Due Diligence Tow Rates.pdf

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Due Diligence Posting of Notice of Intent to “Accept a Best Value Offer”

COMMBUYS Bid # BD-27-1042-ENV-ENV01-134318

Project # FY27DPU001

The Department of Public Utilities (“Department”) of the Commonwealth of Massachusetts announces its intent to Accept a Best Value Offer, pursuant to the Commonwealth’s Due Diligence Posting policy, to contract for the following with Borderland Partners, LLC (“Offeror”), pending the results of this Notice of Intent (“Notice”):

Description

I. Scope of Work

Offeror proposes conducting a targeted review of two revisions made by the Department to the rate formula to establish the maximum involuntary tow rate. The offeror previously prepared a report proposing a rate formula for the Department in 2024. The revisions center on:

(a) the management costs category included in the rate formula;

(b) an adjustment to the total to maximum involuntary tow rate based on revenue from vehicle storage, a calculation and figure that Offeror did not originally include.

The review will be guided by two core questions:

1. Can the revised figures be reproduced from the data, assumptions, and calculations provided?

2. To what extent are the revised assumptions and methods reasonable and adequately supported by the available evidence?

For purposes of the review, reasonableness will be assessed based on whether the revised assumptions and methods are logically supported, internally consistent, grounded in available data and documentation, and consistent with relevant external evidence where such evidence is available.

To address these questions, Offeror will:

• Review the revised assumptions, calculations, source data, and supporting documentation for each cost category.

• Reproduce the revised calculations to confirm that the resulting figures can be replicated from the information provided.

• Assess the rationale, assumptions, and methods underlying the revisions, including the extent to which they are supported by the available evidence.

• Examine relevant historical information, external benchmarks, and approaches used by peer states or comparable entities as corroborating evidence, where appropriate.

Revised: February 12, 2025

• Assess the magnitude and significance of the changes to the two cost categories and their effect on the overall estimate.

• Document findings, including the basis for conclusions and any areas where additional clarification, documentation, or support may be warranted.

II. Methods

The review will use focused quantitative and comparative methods informed by principles described in the U.S. Government Accountability Office’s Cost Estimating and Assessment Guide, including documentation and traceability of source data and calculations, replicability, and review of the inputs and methods supporting cost estimates.1

Methods will include:

• Review and reproduction of the Department calculations, including comparison with the underlying data and calculations used in the original estimates.

• Review and, where appropriate, reanalysis of the data sources and evidence of the Department relied upon in revising the estimates.

• Analysis of relevant Bureau of Labor Statistics data and other applicable state or public data sources supporting salary and benefit assumptions.

• Review of involuntary towing and storage studies, rate-setting practices, and available cost information from other states where they provide relevant context for the assumptions under review.

• Two methods-related discussions with the Department: an initial discussion to understand the basis for the revisions and the data considered, and a subsequent discussion to clarify questions arising from the analysis.

Findings will be considered collectively to assess whether the revised calculations are reproducible and the extent to which the underlying assumptions and methods are reasonable and supported by the available evidence. The review will identify any material limitations in the available evidence that affect the assessment.

III. Deliverables

Offeror will provide:

• A written interim review of the two Department revisions, summarizing our understanding of each change, the data and methods used, preliminary calculation checks, and any questions requiring clarification.

• A written draft findings memorandum presenting the analysis and findings for each of the two revisions.

• A final findings memorandum incorporating factual clarifications and finalizing the assessment. For each of the two revisions, the findings memorandum will address the following questions:

1. Can the revised figure be reproduced?

2. To what extent are the underlying assumptions and methods reasonable?

3. To what extent are the revision and its underlying assumptions supported by the available evidence?

4. What is the effect of the revision on the involuntary towing rate estimate?

Where appropriate, findings regarding reasonableness and support will distinguish among revisions that are supported by the available evidence, supported with limitations, or for which the available evidence is insufficient to reach a determination.

IV. Timeline

The review will be completed over approximately seven weeks, following contract execution.

• Week 1 – Project initiation and data collection: Conduct a kickoff discussion with the Department; confirm the basis for the two revisions; and obtain the calculations, source data, and supporting materials used in developing the revised estimates.

• Weeks 2–4 – Analytical and comparative review: Review and reproduce the revised calculations; review the basis for the underlying assumptions and methods and test them against the available evidence; examine relevant wage, benefit, storage, and other cost data from appropriate public sources; review involuntary towing and storage practices and available cost information from other states; and consider relevant Massachusetts storage-related information where useful and available.

• Weeks 5–6 – Synthesis and findings: Complete any targeted reanalysis; compare findings across available evidence sources; assess the reproducibility, reasonableness, and support for each revision; evaluate the effect of each change on the involuntary towing rate estimate; and discuss emerging findings with the Department.

• Week 7 – Finalization: Prepare and finalize the findings memorandum, incorporating factual clarifications and presenting the final assessment of the two revisions.

Assumptions: The proposed schedule assumes timely access to the requested materials underlying the two Department revisions; availability of the Department for discussions; and one consolidated round of factual comments on the draft findings memorandum. Delays in access to information, provision of revised data, or availability of key personnel may result in corresponding adjustments to the project schedule. Offerors’ analysis will be based on the materials and evidence considered during the review period. Material revisions, replacement datasets, or significant new information submitted after the analytical review has commenced may require adjustments to the schedule and budget.

V. Budget

The total fixed fee for the scope of work described above is $20,000, inclusive of professional fees and overhead. The fixed fee includes up to four, one-hour meetings with the Department: a kickoff discussion, a discussion of emerging analytical questions, a discussion of Department feedback on the draft findings memorandum, and a final discussion of findings. Any work requested outside the agreed scope, including additional meetings, briefings, and/or requests for reanalysis, will require a written change order executed by both parties prior to commencement of the additional work. The proposed scope is focused on the analytical review and preparation of the findings memorandum and does not extend to formal testimony or participation in adjudicatory proceedings.

The Department is posting this Notice rather than conducting a full procurement because the Department believes this opportunity represents best value to the Commonwealth and is utilizing this Due Diligence Posting to ensure that the process is open, fair and competitive.

Determination of Other Interested Vendors The intent of this posting is to determine if there are any other interested and qualified vendors.

Any such vendors must submit documentation that they can provide the same level and quality of service.

Response Requirement and Deadline All Interested Vendors and Offerors interested in responding to this Notice, regardless of prior communications with the Department, must submit a Response to this posting containing evidence of their qualification and interest relevant experience in conducting similar programs. All required information must be submitted by 10:00AM (prevailing Eastern Time) on October 22, 2026 as follows:

If, after the posting deadline has passed, interest is generated by this Notice, the Department will review all Responses and will determine whether they will: (i) withdraw the notice and not accept the Offeror’s offer (and cancel the Notice of Intent) or (ii) accept the offer from the Offeror or (iii) accept an offer from another vendor offering a comparable or better value than the Offeror in their Response or (iv) accept the offer from the Offeror and from any other offerors offering similar value in their response.]

Additional Terms Required for Doing Business with the Commonwealth

Names of Standard Forms Instructions

Instructions for Vendors Responding to Bids Electronically

Read and agree prior to submitting a Response.

RFR - Required Specifications Read and agree prior to submitting a Response.

Prompt Payment Discount Form Complete electronically and submit as an attachment to Quote.

Commonwealth Terms & Conditions Read and agree. Sign and submit original with wet signature upon Award, if any.

Contractor Authorized Signatory Listing Read and agree. Sign and submit original with wet signature upon Award, if any.

Request for Taxpayer Identification Number and Certification (W-9)

Read and agree. Sign and submit original with wet signature upon Award, if any.

Standard Contract Form and Instructions Read and agree. Sign and submit original with wet signature upon Award, if any.

Authorization for Electronic Funds Transfer

(ETF)

*Note: Vendors should acquire this form directly from purchasing departments when awarded.

Quote Submission Method Online Quote Submission via COMMBUYS is required. All Interested Vendors and Offerors must submit Quotes online using tools available only to Sellers registered in COMMBUYS.

COMMBUYS provides Seller registration functionality at no charge. To register, go to www.COMMBUYS.com and click on the “Register” link on the front page. All Interested Vendors and Offerors who are awarded a contract resulting from this Notice, if any, will be required to maintain an active account during the duration of the Contract, by reviewing their registration information regularly and maintaining its accuracy.

COMMBUYS Quote Submission Training and Instructions The following resources are provided to assist Interested Vendors and Offerors in submitting Quotes:

• An online job aid on How to Create a Quote;

• Webcast video on How to Find Bids (Solicitations) and Submit Quotes (Responses) through COMMBUYS;

• Instructor-led trainings (ILT) and live webinar sessions on “How to Locate and

Respond to Bids” may also be available. Check the OSD Training Courses schedule for Sellers/Business Entities for available locations, dates and times. Note that space is limited and pre-registration for trainings is required to attend. Follow instructions on the course schedule to register.

COMMBUYS Support Technical assistance is available during the procurement process. Every effort is made to respond to inquiries within one business day.

• Website: Go to www.mass.gov/osd/commbuys and select the COMMBUYS Resource Center link offered under Key Resources.

• Email: Send inquiries to the COMMBUYS Helpdesk at COMMBUYS@state.ma.us https://www.mass.gov/doc/instructions-for-vendors-responding-to-bids/download https://www.mass.gov/doc/instructions-for-vendors-responding-to-bids/download https://www.mass.gov/doc/rfr-required-specifications-for-commodities-and-services/download https://www.mass.gov/doc/prompt-payment-discount-form/download https://www.mass.gov/doc/exhibit-f-1-commonwealth-terms-and-conditions-0/download https://www.mass.gov/doc/fy2022-contractor-authorized-signatory-form/download https://www.mass.gov/doc/form-w-9-request-for-taxpayer-identification-number-certification/download https://www.mass.gov/doc/form-w-9-request-for-taxpayer-identification-number-certification/download https://www.macomptroller.org/wp-content/uploads/instructions_standard-contract-form.pdf http://www.commbuys.com/ https://www.mass.gov/doc/how-to-create-a-quote-in-commbuys/download https://app.screencast.com/g2ZDQhqpyr4M4 https://app.screencast.com/g2ZDQhqpyr4M4 https://www.mass.gov/osd-buyer-training http://www.mass.gov/osd/commbuys mailto:COMMBUYS@state.ma.us

• Telephone: Call the COMMBUYS Help Desk at 1-888-MA-STATE (1-888-627- 8283). The Help Desk is staffed from 8:00 AM to 5:00 PM Monday through Friday Eastern Standard or Daylight time, as applicable, except on federal and state holidays.

Interested Vendors and Offerors are advised that COMMBUYS will be unavailable during regularly scheduled maintenance hours of which all users will be notified.