ESBD_460125_1760363408920_3202500192_Final RFP_TWC_Procurement_.pdf

Joe Esparza, Chairman and Commissioner Representing Employers

Albert Trevino III, Commissioner

Representing Labor

Brent Connett, Commissioner Representing the Public

Edward Serna, Executive Director

Request for Proposals (RFP) for

Child Care Expansion Initiative Program for New Child Care Providers (CCEI Program)

Solicitation No. 3202500192

Date of Release: October 13, 2025

Proposals Due: January 21, 2026, by 10:00 a.m. Central Time

909-03 Administration of Contracts: Summary of Work, Quality Control, Project Closeout, etc.

911-51 C.I.P., Project Management and Administration

Sole Point of Contact for this RFP (see Section 4.1):

Dallas Curry-Ikner CTCD, CTCM

Purchaser Texas Workforce Commission Procurement Portal https://twc-texas-gov.bonfirehub.com/portal/?tab=openOpportunities

RFP No. 3202500192 May 2025 Page 2 of 70

TABLE OF CONTENTS

TABLE OF CONTENTS

DEFINITIONS

ARTICLE I. PURPOSE, AUTHORITY AND SCHEDULE OF EVENTS

1.1. PURPOSE

1.2. AUTHORITY

1.3. SCHEDULE OF EVENTS

ARTICLE II. SCOPE OF WORK

2.1. OVERVIEW/BACKGROUND

2.2. DESCRIPTION OF SERVICES/SCOPE OF WORK/SPECIFICATIONS

2.2.1 Information and Data Security

2.2.2 Ramp-Up Period Milestones

2.2.3 Program Administration

2.2.4 Key Provisions Required for CCEI Program Administration

2.2.5 Support Eligible Child Care Providers in line with the following parameters:

2.2.6 Quality Assurance and Improvement

2.2.7 Collaboration with TWC

ARTICLE III. GENERAL INFORMATION

3.1. TERMS AND CONDITIONS

3.2. CONTRACT AWARD

3.3. CONTRACT TERM

3.4. PRICE ADJUSTMENT

3.5. CONTRACT AMENDMENTS

3.6. NO GUARANTEE OF VOLUME, USAGE ,OR COMPENSATION

3.7. GOVERNMENTAL ENTITIES

3.8. PROPOSAL PERIOD

3.9. COSTS INCURRED

3.10. PUBLIC INFORMATION ACT -RESPONDENT PROPOSAL

3.11. PUBLIC INFORMATION ACT –CONTRACT AWARD

3.12. RESPONDENT WAIVER –INTELLECTUAL PROPERTY

3.13. INSURANCE

3.14. SANCTIONS AND REMEDIES

3.14.2. Assessment of Sanctions

RFP No. 3202500192 May 2025 Page 3 of 70

3.14.3. Failure to Assess Sanctions

3.14.4. Failure to Notify TWC of a Change of Ownership or Control or Change in

Financial Condition

3.14.5. Failure to Comply with Disclosure Requirement

3.14.6. Failure to Produce Records or Information as part of Background

Investigation

3.14.7. Failure to Produce Records or Information as part of an Audit

3.15. LIQUIDATED DAMAGES

3.15.2 Liquidated Damages Assessment

3.15.3 Specific Liquidated Damage(s)

3.16. SERVICE LEVEL AGREEMENTS AND SERVICE LEVEL CREDITS

3.17CHANGES IN OWNERSHIP OR FINANCIAL CONDITION

3.18. SEVERABILITY

3.19. FRANCHISE TAX –RIGHT TO TRANSACT BUSINESS IN TEXAS

3.20. SUBCONTRACTOR REQUIREMENTS

3.21. DATA USE STANDARDS AND REQUIREMENTS

ARTICLE IV. PROPOSAL PROCESS

4.1. INQUIRIES

4.1.2 Prohibited Communication

4.1.3 Written Questions

4.1.4 Exception to Sole Point of Contact

4.2. PRE-PROPOSAL CONFERENCE

4.2.1 Attendance

4.2.2 Logistical Information

4.2.3 Questions at the Pre-Proposal Conference

4.3. PROPOSAL COMPOSITION

4.3.2 Proposal Format

4.3.3 Proposal Signature

4.3.4 Discrepancies

4.3.5 Exceptions

4.4. PROPOSAL SUBMISSION AND DELIVERY

4.4.2 Submission Method-TWC Procurement Portal

4.4.3 Ownership of Proposals

4.4.4 Modifications and Withdrawals

4.5. ADDITIONAL INFORMATION

4.6. AMBIGUITY, CONFLICT, OR DISCREPANCY

RFP No. 3202500192 May 2025 Page 4 of 70

4.7. CHANGES, MODIFICATIONS, AND CANCELLATION OF SOLICITATION

ARTICLE V. PROPOSAL EVALUATION AND AWARD PROCESS

5.1. WRITTEN PROPOSAL EVALUATION

5.2. CONFORMANCE WITH STATE LAW

5.3. EVALUATION PROCESS OVERVIEW

5.4. INITIAL COMPLIANCE SCREENING

5.5. MINIMUM QUALIFICATIONS

5.6. WRITTEN PROPOSAL EVALUATION CRITERIA

5.7. REQUESTS FOR CLARIFICATION

5.8. ADVANCEMENT CRITERIA

5.9. BEST AND FINAL OFFER (BAFO)

5.10. FINAL WRITTEN RESPONSE SCORE AND TOTAL SCORE

5.11. SUMMARY OF BEST VALUE DETERMINATION

ARTICLE VI. REQUIRED PROPOSAL INFORMATION

6.1. NARRATIVE PROPOSAL

6.1.2 Information and Data Security

6.1.3 Proposed Project Work Plan

6.1.4 Key Personnel

6.2. REFERENCES AND PAST PROJECT PERFORMANCE

6.3. FINANCIAL SOUNDNESS

6.4. COST PROPOSAL

6.5. EXECUTION OF RESPONSE

6.6. CORPORATE GUARANTEE

6.7. HUB SUBCONTRACTING PLAN

6.8. OPTIONAL PROPOSAL SUBMISSION CHECKLIST

LIST OF ATTACHMENTS AND FORMS

RFP No. 3202500192 May 2025 Page 5 of 70

DEFINITIONS

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

“Acquisition Cost” means the cost of the asset including the cost to ready the asset for its intended use. Acquisition cost for Equipment means, for example, the net invoice price for the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Ancillary charges, such as taxes, duty, protective in transit insurance, freight, and installation may be included in or excluded from the acquisition cost in accordance with an entity’s regular accounting practices.

“Addendum” means a written addition, change, or supplement to this Solicitation that is posted as a notification to the ESBD and uploaded to the TWC Procurement Portal prior to the response due date.

“Additional Evaluation Activities” include Oral Presentations, Clarifications, Technical Discussions, Proof of Concept, Demonstrations, and/or Site Visits.

These Additional Evaluation Activities follow the evaluation of the written Proposals and may be utilized by TWC to evaluate and ensure specifications meet TWC’s needs as outlined in the Solicitation. Additional Evaluation Activities provide an opportunity for Respondents to highlight the strengths and unique aspects or clarify their Proposals.

“Applicant” means a potential Eligible Child Care Provider applying for funding support, to the selected CCEI Program Administrator, for the Child Care Expansion Initiative Program.

“Business Day” means days occurring Monday through Friday except for the legal holidays observed by the State of Texas. The terms “Working Days” and “Business Days” may be used interchangeably. All uncapitalized references to “days” shall be calendar days.

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“Business Plan” is a document that outlines the goals, services, target market, and financial projections of a child care business, serving as a strategic guide to achieving success. A Business Plan includes but is not limited to sections on market analysis, organizational and operational structure, project budget, cash flow analysis, marketing strategies, and an implementation timeline.

“CCEI Program Administrator” is the Respondent selected and awarded a Contract by TWC to manage the CCEI Program.

“CCEI Program Awards” include two (2) types of awards: Start-Up Awards and Initial Operating Awards. The awards aim to offset costs for new child care centers and constitute payments to program beneficiaries, not subgrants to subrecipients, nor purchases of property or services from a vendor/contractor. Information about the awards can be found in Section

2.2. Description of Services/Scope of Work/Specifications under c. Program Administration. Refer to Attachment 7, CCEI Program Policy Guidance, for additional definitions.

“Child Care Desert” means an area as described in the Texas Labor Code §

302.0461 as an area where the number of children younger than six (6) years of age who have working parents is at least three (3) times greater than the capacity of licensed child care providers in that area. The most current list of Child Care Desert locations is available on https://www.twc.texas.gov/programs/child-care/data-reports-plans.

“Child Care Regulation (CCR)” refers to the department within Health and Human Services Commission (HHSC) Regulatory Services Division that regulates child day care and residential child care operations and other child care activities, as well as child care administrators and child-placing agency administrators.

“Competitive Range” consists of the offers or Proposals that have a reasonable chance of being selected for award based on the evaluation criteria and basis for award as stated in this Solicitation.

https://www.twc.texas.gov/programs/child-care/data-reports-plans

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“Contract” means the written agreement entered into by the TWC and Successful Respondent, which will incorporate the contents of this RFP and the Successful Respondent’s Proposal, except as may be provided in the Contract and any amendments thereto.

“Contract Term” means the definite period of time that the Contract will remain in effect.

“Eligible Child Care Provider” means a Texas child care center location, as defined in 26 Texas Administrative Code (TAC) § 746.123, that is new and seeking licensure or plans to seek licensure by Health and Human Services Commission (HHSC) Child Care Regulation (CCR) division. For this RFP, an Eligible Child Care Provider must be located in a Child Care Desert or must be seeking to implement Employer-Supported Site-Based Child Care. A child care center location that is already permitted will not be eligible to apply for CCEI Program funding. An Eligible Child Care Provider that submits an application for a CCEI Program Award but fails to secure a location for the child care center will not receive funding support under this RFP. Refer to Attachment 7, CCEI Program Policy Guidance, for additional eligibility details.

“Employer Partner” means a single employer or the lead entity of a consortium of employers offering Employer-Supported Site-Based Child Care available to employees with children and working within the State of Texas.

“Employer-Supported Site-Based Child Care” means child care services available to an employee that are (1) either available on the workplace premises or nearby and (2) supported by the employer’s clear financial commitment for the Eligible Child Care Provider. The child care services may be provided by the employer or a third-party child care provider partnering with the employer. Typically, the child care services are offered by a third-party provider; the employer is an Employer Partner. If an employer chooses to be the operator and seeks licensure to provide child care services, the employer may be considered as both an Eligible Child Care Provider and an Employer Partner. Refer to Attachment 7, CCEI Program Policy Guidance, for more information.

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“Equipment” means tangible, personal property having a useful life of more than one (1) year, and a unit Acquisition Cost of ten thousand dollars ($10,000) or more.

“ESBD” means the Electronic State Business Daily, an online platform, administered by the Statewide Procurement Division (SPD) of the Comptroller of Public Accounts, that publishes solicitations for the purpose of informing vendors of procurement opportunities and provides public notice of contract awards. The ESBD may currently be accessed at http://www.txsmartbuy.com/esbd.

“Final Written Response Score” refers to the final scoring of the Proposal based on Scoring Matrix published in the Solicitation.

“HUB” means Historically Underutilized Business, as defined by Chapter 2161 of the Texas Government Code and Title 34 of the Texas Administrative Code (TAC), § 20.282.

“HUB Subcontracting Plan” or “HSP” means written documentation regarding the use of subcontractors, which is required to be submitted with all Proposals for state agency contracts with an expected value of $90,000 or more and where TWC has determined subcontracting opportunities are probable. The HSP subsequently becomes a provision of the awarded Contract and shall be monitored for compliance by TWC during the term of the Contract.

“Major Renovation” is as defined in the federal Child Care and Development Fund (CCDF) regulations at 45 C.F.R. § 98.2 and has the meaning: any renovation that has a cost equal to or exceeding $350,000 in CCDF funds for child care centers and $50,000 in CCDF funds for family child care homes, which amount shall be adjusted annually for inflation and published on the Office of Child Care website. If renovation costs exceed these thresholds and do not include: (1) Structural changes to the foundation, roof, floor, exterior or load-bearing walls of a facility, or the extension of a facility to increase its floor area; or (2) Extensive alteration of a facility such as to significantly change its function and purpose for direct child care services, even if such http://www.txsmartbuy.com/esbd

RFP No. 3202500192 May 2025 Page 9 of 70 renovation does not include any structural change; and improve the health, safety, and/or quality of child care, then it shall not be considered Major Renovation.

“PHS” means Purchasing and HUB Services, a division of TWC.

“Proposal” means a written offer to contract with the State, submitted in response to this Solicitation.

“Respondent” means the individual or entity that submits an offer or Proposal. The term includes anyone acting on behalf of the individual or entity that submits an offer or Proposal, such as an agent, employee, and representative. For this RFP, the Successful Respondent will serve as the CCEI Program Administrator.

“Sanction(s)” means monetary remedies including recoupment, payment hold, imposition of damages, exclusion, debarment, suspension, or revocation.

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

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

“Subcontractor” refers to a person who contracts with a vendor to work or continue toward completing work for a governmental entity. The term does not include a state agency. The term includes an officer or employee of a state agency when the officer or employee contracts with a vendor in a private capacity.

“Successful Respondent” means the Respondent with whom TWC executes a Contract to provide the goods and/or services that this Solicitation requires.

For this RFP, the Successful Respondent will serve as the CCEI Program Administrator.

“Supplies” refer to tangible personal property other than Equipment.

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“Texas Early Childhood Professional Development System (TECPDS) Workforce Registry” or “Workforce Registry” is a web-based application for early childhood professionals to keep track of their education and employment history, as well as the clock hours of training they have accrued. The Workforce Registry is housed on the TECPDS website.

“Total Score” means the Final Written Response Score that includes revised points for additional evaluation activities if any, as outlined by this Solicitation.

“TWC” means the Texas Workforce Commission.

“TWC Procurement Portal” means the online platform used by TWC for publishing solicitations informing the public of procurement opportunities and response requirements and providing public notice of contract awards.

“VPTS” means Vendor Performance Tracking System, as described under Texas Government Code § 2262.055 and 34 TAC § 20.115. Reporting requirements and vendor performance factors considered in VPTS are described in Texas Government Code § 2155.089 and 34 TAC § 20.509.

ARTICLE I. PURPOSE, AUTHORITY AND

SCHEDULE OF EVENTS

1.1. PURPOSE

This RFP seeks to procure a qualified entity to serve as the Child Care Expansion Initiative (CCEI) Program Administrator for TWC’s Child Care Expansion Initiative Program for New Child Care Providers (the “CCEI Program”). The goal of the CCEI Program is to increase the supply of new licensed child care centers across Texas. The RFP sets forth both the parameters for Respondents who wish to apply to be the CCEI Program Administrator, as well as the CCEI Program parameters that the CCEI Program Administrator will carry out, including new child care center

RFP No. 3202500192 May 2025 Page 11 of 70 eligibility for CCEI Program funding, and allowable use of CCEI Program funds.

PHS will administer the procurement process for this Solicitation, which includes Solicitation publication, handling of communications from vendors, and managing the receipt of Proposals for review and evaluation.

Information regarding TWC and its programs is available online and can be accessed at www.twc.texas.gov.

1.2. AUTHORITY

TWC is soliciting the services stated in this Solicitation under of the authority Texas Government Code § 2156.121.

1.3. SCHEDULE OF EVENTS

The dates in this Schedule of Events are tentative, and TWC reserves the right to modify these dates at any time. At the sole discretion of TWC, events listed in the Schedule of Events are subject to changes and cancellation. Scheduling changes or cancellation made prior to the Deadline for Submission of Proposals will be published as an Addendum posted to the ESBD. Respondent is required to sign and return all published Addenda with the Proposal.

EVENT DATE and TIME

Solicitation Posting

Notification posted to ESBD, and Solicitation package uploaded to the TWC Procurement Portal

10/13/2025

Pre-Proposal Conference

Attendance is Optional

10/16/2025 at 2:00 PM Central Time

Deadline for Submitting Written Questions via the TWC Procurement Portal

11/06/2025 at 5:00 PM Central Time http://www.twc.texas.gov/

RFP No. 3202500192 May 2025 Page 12 of 70

EVENT DATE and TIME

Deadline to submit the draft HUB Subcontracting Plan for review

11/06/2025 at 5:00 PM Central Time

Deadline for TWC to provide the courtesy review of the draft HUB Subcontracting Plan

12/10/2025 at 5:00 PM Central Time

Estimated Date Responses to Written Questions will be uploaded to the TWC Procurement Portal and a notification posted on ESBD

12/09/2025 at 5:00 PM Central Time

Deadline for Submission of Proposals (NOTE: Proposals must be RECEIVED by TWC by the deadline via the TWC Procurement Portal)

01/21/2026 at 10:00 AM Central Time

Anticipated Notice of Intent Notification FEBRUARY, 2026

Anticipated Contract Start Date MAY, 2026

Respondent must submit its Proposal to TWC in accordance with the Deadline for Submissions of Proposals due date and time as indicated in this Schedule of Events or as changed via a notification of an Addendum posted to the ESBD.

ARTICLE II. SCOPE OF WORK

2.1. OVERVIEW/BACKGROUND

The TWC CCEI Program offers funding for new child care centers. The purpose of the CCEI Program is to increase the supply of high-quality child care across Texas. The CCEI Program supports Eligible Child Care Providers.

The CCEI Program includes two (2) separate awards (Start-Up Awards and Initial Operating Awards) to offset costs for new child care centers.

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TWC seeks an entity to serve as the CCEI Program Administrator for the CCEI Program, and to oversee and administer the application and selection process for Eligible Child Care Providers to apply for and receive CCEI Program Start-Up Awards and Initial Operating Awards.

TWC will publish CCEI Program Policy Guidance after the contract is awarded and includes the current version as Attachment 7 of this RFP. Services under the awarded Contract resulting from this RFP 3202500192 shall be provided in accordance with CCEI Program Policy Guidance and this RFP.

TWC will inform Successful Respondent of any updates to the CCEI Program Policy Guidance. Successful Respondent shall be responsible for ensuring continued compliance with the TWC CCEI Program Policy Guidance and subsequent updates throughout the term of the Contract awarded as a result of this RFP, if any.

2.2. DESCRIPTION OF SERVICES/SCOPE OF WORK/SPECIFICATIONS

The Successful Respondent will perform the following tasks under the Contract awarded under this RFP:

2.2.1 Information and Data Security

Successful Respondent must:

a. maintain information related to the Contract separately to preclude any comingling of TWC information and other information maintained by the Successful Respondent;

b. safeguard information and data collected under the Contract to maintain confidentiality, integrity, and availability;

c. not use or sell account information, and provide a written policy to ensure data privacy and security to TWC;

d. cooperate with the TWC Chief Information Security Officer (CISO) and security team in the detection and remediation of any security

RFP No. 3202500192 May 2025 Page 14 of 70 vulnerability of the software program(s) and/or platform(s) in accordance with Attachment 5 - Data Use Agreement; and

e. adhere to TWC’s Prohibited Technology Policy, in accordance with Attachment 1 TWC Terms & Conditions Section 3.41 that requires all contractors to refrain from using any prohibited technologies on systems that store, maintain, or use TWC information, or any system connected to such a system.

2.2.2 Ramp-Up Period Milestones

a. Within sixty (60) days of Contract execution, the Successful Respondent shall: complete development of digital resources and/or guides to assist Applicants with completing the CCEI award application, including accommodating linguistic differences and meeting Americans with Disabilities Act (ADA) and other pertinent requirements;

Note: Upon Contract execution, TWC will share with Successful Respondent currently available resources that can be updated and adapted for the CCEI Program.

b. Within ninety (90) days of Contract execution, the Successful Respondent shall: implement outreach activities to generate awareness for the CCEI Program Awards;

c. Within ninety (90) days of Contract execution, the Successful Respondent shall: work with TWC to secure approval for security requirements for technology used to implement and manage the CCEI Program, including technology for applications, provider support, data storage, and payment systems; and

d. Within one hundred and twenty (120) days of Contract execution, the Successful Respondent shall: launch a user-friendly online application form and a digital Business Plan template for Eligible Child Care Providers to complete and submit for the CCEI Program Awards. The Business Plan template must satisfy the RFP definition and may be embedded in the CCEI Program Award application form.

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2.2.3 Program Administration

The Successful Respondent shall:

a. Manage staffing for program implementation at a level that is appropriate, reasonably lean, and sufficient to support the required scope of work and timeline for implementation;

b. Administer the CCEI Program Awards for Eligible Child Care Providers based on the following overall parameters:

1) Administration of the awards must comply with RFP requirements, including those specified in Attachment 7, CCEI Program Policy Guidance;

2) Eligible Child Care Providers receiving awards must be those opening a new child care center location to increase the overall child care enrollment capacity in Texas. Refer to Attachment 7, CCEI Program Policy Guidance, for requirements related to new child care center locations;

3) TWC’s approved budget for the CCEI Program is $25,000,000, which includes funding for CCEI Program Awards and the cost to administer the CCEI Program. Successful Respondent’s budget to administer the CCEI Program, must not exceed ten percent (10%, i.e., $2,500,000) of the TWC budget for the CCEI Program. Should TWC exercise the option to renew the Contract, the ten percent (10%) limit will remain in force throughout the term of the Contract;

4) There are two (2) types of CCEI Program Awards, Start-Up Award and Initial Operating Award, which the Successful Respondent will need to administer under the Contract from this

RFP;

5) Timelines for application and award are specified in Attachment 7, CCEI Program Policy Guidance;

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6) Subject to funding availability, each Eligible Child Care Provider will receive no more than one (1) Start-Up Award and, if continuing to meet eligibility requirements and receiving the HHSC CCR permit within seven (7) months of Start-Up Award, no more than one (1) Initial Operating Award per child care center location (refer to Attachment 7, CCEI Program Policy Guidance, for additional information related to the HHSC CCR permit);

7) Funding will be determined based on the following award methodology. Refer to Attachment 7, CCEI Program Policy Guidance, for additional details.

Start-Up Award

Proposed Number of New Slots* Amount 10-24 $15,000 25-49 $30,000 50-74 $45,000 75-100 $60,000 101 or more $75,000

Initial Operating Award

Calculation:

Number of new Slots x Market Rate Survey* 75th percentile average daily market rate x 3 months (63 days)

* As defined in Attachment 7, CCEI Program Policy Guidance

8) The application review process leading to awards must be based on objective criteria that measures risks, likelihood for success, and readiness for implementation within the CCEI Program parameters. (Note: The criteria will be mutually agreed upon and finalized with TWC upon Contract execution);

9) The Successful Respondent must demonstrate its recruitment effort to ensure representation of geographic location and facility size (capacity); and

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10) The Successful Respondent must require all CCEI Program Award recipients to report expenditures through interim and final reports, monitor the use of funds for at least fifty percent (50%) of CCEI Program Award recipients by requiring documentation for actual expenditures from each awarded Eligible Child Care Provider, and perform additional monitoring of expenditures as needed.

2.2.4 Key Provisions Required for CCEI Program Administration

a. The Successful Respondent shall design a process for tracking CCEI Program Awards and payments made to providers. Refer to Attachment 7, CCEI Program Policy Guidance, for conditions leading to disqualification;

b. The Successful Respondent must enter into and execute agreements with each provider receiving the CCEI Program Awards. At a minimum, the executed agreement must include requirements specified in Attachment 7, CCEI Program Policy Guidance;

c. The Successful Respondent must not authorize expenditures via verbal or other written instruments that are not a fully executed agreement with a provider receiving the awards;

d. The Successful Respondent should plan to increase Texas child care capacity by at least 6,000 new Slots for enrollment through the award administration;

e. To the extent practically possible, the Successful Respondent must balance the portions of funding to provide the same number of awards to Eligible Child Care Providers in partnerships of Employer-Supported Site-Based Child Care and to providers in Child Care Desert zip codes (based on the latest TWC listing available on https://www.twc.texas.gov/programs/child-care/data-reports-plans);

https://www.twc.texas.gov/programs/child-care/data-reports-plans

RFP No. 3202500192 May 2025 Page 18 of 70

2.2.5 Support Eligible Child Care Providers in line with the

following parameters:

a. Provide a substantive response addressing each inquiry from providers by maintaining an average response time of two (2) business days;

b. Support provided by Successful Respondent must clearly demonstrate objectivity, impartiality, and fairness;

c. Develop digital resources and/or guides to assist Applicants with completing the award application (Refer to Section 0 Ramp-Up Period Milestones for specific requirements);

d. Develop and implement a decision-review process for providers disagreeing with the Successful Respondent’s decision on awards;

e. Provide targeted post-award support to ensure awarded Eligible Child Care Providers’ successful implementation, including attaining the child care licensing permit from HHSC CCR, opening the new facility, and committing to remaining open for a minimum of twelve (12) months;

Note: Awarded Eligible Child Care Providers that received funds but did not remain open for a minimum of twelve (12) months or did not spend funds on only allowable costs may be required to return all or a portion of the provided funding to TWC;

f. Provide support to awarded Eligible Child Care Providers to ensure their compliance with the following allowable and unallowable expenditures for the CCEL Program Awards, including documentation and reporting requirements related to the expenditures:

1) Allowable Costs for business use include:

A. Regular monthly rent or mortgage payments and utility bills of your secured location (down payments, security deposits, and other one-time payments associated with securing a location are not permitted);

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B. Indoor, outdoor, and office furnishings, Supplies, and Equipment (See Attachment 7, CCEI Program Policy Guidance, for requirements related to Equipment purchases by awarded Eligible Child Care Providers);

C. Education, classroom, kitchen, and safety materials or supplies;

D. Permitting fees and required background checks, for example, for CCR or as related to inspections;

E. Staffing costs to support operations;

F. Outreach costs associated with recruitment of families and staff; and

G. Minor renovations.

2) Unallowable Costs: Unallowable costs under the CCEL Program include but are not limited to the following. The Successful Respondent will work closely with TWC to make additional determinations related to allowability inquiries received from Eligible Child Care Providers.

A. Goods or services for personal use;

B. Construction of new facilities and Major Renovations1;

1 If TWC were to receive additional funding that allows Major Renovations, TWC, at its own sole discretion, may amend the Contract awarded under this RFP to add funding to support Major Renovations and specify the extent of support available.

RFP No. 3202500192 May 2025 Page 20 of 70

C. Down payments, security deposits, and other one-time payments associated with securing a location by the child care center;

D. Purchase of real properties, including the purchase or improvement of land;

E. Purchase or any cost related to vehicles; and

F. Expenditures incurred before agreement execution between the Eligible Child Care Provider and the Successful Respondent, except for (1) background checks required for the submission of the permit application to HHSC CCR and (2) the amount paid for the permitting fees;

2.2.6 Quality Assurance and Improvement

The Successful Respondent shall:

a. Develop and implement a process of continuous quality improvement for the administration of CCEI Program Awards, including data collection and synthesizing the data for reporting to TWC;

b. Implement mechanisms that allow child care providers to provide feedback to support continuous quality improvement;

c. Track, collect, and provide monthly activity reports to TWC including the following information for each Applicant and Eligible Child Care Provider:

1) Name of all Applicants and, if different, legal business names;

2) Applicant address, including zip code and county, for the secured location;

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3) Full name and contact information of the individual authorized to submit an application and to enter into a binding agreement on behalf of the Applicant;

4) Application status (received, processed, withdrawn, denied, awarded, invoice sent to TWC, and paid) and the date a status is assigned;

5) Paid amount for Start-Up Awards and Initial Operating Awards;

6) Attributes of awarded Eligible Child Care Providers: Child Care Desert, Employer-Supported Site-Based Child Care, or both;

7) Total number of new capacity (i.e., licensed number of slots) proposed by awarded Eligible Child Care Providers;

8) Total number of new capacity (i.e., licensed number of slots) created by awarded Eligible Child Care Providers;

9) Total number of new infant capacity (i.e., licensed number of slots) proposed by awarded Eligible Child Care Providers;

10) Total number of new infant capacity (i.e. licensed number of slots) created by awarded Eligible Child Care Providers;

11) If applicable, primary reason cited by Eligible Child Care Providers for failing to meet permitting requirements by the deadline;

12) HHSC CCR operation numbers;

13) Texas Workforce Registry account number for the center director or administrator;

14) Phone number and email address for the licensed Eligible Child Care Provider;

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15) Names of Employer Partners for Employer-Supported Site- Based Child Care; and

16) Status of monitoring activities;

Note: Successful Respondent will provide the collected provider-level data to support TWC’s longitudinal analysis of outcomes to TWC upon request.

d. Maintain and safeguard confidentiality of the information and data collected under the Contract.

2.2.7 Collaboration with TWC

a. Schedule and hold bi-weekly meetings with TWC during the first ninety

(90) days after Contract execution, with the first meeting scheduled at the end of the period encompassing any partial week upon Contract execution and the two (2) full weeks that follow;

b. Successful Respondent must work with TWC to finalize all developed resources for the CCEI Program;

c. After the first ninety (90) days after Contract execution, schedule and hold monthly meetings with TWC to discuss program progress under the Contract;

d. Coordinate with TWC as needed to remain informed of state-level programs and potential related funding streams;

e. Provide monthly activity reports and quarterly reports to TWC, summarizing implementation and including additional topics TWC will define with the Successful Respondent upon Contract execution;

f. Submit an annual report to TWC to include a summary of key achievements that are supported by data, major obstacles encountered, solutions and/or outcomes of the obstacles, risks that have emerged, and strategies implemented to mitigate the risks;

g. Provide ad-hoc reports to TWC upon request;

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h. Escalate and discuss monitoring issues with TWC within ten (10) business days of discovering the issues;

i. Submit a final report a week before the Contract end date, summarizing all monitoring outcomes;

j. Comply with the following payment schedule by submitting invoices accordingly during the Contract Term:

1) Fees for services provided by the Successful Respondent will be paid on a monthly basis as reimbursement for the services performed during the prior month;

2) Issuance of awards will be in accordance with the application timelines specified in Attachment 7, CCEI Program Policy Guidance. TWC will pay Successful Respondent upon submission of documentation indicating that funding is needed for additional awards and that the actual amount of cash on hand for awards to providers is at or below $5,000,000 in accordance with the Successful Respondent’s bond limit. Invoiced amounts must not exceed $5,000,000 on each invoice per Successful Respondent’s estimates based on awards approved for issuance per the award methodology specified under Program Administration, Section 2.2.3(b). The final invoice for child care provider awards will be $5,000,000, the amount remaining on the Contract budget for awards, or the amount needed to pay the final awards, whichever is less; and

3) The Successful Respondent must clearly demonstrate compliance regarding the total cost for the Successful Respondent to provide the services to administer the CCEI Program, which must not exceed ten percent (10%) of the approved budget for the CCEI Program for the initial Contract Term and, if applicable, each Contract renewal.

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ARTICLE III. GENERAL INFORMATION

3.1. TERMS AND CONDITIONS

The Terms and Conditions identified in the Solicitation and Attachment 1 – TWC Terms & Conditions -and Attachment A –l Special Federal Award Terms and Conditions-CCDF STC

Terms and Conditions are applicable to this Solicitation and any Contract resulting from this Solicitation. TWC reserves the right to incorporate additional provisions in the Contract in the best interest of TWC.

In the event of a conflict between this Solicitation and applicable laws and regulations, precedence shall be given to the laws and regulations.

3.2. CONTRACT AWARD

TWC intends to award one (1) Contract as a result of this Solicitation.

3.3. CONTRACT TERM

The initial Contract Term will commence on the fully executed Contract date and expire after approximately twenty-four (24) months. At the end of the initial Term, TWC will have the sole option to renew the term of the Contract for two (2) additional eighteen (18) month terms.

The Contract is contingent upon the continued availability of funding. If funds become unavailable through lack of appropriations, legislative budget cuts, amendment of the General Appropriations Act, TWC consolidation of offices, or any other disruption of current appropriations, Termination provisions of Attachment 1- TWC Terms and Conditions shall apply.

Following the initial Contract Term and any allowable renewals or extensions, TWC may extend any resulting Contract for not more than one

(1) additional option period at the current contracted rate to address immediate operational or service delivery needs. If the resulting Contract does not include a defined option period, the extension is limited to one year.

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3.4. PRICE ADJUSTMENT

Pricing agreed to in any resulting Contract shall be firm and remain constant based on the price agreed upon at award through the life of the Contract and any exercised optional renewal terms, if applicable.

3.5. CONTRACT AMENDMENTS

The Contract may be amended only by written agreement signed by both the Successful Respondent and TWC.

3.6. NO GUARANTEE OF VOLUME,USAGE,OR COMPENSATION

TWC makes no guarantee of volume, usage, or total compensation to be paid to a Respondent under an awarded Contract, if any, resulting from this Solicitation.

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

3.7. GOVERNMENTAL ENTITIES

If Respondent is responding to this Solicitation in its capacity as a governmental entity, certain Terms and Conditions found in this Solicitation, including exhibits and attachments, may not be applicable. Furthermore, to the extent permitted by law, if a Proposal is received from a governmental entity, TWC reserves the right to enter into an interagency or interlocal agreement with the governmental entity.

3.8. PROPOSAL PERIOD

Proposals shall be binding for a period of one hundred and eighty (180) days after the Submission of Proposals due date. A Respondent may extend the time for which its Proposal will be honored. Upon Contract execution, prices agreed upon by the Successful Respondent(s) are an irrevocable offer for the term of the Contract and any Contract renewals or extension(s). No other costs, rates, or fees shall be payable to the Successful Respondent unless expressly agreed upon in writing by TWC.

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3.9. COSTS INCURRED

Respondent understands that issuance of this Solicitation in no way constitutes a commitment by TWC to award a Contract. Additionally, TWC is not liable for any costs incurred by a Respondent in the preparation of a response to this Solicitation. Costs of developing Proposals, preparing for, or participating in Oral Presentations and Site Visits, or any other similar expenses incurred by a Respondent are entirely the responsibility of the Respondent, and will not be reimbursed in any manner by the State of Texas.

3.10. PUBLIC INFORMATION ACT -RESPONDENT PROPOSAL

Information, documentation, and other materials submitted in connection with this Solicitation or resulting Contract may be subject to public disclosure pursuant to the Texas Public Information Act, Texas Government Code, Chapter 552. See Attachment 1 - Terms & Conditions, Section 2.4.

If Respondent asserts that information provided in its Proposal is exempt from disclosure under the Texas Public Information Act, Respondent must mark and submit two separate, searchable Portable Document Format (PDF) copies (Original Proposal and “Public Information Act Copy,” including attachments, of the Original Proposal) as identified below. This copy is in addition to the original and all copies otherwise required under the provisions of this Solicitation).

a. Mark Original Proposal:

1) Mark the top of the front page with the words “CONTAINS CONFIDENTIAL INFORMATION” in large, bold, capitalized letters (the size of, or equivalent to, 12-point Arial font or larger);

2) Mark the bottom of each page that contains information that Respondent claims is exempt from public disclosure with the words

“CONTAINS CONFIDENTIAL INFORMATION”;

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3) Identify, adjacent to each portion of the Proposal that Respondent claims is exempt from public disclosure, the claimed exemption from disclosure. Vague and general claims to confidentiality will not be acceptable (NOTE: no redactions are to be made in the Original Proposal;

b. Mark a separate Public Information Act Copy of Proposal:

1) Mark the copy at the top of the front page with “Public Information Act Copy” in large, bold, capitalized letters (the size of, or equivalent to, 12-point Arial font or larger);

2) Each portion Respondent claims is exempt from public disclosure must be redacted (blacked out); and

3) Identify, adjacent to each redaction, the claimed exemption from disclosure. Each identification provided as required by this subsection (b) must be identical to the redactions identified in subsection (a)(3), above. The only difference in required markings and information between the Original Proposal and the “Public Information Act Copy” of the Proposal will be redactions, which can only be made in the “Public Information Act Copy.” There must be no redactions in the Original Proposal.

Respondent should not submit a Public Information Act Copy indicating that the entire Proposal is exempt from disclosure. Merely making a blanket claim that the entire Proposal is protected from disclosure because it contains any amount of confidential, proprietary, trade secret, or privileged information is not acceptable, and this blanket claim will not be considered by TWC.

A Proposal should not be marked or asserted as copyrighted material. If Respondent asserts a copyright to any portion of its response, by submitting a Proposal, Respondent agrees to reproduction and posting on public websites by the State of Texas, including all other state agencies, without cost or liability and, additionally, agrees to allow the State of Texas to

RFP No. 3202500192 May 2025 Page 28 of 70 provide a copy of the Proposal to individuals making a Public Information Act request for the response.

TWC may, in its sole discretion, (1) disqualify all Respondents that fail to fully comply with the requirements set forth in this section, or

(2) offer all Respondents additional time to comply if they fail to fully comply with the requirements set forth in this section.

Submitting partial or incomplete information that suggests inclusion of confidential information constitutes failure to comply with the requirements set forth in this section.

3.11. PUBLIC INFORMATION ACT –CONTRACT AWARD

Within five (5) days from Contract execution, the Successful Respondent must submit a “Public Information Act Copy” of the Original Executed Contract (in addition to the original executed contract) to the TWC contract manager by email. The Public Information Act Copy must meet the following requirements:

a. The copy must be clearly marked as “Public Information Act Copy” on the front page in large, bold, capitalized letters (the size of, or equivalent to, 12-point Arial font or larger);

b. Each portion Successful Respondent claims is exempt from public disclosure must be redacted (blacked out); and

c. Successful Respondent must identify, adjacent to each redaction, the claimed exemption from disclosure. Each identification provided as required in Subsection (b) of this section must be identical to those set forth in the Original Proposal as required in Section 3.10.(a)(2) above.

The only difference in required markings and information between the Original Contract and the “Public Information Act Copy” of the contract will be redactions, which can only be included in the “Public Information Act Copy.” There must be no redactions in the Original Contract.

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3.12. RESPONDENT WAIVER –INTELLECTUAL PROPERTY

SUBMISSION OF ANY DOCUMENT TO TWC IN RESPONSE TO THIS

SOLICITATION CONSTITUTES AN IRREVOCABLE WAIVER AND

AGREEMENT BY RESPONDENT TO FULLY INDEMNIFY THE STATE OF

TEXAS AND TWC FROM ANY CLAIM OF INFRINGEMENT AGAINST THE

STATE OF TEXAS AND TWC REGARDING THE INTELLECTUAL

PROPERTY RIGHTS OF RESPONDENT OR ANY THIRD PARTY FOR ANY

MATERIALS SUBMITTED TO TWC BY RESPONDENT.

3.13. INSURANCE

For the duration of any Contract resulting from this Solicitation, the Successful Respondent shall acquire insurance, bonds, or both, with financially sound and reputable independent insurers, in the type and amount listed in Attachment 4 - Insurance Requirements.

Notwithstanding the preceding, TWC reserves the right to consider reasonable alternative methods of insuring the Contract in lieu of the insurance policies customarily required. It will be the Respondent's responsibility to recommend to TWC alternative methods of insuring the Contract. Any alternatives proposed by Respondent should be accompanied by a detailed explanation regarding Respondent's inability to obtain the required insurance and/or bonds. TWC shall be the sole and final judge as to the adequacy of any substitute form of insurance coverage.

Failure to maintain insurance coverage or acceptable alternative methods of insurance shall be deemed a breach of Contract.

3.14. SANCTIONS AND REMEDIES

3.14.1. General

The Sanctions and remedies will be referred to as “Sanctions.”

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3.14.2. Assessment of Sanctions

Once TWC has determined that Sanctions are to be assessed, the Contract Manager shall notify the Successful Respondent of the assessment(s). TWC will withhold Sanctions from payments to the Successful Respondent or, if no payments are to be made, TWC will make demand of payment of Sanctions. The Successful Respondent must make payment within thirty (30) days of the TWC’s demand. In the event the Successful Respondent fails to pay within the thirty (30) day period, TWC may make a claim for payment against the performance bond, with or without notice to the Successful Respondent, if applicable.

3.14.3. Failure to Assess Sanctions

The failure of TWC to assess Sanctions in any instance where TWC is entitled to Sanctions under the terms of this Solicitation, or the resulting Contract shall not constitute waiver in any fashion of TWC’s rights to assess Sanctions.

3.14.4. Failure to Notify TWC of a Change of Ownership or Control or Change in Financial Condition.

The failure of the Successful Respondent to notify TWC of a change of ownership or control or change in financial condition as required in Section 3.17 (Change in Ownership or Financial Condition) may result in the Successful Respondent being assessed Sanctions in the amount of five hundred dollars ($500) per incident.

3.14.5. Failure to Comply with Disclosure Requirement.

The failure of the Successful Respondent to comply with the disclosure requirement in Attachment 1 - Terms and Conditions, Section 2.3 may result in the Successful Respondent being assessed Sanctions in the amount of one thousand dollars ($1000) per incident.

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3.14.6. Failure to Produce Records or Information as part of

Background Investigation.

The failure of the Successful Respondent to cooperate with and/or produce records or information as part of a background investigation conducted pursuant to Attachment 1 - Terms & Conditions, Section

2.31 may result in the Successful Respondent being assessed Sanctions in the amount of one thousand dollars ($1000) ) per day for each day the records/information are not produced, or answers are not provided.

3.14.7. Failure to Produce Records or Information as part of an Audit.

The failure of the Successful Respondent to cooperate with and/or produce records or information as part of an audit conducted pursuant to Attachment 1 - Terms & Conditions, Sections 2.15-2.17 or requested pursuant to Attachment 1 - Terms & Conditions, Section

2.39 may result in the Successful Respondent being assessed Sanctions in the amount of twenty five hundred dollars ($2500) per day for each day the records/information are not produced, or answers are not provided.

3.15. LIQUIDATED DAMAGES

3.15.1 General.

It is agreed by TWC and the Successful Respondent that:

a. If the Successful Respondent does not provide or perform the requirements referred to or listed in this Solicitation or fulfill the obligations of the Contract, damage to TWC will result;

b. establishing the precise measure of damages in the event of default by the Successful Respondent may be (i) costly, (ii) time consuming, or (iii) difficult or impossible to calculate;

c. the liquidated damage assessments contained herein represent a good faith effort to quantify the damages that could reasonably be anticipated at the time of execution of the Contract;

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d. the damages set forth herein are just and reasonable;

e. nothing contained in this section shall be construed as relieving the Successful Respondent from performing all Contract requirements whether or not said requirements are set forth herein; and

f. TWC may, therefore, in its sole discretion, deduct damages from the compensation otherwise due to the Successful Respondent. All assessments of damages shall be within the sole discretion of TWC.

3.15.2 Liquidated Damages Assessment.

Once TWC has determined that liquidated damages are to be assessed, the TWC shall notify the Successful Respondent of the assessment(s).

Upon receipt of written notice, the Successful Respondent will have ten

(10) days to provide a written explanation of any justification that may be applicable to the liquidated damages being considered and a corrective action plan for bringing the operations within the standards specified.

TWC has the right to amend the…