR, a private prison facility or a city or county jail or an offender who is on release status if the person was lawfully married to the prisoner or offender on release status before the prisoner or offender was sentenced to the ADCRR or was incarcerated in a city or county jail.

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17.3 Unlawful sexual conduct with an offender who is under fifteen years of age is a class 2 felony. Unlawful sexual conduct with an offender who is between fifteen and seventeen years of age is a class 3 felony. All other unlawful sexual conduct is a class 5 felony.

17.4 Unlawful sexual conduct; correctional facilities; classification; Definition A.R.S. §13-1419.

18 PANDEMIC CONTRACTUAL PERFORMANCE:

18.1 The State shall require a written plan that illustrates how the Contractor shall perform up the contractual standards in the event of a pandemic. The State may require a copy of the plan at any time prior or post award of a contract. At a minimum, the pandemic performance shall include:

18.1.1 Key succession and performance planning if there is a sudden significant decrease in Contractor’s workforce.

18.1.2 Alternative methods to ensure there are products I the supply chain.

18.1.3 An up to date list of company contacts and organization chart.

18.2 In the event of a pandemic, as declared by the Governor of Arizona, U.S. Government or the World Health Organization, which makes performance of any term under this contract impossible or impractical, the State shall have the following rights:

18.2.1 After the official declaration of a pandemic, the State may temporally void the contract in whole or specific sections if the Contractor cannot perform to the standards agreed upon in the initial terms.

18.2.2 The State shall not incur any liability if a pandemic is declared and emergency procurements are authorized by the director as per § 41-2537 of the Arizona Procurement Code.

18.2.3 Once the pandemic is officially declared over and/or the Contractor can demonstrate the ability to perform, the State, at its sole discretion may reinstate the temporality voided contract.

19 INDEMNIFICATION:

19.1 To the fullest extent permitted by law, Contractor shall defend, indemnify, and hold harmless the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees (hereinafter referred to as “Indemnitee”) from and against any and all claims, actions, liabilities, damages, losses, or expenses (including court costs, attorneys’ fees, and costs of claim processing, investigation and litigation) (hereinafter referred to as “Claims”) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of Contractor or any of its owners, officers, directors, agents, employees or subcontractors. This indemnity includes any claim or amount

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Special Terms and Conditions Page 20 of 55 arising out of, or recovered under, the Workers’ Compensation Law or arising out of the failure of such Contractor to conform to any federal, state, or local law, statute, ordinance, rule, regulation, or court decree. It is the specific intention of the parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by Contractor from and against any and all claims. It is agreed that Contractor will be responsible for primary loss investigation, defense, and judgment costs where this indemnification is applicable.