CSA-EPC-03092023 - RFP.pdf

MARYLAND STATE TREASURER’S OFFICE

LOUIS L. GOLDSTEIN TREASURY BUILDING

80 CALVERT STREET, ROOM 109

ANNAPOLIS, MARYLAND 21401

REQUEST FOR PROPOSALS (RFP) FOR

ELECTRONIC PAYMENT CARD SERVICES

FOR THE

DEPARTMENT OF HUMAN SERVICES

CHILD SUPPORT ADMINISTRATION

(DHS/CSA)

RFP #CSA-EPC-03092023

ISSUE DATE: MARCH 9, 2023

NOTICES:

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO

RESPOND TO THIS SOLICITATION.

A Prospective Offeror that has received this document from a source other than eMarylandMarketplace

(eMMA) https://procurement.maryland.gov should register on eMMA. See Section 4.1.

RFP Title: Electronic Payment Card Services for DHS/CSA Solicitation #: CSA-EPC-03092023 RFP Document

RFP for Maryland State Treasurer’s Office on behalf of DHS/CSA Page ii of 86

VENDOR FEEDBACK FORM

To help us improve the quality of State solicitations, and to make our procurement process more responsive and business friendly, please provide comments and suggestions regarding this solicitation.

Please return your comments with your response. If you have chosen not to respond to this solicitation, please email or fax this completed form to the attention of the Procurement Officer (see Key Information Summary Sheet below for contact information).

Title: RFP for Electronic Payment Card Services for Department of Human Services, Child Support Administration, RFP #CSA-EPC-03092023

1. If you have chosen not to respond to this solicitation, please indicate the reason(s) below:

� Other commitments preclude our participation at this time

� The subject of the solicitation is not something we ordinarily provide

� We are inexperienced in the work/commodities required

� Specifications are unclear, too restrictive, etc. (Explain in REMARKS section)

� The scope of work is beyond our present capacity

� Doing business with the State is simply too complicated. (Explain in REMARKS section)

� We cannot be competitive. (Explain in REMARKS section)

� Time allotted for completion of the Proposal is insufficient

� Start-up time is insufficient

� Bonding/Insurance requirements are restrictive (Explain in REMARKS section)

� Proposal requirements (other than specifications) are unreasonable or too risky (Explain in REMARKS section)

� MBE or VSBE requirements (Explain in REMARKS section)

� Prior State of Maryland contract experience was unprofitable or otherwise unsatisfactory.

(Explain in REMARKS section)

� Payment schedule too slow

� Other: __________________________________________________________________

2. If you have submitted a response to this solicitation, but wish to offer suggestions or express concerns, please use the REMARKS section below. (Attach additional pages as needed.)

REMARKS:

Vendor Name: ________________________________ Date: _______________________

Contact Person: _________________________________ Phone (____) _____ - _________________

Address: ______________________________________________________________________

E-mail Address: ___________________________________________________________

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KEY INFORMATION SUMMARY SHEET

Request for Proposals Electronic Payment Card Services for Department of Human Services, Child Support Administration

Solicitation Number: RFP #CSA-EPC-03092023

RFP Issue Date: March 9, 2023

RFP Issuing Office: Maryland State Treasurer’s Office

Cissy Blasi Maryland State Treasurer’s Office 80 Calvert Street, Room 109 Annapolis, MD 21401 e-mail:

Office Phone:

cblasi@treasurer.state.md.us (410)260-6382

Proposals are to be sent to: Maryland State Treasurer’s Office Attention: Cissy Blasi Louis L. Goldstein Treasury Building 80 Calvert Street, Room 109 Annapolis, MD 21401

OR SUBMIT

Via eMMA

Questions Due Date and Time March 22, 2023 by 2:00 p.m. Local Time Offerors are to submit questions to the Procurement Officer via email at: cblasi@treasurer.state.md.us

Proposal Due (Closing) Date and Time:

April 12, 2023 by 2:00 p.m. Local Time Offerors are reminded that a completed Feedback Form is requested if a no-bid decision is made (see page ii).

Oral Presentation (if any) May 1, 2023

MBE Subcontracting Goal: There are no MBE goals related to this RFP.

VSBE Subcontracting Goal: There are no VSBE goals related to this RFP

Contract Type: Indefinite quantity with fixed unit prices.

Contract Duration: Five (5) Year base period with two (2) one-year renewal option periods

Primary Place of Performance:

N/A

SBR Designation: No

Federal Funding: No mailto:cblasi@treasurer.state.md.us

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TABLE OF CONTENTS – RFP

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

1.2 Minimum Service Requirements

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.2 Order of Precedence

2.3 Background, Purpose and Goals

2.4 Electronic Payment Card (EPC) Services

2.5 Transition

2.6 Other Services for Consideration

3 Contractor Requirements: General

3.1 Contract Initiation Requirements

3.2 End of Contract Transition

3.3 Invoicing

3.4 Disaster Recovery and Data

3.5 Insurance Requirements

3.6 Security Requirements

3.7 SOC 2 Type 2 Audit Report

3.8 Experience and Personnel

3.9 Substitution of Personnel

4 Procurement Instructions

4.1 eMaryland Marketplace Advantage (eMMA)

4.2 Questions

4.3 Procurement Method

4.4 Proposal Due (Closing) Date and Time

4.5 Multiple or Alternate Proposals

4.6 Economy of Preparation

4.7 Public Information Act Notice

4.8 Award Basis

4.9 Oral Presentation

4.10 Duration of Proposal

4.11 Revisions to the RFP

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4.12 Cancellations

4.13 Incurred Expenses

4.14 Protest/Disputes

4.15 Offeror Responsibilities

4.16 Acceptance of Terms and Conditions

4.17 Proposal Affidavit

4.18 Contract Affidavit

4.19 Compliance with Laws/Arrearages

4.20 Verification of Registration and Tax Payment

4.21 False Statements

4.22 Payments by Electronic Funds Transfer

4.23 Electronic Procurements Authorized

4.24 Living Wage Requirements

4.25 Conflict of Interest Affidavit and Disclosure

4.26 Maryland Healthy Working Families Act Requirements

5 Proposal Format

5.1 Two Part Submission

5.2 Proposal Delivery and Packaging

5.3 Volume I - Technical Proposal

5.4 Volume II – Financial Proposal

6 Evaluation and Selection Process

6.1 Evaluation Committee

6.2 Technical Proposal Evaluation Criteria

6.3 Financial Proposal Evaluation Criteria

6.4 Selection Procedures

6.5 Documents Required upon Notice of Recommendation for Contract Award

Attachment A. Financial Proposal Instructions & Form

Attachment B. Proposal Affidavit

Attachment C. Maryland Living Wage Affidavit of Agreement for Service Contracts

Attachment D. Conflict of Interest Affidavit and Disclosure

Attachment E. Contract

Attachment F. Collateral Security Agreement

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Attachment G. Designation of Depository

Attachment H. Contract Affidavit

Appendix 1. – Section 6-201(e) of the State Finance and Procurement Article of the Annotated Code of Maryland

Appendix 2. – Section 6-202 of the State Finance and Procurement Article of the Annotated Code of Maryland

Appendix 3. – Section 6-209 of the State Finance and Procurement Article of the Annotated Code of Maryland

Appendix 4. – Section 6-222 of the State Finance and Procurement Article of the Annotated Code of Maryland

Appendix 5. – Section 6-203 of the State Finance and Procurement Article of the Annotated Code of Maryland

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1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

As part of the determination to be considered reasonably susceptible of being selected for award, the Offeror shall specifically and clearly state in its proposal that it meets the requirements in this section.

1.1.1 The Offeror is a financial institution as defined in Section 6-201(e) of the State Finance and Procurement Article of the Annotated Code of Maryland (Appendix 1).

Alternatively, for an Offeror that is not a financial institution, the Offeror will contract with a financial institution to serve as the depositary of funds to be distributed through EPCs, (Specify the name of any such financial institution to be used by the Offeror).

1.1.2 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) must be certified by or a member in compliance with the Federal Deposit Insurance Corporation (“FDIC”).

1.1.3 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) must have a Kroll Bond Rating Agency (“KBRA”) rating, or a similar financial strength rating from a nationally recognized statistical rating organization of at least a "B."

1.1.4 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) must have an existing electronic payment card relationship with either VISA or MasterCard.

1.1.5 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) must have the ability to clear transactions or cash through all major book entry or electronic securities depositories, such as the DTC/ID system and the Federal Reserve System.

1.1.6 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) must be a member of the National Automated Clearing House Association (NACHA) and follow the rules outlined in the latest published ACH manual and process Electronic Funds Transfers (“EFTs”) in the manner prescribed by NACHA.

1.1.7 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) accept e-processing payments per NACHA DED Child Support Addendum Records for Financial Institution Data Match payments.

1.1.8 The Offeror must have a plan for business continuity and recovery as a result of disaster.

1.1.9 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) must provide for the collateralization of all funds in accounts in accordance with the requirements set forth in Sections 6-202, 6-209, and 6- 222 of the State Finance and Procurement Article. (See Appendix 2, 3, and 4). All collateral must be held in the name of the State of Maryland either, (a) with the Federal Reserve Bank of Richmond, (b) with the Federal Reserve Bank of Boston, or (c) at the sole discretion of the Maryland State Treasurer (the “Treasurer”), on deposit with an independent financial institution acceptable to the Treasurer. The financial institution holding State funds must sign the Collateral Security Agreement (see Attachment F, form of Collateral Security Agreement).

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1.1.10 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) must meet all Regulation E requirements, including those that may apply specifically to government programs. Regulation E issued by the Board of Governors of Federal Reserve may be accessed online at:

http://www.federalreserve.gov/bankinforeg/regecg.htm.

1.2 Minimum Service Requirements

In its proposal, each Offeror must acknowledge and agree that it will meet or exceed the following minimum services requirements.

1.2.1 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) shall maintain its KBRA Rating or similar financial strength rating from a nationally recognized statistical rating organization, such as Kroll Bond Rating Agency, Inc., of at least a "B" for the term of the Contract. Should the Offeror's rating drop below "B", the Treasurer, at their discretion, may dismiss the Offeror, require additional collateral of the Offeror, or take other actions as she deems necessary under the circumstances to protect the interests of the State of Maryland.

1.2.2 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) shall provide collateral for accounts in accordance with the requirements set forth in §§ 6-202, 6-209, and 6-222 of the State Finance and Procurement Article. (See Appendices 2, 3, and 4 respectively). Except as required or permitted under § 6-202 with respect to surety bonds or letters of credit provided as collateral, the collateral shall be on deposit in the name of the Treasurer, State of Maryland, either (a) with the Federal Reserve Bank of Richmond, (b) with the Federal Reserve Bank of Boston, or (c) at the sole discretion of the Treasurer, on deposit with an independent financial institution acceptable to the Treasurer.

1.2.3 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) must agree to conform to all FDIC guidelines on collateral to insure clear title to all collateral held will rest with the Treasurer in the event of default. If an overnight investment program is proposed (above), that requires collateralization, the collateral pledged to secure account deposits may also be used to secure the overnight repurchase agreement.

1.2.4 The Offeror (or, in the case of an Offeror that is not a financial institution, the depositary financial institution) must be compliant with the Payment Card Industry Data Security Standard (PCI-DSS) for the processing of credit card.

1.2.5 The financial statements of the Offeror must be audited annually by an independent certified public accounting firm and an unqualified opinion must be issued by the auditor in connection with the audit. Include Offeror’s most recent audited financial statements.

One copy of the financial report with all attachments is to be included in original volume only.

1.2.6 Offeror call centers providing customer service, as indicated in the RFP, must be located within the geographical boundaries of the United States.

1.2.7 The Offeror must provide customer support in English and Spanish languages.

1.2.8 Offeror must agree that any material available to the public be approved by CSA prior to release.

1.2.9 Offeror must agree that the State of Maryland shall own the Uniform Resource Locator (“URL”) for retrieving CSA’s web address.

http://www.federalreserve.gov/bankinforeg/regecg.htm http://www.federalreserve.gov/bankinforeg/regecg.htm

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1.2.10 The EPC cardholder costs/fees (if any). At the minimum, no fee should be assessed in the following scenarios:

a. Purchase at merchants (signed, using PIN, online, phone or mail purchases);

b. ATM transactions;

c. ATM balance inquires (all ATMs);

d. Declined transactions (ATMs only);

e. At the minimum of one/week ATM withdrawal at other financial institution’s

ATMs; and

f. Cash access fee for the first withdrawal at financial institutions that accept

VISA/Mastercard card limited to available balance only.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

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2 Contractor Requirements: Scope of Work

2.1 Summary Statement

The Maryland State Treasury Office (STO or the "Office") is issuing this Request for Proposals (RFP) on behalf of the Maryland Department of Human Services (DHS), Child Support Administration (CSA) to provide Electronic Payment Card Services to disburse monies collected on behalf of individuals who receive child support services.

2.1.1 It is the State’s intention to obtain goods and services, as specified in this RFP, from a Contract between the selected Offeror and the State.

2.1.2 The STO intends to make a single award as a result of this RFP. See RFP Section 4.8 Award Basis for more Contract award information.

2.1.3 An Offeror, either directly or through its subcontractor(s), must be able to provide all goods and services and meet all the requirements requested in this solicitation and the successful Offeror (the Contractor) shall remain responsible for Contract performance regardless of subcontractor participation in the work.

2.2 Order of Precedence

The Contract between the parties will be embodied in the Contract documents which will consist of the following, listed in their order of precedence:

1) the executed Contract;

2) the RFP; and

3) the Offeror's proposal.

The Office will not accept any modifications to the order of precedence provision of this solicitation.

2.3 Background, Purpose and Goals

The Annotated Code of Maryland, Family Law Article, Sections 10-106, 10-107 and 10-108 provide for the establishment of a CSA within the Department of Human Services (“DHS”). The child support program is State administered and operated locally with offices located in each of the 23 Maryland counties and Baltimore City. The child support program collects child support payments from non-custodial parents and distributes it to custodial parents. The centralization of disbursement of child support payments was implemented in April 1996.

Child support payments are remitted centrally to the front-end receipting vendor for the State and are deposited into a central depository account for CSA. Other funds deposited into the account are from employers by electronic funds transfer (“EFT”), and federal and state tax intercept collections.

Currently, there are 66,882 Electronic Payment Issuance Card (“EPIC”) customers.

2.3.1 The selected Offeror is required to maintain an EPC program for the disbursement of child support payments in order to:

• ensure cardholders receive the child support benefits efficiently, accurately, and securely;

• reduce costs;

• create efficiencies;

• maintain or increase the flexibility of accessing payments for recipients; and

• reduce the potential for fraud inherent in use of paper checks.

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2.4 Electronic Payment Card (EPC) Services

2.4.1 EPC Service Requirements

In its proposal, each Offeror must demonstrate that it meets each of the service requirements listed below and provide detailed descriptions related to the requirement.

2.4.1.1 Describe the EPC design process and the timeline for this process.

2.4.1.2 CSA shall have the right to approve the name, design, content (including activation sticker), and graphics of the EPC. Describe how you will ensure these rights.

2.4.1.3 The State of Maryland shall own the EPC design. Describe how you will ensure that it becomes the property of DHS/CSA.

2.4.1.4 Describe how the activation sticker on the EPC is in English and Spanish.

2.4.1.5 Describe the expiration process, if any, for the EPC. Provide guidelines for EPC expiration dates and policies.

2.4.1.6 Any Child Support Client referred by CSA shall not be denied participation in the EPC program unless required by State or federal law or regulations. Describe how CSA will be notified within one (1) business day of any instances when a child support client is denied participation.

2.4.1.7 Describe the enrollment/registration process for new/additional child support recipients to receive an EPC. Describe the information needed from CSA to issue EPC’s to child support recipients.

2.4.1.8 Describe how the EPC distribution process will work, including the maximum time to process an EPC until receipt of the EPC along with instructional materials by the cardholder.

2.4.1.9 Describe the process for EPCs being returned as undeliverable and how CSA will be notified.

2.4.1.10 The selected Offeror shall issue, replace or re-issue an EPC when necessary.

2.4.1.10.1 Describe what constitutes a replacement EPC (e.g., lost, stolen or damaged EPC) and what constitutes a re-issued EPC (e.g., name change) and the policy and timeline for replacement and re-issuance of EPCs. At a minimum, one (1) replacement EPC and one (1) reissued EPC shall be provided by the selected Offeror at no cost to CSA or the cardholder for each 12-month benefit year period. Describe how additional replacement or reissued EPCs will be handled, defining parameters for replacement cards and any charges to the claimant.

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2.4.1.10.2 Describe the procedures for lost, stolen, or damaged EPCs, how soon a replacement card is issued and how funds will be provided to the cardholder whose EPC is lost, stolen or damaged.

Describe how your customer support package will include the capability for cardholders to report lost, stolen, or damaged EPCs; and describe this reporting process.

2.4.1.10.3 Describe the procedures for expediting a replacement or reissued EPC at the request of CSA.

2.4.1.11 Identify key personnel within the Offeror’s organization who shall respond to questions and inquiries concerning the operation of the EPC.

2.4.2 Use of EPC

2.4.2.1 Describe how the EPC will be accepted by any participating merchant, including Point of Sale (“POS”).

2.4.2.2 Describe how the EPC will allow for PIN-based and signature-based purchases.

2.4.2.3 Describe how the EPC will be compatible with the operating ATM network and allow for withdrawal of cash through a normal ATM transaction.

2.4.2.4 Describe the ATM network(s) and how it will be accessible to the cardholder, how the technology used will be currently active and available and indicate which of these networks will provide free services.

2.4.2.5 Describe how ATM access will be offered. Individuals who receive child support payments from Maryland may reside either in State or out of State, with some potentially living out of the country.

2.4.2.6 Provide a schematic of ATMs and direct teller sites located in Maryland, and nationally; a schematic with locations of all ATMs where free services are available; and, outside the State, a method to locate an ATM or branch location via a toll-free customer service telephone service and a web site.

2.4.2.7 Describe all limitations placed on the cardholder, such as amounts available to withdraw daily and number of transactions permitted daily and how such limitations are determined.

2.4.2.8 Describe any transactions that will be disallowed, including transactions that cause the cardholder to exceed the amount available in the account and how the cardholder will be notified.

2.4.2.9 Describe how you will prevent overdrafts from transactions that are verified.

2.4.2.10 Describe any liability to cardholders, for any transaction or other associated costs that cause the cardholder to exceed the amount available in his/her account. CSA will not have any responsibility or obligation for such overdrafts, nor for any other costs or liabilities incurred by the Offeror due to the actions of a cardholder.

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2.4.2.11 Describe policies regarding asset freezing, including how you handle any holds that may be placed on cardholder accounts.

2.4.2.12 Describe the process for cardholders to “cash-out” their EPC account balance.

For example, describe how cardholders can withdraw amounts under the ATM minimum withdrawal amount, or the retailer minimum, or for amounts less than one (1) dollar.

2.4.2.13 Describe how you will detect, and communicate to the cardholder, potential fraudulent payments because of multiple EPC transactions by individual cardholders in a specific geographical area.

2.4.2.14 Describe any liability to cardholders, for any reason including, fraud, unauthorized use of EPCs or EPC accounts, stolen EPCs, lost EPCs, or EPCs that are damaged or no longer work (for example, demagnetized), etc.

2.4.2.15 The EPC shall have no line of credit. Authorized deposits by CSA and merchants making refunds for EPC purchases will be allowed. Neither the cardholder nor any other entities shall be able to make deposits or add value to the EPC.

2.4.3 Account Activation

2.4.3.1 Describe the data required from a cardholder to activate his/her EPC and the timeframe required for activation.

2.4.3.2 Describe how the cardholder will be able to choose or change his/her PIN under the following circumstances:

2.4.3.2.1 After initial EPC issuance;

2.4.3.2.2 When an EPC is lost or stolen;

2.4.3.2.3 If a cardholder forgets his PIN;

2.4.3.2.4 If the PIN is compromised; and

2.4.3.2.5 In addition, explain alternative methods of PIN selection, if available.

2.4.3.3 Describe how payments will be made immediately available to the cardholder upon EPC activation by the cardholder.

2.4.3.4 Describe how accounts will be deactivated following notification by CSA.

Describe circumstances under which you would otherwise want to deactivate an account. The selected Offeror and CSA will jointly agree upon processes and procedures for deactivating and reactivating accounts.

2.4.3.5 On a monthly basis the bank will provide CSA with the name, address, and social security number of any customer whose electronic payment card has not been activated after 45 days.

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2.4.4 Customer Service

2.4.4.1 Describe the customer communications and marketing information plan and the associated timelines for the EPC. All marketing and instructional materials must be, at a minimum, in English and Spanish. Describe specific information about cardholder services and costs/fees that will be provided. Proposed marketing and instructional materials and samples from previous clients should be included. CSA reserves the right to review and approve all marketing and instructional materials.

2.4.4.2 Describe training and instructional materials for CSA staff on the use of the system. Samples of such material should be included. CSA will have the right to review and approve all materials and approaches.

2.4.4.3 Offerors must include samples of all web pages, statements, dispute forms, and any other forms related to the EPC process in its proposal response.

2.4.4.4 Describe how CSA and subsequently cardholders will be immediately notified of changes in policy that affect them or their accounts.

2.4.4.5 Describe how calls will be monitored to ensure quality customer service and to address customer complaints. Describe how customer complaints are logged, categorized, resolved, and the timeframes associated with these processes. List the types of issues anticipated and explain how they will be resolved. Include information and reports that you will provide to CSA to enable CSA to monitor customer service and customer complaint resolution.

2.4.4.6 Describe how you will respond to cardholder inquiries regarding EPC transactions within Offeror’s stated timeframes.

2.4.4.7 Describe when Customer Service Representatives (“CSR”) are available as opposed to Interactive Voice Response (“IVR”) technology. Include any alternative methods of accessing account information in your proposal.

2.4.4.8 Describe procedures for determining the identity of a caller prior to providing any account information.

2.4.4.9 Describe how you will provide CSA’s customer service staff with a toll-free direct telephone line to transfer a cardholder to a CSR.

2.4.4.10 Describe how your customer support package will include TTY and communications relay capability as described in the Americans with Disabilities Act.

2.4.4.11 Describe how cardholders who are unable to enter the EPC number through the IVR will default to a CSR.

2.4.4.12 Describe how a secure Internet-based management tool will be provided to allow cardholders to view financial transaction detail posted to their account.

Specify the website and describe how it will work.

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2.4.4.13 Describe how a link to CSA’s website will be provided from the pages that display account details.

2.4.4.14 Describe how CSA messages are delivered in both English and Spanish to cardholders through your secure web site, IVR system, and CSRs. Describe how customer support in English and Spanish will be provided. Describe how customer service is provided to other non-English and non-Spanish speakers.

2.4.4.15 Describe the customer process for completing an account inquiry, including various options such as IVR, ATM, customer support, online, etc.

2.4.4.16 Describe your procedures to resolve account discrepancies.

2.4.4.17 Describe how you will provide a monthly statement for each cardholder.

Offerors shall supply a sample statement in the proposal response.

2.4.4.18 Describe how cardholder address changes can be managed with CSA being the custodian of the address records.

2.4.4.19 Describe how returned mail is handled and how it will be reported to CSA.

2.4.4.20 Describe services available to cardholders living outside of the United States.

Describe how call centers and operating/processing facilities will be accessible for visits from CSA staff.

2.4.5 Data Management

2.4.5.1 Describe how the required information and file format(s) will be provided for transmitting account setup, including errors or problems with data to and from CSA. Describe the child support client or CSA data required to establish an EPC account (e.g., name, address, phone number, date of birth, and unique identification for Child Support Client) and propose a process for sharing this information with CSA.

2.4.5.2 Describe your procedure for using an industry standard electronically secure data connection to allow CSA to transmit and receive account information on a daily basis.

2.4.5.3 Describe your ability to accept and process daily payment data from CSA.

CSA shall submit transactions to the selected Offeror according to NACHA approved format. The daily data includes:

a. A new account file containing information necessary to set up new accounts and issue EPCs;

b. A maintenance file containing name changes, address changes, etc. to update account information;

c. A payment file containing deposits and other required identifying information; and

d. Confirmation via e-mail that the file has been received. CSA shall be notified by noon the next business day if the previous night’s file has not been received.

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2.4.5.4 Describe the number of hours/calendar days subsequent to receiving new account data from CSA that you require to:

a. Establish an account for each child support client record in the file;

b. Provide CSA with required identifying information necessary for CSA to begin making payments; and

c. Mail EPC to each child support recipient by first class mail.

2.4.5.5 Describe the number of hours subsequent to receiving data from CSA that you require to process payments to the cardholder’s account so that funds are available to the cardholder. Include the number of hours/days for periods involving weekends and holidays.

2.4.5.6 Describe how on a daily basis CSA shall receive from the selected Offeror a file or report containing:

a. New account numbers;

b. Reissued account numbers;

c. All other information necessary for CSA to properly make payments;

and

d. An error file containing payment records that could not be processed, along with a description of the error.

2.4.5.7 Describe your reconciliation process, including a reporting timeline, for money received from CSA versus money disbursed to cardholders, including audit trail(s) for each transaction throughout the process.

2.4.5.8 Describe how you will accept reversals from CSA for any credit entries made in error to a cardholder account consistent with NACHA regulations.

2.4.5.9 Describe your data archiving and retrieval procedures. The selected Offeror shall be required to retain records, including but not limited to, financial records, supporting documents, statistical records, any other records, papers, logs, audit trails or books related to this RFP and any resulting contract for a period of seven (7) years after the expiration of the Contract, or until CSA or interested government agencies are satisfied that all audit and litigation matters are resolved, whichever period is longer. The selected Offeror may be requested to produce records or provide testimony as a keeper of record pursuant to a valid subpoena or court order. The selected Offeror shall immediately notify DHS’s Attorney General’s Office of any subpoena or court order directing the release of information and shall consult with CSA prior to releasing such information.

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2.4.6 Disaster Recovery/Business Continuation

2.4.6.1 A major disaster is defined as a loss of the facility or business processing due to a catastrophic event, which causes vital business processes to stop for an extended period of time (more than 24 hours). This includes:

a. An event resulting in the inability to meet important customer commitments and contractual obligations or to protect the interests of CSA and the Offeror and its employees.

b. The loss of system/service and/or degradation due to, but not limited to the following catastrophic events:

(1) Power outage

(2) Server crash

(3) Server failure

(4) Router failure

(5) Cable failure

(6) Power surge

(7) E-mail failure

(8) Internet failure

(9) Virtual private network (VPN) failure, and/or

(10) Computer virus

Describe, in sufficient detail, your disaster recovery plan and continuation of business plan.

2.4.6.2 Describe how CSA will be notified of any situation which could reasonably be expected to adversely affect the payment processing operation. This includes any failure of depositing funds into cardholders’ accounts and the cardholders’ ability to use funds in the accounts.

2.4.6.3 Describe how your procedure manuals are maintained during a disaster.

Include how your procedures are available in an automated format.

2.4.6.4 Describe how, in the event of a major disaster, CSA will be ensured that the following occurs:

a. Quick recovery of critical systems. Telephone and fax lines are available for customer use within 24 hours, and all business functions are returned to full service within five (5) business days;

b. Transfer of business functions to an alternate site. Potential alternate facilities (hot-site) must be identified in advance. The chosen alternate facility is identified at the time a disaster is declared. The hot-site location choice is based upon the scope and impact of the disaster; and

c. Effective communication efforts during disaster recovery. All CSA contacts, members of each of the disaster recovery plan teams, all call center site employees, and other appropriate staff must be kept up-to-date during the recovery. You must provide information about (1) how to contact your staff during the recovery, (2) when services will be reestablished, and (3) any decision to locate to alternate facilities. CSA

RFP for Maryland State Treasurer’s Office on behalf of DHS/CSA Page 12 of 86 feels strongly that communication with staff, customers, and CSA contacts is crucial to the actual and perceived success of the recovery efforts.

See Section 3.4 for further information on disaster recovery and data.

2.4.7 Query and Reporting

The selected Offeror must provide CSA with detailed reporting to the extent permissible under Regulation E issued by the Board of Governors of Federal Reserve. Describe the regular reports you propose and provide samples. The reports must be available in summary and detail. Reports must be delivered to CSA electronically in a format approved by CSA, through a secure Internet connection. Reports should be delivered monthly, no later than five (5) business days after the last day of the preceding month, for the preceding month’s activities, unless otherwise stated by CSA. The reports should include the following information:

2.4.7.1 Fraud control activity/risk analysis (daily reports):

a. Number of PIN changes;

b. Number of reports of stolen/lost EPCs;

c. Dollar amount stolen/lost;

d. Number of reports of fraudulent activity;

e. Dollar amount defrauded;

f. Geographical location of fraudulent activity;

g. Detailed listing of customers who have reported stolen/lost EPCs and/or fraudulent activity and the resolution of each;

h. Data to measure timeliness between the date of a reported stolen/lost EPC or other fraudulent activity and the date the reported issue is resolved;

i. Number of accounts deactivated due to fraud;

j. Number of reissued EPCs and reasons for re-issuance; and

k. Detailed listing of confidentiality and security breaches including steps taken to contain the breach, follow-up reports, and a corrective action plan.

2.4.7.2 Detailed listing of any and all business disruptions of four (4) hours or longer.

2.4.7.3 Financial activity (monthly reports, broken down by day):

a. Amount of funds disbursed to cardholders sorted by amount of time from receipt of all necessary payment information from CSA;

b. ATM withdrawals;

c. PIN vs. signature-based merchant transactions;

d. Number of free cardholder transactions; and

e. Count and amounts of deposits made to cardholder accounts.

f. Amount of funds remaining in all cardholder accounts by length of account inactivity; and

g. Number of payment records that had errors.

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2.4.7.4 EPC/Cardholder activity:

a. Number of accounts established by amount of time from receipt of all necessary account information from CSA;

b. Number of EPCs mailed via first class mail by amount of time from receipt of all necessary account information from CSA;

c. Number of EPCs issued;

d. Number of EPCs activated;

e. Amount of time from EPC issuance to activation;

f. Active accounts;

g. Inactive accounts;

h. Closed accounts;

i. Frozen accounts; and

j. Cancelled accounts.

2.4.7.5 Separate Customer Service activity for Interactive Voice Response (“IVR”) and Customer Service Response (“CSR”):

a. Number of calls attempted (IVR, CSA transfer if available, outside if available);

b. Number of calls getting a busy signal;

c. Number of calls accepted in queue;

d. Number of calls in queue abandoned by wait time;

e. Number of calls answered by wait time;

f. Average wait time;

g. Number of calls answered by type of call;

h. Number of calls answered by IVR/CSR with breakout of languages served;

i. Number of calls answered by talk time (connect time less time in queue);

j. Average talk time;

k. Time and duration of all IVR/CSR service interruptions, both scheduled and unscheduled reported separately; and

l. Number of calls answered and transferred to CSA.

2.4.7.6 Customer Service activity - Internet (CSA related):

a. Number of Web site hits;

b. Number of cardholder account inquiries;

c. Number of cardholder account updates (e.g., PIN changes); and

d. Time and duration of all web site service interruptions, both scheduled and unscheduled reported separately.

2.4.7.7 Customer Service activity - General:

a. Number of account protests by type of protest; and

b. Detailed listing of complaints by customers with difficulty accessing services due to low English proficiency, including the steps taken by selected Offeror to enable service.

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2.4.7.8 Describe how you will maintain all activity for an individual cardholder’s data and make it available to CSA upon request.

2.4.7.9 Describe the POS process, including data capture capabilities and how much information can be input and received from the POS. Include all reporting options available to CSA.

2.4.8 Confidentiality/Security

All Child Support client information and account information created as a result of any contract that results from this RFP must remain confidential and may not be sold or otherwise shared with any other entity not associated with the Contract or for any purpose other than the execution of the Contract, unless required by law. In addition, the selected Offeror may not use child support client information or account information to solicit other business and must ensure that the child support client information and account information is protected and kept confidential. Offerors must describe in detail all procedures for safeguarding confidential cardholder information and cardholder account information below.

The Offeror shall maintain confidentiality of information made available by CSA pursuant to the Contract. Information furnished to the Offeror by the State or any of its constituent agencies in the performance of the Contract shall not be disclosed by the Offeror or any of its agents to any other person or concern outside the STO and CSA without the written consent of the STO and/or CSA and shall be utilized solely for purposes consistent with Offeror's responsibilities under the Contract.

2.4.8.1 Describe your processes and procedures used to ensure the confidentiality of child support client information and their account information, including but not limited to the following measures:

a. Describe how access to data regarding child support client information and their accounts will be restricted to those individuals whose access is essential to the administration of the program;

b. Describe how individuals with access to child support client information or their accounts will be under the direction and control of the selected Offeror;

c. Describe how you will monitor the use of the data by individuals with access to child support client information or their accounts to insure that such information is being used only for purposes consistent with the administration of this program;

d. Describe how you will keep all information regarding child support clients and their accounts secured in a manner which will ensure its confidentiality; and

e. Describe how you will develop and require anyone with access to data regarding child support client information or their accounts to use security procedures to keep the data confidential and to limit its access to those authorized to access such information.

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2.4.8.2 Describe the security features associated with the EPC for activation, counterfeit prevention and fraud prevention.

2.4.8.3 Describe your procedures for preventing identity theft and responding to fraudulent activities.

2.4.8.4 Describe your internal controls to help monitor, detect, record or log, prevent and minimize unauthorized physical and information technology activity.

2.4.8.5 Describe your procedures to resolve (prosecute) fraud, how and when you will notify CSA, and what information you will provide.

2.4.8.6 Describe how quickly and the manner by which CSA and the Child Support clients will be notified of any data breaches that might expose individual account information.

2.4.8.7 Describe the assistance child support clients will be provided in the event their individual account information is compromised.

2.4.8.8 Describe how physical (including electronic) records are destroyed, and what logging and reporting of the record destruction activity is provided to CSA. See Section 2.4.5.9, for data archiving and retrieval procedures.

2.4.8.9 Describe how you will ensure that any subcontractors will be bound by the same confidentiality requirements as the Offeror.

2.4.9 Minimum Performance Standards

The Contractor shall ensure that all aspects of the CSA systems meet or exceed the performance requirements herein. For any performance deficiency identified by the State, the Contractor shall take corrective action as directed by the State.

2.4.9.1 Account Set-up - 95 percent of cardholder accounts must be established within four days of receiving all necessary cardholder account information.

2.4.9.2 EPC Issuance - 95 percent of EPCs must be mailed by first class mail to individuals identified to receive EPCs within four (4) days of receiving all necessary cardholder account information.

2.4.9.3 Payments - 95 percent of all electronic payment card payments must be deposited in established cardholder accounts and be available to the cardholder within one (1) hour of receiving CSA’s telephone validation for the payment file.

2.4.10 Customer Service:

2.4.10.1 IVR system and Web site must be operational at least 98 percent of the scheduled seven (7) days a week, 24 hours per day service, except for normal maintenance.

2.4.10.2 Customer service representatives must be available at least 95 percent of the scheduled seven (7) days a week, ten (10) hours per day service, with an

RFP for Maryland State Treasurer’s Office on behalf of DHS/CSA Page 16 of 86 average wait time of five (5) minutes or less. The selected Offeror must provide “down time” reports.

Failure to meet the performance standards for a period of one (1) month, the CSA may invoke a corrective process which includes a written warning to the Contractor and the submission to CSA of a written corrective action plan (CAP) within 15 days of the performance measurement period. The CAP must include a schedule by which the deficiency will be corrected and be approved by the State. If within two (2) months of initial failure the Contractor cannot demonstrate improved performance, a second CAP shall be required and the Contractor shall report on a daily basis to CSA the reasons that the standard is not being met and what is being done to correct the performance.

CSA’s forbearance from taking action in response to one or more instances where the Contractor fails to meet minimum performance standards shall not constitute a waiver of its rights with respect to any subsequent failure by the Contractor to meet performance standards.

2.5 Transition

The Contractor shall work with the incumbent bank, CSA, Office of Technology for Human Services (“OTHS”) management consulting contractor, and the State’s Disbursement Unit’s Contractor to ensure a smooth transition of operations. Both the new contractor and the incumbent bank will work professionally with each other as well as with the CSA Project Manager to ensure that all status reports of transition activities are accurate and forthright.

2.5.1.1 Kick-Off Meeting

Within ten days of the start of the Contract, the State Project Manager, Procurement Officer, the Contractor, the Contractor’s Project Manager and any other CSA or Contractor personnel deemed appropriate, shall attend a Kick-off meeting led by the State in Baltimore. The objectives of the meeting are to:

a) Introduce the State representatives and establish the working relationship between the Contractor and the State;

b) Provide the State the opportunity to familiarize the Contractor with CSA, OTHS

Child Support Enforcement System CSES’s processes and reports;

c) Provide Contractor with all the information and materials relevant to the project;

d) Communicate timelines and known requirements relative to the transition plans;

e) Discuss service delivery, invoice processing, monitoring; and

f) Other Contract terms and conditions.

2.5.1.2 Transition-In Project Plan

Within fifteen (15) calendar days of the Contract start date, the Contractor shall submit a draft project work plan to the State outlining an approach to the transition activities. The transition work plan shall be written in Microsoft Project 2007 or compatible version. Within thirty (30) calendar days of the Contract start date, the final transition project work plan shall be submitted to CSA Project Manager. The Plan shall include:

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• A specific approach and schedule to transition from the current activities to their own, and clearly identify the tasks and level of effort;

• A clear breakdown of tasks and responsibilities, including those tasks that will be the responsibility of CSA during the transition;

• Detail how development work and knowledge transfer activities will be accomplished as well as a similar strategy for testing; and

• Include a validation effort with the OTHS management-consulting contractor to demonstrate the Offeror’s capability to deliver reliable service.

2.5.1.2.1 The Transition In Plan shall specifically address in detail:

a) Milestones and key deliverable dates;

b) The key transition personnel and their respective role;

c) The reporting mechanism for providing, at a minimum, bi-weekly reports during the transition;

d) Transition methodology;

e) Any experience and concerns considered important and relevant from prior transitions and/or implementations of similar size and scope;

f) The required involvement of the incumbent contractor, CSA Project Manager and staff, DHSIS development and operations staff, STO, other State resources, and any third-party involvement subcontracted by the Contractor required during the transition;

g) Risk assessment and mitigation recommendations/solutions;

h) A clear set of tasks, objectives, outcomes, and timeframes to transition work activities, processes, people, services, knowledge and documentation associated with the exit of CSA’s current banking team and the entrance of the new proposed banking team;

i) Describe how Offeror will transition existing debit card customers to the Offeror’s new EPC product as of the date that the Offeror goes live;

j) No more than sixty (60) calendar days of the Contract start date, the Contractor shall submit a comprehensive Transition In Test Plan. The test plan shall include all aspects of the transition work that shall be tested by transition staff and measures of success to demonstrate achievement of knowledge transfer and successful transition. The plan shall also clearly delineate Contractor responsibilities, CSA, OTHS and STO responsibilities; and

k) Provide test files on all output files to include test files of paid items, ACH entries, adjusting entries to include debit and credit memos, stops, voids and cancellations, etc.

2.5.1.3 Meetings/Reports

During the transition period, the Contractor’s key personnel shall conduct formal bi-weekly status meetings with CSA, OTHS, STO and the incumbent bank.

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2.5.1.3.1 The new Contractor shall generate a status report as the basis for the status meeting. In the status report, the new Contractor shall address:

• Project schedule (current status of all tasks);

• Near term activities;

• Deliverables (submitted, due, overdue, approval status, and payment status);

•…