ESBD_385003_1737157642844_Addenda 1 - RFO 454-25-0102-28587-TS.pdf

Texas Department of Insurance

Request for Offers TexasSure Vehicle Financial Responsibility Verification System

RFO No. 454-25-0102-28587-TS

Addendum No. 1

Issue Date: January 17, 2025

A. Purpose of Addendum

Addendum Item 1: To publish answers to submitted questions.

Addendum Item 2: To revise the solicitation number.

Addendum Item 3: To amend Section II, Part J, Item 3.

Addendum Item 4: To amend Section II, Part K.

Addendum Item 5: To amend Section III, Part B.

Addendum Item 6: To amend Section III, Part H, Item 1

Addendum Item 7: To amend Section III, Part H, Item 3.

Addendum Item 8: To amend Section VI, Part A, Item 5.

Addendum Item 9: To amend Section IV, Part I, Item 1.

Addendum Item 10: To publish the Pre-Proposal Conference presentation.

RFO No. 454-25-0102-28587-TS

Addendum No. 1

B. Addenda Items

Questions and Responses Questions are organized by inquiring party. Respondents are urged to read all questions and responses.

All typographical errors, errors in spelling, or incorrect or inaccurate references are in the original questions. Texas Department of Insurance (TDI) determined not to alter them.

Similar or similarly-asked questions are answered only at the first instance of the question. Each subsequent instance refers back to the question number containing the applicable response.

Where a simple “yes,” or “no,” response is given, TDI determined that no further qualification was needed.

No. Question Response

1 Can we use offshore resources for development?

Vendors may use development resources outside the United States providing TexasSure data remains in the contiguous United States and TexasSure data is not accessed outside the contiguous the United States per Part II. Section K, Item 2.b.

Additionally, Part II, Section K, Item 4 requires all Contractor employees to complete an FBI fingerprint background check. This requirement would also apply to employees located outside of the United States.

2 Can we use offshore resources for development with all data staying within the contiguous United States?

See response to Question #1.

3 Due to the holiday weeks within the response timeframe, we request a two-week deadline extension.

The proposal submission due date will not be extended. The proposal deadline is January 31, 2025, at 3:00 p.m.

4 Additionally, if the two optional portions are not awarded in this contract, are they likely to put out as their own RFPs/RFQs?

See Part II, Section A, “TDI anticipates making a contract award to one Successful Respondent (“Contractor”) as a result of this solicitation.”

5 Cam we develop the solution and get TX RAMP Certified?

See Addenda Item #3, #4 and #8.

Addendum No. 1

No. Question Response

6 Are you going to share/distribute this pre-proposal conference presentation?

See Addenda Item #10.

7 RFO Section II Specifications, Section J3 Hosting, Page 33

The solution must be Tx-RAMP Level 2 certified before TDI and the Respondent execute a contract and retain this certification for the term of the contract.

Could the state please explain this process as it relates to beginning work on the project? Also, the RFP contains various deadlines for plans, proof of insurance, etc that have dates tied to contract execution.

How would these plans and documents be provided, particularly items like the Project Management Plan and Project Work Plan if the contract would theoretically not be executed until after development work and TX-RAMP certification were completed?

Regarding TX-Ramp certification, please see Addenda Item #3, #4 and #8.

TDI and the successful respondent will execute the contract as a part of the vendor selection process prior to any development work by the vendor. The vendor must provide a proposed project work plan and project schedule with their business proposal in the manner specified in Part II, Section F, Item 8 and Item 10 and Part IV of the RFO. Other required project management documentation must be submitted to TDI within the timeframes agreed upon or upon request.

Addendum No. 1

8 RFO Page 33, Section 3 states that “The Solution must be TX-RAMP Level 2 certified before TDI and the respondent execute a contract”. The same requirement is listed on Page 69, Section VI.A.5 and Page 130, Attachment 1. The solution requested by TDI is a custom system that must be developed by the respondent. The vendor will have to work with TX agencies to develop the interfaces with TX agencies which cannot be done before the contract begins. The solution (Product) provided by any respondent other than the current vendor will not even be available for certification at the time of contract execution. Any new solution must be developed or modified to meet specific TDI requirements before Tx-RAMP certification can begin.

Additionally, the certification process can take several months. During the pre-proposal conference call, the TDI Procurement Director had mentioned that it was okay to apply for certification after the solution is built. Can you confirm that it is okay to apply for Tx- RAMP certification after the contract is executed and the solution is built?

Alternatively, Section 11 of the TX-RAMP Program Manual Version 3.0 permits Agencies to enter into a contract with a Provisional Certification prior to the receipt of a full TX-RAMP Certification.

Is it acceptable that contractor apply for provisional TX-RAMP Certification at the time of contract execution so that the respondent may develop/modify the new solution to meet TDI requirements in order to begin the full TX-RAMP certification?

See Addenda Item #3, #4 and #8.

Addendum No. 1

No. Question Response

9 Is the current TexasSure system Tx-Ramp Level 2 certified?

The current TexasSure system is not relevant to this solicitation.

10 When is the anticipated “go-live” date for the new system? How much time has TDI planned between the beginning of the contract and the system being fully operational?

Anticipated dates and planned times are dependent on the Project Work Plan/Project Schedule. As stated in Section II, Part F, Item 10, Respondent must provide a proposed schedule and timeline for key milestones, including testing, implementation, and go live, for TDI review and approval. Contractor must adhere to the schedule and timeline once approved by TDI.

11 Is the State currently sending letters to uninsured vehicle owners as part of the current TexasSure program? If so, how many letters are sent on average each month? If not, when was the last time letters were sent?

TDI is not currently sending uninsured notices. The last uninsured notices were sent in 2017.

12 Is an interactive web portal (with the functionality requested in the RFO – Reports, etc.) available through the current TexasSure system?

The current TexasSure system is not relevant to this solicitation.

13 Please confirm that the Annual Costs in Section V.A on page 68 should only include pricing for the base solutions and should not include the Optional Services listed in Section H. on page 30. Please confirm that no pricing should be provided in the response for any of the optional services.

Section IV, Part I, Item 5b requires Respondents to provide line-item pricing for each option on the Mandatory Price Sheet in Section V of the solicitation.

14 Appendix H on Page 116 specifies four reporting formats for insurance companies. Can a count of insurance companies using each reporting format be provided?

The number of insurers using a specific reporting format can vary with each submission window. TDI estimates 261 insurers use Reporting Format 1 (Enhanced) and about 122 insurers use Reporting Format 2 (Texas Interface). TDI is not aware of any insurer that is currently using Reporting Format 3 (X12) or Reporting Format 4 (Small Insurers).

Addendum No. 1

No. Question Response

15 Section B on Page 55 state that, “The initial term of any Contract resulting from this solicitation will be from date of execution to August 31, 2026.” Section

11.2.01 also specifies the same date. Can you confirm that the initial Contract term is until August 31, 2027?

See Addenda Item #5.

16 Section 3.1 on page 58 has 4 procurement categories but none of the boxes are checked. Was one of the boxes supposed to be checked?

See Addenda Item #6 and #7.

17 In the Optional Services in Section H.1 on page 30, it states that Postage and Mailings are not included in this optional service” However, in the next sentence it states that “TDI will reimburse the Contractor for the actual costs of postage associated with uninsured notices.” Can you clarify if the Contractor will print and mail notices under this optional service or if the contractor will only be responsible for transferring the Date File of uninsured notices to the TDI?

The optional service for uninsured notices under Section II, Part H, Item 1, requires the Contractor to send notices to owners of motor vehicles that may be uninsured. As such, the contractor will print and mail the uninsured notices. TDI will reimburse the Contractor for the actual cost of postage.

18 Section 13 on Page 42 states “The following conditions must be met before Services fully transition to Contractor and payment for maintenance and operations can start:”. Does this mean the contractor will not be paid until after the system goes live and services have been fully transitioned to the new Contractor or can the respondent provide a separate line item for implementation costs?

Part V, Item A states, Total Contract Costs must be inclusive of all requirements in this Solicitation. Respondent must also include an itemized breakdown of the Total Contract Costs.

Contractor will be paid for all services provided under the awarded contract (for example, development, implementation, operations, and maintenance). All costs should be provided on the Mandatory Pricing Sheet.

The solicitation number is revised to be 454-25-0102-28587-TS.

Addendum No. 1

Section II, Part J, Item 3 - Hosting is deleted in its entirety and replaced with the following:

The Respondent must demonstrate that the solution clearly meets the National Institute of Standards and Technology (NIST) standard definition of SaaS (NIST Definition of Cloud Computing Special Publication 800-145). Additionally, the solution must be meet the TX-RAMP Control Baselines 2.0 Level 2 requirements. Additionally, TDI will be required to request and receive from the Department of Information Resources (DIR) a Data Center Services (DCS) program exemption before a contract can be awarded to a Respondent if the solution is purchased outside of the DCS program.

Respondent must also complete and submit the Solution Questionnaire in Attachment 1.

In its Business Proposal, Respondent must clearly demonstrate their ability to meet and maintain the Tx-Ramp Control Baseline 2.0 Level 2 requirements.

Section II, Part K, last paragraph is deleted in its entirety and replaced with the following:

Contractor must provide evidence that supports the fulfillment of required security controls, including but not limited to Tx-RAMP and CJIS requirements. Such evidence requested will include direct evidence of system configurations and must be provided within 15 business days of each request. In its Business Proposal (see Section IV Part I Item 5), Respondent must describe how it will meet or exceed the security requirements described above, including any existing or planned cyber insurance policies, and provide results from the most recently completed penetration test.

Section III, Part B – Contract Term is deleted in its entirety and replaced with the following:

The initial term of any Contract resulting from this solicitation will be from date of execution to August 31, 2027. At the sole option of TDI, the Contract may be extended as needed to complete work already in progress or to complete the procurement process for a subsequent contract, not to exceed a total of 11 months.

TDI may, in its sole discretion, exercise the option to renew the Contract for up to three (3) additional one (1) year periods. The optional additional period is September 1, 2027, through August 31, 2030. In the event of such renewal, Scope of Services, deliverable dates, and Contract amount may be negotiated, but will be consistent with the executed Contract.

To exercise the option to extend or renew the term, TDI will notify Contractor; such notice may be by Contract Amendment or Purchase Order issuance. Notwithstanding the termination or expiration of the Contract, certain provisions e.g., indemnification, confidentiality, right to audit, will survive the termination or expiration of the Contract.

https://dir.texas.gov/resource-library-item/tx-ramp-control-baselines-20 https://dir.texas.gov/resource-library-item/tx-ramp-control-baselines-20

Addendum No. 1

Section III, Part H, Item 1 is deleted in its entirety and replaced with the following:

1. NIGP Commodity Book Listings and Descriptions for this Solicitation The National Institute of Government Purchasing (NIGP) Commodity Book class and item codes and commodity descriptions for the services requested under this solicitation are listed below. Full commodity descriptions can be found at www.comptroller.texas.gov/purchasing/nigp/.

TDI requests all Respondents to consider using HUBs in subcontracting areas that are listed below;

however, this list should not be considered exhaustive.

Class Item Description 920 02 Access Services, Data 920 13 Advanced Authentication System Software Services, including

Maintenance and Repair

Section III, Part H, Item 3 a) is deleted in its entirety and replaced with the following:

Procurement Category and TDI HUB Goals

For purposes of the HSP, TDI has determined that this procurement falls under the following category:

Procurement Category TDI HUB Goal

☐ Special Trade Construction 0.00%

☐ Professional Services 5.00%

☒ Other Services 15.00%

☐ Commodities 21.10%

Section VI, Part A, Item 5 is deleted in its entirety and replaced with the following:

5. Cloud Computing State Risk and Authorization Management Program (TX-RAMP) Pursuant to Section 2054.0593(d)-(f) of the Texas Government Code, relating to cloud computing state risk and authorization management program, Respondent represents and warrants that the product meets the TX-RAMP Control Baselines 2.0 Level 2 requirements and will comply with the requirements in the performance of the contract.

Section IV, Part I, Item 1 is deleted in its entirety and replaced with the following:

Section 1 – Executive Summary On company letterhead, Respondent’s Proposal must include a summary of the Services proposed in response to this solicitation. The Executive Summary must be limited to no more than five (5) pages and should represent a full and concise summary of the contents of the Proposal. The http://www.comptroller.texas.gov/purchasing/nigp/

Addendum No. 1

Executive Summary must include a description of how Respondent meets the qualifications listed in Part II Item C (Qualifications). Additionally, the Executive Summary should clearly indicate and confirm the proposed solution offers a SaaS offering. Furthermore, Respondent must certify the company, and if applicable, any of its holding companies or subsidiaries, are not:

a) Listed in Section 889 of the 2019 National Defense Authorization Act (NDAA); or

b) Listed in Section 1260H of the 2021 NDAA; or

c) Owned by the government of a country on the U.S. Department of Commerce’s foreign adversaries list under 15 C.F.R. § 791.4; or

d) Controlled by any governing or regulatory body located in a country on the U.S.

Department of Commerce’s foreign adversaries list under 15 C.F.R. § 791.4.

See attached Pre-Proposal PowerPoint presentation.

Please note information presented at the Pre-Proposal conference held on January 7, 2025, have been modified by this Addenda.

C. Acknowledgement of Receipt of Addendum No. 1

Signature of Authorized Representative Date Signed

Printed Name and Title of Authorized Representative

Respondent Company Name

C. Acknowledgement of Receipt of Addendum No. 1