ESBD_383462_1732639229652_RFP CP Audit for Posting.pdf

PUBLIC UTILITY COMMISSION OF TEXAS

REQUEST FOR PROPOSALS

TO PROVIDE MANAGEMENT AUDIT

Public Utility Commission of Texas

William B. Travis Building

1701 North Congress Avenue

Austin, Texas 78711

Closing Time and Date: December 18, 2024

10:00 a.m., Central Time

RFP Number: 473-25-00003

Project Number: 57314

NIGP Class Item:

906-27, 918-00, 918-04, 946-31, 958-00, 958-95

PUCT RFP 473-25-00003

Table of Contents

SECTION 1 – INTRODUCTION ________________________________________________ 3

SECTION 2 – DEFINITIONS __________________________________________________ 3

SECTION 3 – STATEMENT OF WORK __________________________________________ 4

SECTION 4 – ELIGIBILITY AND EVALUATION CRITERIA _______________________ 5

4.A. EEO and HUB Statement _______________________________________________ 5

4.B. Minimum Eligibility Requirements _______________________________________ 6

4.C. Evaluation Criteria_____________________________________________________ 6

4.D. Texas Vendor Preference ________________________________________________ 7

4.E. References ____________________________________________________________ 7

SECTION 5 – SCHEDULE AND PROCESS ______________________________________ 8

5.A. Anticipated Schedule ___________________________________________________ 8

5.B. PUCT Contact Person __________________________________________________ 8

5.C. Process for Asking Questions ____________________________________________ 8

5.D. Process for Submitting Proposals _________________________________________ 8

5.E. PUCT’s Standard Process for Selecting Vendors ____________________________ 9

SECTION 6 – REQUIRED COMPONENTS AND FORMAT ________________________ 10

6.A. Components _________________________________________________________ 10

6.B. Format Requirements _________________________________________________ 15

SECTION 7 – CONDITIONS __________________________________________________ 16

7.A. Irrevocable Offer _____________________________________________________ 16

7.B. Proposals are the Property of the PUCT __________________________________ 16

7.C. Public Information Act Notice __________________________________________ 16

7.D. Publicity _____________________________________________________________ 17

7.E. No Proposal Costs Reimbursed __________________________________________ 17

7.F. Contract Terms and Conditions _________________________________________ 17

7.G. Vendor Performance Tracking System ___________________________________ 17

ATTACHMENT A – PUCT’s Standard General Terms and Conditions ________________ 18

SECTION 1 – INTRODUCTION

The Public Utility Commission of Texas (PUCT) issues this Request for Proposals (RFP) to engage a Contractor to perform a management audit of CenterPoint Energy Houston Electric, LLC’s (CenterPoint) procurement activities, emergency planning, customer need analysis, and policies, procedures, and management activities associated with the lease and operation of mobile generation facilities. The Contractor must prepare a report of its findings, along with recommendations for management action and process changes, as further specified in Section 3, Statement of Work.

SECTION 2 – DEFINITIONS

As used in this RFP, the following terms have the meanings specified:

1) “Business day” means a day other than: (i) a Saturday or Sunday; (ii) a national holiday under Texas Government Code § 662.003(a); or (iii) a state holiday under Texas

Government Code § 662.003(b).

2) “Commission” means the governing body of the PUCT.

3) “Contractor” means the person or entity that contracts with the PUCT for the services contemplated by this RFP.

4) “May” means is authorized to.

5) “Parties” means the PUCT and Contractor.

6) “Party” means the PUCT or Contractor.

7) “Proposer” means a person, organization, business entity, or other entity that submitted a proposal.

8) “PUCT” means the Public Utility Commission of Texas, an agency of the state of Texas.

9) “Services” means any and all services performed and any and all goods and products delivered by Contractor as specified in the Statement of Work (“SOW”).

10) “Statement of Work” or “SOW” means the description of goods and services to be provided as specified in Section 3 of this RFP.

11) “Vendor” means a person, organization, business entity, or other entity that has been selected for or entered into a contract with a Texas state agency.

12) “Vendor Performance Tracking System” means the system the Texas Comptroller of

Public Accounts is required to provide under Section 2262.055 of the Texas Government

Code for evaluating vendor performance. The Vendor Performance Tracking System is located at: http://txsmartbuy.com/vpts.

{The remainder of this page is left intentionally blank. RFP continues on the next page.} http://txsmartbuy.com/vpts

SECTION 3 – STATEMENT OF WORK

Background. Texas Utilities Code § 14.202 authorizes the PUCT to audit the management of each public utility under the PUCT’s jurisdiction. CenterPoint Energy Houston Electric, LLC

(CenterPoint) is a PUCT-regulated transmission and distribution utility operating in Texas.

In July of 2024, CenterPoint was unable to deliver electric service to a substantial number of customers after Hurricane Beryl damaged portions of CenterPoint’s electric delivery system. Since the enactment of Texas Utilities Code § 39.918, CenterPoint has entered into multiple leases to operate temporary emergency electric energy facilities (commonly referred to as mobile generation facilities) designed to restore power to distribution-level customers during significant power outages. In spite of these lease arrangements, CenterPoint was unable to utilize a considerable portion of its leased mobile generation fleet to provide energy to customers during power outages resulting from Hurricane Beryl.

Overview. The Contractor must perform an audit of CenterPoint’s policies, procedures, and management activities associated with the lease and operation of mobile generation facilities. This audit should incorporate a review of CenterPoint’s procurement activities, emergency planning, and customer need analysis. Upon completion of the audit review, the Contractor must prepare a report of findings, along with recommendations for management action and process changes.

Without limitation, the tasks, duties, and responsibilities of the Contractor will include the following:

1. Contractor Qualifications

1.1. Minimum Contractor Knowledge and Experience. Proposers must demonstrate knowledge and experience in performing management audits for public companies.

Proposers should demonstrate expertise in compliance, risk management, policy and procedure development, and efficient use of company resources. Proposer personnel leads overseeing the work described in this Statement of Work must have at least ten years of experience in conducting management audits.

1.2. Preferred Contractor Expertise. The PUCT will give preference to Proposers who demonstrate knowledge and familiarity with laws governing rate-regulated electric utilities in Texas. Proposers should identify relevant expertise related to utility operations, PUCT rules, obligations of regulated utilities, and prudent utility management.

2. Audit Scope

2.1. Policy and Procedure Review. The Contractor must review CenterPoint policies and procedures relating to transactions with third parties for goods and services, including applicable conflict of interest policies. This work should include an analysis of

CenterPoint procurement practices generally, as well as an analysis of the implementation of those practices with respect to instances of mobile generation leasing.

2.2. Emergency Operations and Customer Needs. The Contractor must review CenterPoint’s analysis of, and planning for, customer need for mobile generation during emergency conditions. This should include an appraisal of mobile generation facility characteristics

[e.g., size, mobility, operability (including, without limitation, staffing and maintenance)] given distribution-level customer needs within CenterPoint’s service area. The Contractor must also evaluate CenterPoint’s planning for mobile generation facility operability in various weather scenarios where mobile generation is likely to be deployed.

3. Final Report to PUCT

3.1. Audit Report. The Contractor must prepare and deliver a final report of its findings, analysis, and recommendations from the audit no later than April 11, 2025. The final report must include recommendations for management action and process changes to ensure the transparent, efficient, and reliable operation of CenterPoint. The Contractor must deliver a summary report showing abbreviated contents and recommendations of the final report no later than March 21, 2025.

3.1.1. Oral Presentation at PUCT Open Meeting. The Contractor must be prepared to give an in-person, oral presentation of its final report at a PUCT open meeting to be held in April, May, or June of 2025. The date for the oral report will be determined by the PUCT.

4. Communications with the PUCT

Reporting and Routine Advising to PUCT. Upon request, the Contractor must provide status reports to the PUCT that give relevant updates related to its audit review. The Contractor must advise the PUCT of any impediment to the performance of duties in this Statement of Work at the time each impediment arises. The Contractor must advise the PUCT’s executive management team as necessary to accomplish the items in this Statement of Work.

5. Liquidated Damages.

Contractor’s failure to meet the deadlines set forth in Section 3, Statement of Work would result in damages to the PUCT that, by their nature are difficult to ascertain. Therefore, liquidated damages may be assessed, in the PUCT’s sole discretion, at the following rates. The liquidated damages are not intended to be a penalty and are solely intended by the Parties as compensation for damages.

If the Contractor fails to provide the summary report to the PUCT administrator by March 21, 2025, the Contractor will owe $10,000 per week to the PUCT for each week past the deadline. If the Contractor fails to provide the final report to the PUCT administrator by April 11, 2025, the

Contractor will owe $20,000 per week to the PUCT for each week past the deadline.

SECTION 4 – ELIGIBILITY AND EVALUATION CRITERIA

4.A. EEO and HUB Statement

The PUCT is an equal employment opportunity employer and does not discriminate on the basis of race, color, religion, sex, national origin, sexual orientation, veteran status, age, or disability in employment or in the provision of services. This commitment extends to proposers, vendors, and their employees as well.

The PUCT encourages Historically Underutilized Businesses (HUBs) to compete for this award.

4.B. Minimum Eligibility Requirements

4.B.1. To pass the initial screening criteria, Proposals must demonstrate that the Proposer has a minimum of ten (10) years of experience substantially similar to that described in Section 3, Statement of Work.

An entity or company with fewer than ten (10) years of experience as an entity is eligible to submit a proposal if each key member of the proposal team, including subcontractors, has ten (10) years of required experience.

Additionally, proposals must:

• meet all deadlines set out in this RFP;

• follow the appropriate process for submitting proposals (see Section 6 of this RFP, Required Components and Format);

• include all required components described in this RFP (see Section 6); and

• meet all format requirements set out in this RFP (see Section 6).

4.B.2. Under Texas law, vendors may be barred from participating in state contracts that are subject to Texas Government Code Chapter 2155, Subchapter B (General Purchasing

Requirements, Procedures, and Programs). TEX. GOV’T. CODE § 2155.077. If a Proposer is barred from participating in state contracts, its proposal will be disqualified and will receive no further consideration.

4.B.3. The PUCT is required to purchase goods and services that provide the best value to the state. TEX. GOV’T. CODE § 2155.074. To that end, the PUCT will review information in the statewide Vendor Performance Tracking System regarding Proposers’ past performance. Any of the following conditions may result in a Proposer being disqualified from consideration for this

RFP:

• having a score of less than a C in the Vendor Performance Tracking System;

• currently being under a corrective action plan through the Texas Comptroller of Public

Accounts;

• having repeated negative Vendor Performance Reports for the same or similar reason; or

• having purchase orders that have been cancelled in the previous 12 months for non-performance (for example, late delivery or failing to meet quality standards).

4.C. Evaluation Criteria

The PUCT will make the selection and award on the basis of the Proposer’s demonstrated knowledge, competence, and qualifications to provide the services described in Section 3, Statement of Work. A description of the categories under which each proposal will be judged, and the percentage of weight given to each category are as follows:

• Proposal Substance – 40%

➢ Proposal demonstrates a clear understanding of the objectives, as described in Section

3, Statement of Work.

➢ Proposed approach is both thorough and practical.

➢ Proposed approach for meeting objectives is desirable.

➢ Conditions included in the proposal are acceptable.

➢ Consideration will be given to executable designs, supported by industry experience.

• Competence and Knowledge – 40%

➢ Competence and experience are demonstrated by the qualifications described in the proposal.

➢ Management structure is well-suited to the objectives described in Section 3, Statement of Work.

➢ Assigned staffing for prime and subcontractors is desirable to meet the objectives described in Section 3, Statement of Work.

➢ The Proposer has the capacity and financial resources to perform the contract and meet deadlines without delay or interference.

➢ The proposal demonstrates the team’s qualifications and experience, drawing on lessons learned and best practices.

➢ Assigned staffing for prime and subcontractors is desirable to meet the objectives described in Section 3, Statement of Work.

➢ Proposer’s prior experience in providing similar audit services to clients, including reference checks as applicable, indicates competence and ability to deliver work as requested, within budget, and without adverse effects to client/client’s reputation.

• Proposed Compensation – 20%

4.D. Texas Vendor Preference

All other factors being equal, preference will be given to a Proposer who meets one or more of the following criteria:

• Proposer is incorporated in Texas;

• Proposer’s principal place of business is in Texas; or

• Proposer has an established physical presence in Texas.

Proposers who may qualify for the Texas Vendor Preference should provide information establishing the applicable criteria as part of the proposal package.

4.E. References

The PUCT may check references as part of the evaluation process. This is a pass/fail criteria and may be conducted at any time between receipt of a proposal and acceptance or rejection of a proposal. Information gained through reference checks can be used as grounds for disqualification of a proposal if the information casts doubt upon the ability of the Proposer to successfully meet the objectives of the RFP. However, any information obtained through a reference check that is discriminatory on the basis of race, color, religion, sex, national origin, sexual orientation, veteran status, age, or disability will not be considered.

SECTION 5 – SCHEDULE AND PROCESS

5.A. Anticipated Schedule

Disclaimer: Dates are subject to change at the PUCT’s discretion. Changes to Proposer deadlines will be posted on the Electronic State Business Daily (ESBD) website and the PUCT’s

Procurement webpage, along with any other RFP modifications and addenda. It is the Proposer’s responsibility to periodically check the websites prior to submitting a proposal. A Proposer’s failure to review additional information posted on the ESBD and PUCT websites will not release the Proposer from requirements described in those postings and could result in disqualification of a proposal or additional costs to meet the requirements of the contract should the Proposer be selected for the contract.

PUCT Procurement Webpage: http://www.puc.texas.gov/agency/about/procurement/Default.aspx

ESBD Website: https://www.txsmartbuy.com/esbd

Event Anticipated Date

RFP Release November 26, 2024

Last day to submit written questions regarding the RFP November 29, 2024, 12:00 pm CT

Deadline for submission of proposals December 18, 2024, 10:00 am CT

Post-proposal interviews or presentations, if required December 23 or 27, 2024

Staff recommendation for selection December 31, 2024

Selection approved December 31, 2024

Contract negotiations January 2025

Contract period begins Upon contract execution

5.B. PUCT Contact Person

Jay Stone, CTCD, CTCM, is the only permitted PUCT point of contact regarding this RFP. Contact or attempted contact with other PUCT employees, including commissioners and their staffs, may result in a Proposer’s immediate disqualification. Proposers will be notified if circumstances require a designated substitute contact for this RFP.

5.C. Process for Asking Questions

The PUCT will only accept written questions and requests for clarification. Requests must be sent by email to RFPCorrespondence@puc.texas.gov, attention: Jay Stone, CTCD, CTCM. Inquiries and comments must reference RFP No. 473-25-00003.

The PUCT aims to answer all questions within two business days after receipt. Answers to all questions will be provided through an addendum posted on the ESBD and agency procurement websites.

5.D. Process for Submitting Proposals

5.D.1. Proposers must submit their proposals by email to RFPCorrespondence@puc.texas.gov before the stated closing date and time. Proposals will not be considered if received in the

RFPCorrespondence@puc.texas.gov email inbox after 10:00 am, Central Time, on December 18, 2024. All required information must be provided at that time. Supplements will only be allowed if information is requested by the PUCT after the closing date of the RFP.

http://www.puc.texas.gov/agency/about/procurement/Default.aspx https://www.txsmartbuy.com/esbd mailto:RFPCorrespondence@puc.texas.gov mailto:RFPCorrespondence@puc.texas.gov mailto:RFPCorrespondence@puc.texas.gov

Jay Stone, CTCD, CTCM, or his designated substitute will file the sealed proposals confidentially in Project Number 57314 with the PUCT’s Central Records Division.

5.D.2. Confidential filing is required because this RFP is conducted using a sealed bid process.

Confidential filing does not guarantee confidentiality after the RFP has ended and a contract has been executed. Any portion of the proposal considered to be confidential after the RFP has been cancelled or a contract has been awarded (for example, trade secrets) must be marked with the word, “CONFIDENTIAL” in all-caps and bold on each page considered to contain confidential information.

5.D.3. Proposers are advised to seek legal counsel regarding the best way to protect any trade secrets or other proprietary information.

5.D.4. For more information about how the PUCT will respond to PIA requests relating to this

RFP, please see Section 7.C. of this RFP, Public Information Act.

5.E. PUCT’s Standard Process for Selecting Vendors

5.E.1. The PUCT will assemble an evaluation team that will begin proposal evaluation as soon as practicable after the submission deadline. Evaluation team members will score each proposal individually based on the factors of Proposal Substance and Competence and Knowledge, described under Section 4.C. of this RFP, Evaluation Criteria. Maximum point values will be assigned to each scoring factor according to the percentage of weight given to that factor, and evaluators will assign a point value up to the maximum allowed for each factor. The purchaser will calculate scoring for compensation.

The compensation score will be calculated using the following formula:

Compensation Score = (Lowest Price / Price of Response Being Evaluated) multiplied by the

Maximum Number of Available Points for Compensation. Evaluation team members will not have access to compensation information while they are reviewing and scoring the proposals.

5.E.2. After individual scoring, the evaluation team will email their scoring sheets to the purchaser. The purchaser will review the individual scoring sheets and compile a summary scoring sheet combining all evaluation team scoring and including the compensation scoring to calculate overall scores.

5.E.3. After overall scores are calculated, the evaluation team, with guidance from the purchaser, will then take one of the following actions: recommend selection of a specific Proposer, gather more information before selecting a specific Proposer, or recommend that the RFP be withdrawn or reposted.

5.E.4. If the evaluation team needs more information to make a decision, the PUCT may request any of the following from one or more Proposers: additional information or clarification, an interview, an oral presentation, or a best and final offer. Additional information, clarification, interviews, oral presentations, or best and final offers will be used to re-score proposals, based on the same criteria used to score the initial proposals, unless different criteria is specified by the purchaser when the additional information is requested.

5.E.5. The PUCT may require selected Proposers to participate in conference calls, attend meetings in Austin, Texas, give presentations, or participate in all these activities to provide additional information about their proposals. Any cost associated with any such call, meeting, or presentation will be borne solely by the Proposer.

5.E.6. If clarification, presentations, or best and final offers are requested, the evaluation team may request the clarification, presentations, or best and final offers from the top-ranked Proposer or Proposers only, or all of the Proposers, at the discretion of the evaluation team.

5.E.7. Final recommendations will be presented to the Executive Director of the PUCT. The

Executive Director may do one of the following: approve the recommended selection in whole or in part, disapprove the recommendation, or defer action on the selection.

5.E.8. The PUCT will begin contract negotiations shortly after the Executive Director approves a recommendation to select a specific Proposer. The PUCT may negotiate any portion of any proposal, including: the proposed fee, a final schedule for performance to be incorporated into the contract, and any terms of the contract.

5.E.9. The PUCT will notify each Proposer of the final action taken upon execution of the contract with the selected Proposer.

5.E.10. No questions about the status of the proposals will be answered while proposals are under evaluation.

5.E.11. The PUCT may reject any and all proposals, amend this RFP, or cancel this RFP at any time. After the proposal due date, the PUCT will only notify Proposers who submitted a proposal prior to the proposal submission deadline of amendments to the RFP.

SECTION 6 – REQUIRED COMPONENTS AND FORMAT

6.A. Components

Proposals must include all required attachments and certifications. The PUCT will not accept attachments or certifications submitted after the proposal deadline. Proposals that do not include all required information will be considered non-responsive and will be disqualified.

Proposals must include the contents described in 6.A.1 through 6.A.10 with each section clearly defined on a table of contents page.

6.A.1. Statement of the Requirements

In this section, each Proposer must succinctly state its understanding of the RFP’s requirements and describe how it would perform the tasks described in Section 3, Statement of Work.

6.A.2. Competence and Knowledge

Each Proposer must provide a detailed work plan to demonstrate how it intends to fulfill the requirements identified in Section 3, Statement of Work. The proposal must include an organizational chart identifying functions and reporting relationships of the personnel who will be assigned to this work. The Proposer should also describe any prior experience Proposer’s organization has in providing similar services.

6.A.3. Qualifications

For each person a Proposer identifies to perform the work described in this RFP, the Proposer must provide a detailed resume that describes the services they would perform, their qualifications, and their experience.

6.A.4. Compensation

Each Proposer must propose pricing to provide the services identified in Section 3, Statement of

Work. Compensation for the services identified in Section 3, Statement of Work must be proposed as a firm fixed price. Proposers may also include alternative pricing structures, such as hourly rates, for consideration, but the proposal must include detailed information that establishes the basis for each price proposed. If alternative pricing structures are included, the proposal must still include a firm fixed price and detailed information establishing its basis. Unless otherwise approved in writing by the PUCT, payments will be made based upon the invoicing and payment terms of the resulting contract. The PUCT will not reimburse any out-of-pocket expenses or expenses not contemplated at the time of contract execution. Proposer must demonstrate how elements of the price correspond to elements of the proposed work plan.

6.A.5. References

Each Proposer must provide at least three references. Proposers must include a phone number and email address for each reference. The PUCT prefers references from clients for whom the Proposer has performed similar work, including other state commissions or boards. Proposers must not use the PUCT or any individuals employed by the PUCT as a reference.

6.A.6. Conflicts Statement

Proposers must be neutral and impartial. No entity that has a direct interest in the PUCT’s regulation, other than as a consumer of electric, telecommunication, water, or sewer service in the

State of Texas, may submit a proposal. Proposers must not have a direct financial interest in the provision of electric, telephone, water, or sewer service in the state of Texas, nor in the lease, sale, installation, or operation of on-site electric generation or battery storage equipment.

Proposers having a conflict of interest, as determined by the PUCT, will not be eligible for contract award. Proposers may also be disqualified if there are facts that would create an appearance of impropriety, even if no actual conflict exists.

The PUCT will determine whether a conflict of interest or an appearance of impropriety exists from the perspective of a reasonable person uninvolved in the matters covered by the resulting contract. The PUCT is the sole arbiter of whether a conflict or an appearance of impropriety exists.

The requirements for the conflicts statement are as follows:

• It must be signed and notarized by the highest-ranking officer of Proposer’s entity having responsibility for vetting corporate conflicts of interest.

• It must identify any personal or business relationships of Proposers, including all employees and subcontractors of Proposers with any electric, telecommunications, water, or sewer utility, or any utility affiliate operating in Texas; any entity having a pending application at the PUCT to enter the Texas retail electric market, telecommunications market, water utility market, or sewer utility market; and any entity likely to have a direct interest in any of the loan or grant programs administered by the PUCT. It must identify the extent, nature, and time aspects of those relationships.

• If a Proposer does not have any known or potential conflict of interest or appearance of impropriety, the conflicts statement must include a statement that there is no known or potential conflict of interest or appearance of impropriety. Failure to provide either a statement describing potential conflicts of interest or appearances of impropriety or a statement that no potential conflict or appearance of impropriety exists will automatically disqualify the Proposer.

• The conflicts statement must address how the Proposer intends to address any known conflicts of interest or appearance of impropriety.

• The conflicts statement must address how the Proposer intends to ensure that no interest may arise as a result of its activities or those of its parent, affiliate, or other related entity that will conflict with the Proposer’s duty should it be selected to provide the services described in Section 3, Statement of Work.

• The conflicts statement must identify a Proposer’s lobbyists who are registered or required to register with the Texas Ethics Commission and their compensation. The conflicts statement must also describe any involvement the Proposer’s lobbyists will have in connection with this engagement or electric utility, telecommunication utility, water utility, or sewer utility legislation or policy.

• The conflicts statement must identify any owner, executive, board member, employee, or subcontractor of Proposer who has been employed by the PUCT or another state agency in

Texas fewer than four years ago. If any individual is identified under this provision, the conflicts statement must disclose: 1) the former PUCT or state agency employee’s name and current position with Proposer; 2) the name of the state agency; 3) the nature of the previous employment with the state agency; and 4) the dates the employment ended with the state agency and began with Proposer. The PUCT is restricted in its ability to enter into contracts with individuals and entities that employ these individuals under some circumstances. See Texas Government Code § 669.003.

• The conflicts statement must certify either that the Proposer does not employ an individual who has been employed by the PUCT or another agency of the State of Texas at any time during the two years preceding the submission of the proposal or that it has disclosed in its proposal the following: (i) the nature of the previous employment with the PUCT or the other agency; (ii) the date the employment was terminated; and (iii) the annual rate of compensation for the employment at the time of its termination. The PUCT is restricted in its ability to enter into contracts with individuals and entities that employ certain individuals under some circumstances. See Texas Government Code §§ 2254.033 and

2252.901.

• If the circumstances described by a Proposer change or additional information is obtained subsequent to the submission of Proposals, the Proposer must supplement its conflicts statement as soon as reasonably possible upon learning of any change to their statement. If a supplement to the conflicts statement is required after the deadline for submission of proposals, the supplement is exempt from the requirement that all proposal documents must be submitted before the deadline in order for the proposal to be considered.

• The PUCT encourages Proposers to provide complete disclosure of any matters that might be considered a conflict of interest or appearance of impropriety. The PUCT may consider completeness of disclosure in evaluating whether a conflict of interest or an appearance of impropriety exists.

6.A.7. Historically Underutilized Business (HUB) Certification and HUB Subcontracting Plan

(HSP)

Any Proposer that is HUB certified by the Statewide Procurement Division (SPD) of the

Comptroller of Public Accounts (CPA) or one of its predecessors must submit a copy of its HUB certificate.

Additionally, the PUCT has determined that subcontracting opportunities may be available under this contract. Therefore, all Proposers, including State of Texas certified HUBs, must complete and submit a State of Texas HSP with their proposal if the total dollar amount of the proposal response is $100,000 or more.

Proposers can find HSP forms and instructions on the Texas CPA website at:

https://comptroller.texas.gov/purchasing/vendor/hub/forms.php

Responses that do not include a completed HSP will be rejected as required by Texas Government

Code § 2161.252(b).

6.A.8. Certifications

Each proposal must contain a signed statement with the following certifications:

• The Proposer has made a good faith effort to ensure all statements and information

Proposer submitted in response to this RFP are current, complete, and accurate. The

Proposer represents and warrants that all statements and information prepared and submitted in this document are current, complete, true, and accurate. Submitting a proposal with a false statement or making material misrepresentations during the performance of a contract is a material breach of contract and may void the submitted response and any resulting contract.

• The Proposer has not given nor offered to give, and does not intend to give at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant in connection with this proposal.

• The Proposer is not currently delinquent in the payment of any franchise tax owed to the

State of Texas.

• The Proposer, the firm, corporation, partnership, institution, or other legal entity represented by the Proposer, and anyone acting for such a firm, corporation, partnership, institution, or other legal entity, have not, in connection with this RFP:

o Violated the antitrust laws of this state or federal antitrust laws;

https://comptroller.texas.gov/purchasing/vendor/hub/forms.php o Communicated directly or indirectly the bid made to any competitor or other person engaged in such line of business; or o Otherwise violated 15 U.S.C. § 1, et. seq., or Texas Business and Commerce Code

§ 15.01, et.seq,

• Under Texas Government Code § 2155.004, the Proposer certifies that the individual or business entity named in this proposal is not ineligible to receive the specified contract and acknowledges that this contract may be terminated and payment withheld if this certification is inaccurate. [A Proposer is ineligible to receive a contract award if the

Proposer is a person who received compensation from the agency to participate in preparing the specifications or request for proposals on which the bid or contract is based.

See Texas Government Code § 2155.004(a)].

• The Proposer is in compliance with Texas Government Code § 669.003, relating to contracting with the current or former executive head of a state agency.

• Under Texas Government Code §§ 2155.006 and 2261.053, the Proposer certifies that the individual or business entity named in this proposal is not ineligible to receive the specified contract and acknowledges that any contract may be terminated and payment withheld if this certification is inaccurate. (A proposer is ineligible to receive a contract award if the

Proposer has violated certain laws or been subject to certain penalties in connection with hurricane relief, recovery, or reconstruction efforts. See Texas Government Code §§

2155.006 and 2261.053.)

• Under Texas Family Code § 231.006, the Proposer certifies that the individual or business entity named in this proposal is not ineligible to receive payment under the proposed contract and acknowledges that any contract resulting from this proposal may be terminated and payment may be withheld if this certification is inaccurate. (A child support obligor who is more than 30 days delinquent in paying child support, or a business entity in which the obligor is a sole proprietor, partner, shareholder, or owner with an ownership interest of at least 25 percent, is not eligible to receive payments from state funds under a contract to provide property, materials, or services. See Texas Family Code § 231.006(a).)

• If a Proposer includes a Texas address in its proposal, the Proposer must certify whether or not it qualifies as a Texas Bidder, as defined in Section 2155.444(c) of the Texas

Government Code.

• Proposer represents and warrants that it is not aware of any court or government agency actions, proceedings or investigations pending or threatened against Proposer or any of the individuals or entities included in the response within the five calendar years immediately preceding the submission of the proposal that would or could impair Contractor’s performance under the contract, relate to the solicited or similar goods or services, or otherwise be relevant to the PUCT’s consideration of the proposal. If Proposer is unable to make the preceding representation and warranty, then Proposer instead represents and warrants that it has included as a detailed attachment in its proposal a complete disclosure of any such court or governmental agency actions, proceedings or investigations. In addition, Proposer represents and warrants that it will notify the PUCT in writing within five business days of any changes to the representations or warranties in this clause and understands that failure to timely update the PUCT may result in the Proposer’s disqualification at the PUCT’s sole discretion, or if during the performance of the contract, will constitute a breach of contract and may result in immediate termination of the contract for cause at the PUCT’s sole discretion.

• Pursuant to Government Code § 2275.0102, Proposer certifies that neither it nor its parent company, nor any affliate of Contractor or its parent company, is: (i) majority owned or controlled by citizens or governmental entities of China, Iran, North Korea, Russia, or any other country designated by the Governor under Government Code § 2275.0103; or (ii) headquartered in any of those countries.

6.A.9. Evidence of Financial Capability

Proposer must provide evidence of financial capability. The preferred evidence of financial capability is an audited financial statement if Proposer has a current audited financial statement available or if it is practicable to obtain one for the proposal. If no audited financial statement is available, Proposer must demonstrate its financial capability in whatever manner it deems appropriate. Evidence of financial capability will be considered in evaluating the competence of the Proposer.

6.A.10. Other Required Items

• Any Proposer incorporated in Texas must include a copy of its current franchise tax

Certificate of Good Standing, issued by the Texas State Comptroller’s Office, and the corporation’s charter number, issued by the Texas Secretary of State’s Office.

• Each Proposer must provide its 9-digit Federal Employer’s Identification Number (EIN) or its 5-digit State of Texas Vendor’s Identification Number (VIN).

• Each Proposer must provide the name and social security number of each of the following, as applicable: an individual or sole proprietor; or each partner, shareholder, or owner with an ownership interest of at least 25 percent of the business entity submitting the proposal.

Proposers may decline to provide social security numbers at the time of submission but will be required to provide the information before the contract is executed.

FEDERAL PRIVACY ACT NOTICE: This notice is given pursuant to the Federal Privacy

Act. Disclosure of each applicable SSN is required under Texas Family Code §§ 231.006(c) and 231.302(c)(2). The SSN will be used to identify persons that may owe child support. The

SSN will be kept confidential to the fullest extent allowed under Texas Family Code §

231.302(e).

6.B. Format Requirements

6.B.1. Information Sheet – The first page of the proposal submission must be an information sheet that clearly states: the name of the Proposer, the name, address, telephone number, and email address of the Proposer’s point of contact; the project number; and the RFP title and number. The information sheet will be the only portion of the proposal that is not filed under seal. Information sheets must be filed publicly in Project No. 57314.

6.B.2 Copies and Price Information – Proposers must submit four versions of their proposals: one

PDF and one Word version with the compensation component, and one PDF and one Word version without the compensation component. The PDF copy with the compensation component must be clearly marked “Original” and include all required signatures and notarized statements.

Price information must be excluded from one PDF and one Word version. This requirement is to allow the evaluation team to review proposals for the evaluation factors of Proposal Substance and

Competence and Knowledge only. Each proposal will separately be given a score for pricing and that score will be applied to the scoring matrix to ensure that price does not inadvertently influence the evaluation of the other factors.

The copies of the proposal must be identical to the original except for the omission or redaction of the price information and the Word rather than PDF file format.

6.B.3. Proposers are prohibited from using the Texas State Seal or the PUCT Seal in or on the proposal.

6.B.4. Proposals must not contain any extrinsic items, such as promotional items or other things not contemplated in this RFP.

6.B.5. Page Limit – Proposals must be limited to 50 pages, including all attachments and certifications, but excluding financial capability submittal, writing sample (if required), or resumes. The PUCT may reject any proposals longer than 50 pages without review. In any case, evaluation team members will not be provided any pages past the 50th page.

SECTION 7 – CONDITIONS

7.A. Irrevocable Offer

Proposals may be withdrawn in writing before the deadline for receipt of proposals. After the deadline, a proposal becomes an irrevocable offer to provide the services described in Section 3, Statement of Work, with the terms and conditions specified in Attachment A at the price proposed, for the shorter of: a period of 90 days from the RFP closing date or until a contract resulting from this RFP is signed. The PUCT will not return withdrawn proposals.

7.B. Proposals are the Property of the PUCT

All proposals and copies of proposals, as well as any best and final offer, and any records provided to the PUCT by the Proposer associated with the evaluation of the proposal, will become the property of the PUCT after receipt and will be retained in accordance with the PUCT’s records retention schedule.

7.C. Public Information Act Notice

Following the award of a contract, all proposals are public information and subject to release. If the PUCT receives a request for any information submitted to the PUCT in connection with this

RFP, the PUCT will follow the requirements of the Texas Public Information Act (Texas

Government Code Chapter 552). This includes notifying Proposers and the Office of the Attorney

General if information that the PUCT knows Proposer considers to be confidential is requested under the Texas Public Information Act. The PUCT assumes no obligation to assert legal arguments on behalf of a Proposer. The PUCT may release portions of proposals and other information provided by a Proposer without notifying the Proposer if the information is not conspicuously marked “confidential” on each page.

A copy of the contract resulting from this RFP will be posted on the PUCT’s public website.

Information in PUCT contracts is public information unless it is made confidential by law. See

Texas Government Code § 552.022(a)(3).

7.D. Publicity

Proposers are prohibited from making any public disclosures or news releases pertaining to this

RFP, any resulting contract, or any results or findings based on information provided or obtained to fulfill the requirements of this RFP or resulting contract. This prohibition may only be waived by prior written approval of the PUCT for the specific disclosure or news release.

7.E. No Proposal Costs Reimbursed

Neither the PUCT nor the State of Texas will reimburse any Proposer for any costs related to:

preparing a response to this RFP, preparing a best and final offer, providing additional information requested as part of the evaluation of proposals, or making any presentation requested as part of the evaluation of proposals.

7.F. Contract Terms and Conditions

Any contract resulting from this RFP will use the standard general terms and conditions found in

Attachment A to this RFP unless changes are negotiated in advance. Many of the terms and conditions are required by law, and the PUCT will not negotiate when a term or condition is required by law. Proposers must include any requested changes to the terms and conditions in their proposals.

7.G. Vendor Performance Tracking System

At the end of any contract resulting from this RFP, the PUCT will input required information into the Vendor Performance Tracking System regarding the contractor’s performance and whether the contractor satisfied the best value standard for this contract. This information is public and other state agencies seeking goods or services are required, under most circumstances, to use the information in the Vendor Performance Tracking System to determine whether or not a particular vendor will meet the best value standard for the purchase of the goods or services.

Attachment A is incorporated into this RFP by reference for all purposes.

ATTACHMENT A – PUCT’s Standard General Terms and Conditions Article 1. DEFINITIONS

When used in this contract, the following terms have the following meanings:

1) “Business day” means a day other than: (i) a Saturday or Sunday; (ii) a national holiday under Texas Government Code § 662.003(a); or (iii) a state holiday under Texas

Government Code § 662.003(b).

2) “Commission” means the governing body of the PUCT.

3) “Contractor” means the person or entity that contracts with the PUCT for the services contemplated by this RFP.

4) “May” means is authorized to.

5) “Parties” means the PUCT and Contractor.

6) “Party” means the PUCT or Contractor.

7) “Proposer” means a person, organization, business entity, or other entity that submitted a proposal.

8) “PUCT” means the Public Utility Commission of Texas, an agency of the state of Texas.

9) “Services” means any and all services performed and any and all goods and products delivered by Contractor as specified in the Statement of Work (“SOW”).

10) “Statement of Work” or “SOW” means the description of goods and services to be provided as specified in Section 3 of this RFP.

11) “Vendor” means a person, organization, business entity, or other entity that has been selected for or entered into a contract with a Texas state agency.

12) “Vendor Performance Tracking System” means the system the Texas Comptroller of

Public Accounts is required to provide under § 2262.055, Texas Government Code, for evaluating vendor performance. The Vendor Performance Tracking System is located at:

http://txsmartbuy.com/vpts.

Article 2. COMPENSATION

2.1 Compensation. Contractor agrees to provide all Services (including labor, expenses, and any other services) described in the Statement of Work, as follows: [PUCT will insert summary of payment terms in final contract]. Contractor understands that the PUCT is not responsible for payment of any costs or expenses exceeding this amount.

If Contractor believes that changes in the scope of Services to be performed will require Contractor to increase its fee, it must request the PUCT’s written authorization to increase its fee. Contractor must document the changes in the scope of Services and why they will require additional effort.

The PUCT must approve the increase in fee by written amendment to this contract before

Contractor performs any Services or may invoice the increased fee.

2.2 Payment Process. Contractor must submit an invoice to the PUCT contract administrator no later than the final day of the month after the month that all the Services have been performed and completed. The invoice must contain the name of the person performing Services and a brief description of work performed, including a description of any applicable deadlines for deliverables during the period invoiced the date those deliverables were provided to the PUCT. No payment will be made for administrative overhead, overtime, or other charges not directly attributable to the performance of this contract.

http://txsmartbuy.com/vpts

On the statement or invoice, Contractor must include a statement that the invoice accurately describes the Services performed and the Services were performed in compliance with the contract.

The statement or invoice must include the vendor identification number issued by the Texas

Comptroller or Contractor’s federal taxpayer identification number, a description of the Services provided, and the name and division of the PUCT contract administrator.

Contractor must submit the invoice to the PUCT as follows:

By email to: Payables@puc.texas.gov

Or by mail to: Accounts Payable

Public Utility Commission of Texas

P.O. Box 13326

Austin, TX 78711-3326

The PUCT will review the invoice and any other relevant documentation to ensure the Services were performed in compliance with the contract. If Services were not performed in compliance with the contract, PUCT will notify contractor of any deductions from the payment approved.

Upon approval of the invoice, the PUCT will instruct the Trust Company to pay the invoice.

2.3 Release of Claims. Contractor’s acceptance of payment releases the PUCT of all claims for compensation owed in connection with this contract.

2.4 Refund. Contractor will promptly refund or credit within thirty (30) calendar days any funds erroneously paid by the PUCT which are not expressly authorized under the contract.

2.5 Payments Made to Subcontractors. Contractor must pay any subcontractor hereunder the appropriate share of payments received not later than the 10th day after the date Contractor receives the payment. The subcontractor’s payment is overdue on the 11th day after the date

Contractor receives the payment. The PUCT must approve Contractor’s use of any subcontractor before Contractor engages the subcontractor (see Section 5.1 of this contract).

2.6 Records. Contractor and its subcontractors, if any, must maintain records and books of account relating to Services provided under this contract.