ESBD_427037_1749495134444_304-25-1161AM Identity Gov Access Mgmt.pdf

RFO # 304-25-1161AM Identity Governance and Administration SW & Svcs Page 1 of 42 Rev. 9/8/2023

Texas Comptroller of Public Accounts

Glenn Hegar, Comptroller

Request for Offers

Identity Governance and Administration

Software License and Related Services

RFO No. 304-25-1161AM

Issuance Date: June 9, 2025

Anticipated Schedule of Events

June 9, 2025 Issuance of RFO

June 18, 2025 Deadline for Submission of Questions (2:00 p.m., CT)

June 25, 2025 Release of Official Responses to Questions

(or as soon thereafter as practical)

July 9, 2025 Deadline for Submission of Offers (2:00 p.m. CT)

Late Offers will not be considered

Aug. 1, 2025 Services Commencement Date

(or as soon thereafter as practical)

RFO # 304-25-1161AM Identity Governance and Administration SW & Svcs Page 2 of 42 Rev. 6/27/23

Table of Contents

I. Summary

II. Specifications

A. Introduction

B. Background

C. Definitions and Acronyms

D. Scope of Services

E. Contract Resulting From This Solicitation; Order of Priority

F. Warranty of Performance

G. Security Incident Notification

H. Insurance and Bonds

I. Criminal Background Investigation

J. Contract Term

K. Invoice Acceptance Criteria

L. Payments

M. Discounts

N. PO Addition and Deletion

O. HUB Subcontracting Plan Information

P. Respondent Documents

Q. Respondent Exceptions

R. Respondent’s Past Performance

III. Offer Submission Requirements

A. Delivery of Offer

B. Offer Content and Format

IV. Mandatory Price Sheet

V. Standard Terms and Conditions

VI. Execution of Offer

VII. Conflict of Interest/Disclosure Statement

VIII. Nondisclosure Agreement

IX. Confidential Treatment of Information Acknowledgment

X. Certification Regarding Public Nature of the Offer

XI. Respondent Exceptions Response Template

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I. Summary

1. Type of Solicitation: Request for Offers (RFO)

2. Issuing Office: Texas Comptroller of Public Accounts (CPA)

Procurement Section

Room 300, Attn: RFO No. 304-25-1161AM

111 E. 17th Street

Austin, Texas 78774

OR Texas Comptroller of Public Accounts

Procurement Section

Attn: RFO No. 304-25-1161AM

P.O. Box 12050

Austin, Texas 78711-2050

3. Additional Requirements/Qualifications: N/A

4. Responses to RFO: Sealed Competitive Offers

5. Deadline for Offers: In Issuing Office No Later Than:

June 9, 2025; 2:00 p.m., Central Time (CT)

6. Initial Contract Term: Award date through August 31, 2026

7. CPA Optional Contract Terms: September 1, 2026 through August 31, 2027

September 1, 2027 through August 31, 2028

September 1, 2028 through August 31, 2029

8. CPA Contact Person for this RFO: Alyssa Mangold, CTCD, CTCM

Email: bidcpa@cpa.texas.gov

9. Offers Submitted by Email: Required; See Section III, Part A

10. Offers Submitted by Fax: Not Accepted

11. Pre-Offer Conference: N/A

12. Pre-Offer Inspection: N/A

13. Letters of Intent to Submit an Offer: N/A

14. RFO Addenda: Notices of changes to items directly impacting the original RFO or solicitation process will be posted on the Electronic State Business Daily

(ESBD) located at: http://www.txsmartbuy.com/esbd. CPA will post any amendment to this solicitation on the ESBD as an RFO Addendum. It is the responsibility of an interested party to check the ESBD for updates to this RFO before submitting an Offer. Each Respondent is solely responsible for verifying CPA’s receipt of its questions, if applicable, and its Offer by the deadlines specified in this RFO.

15. Questions and Answers: Questions regarding this RFO must be in writing and must be submitted to the CPA Contact Person specified in Part 8, no later than June 18, 2025; 2:00 p.m. CT. Telephone inquiries will not be accepted.

Questions may be submitted by email to the email address specified in

Part 8. CPA intends to post answers to the questions received on the

ESBD on June 24, 2025, or as soon thereafter as practical.

17. Evaluation of Offers. Offers will be evaluated under the Best Value Standard (Section 2157.003 of the Texas

Government Code):

Criteria Weight

Respondent’s Past Performance, Qualifications & Experience 20%

Compliance with CPA Specifications 50%

Cost 30%

Total: 100%

As applicable, the factors listed in Sections 2155.074, 2155.075, 2156.007, and 2157.003 of the Texas Government Code shall also be considered in making an award.

mailto:bidcpa@cpa.texas.gov http://www.txsmartbuy.com/esbd

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18. Electronic Offers Only. Due to changed building access restrictions, Respondents will not be permitted to hand deliver

Offers to the Issuing Office. Respondents are required to submit Offers electronically via email in accordance with Section

III, Part A.

19. Contact with CPA Staff: Upon issuance of this RFO, employees and representatives of CPA, other than the CPA Contact

Person identified in Part 8, will not discuss the contents of this RFO with any Respondent or its representatives. Failure of a Respondent or any of its representatives to observe this restriction may result in disqualification of any related

Offer. This restriction does not preclude discussions between the parties to conduct business unrelated to this procurement or to obtain assistance completing Historically Underutilized Business (HUB) forms required by this RFO.

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II. Specifications

A. Introduction

The Texas Comptroller of Public Accounts (CPA), an agency of the State of Texas, issues this Request for Offers (RFO) to solicit Offers from qualified vendors for Identity Governance and Administration Software License and Related Services

(Services) as described in this Section II and in this RFO (Services). CPA’s objective is to obtain the Services that represent the best value for CPA and the State of Texas, according to the terms and conditions of this RFO.

CPA anticipates making a contract award to one (1) Successful Respondent for the Services. CPA reserves the right not to award a Contract for the performance of all or part of the Services. This RFO is not exclusive and CPA reserves the right to issue additional solicitations regarding the Services or similar services at any time. All Respondents are encouraged to offer their best pricing at all times.

All costs associated with the Services must be included in the Respondent’s Offer. Offers that do not meet all of the requirements or contain all of the required documentation specified in this RFO may be rejected as non-responsive.

B. Background

CPA’s Information Technology (IT) Division uses a ServiceNow® Licensed Software portfolio of products and services

(ServiceNow) to track IT service requests, incidents and related responses as well as to manage related governance, risk and compliance activities. CPA’s IT Division is committed to continuous modernization, optimization and enhancements to IT platforms, including ServiceNow, that are essential to the performance and delivery of quality services benefiting internal and external customers. Through issuance of this RFO and a contract resulting therefrom, CPA seeks to streamline identity management, improve automation related to access requests, and simplify compliance and governance activities by adding to CPA’s software applications an IGA solution capable of integration and interoperability with CPA’s

ServiceNow.

C. Definitions and Acronyms

• Access Review. A process where an organization periodically examines and verifies whether users have the appropriate access levels to specific systems, applications, or data, ensuring that only authorized individuals have the necessary permissions and removing unnecessary access rights to maintain security and compliance.

• Access Request. A formal process where a user submits a request to gain access to specific applications, data, or resources within an organization, typically requiring approval from a designated authority before the access is granted.

• Award Date. The Award Date is the earlier of the date an authorized representative of CPA (1) issues a Purchase

Order (“PO”) or (2) signs a formal, written agreement.

• Configuration/Configurable. An option included in the source code of a commercially available software application that permits customers to choose from a pre-defined range of selections that typically relate to the functionality and look-and-feel of the software application.

• Contract. The agreement, if any, described in Section II, Part E (Contract Resulting from this Solicitation/Order of

Priority).

• CPA Contract Manager. The end-user division contact responsible for day-to-day contact with Successful

Respondent; contact details to be provided by CPA after the Award Date and/or in the Contract.

• Customization. A modification to the source code of a commercially available software application that is specifically developed to meet the unique business requirements of one customer.

• CT. Central Time.

• DIR. The Texas Department of Information Resources.

• Error Correction. The correction of software malfunctions due to development, coding, or configuration issues that prevent the software application from operating as designed.

• Identity and Access Management (IAM). The framework of processes, policies and IT solutions that facilitate management of digital identities and assist IT security teams in management of user access to information within an organization.

• Identity Lifecycle Management. The process of creating, adapting and deleting digital identities for IT users in an organization and the administering of evolving access privileges, including but not limited to granting and revoking the user’s access to resources, throughout the user’s tenure at the organization.

• Identity Governance and Administration (IGA). A software solution that is a component of and enhances IAM by efficiently managing digital identities and access rights across an entity’s diver systems and that includes tools and processes that deliver the right people access to the right resources, data and applications at the right time.

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• IP Rights. All intellectual property rights, including copyrights, patents, trade secrets, trademarks, and other proprietary rights that are embedded in or used in connection with the Licensed Software and the Licensed Software

Documentation.

• Licensed Software. The version of the software application provided by Successful Respondent under the Contract and any released Software Upgrades, Software Updates, Software Enhancements/Releases, Software Patches/Fixes, Error Corrections, Configuration, and Customizations, as applicable, of such version.

• Licensed Software Documentation. The complete set of operating manuals necessary to enable CPA to properly install and use the Licensed Software, including but not limited to all updates, revisions, and corrections to the manuals.

• Multi-factor Authentication (MFA). A security enhancement mechanism requiring the user to present two or more pieces of evidence or credentials before the user is granted access to an account, an application, or a website.

• Offer. A response to this RFO.

• Privileged Account. A login credential to a server, firewall, or another administrative account, and that grants the user more rights than non-privileged account users.

• Respondent. Any person or entity that submits an Offer to this RFO.

• Separation (or Segregation) of Duties (SoD). The information security principle that includes internal controls established to manage risks, prevent errors, abuse and fraud and mitigate insider threats by dividing among more than one user the control, access and responsibilities related to sensitive systems, processes and activities.

• Software as a Service (SaaS). A software licensing and delivery model in which a software application is hosted and managed on a cloud server (rather than local devices) and accessed by users over the internet.

• Software Enhancement/Release. A change to a software application, intended to increase functionality, productivity, compatibility, and/or improve the user interface.

• Software License and Related Services (Services). All of the Licensed Software, Software Maintenance and

Technical Support Services, Licensed Software Documentation, Implementation Services, Training Services, and other items listed in this RFO. The term includes, but not is not limited to, fees, shipping, freight handling, and any other services associated with Successful Respondent’s performance under the Contract.

• Software Patch/Fix. Addition to a piece of code, usually as an immediate remedy to an existing software application error or defect. A software patch or fix is usually a temporary measure until a more permanent solution is implemented with a Software Enhancement, Software Release, and/or version update.

• Software Update. (a) Any commercially available versions of the Licensed Software with a version number designated to the right of the decimal point such as 1.1, 1.2, 1.3, etc., and (b) any subsequent variation of the Licensed

Software which provides essentially the same functionality and accomplished substantially the same tasks as the

Licensed Software but which the software publisher releases under a different name or label.

• Software Upgrade. A commercially available newer version of the Licensed Software typically designated by the number to the left of the decimal point such as 1.0, 2.0, 3.0, etc.

• Subscription License. A software fee and payment model in which customer pays provider a fee applicable to a specified contract term length for the customer’s rights to access and use the software application(s), with such fee also including provider’s delivery of Software Maintenance and Technical Support Services throughout the applicable contract term at no additional charge.

• Successful Respondent. The Respondent awarded a contract resulting from this RFO.

D. Scope of Services

D.1. General

a) Respondent’s Offer must include:

1) A detailed explanation of how Respondent’s IGA Software License and Related Services (Services) meets or exceeds the Licensed Software Requirements set forth herein;

2) Pricing in Price Schedule 1, Section IV (Mandatory Price Sheet) that includes all costs associated with

Respondent’s complete solution, including all Licensed Software.

3) Offer requirements listed within this Section II, Part D.1.a) are in addition to, and not in lieu of, requirements set forth within Section III, Part B (Offer Content and Format).

b) Successful Respondent shall provide Software License and Related Services listed in Price Schedule 1, Section

IV (Mandatory Price Sheet).

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c) Successful Respondent shall provide any Optional Features, Products, or Services listed in Price Schedule 2, Section IV (Mandatory Price Sheet) that are accepted by CPA.

D.2. Requirements

a) CPA will consider only SaaS Licensed Software to be hosted and managed in CPA’s ServiceNow GovCloud environment.

b) Respondent’s offered Licensed Software must be compatible with and natively built for ServiceNow:

a. Designed and developed to run directly on/with ServiceNow;

b. Uses ServiceNow’s programming languages, frameworks and tools;

c. Leverages ServiceNow capabilities and features;

d. Does not require external layers or emulations for full integration and functionality in ServiceNow.

c) Respondent’s offered Licensed Software must be a Configurable, commercially available off-the-shelf product available through Subscription License(s) and include, at a minimum, the following capabilities, features, and functionalities:

1) Access Review,

2) Access Request,

3) Identity Lifecycle Management,

4) Risk Management,

5) Ticketing,

6) Reporting,

7) Hosting,

8) Integration with enterprise applications,

9) Portal,

10) Approval, and

11) SoD.

D.3. Licensed Software and Software Maintenance and Technical Support Services

a) License Grant.

1) Successful Respondent acknowledges that CPA is an agency of the State of Texas and CPA’s business operations include any activities consistent with its statutory authority.

2) Under the Contract, Successful Respondent grants CPA a non-exclusive, irrevocable, universal license to the

IP Rights for the purposes of (1) using, displaying and performing the Licensed Software in connection with

CPA’s network; (2) using, displaying and performing the Licensed Software in connection with backup and disaster recovery procedures in the event of destruction or corruption of the Licensed Software or disasters or emergencies which require CPA or any of its affiliates to initiate disaster recovery procedures; (3) using one copy of the Licensed Software for test and development purposes in a non-production environment; and

(4) making, reproducing and distributing the Licensed Software copies and related documentation, either electronically or otherwise, to the extent necessary to fully utilize the license rights granted in (1), (2), and

(3). CPA shall not permit any Licensed Software to be used by any other person, except for employees, agents, consultants, outsourcing companies and contractors who need to use the Licensed Software in the performance of their duties for CPA and who are authorized and enabled by CPA, under CPA’s written agreement, to access and utilize the Licensed Software.

3) For disaster recovery purposes, Successful Respondent grants CPA the right to install the Licensed Software on equivalent capacity equipment that is located at an installation site that is (a) owned or controlled by CPA or (b) owned or controlled by a third party with which CPA has contracted to provide disaster recovery services. The use of disaster recovery copies shall be limited (a) for the purpose of conducting disaster recovery testing and (b) during any period subsequent to the occurrence of an actual disaster or other event during which CPA is unable to operate the Licensed Software on the hardware located at its designated primary site. Successful Respondent shall provide temporary licenses, passwords, and any other items or devices that are necessary to enable CPA to conduct, at CPA’s sole discretion, two (2) hot site tests per fiscal

RFO # 304-25-1161AM Identity Governance and Administration SW & Svcs Page 8 of 42 year on equivalent capacity equipment (a) owned or controlled by CPA or (b) owned or controlled by a third party with which CPA has contracted to provide disaster recovery services.

b) Licensed Software Documentation. Successful Respondent shall provide to CPA at least one (1) copy of the

Licensed Software Documentation via online or hardcopy for each of the Licensed Software provided. Successful

Respondent shall provide CPA either (1) written approval which authorizes CPA to make additional copies of the documentation at no charge, or (2) access to additional copies of the documentation at no charge. CPA will restrict distribution of the Licensed Software Documentation to those users with a “need to know” classification.

CPA shall not remove, deface, or otherwise obscure any copyright, patent, trademark, service mark, or other proprietary legend (Proprietary Legends) on the Licensed Software or the Licensed Software Documentation.

Furthermore, CPA shall include such Proprietary Legends in any reproductions of either the Licensed Software or the Licensed Software Documentation that CPA is permitted to make.

c) Software Maintenance and Technical Support Services.

1) General.

a. Successful Respondent shall provide Software Maintenance and Technical Support Services as defined in this RFO. Software Maintenance and Technical Support Services include, but are not limited to, the following: telephone and on-line support, Error Corrections, Software Updates, Software Upgrades, Software Patches/Fixes, Software Enhancements/Releases, latest features, performance improvements, Licensed Software Documentation, and technical library CD series, if applicable.

b. Successful Respondent shall provide qualified personnel to be available to CPA by telephone, email, or website for the reporting of problems or issues with the Licensed Software or Software Maintenance and

Technical Support Services. All such Software Maintenance and Technical Support Services must be unlimited during the term of the Contract.

c. Successful Respondent shall provide a help-desk toll-free telephone number, email, or website for the reporting of problems or issues with the Licensed Software. Successful Respondent shall provide support twenty-four (24) hours per day, seven (7) days a week, three hundred sixty-five (365) days a year.

Successful Respondent shall allow a minimum of three (3) authorized CPA contacts to report problems or issues to Successful Respondent’s help-desk. Upon request of Successful Respondent, CPA will provide the list of authorized support staff.

d. Successful Respondent shall send to CPA all Software Upgrades and Software Patches/Fixes automatically. Electronic/overnight delivery of Software Updates, replacement software, and/or

Software Patches/Fixes will be supplied in the event of Licensed Software failure.

e. CPA shall, in accordance with CPA policies and procedures, provide Successful Respondent reasonable access to the Licensed Software to perform Software Maintenance and Technical Support.

2) Release Management and Software Patch/Fix Application. Successful Respondent shall assist in pre-release planning, scheduling, and implementing installation of mandatory manufacturer Software Updates and

Software Upgrades of Licensed Software in accordance with the manufacturer-suggested support guidelines.

Successful Respondent shall notify CPA of any Software Patch/Fix migrations a minimum of twenty-four hours before beginning the migration. Successful Respondent’s notification shall specify the Software

Release schedule, release notes and summary of impact to the Licensed Software. Successful Respondent shall be responsible for resolving any issues resulting from a Software Release and any Software Patch/Fix as reported through Successful Respondent’s support center.

3) Response Times. Successful Respondent shall respond to service requests in accordance with the priority and within the maximum response times listed in Table 1 (Maximum Response Times). “Response Time” is defined as the period between Successful Respondent’s receipt of a service call from CPA and the time until

Successful Respondent’s service technician responds with repair efforts underway. “Repair Time” is defined as the timeframe for Successful Respondent to complete the Software Maintenance and Technical Support

Services required to return the affected systems to normal operations. CPA, in its sole discretion, will determine the service priority reporting of problems or issues with the Licensed Software.

Table 1 - Maximum Response Times

SEVERITY LEVEL DESCRIPTION

MAX RESPONSE

TIME

Severity 1 Critical

a. Total outage or an outage of a critical component that renders the software unusable or unable to perform pending critical tasks.

b. Security issue that affects the production environment.

1 Hour

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Severity 2 High

a. Performance degradation or diminished processing, capacity, or functionality that affects multiple users within the production environment.

b. Issue that affects fulfillment of a pending deadline or causes staff to be idle.

Within 2 business hours

Severity 3 Medium

a. Performance issue related to non-production environments, non-critical issue that is time sensitive, or non-impacting issue requiring additional troubleshooting.

b. Issue that does not affect current work but will affect customer’s ability to perform work within one business day.

c. Frequent issue of minor importance yet obviously affecting work efficiency.

Within 4 business hours

Severity 4 Low

a. Scheduled maintenance outage.

b. Request for information prior to diminished processing, capacity, or functionality.

c. Low frequency error of marginal importance.

d. Minor problem that requires research, testing, or cooperative effort to resolve.

Within the next business day

4) Escalation Protocol. In its Offer, Respondent must propose for CPA’s consideration an escalation protocol for collaboratively resolving issues encountered during the term of any contract resulting from this RFO. The proposed Escalation Protocol must explain how issues or complaints are prioritized and resolved. The

Escalation Protocol shall include (1) an organization chart addressing topics such as specific steps to be taken on top priority issues or disputes arising due to untimely response to system down or critical malfunction remedial repair requests and (2) any other unmet top priority service requirements of the Contract.

D.4. CPA Data Safeguard Standards.

a) Defined Terms. The term “CPA Data” refers to CPA’s information as well as other entity information in the possession of CPA that is processed, stored, or transmitted by a computer. CPA Data includes all data that is generated by Successful Respondent in performance of a contract with CPA. The term “CPA Information System” refers to those devices, software, networks and related infrastructure that CPA owns, operates or has obtained for use to conduct CPA business. Devices include, but are not limited to, CPA-owned or managed storage, processing, and communications devices, as well as personally owned devices.

b) Access to CPA Data. Successful Respondent represents and warrants that it will implement, maintain, and use appropriate administrative, technical, and physical safeguards to preserve the confidentiality, integrity, and availability of CPA Data. Successful Respondent will not collect, access, use, disclose, or retain CPA Data other than as necessary to perform the services specified in a contract resulting from this solicitation or as otherwise authorized in writing by CPA. Successful Respondent will restrict access to CPA Data to only those personnel who must have the information on a “need to know” basis. Successful Respondent will not use CPA Data, or any information derived from CPA Data, for its own benefit or the benefit of any other person or entity. Successful

Respondent will not share CPA Data with its parent company or other affiliate without CPA’s express written consent.

c) Web-Based Remote Access to CPA Information Systems. Successful Respondent may use third-party web-based remote access connections to CPA Information Systems to provide support services under the following conditions:

1) CPA shall affirmatively initiate and accept Successful Respondent’s connections to CPA Information

Systems.

2) CPA shall monitor Successful Respondent’s connections to Information Systems for the duration of the

Services.

3) CPA shall terminate Successful Respondent’s connections to Information Systems upon completion of the

Services.

d) Reserved.

e) Reserved.

f) Location of CPA Data. Successful Respondent shall ensure that CPA Data (i.e., primary and backup) remains, at all times, within the continental United States. Successful Respondent shall receive, process, transmit, and store

RFO # 304-25-1161AM Identity Governance and Administration SW & Svcs Page 10 of 42 all CPA Data within the continental United States. Successful Respondent’s point of access to CPA Data shall be within the continental United States.

g) Encryption Standards.

1) Successful Respondent shall encrypt CPA Data in transit and at rest. Data in transit means data is moving via email, in applications, or through browsers and other web connections. Data at rest (including data backups) means data is stored in databases, the cloud, removable media, or mobile devices.

2) Successful Respondent shall utilize encryption standards that are FIPS 140-2 compliant or, upon the written approval of CPA’s Chief Information Security Officer, shall meet the intent of the standards as described in

FIPS 140-2.

3) The minimum cryptographic algorithm used by Successful Respondent must be Advanced Encryption

Standard (AES) 128 or higher (256 AES is preferred).

4) Successful Respondent shall encrypt CPA Data transmitted over a public or private network. CPA approved data encryption transmission protocols include the following: (1) SFTP (FTP over SSH), (2) FTPS (FTP over

TLS), (3) HTTPS (HTTP over TLS), and (4) virtual private network.

h) Reserved.

i) Auditable Information Security Framework. Successful Respondent shall secure its own and its third-party service providers’ systems (e.g., IT service provider, Cloud Service Provider) in a manner consistent with an auditable information security framework e.g., National Institute of Standards and Technology (NIST), International

Organization for Standardization (ISO) 27001.

j) Defects and Vulnerabilities. Upon Contract award and during the term of the Contract, Successful Respondent shall provide CPA with prompt, written notice upon Successful Respondent’s discovery of any product defects and vulnerabilities of the proposed Licensed Software/Solution that allow an attacker to violate an explicit (or implicit) security policy to achieve some impact or consequence. Examples of vulnerabilities include defects that allow intruders to gain increased levels of access or interfere with the normal operations of information systems.

Vulnerabilities caused by insecure configurations, design choices, and changing environmental conditions are additional examples.

k) Supply Chain Risk Management. Successful Respondent shall provide CPA’s Contract Manager a description of how it manages supply chain risks. Specifically, Successful Respondent shall describe its established agreements and procedures with entities involved in the supply chain for the notification of supply chain risks, compromises, and the result of assessments or audits. During the term of the contract, Successful Respondent shall provide

CPA’s Contract Manager prompt, written notice of supply chain risks that impact the delivery of the products and services of the Contract. Examples of supply chain risks include supplier financial failure, production control/product quality, market supply and demand, labor disputes/shortages, cybersecurity threats, natural disasters. Successful Respondent shall notify CPA of a supply chain compromise and potential compromise in accordance with Section G Security Incident Notification.

l) Independent Information Security Assessment. If Successful Respondent has access to a CPA Information System or receives, processes, transmits, or stores CPA Data, then Successful Respondent shall provide CPA’s Contract

Manager with its most recent information security assessment conducted by an independent third-party (e.g., SSAE-18 SOC 2 Type II, ISO 27002) upon Contract award and annually thirty (30) days prior to the anniversary of the Contract award date thereafter. CPA, in its sole discretion, may conduct a security assessment of any information system holding CPA Data or connected to a CPA Information System. CPA’s security assessment may consist of a review of the following: (i) independent third-party assessment(s) contracted by Successful

Respondent (e.g., SSAE-18 SOC 2 Type II, ISO 27002) and (ii) Successful Respondent’s System Security Plan.

m) Media Sanitization. Successful Respondent shall sanitize information system media, both digital and non-digital, in accordance with NIST Special Publication 800-88 (Guidelines for Media Sanitization) when CPA Data in the custody of Successful Respondent is no longer required to be retained by contract with CPA. Successful

Respondent must maintain a record documenting each sanitization procedure that, at a minimum, includes the following information: (i) date sanitization completed, (ii) description of the item(s), serial number(s), inventory control number(s), if applicable, and (iii) sanitization method used. No later than sixty (60) calendar days from contract expiration or termination or as otherwise specified in the Contract, Successful Respondent must either

(i) complete the sanitization and submit via email to the CPA Contract Manager all sanitization documentation or

(ii) submit a written statement via email to the CPA Contract Manager explaining the reason that destruction of

CPA Data by Successful Respondent is technically impossible or impractical. Successful Respondent’s obligations set forth in this clause survive the termination or expiration of the contract as long as Successful

Respondent retains CPA Data.

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n) Third-Party Service Providers. It is Successful Respondent’s sole responsibility to ensure that its access and the access Successful Respondent grants to its service providers to CPA Data or CPA Information Systems does not result in unauthorized access to CPA Data or CPA Information Systems.

o) Reserved.

p) Reserved.

q) Reserved.

r) State Authorization and Risk Management Program (TX-RAMP). Successful Respondent shall obtain TX-RAMP certification in accordance with the Department of Information Resources (DIR) Program Manual. CPA requires the following TX-RAMP certification based-on Agency criteria:

1) X None. Product is out of scope/low impact in accordance with the DIR TX-RAMP Manual.

2) Level 1 Certification. The product will administer Agency public data.

3) Level 2 Certification. The product will administer Agency sensitive, confidential, and/or regulated data.

Upon Contract award, Successful Respondent shall maintain compliance with TX-RAMP program requirements and certification throughout the term of the contract. Successful Respondent shall notify the CPA Contract

Manager immediately if TX-RAMP certification is revoked or otherwise removed.

If Successful Respondent uses a cloud service provider to host (i.e., Infrastructure as a Service or IaaS) or build

(i.e., Platform-as-a-Service or PaaS) a custom-developed CPA system or application, Successful Respondent shall ensure its cloud service provider obtains TX-RAMP certification in accordance with the Department of

Information Resources (DIR) Program Manual. If applicable, CPA requires the following TX-RAMP certification based-on Agency criteria:

4) X None. Product is out of scope/low impact in accordance with the DIR TX-RAMP Manual.

5) Level 1 Certification. The product will administer Agency public data.

6) Level 2 Certification. The product will administer Agency sensitive, confidential, and/or regulated data.

Upon Contract award, Successful Respondent shall ensure its cloud service provider used to host or build a custom-developed CPA system or application maintains compliance with TX-RAMP program requirements and certification throughout the term of the contract. Successful Respondent shall notify the CPA Contract Manager immediately if

TX-RAMP certification is revoked or otherwise removed.

s) Reserved.

t) Reserved.

u) Reserved.

D.5. Liquidated Damages. In submitting an Offer, Respondent agrees that the measure of damages in the event of a default or breach of contract by Successful Respondent may be difficult or impossible to calculate. In the event Successful

Respondent fails to perform Services or complete the obligations under the Contract in a timely manner, CPA may require Successful Respondent to pay, as liquidated damages and not as a penalty, an amount equivalent to two percent

(2%) of the total cost for Services or obligations not completed as required by the Contract per calendar day of delay.

CPA may impose, but is not obligated to impose, these liquidated damages in lieu of any monetary damages available to CPA under the Contract or applicable law.

D.6. Optional Features, Products or Services. Respondents are encouraged to submit and describe in detail in their Offers optional features, products or services that would benefit CPA but are not part of the minimum requirements of this

RFO. Optional features, products or services are not scored as part of the evaluation process.

Optional Features, Products or Services CPA has identified for Respondent’s consideration include, but are not limited to:

a) Implementation Services; Training Services

1) Implementation Services

a. In its Offer, Respondent must describe in detail any implementation services offered to assist CPA with installing, optimizing and obtaining full functionality of Respondent’s offered Licensed Software

(“Implementation Services”).

b. Respondent’s detailed description of offered Implementation Services should address, at a minimum:

i. product installation, configuration, and optimization, as applicable;

https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdir.texas.gov%2Fresource-library-item%2Ftexas-risk-and-authorization-management-program-manual-30&data=05%7C02%7CJason.Frizzell%40cpa.texas.gov%7C9b22e092447c41d9816108dd30f4dbc3%7C2055feba299d4d0daa5a73b8b42fef08%7C0%7C0%7C638720550387877709%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=dFBcq3mGLKSAe5BKAYCH%2FFcMW6eaImJiVx85PviOPho%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdir.texas.gov%2Fresource-library-item%2Ftexas-risk-and-authorization-management-program-manual-30&data=05%7C02%7CJason.Frizzell%40cpa.texas.gov%7C9b22e092447c41d9816108dd30f4dbc3%7C2055feba299d4d0daa5a73b8b42fef08%7C0%7C0%7C638720550387877709%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=dFBcq3mGLKSAe5BKAYCH%2FFcMW6eaImJiVx85PviOPho%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdir.texas.gov%2Fresource-library-item%2Ftexas-risk-and-authorization-management-program-manual-30&data=05%7C02%7CJason.Frizzell%40cpa.texas.gov%7C9b22e092447c41d9816108dd30f4dbc3%7C2055feba299d4d0daa5a73b8b42fef08%7C0%7C0%7C638720550387877709%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=dFBcq3mGLKSAe5BKAYCH%2FFcMW6eaImJiVx85PviOPho%3D&reserved=0

RFO # 304-25-1161AM Identity Governance and Administration SW & Svcs Page 12 of 42

ii. testing and analysis, if applicable; and

iii. any implementation schedule, milestones and project management plans applicable to the offered

Implementation Services.

c. Respondent’s Implementation Services pricing shall include all costs associated with the Implementation

Services.

2) Training Services

a. In its Offer, Respondent must describe in detail any offered training to assist CPA’s designated staff to efficiently and effectively become familiar with, knowledgeable of and capable of using Respondent’s offered Licensed Software (“Training Services”). Respondent’s detailed description should address, at a minimum, Respondent’s training approach, strategies, tools, and suggested training schedule included in the Training Services.

b. Respondent’s description of offered Training Services should address:

i. Training on the use of the Licensed Software;

ii. Training materials and related documentation Respondent will provide to CPA in delivery of training and knowledge transfer activities; and

iii. Total hours included with Respondent’s proposed Training Services.

c. Respondent’s Training Services pricing shall include all costs associated with the Training Services.

Respondent’s Pricing for all Optional Features, Products or Services shall be included in Price Schedule 2 of Section

IV (Mandatory Price Sheet).

E. Contract Resulting From This Solicitation; Order of Priority

Respondent’s Offer is a legal offer to contract based upon the terms, conditions, and specifications set forth in this RFO.

A contract award by CPA may be by (1) valid PO or (2) a formal, written agreement between CPA and Successful

Respondent. The Contract is effective as of the Award Date and will be between CPA and the Successful Respondent. The entire Contract between CPA and Successful Respondent shall consist of the following documents, which shall control in the following order of priority, except as otherwise provided in the formal signed agreement or PO: (1) the PO and PO

Change Notices, if any; (2) the formal, signed agreement, if any; (3) this RFO; and (4) Successful Respondent’s Offer

(collectively, the “Contract”).

F. Warranty of Performance

Successful Respondent represents and warrants that its performance under the Contract shall be conducted conscientiously in a professional and workmanlike manner to the full extent of Successful Respondent’s talents and capabilities with due diligence and in full compliance with the highest professional standards of practice in the industry applicable to the

Services.

G. Security Incident Notification

Successful Respondent shall have policies and procedures for the effective management of Security Incidents, which shall be made available to CPA upon written request. Within twenty-four (24) hours of Successful Respondent’s discovery or reasonable belief that there has been an event which results in the accidental or deliberate unauthorized access, loss, disclosure, modification, disruption, or destruction of confidential CPA information (“Security Incident”), Successful

Respondent shall provide notice to CPA by calling (800) 531-5441 EXT 34357. Until the investigation is complete, Successful Respondent shall submit, on a daily basis or as otherwise agreed by CPA, a written report via encrypted email to security.alerts@cpa.texas.gov that includes, at a minimum, the following:

• Date and time incident occurred,

• Date and time incident detected,

• Date and time incident contained,

• Address where incident occurred,

• Name of person(s) that discovered incident,

• Description of how Successful Respondent discovered incident,

• Type of CPA information involved,

• Description of the nature of the incident,

• Description of the steps Successful Respondent has taken or will take to investigate incident,

• Description of the steps Successful Respondent has taken or will take to mitigate any negative impacts of incident,

• Information technology involved (e.g., laptop, server, mainframe), mailto:security.alerts@cpa.texas.gov

RFO # 304-25-1161AM Identity Governance and Administration SW & Svcs Page 13 of 42

• Description of steps taken to preserve computer evidence and maintain chain of custody, and

• Description of corrective action Successful Respondent has taken or will take to prevent future incidents.

Successful Respondent shall coordinate all media or other breach notifications with CPA in advance of such notification(s), unless expressly prohibited by law. Subject to review and approval of CPA, Successful Respondent shall provide notice at its own cost that satisfies the requirements of applicable law to individuals whose information was compromised or likely compromised as a result of the Security Incident. If CPA, in its sole discretion, elects to send its own separate notice, then all costs associated with preparing and providing the notice shall be reimbursed to CPA by Successful Respondent. If

Successful Respondent does not reimburse such costs within thirty (30) days of CPA’s written request, then CPA shall have the right to collect such costs. CPA reserves the right to conduct an independent investigation of any Security Incident, and should CPA choose to do so, Successful Respondent shall cooperate fully with CPA and assume responsibility at its own expense for making personnel, resources, and systems access available to CPA and CPA’s authorized representative(s).

H. Insurance and Bonds

Successful Respondent represents and warrants that it shall obtain and maintain the following coverages throughout the term of the Contract and that all coverages shall be with companies licensed in Texas with an “A” rating from A.M. Best

Co. authorized to provide the required coverages:

• Standard Workers Compensation Insurance covering all individuals who will provide Services;

• Commercial General Liability Insurance: $1,000,000 minimum each occurrence limit; $2,000,000 minimum aggregate limit; and

All of the above policies and bonds shall contain endorsements prohibiting cancellation except upon thirty (30) calendar days’ prior written notice to CPA. No later than five (5) business days following the Award Date, and on an annual basis thereafter, Successful Respondent shall furnish proof to CPA of such coverage in the form of a Certificate of Insurance from Successful Respondent’s insurance carrier(s) indicating the required coverages. The certificate shall be addressed to

CPA as the certificate holder. Successful Respondent shall submit proof of required insurance coverage via email, referencing the PO number, to the following address: contract.administration@cpa.texas.gov.

I. Criminal Background Investigation

1. Criminal Background Investigation by Successful Respondent. Prior to an Assigned Personnel commencing Services under the Contract, Successful Respondent shall conduct a criminal background investigation and provide written notice via email to CPA’s Criminal Investigation Division of any Assigned Personnel that have any felony criminal conviction(s). If any information related to felony criminal conviction(s) for the Assigned Personnel changes during the Contract term, Successful Respondent shall provide written notice via email to CPA’s Criminal Investigation

Division no later than three (3) business days after Successful Respondent’s discovery of such changed information.

Written notice to CPA’s Criminal Investigation Division shall be submitted to cid.analysts@cpa.texas.gov.

Successful Respondent’s exercise of due diligence in conducting the criminal background investigation shall include, at a minimum, the following: (1) compliance with Successful Respondent’s published policies and procedures for background and criminal conviction checks and (2) a comprehensive search of the public information portion of Texas

Department of Public Safety criminal conviction database located at:

https://publicsite.dps.texas.gov/ConvictionNameSearch/. If Successful Respondent asserts that a search of the Texas

Department of Public Safety criminal conviction database is not appropriate for a particular Assigned Personnel, Successful Respondent must provide written notice via email to CPA’s Criminal Investigation Division that explains the proposed alternate approach for conducting the criminal background investigation.

For purposes of this clause, “Assigned Personnel” includes, without limitation, (1) all individuals provided by

Successful Respondent under the Contract who will or may (a) be assigned as lead or key personnel; (b) provide

Services on-site at CPA’s premises; or (c) access CPA information resources, i.e., the procedures, equipment, and software that are employed, designed, built, operated, and maintained to collect, record, process, store, retrieve, display, and transmit information, and (2) associated personnel, including consultants and contractors. At CPA’s written request, Successful Respondent shall replace Assigned Personnel with any felony criminal conviction(s).

Within five (5) business days of receipt of a written request by CPA’s Criminal Investigation Division during the

Contract term, Successful Respondent shall provide written notice to CPA’s Criminal Investigation Division of any

Assigned Personnel that have any felony criminal conviction(s).

2. Criminal Background Investigation by CPA. At CPA’s discretion, CPA may conduct a criminal background investigation on Successful Respondent’s Assigned Personnel. Should any Assigned Personnel not be acceptable to

CPA due to a finding of felony criminal conviction(s) as a result of the criminal background investigation, Successful

Respondent shall replace such Assigned Personnel upon CPA’s written request or CPA may terminate the Contract.

mailto:contract.administration@cpa.texas.gov mailto:cid.analysts@cpa.texas.gov https://publicsite.dps.texas.gov/ConvictionNameSearch/

RFO # 304-25-1161AM Identity Governance and Administration SW & Svcs Page 14 of 42

3. Remedies. If CPA becomes aware that Successful Respondent provided false information, Successful Respondent fails to promptly notify CPA of changed information that related to felony criminal convictions, or Successful

Respondents fails to replace Assigned Personnel as required by this Section, Successful Respondent shall be in breach of contract and CPA shall have the option to terminate the Contract without further obligation to Successful

Respondent as well as pursue all other remedies and rights available to CPA under contract, at law, or in equity.

J. Contract Term

The initial term of the Contract shall be from Award Date through August 31, 2026. CPA may, in its sole discretion, exercise the option to extend the Contract for up to three (3) additional, one-(1)-year periods. The optional additional periods are September 1, 2026 through August 31, 2027; September 1, 2027 through August 31, 2028; and September 1, 2028 through August 31, 2029. To exercise the option to extend the term, CPA will notify Successful Respondent; such notice may be by PO or PO Change Notice issuance. Notwithstanding the termination or expiration of the Contract, certain provisions that by their nature are intended to continue beyond the termination or expiration of the Contract, e.g., indemnification, confidentiality, dispute resolution, records retention, CPA data safeguards, State Auditor’s right to audit, and CPA’s right to audit, shall survive the termination or expiration of the Contract.

K. Invoice Acceptance Criteria

Prior to payment, CPA will evaluate the provided products and/or Services using the following criteria and any additional acceptance criteria provided in the Contract:

1. The products and/or Services must meet all specifications and standards of performance in the Contract; and

2. The products and/or Services must comply with all published specifications.

L. Payments

Payment(s) to Successful Respondent will be based upon the schedule described in Section IV (Mandatory Price Sheet) and the Contract. CPA may, in its sole discretion, process payments on a monthly basis.