Rev. 03/2025

STATE OF ARIZONA

ARIZONA DEPARTMENT OF TRANSPORTATION

1655 W. Jackson St., MD 100P

Phoenix, AZ 85007

REQUEST FOR PROPOSAL

SOLICITATION NUMBER: BPM007132

DESCRIPTION: Authorized Third Party Electronic Service Partner

QUESTIONS: Inquiries regarding the solicitation are to be submitted online through the State’s e-Procurement system, Arizona Procurement Portal (APP) (https://app.az.gov/) using the Discussion Forum tab.

OFFERORS ARE STRONGLY ENCOURAGED TO READ THE ENTIRE SOLICITATION.

Matthew Martinez Procurement Officer Phone: 602-712-4398 Email: mmartinez@azdot.gov

This solicitation is issued in accordance with A.R.S. §41-2534 and A.A.C. R2-7-C301 et seq., Competitive Sealed Proposals.

“An Equal Opportunity Agency”

The Arizona Department of Transportation, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252.42 U.S.C. §§ 2000d-4) and the Americans with Disabilities Act (ADA), hereby notifies all bidders that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, national origin in consideration for an award.

Persons that require a reasonable accommodation based on language or disability should contact ADOT’s Procurement Office by phone

(602) 712-7466. Requests should be made as early as possible to ensure the State has an opportunity to address the accommodation.

Las personas que requieran asistencia (dentro de lo razonable) ya sea por el idioma o discapacidad deben ponerse en contacto con

ADOT (602) 712-7466.

https://app.az.gov/

TABLE OF CONTENTS

Solicitation No: BPM007132 Available online at

SECTION PAGE

Notice 1

Table of Contents 2

Scope of Work 3

Special Terms and Conditions 52

Uniform Terms and Conditions 74

EXHIBITS

1 - Title VI/Non-Discrimination Assurances Appendix A 91

2 - Title VI/Non-Discrimination Assurances Appendix E 92

SCOPE OF WORK

1. Statement of Need

1.1. Pursuant to the Arizona Procurement Code, A.R.S. §41-2501 et seq., the State of Arizona Department of Transportation (Department), has a requirement for a Motor Vehicle Division (MVD) Authorized Third-Party Electronic Service Partner (ATP ESP). MVD has prior successful experience of a unique public-private partnership between a Contractor and

ADOT.

1.2. ADOT wishes to exclusively partner with only one Contractor to serve as MVD’s Authorized Third-Party Electronic Service Partner who will act as a contracting and paying agent, as well as provide technology solutions outlined in 1.3 for the Department.

1.3. The ATP ESP will provide support that enables online delivery of government services, as well as improved processes in both in-office and back office environments to provide better and faster customer experiences for the Department’s Motor Vehicle Division. The ATP ESP’s services will include Core Services that the Offeror must respond to in its proposal. In addition, Optional Services are also described.

Core Services

1. MAX System Hosting, Development, and Maintenance

a. Managed Services Agreement (MSA) for Motor Vehicle Modernization (MvM) team Staffing and Consulting Services

b. MvM Team Support

c. MAX System Development Operations (DevOps)

2. Payment Gateway Solution

3. Customer Service Field Office Transformation (Field Office of the Future)

a. Kiosks

b. TeleMVD

c. Network and Payment Processing

4. Renew by Mail Outsourcing

5. Business (Driver, Vehicle, and Title Service) Mail Intake and Scanning

6. Call Center/Help Desk Support

7. eGov Administrative Services

a. eGov Payment Agent

b. eGov Contract & Fund Administration

c. eGov Program Management

8. Insurance Verification Service

Optional Services

1. Business Portals

2. Field Office Cash Management

3. Print Management

4. eAZ/Business One-Stop Hosting & Operations

5. Online customer identity authentication

6. Cloud computing services (hosting, processing, storage)

As determined by ADOT, the Contractor may fulfill the Optional Services in any of four ways:

1. Contractor performs directly (Contractor produces estimate and Statement of Work)

2. Contractor subcontracts with another Contractor (Contractor is contracting agent) Subcontractors must be listed on the required form in Attachment (2)

3. ADOT may select Contractor to use an existing Arizona statewide contract to provide services. (Contractor will be the paying agent) ADOT performs internally (using ADOT-managed resources from -contracted MSA)

2. Introduction and Background

2.1. ADOT’s Motor Vehicle Division provides services for motor vehicle title and registration, issuance of driver credentials, motor carrier services, and revenue collection.

2.2. MVD provides these services through its 43 field offices located throughout the state. MVD also administers and oversees an Authorized Third-Party (ATP) Program, which allows provider entities to conduct title and registration transactions, driver licensing transactions, and other MVD services. ATPs can be categorized as brick-and-mortar providers or as an electronic service partner (ATP ESP). Brick-and-mortar ATPs may offer extended weekday hours, weekend hours, and additional locations.

2.3. The ATP ESP provides critical support services that allow ADOT to offer a growing selection of MVD services through the Internet. All ATPs collect the same statutory fees and taxes as MVD field offices. This includes fees for registrations, certificates of title, vehicle license tax, driver license applications, compliance issues, overweight or excess size permits, other specialty permits, fuel tax reporting, abandoned vehicle payments, and personalized and specialty license plates. During the past year, the ADOT MVD portal supported by the ATP ESP processed over 4.4 million transactions online, as well as nearly 3 million transactions in MVD field offices. The value of the transactions was over $1 billion.

2.4. For each of the statutory fees, A.R.S. §28-5101 details the amount that an ATP shall retain as compensation for their services. For example, ATPs retain 2% of each vehicle license tax payment (or $4, whichever is more), $1 for each registration, and $1 for each title. In addition to those reimbursements, brick-and-mortar ATPs may charge a convenience fee on top of the statutory fees. ATP ESP fees are established by negotiation in their contract. In the current contract, ADOT’s ATP ESP charges the same retention fees as brick-and-mortar ATPs, and it does not charge additional convenience fees. It is ADOT’s intent that each transaction costs the same to an online customer as it does in an MVD field office, as it is an important part of the Department’s mission to provide convenient access to government services.

2.5. Arizona Revised Statutes (A.R.S.) §28-5101 (G) allows the ATP ESP to negotiate compensation through an agreement between the ATP ESP and the Department. While brick-and-mortar ATPs keep all their retained fees as compensation, the ATP ESP keeps a mutually agreed upon portion of its retained fees as compensation and deposits the remainder into a Contractors account to be spent at ADOT’s direction. According to A.R.S. § 28-5101 (G), purposes for the portion spent at ADOT’s direction may include the development and implementation of information technology and other automated systems and any necessary support for these systems. This ADOT-directed portion of the fees has primarily been dedicated to the Motor Vehicle Modernization (MvM) team, a custom software development group that modernizes and maintains MVD systems and related eGov initiatives.

2.6. Kyndryl is the current ATP ESP, and under its previous guise as IBM, has been since 1996 when the Service Arizona portal was created. The objective of the Service Arizona portal was to deliver a solution that offered innovative, efficient, and convenient service delivery methods. In the late 1990s e-Government was futuristic and far fewer people than today had the desire or ability to conduct business over the Internet. Over the years, the breadth of MVD services available on ServiceArizona expanded, as did the volume of customers using

it. ServiceArizona grew to be one of the leading e-Government portals in the United States in terms of volume and services offered.

2.7. While ServiceArizona provided Arizona citizens and businesses with more options for conducting MVD business, it has also made overall MVD operations more efficient. Providing a channel for customers to transact without ever stepping foot in an MVD office means that MVD offices are more available to the customers who need to process transactions that cannot be done online.

2.8. In April 2020, MVD launched the MAX system and, over the course of several months, was primarily engaged in system stabilization. In 2021, with the new system stable, the department awarded a new ATP ESP contract to IBM, subsequently Kyndryl.

2.9. MAX is MVD’s system of record for all driver and vehicle information, as well as the front-end system that MVD customer service representatives (CSRs) use to process driver and vehicle transactions for customers. AZMVDNow is MVD’s modern customer-facing web portal that provides consumer access to various MVD services online—essentially a public facing front end to each customer’s information in MAX. AZMVDNow has replaced ServiceArizona as the primary portal for Arizonans to conduct driver and vehicle transactions online. Whereas Service Arizona was customer anonymous, AZMVDNow retains some customer anonymous transactions for public convenience, but is primarily centered around a customer account paradigm. With AZMVDNow, any Arizona MVD customer can log into their account and see information about their driving privilege, identification credentials, and titled and registered vehicles from the convenience of a personal computer or smartphone.

2.10. MAX and AZMVDNow are also home to what the Department refers to as business suites, which provide a variety of industries the ability to conduct driver and motor vehicle services online that are not available to the general public, including:

Services relating to abandoned vehicles, as well as crushed and dismantled vehicles

Various services for motor vehicle dealers and lienholders including the availability of driver and motor vehicle records

Services for ignition interlock device installers

Services for fuel tax customers

2.11. The ATP ESP provides a contracting vehicle through which ADOT makes decisions regarding how to best maintain and continue to improve the MAX system. Currently, MAX is maintained by a mix of services performed directly by the ATP ESP via a task order agreement under the contract, ATP ESP contracting with another Contractor to provide the service, and the Department performing the work itself using ADOT-managed resources from an ATP ESP-provided Managed Services Agreement vehicle.

2.12. Volumes

2.12.1. Following are relevant statistics for eGov retainage, merchant fees, and transaction volumes by channel for the Fiscal Years 2022, 2023, and 2024.

eGov Retention and Merchant Fees by Year Totals by Year

FY2022 FY2023 FY2024 FY2025

Total Retention 27,053,235.69 29,942,626.56 36,056,608.51 42,561,572.73

Payment Processing Merchant Fee Reimbursements (for ServiceArizona and AZ MVD Now) to Contractor 10,419,932.43 10,544,634.20 12,639,835.02 12,882,060.06

Payment Processing Merchant Fee (for POS terminals in MVD Field Offices) to prior banking partner 2,552,155.67 2,439,367.14 911,704.22 393,409.61

Lease Fees for POS Terminals in MVD Field Offices to prior banking partner 292,055.21 298,971.07 282,001.16 30,686.36

Other Payment Processing Fees* 480,000.00 480,000.00 480,000.00 480,000.00

*IBM Fuel Tax Suite Payments eGov Channel Volumes Per Year Volume

FY2022 FY2023 FY2024 FY2025

ServiceArizona (excl. Renew by Mail and Kiosks) 3,107,320 1,865,803 1,219,798 1,598,362

AZ MVD Now 1,977,751 3,393,554 4,235,360 4,663,958

MVD Field Offices 2,820,025 2,875,495 2,843,436 3,195,887

Renew by Mail 234,281 259,621 151,726 120,496

Kiosks 97,295 66,685 43,590 84,211

3. General Requirements

3.1. Core Services - The Contractor shall be required to provide all core services listed below and described in the Specific Requirements. ADOT’s eGov program has many complex components. Some of the components will be developed, managed, and supported by MVD and other ADOT business units. Some components will be provided by the Contractor. The Optional Services are services that Offerors may choose to provide details on regarding their capabilities, but do not constitute an exhaustive list of services that ADOT may wish to pursue with the Contractor during the life of the contract, as ADOT expects contract refinement through Program Change Requests (PCR), Statements of Work (SOW), and Requests for Service (RFS), and Task Orders (TO).

3.2. Timing- The intent is to award the contract in late 2025 to provide adequate time to implement changes and Contractor transition as required. The current contract expires on October 27, 2026, at which time the successful offeror will begin to provide services and earn retention on Arizona Motor Vehicle Division transactions.

3.3. Work Assignment- In this Contract, some of the work will be performed directly by the

Contractor and some as directed by ADOT. Depending on the service or technology, ADOT may direct the Contractor to use a certain Contractor or technology. This may be the case where unique technologies exist in ever-changing technology markets, such as with identity authentication providers. Offerors may also choose to partner or subcontract with other companies to offer services they do not normally offer or to supplement their expertise or capabilities. In this situation, ADOT requires the Contractor to serve as the Prime Contractor and directly subcontract with the other companies with the same terms and conditions to which the Contractor agrees with ADOT. When ADOT specifies the Contractor or technology to use, ADOT is fully responsible for the project, and the ATP ESP will be acting in its paying agent role.

4. Specific Requirements

4.1. Core Services

4.1.1. Payment Gateway Solution-Payment processing and management is an important part of this solicitation. ADOT has adopted an approach to encourage the use of online services by reimbursing the Contractor for credit card charges. In order to collect fees and taxes, the Contractor must provide a payment gateway to allow for credit card and ACH Debit (eCheck) payments through the ADOT portals. Contractor will serve as the Merchant on behalf of ADOT. This includes all payments through the MAX system, including those processed in MVD field offices, the business suites, as well as the AZ MVD Now portal. Accepted methods of payment must include American Express, Visa, MasterCard and Discover. Additional digital payment methods are preferred such as Google Pay, Apple Pay, and Samsung Pay. In addition, the payment gateway must support two internal payment mechanisms:

Customer Accounts and Prepaid Vouchers (PPV – similar to a gift card). These two internal payment mechanisms enable pre-payment of services.

As the payment gateway will be the payment processor for all payments through MAX, it must include credit and debit card payment processing for the CSR workstations in each of the MVD Field Offices. This will require over 500 Point of Sale (POS) terminals at the workstations. Contractor may be replacing the existing merchant account that currently provides credit/debit card payment processing for MVD Field Offices.

Offeror must propose a payment processing solution and must have experience in payment processing of this volume or larger.

4.1.1.1. The payment gateway shall be used for the following:

o All Portals o MVD’s AZ MVD Now account-based consumer portal o All Business Portals

Field Office CSR Workstations (over 500 in 44 different offices) Kiosks o Cash-accepting kiosks (Optional) o Full-service, credit/debit card only kiosks o Kiosks may be existing kiosks owned by the Department or new, Contractor-provided kiosk solutions developed in cooperation with the Department

Refunds/Digital Disbursements o Plate Fee to Owner Refunds o Account Refunds o Fuel Tax Refunds

4.1.1.2. The contractor shall serve as a merchant account on behalf of MVD. Contractors must provide a payment processing solution and must have experience in payment processing of this size or larger.

4.1.1.3. Processing and discount fees for processing credit card transactions will remain the responsibility of the State (see Credit Card Fee statute (A.R.S. § 35-142). The Contractor must comply with all State statutes, rules and regulations.

4.1.1.4. eCheck (ACH debits) are allowed for business transactions and consumer transactions. The eCheck (ACH network) provides a quick and effective way of moving money from one bank account to another. The customer provides their bank routing and account number, and this information is placed into an ACH file for processing. These files are processed nightly and the funds are typically deposited the following banking day. Processing charges are usually very low, on the order of pennies per transaction, unlike credit cards, which charge a percentage per transaction for processing payments. This makes eChecks a desirable method for processing large payments. If the Contractor uses an external eCheck Contractor please describe.

4.1.1.5. For MVD Field Office CSR workstations, Contractor must include sufficient point of sale terminals to allow for processing of in-person credit/debit card transactions.

4.1.1.6. Contractor shall meet all requirements for the Payment Card Industry – Data

Security Standards (PCI-DSS) that are required for merchants processing credit card payments. Contractor shall be responsible for all PCI-DSS compliance activities, including, but not limited to, compliance audits, security audits, security penetration tests, and internal and external audits.

The proposed solution and all connections to other services and databases must be compliant with the most recent version of PCI-DSS.

4.1.1.7. The proposed solution must have built-in reporting capability and should be downloadable in common formats including, but not limited to, CSV/PDF/HTML. Offeror is required to demonstrate a method for reconciling and reporting transaction fees and payments.

4.1.1.8. The proposed solution should include a process for disputing customer initiated chargebacks, and a timeframe for returning chargeback reversal funds shall be agreed upon between the department and the offeror.

4.1.1.9. The proposed solution should include a proposed timeframe for remitting to the Department taxes and fees collected from customers and owed to the Department, including interest to be charged for payments remitted late.

4.1.1.10. The proposed solution must provide the ability to process refunds through an online interface. The refund functionality should include the ability to process full transaction refunds, partial transaction refunds and partial product value refunds, and to process refunds directly to the initial method of payment (i.e.

providing a credit card refund back onto the paying card).

4.1.2. Field-Office Front End

4.1.2.1. MVD Field Offices are primarily full-service offices staffed with CSRs serving customers in person with selected services available on self-service kiosks.

The ATP ESP manages and maintains all frontline information technology equipment in MVD field offices. This includes the technology at each CSR’s desk. There are currently 550 CSR workstations across the MVD enterprise, each consisting of:

4.1.2.1.1. 1 Dell OptiPlex Microcomputer

4.1.2.1.2. 2 Dell monitors

4.1.2.1.3. 1 HP Printer

4.1.2.1.4. 1 Kodak feed scanner with passport scanning capability

4.1.2.1.5. 1 flatbed scanner accessory

4.1.2.1.6. 1 Honeywell barcode scanner

4.1.2.1.7. 1 Topaz GemView 10 Signature Pad for document review, acceptance, and signature capture

4.1.2.1.8. 1 Razer Camera w/ Insta360 tripod.CSR workstations and monitors

4.1.2.1.9. CSR workstation cameras for customer photo capture and facial recognition

4.1.2.2. Contractor supported equipment across the MVD enterprise includes additional equipment necessarily to enable MVD business:

4.1.2.2.1. 180 all-in-one PCs for driver knowledge testing

4.1.2.2.2. 45 Self-service transactional kiosks (See section 4.1.2.4. Self

Service and Queue Check-in Workstations)

4.1.2.2.3. 124 check-in kiosks (See section 4.1.2.4. Self Service and

Queue Check-in Workstations)

4.1.2.2.4. 20 TeleMVD stations

4.1.2.2.5. 46 color printers

4.1.2.3. This also includes information technology infrastructure providing connectivity to the CSR workstations:

4.1.2.3.1. Network for customer-facing services (See Section 4.1.2.13)

4.1.2.3.2. Failover network for customer facing services

4.1.2.3.3. UPS and cabling services for network equipment.

4.1.2.3.4. Wireless access points for front office connectivity for

Contractor supported devices.

4.1.2.4. MVD field offices locations are detailed in the table below. The employee count generally corresponds with the number of CSR Workstations at each location. Knowledge test stations and self-service and queue check-in workstations are generally allocated to the field offices proportionally to the number of employees at the office.

Location Address

Employee

Count

Apache Junction 575 N Idaho Rd Ste 600, Apache Junction, AZ 85119 11

Avondale 1452 N. Eliseo C. Felix Jr. Way, Avondale, AZ 85323 22

Bullhead City 1325 Alonas Way, Bullhead City, AZ 86442 12

Casa Grande 240 W Cottonwood Ln, Casa Grande, AZ 85122 10

Chandler 50 S Beck Ave, Chandler, AZ 85226 25

Chinle Hwy 191 Apache Complex, Chinle, AZ 86503 3

Clifton 397271 AZ 75, Clifton, AZ 85533 2

Coolidge 672 N. AZ Blvd, Coolidge, AZ 85128 6

Cottonwood 525 S 12th St, Cottonwood, AZ 86326 9

Douglas 2050 N. Hwy 191, Douglas, AZ 85607 6

Flagstaff 1959 S Woodlands Village Blvd Ste B, Flagstaff, AZ 86001 12

Glendale 16380 N 59th Ave, Glendale, AZ 85306 24

Globe 4335 U.S. 60, Claypool, AZ 85532 5

Goodyear (CDL) 14370 W Van Buren St, Goodyear, AZ 85338 6

Green Valley 130 W. Duval Mine Road, Suite 150, Green Valley, AZ 85614 8

Holbrook 2108 E Navajo Blvd, Holbrook, AZ 86025 3

Kingman 3670 E Andy Devine Ave (Hwy 66), Kingman, AZ 86401 12

Lake Havasu City 2081 Spawr Circle, Lake Havasu City, AZ 86403 12

Littlefield 696 N. County Highway 91, Beaver Dam, AZ 86432 3

Mesa / Gilbert 4123 E. Valley Auto Dr., Mesa, AZ 85206 31

Nogales 3030 N Grand Ave, Nogales, AZ 85621 10

Page HWY 89 MP 551.2, Page, AZ 86040 4

Parker 29305 Mutahar St, Parker, AZ 85344 5

Payson 122 East Highway 260, Ste 122, Payson, AZ 85541 5

Phoenix Northwest 20626 N. 26th Ave, Phoenix, AZ 85027 20

Phoenix South Mountain 221 E. Olympic Dr., Phoenix, AZ 85040 18

Phoenix West 4005 N. 51st Ave., Phoenix, AZ 85031 30

Prescott 1105 Commerce Dr, Prescott, AZ 86305 14

Safford 310 W Main St, Safford, AZ 85546 6

Scottsdale 7339 E Paradise Ln, Scottsdale, AZ 85260 22

Show Low 161 E. Deuce of Clubs, Show Low, AZ 85901 9

Sierra Vista 5224 E Charleston Rd, Sierra Vista, AZ 85635 9

Surprise 13009 W Bell Rd, Surprise, AZ 85378 22

Tempe 1703 E Larkspur Ln, Tempe, AZ 85281 22

Tuba City 300 Edgewater Dr, Tuba City, AZ 86045 3

Tucson (CDL) 621 E 22nd St, Tucson, AZ 85713 6

Tucson East 1360 S Stocker Dr, Tucson, AZ 85710 23

Tucson North 7330 N Shannon Rd, Tucson, AZ 85741 22

Tucson Regional 3565 S Broadmont, Tucson, AZ 85713 31

Wickenburg 472 E Wickenburg Way Ste 304, Wickenburg, AZ 85390 4

Window Rock SR 264 MP 476, Window Rock, AZ 86515 4

Winslow 200 N ADOT Ln, Winslow, AZ 86047 3

Yuma 2165 E Gila Ridge Rd, Yuma, AZ 86365 24

4.1.2.5. Field office Front End equipment may include additional equipment at the customer intake point in a field office, including near-field communication devices for reading mobile driver licenses (mDLs) compliant with ISO 18013- 5.

4.1.2.6. Self-Service and Queue Check-in Workstations

ADOT MVD field offices currently have two kinds of kiosks. The most common kiosks encountered by our customers are check-in kiosks, which consist of tablets attached to tables at the entrance of the office, where customers can check in. To check in, customers can scan their driver license or enter their information, and upon doing so MVD begins tracking their journey in the office, directing them to the correct line. There are currently 124 check in kiosks statewide, and MVD and the successful Offeror may choose to expand the functionality offered via these kiosks, as well as expand the number of kiosks in each office to accommodate business needs.

MVD also has 70 self-service kiosks placed in 29 MVD field offices and 4 City/County Court buildings. These kiosks do not check customers into the queue in the field office, but offer a limited number of customer services, such as vehicle registration renewal and driver license replacements, and they are able to accept and process credit and debit cards.

The user interface is custom-built and optimized for touchscreen kiosk usage, and is distinct from, and shall remain distinct from, the user interface as for AZ MVD Now portal.

4.1.2.7. TeleMVD

MVD’s service offering includes TeleMVD, which is a self-service work station that provides a customer access to a CSR in a remote location, who can process the customer’s transactions. Each TeleMVD station includes hardware to facilitate the processing of driver and motor vehicle transactions.

Hardware includes:

Windows-based PC workstation in a browser kiosk mode that cannot be manipulated by the customer Camera for video chat, credential image capture, and facial recognition Document scanner for the input of customer documents Keyboard and trackball to allow customers to input information.

Offeror shall continue to support existing TeleMVD stations and provide the ability to continue to supply additional TeleMVD workstations with similar functionality.

4.1.2.8. MVD Field Office Network

Network connectivity for public customer-facing functions in ADOT MVD field offices is currently provided by the incumbent supplier via agreements with local commercial internet service carriers. Offerors shall continue to provide network connectivity in MVD field offices. The MVD field offices supported by this network arrangement are the offices listed above. The equipment listed above in section 4.1.2.1 is also connected to these networks, which are located in the offices listed in section 4.1.2.4

The network shall continue to support both wired and wireless connections and include appropriate routers, firewalls, patch panels, and other equipment as necessary. Fiber is preferred if available, and speeds should be 200 Mbps or greater. Contractor shall continue to negotiate and arrange for service from carriers.

4.1.3. Renew by Mail Outsourcing

Over 130,000 people per year still prefer to renew their vehicle registrations by mailing in their renewal notices with a check to MVD. In 2016 MVD chose to outsource the processing of mail renewals. It is MVD’s desire to have the Contractor provide the processing of the Renew by Mail function.

4.1.3.1. Renew by Mail outsourcing shall include:

4.1.3.1.1. Processing vehicle registration renewal transactions submitted by customers through the mail on standardized forms with checks as the accepted tender type

4.1.3.1.2. Processing address changes as noted on the renewal form

4.1.3.1.3. Returning registration renewal transaction materials to customers for those transactions that cannot be processed without further information or action on behalf of the customer

4.1.3.1.4. Depositing checks to the ADOT/MVD designated bank

account without pre-authorization (i.e., account fund availability)

4.1.3.1.5. ADOT/MVD retains responsibility for handling non-sufficient fund situations, and any corresponding actions (e.g., registration suspension, etc.)

4.1.3.1.6. Preserving or improving Service level standards as presently in place for the Renew by Mail operation such as backlog no greater than seven (7) days

4.1.3.1.7. Provide weekly reporting to ADOT/MVD of transaction volumes including backlog

4.1.3.1.8. Ensure service level is maintained at agreed to levels – adding additional resources as required to maintain the backlog level

4.1.4. Mandatory Vehicle Insurance Verification System

Contractor shall provide integration to MAX with an on-demand real time insurance verification system. The system shall provide:

On-demand real-time insurance verification via API during events such as vehicle registration renewals and traffic stops.

Batch insurance verification of vehicles registered in Arizona Batch and real-time business to business interfaces with motor vehicle and law enforcement systems Web portal access of state users and motor vehicle insurance companies Comprehensive real-time reporting Web services and book of business interfaces with insurance using IICMVA standards 24/7 technical support for state users Email based support for insurers Secure cloud hosting

The incumbent supplier subcontracts with a Contractor to provide integration with MVD’s MAX system.

4.1.5. Driver, Vehicle and Title Service Incoming Mail Scanning

MVD desires to continue to outsource certain document sorting and scanning functions to the ATP ESP or designee. The Contractor shall pick up mail delivered to ADOT Mail Services at 1655 W. Jackson St. Phoenix, AZ 85007, daily and sort, open, and scan the contents of all mail designated for certain MVD business groups so that it can be viewed and processed by MVD CSRs across MVD’s statewide enterprise.

This helps MVD utilize CSP capacity that is both back office and in front-end field offices when that capacity is available, so that the work that comes in by physical mail is not restricted to being done by those with physical access to the mail.

Mail is picked up at least once each business day, resulting in approximately 20 to 22 pickups per month, and the average monthly scanning volume is approximately 70,000 pages.

4.1.6. Call Center/Help Desk Support

4.1.6.1. Level 1 help desk includes basic front-line customer support, including:

AZ MVD Now registration and setup help Login and password issues Basic AZ MVD Now site navigation and usage Locating and uploading/downloading documents Using Chatbot and Help Basic enhanced authentication help Payment and account funding assistance

4.1.6.2. Level 2 help desk includes technical support, including:

Investigating and resolving technical issues that could not be resolved by Level 1 help desk

Determining if business or technical application problem for escalation to Level 3

Identifying software application bugs and database errors Investigating more complex payment and funding issues Communicating with MVD business partners and Contractors as directed by MVD

4.1.6.3. The Contractor shall provide help desk services that include telephone, email and web support for users. This will include a help desk that will meet the needs of consumers and business customers without additional charge to users. Contractor requirements for telephone, email and online support to include the following:

The contractor will provide a live call center operation at a minimum on a business day (8:00 am – 5:00 pm Monday-Friday) basis.

Contractors may optionally bid on a 24-hour a day, 7-days a week basis which is desired by MVD.

The contractor will develop and, upon receipt of ADOT’s approval, implement escalation procedures for help desk calls not resolved during the initial interaction with users.

ADOT will provide scripts and the assistant AI engine

4.1.7. MAX System Hosting, Development, and Maintenance

4.1.7.1. MSA for MvM Staffing and Consulting Services

4.1.7.1.1. MVD has a business unit, known as the Motor Vehicle

Modernization (MvM) Group, that provides development, maintenance, support, and operations of the MVD suite of software products including MAX and AZ MVD Now. The MvM Group comprises approximately 60 technology and business professionals, all of whom are contractors. The MvM professional contractors are contracted under a Managed Services Agreement (MSA). The MSA with the current Managed Services Provider (MSP) expires at the same time as the current eGov agreement.

4.1.7.1.2. Each resource acquired under this Contract shall perform work on the MvM project only. There shall not be limitations to the size and/or scope of individual assignments under the MvM project. The Department shall determine the rate for each position upon posting the position, and shall communicate the rate to the Contractor with the request to hire a resource.

4.1.7.1.3. Offeror shall propose how it will act as the MSP for the MvM

Group during the contract term. Significant growth in contractor staffing is not planned. However, turnover of staff will necessitate some hiring of new staff. Contractor shall be responsible for resourcing, staffing and payroll support functions as well as payment of the MvM contractors on behalf of ADOT. Generally, ADOT will pay Contractor for contractor costs from ADOT’s share of the retained fees, however, ADOT may pay from other ADOT fund sources from time to time.

4.1.7.1.4. The Contractor, as the MSP for the MvM Group, shall provide the sourcing, assignment and management for all assignments regardless of personnel class or project duration. The Department shall have oversight and consistent input regarding Subcontractor selection and any selection criteria for the recruitment of any Subcontractor into the Contractor Network.

Further, the Contractor will provide additional value-added services, including a web-based Contractor Management System (CMS). This focus will provide greater accountability, as well as allowing the Department to focus on more strategic initiatives rather than administrative tasks.

4.1.7.1.5. The Contractor may provide directly or may partner with another Contractor as a subcontractor. Use of the existing Contractor is allowed. A Contractor subcontracted to provide this service may be on multiple Contractor responses.

4.1.7.1.6. The eGov ESP’s MSA function shall be in place solely for obtaining project personnel for the Department’s MvM project and related functions and shall not be used for any other purpose. Functions related to the MvM project include aspects of the Arizona Department of Transportation’s information technology infrastructure on which the success of the solutions being developed by the MvM project are dependent. It is understood by all Parties that any Contractor’s personnel placed under the terms of this Contract is not considered to be in “State Service”, and is not considered as a “Seasonal” or “Temporary” appointment (as defined in Arizona Administrative Code, Title 2, Chapter 5, Personnel Administration Rule R2-5- 101). It is also understood that the Contractor’s personnel are not eligible for any benefits as provided in Arizona Administrative Code, Title 2, Chapter 5, Personnel Administration Article 4.

4.1.7.1.7. The Contractor shall provide qualified IT personnel for the MvM project as required by the Department. The Department reserves the right to recommend individuals and Subcontractors to the Contractor Network. Further, the Contractor shall accept into the Network an individual or Firm that is approved by the Department, and that complies with the Department approved Subcontractor network joining process, including agreeing to the Contract’s standard terms and conditions as a Subcontractor and meeting specified performance criteria.

4.1.7.1.8. As necessary, the Contractor shall work with the Department’s incumbent Contractor and Department personnel to transition seated resources to the new Contractor. If an incumbent Contractor elects to be an active participant in the Contractor’s Network and it agrees to the terms and conditions and rates as set forth, its resource(s) will be transitioned upon award of this Contract. If an incumbent Contractor elects not to participate in any capacity, the MVM Project Manager may hire a staff augmentation resource for a knowledge transfer before the incumbent Contractor’s contract is terminated. The Department business unit may be required to replace the existing resource with a new candidate through the Contractor’s Contract Network. The Contractor for Resourcing and Staffing for

Technology Modernization, which may be a Consulting and/or Staffing organization, shall ensure that placement of personnel, regardless of assignment, shall be from the Contractor’s Network.

4.1.7.1.9. Any interested staffing and consulting business that is recommended and approved by the Department may request to join the awarded Contractors Network by placing a telephone call or sending an email to the Contractors Account Manager or Business Development Personnel. The Contractor shall provide the interested party a general overview of the Contract and, at the interested party’s request, will send a “new contractor packet” via email. The new contractor packet contains all required documentation to register with the Contractor.

Depending on availability and technical expertise, the Contractor may invite the interested party for a face-to-face meeting. Once the interested party and the Contractor have completed all required documentation and have met the requirements of the State-approved Subcontractor network joining process, the interested party shall be deemed pre-qualified and shall be placed on the Contractor’s maintained list of potential subcontractors for future consideration.

4.1.7.1.10. Procedures for the Provision of Staffing

This Section shall apply when staffing services are to be provided for the MvM project and related functions. Orders for staffing services to be provided for the MvM project shall be placed by the Department’s authorized representative to the Contractor. The Department may require the Contractor to assist with creating necessary job descriptions.

Purchase Order Acceptance. The Contractor shall acknowledge receipt and acceptance of all Purchase Orders. Contractor shall notify the Department and its authorized representative, in writing or electronically, within two (2) days of Purchase Order receipt, unless otherwise directed by the Department or its authorized representative. In accepting the Purchase Order, the Contractor shall contact the Department and its authorized representative to confirm the type, extent, and time frame within which the Service is needed.

Modification or Cancellation. The Department may, at any time prior to Order acceptance, modify or cancel the order, in whole, or in part. The Department shall have no liability for making such modifications or cancellations. The Department may modify or cancel an order after order acceptance. The Contractor may modify orders as authorized by the Department. Modifications or cancellations shall be executed in writing or electronically.

Any unauthorized modification or cancellation by Contractor shall constitute a material breach of the Contract and, at the Department’s option, cause the order to be void. Department liability for modifications or cancellation made after offer acceptance shall be limited to the full cost of all non-recoverable expenses, including any special charges, caused by the modification, not to exceed the non-recurring charges for Services in the order.

Staffing Placement. The Contractor shall provide up to five

(5) resumes for review by the Department. The Department shall have the right, if necessary, to interview all prospective personnel and to accept or reject any or all based upon the required skills and the background and experience of each individual.

Delivery. Following Department review of resumes and Department interviews, the Department shall select the personnel they wish to utilize. The contractor shall provide selected personnel within a reasonable period of time after necessary pre-employment screenings are complete. Any other delivery schedule of selected personnel shall be by mutual agreement between the Department and the Contractor. In the event that the Department elects to start personnel pending completion of such screening, Contractor shall do so only with the Department’s written approval.

Billing and Payments. The contractor shall be responsible for all accounting and payroll functions in connection with its services. The contractor shall maintain complete and accurate accounting records to substantiate all charges, and must provide each of its personnel with time cards.

Time cards shall be maintained by each of the Contractor’s personnel on a daily basis and, at the end of each period (weekly, bi-weekly, monthly, etc. as requested by the Department or its authorized representative), the hours of work by each of the Contractor’s personnel shall be approved by the Department. These time cards shall serve as the basis for the Contractor's billing to the Department and shall be submitted as requested by the Department via the required Vendor Management System provided by Contractor. Contractor shall submit itemized invoices for services purchased under the Contract.

Overtime. For purposes of this Contract, overtime is defined as any time in excess of forty (40) hours per week.

Weekend and after-hours work shall not be considered overtime unless in excess of forty (40) hours. If the positions fall under Fair Labor Standards Act (FLSA), then the overtime rate shall be billed at 1.5 times the regular rate for all approved overtime hours. The Contractor shall notify the Department if the position qualifies under FLSA when requesting written approval for overtime. If the Contractor fails to notify the Department that the position falls under FLSA, then the Contractor shall be responsible for paying any wages due in excess of the regular rate for the approved overtime. If the positions do not fall under FLSA, then the bill rate for overtime shall be the same as the bill rate for regular/straight time for all approved overtime hours. The Department shall not pay any other pay or shift premiums, including but not limited to holiday or weekend time, unless specified in the job posting or requisition.

4.1.7.1.11. Procedures for the Provision of Consulting Services

This Section shall apply when consulting services are to be provided for the MVM project. The Contractor shall provide qualified and competent professionals with the specified expertise or familiarity with the specified system or projects as stated in the Task Order or Request for Service. For each MVM consulting assignment, the Department or its authorized representative shall issue to the Contractor a request as follows:

A. Task Order. Each task order request will contain a description of the outcomes desired, the timeframe for completion, systems and applications to be integrated, and shall identify all milestones, including a complete description of the deliverables due at each milestone; and the timeline for submission and the Department contact(s) to whom they are submitted.

Upon receiving a task order request, the Contractor shall acknowledge receipt within two (2) business days.

Contractor and Department’s authorized representative shall consult regarding requirements, scope of services, and contractor selection criteria. The contractor shall review the available contractor list and seek input from the Department's authorized representative if necessary.

Contractor shall provide written project response from Contractors to the Department or its authorized representative within a time frame as directed by the Department. The written response shall contain the following:

o An Executive Summary demonstrating an understanding of the Department’s request.

o A detailed proposed project plan including, at a minimum, a list of tasks, timelines, milestones, deliverables, services, assumptions, and risks for the project, as well as the roles and responsibilities of individuals assigned to the project.

o A detailed description of the implementation team, including the qualifications for both a dedicated project manager and for the rest of the project team. If required, provide a proposed budget that lists the project team, number of hours each team member will take to complete the project, each team member’s hourly rate and the total cost estimate. A detailed testing plan, if required.

B. Task Order Responses. The department shall review the

Contractor responses to determine if, when and how to proceed with the project and will notify the Contractor as appropriate. The department may request oral presentations from Contractors submitting responses, including potentially interviewing the proposed staff for the completion of the project. Such oral presentations will be coordinated by the Contractor.

o The Department reserves the right to accept and/or reject Contractor’s project plan, personnel and/or project cost estimates. The Contractor’s preparation and submission of a project request shall not be reimbursed.

Contractor shall not begin work on any project until the Department or its authorized representative has accepted the project plan and has notified the Contractor as such.

C. Task Order Acceptance. Once a project response has been accepted by the Department, the Contractor shall not exceed the approved timeline or approved costs without prior written approval of the Department. If prior written approval is not received, the Contractor shall not be paid in excess of the approved amount. If timelines are not met and the Contractor does not advise the Department of the delay prior to the due date and receive permission for the delay, the Department may assess a penalty not to exceed ten percent (10%) of the approved cost of the project. In the event that the Department requires any change to the scope of work to be performed under a given project, the Contractor shall submit a revised project cost estimate to the Department or its authorized representative within a mutually agreed upon timeframe. The revised project response shall include the following:

o Changes to the scope of work, including adjustments to timeframes for project completion;

o an all-inclusive, not-to-exceed project price estimate supported by a cost breakdown detailing the estimated number of hours by job description (including volume discount);

o any other project-related cost required to complete the project as changed by the Department.

D. Project Management. For each project assigned, the

Contractor shall fully staff the project and ensure there is a designated point of contact who shall be available for consultation at all times. Depending on the nature and complexity of the project, the Contractor shall be responsible for assembling and coordinating a project team consisting of varying disciplines and professional levels.

Contractor shall designate a Project Manager to serve as liaison with designated Department staff. The Project Manager shall have the overall responsibility for the project, including performance, reporting, and quality control responsibilities. The Project Manager may be required to remain on-site for certain projects depending on the complexity or importance. The Project Manager shall, upon request, submit written progress reports to the Department. The reports shall include, but not be limited to:

o A management report of current and completed milestones/deliverables; Provide monthly expenditure and activity reports if requested; Total expenses accrued as of the report date; and Overall assessment of project status to include a description of any outstanding problems along with a recommendation(s) for corrective action.

E. Payment. Project payments shall be set up as progress payments. Payments, as mutually agreed upon in the project response, shall be made upon successful milestone completion, including acceptance testing as identified in the project response. A scheduled progress payment may be withheld if the required deliverables are of unacceptable quality or do not pass acceptance testing until the deliverables are re-submitted and accepted. A final payment shall be made upon project completion and final acceptance. The final payment shall not be less than thirty percent (30%) of the all-inclusive price estimate.

Contractors may include a fee of up to 2% of contractor payments to be compensated for this service.

4.1.7.2. eGov Administrative Services eGov program covers the services and projects within MVD. eGov Administrative Services are core functions necessary for administering the contract.

4.1.7.3. eGov Payment Agent

The contractor will serve as the payment agent for ADOT for eGov-related expenditures. At ADOT’s direction, the Contractor will pay from the eGov fund balance, amounts to Contractors and other parties.

As the eGovernment Contractor for ADOT, the Contractor will be collecting fees from the ADOT customers for MVD services.

4.1.7.3.1. Of the total fees collected, the following must be accounted for and payments managed by the Contractor:

Fees to be paid to ADOT ; Department funds must be made available to the Department and deposited into its account within a timeframe proposed by the offeror and agreed upon with the Department

Penalties and interest due for funds not deposited within 3 business days of the transaction business date

Visible payment reconciliation Payment processing fees to be retained by the contractor Reimbursement fees authorized by Third Party Statutes Percentage of reimbursement fees retained by the contractor as bid in response to this solicitation Payments of reimbursement fees to other parties and partners as directed by ADOT (e.g. MvM contractors, other eGov contractors, cloud hosting contractors, etc.)

The Contractor will have two different roles, depending on the situation, as follows:

F. "Paying Agent" – The Contractor acts solely as the distributor of funds from the Department reserves to contractors(s) as instructed by the Department. The Paying Agent has no delivery affiliation with or performance responsibilities over the Department-directed Contractor.