ESBD_400060_1741036841471_IT CAP RFP 238m (FINAL 03.03.2025).docx

GLENN HEGAR

TEXAS COMPTROLLER OF PUBLIC ACCOUNTS

Request for Proposals (RFP No. 238m) for IT Cost Allocation Plan Services for the Texas Comptroller of Public Accounts

RFP No. 238m IT Cost Allocation Plan Services Page 1 of 57

RFP 219a Fiscal Note Consulting Services for the Property Tax Assistance Division

TABLE OF CONTENTS

PART I

GENERAL INFORMATION

1.1 Introduction

The Texas Comptroller of Public Accounts (“Comptroller”) issues this Request for Proposals No. 238m (the “RFP”) to solicit proposals from qualified, independent financial services firms, who specialize in the field of indirect cost recovery and cost allocation planning for governmental units, to prepare Comptroller’s data processing cost allocation plan as described in this RFP. All requisite services, which are more fully described in Part II (Scope of Work), are referred to as “Services” in this RFP. Comptroller’s objective is to obtain Services that represent the best value for Comptroller and the State of Texas according to the terms and conditions of this RFP. Each firm submitting a proposal in response to this RFP shall be referred to as a “Respondent.” It is expected that one award will be made from this RFP. The selected Respondent, if any, is hereinafter referred to as the “Successful Respondent.”

1.2 Background

The Governor’s Office prepares an annual State of Texas state-wide cost allocation plan (“SWCAP”). Such plan is the means by which the federal government allows the State of Texas to recover the total cost of administering federal programs and includes all federal-related costs from the previous fiscal year. The SWCAP is annually reviewed, negotiated and approved by the Division of Cost Allocation (“DCA”) of the U.S. Department of Health and Human Services (“HHS”). As part of the SWCAP, the costs of statewide support services provided by Comptroller are identified and allocated to the state agencies it services and supports. The costs of Comptroller’s data processing related to such support services are included in the SWCAP. Thus, each year a cost allocation plan is developed for Comptroller’s data processing costs for the previous fiscal year and incorporated into the SWCAP.

PART II

SCOPE OF WORK

2.1 General

Successful Respondent will provide Comptroller with the Services associated with preparing Comptroller’s annual data processing cost allocation plan and updating it as set forth in Section 2106 of the Texas Government Code for presentation, review and approval by the DCA. Each year’s plan will be based on allocation data and actual expenditures incurred by Comptroller during the applicable state fiscal year. The State’s fiscal year is from September 1 through August 31. Successful Respondent must also assist in handling all presentation and negotiation of the cost allocation plan as part of the SWCAP. The Successful Respondent shall provide all Services in compliance with all requirements of this RFP and the Contract. The cost allocation plan must enable the State to recover the maximum indirect costs possible from federal programs.

For each year of the Contract, Successful Respondent shall provide to Comptroller all of the following services and those services reasonably related thereto:

1. Prepare a data processing cost allocation plan identifying and allocating all allowable costs of Comptroller’s Information Technology Division in accordance with federal principles and requirements presented in 2 Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Final Rule, and related U.S. Office of Management and Budget (OMB) guidance and any current federally authorized amendments and exemptions thereto. Successful Respondent shall prepare and deliver to Comptroller for review an initial draft of the data processing cost allocation plan no later than forty-five (45) days before the plan due date set by the appropriate authority. Successful Respondent shall prepare and deliver to Comptroller for approval the final data processing cost allocation plan, which incorporates and addresses any comments provided by Comptroller to the initial draft plan, and executive summary of the final data processing cost allocation plan no later than ten (10) days before the plan is due to the appropriate authority.

2. Include Comptroller’s data processing costs in the SWCAP to the maximum benefit of the State relative to the recovery of such costs from federally funded programs.

3. Present, negotiate and obtain approval of the Comptroller’s data processing cost allocation plan by DCA by its approval of the SWCAP in which the plan results are included by the due date set by the appropriate authority. During DCA’s review and negotiation of the SWCAP, Successful Respondent shall assist Comptroller in addressing any issues which may arise with the data processing cost allocation plan. If necessary and approved by Comptroller, Successful Respondent shall file requests for extensions with the appropriate authority.

4. Provide at no additional cost on-going support and guidance on Comptroller’s data processing cost allocation plan and other state cost recovery principles, requirements and issues for one year after delivery of the applicable final Comptroller data processing costs allocation plan.

5. Provide a periodic work-in-progress report to Comptroller. The timing, content, format and media will be determined by Comptroller and is subject to revision.

6. Be available to Comptroller by telephone, email and onsite as reasonably requested and as necessary to provide Services.

2.2 Term of Contract; Sample Contract

If a Contract is awarded, the initial term of the Contract shall begin September 1, 2025, or as soon thereafter as practical, and terminate August 31, 2029.

A Contract awarded under this RFP, if any, shall be based on the Contract included as Exhibit A of this RFP and shall incorporate this entire RFP. The Sample Contract includes boilerplate provisions, and Comptroller reserves the right, in its sole discretion, to make a contract award without negotiation of these provisions. In the event Comptroller requires negotiations with Respondents, any modifications or clarifications agreed to with Successful Respondent during contract negotiations shall also be incorporated into the final executed Contract. Each Respondent must review these terms and conditions in Exhibit A and otherwise in this RFP and address any concerns or issues in its transmittal letter. Terms and conditions not specifically objected to in the transmittal letter will be deemed to be accepted by Respondent. Comptroller has final approval of any contract awarded as a result of this RFP.

Comptroller reserves the right, in its sole discretion, to modify the terms and conditions of the Sample Contract in the best interests of the State prior to signature by the parties. Notwithstanding any exceptions or any other provision of Respondent’s proposal to the contrary, Successful Respondent shall indemnify Comptroller and the State of Texas, as specified in the Sample Contract. The State of Texas, Comptroller, and their respective employees, officers, agents, and representatives will not indemnify Successful Respondent for any amount for any purpose, and any provisions to the contrary are void.

PART III

GENERAL INFORMATION

3.1 Comptroller Rights

In the best interest of Comptroller and the State, Comptroller, in its sole discretion, may amend or modify any provisions of this RFP or withdraw this RFP at any time prior to award of a Contract. Comptroller reserves the right, in its sole discretion, to reject any or all submitted proposals or to select one or more qualified Respondents to this RFP without discussion of proposals with the respective Respondents.

The decision of Comptroller, or its designee with regard to the above, shall be administratively final. Comptroller, in its sole discretion, may waive administrative deficiencies and/or minor technicalities in proposals received. All proposals shall become a part of Comptroller’s official procurement files and may be available for public inspection upon execution of a Contract, if any.

3.2 Respondent Obligations

Respondents to this RFP are responsible for any expense related to the preparation and submission of a proposal. Comptroller shall not pay for any cost that is incurred by Successful Respondent prior to the effective date of the Contract. Qualified firms with the requisite experience are invited to submit proposals in accordance with this RFP. Proposals must address all specifications.

3.3 Successful Respondent Obligations

Comptroller shall look solely to Successful Respondent for performance of the Contract. Successful Respondent shall provide the requested Services under the direction of Comptroller. Successful Respondent shall be the sole point of Contract responsibility. Successful Respondent shall be liable, both individually and severally, for the performance of all obligations under the awarded Contract and shall not be relieved of the non-performance of any subcontractor.

3.4 Schedule of Events

Comptroller anticipates that the selection of Successful Respondent and execution of the Contract, if any, will proceed according to the following approximate schedule:

March 3, 2025 — Issuance of RFP (after 10:00 a.m. CT)

March 10, 2025 — Deadline for Submission of Questions (2:00 p.m. CT)

August 1, 2025 — Contract Execution (or as soon thereafter as practical)

The times stated in this document refer to Central Time (“CT”), Austin, Texas, where appropriate. Comptroller’s regular office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday, except national and official State of Texas holidays. All deadlines are subject to change at Comptroller’s sole discretion.

Notices of changes to items directly impacting the original RFP or proposal process will be posted on the ESBD at: http://www.txsmartbuy.gov/esbd. Any amendment to this solicitation will be posted as an addendum on the ESBD. It is the responsibility of interested parties to periodically check the ESBD for updates to the procurement prior to submitting a proposal. Respondent’s failure to periodically check the ESBD for updates will in no way release Successful Respondent from compliance with any requirements in the “addenda or additional information,” even if such compliance results in additional costs to meet the requirements.

3.5 Issuing Office

Comptroller, through its Contracts Section, is the Issuing Office and the sole point of contact for this RFP. The Contracts Section is the only office authorized to clarify, modify, amend, alter, or withdraw the specifications, terms, and conditions of this RFP and any contract awarded as a result of this RFP. Upon issuance of this RFP, other employees of Comptroller shall not answer questions or otherwise discuss the contents of this RFP with any Respondents or their representatives. Failure to observe this restriction may result in disqualification of any pending or subsequent proposal. This restriction does not preclude discussions unrelated to this RFP or questions relating to completing the HUB documents required in Section 4.2. Except as otherwise indicated, all communications concerning this procurement must be in writing and addressed to the Issuing Office as follows:

Turner Brown E-mail: contracts@cpa.texas.gov

3.6 Submission of Questions

Respondents may submit questions by email to the Issuing Office no later than 2:00 p.m. by the deadline set forth in the Schedule of Events. Questions concerning this RFP must be in writing and addressed to the Issuing Office at the above email address. On or about the date set forth in the Schedule of Events, Comptroller expects to electronically post answers to the written questions on the ESBD located at: http://www.txsmartbuy.gov/esbd.

3.7 Deadline for Submission of Proposals; Delivery Instructions; Number of Copies Required

One electronic copy of the proposal in searchable PDF format must be submitted to the email address in Section 3.5 (Issuing Office). The electronic copy must be received in the Issuing Office no later than 2:00 p.m. on the deadline set forth in the Schedule of Events. The email must be labeled with “RFP No. 238m IT Cost Allocation Plan Services” and include the name and address of Respondent in the body of the email.

Late proposals will not be considered under any circumstances.

Respondents are solely responsible for verifying Comptroller’s receipt of all proposals by the deadline specified above. Comptroller shall not be liable or responsible for any costs whatsoever incurred in submission of a proposal in response to this RFP.

Faxed proposals are not acceptable and will not be considered.

Due to changed building access restrictions, Respondents will not be permitted to hand deliver Proposals. Respondents are required to submit Proposals electronically.

For purposes of meeting the 2:00 p.m. delivery deadline, the Issuing Office’s electronic receipt date and time will be considered conclusive in all respects.

Under Section 322.020 of the Texas Government Code, the Legislative Budget Board (“LBB”) has implemented a database of state agency contracts. (See the LBB website at www.lbb.state.tx.us.) Comptroller shall upload to the LBB’s contract database the text of the complete Contract, including Successful Respondent’s proposal (with limited redaction and appendix) after the date of Contract award. In submitting a proposal in response to this RFP, Respondent acknowledges that it understands and accepts this requirement.

3.8 Confidential Information; Nondisclosure; Open Records

All information gathered, produced, derived, obtained, analyzed, controlled, or accessed by Respondent in connection with a contract resulting from this RFP (“Confidential Information”), shall be and remain Confidential Information and shall not be released or disclosed by Respondent without the prior written consent of Comptroller, which consent must specifically identify the Confidential Information to be disclosed by Respondent and the nature of the disclosure for which consent is sought. Respondent must execute and return with its proposal a Nondisclosure Agreement with Comptroller, in the form of Exhibit D attached hereto.

Following the award of a Contract, responses to this RFP are subject to release as public information unless the response or specific parts of the response can be shown to be exempt from the Texas Public Information Act, Chapter 552 of the Texas Government Code. All Respondents are advised to consult with their legal counsel regarding disclosure issues and take the appropriate precautions to safeguard trade secrets or any other proprietary information. Comptroller assumes no obligation or responsibility relating to the disclosure or nondisclosure of information submitted by Respondents.

Respondent must complete and return with its proposal the Certification Regarding Public Nature of the Proposal, Exhibit F of this RFP. In accordance with Exhibit F, Respondent must specifically identify any parts of its proposal it believes are confidential. Respondent must stamp in bold red letters the term “CONFIDENTIAL” on that specific part or page of the proposal that Respondent believes to be confidential. Respondent must submit in writing specific, detailed reasons, including any relevant legal authority, stating why Respondent believes the material to be confidential. Vague and general claims of confidentiality will not be accepted. Comptroller will be the sole judge of whether a claim is general and/or vague in nature. All proposals and parts of proposals that are not marked as confidential will be automatically considered public information after the contract is awarded. A response resulting in an award may be considered public information even though parts are marked confidential.

In the event Comptroller receives a request for portions of a proposal marked as “CONFIDENTIAL” as specified above, Comptroller shall forward such request to the Office of the Texas Attorney General (“Attorney General”) for an opinion on whether such information may be withheld from disclosure under the Texas Public Information Act. Comptroller will notify Respondent whose proposal is the subject of the request when the information is forwarded to the Attorney General. Comptroller assumes no obligation for asserting legal arguments on behalf of Respondent. Respondents are advised that Comptroller is obligated to comply with the decision of the Attorney General, including any such decision calling for the release of information marked “CONFIDENTIAL” by a Respondent.

Copyrighted proposals are unacceptable and are subject to disqualification as non-responsive.

3.9 Media Releases

Comptroller does not endorse any vendor, commodity, or service. Media releases pertaining to this RFP, the Contract, if any, or the Services to which they relate shall not be made without the prior written consent of Comptroller and then only in accordance with explicit written instructions from Comptroller. The disclosure of the contents of proposals prior to the award of the Contract, if any, or any other violation of this Section, may result in disqualification.

3.10 Non-exclusivity

This RFP is not exclusive, and Comptroller reserves the right to issue additional solicitations regarding the Services described in this RFP or similar services at any time.

3.11 Incorporation of Exhibits

Exhibits A, B, C, D, E, and F are attached hereto and incorporated as part of this RFP for all purposes.

3.12 Authority

This RFP is issued pursuant to Chapter 403, Chapter 2106, and Chapter 2254, Subchapter B, of the Texas Government Code.

PART IV

PROPOSAL FORMAT

4.1 Introduction

Each proposal shall contain a cover sheet with the following: “RFP No. 238m IT Cost Allocation Plan Services” and the name and address of Respondent. Proposal pages must be numbered. Each document included in the proposal may be separated from the other documents by a tab or blank sheet.

Proposals must be organized as described in Section 4.2. Proposals not organized in this manner may be subject to disqualification. Conciseness and clarity of content are required; vague and general proposals may be considered non-responsive and may result in disqualification. Proposals must be complete; failure to provide all required information may result in the disqualification of the proposal.

ALL EXHIBITS TO THIS RFP ARE PREPARED EXCLUSIVELY FOR THIS RFP. RESPONDENT’S SUBMISSION OF OTHER EXHIBITS OR DOCUMENTS, INCLUDING PRIOR RFP EXHIBITS, MAY RESULT IN DISQUALIFICATION OF THE PROPOSAL.

4.2 General Organization of Proposal Contents

Proposals must be organized as follows:

a) Transmittal Letter;

b) Executive Summary;

c) Table of Contents;

d) Respondent Identifying Information;

e) Proposed Subcontractor(s) Identifying Information;

f) Respondent Qualifications and Experience;

g) Proposed Personnel;

h) Respondent Narrative, including Work Plan;

i) Proposed Fee;

j) Insurance;

k) Financial Statements;

l) Execution of Proposal;

m) Historically Underutilized Businesses Subcontracting Plan;

n) Criminal Conviction Certification;

o) Nondisclosure Agreement; and

p) Conflict of Interest Statement.

A description of the information required for each of the items listed above is set forth below.

4.2.A Transmittal Letter

Respondent must submit a transmittal letter that identifies the entity submitting the proposal and includes a commitment by that entity to provide the Services required by Comptroller. The transmittal letter must state that the proposal is valid for one hundred eighty (180) days from the deadline for delivery of proposals to Comptroller. Any proposal containing a term of less than one hundred eighty (180) days for acceptance from this deadline will be rejected as non-responsive.

The transmittal letter must be signed by a person legally authorized to bind Respondent. Respondent also must indicate in its transmittal letter why it believes it is the most qualified to provide the requisite Services and why it believes its proposed services best meet Comptroller’s objectives and RFP requirements.

The transmittal letter must include a statement of acceptance of the terms and conditions of the contract as set forth in the Sample Contract located in Exhibit A to the RFP. If a Respondent takes exception to any of the proposed terms and conditions stated in the Sample Contract or this RFP, then the exception(s) must be specifically and clearly identified in the transmittal letter, and an explanation of the requested change along with the proposed alternative language must also be included in the transmittal letter. However, failure to accept those terms and conditions may result in disqualification of the proposal.

4.2.B Executive Summary

Respondent must provide an executive summary of its proposal and a representation that the proposal addresses all the requirements of this RFP. The executive summary must not exceed three (3) pages and must represent a full and concise summary of the contents of the proposal. Respondent must identify any Services that are provided beyond those specifically requested. If Respondent is providing Services that do not meet the specific requirements of this RFP but in the opinion of Respondent are equivalent or superior to those specifically requested, any such differences must be noted in the executive summary. However, failure to provide the Services specifically required may result in disqualification of the proposal.

4.2.C Table of Contents

Each proposal must be submitted with a table of contents that clearly identifies and denotes by page number each section of the proposal and the location of all enclosures of the proposal. The table of contents must follow the RFP’s structure as much as possible.

4.2.D Respondent Identifying Information

Respondent must provide the following identifying information:

(1) name and address of business entity submitting the proposal;

(2) names of all principals;

(3) type of business entity (e.g., corporation, partnership);

(4) state of incorporation or organization and principal place of business;

(5) name and location of Texas offices, other major offices, and other facilities that relate to Respondent’s performance under this RFP;

(6) name, address, business telephone number, cell phone number, email address, and fax number of Respondent’s principal contact person regarding the Contract;

(7) Respondent’s Federal Employer Identification Number (“FEIN” or “EIN”) and Texas Tax Identification/Registration Number, if any;

(8) all affiliated companies and subsidiaries or any joint ventures or other affiliations;

(9) full name and address for each member, partner, and employee of Respondent (and any subcontractors) who will perform Services;

(10) detail of any firm ownership changes which have occurred in the last five (5) years, including changes pending; and

(11) indicate whether it is currently a party to litigation in process; if so, identify the parties, jurisdiction, case number, and subject matter.

4.2.E Proposed Subcontractor(s) Identifying Information

The proposal must identify any subcontractors and outline the contractual relationship between Respondent and each proposed subcontractor. Respondent must provide statements for each of its proposed subcontractors signed by an individual authorized to legally obligate each subcontractor and attesting to the fact that it will provide the Services as represented in Respondent’s proposal. Proposed subcontractors may be required to submit ownership information similar to that required of Respondents in the Section above. Respondent must disclose, at Comptroller’s request, any information regarding proposed subcontractors.

4.2.F Respondent Qualifications and Experience

1. Experience

Respondent must include a detailed overview of Respondent’s experience providing the requisite services in its proposal, with a particular emphasis on serving governmental entities. Respondent must demonstrate its knowledge of and experience with activities relevant to the services requested by this RFP. Respondent must provide a detailed profile that describes the following:

a) the size and scope of all operations, including number of employees and years in business;

b) the general nature of previous similar work performed, particularly work in the last three (3) years;

c) depth and length of experience with public sector entities;

(5) any other information Respondent believes is pertinent to this RFP.

2. Cancellations, Terminations, and Non-renewals

Respondent must list all contracts or purchase orders that Respondent executed or accepted within the last five (5) years and which were canceled, terminated, or not renewed prior to completion by any state agency or other entity with which Respondent contracted. For each such contract or purchase order, Respondent must include a detailed explanation for the cancellation or termination and final resolution of the matter as well as the names and telephone numbers of each such agency's or firm’s contact person. If none, specify none.

3. References

In its proposal, Respondent must include a list of at least three (3) clients, other than Comptroller, for which Respondent has provided services during the last three (3) years on projects of a similar nature as those requested by this RFP that typify Respondent’s qualifications. For each project, Respondent should include the following information:

(1) client name;

(2) client contact person, address, and telephone number;

(3) complete description of the work performed and deliverables provided;

(4) accurate description of the cost of the work performed (if for a public entity), including whether payment was fixed-fee, hourly fee, or some other method of compensation;

(5) length of current client contract; and

(6) total dollar value of property reported during contract period.

References may be contacted as part of the evaluation process described in Section 5. Comptroller is not obligated to contact Respondent in the event incomplete reference information is submitted in the proposal. Consequently, Respondent’s failure to provide all or part of the requested reference information in its proposal may be reflected as a score of “0” for the applicable evaluation criterion.

4.2.G Proposed Personnel The proposal must identify all key personnel. Respondent must include in the proposal résumés of all management, supervisory, and key personnel that will be involved in performing the Services, and must provide for each person:

(1) a full name (including full middle name);

(2) a five (5)-year employment history;

(3) a specific description of relevant experience and skills that person has with this type of services, that must include at least three (3) years of experience performing work similar to the required Services (limit to one page);

(4) a specific indication of what role the individual will have in this project, and

(5) any additional pertinent information to indicate the individual’s ability to aid Respondent in successfully completing the required Services (limit to one page).

In addition, Respondent must provide an organizational chart indicating lines of authority, names, titles, and functions of individuals responsible for the Services.

Résumés must present the required personnel information in sufficient detail to provide Comptroller with a convincing indication that the personnel involved can successfully provide the required Services. The key personnel, as identified in the proposal, are considered to be essential to the Services. Comptroller reserves the right, in its sole discretion, to approve each member of the team and to request substitutions. All replacements of personnel must be of equal or superior experience or skill as the person replaced.

4.2.H Respondent Narrative In its proposal, Respondent must submit a detailed narrative explanation of how the offered services will meet the requirements of Part II (Scope of Work) of this RFP. In the narrative, Respondent must also provide a high level work plan and timeline for the Services in order to complete the cost allocation plan for Comptroller’s fiscal year 2022 (September 1, 2021-August 31, 2022) and the optional contract terms which cover fiscal years 2023, 2024 and 2025. In its narrative, Respondent may also concisely describe any additional features, aspects, or advantages of its services in any relevant area not covered elsewhere in its Proposal.

4.2.I Proposed Fee

Comptroller is soliciting proposals to procure the Services for a firm fixed price. Respondents are encouraged to offer their best pricing at all times. Respondent must include all costs of providing all of the services requested by this RFP in Attachment C (Authorized Personnel and Compensation) to Exhibit A. All costs and expenses associated with the Services defined by the RFP must be included on the proposed price sheet. Comptroller reserves the right to negotiate budget and budgetary constraints at the time of contract award. Any Contract resulting from this RFP shall include a total not-to-exceed fee for all costs associated with providing the Services.

4.2.J Insurance

In its proposal, Respondent must provide a statement of its intent to obtain and maintain for the term of the Contract the minimum insurance and bond coverage specified in the Sample Contract. Respondent should also describe other insurance coverage maintained by Respondent in the ordinary course of business and provide proof of same in its proposal. Proof of insurance and bond coverage may be provided in the form of current certificates of insurance.

4.2.K Financial Statements

In its proposal, Respondent and its parent company, if applicable, must provide evidence of financial stability by providing audited financial statements for each of the last two (2) years of Respondent’s operations or, in the alternative, financial statements compiled, reviewed and attested by an independent certified public accountant or certified public accounting firm.

In lieu of providing the financial statements described above in its Proposal, a Respondent may provide a statement regarding the Respondent’s financial stability and viability to perform under any resulting contract. If Respondent elects this approach rather than audited financial statements, the Respondent must submit a statement, with appropriate supporting documentation, sufficiently detailed to demonstrate financial solvency, and to verify the capacity to fulfill the requirements of this RFP.

4.2.L Execution of Proposal

Exhibit B must be completed and signed by Respondent.

4.2.M Historically Underutilized Businesses Subcontracting Plan (HUB)

The State of Texas and Comptroller are committed to assisting Historically Underutilized Businesses (HUBs) through the procurement process. In accordance with Sections 2161.181 and 2161.182, Texas Government Code, each state agency shall make a good faith effort to increase the contract awards for the purchase of goods or services to HUBs based on rules adopted to implement the disparity study described by Section 2161.002(c), Texas Government Code. In accordance with Section 2161.252 of the Texas Government Code and 34 Texas Administrative Code §20.285, each state agency that considers entering into a contract with an expected value of $100,000 or more over the life of the contract (including any renewals) shall, before the agency solicits bids, proposals, offers, or other applicable expressions of interest, determine whether subcontracting opportunities are probable under the contract. If subcontracting opportunities are probable, each state agency’s invitation for bids, requests for proposals, or other purchase solicitation documents with an expected value of $100,000 or more shall state that probability and require a Historically Underutilized Business (HUB) Subcontracting Plan (HSP).

The HUB goals per 34 Texas Administrative Code §20.284 are: 11.2% for heavy construction other than building contracts; 21.1% for all building construction, including general contractors and operative builders contracts; 32.9% for all special trade construction contracts; 23.7% for professional services contracts; 26.0% for all other services contracts; and 21.1% for commodities contracts.

Comptroller has determined that this procurement falls under the following category:

Special Trade Construction ___ Professional Services ___ Other Services X Commodities ___

Comptroller has determined that HUB subcontracting opportunities are probable and require Respondents to complete the HSP form located at: https://comptroller.texas.gov/purchasing/vendor/hub/forms.php. The HSP form is also posted to the ESBD as a separate package under this RFP. CPA has identified the possible subcontracting opportunities on the “Agency Special Instructions/Additional Requirements” portion of the State of Texas HUB HSP form set forth below. The class and item codes for this RFP are as follows: Class 918, Items 04 and 49, Class 946, Item 29 and Class 961, Item 21.

- - Agency Special Instructions/Additional Requirements - - The Texas Comptroller of Public Accounts is committed to increasing contracting opportunities with HUBs by contracting directly with HUBs or indirectly through subcontracting opportunities in compliance with Chapter 2161 of the Texas Government Code, and by requesting a HSP for contracts with an expected value of $25,000 to $99,999.

If a bid/proposal/offer to a solicitation with an expected value of $100,000 or more does not contain a completed HSP and supporting documentation, the bid/proposal/offer will be considered non-responsive and will be disqualified. After contract award, Successful Respondent may be subject to debarment pursuant to Section 2161.253(d) of the Texas Government Code if any modifications are made to the HSP without PRIOR approval from CPA.For assistance in completing the HSP, Respondent may visit the following websites:

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

If Respondent is not subcontracting any portion of the contract, Sections 1, 2(a), 3, and 4 must be completed.

If Respondent is subcontracting some portion of the contract, the supporting documentation of “Good Faith Effort” must be demonstrated in either Method A (Attachment A) or Method B (Attachment B).

The Texas Comptroller of Public Accounts requests all Respondents to consider utilizing HUBs in subcontracting areas that are listed below; however, this list should not be considered exhaustive.

In accordance with 34 TAC §20.285(d)(1)(D)(iii), a Respondent (prime contractor) may demonstrate good faith effort to utilize Texas certified HUBs for its subcontracting opportunities if the total value of Respondent’s subcontracts with Texas certified HUBs meets or exceeds the statewide HUB goal or the agency specific HUB goal, whichever is higher. When a Respondent uses this method to demonstrate good faith effort, the Respondent must identify the HUBs with which it will subcontract. If using existing contracts with Texas certified HUBs to satisfy this requirement, only contracts that have been in place for five years or less shall qualify for meeting the HUB goal.

4.2.N Criminal Conviction Certification

Exhibit C must be completed and signed by Respondent.

4.2.O Nondisclosure Agreement

Exhibit D must be completed and signed by Respondent.

4.2.P Conflict of Interest Statement

The Conflict of Interest Statement must be prepared, signed by Respondent, and returned with the proposal as Exhibit E.

In its proposal, a Respondent must represent and warrant to Comptroller that it and each of its subcontractors have the requisite resources, qualifications, and independence to conduct the Services free from outside direction, control, or influence, and subject only to the accomplishment of Comptroller’s objectives. Respondents that cannot make this representation and warranty should not respond to this RFP.

Respondent must disclose any existing or potential conflicts of interest or possible issues that might create appearances of impropriety relative to the submission of a proposal from Respondent and its possible selection as Successful Respondent, or its performance or the performance of its proposed subcontractor(s) of the Contract.

As part of this disclosure requirement, each Respondent must include in its proposal all past and present contractual, business, financial or personal relationships between Respondent and Comptroller and between Respondent’s proposed subcontractors, if any, and Comptroller. For purposes of this disclosure requirement, (i) “past” is defined as within the two (2) calendar years prior to the deadline for submission of proposals in response to this RFP; (ii) “Comptroller” is defined as the statewide elected official who heads the agency as well as the agency’s employees or recent former employees; and (iii) “recent former employees” are defined as those Comptroller employees who have terminated agency employment within the two (2) calendar years prior to the deadline for submission of proposals in response to this RFP. For each item, Respondent must provide a detailed explanation of why Respondent does or does not believe such item poses a conflict of interest, potential conflict of interest, or appearance of impropriety issue relative to Respondent’s submission of a proposal, possible selection as Successful Respondent or its performance of the Contract.

Under Section 2254.033 of the Texas Government Code, an individual who offers to provide consulting services to Comptroller and who has been employed by Comptroller or another agency at any time during the two (2) years preceding submitting the proposal shall disclose in its proposal: (i) the nature of the previous employment with Comptroller 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.

For purposes of this RFP, “personal relationship” is defined as a current or past connection other than a clearly contractual, business, financial, or similar relationship and includes family relationships or other connections outside simply providing a response to this RFP. For this purpose, “family relationship” means a relationship within the third degree of consanguinity or second degree of affinity (See Chapter 573 of the Texas Government Code) which defines these degrees of consanguinity and affinity. Connections other than such family relationships fall within this definition and must be disclosed if a reasonable person could expect the connection to diminish Respondent’s independence of judgment or effectiveness in the performance of Respondent’s responsibilities to Comptroller or the State under the Contract. Connections also fall within this definition if a reasonable person could expect the connection, within the overall context of Respondent’s submission of a proposal, possible selection as Successful Respondent, or its performance of the Contract, to create an issue for the agency’s consideration relative to a potential appearance of impropriety or conflict of interest. Connections also fall within this definition if the relationship is with Comptroller or other State of Texas employee with authority to make decisions or recommendations on state contracting or procurement or this RFP. For purposes of this provision, those persons with authority to make decisions or recommendations are those persons who fall within the definition of “purchasing personnel” in Section 2262.004(a)(2) of the Texas Government Code.

In submitting a proposal in response to this RFP, a Respondent affirms that it has not given, nor intends to give, at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant or any employee or representative of same in connection with this procurement.

Respondents must disclose any proposed personnel under the contract who are current or recent former employees of Comptroller or the State. Recent former employees are defined above.

Disclosures under these provisions are information that will be evaluated by Comptroller. However, all information provided will not necessarily lead to a restriction or disqualification. Issues will be considered on a case-by-case basis in the best interests of the State of Texas. If a Respondent is in doubt about whether information should be disclosed, Respondent should consult its legal counsel. Failure to disclose any required information under these provisions may be cause for proposal disqualification or termination of the contract under this RFP. Comptroller reserves the right, in its sole discretion, to determine if an issue should result in proposal disqualification or termination of the Contract. If circumstances change or additional information is obtained subsequent to submission of proposals, Respondent’s duty to disclose under these provisions continues under the term of the Contract and does not end with submission of a proposal or receipt of Contract award.

PART V

PROPOSAL EVALUATION AND SELECTION

5.1 Evaluation Process

Comptroller shall establish an Evaluation Committee. Copies of proposals found to be responsive and compliant with this RFP will be distributed to the members of the Evaluation Committee for review and evaluation. Clarifications on issues raised in the proposals may be sought from individual Respondents. Best and Final Offers may be sought from Respondents whose proposals are ranked most highly by the Evaluation Committee; however, Respondents are encouraged to offer best pricing at all times to ensure the highest score under Section 5.2.

Upon the selection of Successful Respondent, if any, Comptroller shall proceed with contract negotiations and attempt to finalize the contract with the apparent Successful Respondent. If a contract cannot be successfully negotiated within a reasonable period, negotiations will be terminated, and negotiations with the next highest-ranking Respondent may commence. The process may continue until a contract is signed or the RFP is withdrawn. However, Comptroller may at any time, upon failure of negotiations, choose to reissue or withdraw the RFP rather than continue with negotiations. As soon as possible after the execution of a written contract with Successful Respondent, all other Respondents shall be provided with formal notification.

5.2 Selection Criteria

Only those proposals that meet the minimum qualifications shall be evaluated and scored. The evaluation of the proposals will be conducted in accordance with the best value standard set forth in Section 2254.027 of the Texas Government Code, and the criteria and relative weights are as follows:

Respondent Qualifications, Experience and Performance: Weight: 70%

The criteria are:

· overall qualifications of the Respondent and proposed subcontractor(s);

· past experience in providing similar services to those requested by this RFP;

· quality of performance on previous engagements, including any Comptroller projects;

· Respondent has successfully completed this type of Service; and

· demonstration that the proposed individual or team includes personnel with all the skills and experience required to successfully complete all elements of the Services.

Cost: Weight: 30%

The criteria are:

· clear identification of all proposed project fees and costs;

· reasonableness of all such costs; and

· hours and costs assigned to all personnel are reasonable and sufficient to ensure successful completion of the Contract.

Comptroller reserves the right to award to Respondents that best meets Comptroller’s needs. Comptroller may elect to award multiple awards and/or partial awards under this RFP based on the type of Services proposed and the specific auditing needs of Comptroller.

5.3 Respondent’s Past Performance

Pursuant to Section 4.2 of this RFP, references may be contacted as part of the evaluation. Failure to provide references will result in disqualification of the respondent’s proposal.

Comptroller may conduct reference checks with other entities regarding past performance. In addition to evaluating performance through the Vendor Performance Tracking System (VPTS) as authorized by 34 Texas Administrative Code §20.115, Comptroller may examine other sources of vendor performance, including, but not limited to, notices of termination, cure notices, assessments of liquidated damages, litigation, audit reports, and non-renewals of contracts. Such sources of vendor performance may include any governmental entity, whether an agency or political subdivision of the State of Texas, another state, or the Federal government. Further, Comptroller may initiate such examinations of vendor performance based upon media reports. Any such investigations shall be at the sole discretion of Comptroller, and any negative findings, as determined by Comptroller, may result in a non-award to Respondent. The Vendor Performance Tracking System information is located on Comptroller’s website at:

https://comptroller.texas.gov/purchasing/programs/vendor-performance-tracking/.

5.4 Protest Procedures

Respondents must use the protest procedures adopted by Comptroller at 34 Texas Administrative Code §1.72 in the event of a protest.

EXHIBIT A

SAMPLE CONTRACT

COST ALLOCATION PLAN SERVICES AGREEMENT

BETWEEN

COMPTROLLER OF PUBLIC ACCOUNTS

AND

[CONTRACTOR]

This agreement (“Contract”) is entered into by and between the Office of the Texas Comptroller of Public Accounts (“Comptroller”), an agency of the State of Texas, and (“Contractor”), located at .

I. Recitals

Whereas, on [Date], Comptroller issued a Request for Proposals No. 238m (“RFP”) for cost allocation plan services from qualified, independent financial services firms specializing in the field of indirect cost recovery and cost allocation planning for governmental units as set forth in the RFP, and on or about [Date], issued its official responses to written questions (collectively “RFP”);

Whereas, Contractor submitted a proposal on or before [Date], in response to Comptroller’s RFP (“Proposal”);

Whereas, Contractor was selected as a Successful Respondent;

Whereas, under this Contract, Contractor shall fully comply with all terms, conditions, requirements, and other provisions of this Contract, including those set forth in the Attachments attached hereto and incorporated herein for all purposes; and

Whereas, in consideration of Contractor’s compliance with all requirements of this Contract, Comptroller awards this Contract to the Contractor.

Now, therefore, the parties hereby agree as follows.

II. Authority

This Contract is entered pursuant to Chapter 403, Chapter 2106, and Chapter 2254, Subchapter B, of the Texas Government Code.

III. Services Contractor shall provide to Comptroller all of the professional services and deliverables described in and in the manner required by all of the following documents (“Services”) as attached hereto and incorporated as part of this Contract for all purposes. All terms and conditions of Comptroller’s RFP shall apply. In the case of conflicts between this Contract and any of the listed Attachments to this Contract, the documents shall control in the following order of priority:

1. This Contract (without attachments)