ESBD_385003_1734119378331_454-24-0120-28587-TS TexasSure.pdf

Texas Department of Insurance

Request for Offers

TexasSure Vehicle Financial Responsibility Verification System

RFO No. 454-24-0102-28587-TS

NIGP Class/Item Codes: 920-02; 920-13

December 13, 2024

Anticipated Schedule of Events

December 13, 2024 Issuance of Solicitation

January 8, 2025, 3:00 p.m., Central time Deadline for Submission of Questions

January 16, 2025 Release of Official Responses to Questions

(or as soon thereafter as practical)

January 17, 2025 Deadline to Submit HSP for Courtesy Review

January 20, 2025 Deadline for HSP HUB Outreach Notification

January 31, 2025, 3:00 p.m., Central time Deadlines for Submission of Proposals

Late Proposals will not be considered

February 10-14, 2025 Presentations by Top-Ranked Respondents

(if presentations requested)

May 1, 2025 Anticipated Award Date

(or as soon thereafter as practical)

NOTE: Any Addendum that adds new language or replaces any language within this solicitation controls over the original version. It is the responsibility of all prospective Respondents to routinely check the Electronic State Business Daily (ESBD) during the posting period for this solicitation for any Addenda that may be posted. TDI will not make any other announcements regarding Addenda after the publication of this solicitation.

RFO No. 454-24-0102-28587-TS

Table of Contents I. Summary

II. Specifications

A. Introduction

B. Background

C. Qualifications

D. Definitions and Acronyms

E. Roles and Responsibilities

F. Scope of Work

G. Texas Office of the Attorney General, Child Support Division

H. Optional Services

I. Access to TexasSure Data by Courts

J. Maintenance and Support

K. TDI’s Technical Environment

L. Security

M. Other Contract Requirements

N. Performance and Service Specifications

O. Schedule of Deliverables and Milestones

III. General Proposal Information

A. Contract Resulting from this Solicitation

B. Contract Term

C. Copyrighted Proposals

D. Unacceptable Terms in Respondent’s Proposal

E. Authority to Bind

F. Protest Procedures

G. Texas Public Information Act and Exchange or Creation of Information

H. HUB Subcontracting Plan Information

I. Respondent Documents

J. Respondent Exceptions and Assumptions

K. Service Additions or Deletions, Change Control

L. Acceptance Criteria

M. Payments and Invoice Instructions

IV. Proposal Submission Requirements

A. Time for Submission and TDI’s Email Address

B. Respondent Identification

C. No Alterations or Withdrawals of Proposal after Deadline

D. Tie Proposals

E. Pre-contract Costs

F. TDI’s Tax Exemption

G. Attachments

H. Evaluation Process

I. Proposal Content and Format

V. Mandatory Price Sheet

A. Schedule 1 - Schedule of Standard Fees

B. Schedule 2 – Requested Enhancements

VI. Terms and Conditions

A. Clauses Required by the Texas Procurement and Contract Management Guide

B. Additional Texas Procurement and Contract Management Guide Provisions

C. Additional Provisions Required by TDI

VII. Execution of Proposal

VIII. Conflict of Interest/Disclosure Statement

IX. Certification Regarding Public Nature of the Proposal

Appendix A: Sample Contract

Appendix B: Tips for a Successful Submission

Appendix C: Overview of the Texas Department of Insurance and Automobile Insurance Regulation

Appendix D: Overview of the Texas Department of Public Safety Highway Patrol Division

Appendix E: Overview of the Texas Department of Motor Vehicles, Vehicle Titles and Registration Division

Appendix F: Overview of the Texas Department of Information Resources (DIR)

Appendix G: TexasSure Usage and Query Volumes

Appendix H: Insurance Policy Reporting Formats

Appendix I: TxDMV File Layout

Appendix J: TxDMV Registration Class and Title Type Data

Appendix K: DPS Self-Insurance and Financial Responsibility of Certifications

Appendix L: Applicable Laws, Statutes, Rules, and Rulings; Computer and Security Industry Standards

Attachment 1 – Solution Questionnaire

I. Summary

1. Type of Solicitation Request for Offers (RFO)

2. Issuing Office

Texas Department of Insurance

Purchasing and Contract Administration

PO BOX 12030

Austin, TX 78711-2030

3. Responses to Solicitation Emailed Competitive Proposals

4. HSP Courtesy Review January 17, 2025

Submitted to:

Contracts@tdi.texas.gov and HUB@tdi.texas.gov

5. Deadline for Proposals Emailed to Contracts@tdi.texas.gov no later than:

January 31, 2025, 3:00 p.m., Central time

6. Initial Contract Term Date of Contract Execution – August 31, 2027

7. TDI Optional Terms Three (3) one (1) year renewals

8. TDI Contact Person for this

Solicitation

Tricia Schulze contracts@tdi.texas.gov

512-676-6153

9. Proposals Submitted by Email Submit to Contracts@tdi.texas.gov

TDI will use the date and time stamp on TDI’s Microsoft

Outlook mailbox to confirm receipt by the deadline.

10. Proposals Submitted by Mail Not Accepted

11. Proposals Submitted by Fax Not Accepted

12. Pre-Proposal Conference January 7, 2025, 2:00 PM. Respondents must confirm their attendance by submitting an email to contracts@tdi.texas.gov no later than January 3, 2025, to receive the link for the virtual Pre-Proposal Conference.

13. Pre-Proposal Inspection Not Applicable

14. Letters of Intent to Submit a

Proposal

Not Applicable mailto:contracts@tdi.texas.gov mailto:Contracts@tdi.texas.gov

15. Solicitation Addenda Notices of changes to items directly impacting the original solicitation or Proposal process will be posted on the Electronic State Business Daily (ESBD) located at www.txsmartbuy.com/esbd. TDI will post any amendment to this solicitation on the ESBD as a solicitation Addendum. It is the responsibility of an interested party to periodically check the ESBD for updates to the solicitation prior to submitting a

Proposal. Each Respondent is solely responsible for verifying TDI’s receipt of its questions, if applicable, and

Proposal by the deadlines specified in this solicitation.

16. Questions and Answers Questions regarding this solicitation must be in writing and must be submitted to the TDI Contact Person specified in item 9 no later than January 8, 2025, 3:00 p.m., Central time. Telephone inquiries will not be accepted. Questions must be submitted by email to the email address specified in Item 9. TDI intends to post on the ESBD answers to those questions received by the deadline on January 16, 2025, or as soon thereafter as practical.

17. Respondent Presentations TDI may request that Top-Scoring Respondents present an overview of the Services described in their Proposals.

The presentations will be online and in-person attendance is not requested. Presentation dates and times to be arranged. The number of Top-Scoring

Respondents will be determined by TDI in its sole discretion.

18. Contact with TDI Staff Upon issuance of this solicitation, employees and representatives of TDI, other than the TDI Contact

Person identified in Item 9, will not discuss the contents of this solicitation with any Respondent, Potential

Respondent, or its representatives. Failure of a

Respondent or any of its representatives to observe this restriction may result in disqualification of any related Proposal. This restriction does not preclude discussions between affected parties for the purpose of conducting business unrelated to this procurement.

http://www.txsmartbuy.com/esbd

19. Evaluation of Proposals under Best

Value Standard

Criteria Points

Cost 25

Respondent’s Qualifications and

Experience

Compliance with TDI Specifications 40

Past Performance and References 0 or -10

Proposal Content and Format 0 or -5

Financial Capability Pass/Fail

Total 100

The factors listed in Sections 2155.074, 2155.075, 2156.007, 2157.003, and 2157.125 of the Texas

Government Code shall be considered in making an award, when applicable.

The overall score for Proposals that fail to adhere to the format and content listed in Section IV Part J (Proposal

Content and Format) may be deducted 5 points, the

Proposal may be disqualified, or TDI may waive minor technicalities in accordance with Section III Part A

(Contract Resulting from this Solicitation).

20. Basis for Automatic Disqualification Proposals submitted in response to the solicitation will be rejected as non-responsive and will be disqualified if they do not meet the following mandatory requirements. A disqualified Proposal will receive no further consideration.

1) Respondent must not be debarred from participation in state contracts.

2) Proposal must be submitted by the deadline stated in Item 5 above (Deadline for Proposals) of this Section.

3) The HUB Subcontracting Plan must be submitted, if required by Section III Part H (HUB

Subcontracting Plan Information).

4) The Title Page must be signed and submitted.

See Section IV Part I.

5) Each addendum to the solicitation must be included in its entirety, including the signed signature page. See Section IV Part I Item 11.

6) The Execution of Proposal must be signed and submitted. See Section VII

7) The Conflict of Interest form must be completed, signed, and submitted. See Section

VIII.

8) The Certification Regarding Public Nature of the

Proposal must be completed, signed, and submitted. See Section IX.

II. Specifications

A. Introduction

The Texas Department of Insurance (TDI), an agency of the State of Texas, issues this Request for Offers

(solicitation) to solicit pricing from qualified vendors for a Software as a Service (SaaS) (as defined by NIST

800-145) for the TexasSure program as described in this solicitation (“Services”). TDI’s objective is to obtain the Services that represent the best value for TDI and the State of Texas according to the terms and conditions of this solicitation. The Services and requirements described in this solicitation are Mandatory unless specifically described as optional. If there is a conflict between the requirements in this solicitation, the strictest standards apply unless otherwise instructed by TDI.

TDI anticipates making a Contract Award to one Successful Respondent (“Contractor”) as a result of this solicitation. TDI reserves the right not to award a Contract for the performance of all or part of the requirements of this solicitation. This solicitation is not exclusive and TDI reserves the right to issue additional solicitations regarding the Services described in this solicitation or similar services at any time.

All Respondents are encouraged to offer their best pricing at all times.

All costs associated with the Services, as defined by this solicitation, must be included in the Respondent’s

Proposal. Proposals that do not meet all the requirements or contain all the required documentation specified in this solicitation will be rejected as non-responsive and will be disqualified.

B. Background

1. TDI Overview

TDI regulates the state’s insurance industry, oversees the administration of the Texas workers’ compensation system, performs the duties of the State Fire Marshal’s Office, and provides administrative support to the Office of Injured Employee Counsel – a separate agency.

TDI’s vision is to be a dynamic leader in responsible state, national, and global regulation; consumer protection; and market viability.

2. TexasSure Overview

TexasSure is the motor vehicle financial responsibility verification program mandated by Texas

Transportation Code, Chapter 601, Subchapter N. Texas Transportation Code Section 601.452 provides that TDI, in consultation with the Department of Public Safety of the State of Texas (DPS), Texas Department of Motor Vehicles (TxDMV), and Texas Department of Information Resources

(DIR), must create the financial responsibility verification program. Together, these agencies are referenced as the “Implementing Agencies.” See Appendices C, D, E, and F for background information on each Implementing Agency.

TexasSure is a system that allows users to verify whether owners of motor vehicles have established financial responsibility as required by the Texas Motor Vehicle Safety Responsibility Act in Texas

Transportation Code Section 601.051, which states that a person may not operate a motor vehicle in this state unless financial responsibility is established for that vehicle.

Texas Transportation Code Section 601.452 requires TexasSure to be the program most likely to:

a) reduce the number of uninsured motorists in this state;

b) operate reliably;

c) be cost-effective;

d) sufficiently protect the privacy of the motor vehicle owners;

e) sufficiently safeguard the security and integrity of information provided by insurance companies;

f) identify and employ a method of compliance that improves public convenience;

g) provide information that is accurate and current; and

h) be capable of being audited by an independent auditor.

The information obtained under TexasSure is confidential. Texas Transportation Code Section

601.454(c) states that the information may be used only for an authorized purpose and may not be used for a commercial purpose. TexasSure uses include verifying financial responsibility for in-person and online vehicle registration renewals, court proceedings, and law enforcement inquiries.

See Appendix G for additional information on end users and query volumes.

3. Project Overview

The Implementing Agencies require a fully operational Software as a Service (SaaS) (as defined by

NIST 800-145) solution for TexasSure that meets the requirements of this solicitation and that complies with Texas Transportation Code, Chapter 601, Subchapter N and Texas Administrative

Code, Title 28, Part 1, Chapter 5, Subchapter A, Division 7. Additionally, the Implementing Agencies require a solution that:

a) correctly matches vehicle registration information from TxDMV to insurance information from Texas Insurers and financial responsibility information from DPS;

b) adheres to established conditions for query responses;

c) responds to queries within five (5) seconds;

d) uses existing query and data formats; and

e) is available 24/7/365.

Contractor will develop, implement, operate, and maintain the solution in accordance with the requirements in this solicitation. TexasSure is an existing system with established data providers and end users. Minimal impact to data providers and end users is a high priority and key requirement. Contractor must propose a system that incorporates the current data transmission methods, connections, and data fields and formats so there is no change to the data provider and end user processes.

Respondents must clearly describe the proposed solution and how the proposed solution meets each requirement in this solicitation.

C. Qualifications

Respondents must have the knowledge and expertise to provide the services described in this solicitation.

Respondents submitting a Proposal in response to this solicitation must describe in its Executive Summary how the Respondent meets the qualifications described below.

1) Respondent has a minimum of five (5) years’ experience providing services comparable to the services described in this solicitation.

2) Respondent has experience with at least three (3) individual engagements for services comparable to the services described in this solicitation.

3) Respondent has qualified staff dedicated to the project. Respondent will detail the qualifications, education, training, experience, and certifications of the key staff that will provide services under any contract resulting from this solicitation.

D. Definitions and Acronyms

As used in this solicitation, the following capitalized terms will have the meaning specified below.

Term Definition

Addenda A written document identifying additions, deletions, corrections, or clarifications to a formal solicitation.

Agency The Texas Department of Insurance.

Agency Primary Contact The person designated by TDI to be the point of contact between TDI and

Contractor for the purposes of monitoring Contractor performance and providing day-to-day interaction and instruction. Also referred to as

“Contract Administrator.”

Authorized User(s) Select implementing agency staff.

Contract The written agreement, if any, executed by the authorized representatives of the Parties (the Implementing Agencies and the Contractor) that formalizes the terms, provisions, covenants, and obligations, including but not limited to those contained in this solicitation, of the respective Parties to the arrangement for provision of Services.

Contract Amendment A change, correction, clarification, modification, or deletion to a contract.

Contractor The individual or entity qualified to provide the goods and/or Services sought by TDI pursuant to this solicitation and who is ultimately selected to carry out the requirements stipulated in this solicitation and any resulting Contract. Has the same meaning as “Vendor” and “Successful

Respondent.”

Contract Administrator The person designated by TDI to be the point of contact between TDI and

Contractor for the purposes of monitoring Contractor performance and providing day-to-day interaction and instruction. Also referred to as

“Agency Primary Contact.”

Contract Award TDI’s notice of award to the Successful Respondent of TDI’s intent to execute a contract.

Contract Execution The date the Contract is fully executed by all Parties.

Contract Term The complete period of service including any extensions and renewals that are executed by Contract Amendment.

Data Breach A Security Incident in which sensitive, protected, or confidential data is copied, transmitted, viewed, stolen, or used by an individual or entity unauthorized to do so, whether or not the breach occurred in transit or at rest.

Data Provider(s) Texas Department of Public Safety and Insurers.

Days Calendar days unless otherwise specified.

DIR Texas Department of Information Resources.

Term Definition

Deliverable Unit or increment of work required by the Contract, including such items as goods, Services, reports, or documents.

DOCNO Texas motor vehicle document number.

DPS The Department of Public Safety of the State of Texas.

Electronic State Business

Daily (ESBD)

The public-facing website in which applicable government entities post certain competitive procurement solicitations.

http://www.txsmartbuy.com/esbd.

Employee, Contractor

Employee

Any individuals who, on behalf of the Contractor, will or may participate in any Contract resulting from this solicitation. The term includes all officers, personnel, replacement personnel, agents, contractors, subcontractors, subcontractor employees, and other representatives of the Contractor, regardless of how employed or contracted by Contractor.

End Users Law enforcement personnel, justice and municipal courts personnel, and vehicle registration personnel. The Implementing Agencies reserve the right to add additional end users in the future, as deemed allowable in

Texas Transportation Code Chapter 601, Subchapter N.

Financial Interest Receiving, or the right to receive, money or other valuable property or benefits under the actual or proposed Contract; holding a position in a business such as a principal, officer, director, trustee, partner, employee, or the like, or holding a position of management; holding any of the outstanding debt of a person directly involved in the proposed or resulting Contract; or owning stock or other interest in the business.

Financial Responsibility

Certificate (FR Certificate)

A certificate issued by DPS that a person may obtain by depositing a designated amount with the Texas Comptroller of Public Accounts in cash or securities that may legally be purchased by saving banks or trust funds and have a market value equal to the required amount.

Fiscal Year (FY) The State of Texas and TDI’s fiscal year that begins September 1 and ends

August 31.

Implementing Agencies Collectively, the Texas Department of Insurance (TDI), the Department of

Public Safety of the State of Texas (DPS), the Texas Department of Motor

Vehicles (TxDMV), and the Texas Department of Information Resources

(DIR).

Insured A person reported as covered by an insurance policy under Section II, Part F, Item 2.b or reported as the certificate holder under Section II, Part

F, Item 2.c.

Insured Vehicle A vehicle reported by an Insurer under Section II, Part F, Item 2.b or by

DPS under Section II, Part F, Item 2.c.

Insurer(s) An insurance company.

Interactive Web Portal The interactive web portal required by Section II, Part F, Item 7.

Mandatory Required, compulsory, or obligatory.

OAG Texas Office of the Attorney General http://www.txsmartbuy.com/esbd

Term Definition

Offer, Proposal, or Response The documents, including any exhibits or attachments, submitted by a prospective vendor in response to a solicitation. “Offer” has the same meaning as “Proposal” or “Response,” when such terms are applicable in the solicitation document so titled as Request for Proposal (RFP), Request for Offers (RFO), or an Invitation for Bid (IFB), respectively.

Party Entity who enters into a binding agreement with one or more other contracting parties and thus accepts the benefits and obligations specified therein.

Recovery Point Objective

(RPO)

The point in time from which the data is expected to be returned.

Recovery Time Objective

(RTO)

The number of hours between the dead time and the time the program is expected to be up again.

Relative When referring to an individual, the term includes a current or former TDI employee’s spouse, father, mother, brother, sister, son or stepson, daughter or stepdaughter, mother-in-law, father-in-law, sister-in-law, brother-in-law, son-in-law, or daughter-in-law.

Registered Vehicle A motor vehicle reported by TxDMV under Section II, Part F, Item 2. a.

Request for Offers (RFO) The title of this document and its exhibits, attachments, and appendices which are incorporated by reference in this RFO.

Respondent An individual or business entity submitting a Proposal in response to a solicitation, with an intent to contract with TDI.

Registration and Title

System (RTS

The client-server computer system used by TxDMV Vehicle Titles and

Registration (VTR) Division to process title and registration transactions.

Reporting Entity(ies) TxDMV, DPS, and Insurers.

Security Incident The discovery or reasonable belief that there has been unauthorized use, exposure, access, disclosure, compromise, modification, or loss of personally identifiable information (PII). A Security Incident may or may not turn into a Data Breach.

Self-Insurance (SI)

Certificate

Companies or individuals with more than 25 vehicles and the financial ability to pay a minimum of three judgments can obtain self-insurance.

These companies will be issued a Self-Insurance Certificate (SI) by DPS.

Services All of the requirements, duties, schedules, locations, and other items listed in the solicitation. The term includes any other services associated with

Contractor’s performance under any Contract resulting from this solicitation.

Severity Level A defining classification scheme for all issues with corresponding resolution times.

SFTP A secure file transfer protocol that facilitates data access and data transfer over a Secure Shell (SSH) data stream.

Software as a Service (SaaS) Software as a service is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. Must meet NIST 800-145 standards.

State Holidays The State Agency Holiday schedule is defined on the Texas State Auditor’s website at www.hr.sao.texas.gov/Holidays/.

http://www.hr.sao.texas.gov/Holidays/

Term Definition

Successful Respondent The individual or entity qualified to provide the goods, or services, or both, sought by TDI pursuant to this solicitation and who is ultimately selected to carry out the requirements stipulated in this solicitation and any resulting Contract. Has the same meaning as “Vendor” and

“Contractor.”

TDI The Texas Department of Insurance, the state agency responsible for the issuance of this solicitation.

Texas Law Enforcement

Telecommunications System

(TLETS)

TLETS acts as a message brokering system for DPS, making information available to law enforcement and criminal justice agencies.

TLS Transport Layer Security. TLS and its predecessor, Secure Sockets Layer

(SSL), both of which are frequently referred to as 'SSL,' are cryptographic protocols that provide communications security over a computer network.

TxDMV The Texas Department of Motor Vehicles (TxDMV).

TX-RAMP A vendor risk management regulation for Texas state agencies and public higher education institutions per Texas Government Code 2054.003.

Uninsured Individuals who have a Texas registered vehicle that is not matched to an active automobile insurance policy.

Vehicle Identification

Number (VIN)

The number provided in the standardized format used by the National

Highway Traffic Safety Administration since 1981, the non-standard format used prior to 1981, and vehicles assigned a state designated number.

Vendor The individual or entity qualified to provide the goods, or Services, or both sought by TDI pursuant to this solicitation and who is ultimately selected to carry out the requirements stipulated in this solicitation and any resulting Contract. Has the same meaning as “Successful Respondent” or

“Contractor.”

Vendor Primary Contact The person designated by the Contractor to be the point of contact between Contractor and Agency for purposes of scheduling, billing, contract management, and day-to-day management of Services under this solicitation.

XML Extensible Markup Language, a markup language that defines a set of rules for encoding documents in a format which is both human-readable and machine- readable.

E. Roles and Responsibilities

1. Implementing Agency Responsibilities

Each Implementing Agency agrees to meet the following requirements during the Contract Term:

a) Designate an Agency representative to be the Agency Primary Contact for the purposes of monitoring Contractor performance and providing day-to-day interaction and instruction.

The TDI Agency Primary Contact will also be the designated Contract Administrator.

b) Provide technical staff to assist with coordination between Contractor and TDI.

c) Provide subject matter experts, as needed.

d) Have final approval on all schedules and deliverables.

2. Contractor Responsibilities

Contractor must meet all the following requirements during the Contract Term:

a) Designate a representative to be the Vendor Primary Contact for the purposes of scheduling, billing, contract management, and day-to-day management of Services under this solicitation.

b) Provide the necessary staff to fulfill deliverables and requirements in accordance with the agreed upon schedule or Services.

c) Collaborate with TDI and other Implementing Agencies to ensure successful implementation and completion of the Services.

d) Be honest, open, courteous, respectful, and fair in all contact with TDI.

e) Identify and communicate any risks to the Service to the Agency Primary Contact.

F. Scope of Work

1. Data Provider Enrollment and Maintenance

Contractor must establish a process for Contractor to enroll and maintain each data provider for

TexasSure. Data Providers are DPS and each active Texas licensed Insurer. Insurers may report through a managing general agent (MGA) or third-party.

The data provider enrollment and maintenance process must include, at a minimum, the items listed below.

a) Maintain up-to-date profile and contact information (Insurer name, NAIC number, MGA name and number, contact name, and contact email) for each Data Provider.

b) Assign a unique company control code (CCC) to each Data Provider. Contractor must incorporate the currently assigned CCC for each Data Provider and follow the existing number format for new Data Providers. CCCs cannot be reassigned.

c) Establish secure file transfer protocol (SFTP) for data reporting, with a unique and secure folder or directory for each CCC.

d) Test with each new and existing Data Provider to ensure Contractor can receive and process data from each Data Provider. Troubleshoot any Data Provider reporting issues until fully resolved. Testing must be successfully completed before a Data Provider can begin regular reporting.

e) Establish a process to deactivate a CCC within seven (7) business days of request by an

Insurer or TDI.

f) Establish a process to reactivate a CCC within seven (7) business days of request by an

Insurer or TDI.

On a weekly basis or mutually agreed schedule, Contractor will provide TDI a summary of enrolled and deactivated data providers with their CCCs, and any issues with data provider enrollment, maintenance, and reporting activities.

In its Business Proposal (see Section IV Part I Item 5), Respondent must describe its process to enroll and maintain TexasSure data providers, including testing and troubleshooting of the system.

2. Receive Data

Contractor must receive and process data from three sources (Reporting Entities): policy information from Insurers, vehicle registration information from TxDMV, and financial responsibility information from DPS.

Data Source Approximate Weekly Volume

Insurers 366 companies as of 04/24/2024

22,968 vehicles as of 04/24/2024

4.7 MB or GB data/week

DPS 214,645 vehicles as 04/24/2024

5.8 MB data/week

TxDMV 22,060,445 registered vehicles as of

04/26/2024

1.25 GB data/week for updates

3.75 GB data for initial files (10) load and

quarterly file loads

Contractor must accommodate these volumes and allow for fluctuations and growth without any change in Service and with no cost to the state.

a) Vehicle Registration Information from TXDMV

TxDMV provides motor vehicle records from TxDMV’s registration and title system database to the Contractor via SFTP. TxDMV will provide the full vehicle registration and title database (Master File) on a quarterly basis and updates to the database on a weekly basis (Weekly Updates). Contractor must sign a bulk data contract with TxDMV. See

Appendix F for a sample copy of the bulk data contract application and bulk data contract.

Contractor must update the TexasSure databases with the new TxDMV Master File every quarter and update with the weekly TxDMV files for the weeks after the new TxDMV Master

File.

Appendix I details the data format and estimated volumes for the vehicle registration data.

Contractor must accept this data in the defined format and timeframes; proposed changes to the format and delivery schedule will not be considered. Contractor must accommodate these volumes and allow for fluctuations and growth without any change in

Service or cost to the state. Respondent must detail the cost, if any, for any future TxDMV file format changes in its proposal.

Appendix J details vehicle registration classes and document title types where financial responsibility is required. Insurers do not collect data about registration classes and may report active insurance policies for vehicles that do not require liability insurance. Any new or revised vehicle registration classes and document title types by TxDMV will be coordinated with the Contractor and will be considered maintenance updates with no cost to the state.

b) Insurance Information

All Texas-licensed Insurers report their active Texas private passenger automobile insurance policies. Reporting commercial automobile insurance policies is optional. If an insurer reports their commercial automobile insurance policies, Contractor must also receive, process, and match this data.

The Mandatory data element fields for Insurers are listed in the TexasSure Reporting Guide and User Manual at www.texassure.com. Appendix I details the current data format, transmission, and reporting requirements for Insurers. Contractor must accept this data in the defined format and timeframes; proposed changes to the format and delivery schedule will not be considered. Contractor must accommodate fluctuations and growth, such as incorporating all Texas commercial automobile insurance policies if reporting these policies becomes Mandatory, without any change in Service or cost to the state.

c) Financial Responsibility Information from DPS

DPS reports financial responsibility certificates and self-insurance certificates. Appendix K has more information on these certificates and details the data format for this data.

Contractor must accept this data in the defined format and timeframes; proposed changes to the format and delivery schedule will not be considered. Any revisions by

DPS will be coordinated with the Contractor and will be considered maintenance updates with no cost to the state.

d) Data Transmission – DPS and Insurers

Insurers and DPS submit data using Pretty Good Privacy (PGP) encrypted files that are uploaded to their unique SFTP directory, which must be provided by the Contractor.

Contractor must provide a PGP public key to Insurers and DPS. Insurers and DPS create a

PGP key pair and provide their public key to the Contractor. Insurers and DPS submit data on a weekly basis, within a defined seven-day window (“Submission Window”). Contractor must accept this data on a weekly basis.

Upon TDI’s written request and to remain current and compatible with Reporting Entity systems, Contractor must implement other secure methods for transmitting TexasSure data to and from Insurers, TxDMV, and DPS. Methods may include TLS/SSL, SFTP, SCP, VPN/VPC, provided transport encryption is no less secure than encryption utilizing the then current

IETF (www.ietf.org) ratified version of Transport Layer Security (TLS) protected by a minimum of 128-bit encryption with 1024-bit keys using TDI-approved digital certificates.

In its Business Proposal (see Section IV Part I Item 5), Respondent must detail whether it will offer

PGP for data submission and must also describe any proposed alternate data submission processes.

Respondent must describe its process used to receive the data from each Reporting Entity.

Respondent must also describe how fluctuation, growth, and/or file format changes may affect pricing.

3. Process Data

a) Initial Set-up and Testing

Contractor must work with each Reporting Entity to ensure it can receive and process data from each Reporting Entity before the go-live date.

Contractor must work with Insurers and DPS to ensure they can receive validation and submission reports from Contractor.

During the Contract Term, Contractor must work with each Reporting Entity to troubleshoot and resolve any data submission problems.

b) Validation and Submission Reports

Contractor must send notices and reports to Insurers and DPS by email and SFTP to report the status of expected or completed weekly files. These include but are not limited to the notices and reports listed below. TDI will work with Contractor to fully define the data and format for each report.

1) Acknowledgment notice (sent within the Submission Window) for each weekly file that was received and not rejected or incomplete.

2) Rejection notice (sent within the Submission Window) if Contractor rejects the weekly file. The rejection notice must include the reason for rejection, which may include:

• incorrect filename or filename missing required information;

• missing or incorrect date in the filename;

• file not encrypted or encrypted incorrectly;

• empty file, or

• file uploaded incorrectly.

3) Incomplete notice (sent within the Submission Window) if there is a discrepancy between the number of records indicated in the filename and the number of records in the weekly file.

4) Reminder notice (sent before the Submission Window closes) if Insurer or DPS has not submitted the expected weekly file and the Submission Window is almost over.

5) Delinquency notice (sent on the day the Submission Window closes) if Insurer or DPS did not submit the expected weekly file within the Submission Window.

6) Variance notice (sent within the Submission Window) for Insurers if the number of records in the weekly file varies by more than or less than 5 percent (5%) from the previous weekly file.

7) Acceptance report (sent within one day following the completion of the matching process) that details the file quality for each weekly file. The report must include:

• The number of vehicle records reported.

• The number of records with missing or invalid data in each Mandatory data field.

• The number of vehicle records used in the match process. For insurer information, the number of vehicle records per certain policy types.

• The number of vehicle records excluded from the match process. For insurer information, the number of vehicle records based on vehicle type, policy type, or incorrect formatting.

• The number of vehicle records matched to a registered vehicle.

• The number of vehicle records not matched to a registered vehicle.

• File match rate.

8) Data compliance report (sent within one day following the completion of the matching process) that identifies each record with missing, incomplete, or invalid data in the Mandatory data field.

c) Data Longevity

If an Insurer or DPS stop reporting a vehicle record, Contractor will maintain the vehicle record and continue to use the data for matching for two submission cycles unless the vehicle is reported by another Insurer during those two submission cycles.

When an insurance policy expires, Contractor will maintain the insurance policy record and continue to use the data for matching for 30 days after policy expiration unless that vehicle is reported as insured on a different insurance policy.

Contractor will maintain TxDMV motor vehicle records until that record has been superseded, replaced, or removed from the TxDMV database, or until the next quarterly database copy replaces all records.

In its Business Proposal (see Section IV Part I Item 5), Respondent must describe its approach to processing data submissions, troubleshooting reporting issues, and providing reports to Data

Providers and TDI.

4. Match Data

Contractor must match a Texas Registered Vehicle to an Insured Vehicle. Records must be matched using a vehicle link and person link. If more than one match can be made, Contractor must determine the best match by considering the most recent data.

a) Vehicle Link

A vehicle link must match the Registered Vehicle’s VIN to an Insured Vehicle’s VIN. An exact

VIN to VIN link is preferable. If an exact VIN link is not available, Contractor must incorporate logic and algorithms to identify the most reasonable link if one exists.

Contractor will use the TxDMV vehicle registration classes, document title types, and indicators that require financial responsibility for matching. Contractor can exclude vehicle registration classes, document title types, and indicators that do not require financial responsibility from the match process.

b) Person Link

A person link must positively match names or addresses between the Registered Vehicle data and the Insured Vehicle data. Contractor must incorporate logic and algorithms to identify the most reasonable link if one exists. Contractor must use logic to recognize name variations in the data and link the records despite name differences. For example, Contractor’s logic should recognize the potential relationship between “Robert,” “Robbie,”

“Bob,” and “Bobby;” “Road” and “Rd;” “RT,” “RR,” and “Route.,”

Additional Contractor requirements related to the match process are listed below.

1) As algorithms and logic are developed, Contractor must work with TDI to ensure the reasonableness of the algorithms and logic. Before the system go live date, TDI will review a match sample report to assess reasonableness of the matches.

2) In the event of duplicate Registered Vehicle or Insured Vehicle records, Contractor must determine the best record to use for matching.

3) Contractor must maintain a match accuracy of 95 percent (95%.)

4) Upon request, Contractor will work with TDI to resolve TexasSure inquiries including but not limited to inquiries that involve incorrect matches. This may require explaining incorrect matches or adjusting the algorithms and logic. TDI strongly prefers Contractor’s solution be capable of manually creating a match between a Registered Vehicle and Insured Vehicle, or manually breaking a match, if instructed by TDI.

5) Once the matching process has been completed, Contractor must make the matched data and TxDMV, Insurer, and DPS data available for user queries within four days following the close of the Submission Window.

In its Business Proposal (see Section IV Part I Item 5), Respondent must describe its processes on creating and maintaining a match process, including its logic for vehicle and person links.

Respondent must provide examples in its Response.

5. Query Response

TexasSure end users initiate a query based on one of the data elements listed below. Contractor cannot require or request the state to collect or use any additional information in the query process.

Contractor must assign a query ID and log all query responses with a date and timestamp. The query ID and timestamp must be available for reporting.

a) Texas license plate number,

b) VIN, or

c) TxDMV Document Number (DOCNO).

Contractor must determine the query response based on the conditions listed in Table 1. These conditions are subject to change based on state regulations, continued program experience, or direction by TDI. Any such change or changes will be made at no additional cost to the state.

Table 1 – Conditions for Query Response

Conditions Query Response Reason Code

• Single Registered Vehicle VIN is located

• One or more Insured Vehicle VIN is located

• Positive link between vehicle and person data

Confirmed N/A

Conditions Query Response Reason Code

• Policy expiration date is less than or equal to 14 Days before the current date

• Single Registered Vehicle VIN is located

• One or more Insured Vehicle VIN is located

• Positive link between vehicle and person data

• Policy expiration date is greater than 14

Days and less than 31 Days before the current date

Unconfirmed Vehicle coverage expired

• Single Registered Vehicle VIN is located

• One or more Insured Vehicle VIN is located

• Positive link between vehicle and person data

• Policy expiration date is greater than 31

Days before the current date

Unconfirmed No vehicle coverage found

• Single Registered Vehicle VIN is located

• One or more Insured Vehicle VIN is located

• No link to person data

Unconfirmed No vehicle coverage found

• Single Registered Vehicle VIN is located

• No Insured Vehicle VIN is located

Unconfirmed No vehicle coverage found

• No Registered Vehicle VIN is located Not Found N/A

• Multiple Registered Vehicle VINs are located

Multiple N/A

• Multiple license plates are located Multiple N/A

Contractor must return the data elements listed in Table 2 in the query response. These data elements are subject to change based on state regulations, continued program experience, or direction by TDI. Any such change(s) will be made at no additional cost to the state.

Contractor must use the query receipt and response formats currently used by DPS and TxDMV.

The current transmission is an XML file; the XML transmission format is subject to change for improved program performance. Specific language and format for the data elements will be communicated after Contract Award.

Contractor must respond to each query within five (5) seconds. No exceptions to this response time will be considered and liquidated damages may be assessed if the Contractor does not meet this requirement.

Contractor’s query response system must maintain an uptime and availability of 99.8 percent

(99.8%.) No exceptions will be considered and liquidated damages may be assessed if

Contractor does not meet this requirement.

Table 2 –Query Response Data Elements

Data Element Source

Query Field (License Plate, VIN, DOCNO) TexasSure System

Vehicle Identification Number (VIN) TxDMV Registration Data

License Plate Number TxDMV Registration Data

Document Number (DOCNO) TxDMV Registration Data

Query Response (Confirmed, Unconfirmed, Not Found, Multiple) TexasSure System

Reason Code (Unconfirmed responses only) TexasSure System

NAIC # Insurance Company Data

Registered Owner Name TxDMV Registration Data

Insurance Company Name Insurance Company Data

Policy Effective Date Insurance Company Data

Policy Expiration Date Insurance Company Data

Policy Type Insurance Company Data

Policy Number Insurance Company Data

Vehicle Make TxDMV Registration Data

Vehicle Model TxDMV Registration Data

Vehicle Year TxDMV Registration Data

Excluded Driver – Name (up to five [5]) Insurance Company Data

Excluded Driver – Date of Birth (up to five [5]) Insurance Company Data

Excluded Driver – Driver License Number (up to five [5]) Insurance Company Data

Odometer Expiration Mileage Insurance Company Data

In its Business Proposal (see Section IV Part I Item 5), Respondent must describe its approach and methodology to the query response process and ensuring that matching is accurate. This approach includes incorporating existing conditions for query response, responding within five (5) seconds, and maintaining the required uptime and availability of 99.8%.

6. Interfaces

Contractor must use the interfaces described below. Upon TDI’s written request and to remain current and compatible with end user systems, Contractor must implement and support alternative, future-state query transport protocols such as REST, qRPC, and other web services to enable

TexasSure queries.

Contractor must employ load-balancing and performance optimization capabilities to provide targeted performance for all current and future end users.

a) DPS TLETS Interface

DPS uses the Texas Law Enforcement Telecommunication System (TLETS) to communicate with law enforcement entities statewide and to retrieve vehicle information and the status of insurance. The current connection protocols for DPS are listed below.

• Standard TCP/IP dual-socket protocol using the International Justice and Public

Safety Network (Nlets) standard.

• The Nlets TCP/IP protocol requires that two (2) distinct halves compose an active interface. One half is the input connection that only receives messages from DPS and sends back acknowledgements or rejections. The other half is an output connection that only sends responses to DPS and receives acknowledgements. Each half is a standard TCP/IP socket stream connection and operates independently of the other.

• The TLETS socket protocol is an “always connected” protocol and cannot be externally load-balanced.

• Communications must occur asynchronously.

• Data exchange is currently in an XML format but may be subject to change at the direction of DPS. TLETS will transform responses into the appropriate format for its end users.

Contractor must propose a REST interface that meets the requirements below.

• Contractor must work with DPS to implement and ensure a successful system connection using REST.

• Communications via TCP/IP HTTPS using REST Web API.

• The REST Web service will use asynchronous messaging instead of always being connected. XML will be used to structure input and output data. A load balancer will be used to deliver message traffic evenly across REST web services and to manage failures automatically.

• The REST Web API will use HTTPS to encrypt the data transmission, and system-to-system authentication to leverage basic authentication within the HTTP authorization header. Contractor must work with DPS TLETS’s vendor to create a new synchronous REST Web service to process TexasSure queries. DPS requires TLS

1.3.

b) TxDMV Interface

TxDMV end users currently use a single, secure web service protocol to retrieve vehicle information and the status of insurance. Contractor must use the connection protocols for

TxDMV listed below.

• Web Service Definition Language (WSDL), or other compliant industry standard language as agreed upon by TDI.

• Respond in XML format by a secure communications method. The XML file must be compliant with XML standards as published by the Worldwide Consortium and include schema validation. Once established, the exchange format may not change without prior written agreement from TDI. TxDMV and future end users will be responsible for adapting the response provided and integrating that response into their process.

In its Business Proposal (see Section IV Part I Item 5), Respondent must describe its ability to meet and maintain the required interface protocols.

7. Interactive Web Portal

Contractor will provide an interactive web portal with controlled access via role-based security to

Authorized Users. TDI will manage access requests for the Implementing Agencies. Implementing agency office staff will be Authorized Users of the portal for the purpose of system monitoring and research.

The interactive web portal must meet Open Web Application Security Project (OWASP) standards.

a) Queries

The interactive web portal must incorporate a query function that:

1) Assigns a query ID to each query.

2) Allows users to query based on any one of the following elements: Texas license plate number, VIN, TxDMV Document Number (DOCNO), or a combination of these elements. The query must return the following information:

a. Texas license plate number

b. VIN

c. TxDMV DOCNO

d. Query response and reason code (see Section II Part F Item 5)

e. Insurance information: NAIC, insurer name, policy effective and expiration dates, policy type, policy number

f. Vehicle make, model, and year

g. Registered Owner name

h. Excluded driver names (up to five [5]), if applicable

i. Odometer expiration mileage, if applicable, and

j. Query ID.

TDI strongly prefers that the web portal also allow queries based on insurance information and registered vehicle information, as described below.

1) Insurance queries allow users to query based on any one of the following elements:

insurer name and insured name, Company Control Code (CCC) and insured name, or VIN or a combination of these elements. The query must return the following information:

a. Insured name

b. Insured address

c. CCC

d. Insurance policy number

e. Insurer name

f. Vehicle make, model, and year

g. Insured Vehicle VIN

2) Vehicle registration queries allow users to query based on any one of the following elements: Texas license plate number, DOCNO, VIN, registered owner name, or a combination of these elements. The query must return the following information:

a. Texas license plate number

b. DOCNO

c. Registered Vehicle VIN

d. Registered owner name or names

e. Registered owner address

f. Registration effective date

g. Vehicle make, model, and year

b) Reports

The interactive web portal must provide scheduled reports and on-demand reports. All reports must be exportable to Microsoft Excel and must identify the run date of the report and…