Employee_Loan_Services_(Addendum_#1_Revision).pdf

CITY OF TUCSON

REQUEST FOR PROPOSAL

240027

EMPLOYEE LOAN SERVICES

Due Date: Thursday, April 11, 2024

City of Tucson

255 W Alameda St

Tucson, AZ 85701

Procurement portal https://secure.procurenow.com/portal/tucson-az

Public Portal https://secure.procurenow.com/portal/tucson-az/projects/68365

PUBLISH DATE: March 14, 2024 https://secure.procurenow.com/portal/%7Bproject.government.code%7D https://secure.procurenow.com/portal/%7Bproject.government.code%7D/projects/%7Bproject.id%7D https://secure.procurenow.com/portal/%7Bproject.government.code%7D/projects/%7Bproject.id%7D

CITY OF TUCSON REQUEST FOR PROPOSAL NO. 240027

BUSINESS SERVICES DEPARTMENT Page 2 of 40 SHARED SERVICES PROCUREMENT DIVISION RESPONSIBLE CONTRACT OFFICER: Rolf Averill

255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PH: (520) 837-4193

Attachments:

A - OFFER_AND_ACCEPTANCE_RFP

G - Employee Loan Services Price Page

BUSINESS SERVICES DEPARTMENT Page 3 of 40

A. NOTICE

A.1. CITY OF TUCSON

NOTICE OF REQUEST FOR PROPOSAL NO 240027

TITLE: Employee Loan Services

SUBMITTAL DUE DATE: Thursday, April 11, 2024 AT 2:00 P.M. LOCAL AZ TIME

PRE-SUBMITTAL CONFERENCE DATE: Thursday, March 21, 2024

TIME: 1:00 pm LOCAL AZ TIME

LOCATION: https://teams.microsoft.com/l/meetup-join/19%3ameeting_MmQzZDUwNTEtY2JiNi00NDM0LWE4NTctNzAwZjE5YzA1YmYy%40thread.v2/ 0?context=%7b%22Tid%22%3a%22d21e59ec-c208-43eb-aaf1-cf06d9a196e0%22%2c%22Oid%22%3a%2271798299-0efc-4d5f-9d2c-304d671d4a14%22%7d Meeting ID: 254 028 291 314 Passcode: BX6utE

QUESTIONS SHALL BE DIRECTED TO: Rolf Averill

(520) 837-4193 rolf.averill@tucsonaz.gov

Posted Date: Thursday, March 14, 2024

Competitive sealed offers for the material or service specified in this solicitation must be submitted through the City’s online bidding system. No late submitted offer will be accepted or considered.

Reponses submitted in physical form or by facsimile or email will not be considered. Offerors are cautioned to commence the submittal process sufficiently ahead of time to allow for unanticipated delays resulting from things like a slow internet connection, internet outage, difficulty uploading large documents, differing system requirements, etc.

Questions about this solicitation must be addressed to the responsible Contract Officer listed herein.

BUSINESS SERVICES DEPARTMENT Page 4 of 40

B. INTRODUCTION

B.1. Summary

The City of Tucson is seeking a provider that will offer a small-loans program as a voluntary benefit for City of Tucson employees per specifications called for herein.

B.2. Contact Information

Rolf Averill Contract Officer Email: rolf.averill@tucsonaz.gov Phone: (520) 837-4193 Department:

Human Resources mailto:rolf.averill@tucsonaz.gov tel:(520)837-4193

BUSINESS SERVICES DEPARTMENT Page 5 of 40

C. SCOPE OF WORK

C.1. Requirements and Conditions for the Collateral-Free Loan Program

The Contractor Shall:

1. Offer a collateral-free loan program as a voluntary benefit for all City of Tucson benefit eligible employees. The program shall have a streamlined application process with underwriting and funding completed within 48 hours of application submittal. Loans shall be offered to employees with or without the use of a credit inquiry/check.

2. Offer competitive market interest rate for all available loan amounts available to employees.

3. Clarify a minimum and maximum interest loan rate based upon the market.

4. Provide a file (CSV or Excel) to the City of Tucson each pay period noting the payroll deduction amounts for each employee (borrower) that is approved for a loan by the Contractor to include but not limited to: Employee Name, City of Tucson Employee Identification number, last 4 of the social security number for the Employee, Effective date of the loan and date of the first payment, how many payments shall be conducted through payroll deduction, and the amount to be deducted.

5. Provide a secure interface through the program website for the City of Tucson to transmit employee data.

6. Provide City of Tucson staff with necessary training to effectively administer payroll deductions on behalf of enrolled employees and to remit payments back to the Contractor.

7. Make available loans through an FDIC insured bank, NCUA insured credit union, or a U.S.

Treasury certified Community Development Financial Institution.

8. Provide the option of an online or an in-person application process.

9. Notify the City of Tucson within 24 hours if/when a loan is paid off early. If overpayment is received from payroll deduction, Contractor shall be responsible for refunding employee any overpayment amount.

10. Charge no additional administrative fees.

11. Schedule loan repayments to begin no sooner than 30 days after employee has received funds from the loan to allow proper time for payroll deduction to begin.

12. Understand that the City of Tucson is a facilitator of this program and not a participant; i.e. Any financial arrangement that may arise as a result of this contract will ultimately be between the individual employee and the Contractor. The City shall be absolved of any financial repayment obligation.

13. Provide an account manager to be the City of Tucson’s point-of-contact as well as identify a back-up in case of absence or emergencies.

14. Market the program to employees by covering all advertising costs, including but not limited to:

printed materials, flyers, mailers, online, email, etc. However, all marketing communications

BUSINESS SERVICES DEPARTMENT Page 6 of 40

(i.e. communications intended to increase awareness or participation that do not involve an established loan), must be pre-approved and authorized by City of Tucson.

15. Be fully responsible for collecting funds directly from the applicant in the case of employee separation, or if the employee does not have sufficient net pay funds to cover the loan payment amount.

16. Reconcile expected payments vs. actual payments and provide the City a copy of such report. Contractor shall update the file to reflect any changes in payment amounts.

17. Be responsible for paying any subcontractors that are used.

18. Not share, market, or re-sell City of Tucson employee personal information.

19. Identify which services and processes will be provided by any potential subcontractors.

20. Assume any liability created by any subcontractor used on this contract.

21. Provide physical location information for any and all subcontractors used on this contract, as well as detail regarding what services the subcontractor supplies.

22. Ensure that through this loan program, employees do not take on a debt burden that exceeds 20 percent of the employee’s annual net pay.

C.2. Obligations and Responsibilities of the City of Tucson

The City of Tucson shall:

1. Provide employment and eligibility information (employee first and last name, employee I.D.

number, home department code, and employee home zip code) to the Contractor.

2. Provide automatic bi- weekly payroll deductions for loan repayment.

3. Provide a payroll calendar for Contractor to use to determine payroll deduction dates.

4. Provide the Contractor with information such as changes to normal pay dates, terminations of employees with an outstanding loan(s), revocations of payroll deductions, limited census file as described above or any other information pertinent to the Program.

5. The City will remit timely loan payments to the Contractor based on the agreed upon repayment schedule.

C.3. Security and Operations Requirement

The City of Tucson shall:

Reports: Contractor must provide quarterly statistical reports to the City of Tucson on number of loans made per year, total amount loaned per year, repayment rate, default rate, average interest rate, number of loans per interest rate range as well as aggregate demographic data of participants such as gender, count per salary range, department, etc.

Customer Survey: Contractor must work with the City of Tucson to develop and administer customer surveys to gauge satisfaction with the program and the impact the loan program is having on employees’ lives.

BUSINESS SERVICES DEPARTMENT Page 7 of 40

Security Requirements: Contractor shall establish and maintain security for the City’s data and the system as well as access that includes the following requirements:

A. Physical Security: Contractor offices shall only be accessible to authorized personnel.

Employees access the premises using key cards that log access. Visitors must be admitted and escorted by an employee. If applicable, clarify that Contractor’s data center is cloud based and Contractor’s employees do not have physical access to it.

B. Network Security: Contractor’s servers shall be fire-walled from the internet at large. Inbound access to the Contractor environment will be controlled using a series of firewalls, switches, and application layer controls. Logs shall be kept of access and regularly monitored to detect unauthorized attempts.

1. By default, all inbound network access is blocked. The traffic that has been deemed necessary is explicitly permitted inbound as outlined in this section. Firewall/Access Control List and/or Rules shall be reviewed at least annually.

2. Inbound access from the Internet to the Contractor network will only be permitted based on the following rules:

a. Access to the Web Application Servers is permitted on specific ports; all other ports are blocked. This network-layer port filtering occurs on both the external firewalls and the internal “DMZ” switches.

b. Access to the communications cluster is permitted based on strict access-list controls using passwords and multi-factor authentication where applicable.

c. Optimally, City Of Tucson Personnel can enable “Advanced Security”, which forces users to originate from a pre-defined IP address in order to access the Contractor application to exchange files with the Contractor.

C. Hardware Security: City Of Tucson Data shall be stored in environments consistent with data redundancy and data protection standards necessary for recovery and maintenance. Contractor shall provide for regular backup of City Of Tucson Data to an off-site storage of said backup data. A business continuity and disaster recovery plan shall be implemented and tested at least twice a year.

1. System Application Security: Contractor’s System shall maintain limited accessibility with all user access and control managed through password security that is under the control of the Contractor. Complete control is in the hands of authorized Contractor’s designated administrative user(s). Contractor shall determine what access a user is allowed to have and whether any restrictions will be put in place for a given user.

2. Security Audits: Contractor’s data center shall be SOC compliant. Contractor shall provide City Of Tucson Personnel the capability for using strong passwords to access its server but it will be the responsibility of the City Of Tucson to verify that only strong passwords are implemented and that they are changed at a City Of Tucson accepted frequency.

3. No Commingled Data: City of Tucson acknowledges that the City’s Data may reside on shared Servers, provided, however, that the City’s Data and other information stored on the Servers shall not be commingled with the data of any other customer of Contractor.

Contractor shall ensure that the City’s Data and systems are not accessible to unauthorized

BUSINESS SERVICES DEPARTMENT Page 8 of 40 third parties and shall immediately report any breaches of security regarding the City’s Data to the City of Tucson.

4. Security Breach Notification: Contractor agrees to notify the City as soon as it becomes aware of any actual unintended access of any system that may access, process, or store data, files, Work Product, Confidential Information or Personal Data produced under, provided under or related to this contract or any SOW subject to this contract. Unintended access includes, but is not limited to, compromise by a computer worm, search engine web crawler, password compromise or access by an unauthorized individual or automated program. Contractor agrees to notify the City within twenty-four (24) hours of the discovery of the actual or suspected unintended access.

D. Passwords: Passwords/passphrases must meet the following:

• Require a minimum length of at least eight characters.

• Contain both numeric and alphabetic characters (both upper and lower case) as well a special characters. Alternatively, the passwords/ passphrases must have complexity and strength at least equivalent to the parameters specified above.

• Change user passwords/passphrases at least once every 90 days.

• Do not allow an individual to submit a new password/passphrase that is the same as any of the last four passwords/passphrases he or she has used.

• Set passwords/passphrases for first-time use and upon reset to a unique value for each user, and change immediately after the first use.

BUSINESS SERVICES DEPARTMENT Page 9 of 40

D. INSTRUCTIONS TO OFFERORS

D.1. DEFINITION OF KEY WORDS USED IN THE SOLICITATION

For purposes of this solicitation and any subsequent contract, the following terms have the meanings set forth below:

City:The City of Tucson, Arizona

Contract:The legal agreement(s) executed between City and the Successful Offeror(s). The Contract will be deemed to include all the conditions and requirements set forth in this solicitation and any Addenda to the solicitation, all the Special Terms and Conditions and Standard Terms and Conditions, and all the terms of the Offer submitted by Offeror as finally negotiated and accepted by the City.

Contractor/Consultant:A Successful Offeror that enters into a Contract with the City.

Contract Representative:The City employee or employees who have been designated to act as the City contact for this solicitation process and who are responsible for monitoring and overseeing the Contractor's performance under the Contract.

Business Services Director:The contracting authority for the City, authorized to sign contracts and addenda thereto on behalf of the City.

May: Indicates something that is not mandatory but permissible.

May not:The indicated party is prohibited from taking the action.

Must: The action or condition is required.

Offer:Any proposal, statement of qualifications, bid, or other submission provided by an Offeror in response to this Solicitation.

Offeror: Each individual or entity that submits an Offer in response to this solicitation.

Successful Offeror: An Offeror who received a Notice of Award or a Notice of Intent to Award from the City.

Will:The indicated party is promising to take the action or abide by the condition.

D.2. PRE-SUBMITTAL MEETING

A Pre-Submittal Meeting will be held at the date and time stated on the cover page of this solicitation, if such a date and time is provided. Attendance at this meeting is not mandatory, but written minutes and/or notes regarding the meeting will NOT be provided, so attendance is encouraged. The purpose of this meeting will be to clarify the contents of this solicitation in order to prevent any misunderstanding of the City's position.

D.3. INQUIRIES

Any questions about this solicitation or the proposed Contract must be presented at the Pre-Submittal Meeting, if there is one (see above), or submitted in writing, via email, or through the online bidding system, to the Contract Officer by the Question Submission Deadline. The email must refer to the solicitation number and the paragraph number of the provision that the question concerns. The Contract

BUSINESS SERVICES DEPARTMENT Page 10 of 40

Officer may respond by email or may, if they deem it appropriate, address the question in a solicitation addendum or response through the question and answer portal in the online bidding system. Offeror may not rely on oral interpretations or clarifications about the solicitation; only questions answered in an email by the Contract Officer, posted through the online bidding system, or posted as a formal solicitation addendum will be binding.

D.4. ADDENDUM OF SOLICITATION

Solicitation Addenda will be posted on the City’s link to the online bidding website. Offeror is responsible for checking the webpage regularly for new solicitation addenda and must acknowledge each addendum to this solicitation in its submittal. Please note that vendors who have registered with the Business Services Department at https://procurement.opengov.com/portal/tucson-az and follow the City of Tucson will receive email notifications of solicitation addenda.

D.5. UNDERSTANDING SCOPE OF WORK

Before submitting an Offer to this solicitation, Offeror must familiarize itself with the Scope of Work, laws, regulations, physical conditions, and other factors affecting the obligations – including the expense and difficulty of fulfilling those obligations – that Offeror will have under the Contract if awarded to Offeror. No adjustment to the financial or other terms of the Contract will be justified by Offeror’s failure to fully understand or appreciate the Contract requirements or other factors affecting Contract performance.

D.6. PREPARATION OF OFFER

A. Form and Organization. If Offer forms are included in this Solicitation, Offeror’s Submittal must be on those forms. Supporting documentation must be arranged in a manner that follows and clearly refers to corresponding sections of the solicitation. Offeror may copy the submittal forms in order to complete them electronically but may not alter or rearrange them or change any paragraph designations.

B. Confidential Information. Any information in its submittal that Offeror wishes to be treated as confidential must be clearly marked “CONFIDENTIAL.”

C. Offer Contents. Offeror’s submittal must contain responses to all sections of this solicitation, any Offer forms provided must be completed and any requested supporting documentation must be attached.

D. Signatures. Offeror must include in their submittal signed copies of the Offer and Acceptance page. Any cover letter accompanying the proposal documents must be signed. Offeror must initial each erasure, interlineation or other modification in the submittal. The person signing and initialing on behalf of Offeror must be a person authorized to legally bind Offeror.

E. Prices. Where a unit price is provided it will govern over any erroneous extension of the price.

F. Time Periods. Periods of time, stated as a number of days, will be calendar days unless specifically stated otherwise.

G. Accuracy. Mistakes in preparation of its submittal confers on Offeror no right to modify or withdraw its submittal after the Submittal Deadline.

https://procurement.opengov.com/portal/tucson-az

BUSINESS SERVICES DEPARTMENT Page 11 of 40

H. Cost of Preparation. The City will not reimburse Offeror for the cost of developing, presenting, submitting or providing any response to this solicitation.

I. Subcontractors. Offeror must, in their submittal, list any subcontractors that it will utilize in the performance of the Contract if they are awarded the Contract and must describe their qualifications in detail.

J. Incomplete Information. Failure to include all requested information may have a negative impact on the evaluation of Offeror’s submittal.

D.7. PAYMENT DISCOUNTS

Payment discount periods shall be computed from the date of receipt of the material/service or correct invoice, whichever is later, to the date City’s payment warrant is mailed. Unless freight and other charges are itemized, any discount provided shall be taken on full amount of invoice. Payment discounts of twenty-one calendar days or more shall be deducted from the proposed price in determining the price points. However, the City shall be entitled to take advantage of any payment discount offered by a vendor provided payment is made within the discount period. The payment discount shall apply to all purchases and to all payment methods.

D.8. TAXES

The City is exempt from federal excise tax, including the federal transportation tax, but is not exempt from any other taxes, including state and local sales and excise taxes.

D.9. EXCEPTIONS TO CONTRACT PROVISIONS

By submitting an offer in response to this solicitation, Offeror is offering to enter into the Contract with the City. If Offeror wishes to modify any Contract terms and conditions, Offeror must, in its Offer, clearly identify the changes it is requesting. No requested modification will be deemed accepted by the City unless and until the City’s Business Services Director or their designee expressly accepts it in writing.

D.10. PUBLIC RECORD

Any documents submitted by Offeror in response to this solicitation will become the property of the City.

Except as set forth below with respect to Confidential Information, the Submittal will be deemed to be a public record available for review by the public after the award notification.

D.11. CONFIDENTIAL INFORMATION

The City is obligated to abide by the Arizona Public Records Law, A.R.S. §§ 39-101 through 39-161. If Offeror believes that any portion of its Offer, specification, protest or correspondence contains information that is confidential and subject to being withheld from disclosure in the event that the City receives a public records request to which the record is responsive, Offeror must, when the record is submitted, provide the Contract Officer written notification of that fact. The records or portions of records that Offeror wishes to be treated as confidential must also be clearly marked “CONFIDENTIAL” on their face. Pricing will not be treated as confidential.

BUSINESS SERVICES DEPARTMENT Page 12 of 40

If the City, after award notification, receives a public-records request the scope of which includes a document submitted by Offeror and marked "CONFIDENTIAL", the Contract Officer will make a written determination regarding whether the document will be provided to the requestor. If the Contract Officer determines that the document should be released, City will notify Offeror in writing. Unless Offeror, within 10 days after the date of that notice, obtains and provides to City an order from a court of competent jurisdiction prohibiting the City from releasing the documents, the City may release the documents without any liability to Offeror.

D.12. WHEN AND HOW TO SUBMIT OFFERS

In order to be considered, Offeror must, no later than the Offer Submittal Deadline, submit its Offer electronically through the City’s online bidding system:

https://procurement.opengov.com/portal/tucson-az

NOTE: THE ENTIRE OFFER MUST BE IN "“SUBMITTED"” STATUS IN THE CITY’S ONLINE

BIDDING SYSTEM IN ORDER TO BE CONSIDERED. RESPONSES THAT HAVE BEEN CREATED

IN THE SYSTEM, BUT THAT ARE NOT IN "“SUBMITTED"” STATUS BY THE OFFER SUBMITTAL

DEADLINE WILL NOT BE CONSIDERED.

D.13. CERTIFICATION OF NONCOLLUSION; CONFLICTS OF INTEREST

Offeror will not communicate, orally or in writing, with any member of the Mayor and Council, or with any City staff outside the Procurement Division of the Business Services Department, regarding this Solicitation. By submitting an Offer, Offeror warrants that:

A. Preparation and submission of the submittal did not involve collusion or other anti-competitive practices.

B. Offeror has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, meal or service to a public servant in connection with this solicitation.

C. No person has been employed or retained to solicit or secure a Contract under this solicitation upon a promise of a commission, percentage, brokerage, or contingent fee.

D. No employee of the City involved in this Solicitation process, or any family member of such an employee, has any substantial financial interest in Offeror’s firm. No member of the City of Tucson Mayor and Council who has, or whose family member has, any substantial financial interest in Offeror’s firm will participate in any action taken by the Mayor and Council with respect to this Contract. The terms “relative” and “substantial interest” have the meanings assigned in A.R.S. § 38-502

The City may disqualify Offeror from further participation in the solicitation process if the City determines that any City employee or official involved in this Solicitation process has an actual or apparent conflict of interest or if Offeror has engaged in any collusion or anti-competitive practices.

BUSINESS SERVICES DEPARTMENT Page 13 of 40

D.14. WITHDRAWAL OF OFFER; BINDING OFFER

By submitting an Offer in response to this Solicitation, Offeror is offering to enter into the Contract with the City. Offeror may withdraw a submitted Offer at any time prior to the Offer Submittal Deadline.

Telephonic or oral withdrawals are not effective.

Offeror cannot withdraw an Offer that is in “submitted” status as of the Offer Submittal Deadline unless the Director of the Business Services Department consents in writing to the withdrawal. The Offer will be irrevocable for 90 days after the Offer Submittal Deadline.

D.15. DISCUSSIONS

The City may, at its discretion, conduct discussions with Offeror for the purpose of eliminating minor irregularities, informalities, or apparent clerical mistakes in Offeror’s submittal in order to clarify the offer and assure full understanding of, and responsiveness to, solicitation requirements.

D.16. VENDOR REGISTRATION; BUSINESS LICENSE

In order to be eligible for award of a Contract, Offeror must:

A. Register with the City’s Business Services Department. Registration can be completed at https://procurement.opengov.com/portal/tucson-az

B. Obtain a City of Tucson Business License or a written determination from the City's Business License Section that a license is not required. For questions contact the City's Business License Section at

(520) 791-4566 or email at license@tucsonaz.gov mailto:license@tucsonaz.gov

BUSINESS SERVICES DEPARTMENT Page 14 of 40

E. OFFER EVALUATION AND CONTRACT AWARD

E.1. PROPOSAL EVALUATION CRITERIA – (listed in relative order of importance)

A. Method of Approach

B. Price Proposal

C. Qualifications & Experience

E.2. INTERVIEWS

The City may interview some or all of the offerors at any point during the evaluation process. If interviews are conducted, information provided during the interview process will be taken into consideration in the evaluation process. The City will not reimburse the Offeror for any costs Offeror incurs during its participation in the interview process.

E.3. ADDITIONAL INVESTIGATIONS

The City may undertake any additional investigations it deems appropriate to evaluate the competence and financial stability of any offeror.

E.4. OTHER INFORMATION

Information that evaluation committee members have about an offeror beyond what is provided in the offeror’s Offer may be taken into consideration during the evaluation process.

E.5. PRICE

A. Tax Offset Policy. If applicable under Section 28-18(6) or Section 28-17(7)(d) of the Tucson Procurement Code, the City will include the amount of all business privilege taxes other than the City’s in evaluating the pricing component of each Offer.

B. Payment Discounts. Any discounts offered by Offeror for payments made within 21 calendar days or more will be deducted from the proposed price in evaluating an offeror’s pricing.

However, the City may take advantage of any early- or timely-payment discounts offered by a vendor. Any proposed payment discount will apply to all purchases and to all payment methods

E.6. CITY’S RIGHT TO WAIVE DEFECTS OR REJECT OFFERS

Notwithstanding any other provision of this solicitation, the City may:

A. Waive any immaterial defect or informality; or

B. Reject any or all submittals, or portions thereof; or

C. Reissue the solicitation.

BUSINESS SERVICES DEPARTMENT Page 15 of 40

E.7. CONTRACT NEGOTIATIONS

At the City’s discretion, it may negotiate with one or more responsible offerors to agree upon the final conditions, terms and price of the Contract. In doing so, the City will treat offerors fairly and will not disclose to any offeror information from responses submitted by other offerors. Exclusive or concurrent negotiations do not constitute a contract award and do not confer any rights to the offerors participating in such negotiations. In the event the City deems that negotiations are not progressing, the City may formally terminate these negotiations and may enter into concurrent or exclusive negotiations with the next most qualified firm(s).

E.8. AWARD OF CONTRACT

A Contract is created when, and only when, it is formally awarded, which occurs when the Business Services Director and the City Attorney sign the Offer and Acceptance page of the Successful Offeror’s submittal. When a Contract is awarded, the City will send the Contractor a Notice of Award.

The City may first issue a Notice of Intent to Award to the Successful Offeror(s). Offeror, if it receives a Notice of Intent to Award from the City, must sign and file with the City, within ten (10) days after receipt of the Notice, all documents necessary for execution of the Contract. A Notice of Intent to Award does not create a contract. Only a subsequent formal award, as described above, creates a Contract.

E.9. MULTIPLE AWARDS

The City, at its sole discretion, may award multiple Contracts.

E.10. SUBMITTAL RESULTS

After the City issues a Notice of Award, the City will post the name(s) of the Successful Offeror(s) on the Business Services Department’s Internet site at https://procurement.opengov.com/portalucson-az/contracts

E.11. PROTESTS

Any interested party, may, in accordance with Article IX of the Tucson Procurement Code, protest either this solicitation or the award of a Contract under this solicitation. A protest based on alleged improprieties in this solicitation must be filed no later than five (5) working days before the Proposal Submittal Deadline. A protest of a proposed or actual award must be filed no later than ten (10) calendar days after the City issues a Notice of Intent to Award or, if no Notice of Intent to Award is issued, after the City issues a Notice of Award.

A protest must be made in writing and filed with the Contract Officer. It must include:

A. The name, address, and telephone number of the protestant;

B. The signature of the protestant or its representative;

C. The solicitation or Contract number;

D. A detailed statement of the legal and factual grounds for the protest along with copies of all relevant documents; and https://procurement.opengov.com/portalucson-az/contracts https://procurement.opengov.com/portalucson-az/contracts

BUSINESS SERVICES DEPARTMENT Page 16 of 40

E. The form of relief requested.

BUSINESS SERVICES DEPARTMENT Page 17 of 40

F. EVALUATION PHASES

No. Evaluation Criteria Scoring Method Weight (Points)

BUSINESS SERVICES DEPARTMENT Page 18 of 40

1. Method of Approach

I. Terms of Loan: Please provide detailed responses to the following questions:

A. Explain the minimum qualifications for an employee to secure a loan. Specifically address: length of employment, salary, credit score, and other financial obligations of the employee, including garnishments and levies.

B. Clarify the maximum and minimum amount of the loan.

C. Clarify the amortization period of the loan

D. Clarify the time period in which the loan request is accepted or rejected. How long do employees have to wait to receive funds once their loan is approved?

E. Clarify accessibility/restrictions of loan application process (days/hours).

F. Provide a detailed process for applying. (in-person, online etc.)

Are all forms available online and/or hardcopy?

G. Clarify repayment terms, including the ability to prepay the full amount without penalty via payroll deduction, online, or other method.

H. Clarify the loan repayment and termination process (payroll deduction, etc.).

I. Clarify the frequency of loans: e.g.

How often can an employee get a loan within a given period of time?

J. Clarify any reasons an employee can be denied a loan.

K. Describe any other limitations.

L. Affirm that there is no prepayment penalty and describe any other features to encourage principle reduction.

M. Explain if there is a lower interest rate based on an employee’s credit rating. What type of credit check is performed – hard or soft?

N/A N/A

BUSINESS SERVICES DEPARTMENT Page 19 of 40

N. Explain how your program can ensure that the loan will not exceed 20 percent of the employee’s net pay.

O. Explain the process for the employee to apply for a loan.

Include a sample copy of the application, loan agreement, time for processing, and any other relevant details for securing the loan.

P. Explain any and all privacy and security features.

Q. Explain how the program complies with all relevant state and federal civil rights laws, policies, and guidelines.

R. Explain any services/accommodations that you provide for employees who have visual or hearing impairments or other disabilities/special needs.

S. Include all relevant marketing materials and loan paperwork including: application process, legal documents, etc.

T. Explain any other financial tools or ancillary services that are available to borrowers and to all employees. If there is an additional fee for any of these services, that fee must be listed on the Price Page.

U. Describe what information is reported back to the City including frequency, format etc.

V. Describe your requirements for a list of basic information to determine preliminary eligibility for the loan program.

W. Describe how City of Tucson employees can interact with your customer service department. Do you have any physical locations in the Tucson area? If so, what are the hours of operation? Do you offer a toll-free phone number, online chat, or other means of communication?

X. Do you certify that you are, or will be working with, a U. S. based

BUSINESS SERVICES DEPARTMENT Page 20 of 40 national bank, credit union, or state-regulated financial institution?

Y. Do you certify that your loan program complies with all regulatory requirements for consumer bank loans?

II. Program Implementation and Management Plan: Please provide detailed responses to the following questions:

A. Describe your proposed implementation plan.

B. Describe the set-up process.

C. Describe the transmittal process for eligibility and other files.

D. Describe the process to manage overpayments, underpayments, and employee separation.

E. Describe your statistical reporting process.

F. What are the guidelines on the number of loans an employee can have, the total amount that can be borrowed, and whether loans can be consolidated?

G. Are there any specific requirements for loan application process (days, hours, locations, etc.). What is the time period in which the loan request is processed and accepted or rejected after application is submitted. Include detailed protocols for communication with borrowers, including reminders, customer support, program marketing, etc.

H. Describe the platforms required for interfacing and sharing data.

I. Describe any technological requirements. Describe how the system protects the privacy and security of employees, including state-of-the-art standards for the secure transmittal and maintenance of employee data.

J. Describe how your security protocols match or exceed those listed under “Security

BUSINESS SERVICES DEPARTMENT Page 21 of 40

Requirements” in the Scope of Work.

K. Describe any legal requirements.

Describe how compliance with all applicable laws and regulations will be achieved.

L. Describe any required training for City of Tucson staff.

M. Describe processes for grievances and complaints, default and termination.

N. What liability, if any, does the City of Tucson face if an employee lacks sufficient pay to cover the loan liability (for example, if an employee is on leave without pay)? What options for making payment would the employee have in this situation?

O. What happens to a loan when the status of the employee changes resulting in reduced income?

P. How are changes to payroll deduction amounts communicated to the City?

Q. What is the responsibility of the City in the event a borrower is terminated from employment with the City? Is employment termination considered an automatic default?

R. When and how is the City notified of final payroll deduction when loan is terminating/ending and balance is zero?

S. Do you agree to comply with all of the requirements outlined under the Scope of Work? If not, please explain any deviations in detail.

BUSINESS SERVICES DEPARTMENT Page 22 of 40

2. Price Proposal

Provide price proposal as requested on the Price Page attached herein.

A. Provide the interest rate for the program(s). This must include the maximum annual percentage rate charged for any employee and methodology for determining the interest rate, if this will vary.

These rates must also be listed on the Price Page. How is the interest calculated?

B. Explain any and all fees that are the responsibility of the employee, including any origination fees, application fees, processing fees, late fees, finance fees, etc. These fees must also be listed on the Price Page. When is the employee expected to pay each of these fees? What fees are the responsibility of the borrower if employment is terminated with the City?

C. Provide a sample cost structure for a $1,000 loan with a credit check and all expected ancillary fees and what that cost would be to the employee for the life of the loan.

D. Provide a sample cost structure for a $1,000 loan without a credit check to include any and all expected ancillary fees and what that cost would be to the employee for the life of the loan.

BUSINESS SERVICES DEPARTMENT Page 23 of 40

3. Qualifications and Experience

I. Company qualifications/experience and loan program performance: Please provide detailed responses to the following questions:

A. Detail your firm’s experience administering loan programs.

Describe any loan programs administered; list the employers you have partnered with. Please include number of programs administered, number of years of experience, types of employers, types and numbers of borrowers served, testimonials from borrowers and employers.

B. Provide three (3) references of loan programs of a similar size and scope that you have administered within the last 5 years. List any that terminated early (if applicable).

C. Describe the type of financial institution and regulatory status, such as FDIC, NCUA, Federal Reserve, or OCC oversight.

D. Provide any litigation history (if applicable).

E. Do you have any key financial or legal partners? If so, detail their same information and explain the partnership structure.

F. Provide projected metrics and past actual performance for:

1. Number of loans made per year.

2. Total amount loaned per year.

3. Repayment rate and default rate.

G. List all subcontractors that may come into contact with employee information. Include the function they fulfill, their physical location, and confirm that you assume liability for them that may arise out of fulfillment of this contract.

BUSINESS SERVICES DEPARTMENT Page 24 of 40

G. SPECIAL TERMS AND CONDITIONS

G.1. COOPERATIVE PURCHASING

Contractor will, when requested, provide goods and services at the same prices and under the same terms and conditions as set forth in this Contract to any public or nonprofit agency that, at the time of request, has a Cooperative Purchasing Agreement with the City or participates in the Strategic Alliance for Volume Expenditures (SAVE) cooperative. See http://www.tucsonprocurement.com/coop_partners.aspx and click on “Cooperatives” for a list of agencies that have Cooperative Purchasing Agreements with the City; see http://www.mesaaz.gov/home/showdocument?id=23638 for a list of agencies participating in SAVE.

These lists are subject to change. Contractor may, however, charge an agency that is outside the Tucson Metropolitan Area for additional out-of-pocket expenses that will be incurred by Contractor in providing goods and services to the agency (i.e., freight charges, travel related expenses, etc.).

Each participating agency that orders goods or services under this Contract as provided above is solely responsible for paying Contractor for those goods and services. The City is not responsible for any disputes arising out of transactions made by others.

G.2. PRICE ADJUSTMENT

At least 90 days before the date that the Contract is eligible for extension, Contractor may submit to the Contract Officer a request for price adjustments based on documented increased Contractor costs and the City may, at its discretion, make price adjustments, which will apply during the extension term.

G.3. TERM AND RENEWAL

The term of the Contract will commence when awarded to Contractor and remain in effect for a period of one (1) year, unless terminated, canceled or extended as otherwise provided herein. The City may, at its sole option, extend the Contract's term for up to four (4) additional one-year periods or portions thereof.

http://www.tucsonprocurement.com/coop_partners.aspx http://www.mesaaz.gov/home/showdocument?id=23638

BUSINESS SERVICES DEPARTMENT Page 25 of 40

H. INSURANCE REQUIREMENTS

H.1. Required Insurance Policies

Contractor will obtain and maintain during the entire term of this Contract and for 2 years after the Contract term ends, the following insurance coverage from insurers that have an “A.M. Best” rating of not less than A-VII:

H.2. Commercial General Liability

Policy must include Bodily Injury, Property Damage, Personal Injury and Broad Form Contractual Liability with coverage limits no lower than:

A. Each Occurrence: $1,000,000

B. General Aggregate: $2,000,000

C. Products & Completed Operations Aggregate: $2,000,000

D. Personal and Advertising Injury: $1,000,000

E. Blanket Contractual Liability: $1,000,000

H.3. Commercial Automobile Liability

Policy must include bodily injury and property damage, for any owned, hired, and/or non-owned vehicles used in performance of work under this Contract, with a Combined Single Limit no lower than $1,000,000.

H.4. Worker's Compensation

Policy must have coverage limits no lower than:

A. Per Occurrence: Statutory

B. Employer's Liability: $1,000,000

C. Disease Each Employee: $1,000,000

D. Disease Policy Limit: $1,000,000

E. [If Contractor is a Sole Proprietor, include this waiver provision under A.R.S. § 23-961(M). To determine whether the Contractor is a Sole Proprietor, please request the Sole Proprietor/Independent Contractor form from the Contract Officer listed in the solicitation.] I am a sole proprietor, and I am doing business as [name of sole proprietor business]. I am performing work as an independent contractor for the City of Tucson. I am not the employee of the City of Tucson for workers' compensation purposes, and, therefore, I am not entitled to workers' compensation benefits from the City. I understand that if I have any employees working for me, I must maintain workers' compensation insurance on them.

BUSINESS SERVICES DEPARTMENT Page 26 of 40

H.5. Professional Liability (Errors & Omissions)

Policy must have coverage limits no lower than:

A. Each Claim: $1,000,000

B. Annual Aggregate: $2,000,000

H.6. Professional Liability - Technology Errors & Omissions

Policy must have coverage limits no lower than:

A. Each Claim: $1,000,000

B. General Aggregate: $2,000,000

H.7. Network Security (Cyber) and Privacy Liability

Policy must have coverage limits no lower than:

A. Each Claim: $1,000,000

B. Annual Aggregate: $2,000,000

Such insurance shall include, but not be limited to, coverage for third party claims and losses with respect to network risks (such as data breaches, unauthorized access or use, ID theft, theft of data) and invasion of privacy regardless of the type of media involved in the loss of private information, crisis management and identity theft response costs. This should also include loss of use, breach notification costs, credit remediation and credit monitoring, defense and claims expenses, regulatory defense costs plus fines and penalties, cyber extortion, computer program and electronic data restoration expenses coverage (data asset protection), network business interruption, computer fraud coverage, and funds transfer loss.

In the event that the Network Security and Privacy Liability insurance required by this Contract is written on a claims-made basis, Contractor warrants that any retroactive date under the policy shall precede the effective date of this Contract and, either continuous coverage will be maintained, or an extended discovery period will be exercised for a period of two (2) years beginning at the time work under this Contract is completed.

H.8. Policy Change Notice

Contractor will give the City 30 days advance written notice before any of the above policies are changed in any manner that is inconsistent with the requirements of this Contract. The notice must be sent directly to the Procurement Division of the Business Services Department.

H.9. Additional Insured

The Commercial General Liability, Commercial Automobile Liability and umbrella policies where applicable will include the City as an additional insured with respect to liability arising out of the performance of this contract. The City must be covered to the full policy limits, even if those limits of

BUSINESS SERVICES DEPARTMENT Page 27 of 40 liability are in excess of those required by this Contract. The coverage must be primary and any insurance carried by City is excess and not contributing.

H.10. Claims-Made Coverage

If any or part of the required insurance is written on a claims-made basis, any policy retroactive date must precede the date of the contract and the Contractor must maintain such coverage for a period not less than three (3) years following contract expiration, termination or cancellation.

H.11. Additional Requirements

Each insurance policy required by this Contract, excluding Professional Liability (Errors & Omissions), must include or be endorsed to include to provide the following:

A. A waiver of subrogation endorsement in favor of the City, for losses arising from work performed by or on behalf of the Contractor (Including Worker’s Compensation).

B. The policy is primary and any insurance carried by the City is excess and not contributing.

C. The coverage provided by the policy is not limited to the liability assumed under the indemnification provisions of this Contract.

D. The insurer will provide written notice to the City at least ten (10) calendar days before the policy is terminated or cancelled or the coverage is reduced.

H.12. Verification of Coverage

A. Contractor will give the City certificates of insurance (ACORD form or equivalent approved by the City), signed by an authorized representative of the insurer, showing that the Contractor has all the insurance required by this Contract.

B. Contractor must deliver the certificates directly to the Procurement Division of the City’s Business Services Department before the Contractor commences work under this Contract.

C. The certificates must contain the City project/contract number and project description.

D. The City reserves the right to require complete copies of all insurance policies required by this Contract at any time.

H.13. Subcontractors

Contractors’ insurance certificate(s) must include all subcontractors as insureds under its policies or Contractor must give the City separate certificates and endorsements for each subcontractor showing that each subcontractor has the insurance coverage described above.

H.14. Public Entities

If Contractor or any sub-contractor is a public entity that self-insures as permitted by law, then the insurance requirements in this Section 8 will not apply to that entity and that entity must instead provide a Certificate of Self- Insurance.

BUSINESS SERVICES DEPARTMENT Page 28 of 40

H.15. Sufficiency of Coverage

The City in no way warrants that the required minimum insurer rating in this Contract is sufficient to protect the Contractor from potential insurer insolvency, nor that the required liability limits are sufficient to protect Contractor.

BUSINESS SERVICES DEPARTMENT Page 29 of 40

I. STANDARD TERMS AND CONDITIONS

I.1. ADVERTISING

Contractor will not advertise or publish information concerning this Contract without prior written consent of the City’s Business Services Director.

I.2. COMPLIANCE WITH LAWS

The parties will comply with all federal, state and local laws, rules, regulations, standards and Executive Orders including, without limitation, the following:

A. Americans with Disabilities Act. Contractor will comply with all applicable provisions of the Americans with Disabilities Act (Public Law 101-336, 42 U.S.C. 12101 -- 12213) and applicable Federal regulations under the Act, including 28 CFR Parts 35 and 36.

B. Workers’ Rights Laws. Contractor will comply with all applicable provisions of Federal and State Child Labor and Workers’ Rights laws and agrees if called upon to affirm in writing that they and any subcontractors working under this Contract are in compliance.

C. Affirmative Action. Contractor will comply with Chapter 28, Article XII of the Tucson City Code Chapter 28.

I.3. GOVERNING LAW AND VENUE

This Contract is governed by the laws of the State of Arizona and the City and Contractor will have all remedies afforded to each by the Tucson Procurement Code and the laws of the State of Arizona. Any lawsuits regarding this Contract must be brought in a court of competent jurisdiction in Pima County, Arizona.

I.4. ARBITRATION

Notwithstanding any other provision in this Contract, no agreement by the City to arbitrate a dispute is binding unless given expressly and in writing after execution of this Contract. However, if both parties agree, disputes may be resolved through arbitration following the process in A.R.S. § 12-1501, et seq.

Contractor must continue to perform under this Contract without interruption, notwithstanding the provisions of this section.

I.5. ASSIGNMENT

Contractor may not assign its rights or obligations under this Contract without the prior written permission of the City's Business Services Director. The City will not unreasonably withhold approval for a requested assignment.

I.6. SUBCONTRACTS

Contractor may not enter into any subcontracts for work under this Contract without the advance written approval of the City's Business Services Director.