ESBD_414975_1746023583872_HHS0015354 _ RFP IDR Waiver_PDF.pdf

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 1 of 50 Version 2.20 Revision Date 11/20/2024

Cecile E. Young, Executive Commissioner

Request for Proposals (RFP) for

Informal Dispute Resolution (IDR) Waiver

RFP No. HHS0015354

Date of Release: April 30, 2025

Responses Due: May 29, 2025 by 10:30 a.m. Central Time

NIGP Class/Item:

961-05 Arbitration, Mediation, and Alternative Dispute Resolution Services

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 2 of 50

Revision Date 11/20/2024

Table of Contents Article I. Executive Summary, Definitions, and Authority

1.1 Executive Summary

1.2 Definitions

1.3 Authority

Article II. Scope of Work

2.1 Statement of Work

2.1.1 Background

2.1.2 Laws, Rules and Regulations

2.1.3 Description of Services

2.1.4 General Contractor Requirements

2.1.5 Contractor Experience

2.1.6 Agency Requirements

2.1.7 Deliverables

2.1.8 Performance Measure, Sanctions, and Remedies Schedule

2.1.9 Audits and Oversight

2.1.10 Transition Plan

2.1.11 Payments and Invoices

2.1.12 Turnover Plan

2.2 Contract Award, Term, and Historical Compensation

2.2.1 Contract Award and Execution

2.2.2 Contract Term

2.2.3 Historical Compensation

2.3 Data Use Agreement and Security Privacy Inquiry

2.4 No Guarantee of Volume, Usage, or Compensation

Article III. Administrative Information

3.1 Schedule of Events

3.2 Ambiguity, Conflict, or Discrepancy

3.3 Inquiries

3.3.1 Sole Point of Contact

3.3.2 Prohibited Communication

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 3 of 50

Revision Date 11/20/2024

3.3.3 Exception to Sole Point of Contact

3.3.4 Solicitation Questions

3.4 Pre-proposal Conference

3.4.1 Attendance

3.4.2 Conference Logistical Information

3.4.3 Questions at Pre-Proposal Conference

3.5 Solicitation Response Composition

3.5.1 General Information

3.5.2 Page Limit and Supporting Documentation

3.5.3 Discrepancies

3.5.4 Exceptions

3.5.5 Assumptions

3.5.6 Binding Offer

3.6 Solicitation Response Submission and Delivery

3.6.1 Deadline

3.6.2 Submission Option

3.6.3 Submission Checklist

3.6.4 Labeling and Delivery for USB Submission and Other Materials

3.6.5 Modifications and Withdrawals

Article IV. Solicitation Response Evaluation and Award Process

4.1 Conformance with State Law

4.2 Best Value Determination

4.2.1 Selection Methodology

4.2.2 Minimum Qualifications

4.2.3 Initial Compliance Screening

4.2.4 Written Solicitation Response Evaluation

4.2.5 Written Response Evaluation Criteria

4.2.6 Advancement Criteria

4.2.7 Best and Final Offer (BAFO)

4.2.8 Final Written Response Score

4.2.9 Summary of Best Value Determination

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 4 of 50

Revision Date 11/20/2024

4.2.10 Questions or Requests for Clarification

Article V. Narrative/Technical Proposal

5.1 Narrative Proposal

5.1.1 Executive Summary

5.1.2 Experience

5.1.3 Staff Coverage

5.1.4 Deliverables

5.2 Work Plan

5.3 Technical Proposal

Article VI. Required Respondent Information

6.1 Company Information

6.1.1 Company Narrative

6.1.2 Company Profile

6.2 Franchise Tax – Right to Transact Business in Texas

6.3 References

6.4 Major Subcontractor Information

6.5 Affirmations and Certifications

6.6 Other Reports

6.6.1 Dun and Bradstreet Reports

6.6.2 Financial Statements and Financial Solvency

6.6.3 Alternate Report

6.7 Corporate Guarantee

6.8 HUB Subcontracting Plan

6.9 Secretary of State Certification

Article VII. Cost Proposal

7.1 Cost Proposal

Article VIII. General Terms and Conditions

8.1 General Conditions

8.1.1 Changes, Modifications, and Cancellation

8.1.2 Offer Period

8.1.3 Costs Incurred

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 5 of 50

Revision Date 11/20/2024

8.1.4 Contract Responsibility

8.1.5 Public Information Act - Respondent Requirements Regarding Disclosure

8.1.6 Respondent Waiver – Intellectual Property

8.1.7 Standards of Conduct for Vendors

8.1.8 Disclosure of Interested Parties

8.2 Insurance

8.2.1 Required Coverage

8.2.2 Alternative Insurability

8.3 Protest

Article IX. List of Exhibits

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 6 of 50

Revision Date 11/20/2024

ARTICLE I. EXECUTIVE SUMMARY, DEFINITIONS, AND AUTHORITY

1.1 EXECUTIVE SUMMARY

The purpose of this RFP is to solicit proposals from vendors to perform Informal Dispute Resolutions (IDRs) reviews for Texas Home Living (TxHmL) and Home and Community-based Service (HCS) Providers as mandated by House Bill H.B. 2590 of the 85th Texas Legislature. The IDR review process provides Contractor’s recommendations of Provider compliance or non-compliance with applicable requirements. Respondent shall propose, implement, and maintain an IDR process (the “process”) that will achieve HHSC’s goals which is a process that Providers may dispute regulatory violations cited against them by

HHSC.

HHSC PCS will administer the procurement process for this Solicitation, which includes RFP publication, handling of communications from vendors, as well as managing the receipt of Solicitation Responses for review and evaluation.

To be considered for award, a Respondent must execute Exhibit A, HHS Solicitation Affirmations Version 2.6 and provide all other required information and documentation as set forth in this Solicitation.

Information regarding HHSC and its programs is available online and can currently be accessed at HHSC Website Address at https://hhs.texas.gov/

1.2 DEFINITIONS

Refer to Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions (UTC) – Vendor, Version 3.4, and Exhibit C, Health and Human Services (HHS) Additional Provisions, Version 1.0, for additional definitions.

As used in this Solicitation, unless a different definition is specified or the context clearly indicates otherwise, the following terms and conditions have the meanings assigned below:

“Addendum” means a written clarification or revision to this Solicitation issued by HHSC PCS and posted to the ESBD.

“Ad hoc” means reports that are created or done for a particular purpose as necessary to meet business needs.

“Advancement Criteria” means the published criteria for Respondent to advance to the next phase of evaluation if multiple evaluation methods are utilized.

https://hhs.texas.gov/

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 7 of 50

Revision Date 11/20/2024

“Award Consideration (AC) Documents” means documents Respondent must submit as part of the Solicitation Response to be considered for negotiations or award.

“Business Day” refers to any day in which normal business operations of HHSC are conducted. A Business Day excludes Saturday, Sunday, and national and state holidays. A Business Day includes a skeleton crew day and an optional holiday listed on the Texas Comptroller website.

“Contract Term” means the period of time beginning with the commencement date or Effective Date of a Contract and ending when the Contract expires in accordance with its terms, or when it has been terminated.

“Data Warehouse” means is an enterprise data platform used for the analysis and reporting of structured and semi-structured data from multiple data sources, such as point-of-sale transactions, marketing automation, customer relationship management, and more.

“Disinterested Party” means a person who is unbiased or indifferent.

“Effective Date” has the same meaning as the definition in Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4.

“ESBD” means the Electronic State Business Daily, the electronic marketplace where State of Texas bid opportunities over $25,000 are posted. The ESBD may currently be accessed at http://www.txsmartbuy.com/esbd.

“Final Written Response Score” refers to the final scoring of the written response as documented in the Solicitation.

“HHSC” means the Health and Human Services Commission.

“HHSC PCS” means Procurement and Contracting Services (PCS), a division of HHSC.

“Home and Community-based Services” (“HCS”) means a program regulated by the HHSC program that provides individualized services and supports to persons with intellectual disabilities who are living with their family, in their home or in other community settings, such as small group homes.

“HUB” means Historically Underutilized Business, as defined by Chapter 2161 of the Texas Government Code.

“HUB Subcontracting Plan” or “HSP” means written documentation regarding the use of subcontractors, which is required to be submitted with all responses to state agency contracts with an expected value of $100,000 or more where the state agency has determined subcontracting opportunities are probable. The HSP subsequently becomes a provision of the awarded Contract and shall be monitored for compliance by the state agency during the term of the Contract.

https://comptroller.texas.gov/about/holidays.php http://www.txsmartbuy.com/esbd

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 8 of 50

Revision Date 11/20/2024

“Immediate Threat” means a situation that caused, or is likely to cause, serious physical harm or serious emotional harm to an individual, or the death of an individual.

“Informal Dispute Resolution” or “IDR” means the HHSC informal dispute resolution process for Providers to dispute regulatory survey findings.

“Providers” means Texas Home and Community-based Service (HCS) or Texas Home Living (TxHmL) are Providers that participate in the IDR process. These Providers are also regulated by

HHSC.

“Respondent” means the individual or entity responding to this Solicitation.

“Solicitation” means this RFP including all exhibits, attachments, forms, and Addenda, if any.

“Solicitation Consideration (SC) Documents” means documents that must be submitted by Respondent with the Solicitation Response in order to be considered for evaluation and cannot be resubmitted or have errors remedied after the submission due date and time in the Schedule of Events has passed.

“State” means the State of Texas and its instrumentalities, including HHSC , and any other state agency, its officers, employees, or authorized agents.

“Statement of Licensing Violations or Plan of Correction (Form 3724)” means a document that specifies the violation(s) identified during an inspection or investigation by HHSC Regulatory Services. It supports the citation with evidence about how the facility failed to comply with state requirements.

Successful Respondent” means the Respondent awarded a Contract resulting from this RFP.

“Texas Home Living” or “TxHmL” means the HHSC program that provides selected essential services and supports to people with intellectual and developmental disabilities who live in their family homes or their own homes.

“TX-RAMP” means the Texas Risk and Authorization Plan established by DIR that provides a standardized approach for security assessment, authorization, and continuous monitoring of cloud computing services that process the data of a state agency. To become TX-RAMP certified, entities must submit prescribed documentation to DIR. Information regarding TX-RAMP is currently located at: https://dir.texas.gov/texas-risk-and-authorization-management-program-tx-ramp.

“VPTS” means Vendor Performance Tracking System, as defined under Section 2262.055 of the Texas Government Code and Title 34 of the Texas Administrative Code Part 1, Chapter 20, Subchapter B, Division 2, Rule §20.115 and Subchapter F, Division 2, Rule §20.509.

https://dir.texas.gov/texas-risk-and-authorization-management-program-tx-ramp https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2262.htm#2262.055 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=115 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=509

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 9 of 50

Revision Date 11/20/2024

1.3 AUTHORITY

HHSC is soliciting the Services stated in this Solicitation under the authority of Texas Government Code Section 2155.144(b), (b-1)(2) and in accordance with Texas Government Code Section 531.058(a-1) which requires that HHSC establish an informal dispute resolution process and contract with an appropriate disinterested person to adjudicate certain disputes.

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 10 of 50

Revision Date 11/20/2024

ARTICLE II. SCOPE OF WORK

2.1 STATEMENT OF WORK

2.1.1 Background

HHSC provides an Informal Dispute Resolution (IDR) process for Texas Home Living (TxHmL) and Home and Community-based Service (HCS) Providers as mandated by House Bill H.B. 2590 of the 85th Texas Legislature, Regular session. Through this process, these Providers may dispute violations cited against them by HHSC. More information specific to the State of Texas Providers can be found here: Long-term Care Providers | Texas Health and Human Services.

The IDR process is the appeal process offered to the HCS/TxHmL providers after they are cited for regulatory violations by HHSC Regulatory Services.

The Contractor will provide an informal review of violations by HHSC Regulatory Services requested by HCS and/or TxHmL Providers (herein referred to collectively as “Providers”). These reviews are limited to findings related to the violation against the Provider and do not include associated penalties or enforcement actions. Contractor must complete each IDR within 25 calendar days specified legal deadlines, regardless of complexity.

2.1.2 Laws, Rules and Regulations

The IDRs conducted must comply with all applicable federal and State laws and policies, including but not limited to: Medicaid Home and Community-based Services (“HCS”) waiver program as authorized in Section 1915(c) of the Social Security Act (42 U.S.C.

1396n); Health Insurance Portability and Accountability Act (“HIPAA”) of 1996 (45 Code of Federal Regulations Part 160 and Part 164); Texas Human Resources Code Chapter 161; 1 TAC pt. 15 Ch 393 §§ 393.1-393; and any other rules or policies adopted concerning HCS and TxHmL Providers.

2.1.3 Description of Services

2.1.3.1 HHSC Receipt of IDR Request Form

a. Provider receives an official Statement of Licensing Violations (Form 3724) from the State Survey Agency or its designee.

b. The HHSC IDR Department must receive a Provider's written request for an IDR no later than the 10th calendar day after the receipt of the official Statement of Licensing Violations (Form 3724). The Provider must submit its written request for https://www.hhs.texas.gov/providers/long-term-care-providers https://www.ssa.gov/OP_Home/ssact/title19/1915.htm https://www.govinfo.gov/content/pkg/PLAW-104publ191/pdf/PLAW-104publ191.pdf https://statutes.capitol.texas.gov/Docs/HR/htm/HR.161.htm https://texreg.sos.state.tx.us/public/readtac$ext.ViewTAC?tac_view=4&ti=1&pt=15&ch=393&rl=Y

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 11 of 50

Revision Date 11/20/2024 an IDR on the form designated for that purpose by HHSC. HHSC makes that form publicly available, e.g., maintained on the HHSC website. The IDR Request Form for Waiver Providers Form can be found using this link: Informal Dispute Resolution Process | Texas Health and Human Services

c. The submission of the IDR Request Form to the HHSC IDR Department initiates the IDR review process.

2.1.3.2 Informal Dispute Resolution Process

a. Within three (3) Business Days of HHCS’s receipt of the IDR request, HHSC notifies the Contractor and the Provider of its receipt of the request.

b. Provider must submit a written rebuttal letter with attached supporting documentation to the Contractor for review within five (5) calendar days receipt.

c. Contractor will offers the Provider the option of a desk review or conference. All review options for the IDR process must be free of charge to the Provider.

1. If a conference is requested, Contractor schedules the IDR conference on or before the 22nd calendar day after IDR request is received. If the Provider is unable to participate on the scheduled date, the IDR conference is then cancelled, and the IDR continues as though no conference had been requested.

2. The Provider and the State Survey Agency may attend any IDR conference, but neither party may present information that was not previously included in The Statement of Licensing Violations, submitted in the Provider's rebuttal letter, or responses to shared information.

d. All IDR timeframes to be computed in accordance with Texas Government Code Section 311.014.

e. Contractor will provide two personnel for two (2) levels of review for each IDR completed. The first level of review will be a comprehensive review performed by a reviewer who has regulatory expertise in areas that include, but are not limited to, medicine; nursing; and building, fire, and life safety codes. The second level of review must be performed by a person with a position of oversight to ensure a sound review with appropriate recommendations of compliance or non-compliance with applicable requirements.

f. Contractor must distribute a comprehensive written record to HHSC that details the outcome of the IDR review within twenty-five (25) calendar days after submission of the IDR request by the Provider. Upon completion of the review, Contractor must also submit all documentation used in the review process to HHSC. At a minimum, https://www.hhs.texas.gov/business/contracting-hhs/informal-dispute-resolution-process https://www.hhs.texas.gov/business/contracting-hhs/informal-dispute-resolution-process https://statutes.capitol.texas.gov/Docs/GV/htm/GV.311.htm#311.014:%7E:text=Sept.%201%2C%201985.-,Sec.%20311.014.,-COMPUTATION%20OF%20TIME https://statutes.capitol.texas.gov/Docs/GV/htm/GV.311.htm#311.014:%7E:text=Sept.%201%2C%201985.-,Sec.%20311.014.,-COMPUTATION%20OF%20TIME

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 12 of 50

Revision Date 11/20/2024

Contractor must submit the Provider's rebuttal letter, supporting documentation, and any other materials used in the decision-making process.

2.1.3.3 Possible IDR Outcomes

Contractor will provide a recommendation for each violation requested in the IDR per TAC 393.(h). Possible outcomes of an IDR are as follows:

a. a determination that there is insufficient evidence to sustain a violation;

b. a determination that there is insufficient evidence to sustain a portion of, or a finding of, a violation;

c. a determination that there is sufficient evidence to sustain a violation;

d. a determination that there is insufficient evidence to sustain the violation as cited but that there is sufficient evidence to sustain a different violation;

e. a determination that there is insufficient evidence to sustain the severity and scope assessment but that there is sufficient evidence to sustain a reduced severity and scope assessment (for Immediate Threat only); or

f. a determination that there is sufficient evidence to sustain the severity and scope assessment as cited.

2.1.4 General Contractor Requirements

a. Contractor must be a disinterested person as per Texas Human Resources Code 161.0892

b. Contractor is responsible to provide adequate ongoing training for the Contractor's staff conducting IDRs on current State and federal requirements, guidelines, and standards of practice.

c. Contractor will begin to receive IDR requests and must ensure implementation by the operational start date (sixty (60) calendar days after the Contract Execution). The project will continue in accordance with the Contract Term.

d. Contractors must have the ability to evaluate and complete each requested IDR as described in Section 2.1.3, Description of Services, within 25 calendar days, regardless of complexity.

e. Contractor will review all materials submitted by the Provider via preferred online portal and must be in compliance with Data Warehouse requirements (Section 2.1.8.2).

https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=1&pt=15&ch=393&rl=3 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=1&pt=15&ch=393&rl=3 https://statutes.capitol.texas.gov/Docs/HR/htm/HR.161.htm#:%7E:text=September%201%2C%202021.-,Sec.%20161.0892.,-INFORMAL%20DISPUTE%20RESOLUTION

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 13 of 50

Revision Date 11/20/2024

f. Contractor will Provide (HHSC IDR Department) with a report that reflects the review, findings, and recommendation from the contractor.

g. Contractor must provide key staffing profiles and resumes for all key staff who will be responsible for the performance of the Services requested under this Solicitation.

h. Contractor must maintain adequate staff coverage throughout entire Contract term.

2.1.5 Contractor Experience

Contract must have five (5) years’ experience performing unbiased Informal Dispute Resolution (IDR) reviews., The Contractor staff must have:

a. Relevant experience with HCS and TxHmL Providers; and

b. Relevant knowledge of the applicable State and federal regulations for the Providers in Texas; and

c. 3 years’ demonstrated regulatory expertise (thorough knowledge and understanding of applicable regulations and compliance requirements) ) in areas that include, but are not limited to:

1. Medicine;

2. Nursing; and

3. Building, fire, and life safety codes

Certifications, registrations, licenses, and permits are not required for the above experience for Section 2.1.5 (c) (1-3)). If Contractor staff performing IDR’s has certifications, registrations, licenses, and permits required by State law, as well as the profession, they must remain in good standing during the period of the Contract. Contractor must maintain an adequate staffing profile and organizational structure that supports sound unbiased reviews that are supported by applicable regulatory requirements and standards of practice.

2.1.6 Agency Requirements

a. HHSC will receive IDR request forms from Providers and will provide them to Contractor.

b. HHSC may deny an IDR request if the information submitted is incorrect, incomplete, or otherwise not in compliance with applicable HHSC operating procedures.

c. HHSC may issue and enforce operating procedures concerning the IDR process and

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 14 of 50

Revision Date 11/20/2024 the conduct of IDR Providers. IDR Providers must comply with any such procedures.

d. HHSC will provide a point of contact to the Contractor.

e. HHSC shall provide the Contractor with the IDR Request Form within two (2) Business Days of HHSC’s receipt of a timely request for an IDR.

f. HHSC shall also provide the Contractor with the official Form 3724 for the alleged violations(s).

2.1.7 Deliverables

2.1.7.1 Reports

Contractor will be required to provide HHSC IDR Department with a monthly report that contains the following criteria below:

a. Contractor must report the following information monthly to HHSC and must comply with requirements of Section 2.1.7.2 (Data Warehouse):

1. The number of IDR requests received;

2. The number of IDR requests denied;

3. The number of IDR requests withdrawn;

4. The number of IDR cases completed;

5. The total number of violations reviewed;

6. The number of violations deleted entirely;

7. The number of violations partially deleted;

8. The number of violations with modified severity/scope;1

9. The number of violations moved from one citation to another; and

10. Percent of IDRs completed within statutory timeframes.

b. Contractor must provide HHSC with reports that include specific identifying information for all IDR requests. The reporting requirements described in this section are required to evaluate performance. No additional compensation will be provided

1 Only immediate jeopardy or immediate threat violations will be eligible for severity/scope review.

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 15 of 50

Revision Date 11/20/2024 for providing reports. Designated forms for these reporting requirements will be provided to Contractor within ten (10) Business Days after Contract Execution.

2.1.7.2 Data Warehouse

The Contractor must track and retrieve all data related to all IDRs, including ad hoc reports, as requested by HHSC. System/website used to track, retrieve and create ad hoc reports must be in compliance with the following:

a. Contractor must provide its own system/website portal that will have ability to track, retrieve and create ad hoc report for IDR’s.

b. Portal provided by Contractor must be secure as PII (Personally Identifiable Information) will be present at times.

c. The portal must:

1. Be accessible through standard web browsers, such as Microsoft Edge, Google Chrome, and Mozilla Firefox.

2. Allow for easy access that is compatible with Single Sign On (SSO).

3. Include role-based security provisioning that conditions the levels of access available to different categories of users.

4. Allow File Transfer Portals Secure (FTPs) to upload and submit large amounts of documents.

5. Be complaint with all Texas Department of Information Resources (DIR) requirements. Also, Contractor must obtain TX Ramp Level II as PII information will be present prior to Contract Execution.

2.1.7.3 DCS Hosting or DCS Exemption

All hosted solutions offered in response to this RFP (including custom developed application, COTS, and Portal or Website managed content) must host the application or solution in the DCS program, using either public or private cloud computing and DCS managed services provided unless otherwise approved by DIR through a Data Center Services Exemption. Contractor shall provide services that comply with DCS hosting or obtain a DCS (DIR) exception per Exhibit N, Data Center Services.

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 16 of 50

Revision Date 11/20/2024

If Contractor moves to a cloud-based system, Texas Government Code Section 2054.391 requires State agencies included in the Data Center Services (DCS) program to use such services, unless otherwise approved by DIR through a Data Center Services Exemption.

2.1.7.4 Texas Risk and Authorization Management Plan

If Contractor uses a cloud-based system, Contractor shall provide Services that comply with TX- RAMP Certification Level Two. Contractor acknowledges that TX-RAMP Provisional Status does not satisfy the TX-RAMP Certification Level One requirement.

2.1.7.5 System Security and Disaster Recovery

Respondents must detail their approach to security architecture, including the development and implementation measures that will provide security and protection for the system. This includes the proposed backup and recovery processing approach, and proposed virus protection strategy.

Respondents should describe their general approach to reestablishing operations in the event of a catastrophe, as well as their approach to providing HHSC with a Disaster Recovery Plan.

Respondents must provide specifications on any hardware and software components utilized by the proposed security and disaster recovery solutions.

2.1.7.6 Disaster Recovery Plan and Test

Contractor, must provide their Disaster Recovery Plan within ten (10) days of contract execution for HHSC review and approval.

Contractor, for no additional compensation, shall conduct on an annual basis a Disaster Recovery test to assess the effectiveness of the Contractor’s Disaster Recovery Plan. On or before the ninetieth (90th) calendar day following each Disaster Recovery test, Contractor will provide HHSC, with a written summary report detailing the results of the Disaster Recovery Test. Upon HHSC written request, Contractor shall make Contractor personnel available to discuss with HHSC, the results of the Disaster Recovery test. Contractor shall use commercially reasonable efforts to resolve issues identified during the Disaster Recovery test and, for each unsuccessful test, Contractor shall conduct an additional Disaster Recovery test in a timely manner to validate the successful implantation of Contractor’s remediation activities.

2.1.7.7 Revisions

Contractor must recommend revisions to an IDR outcome as a result of a review determining that the IDR outcome violates a law or regulation.

2.1.8 Performance Measure, Sanctions, and Remedies Schedule

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 17 of 50

Revision Date 11/20/2024

2.1.8.1 General

Section 2261.101 of the Texas Government Code requires that all state contracts contain a remedies schedule, a graduated remedies schedule, or both. In accordance with that statutory requirement, sanctions and remedies will apply for the incidents specified in this section. This Solicitation will refer to the sanctions and remedies as “sanctions.”

2.1.8.2 Assessment of Sanctions

Once HHSC has determined to assess sanctions, HHSC may notify the Contractor of the assessment(s). Failure to notify does not affect HHSC’s right to assess sanctions, HHSC will withhold sanctions from payments to Contractor. If HHSC is unable to withhold payments, HHSC will demand payment of sanctions from Contractor. Contractor must make payment within 30 calendar days of HHSC’s demand. If Contractor fails to pay within the 30-day period, HHSC may pursue collection of the sanctions in accordance with State laws and the terms of the Contract.

2.1.8.3 Severability of Individual Sanctions Clause

If any portion of this sanctions provision is determined to be unenforceable, the other portions of this provision shall remain in effect.

2.1.8.4 Sanctions Matrix

No. Performance Standard

Measurement Period

Measurement Assessment

Sanction

1. Contractor must submit the IDR case file to HHSC by the 25th calendar day of the IDR process.

Ongoing Each calendar day of noncompliance

The failure of Contractor to submit IDR case files to HHSC by the 25th calendar day of the start of the IDR process may result in Contractor being assessed sanctions up to $100 per business day, or portion thereof, that the IDR case file is late.

2. Contractor must meet all confidentiality standards, under applicable State and federal laws, rules, regulations and the Contract’s requirements.

Ongoing Per incident The failure of Contractor to meet all confidentiality standards under applicable State or federal laws, rules and regulations, and terms of the Contract may result in Contractor being assessed sanctions up to $500 for each incident.

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 18 of 50

Revision Date 11/20/2024

3. Contractor must submit required report by the 3rd calendar day of each month on the template provided by HHSC.

Monthly Per incident of noncompliance

The failure of Contractor to submit required reports to HHSC by the 3rd calendar of each month on the template provided by HHSC may result in Contractor being assessed sanctions up to $100 per day or portion thereof, for each day a report is late.

4. Submitted required reports must be accurate.

Monthly Per incident of noncompliance

The failure of Contractor to submit an accurate report to HHSC may result in Contract being assessed sanctions up to $100 per incident.

2.1.8.6 Sanction Waiver for Good Cause

Sanctions may be waived at the discretion of HHSC. Contractor shall not be liable for any failure or delay in the performance of the Contract for the period that such failure or delay is beyond the reasonable control of the Contractor.

2.1.9 Audits and Oversight

HHSC will monitor the Contractor to ensure compliance with all applicable federal and State laws and policy. Any information related to an IDR, the performance of the Contract, or other documentation deemed necessary by HHSC must be provided to HHSC as requested.

2.1.10 Transition Plan

a. Contractor must submit a Transition Plan to HHSC for approval within ten (10) Business Days of Contract Execution. The Contractor must be the lead in coordinating and facilitating all transition activities. The transition must meet general industry standards.

The Transition Plan must explain the proposed approach for an orderly and expeditious transition of Services from the outgoing service provider. The transition to the new provider must be completed within two months (60 days) of Contract Execution.

b. The Transition Plan must be submitted to HHSC for approval.

c. The Transition Plan, at a minimum, must include the following:

1. A schedule for transition activities, with timelines and milestones specified for key tasks;

2. A staffing plan to support transition tasks, including knowledge transfer activities;

3. A description of the roles and responsibilities of Contractor personnel, including Subcontractors, during the transition;

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 19 of 50

Revision Date 11/20/2024

4. A risk register for the transition that identifies potential risks, prioritizes the risks based on probability and impact, and establishes appropriate risk mitigation strategies;

5. A communication plan to facilitate interaction between Contractor, HHSC, and the outgoing service provider during the transition activities; and

6. Any assumptions and dependencies related to transition

2.1.11 Payments and Invoices

HHSC anticipates it will pay the Contractor a set fee per IDR violation reviewed. The set fee will include all anticipated costs incurred by the Contractor. See (Section 7.1 Cost Proposal).

2.1.12 Turnover Plan

Turnover is defined as those activities required to transition contract operations to HHSC or a subsequent contractor upon termination, cancellation, or expiration of the Contract.

Contractor will complete the following turnover services:

a. Six (6) months prior to the end of the base Contract Term or any extension thereof, Contractor must develop, submit, and implement HHSC approved Turnover Plan covering the transition of Contract requirements to HHSC, its designee(s), or a successor vendor.

b. The Turnover Plan must be supplied in the manner and format required by HHSC and must contain comprehensive information detailing the proposed schedule, activities, operational support, and resource requirements associated with the turnover tasks outlined below. HHSC reserves the right to have the Contractor submit an updated Turnover Plan one (1) month prior to the end of the base contract or any extension thereof. HHSC reserves the right to require additional information or modify the turnover schedule as necessary. Proprietary software programs will not be required to be delivered to HHSC pursuant to these Turnover Requirements.

c. As part of the Turnover Plan, the Contractor must provide HHSC with copies of all relevant data and documentation related to the contract, including:

1. Copies of working papers, including procedures, programs, reports, and schedules;

2. Status and documentation of any outstanding reviews, actions or items;

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 20 of 50

Revision Date 11/20/2024

3. Detailed descriptions of functional business processes and workflows, including functional descriptions of technology solutions such as the inventory management system.

2.2 CONTRACT AWARD, TERM, AND HISTORICAL COMPENSATION

2.2.1 Contract Award and Execution

HHSC intends to award one (1) Contract as a result of this Solicitation. Any award is contingent upon approval of the HHSC Executive Commissioner or designee.

If, for any reason, a final Contract cannot be executed with the Respondent selected for award within 30 days of HHSC's determination to seek to contract with that Respondent, HHSC may negotiate a Contract with the next highest scoring Respondent or may withdraw, modify, or partially award this Solicitation.

2.2.2 Contract Term

The initial term of any Contract resulting from this Solicitation will be three (3) years. HHSC, at its sole option, may extend any Contract awarded pursuant to this Solicitation for up to two (2) additional years.

Notwithstanding the limitation in the preceding paragraph and with at thirty (30) calendar days’ advance written notice to Contractor, at the end of the initial term or any extension period, HHSC, at its sole discretion, may extend the Contract as necessary to ensure continuity of service, for purposes of transition, or as otherwise determined by HHSC, to serve the best interest of the State for up to twelve (12) months, in one-month intervals, at the then-current contract rate or rates (if applicable) as modified during the Contract Term.

2.2.3 Historical Compensation

Historical compensation under Contracts with similar scope and size to this Solicitation has been approximately $975,000.00 per fiscal year. Notwithstanding Section 2.2.3 (Historical Compensation), HHSC reserves the right to adjust any projected amount based on State or federal funding during the term of a resulting Contract.

2.3 DATA USE AGREEMENT AND SECURITY PRIVACY INQUIRY

By entering into a Contract with HHSC as a result of this Solicitation, Respondent agrees to be bound by the terms of the Data Use Agreement (DUA), Version 8.5, attached as Exhibit D.

Respondents must complete and return with their Solicitation Response Exhibit D-1, Attachment 2 to the DUA, Security and Privacy Inquiry (SPI), Version 2.1.

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 21 of 50

Revision Date 11/20/2024

2.4 NO GUARANTEE OF VOLUME, USAGE, OR COMPENSATION

HHSC makes no guarantee of volume, usage, or total compensation to be paid to any Respondent under any awarded Contract, if any, resulting from this Solicitation. Any awarded Contract is subject to appropriations and the continuing availability of funds.

HHSC reserves the right to cancel, make partial award, or decline to award a Contract under this Solicitation at any time at its sole discretion.

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 22 of 50

Revision Date 11/20/2024

ARTICLE III. ADMINISTRATIVE INFORMATION

3.1 SCHEDULE OF EVENTS

EVENT DATE/TIME

Solicitation Posting Date to ESBD April 30, 2025

Pre-proposal Conference and HSP Training Attendance is Optional

May 5, 2025 at 10:00 a.m.

Central Time

Deadline for Submitting Questions or Requests for Clarification

May 8, 2025 at 10:00 a.m.

Central Time

Tentative Date Responses to Questions or Requests for Clarification Posted on ESBD

May 15, 2025

Deadline for Courtesy HSP Review Optional May 16, 2025 at 5:00 p.m.

Central Time

Deadline for Submission of Solicitation Responses [NOTE: Responses must be RECEIVED by HHSC by the deadline.]

May 29, 2025 at 10:30 a.m.

Central Time

Evaluation Period June 2025

Anticipated Notice of Award September 2025

Anticipated Contract Start Date October 2025

Respondents must submit their Solicitation Responses to HHSC in accordance with the due date and time indicated in this Schedule of Events or as changed via an Addendum posted to the ESBD.

NOTE: All 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 cancellation. Scheduling changes or cancellation determinations made prior to the deadline for submission will be published by posting an Addendum to the ESBD. After the deadline for submission, if there are delays that significantly impact the anticipated award date, HHSC, at its sole discretion, may post updates regarding the anticipated award date to the

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 23 of 50

Revision Date 11/20/2024

Procurement Forecast on the HHS Procurement Opportunities web page. Each Respondent is responsible for checking the ESBD and Procurement Forecast for updates.

By submitting a Solicitation Response, Respondent represents and warrants that any individual submitting the Solicitation Response and any related documents on behalf of the Respondent is authorized to do so and to bind the Respondent under any Contract that may result from this Solicitation.

3.2 AMBIGUITY, CONFLICT, OR DISCREPANCY

Respondent must notify the Sole Point of Contact (Section 3.3.1) of any ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error in the Solicitation in the manner and by the deadline described in Section 3.3.4 (Solicitation Questions).

Respondent submits a Solicitation Response at its own risk.

If Respondent fails to properly and timely notify the Sole Point of Contact (Section 3.3.1) of any ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error in the Solicitation, Respondent, whether awarded a Contract or not:

a. Waives any claim of error or ambiguity in the Solicitation and any resulting Contract;

b. Must not contest the interpretation by HHSC of such provision(s); and

c. Is not entitled to additional compensation, relief, or time by reason of ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error or its later correction.

3.3 INQUIRIES

3.3.1 Sole Point of Contact

All requests, questions, or other communication about this Solicitation shall be made in writing to HHSC PCS, addressed to the person listed below (Sole Point of Contact). Additionally, a phone number is provided for purposes such as instructing a potential Respondent through an IT system or website referenced in this Solicitation. Communications via telephone are not binding.

The Sole Point of Contact will authorize a secondary Sole Point of Contact in the event of their absence and, in such an event, will include the contact information for the secondary Sole Point of Contact in their automatic reply out-of-office e-mail message. Respondents seeking to contact the Sole Point of Contact should do so via e-mail in order to receive updated contact information.

https://hhs.texas.gov/doing-business-hhs/contracting-hhs/procurement-opportunities https://hhs.texas.gov/doing-business-hhs/contracting-hhs/procurement-opportunities

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 24 of 50

Revision Date 11/20/2024

Name Joseph Recio CTCM, CTCD

Title Contract Specialist

Address Procurement and Contracting Services Building 1100 W 49th St. MC: 2020 Austin, TX 78756

Phone 512-406-2598

Email Joseph.Recio@hhs.Texas.gov

See also, Section 3.3.3 (Exception to Sole Point of Contact) below.

3.3.2 Prohibited Communication

Except as provided in Section 3.3.1 (Sole Point of Contact) and Section 3.3.3 (Exception to Sole Point of Contact), potential Respondents and Respondents are prohibited from any communication with HHSC regarding the Solicitation. HHSC, its representative(s), and partners will not answer any questions or otherwise discuss the contents of this Solicitation with any potential Respondent or its representative(s). Attempts to ask questions by phone or in person will not be allowed or recognized as valid. Respondent shall rely only on written statements issued by or through HHSC designated staff as provided by Section 3.3 (Inquiries). This restriction does not preclude discussions between affected parties for the purposes of conducting business unrelated to this Solicitation. Failure to comply with these restrictions may result in disqualification of Respondent's Solicitation Response.

3.3.3 Exception to Sole Point of Contact

Exceptions to Section 3.3.1 are as follows:

a. Respondents with questions relating to the HUB Subcontracting Plan are permitted to direct those questions to the HUB coordinator at Bob.McCurdy@hhs.texas.gov.

b. Where it is expressly directed by the Sole Point of Contact that another designated HHSC representative may speak to the Respondent, such as during Contract negotiations. Respondents are required to ensure that communications have been authorized by the Sole Point of Contact before engaging in such communication. Failure to comply with this requirement may result in the disqualification of a Respondent’s Solicitation Response.

mailto:Joseph.Recio@hhs.Texas.gov mailto:Bob.McCurdy@hhs.texas.gov

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 25 of 50

Revision Date 11/20/2024

3.3.4 Solicitation Questions

HHSC will allow written questions and requests for clarification regarding this Solicitation.

Questions must be submitted by e-mail to the Sole Point of Contact (Section 3.3.1) by the deadline established in Section 3.1 (Schedule of Events). Responses to questions or other written requests for clarification will be consolidated and posted to the ESBD and will not be provided individually to requestors.

HHSC reserves the right to amend answers previously posted, prior to the Solicitation response deadline (Section 3.1). Amended answers will be posted on the ESBD. It is the Respondent's responsibility to check the ESBD. HHSC also reserves the right to provide a single consolidated response to all similar questions at the agency’s sole discretion.

a. All questions and requests for clarification must include the following information:

1. Solicitation number;

2. Solicitation package reference (page number, section, and exhibit or attachment, if applicable;

3. Question topic (e.g., “Schedule of Events,” or “Exhibit L, Cost Proposal”); and

4. Question for HHSC.

b. Requestor contact information below must be included in the body of the e-mail and submitted with the question(s):

1. Company name;

2. Company representative name;

3. Phone number; and

4. E-Mail address.

Questions or requests for clarification received after the deadline in Section 3.1 (Schedule of Events), may be reviewed by HHSC but may not be answered. Only answers to questions submitted to the Sole Point of Contact in writing, in accordance with this section, are binding.

3.4 PRE-PROPOSAL CONFERENCE

3.4.1 Attendance

HHSC PCS will conduct a pre-proposal conference via webinar. Attendance is optional but highly recommended as the pre-proposal conference will include the training on the proper completion of the HUB Subcontracting Plan. See Section 6.8 (HUB Subcontracting Plan).

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 26 of 50

Attendees to virtual pre-proposal conferences are required to send an email to the Sole Point of Contact (Section 3.3.1), advising of participation in the pre-proposal conference. The attendee’s e-mail must provide the following:

a. The legal business entity name which will be used if submitting a proposal;

b. The name of each representative on the call; and

c. The e-mail address for the entity’s point of contact.

Attendees will receive a reply e-mail containing the log-in information for the pre-proposal conference.

3.4.2 Conference Logistical Information

HHSC PCS will hold the pre-proposal or webinar on the date and time set out in Section 3.1 (Schedule of Events).

People with disabilities who wish to attend the meeting and require auxiliary aids or services should contact the Sole Point of Contact identified in Section 3.3.1 (Sole Point of Contact), at least seventy-two (72) hours before the meeting in order to have reasonable accommodations made by HHSC.

Pre-proposal Microsoft Teams Information:

HHSC will broadcast the pre-proposal conference via Microsoft Teams at the date and time listed in Section 3.1 (Schedule of Events).

Participants must register for the pre-proposal conference via Microsoft Teams prior to the event according to Section 3.4 (Pre-Proposal Conference). After registration, participants will receive another e-mail with the link to the Microsoft Teams pre-proposal conference meeting.

By telephone:

Participants may call-in to the pre-proposal conference using the information below and use a telephone as the speaker and microphone when attending the pre-proposal conference via Microsoft Teams.

United States: +1 (512) 580-4366/192255470#

Pre-proposal conference phone ID: To be provided to registered participants via e-mail.

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 27 of 50

Revision Date 11/20/2024

Participant must register for the webinar conference prior to the event using the following link:

https://events.teams.microsoft.com/event/99acab74-9d50-4e04-ad2d-823c25df1715@9bf97732- 82b9-499b-b16a-a93e8ebd536b

3.4.3 Questions at Pre-Proposal Conference

a. Reference Section 3.3.4 (Solicitation Questions) for the required format and information to be provided for submission of questions and requests for clarification.

b. Attendees may submit questions in writing at the conference. All questions must be in the required format and include the information as referenced in Section 3.3.4 (Solicitation Questions).

c. During the conference, HHSC may provide responses to questions and requests for clarification, but only written responses posted by HHSC PCS as an Addendum to the Solicitation on the ESBD will be considered an official, binding update to the Solicitation.

d. HHSC reserves the right to amend, prior to the Solicitation Response Deadline, answers previously posted. Amended answers will be posted on the ESBD. Notification of posting will be in accordance with Section 3.1 (Schedule of Events).

e. Conversations with HHSC program area staff before or after the pre-proposal conference are prohibited.

3.5 SOLICITATION RESPONSE COMPOSITION

3.5.1 General Information

Failure to submit all required Solicitation Response documents in the required format(s) may result in disqualification of the Solicitation Response without further consideration (Section 3.6.3, Submission Checklist). Respondent shall prepare a Solicitation Response that clearly and concisely represents its qualifications and capabilities. Expensive bindings, colored displays, promotional materials, etc. are not necessary or desired. Respondent should focus on the instructions and requirements of the Solicitation.

3.5.2 Page Limit and Supporting Documentation

The narrative/technical proposal should not exceed thirty (30) pages and should be formatted for 8 ½" x 11" paper with 1-inch margins and typed in Times New Roman, 12-point font. If complete responses cannot be provided without referencing supporting documentation, such documentation must be provided with the Solicitation Response, with specific reference made to the file, page, section, and/or paragraph where the supporting information can be found.

https://events.teams.microsoft.com/event/99acab74-9d50-4e04-ad2d-823c25df1715@9bf97732-82b9-499b-b16a-a93e8ebd536b https://events.teams.microsoft.com/event/99acab74-9d50-4e04-ad2d-823c25df1715@9bf97732-82b9-499b-b16a-a93e8ebd536b

PCS 550 HHS RFP/RFO RFP/RFO No. HHS0015354 Page 28 of 50

Revision Date 11/20/2024

3.5.3 Discrepancies

In the event of any discrepancies or variations between copies, HHSC is under no obligation to resolve the inconsistencies and may make its scoring and selection decisions, accordingly, including the decision to potentially disqualify a Solicitation Response.