ESBD_403025_1749672263349_HHS Responses to Questions - Addendum 3.pdf

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Solicitation Title: Document Processing Services

Solicitation Number: HHS0015252

HHS Responses to Vendor Questions

Question # Reference Vendor Question Response

1 Section 3.1 Schedule of Events

Both the anticipated Notice of Award and the anticipated Contract Start Date are indicated as September 2026. Kindly confirm if these dates are correct or if they are placeholders.

September 2026 is the anticipated date for the notice of award and Contract start date.

Refer to Section 3.1, Schedule of Events, of the RFP, which states that “[a]ll dates are tentative and HHSC reserves the right to modify these dates at any time. At the sole discretion of HHSC, events listed in the Schedule of Events are subject to scheduling changes and cancellations.”

2 Section 3.1 Schedule of Events Will HHSC confirm the anticipated notice of award and contract start date as the RFP indicates the anticipated award and contract start date are September 2026.

September 2026 is the anticipated date for the notice of award and Contract start date.

Refer to Section 3.1, Schedule of Events, of the RFP, which states that “[a]ll dates are tentative and HHSC reserves the right to modify these dates at any time. At the sole discretion of HHSC, events listed in the Schedule of Events are subject to scheduling changes and cancellations.”

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Question # Reference Vendor Question Response

3 Section 3.1 Schedule of Events

Will HHSC consider extending the deadline for solicitation responses by at least two (2) weeks to June 30, 2025 to provide all Offerors sufficient time to prepare their proposal and ensure all answers to questions provided by HHSC are properly incorporated into the proposal response.

Refer to Addendum No. 2.

4 Section 3.1 Schedule of Events

We respectfully request a brief extension to the proposal due date to allow sufficient time for vendors to develop a compliant and comprehensive response. We ask for two weeks to ensure vendors have sufficient time to receive and understand answers to questions and incorporate the responses into our proposals.

Refer to Addendum No. 2.

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Section 2.4 No guarantee of volume, usage, or compensation;

Exhibit H, Cost Proposal

The cost proposal appears to use fixed unit pricing, suggesting that compensation adjusts automatically based on volume.

However, if a disaster event requires relocation of operations to the disaster recovery site, there may be significant temporary increases in cost to maintain service levels. Can HHSC clarify whether the fixed unit rates are intended to cover the increased costs associated with operating from the disaster recovery site? If not, will there be a mechanism—such as a contract amendment or escalation clause—to address cost recovery in such scenarios?

An Amendment would be required for any temporary increases in cost to maintain Service levels that are not currently in the cost proposal.

Section 3.1 Schedule of Events;

Exhibit E, Scope of Work

The Schedule of Events lists an anticipated contract start date of September 1, 2026. Is it HHSC’s intent for the selected vendor to initiate the transition period as of this date, or will there be a separate, defined transition start date preceding full operations? Clarity on this point will assist in resource planning, facility acquisition, and staffing strategies aligned with HHSC’s implementation expectations.

Yes, the anticipated Contract start date, September 2026, will initiate the Transition Phase.

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7 General Question

If a Vendor has an existing TX DIR agreement that covers the services that will be offered in a proposal submitted in response to this solicitation, would HHSC consider using that agreement as the basis for a contract awarded as a result of this solicitation?

No, HHSC will not consider using a TX DIR agreement for the Services set forth in this Solicitation.

Refer to Section 1.1, Introduction, of the RFP. To be considered for award, Respondents must execute Exhibit A, HHS Solicitation Affirmations, Version 2.6 and provide all other required information and documentation as set forth in this Solicitation.

8 Exhibit M, HUB Subcontracting Plan

Will HHSC confirm what the applicable subcontracting goal is?

Refer to Section 1.2, Statewide Annual HUB Utilization Goal, of the Exhibit M, Historically Underutilized Business (HUB) Subcontracting Plan (HSP), to the RFP.

9 Section 5.2 Appendices; Exhibit B, HHS UTCs

In regard to Exhibit B, Section 5.2, if the Contractor intends to offer a software or cloud solution at part of its proposal, will HHSC agree that the Contractor may submit License or Cloud Service Terms for review with their proposal?

Proposing a software or cloud solution is outside the scope of this RFP.

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10 Exhibit D-1, Data Use Agreement - Attachment 2

Will HHSC identify what types of Texas HHS Confidential Information (i.e., HIPAA, CJIS, FTI, CMS, SSA, and/or PII) will be provided to a Contractor awarded a contract?

In the course of performing the Services under the Contract, the Contractor may have access to all types of Confidential Information.

Refer to Exhibits D, Data Use Agreement, Version 8.5, and D-1, Attachment 2 to the DUA, Security and Privacy Inquiry (SPI), Version 2.1.

11 Exhibit O, Federal Assurances Will Federal funds be used to pay for services provided under a contract resulting from this solicitation?

Yes, federal funding supports a portion of the cost of Services provided under a Contract.

12 Exhibit O, Federal Assurances

Does HHSC agree that the following sections are not applicable to Contractors who may provide services under a contract resulting from this solicitation: 1, 7, 12, 13, 14, 15, 16, and 17?

The requirements in sections 1, 7, 12, 13, 14, 15, 16, and 17 of Exhibit O, Federal Assurances – Non-Construction, Version 1.1, are not applicable to a Contract resulting from this RFP.

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13 Exhibit E, Scope of Work

Will HHSC consider amending the RFP for all offerors to include the following industry-standard limitation of liability language?

"Limitation of Liability. Contractor shall not be liable for damages unless such damages resulted from Contractor’s negligence.

Contractor’s maximum liability is the amount paid by HHSC for a discrete project or, if the loss is related to service of an ongoing and continuing nature, six months of fees paid by HHSC for such service. In no event shall either party be liable for any consequential, incidental, special or punitive damages, or for loss of profits or loss of data, regardless of whether an action is brought in tort, contract or under any other theory."

HHSC will not amend the RFP to include the proposed language.

14 Exhibit E, Scope of Work What are the normal operational hours?

Refer to Addendum No. 3.

Standard normal operational hours include Monday through Friday, beginning at 4:30 am, and end times can vary based on the volume and type of mail received daily.

15 Exhibit E, Scope of Work

Would HHSC please provide handle times for the entire process in terms of sorting, opening, and scanning the mail, as well as concurrent and retrospective quality audits handle times.

Refer to Exhibit F, Key Performance Requirements, DP KPR 3, DP KPR 4, DP KPR 5, DP KPR 6, DP KPR 7, and DP KPR 8.

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16 Section 3.1 Schedule of Events The notice of award date and contract start date are September 2026. Would HHSC please provide the transition start date?

Yes, the anticipated Contract start date, September 2026, will initiate the Transition Phase.

17 Section 3.1 Schedule of Events The notice of award date and contract start date are September 2026. Would HHSC please provide the operational start date?

September 2026 is the anticipated date for the Contract start date.

Refer to Section 3.1, Schedule of Events, of the RFP, which states that “[a]ll dates are tentative and HHSC reserves the right to modify these dates at any time. At the sole discretion of HHSC, events listed in the Schedule of Events are subject to scheduling changes and cancellations.”

18 Section 3.1 Schedule of Events Does HHSC expect that the new vendor will begin processing documents on March 1, 2027?

Yes, the Transition Phase (Contract Start Date) will begin on 09/01/2026, with an Operational start date of 02/01/2027.

Refer to Section 3.1, Schedule of Events, of the RFP and Exhibit H, Cost Proposal, to the

RFP.

19 Section 3.5.2 Page Limit and Supporting Documents

May tabs/dividers be excluded from the narrative proposal page count?

Tabs and/or dividers are not counted towards the narrative proposal 150-page limit.

Refer to Section 3.5.2, Page Limit and Supporting Documentation, of the RFP.

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Section 5.2 Appendices, Section

3.5.2 Discrepancies, and Section

3.6.3 Submission Checklist

On page 25, it lists the appendices for Section 5.2 at the end of the solicitation proposal. On page 31, 5.2, it says appendices are end of the narrative proposals. Please confirm that the numerous plans required in Section 5.2 are to be placed at the end of the solicitation response, not at the end of the narrative proposal before the company information.

Refer to Section 5.2, Appendices, of the RFP, which states that “Respondents must include the following appendices at the end of their narrative proposal:”

Section 5.2 Appendices, Section

3.5.2 Discrepancies, and Section

3.6.3 Submission Checklist

Please confirm that the Appendices are excluded from the narrative proposals 150-page limit, as writing to each item in the scope of work will fulfill that limit without the plans.

Section 5.1, Narrative Proposal, of the RFP is subject to 150-page limit. Appendices (Section 5.2 of the RFP) are not counted towards the 150-page limit.

Refer to Section 3.5.2, Page Limit and Supporting Documentation, of the RFP

22 Section 3.5.2 Discrepancies

The narrative proposal requires Bidders to respond using 12-point font. May Bidders use a smaller, still readable font for each of the following:

a) headers and footers

b) RFP requirement text

The narrative proposal should be formatted for 8 ½” x 11” paper with 1-inch margins and typed in Times New Roman, 12-point font.”

Smaller font may be used for page headers and footers, footnotes, and illustrations such as tables, charts, diagrams, figures, and graphs.

Supporting Documentation, of the RFP.

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23 Section 3.5.2 Discrepancies

The narrative proposal requires Bidders to respond using 12-point font. May Bidders use a smaller, still readable font for each of the following:

a) graphics/exhibits/figures

b) tables typed in Times New Roman, 12-point font.”

Smaller font may be used for page headers and footers, footnotes, and illustrations such as tables, charts, diagrams, figures, and graphs.

Refer to Section 3.5.2, Page Limit and Supporting Documentation, of the RFP.

24 Section 3.5.2 Discrepancies and Section 5.1.2 Project Work Plan

Given the details required in the work plan coupled with numerous full draft plans and a 12-point font minimum, may the detailed project work plan be provided in a smaller, yet still readable font?

typed in Times New Roman, 12-point font.”

Smaller font may be used for page headers and footers, footnotes, and illustrations such as tables, charts, diagrams, figures, and graphs

Supporting Documentation.

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Section 7.1 Cost Proposal and Section 7.1 Cost Proposal - Assumptions7.1.1

Cost proposal is required to be separated from the solicitation proposal. Exhibit L is provided in the solicitation proposal. Please confirm that any cost assumptions must be in Exhibit L and will be in the solicitation proposal; not a separate list of cost assumptions in the cost only proposal.

All assumptions, if applicable, must be identified on a single Exhibit L, Assumptions Form. Refer to Section 7.1.1, Cost Proposal - Assumptions, of the RFP which states that “[a]ny assumption, if applicable, must be provided in accordance with Section 3.5.5 (Assumptions).”

See also Section 3.5.5, Assumptions, of the

RFP.

26 Exhibit E, Scope of Work Does the 36 hours include non-business day, weekend, or holidays?

Refer to Section 2.1, Description of Services, of the RFP which states that “Deliverables due dates that fall on a non-business day, weekend, or holiday will be due the next business day following the original due date.”

27 Exhibit E, Scope of Work

Is the requirement to report within 5 minutes from the time the incident occurred or the time of discovery?

Refer to Addendum No. 3.

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28 Exhibit H, Cost Proposal

The yellow highlighted cells in Line No. 1 are locked and do not allow input. Please provide a revised template with these fields unlocked.

An addendum to unlock Line 1 in the Operations tab will be issued.

Refer to Addendum No. 3.

Exhibit H, Cost Proposal

Please confirm if the billable unit is for each weekly report delivered and accepted, or a monthly unit covering multiple reports?

This is a monthly unit cost covering all reports required in this RFP.

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Exhibit Q, Evaluation Tool Please clarify how the reasonableness of proposed pricing and cost allocations will be evaluated. Is this a qualitative evaluation, and if so, what criteria will be used?

The Cost Evaluations will be both subjective and objective.

Refer to Note 6 under Total Price Summary tab of the Exhibit H, Cost Proposal, which states that “[t]he cost proposal with the lowest total cost will receive the highest available rating allocated to the relevant objective cost criterion in the evaluation, if applicable. The percentage allocated to higher-priced proposals will be calculated using the following formula: [1–(total cost– lowest total cost)/highest total cost] x max percentage available for cost criterion.”

The objective cost criteria weight is 15%.

For subjective cost valuations, evaluators will examine the individual cost elements and the proposed profit that comprise the Respondent’s total proposed cost. The subjective cost criteria weight is 15%.

Refer to Exhibit Q, Evaluation Tool, of the

RFP.

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Section 3.5.2 Page limit and Supporting Documentation

Please clarify whether any exceptions submitted in Exhibit K Exceptions Form are included as part of the 150-page Response limit or whether they are considered supporting documentation and thus outside the 150-page limit?

The Exhibit K, Exceptions Form, does not count towards the narrative proposal 150-page limit. Refer to Section 3.5.2, Page Limit and Supporting Documentation, of the RFP.

Section 3.5.4 Expections

Please clarify whether HHSC is willing to negotiate mutually acceptable changes to the terms and conditions in the exceptions submitted, or if HHSC is taking an "all or nothing" approach to accepting or rejecting each exception submitted by Offerors?

HHSC may accept, reject, or negotiate, as needed, any exceptions and assumptions to this Solicitation submitted with the Solicitation Response in accordance with Sections 3.5.4 (Exceptions) and 3.5.5 (Assumptions) of the RFP.

Section 3.5.4 Expections

Please confirm whether Respondents will be permitted by HHSC to withdraw any exception submitted before being rejected as non-responsive on the basis of that submitted exception.

Refer to Section 3.6.5, Modification and Withdrawals, of the RFP.

Section 3.5.6 Binding Offer

Section 3.5.6 states in part, “...all Solicitation Responses constitute binding offers.” Is a Respondent bound to the terms of the RFP as-is, even if a Respondent submits exceptions in Exhibit K?

Refer to Section 3.5.4, Exceptions, of the RFP which states that “[n]o exception, nor any other term, condition, or provision in a Solicitation Response that differs, varies from, or contradicts this Solicitation will be considered to be part of any Contract resulting from this Solicitation unless expressly made a part of the Contract in writing by HHSC.”

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35 Section 3.5.6 Binding Offer

Section 3.5.6 states in part, “...all Solicitation Responses constitute binding offers.” Please confirm that submission of a proposal alone does not constitute a binding contract, and that it becomes binding only upon contract execution.

Refer to Section 3.5.6, Binding Offer, of the RFP which states that “[a] Solicitation Response should be responsive to the Solicitation as worded and without any assumption that any or all terms, conditions, or provisions of the Solicitation will be negotiated. Furthermore, all Solicitation Responses constitute binding offers. Any Solicitation Response that includes any type of disclaimer or other statement indicating that the response does not constitute a binding offer may be disqualified.

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

36 Exhibit B, HHS UTCs;

Article V

Is HHSC willing to negotiate reasonable, mutually acceptable changes to the Article 5 Intellectual Property (IP) provisions to clarify Respondent's ownership and control of its pre-existing/independently developed

IP?

this Solicitation submitted with the Solicitation Response in accordance with Sections 3.5.4 (Exceptions) and 3.5.5

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Section 7.2 Financial Requirements;

Exhibit B, HHS UTCs

If a change in applicable law impacts Respondent pricing or services, such as a required change to accessibility or minimum wage laws, for example, does HHSC intend to allow Respondent to submit a change order request, subject to the approval of the state?

The Contractor shall not charge HHSC additional costs beyond the agreed-upon all-inclusive price unless explicitly approved through a written amendment to the Contract, signed by both parties. In no event shall HHSC be liable for any unapproved costs or expenses incurred by the Contractor.

Refer to Section 4.3.1, Overview of Financial Payment Structures, of Exhibit E, Scope of Work, to the RFP.

38 Exhibit A, HHS Solicitation Affirmation

Section 8 states in part, “Respondent agrees that all exceptions to the Solicitation as well as terms and conditions advanced by Respondent that differ in any manner from HHS’ terms and conditions are rejected unless expressly accepted by System Agency in writing in a fully executed contract.” Is HHSC willing to negotiate mutually acceptable changes to the terms and conditions with the awarded Respondent based on the exceptions submitted?

this Solicitation submitted with the Solicitation Response in accordance with

39 Exhibit E, Scope of Work Is HHSC willing to negotiate a reasonable mutually acceptable limitation of Respondent's liability?

HHSC will not negotiate a reasonable, mutually acceptable limitation of Respondent's liability.

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40 Exhibit B, HHS UTCs Is HHSC willing to include a reasonable cure period in the event of termination for cause?

HHSC may accept, reject, or negotiate, as needed, any exceptions and assumptions to this Solicitation submitted with the Solicitation Response in accordance with

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41 Exhibit B, HHS UTCs

Section 9.4 states in part, “If the System Agency terminates the Contract for cause, the Contractor shall be responsible to the System Agency for all costs incurred by the System Agency and the State of Texas to replace the Contractor.” Please clarify that the Respondent will be liable for such damages only if the contract is terminated by HHSC for cause due to Contractor’s breach.

Refer to Section 9.3, Termination for Cause, of the Exhibit B, HHS Uniform Terms and Conditions – Vendor, Version 3.4, to the RFP which states that “[e]xcept as otherwise provided by the U.S. Bankruptcy Code, or any successor law, the System Agency may terminate the Contract, in whole or in part, upon either of the following conditions:

i. Material Breach The System Agency will have the right to terminate the Contract in whole or in part if the System Agency determines, in its sole discretion, that Contractor has materially breached the Contract or has failed to adhere to any laws, ordinances, rules, regulations or orders of any public authority having jurisdiction and such violation prevents or substantially impairs performance of Contractor’s duties under the Contract. Contractor's misrepresentation in any aspect of Contractor’s Solicitation Response, if any, or Contractor's addition to the System for Award Management (SAM) exclusion list will also constitute a material breach of the Contract.

ii. Failure to Maintain Financial Viability The System Agency may terminate the Contract if, in its sole discretion, the System Agency has a good faith belief that Contractor no longer

HHS0015252 Document Processing Services Page 18 of 22 maintains the financial viability required to complete the Work, or otherwise fully perform its responsibilities under the Contract.”

42 Exhibit B, HHS UTCs Is HHSC willing to negotiate reasonable changes to the indemnity clause in Article X?

HHSC is willing to negotiate reasonable changes to the indemnity clause in Article X of Exhibit B (Uniform Terms and Conditions), but only if such requested changes are submitted in accordance with Sections 3.5.4 (Exceptions) and 3.5.5 (Assumptions) of the RFP.

Exhibit I, HHSC Kofax ES-ECM Mail Channel Flow (Section

3.12.4 Assessment Plan)

To what extent does Kofax Capture support the tracking of operational metrics across all workflow components, including document preparation (prepping), scanning, and quality control? If such metrics are available, could you provide representative examples? If not, would the contractor be expected to furnish the necessary systems and/or reporting tools to support comprehensive workflow monitoring for the project?

Kofax Capture does not support the tracking of operational metrics. Contractor must furnish the necessary systems and/or reporting tools to support comprehensive workflow monitoring for the project.

Refer to Section 3.12.4, Assessment Plans, of Exhibit E, Scope of Work, to the RFP.

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Procurement Library; HHSC Equipment Inventory for DPC;

Offices/QC Area Inventory

The equipment list includes a "Pitney Bowes Machine." Could you please clarify the specific function or purpose of this equipment within the current workflow?

Additionally, will this equipment be retained by the incoming vendor as part of the transition?

The Pitney Bowes Machine is used for mailouts that are necessary as part of document processing services. The Pitney Bowes machine can be used for items such as misrouted mail, returning of originals, and EBT cards received at the DPC. All equipment listed is owned by HHSC and will be part of the transition.

Refer to Exhibit T, Document Processing Center Procedures, to the RFP.

Procurement Library; HHSC Equipment Inventory for DPC;

Offices/QC Area Inventory

It appears; 37 computers are provided from HHSC based on the Equipment inventory list.

a. If more computers are needed, will they be provided by HHSC?

b. How often are computers/laptops upgraded?

The intent is to ensure HHSC’s investments in facilities, hardware, and software for operations covered under this RFP are utilized to full advantage as a way to reduce start up and operating costs.

The Contractor will use existing State assets currently in use in the DPC until the end of the assets recommended life cycle.

Refer to Section 3.9.1, Utilization of Current Investiment, of Exhibit E, Scope of Work, to the RFP.

Procurement Library; HHSC Equipment Inventory for DPC;

Offices/QC Area Inventory

Does the chairs and equipment provided by HHSC meet OSHA standards for ergonomics considerations?

No. Chairs and equipment provided by HHSC are standard issued equipment.

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Procurement Library; HHSC Equipment Inventory for DPC;

Offices/QC Area Inventory

Can you elaborate on what items listed on the equipment Inventory list will transfer to the new vendor?

The Contractor is expected to utilize HHSC equipment while performing the administrative Services to conserve HHSC resources and minimize cost.

Refer to Section 3, Operational Requirements, of Exhibit E, Scope of Work, to the RFP.

48 Procurement Library

The RFP indicates that the selected vendor will be responsible for securing a facility to perform the required services. Can you please clarify whether the vendor will also be responsible for relocating all equipment listed in the DPC Equipment Inventory to the new facility? Additionally, who will bear the financial responsibility for this relocation—the vendor or HHSC?

(1) Yes, the relocation of all equipment listed in the DPC Equipment Inventory to the new facility woud be the responsibility of the awarded contractor, and

(2) The awarded contractor would bear the financial responsibility for this relocation.

The list of additional unallowable costs is as follows: (F.) Employee or facility relocation costs, except as allowed through Contract Amendment.

Refer to Section 4.2.3, Financial Accounting Requirements, of Exhibit E, Scope of Work, to the RFP.

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Exhibit E, Scope of Work (Section 3.9.3 Facility Acquisition)

There is a statement within this section that states, “To fulfill the requirements of this procurement, Contractor will provide a physical and operational facility, both a Primary DPC Facility and DR DPC Facility, from which all services will be provided.

The DR DPC Facility may be provided through a co-location agreement with HHSC’s vendor for Eligibility Services at one of their call center facilities.”

a. Could you please provide the cost associated with the co-location?

Additionally, can you elaborate on the total anticipated expenses the vendor would be responsible for in operating this facility?

b. What is the length of the current lease, and if our company is awarded the contract, how much time will we have to assume operations or take over the lease?

a. The DR DPC Facility is currently co-located at a call center facility located in Athens, Texas where the Eligibility Support Services contractor is the primary tenant. The cost is currently $1,117.53 per month for subleasing through the primary tenant. There are no additional expenses to the current vendor for operating this facility.

b. The current lease is until January 31, 2027, with two one-year options.

Exhibit E, Scope of Work (Section 3.9.3 Facility Acquisition)

Can you explain the difference between DR DPC Facility and DPC Facility?

The Contractor must provide a primary facility from which all Services will be provided under normal circumstances, as well as a backup facility that will be used to continue operations in the event that the primary location is inoperable for any reason.

Refer to Section 5.1.4, Facility Acquisition, of the RFP.

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51 Section 6.8 HUB Subcontracting Plan

HUB Subcontracting Plan states that a response regarding the HSP will be provided at least 8 (eight) business days prior to Deadline for Submission of Solicitation Responses in the Schedule of Events (Section 3.1). Date of Submission of RFP is June 16, 2025. Deadline to submit courtesy HSP review is May 30, 2025 @ 10:00 am.

Please confirm the last date to receive a response from HSS would be Tuesday, June 3, or Wednesday, June 4?

The revised deadline to submit courtesy HSP review is Wednesday, June 11, 2025.

Refer to Addendum 2.

52 Exhibit E, Scope of Work Will the contractor be required to pay for yearly Maintenance contracts for equipment?

Yes, Contractor will be responsible for all cost related to annual maintenance agreements.

Refer to Section 4.3.1, Overview of Financial Payment Structures, of Exhibit E, Scope of Work, to the RFP.