ESBD_358140_1714757038416_HHS0014267 RFO IBM ELA and Maintenance Services.pdf

RFO No. HHS0014267 Page 1 of 41 Version 2.10 Revision Date 09/12/2023

Cecile E. Young, Executive Commissioner

Request for Offers (RFO) for

IBM Enterprise License Agreement and Maintenance Services

RFO No. HHS0014267

Date of Release: May 3, 2024

Deadline for Submission of Solicitation Responses: June 3, 2024 by 10:30 a.m. Central Time

NIGP Class/Item Codes

206/55 *Integrated Hardware-Software IT, Turnkey Solution, Server and Mainframe Computer

920/45 *Software Maintenance and Support Services and Updates and Data Hosting Services

920/47 *Support Services, Computer, Includes Computer Warranties 939/21 *Computers, Data Processing Equipment and Accessories, Not Word Processing

Equipment, Maintenance and Repair 939/55 *Multi-Function Office Machine Maintenance and Repair

*Automated Information Systems (AIS)

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Table of Contents Article I. Introduction, Definitions, and Authority

1.1 Introduction

1.2 Definitions

1.3 Authority

1.4 Proprietary Software

Article II. Scope Of Work

2.1 Description of Services

2.1.1 Overview

2.1.2 Contractor Requirements

Table 1 - General Requirements

2.1.3 Key Performance Measures and Associated Remedies

Table 2 - Key Performance Measures and Liquidated Damages

2.1.4 Invoicing

2.2 Contract Award, Term, and Historical Compensation

2.2.1 Contract Award and Execution

2.2.2 Contract Term

2.2.3 Historical Compensation

2.3 Data Use Agreement and Security Privacy Inquiry

2.4 No Guarantee of Volume, Usage, or Compensation

Article III. Administrative Information

3.1 Schedule of Events

3.2 Ambiguity, Conflict, or Discrepancy

3.3 Inquiries

3.3.1 Sole Point of Contact

3.3.2 Prohibited Communication

3.3.3 Exception to Sole Point of Contact

3.3.4 Solicitation Questions

3.4 Pre-proposal Conference/HSP Training

3.4.1 Attendance

3.4.2 Conference Logistical Information

3.4.3 Questions at Pre-Proposal Conference/HSP Training

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3.5 Solicitation Response Composition

3.5.1 General Information

3.5.2 Page Limit and Supporting Documentation

3.5.3 Discrepancies

3.5.4 Exceptions

3.5.5 Assumptions

3.5.6 Binding Offer

3.6 Solicitation Response Submission and Delivery

3.6.1 Deadline

3.6.2 Submission Option

3.6.3 Submission Checklist

3.6.4 Labeling and Delivery for USB Drive Submission and Other Materials

3.6.5 Modifications and Withdrawals

Article IV. Solicitation Response Evaluation and Award Process

4.1 Conformance with State Law

4.2 Best Value Determination

4.2.1 Selection Methodology

4.2.2 Minimum Qualifications

4.2.3 Initial Compliance Screening

4.2.4 Written Solicitation Response Evaluation

4.2.5 Written Response Evaluation Criteria

4.2.6 Final Written Response Score

4.3 Questions or Requests for Clarification

Article V. Narrative Proposal

5.1 Narrative Proposal

5.1.1 Executive Summary

5.1.2 Services to Be Provided

5.1.3 Product Availability

5.1.4 Product Support and Maintenance

5.1.5 Disaster Recovery

5.1.6 Licensing

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5.1.7 Point of Contact

Article VI. Required Respondent Information

6.1 Company Information

6.1.1 Company Narrative

6.1.2 Response to Minimum Qualifications

6.1.3 Company Profile

6.2 Franchise Tax – Right To Transact Business in Texas

6.3 References

6.4 Major Subcontractor Information

6.5 Affirmations and Certifications

6.6 Other Reports

6.6.1 Dun and Bradstreet Reports

6.6.2 Financial Statements and Financial Solvency

6.6.3 Alternate Report

6.6 Corporate Guarantee

6.7 HUB Subcontracting Plan

6.8 Secretary of State Certification

Article VII. Cost Proposal

7.1 Cost Proposal

Article VIII. General Terms and Conditions

8.1 General Conditions

8.1.1 Changes, Modifications, and Cancellation

8.1.2 Offer Period

8.1.3 Costs Incurred

8.1.4 Contract Responsibility

8.1.5 Public Information Act - Respondent Requirements Regarding Disclosure

8.1.6 Respondent Waiver – Intellectual Property

8.1.7 Standards of Conduct for Vendors

8.1.8 Disclosure of Interested Parties

8.2 Insurance

8.2.1 Required Coverage

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8.2.2 Alternative Insurability

8.3 Protest

Article IX. List of Exhibits

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ARTICLE I. INTRODUCTION, DEFINITIONS, AND AUTHORITY

1.1 INTRODUCTION

The State of Texas, by and through the Texas Health and Human Services Commission (HHSC), seeks a qualified Contractor to provide the IBM suite of software and hardware products and associated subscription and support services in accordance with the Scope of Work (SOW) and other requirements contained in this Solicitation.

HHSC PCS will administer the procurement process for this Solicitation, which includes RFO publication, handling of communications from vendors, as well as managing the receipt of Solicitation Responses for review and evaluation.

To be considered for award, a Respondent must execute Exhibit A, HHS Solicitation Affirmations Version 2.4 and provide all other required information and documentation as set forth in this Solicitation.

1.2 DEFINITIONS

Refer to Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions - Vendor, Version 3.4, and Exhibit C, Health and Human Services (HHS) Additional Provisions, Version 1.0, for additional definitions (e.g., Contract, Contractor, Deliverable, Effective Date, HUB, Services, Solicitation Response, Subcontractor, System Agency, Work, and Work Order).

As used in this Solicitation, unless a different definition is specified or the context clearly indicates otherwise, the following terms and conditions have the meanings assigned below:

“Addendum” means a written clarification or revision to this Solicitation issued by HHSC PCS and posted to the ESBD.

“Award Consideration (AC) Documents” means documents Respondent must submit as part of the Solicitation Response to be considered for negotiations or award.

“Burn Down” means each product in the software publisher’s catalog that has an associated cost value, and as these products are consumed by the customer, there is a deduction from the total cost of the product catalog. This deduction is considered a “burn down” from the aggregate total catalog price.

“Contract Manager” means the assigned HHSC staff responsible for managing and administering the Contract.

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“Contract Term” means the period of time beginning with the commencement date or Effective Date of a Contract and ending when the Contract expires in accordance with its terms, or when it has been terminated.

“DSHS” means the Department of State Health Services.

“Enterprise” means the organization for which HHSC provides oversight or administrative support. As authorized by applicable statute, HHSC provides administrative support to certain state agencies. HHSC’s internal business use includes any activities consistent with its statutory authority and such activities shall not be construed to be a service bureau, application service provider, provider of services to third parties, distribution outside of HHSC’s organization, or similar activity.

“ESBD” means the Electronic State Business Daily, the electronic marketplace where State of Texas bid opportunities over $25,000 are posted. The ESBD may currently be accessed at http://www.txsmartbuy.com/esbd.

“Final Written Response Score” refers to the final scoring of the written response as documented in the Solicitation.

“HHSC PCS” means Procurement and Contracting Services (PCS), a division of HHSC.

“HUB” means Historically Underutilized Business, as defined by Chapter 2161 of the Texas Government Code.

“HUB Subcontracting Plan” or “HSP” means written documentation regarding the use of subcontractors, which is required to be submitted with all responses to state agency contracts with an expected value of $100,000 or more where the state agency has determined subcontracting opportunities are probable. The HSP subsequently becomes a provision of the awarded Contract and shall be monitored for compliance by the state agency during the term of the Contract.

“Request for Offer” or “RFO” means this Solicitation including all exhibits, attachments and Addenda(s).

“Respondent” means the individual or entity responding to this Solicitation.

“Solicitation Consideration (SC) Documents” means documents that must be submitted by Respondent with the Solicitation Response in order to be considered for evaluation and cannot be resubmitted or have errors remedied after the submission due date and time in the Schedule of Events has passed.

“State” means the State of Texas and its instrumentalities, including HHSC, and any other state agency, its officers, employees, or authorized agents.

http://www.txsmartbuy.com/esbd

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“Subscription and Support” or “S&S” means the subscription and support services provided by the Contractor. Subscription means ability of HHSC to download fixes, feature packs, new releases and new versions of licenses via online means. Support denotes Contractor helpdesk and technical support (e.g., answers to deployment, migration, troubleshooting, and access to knowledge centers) provided to HHSC as outlined in each product’s license detail or other related Contractor documentation.

“True Up” means an activity, which may occur quarterly or as determined by HHSC, that involves verification and validation of all active and inactive software and hardware deployed across the Enterprise.

“VPTS” means Vendor Performance Tracking System, as defined under Section 2262.055 of the Texas Government Code and Title 34 of the Texas Administrative Code Part 1, Chapter 20, Subchapter B, Division 2, Rule §20.115 and Subchapter F, Division 2, Rule §20.509.

1.3 AUTHORITY

HHSC is soliciting the services stated in this Solicitation under the authority Section 2157.006(a)(2) of the Texas Government Code and Title 34 Texas Administrative Code Part 1, Chapter 20, Subchapter C, Division 2, Rule § 20.222.

1.4 PROPRIETARY SOFTWARE

Although the requested items in this Request for Offers appear to be proprietary to one vendor under Section 2155.067 of the Texas Government Code, all qualified Respondents that may be able to provide the requested items are encouraged to submit offers.

ARTICLE II. SCOPE OF WORK

2.1 DESCRIPTION OF SERVICES

2.1.1 Overview

The Contractor shall provide an IBM Enterprise License Agreement (ELA) that includes the following three proprietary IBM direct product offerings which are, Catalog, Cross Brand Allotment (CBA), and S&S. During the Contract Term, Contractor shall provide services to HHSC that include the following:

1. With existing IBM Products, provide licensing, S&S, and maintenance services, as applicable, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2262.htm#2262.055 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=115 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=509

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During the Contract Term, these products will be used for various purposes in both server side and desk side environments, which span across distinct agency systems that constitute the Enterprise including, but not limited to, the following: HHSC, DSHS, and Texas Integrated Eligibility Redesign System (TIERS) computer systems and desktops. Reference Exhibit M, Existing IBM Products and Appliances.

2. With existing IBM Appliances, provide S&S for either hardened or virtual configurations, for HHSC’s current inventory of IBM appliances. Reference Exhibit M, Existing IBM Products and Appliances.

3. As part of Contractor’s catalog, provide a selection of software products and other service offerings (e.g., S&S) and training to address the future growth within the Enterprise during the Contract Term. The catalog shall include Red Hat products.

4. Other service offerings including, but not be limited to, the following:

a. Aggregate Cap Program (e.g., ACEL). This financial cap applies to a list of software programs instead of a quantity of fixed programs. The software publisher’s catalog will allow HHSC to use as many licenses from the catalog, with 100% mix and match, as long as the aggregate value of the Burn Down price does not exceed the financial cap associated with the contracted catalog amount.

b. S&S Turndown provides HHSC the ability, on the annual anniversary date of the Contract, to identify a percentage of the overall S&S that is no longer being used by HHSC and obtain a credit for the unused S&S to be deposited annually into the CBA and made available for new purchases by HHSC. This activity occurs annually 90 calendar days prior to the S&S anniversary date and amends the quantities for the S&S previously acquired by HHSC under IBM Passport Advantage Agreements.

c. CBA is a fund which includes monies which are included in the option charges and will be held on account. Funds within CBA can be used by HHSC for future purchases such as additional IBM Distributed Software programs, IBM Passport Advantage Appliances, Red Hat products and services, and IBM Lab Services and Lab Services Training. CBA funds roll over annually and are available for use by HHSC until the end of the Contract Term.

d. The Accelerated Value Program (AVP) offers services and Contractor personnel to assist HHSC with the operation of the IBM software products provided to HHSC under the Contract. AVP shall include IBM products and services that are mutually agreed to between HHSC and the Contractor.

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2.1.2 Contractor Requirements

Contractor shall provide the services described in Table 1, General Requirements.

Table 1 - General Requirements

Requirement No.

Requirement

REQ - 001 Contractor shall coordinate with HHSC, for HHSC to create an inventory report of all IBM products in use by HHSC within the first 30 calendar days of the Effective Date of the Contract. Contractor shall add each product’s associated domain descriptors such as security, storage, etc. on the inventory report.

Contractor shall review and validate details to the HHSC generated inventory report.

REQ - 002 On a quarterly basis, as determined by HHSC, Contractor shall provide to HHSC a validated inventory report of all Processor Value Unit (PVU) based products on True Up activity. Non-PVU based reports shall be provided by Contractor on an annual basis as determined by HHSC. The Contractor shall coordinate with HHSC to resolve any discrepancies identified by HHSC.

REQ - 003 On a quarterly basis, as determined by HHSC, Contractor shall provide to HHSC a crosswalk document identifying any IBM products that are planned to be:

1. Rebranded in title, providing their current title and new title and any new features;

2. Discontinued, subject to end of support, or otherwise made inactive and the date of product or service discontinuation; or

3. Upgraded.

REQ - 004 On an annual basis, as determined by HHSC, HHSC will provide Contractor with a list of products that HHSC is no longer using and under consideration for the S&S turndown terms to use for CBA credit up to the amount defined in the Contract. Contractor shall provide a report on a quarterly basis, as determined by HHSC, that summarizes the CBA usage.

REQ - 005 If there are any remaining unused CBA funds at the end of the Contract Term, Contractor shall provide to HHSC an equivalent credit for the unused CBA funds.

REQ - 006 Upon HHSC’s written request, Contractor shall assist the HHSC Contract Manager or their designee to obtain detailed proof of product license including, but not limited to, proof of entitlements (POE) or other certification or validation of product license sharing documentation which are conveyed at engagement or completion of True Up activity and thereafter for any net new purchase of a software or hardware product.

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Requirement No.

Requirement

REQ - 007 Upon HHSC’s written request, Contractor shall provide assistance to the HHSC Contract Manager to obtain proof of product license documentation containing detailed product information within the 90-calendar day period following a True Up activity. Such Contractor assistance is in addition to HHSC’s access to Product Licensing Information that Contractor makes publicly available via online resources.

REQ - 008 Upon HHSC’s written request, Contractor shall provide assistance to the HHSC Contract Manager to obtain product information associated with any software or hardware product added or transferred to the ELA within the 90-calendar day period following the addition or transfer. Such Contractor assistance is in addition to HHSC’s access to Product Licensing Information that Contractor makes publicly available via online resources.

REQ - 009 Contractor shall support either IBM License Metric Tool (ILMT) or BigFix as Original Equipment Manufacturer (OEM) product that manages the interoperability and federation with IBM software products and appliances.

Contractor shall provide continued support to any upgrade activities for ILMT or BigFix.

REQ - 010 Upon HHSC request, Contractor shall facilitate the transfer of HHSC product licenses from the Department of Information Resources (DIR) Data Center Services (DCS) vendor to HHSC or provide for the use of the catalog of product offerings, to the extent available under the Contract, for this purpose.

REQ - 011 Contractor shall adhere to all S& S Service delivery and reporting requirements, including Case Severity Response Goals.

REQ - 012 Contractor shall provide features in the ELA that includes, but are not limited to:

1. Proactive support for planning, deployment, upgrades, and migration

2. Knowledge and skill sharing; and

3. A dedicated technical point of contact for problem management and priority escalation.

REQ - 013 Contractor shall provide Disaster Recovery (DR) activities in number and duration that constitute authorized use by HHSC at no extra charge to HHSC, provided there is no productive output or work done from the DR tests and there is no development, program maintenance or testing as part of the DR tests:

1. DR testing events will be occurring multiple times during the Contract Term;

2. HHSC anticipates Department of Information Resource (DIR) Data Center

Services and operations having up to 12 DR testing events annually to be compliant with Center for Medicare and Medicaid Services (CMS) federal guidelines; and

3. DIR’s Data Center Services including their private and public cloud service provider may conduct multiple DR test events at staggered intervals, estimated

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Requirement No.

Requirement up to 35 DR tests per year.

REQ - 014 Contractor shall support Bring Your Own License (BYOL) model that will allow HHSC to deploy IBM products in the ELA to a third-party cloud service provider.

2.1.3 Key Performance Measures and Associated Remedies

HHSC will monitor the performance of the Contractor. Although all requirements of the Contract are subject to performance review by HHSC, HHSC has identified certain Key Performance Measures (KPMs) in Table 2, Key Performance Measures and Liquidated Damages.

Table 2 - Key Performance Measures and Liquidated Damages

KPM No. KPM Liquidated Damages KPM - 001 Reference Table 1, General Requirements, REQ -

011. If HHSC identifies a delay in accessing IBM 24/7 help desk support portal (after following IBM’s escalation protocol, and where HHSC has received two or more Critical Situation (“CritSit”) complaints per month where HHSC has not obtained IBM responses to resolve the “CritSit”) with such resulting in degradation of HHSC system performance, Liquidated Damages may be assessed by HHSC.

$100.00 per calendar day with a total cap of not to exceed $500.00 per month for each deficiency.

For the contractual obligations subject to a KPM, the KPM will be used to gauge the Contractor’s commitment to successful performance, its willingness to stand behind its products and services during the Contract Term, as well as its confidence in its ability to perform.

In the event Contractor fails to perform or complete its obligations in a timely manner, HHSC may, in addition to the remedies set forth elsewhere in the Contract, impose remedies which include the following:

1. Compliance by the Contractor, at no cost to HHSC, with the performance improvement activities and timelines specified in written corrective action plan(s) approved by HHSC;

2. Additional or ad hoc reporting by the Contractor, at no cost to HHSC, to address performance issues;

3. Accelerated monitoring of the Contractor’s performance by HHSC, including access to the Contractor’s facilities where services supporting HHSC are primarily being performed, records, data, information systems and personnel; and

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4. Assessment of liquidated damages in accordance with Texas law.

For purposes of the KPMs, all measurement periods shall be monthly unless otherwise specified.

In addition, the term “day” refers to a calendar day, unless otherwise specified in the text. Partial days beyond the due date shall be rounded up to a whole day for the purposes of the KPM measurement. Also, an hour is not prorated i.e., a fraction of an hour means an hour.

Contractor agrees that (1) the liquidated damages and any amounts assessed in connection therewith are neither a penalty nor a forfeiture and (2) the amount of liquidated damages is a reasonable forecast of just compensation. HHSC is not required to provide the Contractor with notice and opportunity to resolve issues prior to HHSC’s assessment of liquidated damages.

Liquidated damages will not be assessed if HHSC determines that Contractor is not responsible for the delay or failure of the applicable KPM.

2.1.4 Invoicing

The Contractor shall submit an invoice to HHSC on an annual basis in conformance with the services as provided under the Contract. Each annual invoice submitted must identify the Purchase Order number, the HHSC Contract number, and the time period (i.e., year). Failure to submit required information may result in a return of the applicable invoice and delay of payment. Chapter 2251 of the Texas Government Code shall govern remittance of payment and remedies for late payment and non-payment. Contractor shall submit invoices to:

Health and Human Services Commission Attn: Invoice-HHSC Information Technology Business Operations

Health and Human Services Commission 4900 North Lamar Blvd.

Austin, TX 78751 Email: IT_Invoicing@hhs.texas.gov

Each invoice submitted must include all the above information and be in accordance with Title 34 of the TAC Part 1, Chapter 20, Subchapter F, Division 1, §20.487, Invoicing Standards, which should include, but is not limited to:

1. Contractor’s legal name;

2. State of Texas vendor number or federal tax identification number;

3. Contractor’s telephone number;

4. Invoice number;

5. HHSC Contract number;

6. Purchase Order number;

7. Description of Services provided;

mailto:IT_Invoicing@hhs.texas.gov https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=487

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8. Date(s) of service;

9. Quantity and unit-cost being billed; and

10. The name and telephone number of a person designated by Contractor to answer questions regarding the invoice.

If HHSC requests corrections to the invoice or additional information, documentation, or justification, the invoice shall be resubmitted with all corrections initialed or information necessary and changes to the date of submission or the date of resubmission.

2.2 CONTRACT AWARD, TERM, AND HISTORICAL COMPENSATION

2.2.1 Contract Award and Execution

HHSC intends to award one Contract as a result of this Solicitation. Any award is contingent upon approval of the HHSC Executive Commissioner or their designee.

If, for any reason, a Contract cannot be executed with a Respondent selected for award within 20 calendar days of HHSC’s determination to seek to contract with that Respondent, HHSC may avail itself of any option permissible under applicable law including, but not limited to, negotiate a contract with the next highest-scoring Respondent, make a partial award, or withdraw this Solicitation.

2.2.2 Contract Term

The initial term of any Contract resulting from this Solicitation will be four (4) years. HHSC, at its sole discretion, may extend the Contract for up to one (1) additional year.

Notwithstanding the limitation in the preceding paragraph and with at least 30 calendar days’ advance written notice to Contractor, at the end of the initial term or any extension period, HHSC, at its sole discretion, may extend the Contract as necessary to ensure continuity of service, for purposes of transition, or as otherwise determined by HHSC to serve the best interest of the State for up to 12 months, in one-month intervals, at the then-current contract rate or rates (if applicable) as modified during the Contract Term.

2.2.3 Historical Compensation

Historical compensation under contracts with similar scope and size to this Solicitation has been approximately $14 million per state fiscal year. Historical costs are provided for information purposes only.

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2.3 DATA USE AGREEMENT AND SECURITY PRIVACY INQUIRY

By entering into a Contract with HHSC as a result of this Solicitation, Contractor agrees to be bound by the terms of the HHS Data Use Agreement, Version 8.5, attached as Exhibit D.

Respondent must complete and return with its Solicitation Response Exhibit E, Texas HHS System-Data Use Agreement-Attachment 2, Security and Privacy Inquiry (SPI), Version 2.1.

Contractor shall ensure that all Confidential Information (as defined in Exhibit D, HHS Data Use Agreement, Version 8.5), including such information residing on back-up systems, remains within the contiguous United States. Confidential Information shall not be accessed by Contractor personnel located outside of the contiguous United States. Furthermore, Confidential Information may not be received, stored, processed, or disposed via information technology systems located outside of the contiguous United States.

2.4 NO GUARANTEE OF VOLUME, USAGE, OR COMPENSATION

HHSC makes no guarantee of volume, usage, or total compensation to be paid to any Respondent under an awarded Contract, if any, resulting from this Solicitation. Any awarded Contract is subject to appropriations and the continuing availability of funds.

HHSC reserves the right to cancel, make partial award, or decline to award a Contract under this Solicitation at any time at its sole discretion.

ARTICLE III. ADMINISTRATIVE INFORMATION

3.1 SCHEDULE OF EVENTS

EVENT DATE/TIME

Solicitation Posting Date to ESBD (Date of Release)

May 3, 2024

Pre-proposal Conference/HSP Training Attendance is Optional

May 10, 2024 at 2:00 p.m. Central Time

Deadline for Submitting Questions or Requests for Clarification

May 13, 2024 by 4:00 p.m. Central Time

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Tentative Date Responses to Questions or Requests for Clarification Posted on ESBD

May 20, 2024 by 4:00 p.m. Central Time

Deadline for Courtesy HSP Review May 17, 2024 by 2:00 p.m. Central Time

Deadline for Submission of Solicitation Responses NOTE: Solicitation Responses must be RECEIVED by HHSC by the deadline.

June 3, 2024 by 10:30 a.m. Central Time

Evaluation Period June 2024

Anticipated Notice of Award August 2024

Anticipated Contract Effective Date December 2024

Respondents must submit their Solicitation Responses to HHSC in accordance with the Deadline for Submission of Solicitation Responses, date and time indicated in this Schedule of Events or as changed via an Addendum posted to the ESBD.

NOTE: All dates are tentative and HHSC reserves the right to modify these dates at any time. At the sole discretion of HHSC, events listed in the Schedule of Events are subject to scheduling changes and cancellation. Scheduling changes or cancellation determinations made prior to the Deadline for Submission of Solicitation Responses will be published by posting an Addendum to the ESBD. After the Deadline for Submission of Solicitation Responses, if there are delays that significantly impact the anticipated award date, HHSC, at its sole discretion, may post updates regarding the anticipated award date to the Procurement Forecast on the HHS Procurement Opportunities web page. Each Respondent is responsible for checking the ESBD and Procurement Forecast for updates.

By submitting a Solicitation Response, Respondent represents and warrants that any individual submitting the Solicitation Response and any related documents on behalf of the Respondent is authorized to do so and to bind the Respondent under any Contract that may result from this Solicitation.

3.2 AMBIGUITY, CONFLICT, OR DISCREPANCY

Respondent must notify the Sole Point of Contact (Section 3.3.1) of any ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error in the Solicitation in the manner and by the Deadline for Submitting Questions or Requests for Clarification described in Section

3.3.4 (Solicitation Questions).

https://hhs.texas.gov/doing-business-hhs/contracting-hhs/procurement-opportunities https://hhs.texas.gov/doing-business-hhs/contracting-hhs/procurement-opportunities https://hhs.texas.gov/doing-business-hhs/contracting-hhs/procurement-opportunities

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Respondent submits a Solicitation Response at its own risk.

If Respondent fails to properly and timely notify the Sole Point of Contact (Section 3.3.1) of any ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error in the Solicitation, Respondent, whether awarded a Contract or not:

1. Waives any claim of error or ambiguity in the Solicitation and any resulting Contract;

2. Must not contest the interpretation by HHSC of such provision(s); and

3. Is not entitled to additional compensation, relief, or time by reason of ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error or its later correction.

3.3 INQUIRIES

3.3.1 Sole Point of Contact

All requests, questions, or other communication about this Solicitation shall be made in writing to HHSC PCS, addressed to the person listed below (Sole Point of Contact). Additionally, a phone number is provided for purposes such as instructing a potential Respondent through an IT system or website referenced in this Solicitation. Communications via telephone are not binding.

The Sole Point of Contact will authorize a secondary Sole Point of Contact in the event of their absence and, in such an event, will include the contact information for the secondary Sole Point of Contact in their automatic reply out-of-office e-mail message. Respondents seeking to contact the Sole Point of Contact should do so via e-mail in order to receive updated contact information.

Name Carole Woodard, CTCD,CTCM

Title PCS Purchaser

Address Procurement and Contracting Services Building 1100 W 49th St. MC: 2020 Austin, TX 78756

Phone 512-406-2406

Email carole.woodard@hhs.texas.gov

See also, Section 3.3.3 (Exception to Sole Point of Contact) below.

3.3.2 Prohibited Communication

Except as provided in Section 3.3.1 (Sole Point of Contact) and Section 3.3.3 (Exception to Sole Point of Contact), potential Respondents and Respondents are prohibited from any communication with HHSC regarding the Solicitation. HHSC, its representative(s), and partners

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Revision Date 09/12/2023 will not answer any questions or otherwise discuss the contents of this Solicitation with any potential Respondent or its representative(s). Attempts to ask questions by phone or in person will not be allowed or recognized as valid. Respondent shall rely only on written statements issued by or through HHSC designated staff as provided by Section 3.3 (Inquiries). This restriction does not preclude discussions between affected parties for the purposes of conducting business unrelated to this Solicitation. Failure to comply with these restrictions may result in disqualification of Respondent's Solicitation Response.

3.3.3 Exception to Sole Point of Contact

Exceptions to Section 3.3.1 are as follows:

1. Respondents with questions relating to the HUB Subcontracting Plan are permitted to direct those questions to the HUB coordinator at cheryl.bradley@hhs.texas.gov.

2. Where it is expressly directed by the Sole Point of Contact that another designated HHSC representative may speak to the Respondent, such as during contract negotiations. Respondents are required to ensure that communications have been authorized by the Sole Point of Contact before engaging in such communication. Failure to comply with this requirement may result in the disqualification of a Respondent’s Solicitation Response.

3.3.4 Solicitation Questions

HHSC will allow written questions and requests for clarification regarding this Solicitation.

Questions must be submitted by e-mail to the Sole Point of Contact (Section 3.3.1) by the Deadline for Submitting Questions or Requests for Clarification established in Section 3.1 (Schedule of Events). Responses to questions or other written requests for clarification will be consolidated and posted to the ESBD and will not be provided individually to requestors.

HHSC reserves the right to amend answers previously posted, prior to the Deadline for Submission of Solicitation Responses (Section 3.1). Amended answers will be posted on the ESBD. It is the Respondent's responsibility to check the ESBD. HHSC also reserves the right to provide a single consolidated response to all similar questions at the agency’s sole discretion.

1. All questions and requests for clarification must include the following information:

a. Solicitation number;

b. Solicitation package reference (e.g., page number, section, and exhibit or attachment), if applicable;

c. Question topic (e.g., “Schedule of Events,” or “Exhibit J, Cost Workbook”); and

d. Question for HHSC.

mailto:cheryl.bradley@hhs.texas.gov

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2. Requestor contact information below must be included in the body of the e-mail and submitted with the question(s):

a. Company name;

b. Company representative name;

c. Phone number; and

d. E-Mail address.

Questions or requests for clarification received after the Deadline for Submitting Questions or Requests for Clarification in Section 3.1 (Schedule of Events), may be reviewed by HHSC but may not be answered. Only answers to questions submitted to the Sole Point of Contact in writing, in accordance with this section, are binding.

3.4 PRE-PROPOSAL CONFERENCE/HSP TRAINING

3.4.1 Attendance

HHSC PCS will conduct a Pre-proposal Conference and HSP Training via webinar. Attendance is optional but highly recommended.

Attendees to virtual Pre-proposal Conferences/HSP Training are required to send an email to the Sole Point of Contact (Section 3.3.1) advising of participation in the Pre-proposal Conference/HSP Training. Attendees must provide their name, phone number, and name of the company they are representing regardless of whether the Pre-proposal Conference/HSP Training is in-person or virtual.

3.4.2 Conference Logistical Information

HHSC PCS will hold the Pre-proposal Conference and HSP Training via webinar on the date and time set out in Section 3.1 (Schedule of Events).

People with disabilities who wish to attend the meeting and require auxiliary aids or services should contact the Sole Point of Contact identified in Section 3.3.1 (Sole Point of Contact), at least 72 hours before the meeting in order to have reasonable accommodations made by HHSC.

Webinar Information:

https://attendee.gotowebinar.com/register/8634054033271307612

Webinar ID: 247-177-947 For Audio: 1-631-992-3221

At prompt enter passcode: 133-728-559 https://attendee.gotowebinar.com/register/8634054033271307612

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3.4.3 Questions at Pre-Proposal Conference/HSP Training

1. Reference Section 3.3.4 (Solicitation Questions) for the required format and information to be provided for submission of questions and requests for clarification.

2. During the conference, HHSC may provide responses to questions and requests for clarification, but only written responses posted by HHSC PCS as an Addendum to the Solicitation on the ESBD will be considered an official, binding update to the Solicitation.

3. HHSC reserves the right to amend, prior to the Deadline for Submission of Solicitation Responses, answers previously posted. Amended answers will be posted on the ESBD.

Notification of posting will be in accordance with Section 3.1 (Schedule of Events).

4. Conversations with HHSC program area staff before or after the Pre-proposal Conference/HSP Training are prohibited.

3.5 SOLICITATION RESPONSE COMPOSITION

3.5.1 General Information

Failure to submit all required Solicitation Response documents as specified in Section 3.6.3 (Submission Checklist) in the required format(s) may result in disqualification of the Solicitation Response without further consideration. Respondent shall prepare a Solicitation Response that clearly and concisely represents its qualifications and capabilities. Expensive bindings, colored displays, promotional materials, etc. are not necessary or desired. Respondent should focus on the instructions and requirements of the Solicitation.

3.5.2 Page Limit and Supporting Documentation

The Narrative Proposal, described in Article V, Narrative Proposal, must not exceed 40 pages in length, not including supporting documentation provided as appendices or attachments to the Narrative Proposal. The Narrative Proposal may be submitted with supporting documentation if:

1. Complete and concise responses cannot be provided within the Narrative Proposal, without referencing the supporting documentation,

2. The applicable Narrative Proposal clearly specifies the location (e.g., file, page, section, and/or paragraph) where the supporting information can be found, and

3. Such supporting documentation is submitted as part of the Solicitation Response. The

Narrative Proposal must not include other documents embedded as electronic files within the text.

The Narrative Proposal must be properly paginated, formatted as an 8 ½" x 11" page with 1-inch margins, and use a 12 point or larger font, except that a smaller font may be used for page headers and footers, footnotes, and illustrations such as tables, charts, diagrams, figures, graphs and other

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3.5.3 Discrepancies

In the event of any discrepancies or variations between copies, HHSC is under no obligation to resolve the inconsistencies and may make its scoring and selection decisions accordingly, including the decision to potentially disqualify a Solicitation Response. If Respondent is required to designate an “Original” Solicitation Response but fails to do so, HHSC, in its sole discretion, will determine the version to be used as the original or may disqualify the Solicitation Response.

If the Respondent submits a redacted Solicitation Response as the “Original,” HHSC will disqualify the Solicitation Response and it will not be evaluated. HHSC will not accept submissions after the Deadline for Submission of Solicitation Responses in the Schedule of Events (Section 3.1) to remedy discrepancies or variations in Solicitation Response submissions.

3.5.4 Exceptions

Respondents are highly encouraged, in lieu of including exceptions in their Solicitation Responses, to address all issues that might be advanced by way of exception by submitting such issues as questions or requests for clarification pursuant to Section 3.3.4 (Solicitation Questions).

Any exception included in a Solicitation Response may result in a Respondent not being awarded a Contract. If a Respondent includes exceptions in its Solicitation Response, Respondent is required to use the Exceptions Form included as Exhibit G to this Solicitation and provide all information requested on the form. Any exception that does not provide all required information in the format set forth in Exhibit G may be rejected without consideration.

No exception, nor any other term, condition, or provision in a Solicitation Response that differs, varies from, or contradicts this Solicitation will be considered to be part of any Contract resulting from this Solicitation unless expressly accepted by HHSC and made a part of the Contract in writing by HHSC.

3.5.5 Assumptions

Respondent must identify on the Assumptions Form, Exhibit H any business, economic, legal, programmatic, or practical assumptions that underlie the Respondent’s response to the Solicitation.

HHSC reserves the right to accept or reject any assumptions. All assumptions not expressly identified, accepted, and incorporated into any Contract resulting from this Solicitation are deemed rejected by HHSC.

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3.5.6 Binding Offer

A Solicitation Response should be responsive to the Solicitation as worded and without any assumption that any or all terms, conditions, or provisions of the Solicitation will be negotiated.

Furthermore, all Solicitation Responses constitute binding offers. Any Solicitation Response that includes any type of disclaimer or other statement indicating that the response does not constitute a binding offer may be disqualified.

If a Respondent’s ability to enter into a Contract is contingent upon any exception or assumption provided in accordance with Section 3.5.4 (Exceptions) or Section 3.5.5 (Assumptions), the Respondent may be disqualified from further consideration for Contract award.

3.6 SOLICITATION RESPONSE SUBMISSION AND DELIVERY

3.6.1 Deadline

Solicitation Responses must be received at the address in Section 3.6.4 (Labeling and Delivery for USB Drive Submission and Other Materials) and time-stamped by HHSC PCS no later than the date and time specified in Section 3.1 (Schedule of Events).

Solicitation Responses received after the Deadline for Submission of Solicitation Responses specified in Section 3.1 (Schedule of Events) will be rejected and not considered for Contract award.

3.6.2 Submission Option

1. Submission Option #1: Respondent shall submit two USB drives—one (1) labeled “Original Solicitation Response” and one (1) labeled “Copy”—containing the following documents:

a. Each USB drive must contain one file named “Original” that contains the Respondent’s entire Solicitation Response (except the cost proposal and HUB Subcontracting Plan) in searchable portable document format (PDF), unless otherwise specified for a particular attachment or exhibit.

b. If applicable in accordance with Section 8.1.5 (Public Information Act – Respondent Requirements Regarding Disclosure), each USB drive must contain one file named “Public Information Act Copy” that contains the Respondent’s entire Solicitation Response, including all exhibits and attachments, in searchable PDF.

c. In accordance with Section 7.1 (Cost Proposal), each USB drive must contain one file named “Cost Proposal” that contains the Respondent’s cost proposal in Excel format with active formulas (compatible with Microsoft Office 2016).

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d. In accordance with Section 6.8 (HUB Subcontracting Plan, Courtesy HSP Review), each USB drive must contain one file named “HUB Subcontracting Plan” in searchable PDF, that contains the Respondent’s HUB Subcontracting Plan and all supporting documentation.

2. Submission Option # 2: Respondent shall submit the following through the Online Bid Room utilizing the procedures in Exhibit P, HHS Online Bid Room:

a. One file named “Original” that contains the Respondent’s entire Solicitation Response (except the cost proposal and HUB Subcontracting Plan) in searchable portable document format (PDF), unless otherwise specified for a particular attachment or exhibit.

b. If applicable in accordance with Section 8.1.5 (Public Information Act – Respondent Requirements Regarding Disclosure), one file named “Public Information Act Copy” that contains the Respondent’s entire Solicitation Response, including all exhibits and attachments, in searchable PDF.

c. In accordance with Section 7.1 (Cost Proposal), one file named “Cost Proposal” that contains the Respondent’s cost proposal in Excel format with active formulas (compatible with Microsoft Office 2016).

d. In accordance with Section 6.8 (HUB Subcontracting Plan, Courtesy HSP Review), one file named “HUB Subcontracting Plan” in searchable PDF, that contains the Respondent’s HUB Subcontracting Plan and all supporting documentation.

3.6.3 Submission Checklist

Solicitation Consideration and Award Consideration Documents, reference Section 1.2 (Definitions), must be submitted by the Deadline for Submission of Solicitation Responses , reference Section 3.1 (Schedule of Events). Solicitation Consideration Documents will be reviewed as received, and Respondent will not have an opportunity to remedy missed requirements. At its sole discretion, HHSC may request some or all of the Respondents to remedy missing elements of Award Consideration Documents. Those marked “SC” are Solicitation Consideration Documents and those marked “AC” are Award Consideration Documents.

The Solicitation Response must be submitted using one of the approved methods identified in Section 3.6 (Solicitation Response Submission and Delivery). Below are the documents required to be submitted with the Solicitation Response. Where searchable PDF files are required, submission of non-searchable (image only) PDF files may result in disqualification from further consideration for Contract award.

1. Narrative Proposal and Respondent Information

a. Narrative Proposal (Section 5.1) SC ____

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b. Company Narrative (Section 6.1.1, Exhibit O)

SC ____

c. Response to Minimum Qualifications (Section 6.1.2, Exhibit O)

SC ____

d. Company Profile (Section 6.1.3 Exhibit N)

SC ____

e. Franchise Tax Information (Section 6.2) AC ____

f. References (Section 6.3, Exhibit L)

AC ____

g. Major Subcontractor Information (Section 6.4, Exhibit N)

SC ____

h.

i.

j.

HHS Solicitation Affirmations

Assurances – Non-Construction Programs Certification Regarding Lobbying

(Section 6.5, Exhibit A) (Section 6.5, Exhibit F) (Section 6.5, Exhibit I)

SC

AC

AC

k. Exceptions (if applicable) (Section 3.5.4, Exhibit G)

AC ____

l. Assumptions (if applicable) (Section 3.5.5, Exhibit H)

AC ____

m. Dun and Bradstreet Reports (Section 6.6.1) AC ____

n. Financial Statements and Financial

Solvency or Alternate Report (Section 6.6.2, Section 6.6.3)

AC ____

o.

p.

Corporate Guarantee

SPI

(Section 6.7) (Section 2.3, Exhibits D and E)

AC

AC

q. Certificate of Authority (Section 6.8) AC ____

r. Signed PCS 121,Solicitation Addendum

Acknowledgement Form(s)

AC ____

2. Cost Proposal (Section 7.1, Exhibit J)

SC ____

3. HUB Subcontracting Plan (Section 6.8 and Exhibit R)

SC ____

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3.6.4 Labeling and Delivery for USB Drive Submission and Other Materials

Respondent must deliver Solicitation Responses submitted via USB drive by one of the methods below.

Overnight/Express/Priority Mail Hand Delivery

Health and Human Services Commission ATTN: Response Coordinator

Tower Building Room 108 1100 W. 49th St., MC 2020

Austin, Texas 78756

Health and Human Services Commission ATTN: Response Coordinator

Procurement and Contracting Services Building

1100 W. 49th St., MC 2020 Austin, Texas 78756

BE ADVISED, all Solicitation Responses become the property of HHSC after submission and will not be returned to the Respondent. It is the Respondent’s responsibility to appropriately mark and deliver the Solicitation Response to HHSC PCS by the specified date. A dated shipping label, invoice of receipt from a from USPS or commercial carrier, or any other documentation in lieu of the on-site time stamp WILL NOT be accepted.

Each Respondent is solely responsible for ensuring its Solicitation Response is submitted in accordance with all Solicitation requirements, including, but not limited to, proper labeling of packages, sufficient postage or delivery fees, and ensuring timely receipt by HHSC. In no event will HHSC be responsible or liable for any delay or error in delivery. Solicitation Responses must be RECEIVED by HHSC PCS by the Deadline for Submission of Solicitation Responses identified in Section 3.1 (Schedule of Events).

Solicitation Responses submitted via USB drive by mail or hand delivery shall be placed in a sealed package. The sealed package and the USB drives shall be clearly labeled on the outside as follows:

SOLICITATION NO: HHS0014267

SOLICITATION NAME IBM Enterprise License Agreement and Maintenance Services

DEADLINE FOR SUBMISSION OF

SOLICITATION RESPONSES

June 03, 2024 by 10:30 a.m. Central Time

PURCHASER NAME: Carole Woodard, CTCD,CTCM

RESPONDENT NAME: [Respondent Name]

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It is Respondent’s sole responsibility to ensure that packaging is sufficient to prevent damage to contents. HHSC will not be responsible or liable for any damage, and damaged Solicitation Responses will not be considered at HHSC’s sole discretion.

HHSC will not be held responsible for any Solicitation Response that is mishandled prior to receipt by HHSC PCS. HHSC will not be responsible for late delivery, inappropriately identified documents, or other submission errors that may lead to disqualification or nonreceipt of the Respondent’s Solicitation Response.

3.6.5 Modifications and Withdrawals

Prior to the Deadline for Submission of Solicitation Responses in Section 3.1 (Schedule of Events), Respondent may: (1)…