Initials of Bidder: _______

REQUEST FOR PROPOSAL (RFP) – HOMESTEAD EXEMPTION AUDIT

Title: Homestead Exemption Audit Service RFP Number: 2025-008 (Reissued) Issue Date: October 31, 2025 Proposal Due Date: November 19, 2025

INTRODUCTION

The Montgomery Central Appraisal District invites proposals from qualified vendors to provide comprehensive audit services for verifying the eligibility of current residential homestead exemptions. The purpose of this initiative is to ensure compliance with the Texas Property Tax Code and maintain the integrity of the District’s appraisal records. The proposed solution should support the District’s statutory requirements, including Texas Property Tax Code Sec. 11.43 (h-1), by providing a reliable and efficient program to review and confirm exemption eligibility. The primary objective is to identify ineligible or potentially fraudulent exemptions, including but not limited to individuals claiming homestead exemptions on multiple properties, deceased owners whose exemptions have not been removed, owners receiving a homestead exemption for a property where they no longer reside, and any other disqualified or unqualified exemptions under state law. The District intends to implement a tested and proven audit solution that integrates effectively with existing systems, supports exemption enforcement, and offers long-term value.

This RFP outlines the District’s requirements and expectations. Proposals will be evaluated based on criteria such as experience, pricing, quality of work, and compliance with specifications. As used herein, the terms “vendor,” “seller,” “contractor,” “bidder” or any similar terms used to reference the bidder shall mean the person or entity offering a proposal in response to this request for proposal.

1.0 GENERAL REQUIREMENTS:

1.1 Read this entire document carefully. Follow all instructions. You are responsible for fulfilling all requirements and specifications. Be sure you understand them.

1.2 General Requirements apply to all advertised bids; however, these may be superseded, whole or in part, by the scope, special requirements, specifications or other data contained herein.

1.3 Governing Law: Bidder is advised that these requirements shall be fully governed by the laws of the State of Texas and that Montgomery Central Appraisal District (District) may request and rely on advice, decisions and opinions of the Attorney General of Texas and the District’s attorney concerning any portion of these requirements.

1.4 Bid Proposal Completion: Complete, sign, and return to the District’s Chief Appraiser ONE (1) complete bid proposal containing information requested herein and any other information applicable to the Vendor’s proposal. An authorized representative of the bidder must sign the proposal. The terms of the winning proposal reduced to a written contract will be binding only when signed by the Chief Appraiser and a purchase order authorizing the products or services has been issued.

1.5 Bid Returns: Bidders must return all completed bids to the District at 109 Gladstell Street Conroe, Texas (Physical address for hand-delivered bids) no later than 2:00 p.m. on the date specified.

Late bids will not be accepted. Bids must be submitted in a sealed envelope conspicuously marked Attention: RFP Committee – Exemption Audit. Mailed bids should be addressed as follows:

Montgomery Central Appraisal District Attention: RFP Committee – Exemption Audit

PO BOX 2233

Conroe, Texas 77305

MONTGOMERY CENTRAL APPRAISAL DISTRICT

REQUEST FOR PROPOSALS — NOVEMBER 2025

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1.6 Governing Forms: In the event of any conflict between the terms and provisions of these requirements and the specifications, the specifications shall govern. In the event of any conflict of interpretations of any part of this overall document, the Montgomery Central Appraisal District interpretation shall govern.

1.7 Addendums: When specifications are revised, the District’s Chief Appraiser will issue an addendum addressing the nature of the change. Bidders must sign and include it in the returned bid package.

1.8 Hold Harmless Agreement: Contractor shall indemnify and hold the District harmless from all claims for personal injury, death and/or property damage arising from any cause whatsoever, resulting directly or indirectly from contractor’s performance. Contractor shall procure and maintain, with respect to the subject matter of this bid, appropriate insurance coverage including, as a minimum, public liability and property damage with adequate limits to cover contractor’s liability as may arise directly or indirectly from work performed under terms of this bid.

Certification of such coverage must be provided to the District upon request.

1.9 Waiver of Subrogation: Bidder and bidder’s insurance carrier waive any and all rights whatsoever with regard to subrogation against the District as an indirect party to any suit arising out of personal or property damages resulting from bidder’s performance under this agreement.

1.10 Severability: If any section, subsection, paragraph, sentence, clause, phrase or word of these requirements or the specifications shall be held invalid, such holding shall not affect the remaining portions of these requirements and the specifications and it is hereby declared that such remaining portions would have been included in these requirements and the specifications as though the invalid portion had been omitted.

1.11 Bonds: If this bid requires submission of bid guarantee and performance bond, there will be a separate page explaining those requirements. Bids submitted without the required bid bond or cashier’s checks are not acceptable.

1.12 Taxes: Montgomery Central Appraisal District is exempt from all federal excise, state and local taxes unless otherwise stated in this document. The District claims exemption from all sales and/or use taxes under Texas Tax Code Chapter 151, as amended (formerly, Chapter 20, Title 122A, Vernon’s Texas Civil Statutes). Texas Limited Sales Tax Exemption Certificates will be furnished upon written request to the District Administration Department.

1.13 Fiscal Funding: A multi-year lease or lease/purchase arrangement (if requested by the specifications), or any contract continuing because of an extension option, must include fiscal funding out. If, for any reason, funds are not appropriated to continue the lease or contract, said lease or contract shall become null and void. After expiration of the lease, leased equipment shall be removed by the bidder from the using-department without penalty of any kind or form to the District. All charges and physical activity related to delivery, installation, removal and redelivery shall be the responsibility of the bidder.

1.14 Pricing: Prices for all goods and/or services shall be firm for the duration of this contract and shall be stated on the bid sheet. Prices shall be all inclusive. No price changes, additions, or subsequent qualifications will be honored during the contract. All prices must be written in ink or typewritten. Pricing on all transportation, freight, and other charges are to be prepaid by the contractor and included in the bid prices. If there are any additional charges of any kind, other than those mentioned above, specified or unspecified, bidder MUST indicate the items required and attendant costs or forfeit the right to payment for such items.

1.15 Silence of Specifications: The apparent silence of specifications as to any detail, or the apparent omission from it of a detailed description concerning any point, shall be regarded as meaning

Page 3 of 8 Initials of Bidder: _______ that only the best commercial practice is to prevail and that only material and workmanship of the finest quality are to be used. All interpretations of specifications shall be made based on this statement. The items furnished under this contract shall be new, unused, of the latest product in production to commercial trade, and shall be of the highest quality as to materials used and workmanship. The manufacturer furnishing these items shall be experienced in design and construction of such items and shall be an established supplier of the item bid.

1.16 Supplemental Materials: Bidders are responsible for including all pertinent data in the returned bid package. Literature, brochures, data sheets, specification information, completed forms requested as part of the bid package and any other facts which may affect the evaluation and subsequent contract award should be included. Materials such as legal documents and contractual agreements, which the bidder wishes to include as a condition of the bid, must also be in the returned bid package. Failure to include all necessary and proper supplemental materials may result in rejection of the entire bid.

1.17 Evaluation: Evaluation shall be used as a determinant as to which bid items or services are the most efficient and/or most economical for the District and shall be based on all factors, which have a bearing on price and performance of the items in the user environment. All bids are subject to tabulation by District Administration and recommendation to the District Board of Directors.

Compliance with all bid requirements, delivery and needs of the using department are considerations in evaluating bids. Pricing is NOT the only criteria for making a recommendation.

The District reserves the right to contact bidder, at any time, to clarify, verify or request information on the bid.

1.18 Disqualification of Bidder: Upon signing this bid document, a bidder offering to sell supplies, materials, services, or equipment to the District certifies that the bidder has not violated the antitrust laws of this state codified in section 15.01, et seq., of the Texas Business & Commerce Code, or the federal antitrust laws, and has not communicated directly or indirectly the bid made to any competitor or any other person engaged in such line of business. Any or all bids may be rejected if the District believes that collusion exists among the bidders. Bids in which the prices are obviously unbalanced may be rejected. If multiple bids are submitted by a bidder and after the bids are opened, one of the bids is withdrawn, the result will be that all the bids submitted by that bidder will be withdrawn; however, nothing herein prohibits a vendor from submitting multiple bids for different products or services.

1.19 Awards: The District reserves the right to award this contract based on lowest and best bid in accordance with the laws of the State of Texas, to waive any formality or irregularity, to make awards to more than one bidder, and to reject any or all bids. In the event the lowest dollar bidder meeting specifications is not awarded a contract, the bidder may appear before the Board of Directors and present evidence concerning his responsibility. The District reserves the right to withdraw any award until execution by the proper authority.

1.20 Assignment: The successful vendor may not assign, sell or otherwise transfer this contract without written permission of the District Board of Directors.

1.21 Term Contracts: If the contract is intended to cover a specific time, said time will be given in the specifications under scope.

1.22 Contract Obligation: The District Board of Directors must award the contract, and the Chief Appraiser must sign the contract before it becomes binding on the District or the bidders.

Department heads are not authorized to sign agreements for the District. Binding agreements shall remain in effect until all products and/or services covered by this purchase have been satisfactorily delivered and accepted.

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1.23 Purchase Order and Delivery: The successful bidder shall not provide services without a District Purchase Order signed by an authorized agent of the District Administration.

1.24 Contract Extension: Extensions must be approved by the District’s Board of Directors and may be made only by written agreement between the District and the bidder. Any price escalations are limited to those stated by the bidder in the original bid.

1.25 Termination: The District reserves the right to terminate the contract immediately for default if Vendor breaches any of the terms therein, including warranties of bidder or if the bidder becomes insolvent or commits acts of bankruptcy. Such right of termination is in addition to and not in lieu of any other remedies, which the District may have in law or equity. Default may be construed as, but not limited to, failure to deliver the proper goods and/or services within the proper amount of time, and/or to properly perform any and all services required to the District’s satisfaction and/or to meet all other obligations and requirements. Contracts may be terminated without cause upon thirty (30) days written notice to either party unless otherwise specified.

1.26 Escalation Clause: Successful bidder may apply for a price increase to the District. The price increase will be the amount of any increase to the vendor from his supplier. Written documentation of the increase must be provided to the Chief Appraiser 45 days in advance of any increase. No application for a price increase may be submitted within the first six (6) months of this contract. Increases of more than 20% of the original bid price will not be considered.

2.0 TERMS AND CONDITIONS:

2.1 Warranty/Price:

A. The price to be paid by the District shall be that contained in Seller’s quote or bid which Seller warrants to be no higher than Seller’s current prices on orders by others for services of the kind and specification covered by a similar order under similar or like conditions. In the event Seller breaches this warranty the prices and costs shall be reduced to the Seller’s current costs on orders by others. The District may cancel this contract without liability for breach of this warranty.

B. The Seller warrants that no person or selling agency has been employed or retained to solicit or secure any District order based upon any agreement or understanding for commission, percentage, brokerage, or contingent fee excepting bona fide employees of bona fide established commercial or selling agencies maintained by the Seller for the purpose of securing business. A breach or violation of this warranty gives the District the right, in addition to any other rights, to cancel this contract without liability.

2.2 Warranty: Seller shall not limit or exclude any implied warranties and any attempt to do so shall render an order voidable at the option of the District. Seller warrants that the services furnished will conform to the specifications and description listed in the bid invitation and purchase order as applicable.

2.3 Cancellation: The District shall have the right to cancel for default all or any part of the undelivered portion of an order if Seller breaches any of the terms hereof including warranties of Seller, or if the Seller becomes insolvent or files for protection under the bankruptcy laws.

Such rights of cancellation are in addition to and not in lieu of any other remedies, which the District may have in law or equity.

2.4 Termination: The performance of work under a Purchase Order may be terminated in whole or in part by the District in accordance with this provision. Termination of work shall be effected by the delivery to the Seller of a “Notice of Termination” specifying the extent to which performance of work under the order is terminated and the date on which such termination becomes effective. This right of termination is in addition to the other rights of the District herein.

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2.5 Force Majeure: Force Majeure means a delay encountered by a party in the performance of its obligations under this Agreement, which is caused by an event beyond the reasonable control of that party. Without limiting the generality of the foregoing, “Force Majeure” shall include but not be restricted to the following types of events: acts of God or public enemy; acts of governmental or regulatory authorities; fires, floods, epidemics or serious accidents; unusually severe weather conditions; strikes, lockouts, or other labor disputes; and defaults by subcontractors. In the event of a Force Majeure, the affected party shall not be deemed to have violated its obligations under this Agreement, and the time for performance of any obligations of that party shall be extended by a period of time necessary to overcome the effects of the Force Majeure, provided that the foregoing shall not prevent this Agreement from terminating in accordance with the termination provisions. If any event constituting a Force Majeure occurs, the affected party shall notify the other parties in writing, within twenty-four (24) hours, and disclose the estimated length of delay, and cause of the delay.

2.6 Assignment-Delegation: No right or interest in an order shall be assigned or delegation of any obligation made by Seller without the written permission of the District. Any attempted assignment or delegation by Seller shall be wholly void and totally ineffective for all purposes unless made in conformity with this paragraph.

2.7 Waiver: No claim or right arising out of a breach of any contract can be discharged in whole or in part by a waiver or renunciation of the claim or right unless the waiver or renunciation is supported by consideration and is in writing signed by the aggrieved party.

2.8 Modification: A Purchase Order can be modified or rescinded only in writing, signed by both of the parties or their duly authorized agents.

2.9 Parol Evidence: This writing is intended by the parties as a final expression of their agreement and as a complete and exclusive statement of the terms of this agreement. No course of prior dealings between the parties nor any usage of trade shall be relevant to supplement or explain any terms of this agreement or to determine the meaning of this agreement even though the accepting or acquiescing party has knowledge thereof and opportunity for objection.

Terminology in this this agreement, if defined by the Uniform Commercial Code, (the “UCC”), shall have the UCC definition.

2.10 Applicable Law: This agreement shall be governed by the laws of the State of Texas in effect on the date of the purchase order.

2.11 Advertising: Seller shall not advertise or publish, without the District’s prior consent, the fact that the District has entered into any contract, except to the extent necessary to comply with proper requests for information from an authorized representative of the federal, state, or local government.

2.12 Right to Assurance: Whenever the District in good faith has reason to question the other party’s intent to perform, the District may demand that the other party give written assurance of his intent to perform. In the event that a demand is made and no assurance is given within five (5) days, the District may treat this failure as an anticipatory repudiation of the contract.

2.13 Venue: Both parties agree that venue for any litigation arising from this contract shall lie in Conroe, Montgomery County, Texas.

2.14 Prohibition Against Personal Interest in Contracts: No officer or employee of the District shall have a financial interest, direct or indirect, in any contract with the District, or shall be financially interested, directly or indirectly, in the sale to the District of any land, materials, supplies, or service, except on behalf of the District as an officer or employee. Any willful violation of this section shall constitute malfeasance in office, and any officer or employee guilty thereof shall be

Page 6 of 8 Initials of Bidder: _______ subject to disciplinary action under applicable laws, statutes and codes of the State of Texas. Any violation of this section, with the knowledge, expressed or implied of the person or corporation contracting with the District shall render the contract involved voidable by the Montgomery Central Appraisal District Board of Directors.

3.0 SCOPE OF WORK:

The District intends to implement a tested and proven exemption audit solution that integrates effectively with existing systems, supports exemption enforcement, and offers long-term value. Vendor may not subcontract or outsource any portion of this solicitation except and unless agreed to in writing by the parties.

3.1 Functional Requirements:

A. Data Mining and Audit – The proposed solution must provide an audit of the District’s current residential exemptions roll using data mining and verification techniques to identify: (1) duplicate exemptions within Montgomery County and the State of Texas, (2) deceased property owners with active exemptions, (3) homestead exemptions claimed by owners who no longer occupy the property as their primary residence, and (4) other ineligible exemptions. Audit analysis must incorporate national databases and other reliable data sources, including but not limited to death records, probate records, driver’s license and vehicle registration databases, voter registrations, property ownership and occupancy records, marriage licenses, jury lists and other public records.

B. Service Level Options – Vendor must propose and outline at least two levels of service out of the three options identified below:

i. Option 1. Basic Review Services: Vendor provides data evaluations, scoring and reporting, and produces a report of the results listing accounts flagged for exemption concerns.

ii. Option 2. Intermediate Review Services: Vendor offers support tools and partial services to District staff and delivers a report of exemption issues in a categorized list, verification of new applications, and identification of unexempted properties eligible for exemption.

iii. Option 3. Full-Service Review: Vendor conducts all data analysis, verification, and taxpayer correspondence, including preparation of documents suitable for Appraisal Review Board (ARB) hearings, drafting of written opinions with supporting documentation, and, if deemed necessary by the District, presentation of live testimony in ARB hearings and other legal proceedings.

C. Property Owner Correspondence – The proposed solution must describe the methods and extent of efforts to contact property owners when necessary. All communications must comply with the Texas Property Tax Code, and examples of past correspondence protocols and sample letters should be included in the proposal.

D. Deliverables and Documentation – The proposed solution must clearly outline: (1) how flagged accounts will be reported, (2) methods used for verification and evidence collection

(3) formats for deliverables, such as spreadsheets, PDFs, or account packages, and (4) a timeline for initial results, preferably within 30 days from receipt of District data.

E. Support and Integration – The proposed solution must describe: (1) long-term support capabilities, (2) included software or tools, (3) potential for integration of the proposed solution with District’s appraisal and exemption systems, and (4) flexibility for adapting to changing statutory requirements.

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F. Reporting and Meetings – The proposed solution must accommodate meetings between Vendor and a District representative to: (1) coordinate project timelines and deliverables,

(2) discuss status updates and progress reports, and (3) adjust reporting formats as needed.

G. Training and Knowledge Transfer – The proposal must include details for vendor-provided training on: (1) research and analysis tools, (2) utilization of vendor reports and scoring system to achieve District goals, and (3) best practices for reviewing exemptions internally.

3.2 Pricing Structure:

Prices quoted must be inclusive of all costs necessary to complete the Scope of Work.

3.3 Quality Assurance:

Vendor and its employees and agents must maintain a high level of quality, professionalism and workmanship.

4.0 PERIOD OF CONTRACT:

The initial contract term will be two (2) fiscal years (or portions thereof), ending on December 31 of the second year. The contract may be terminated for cause by the District by giving thirty (30) days written notice of the intent to terminate.

5.0 PROPOSAL FORMAT AND SUBMISSION REQUIREMENTS:

Proposals must be submitted in the format outlined below. Incomplete proposals may not be considered.

Proposal Sections:

5.1 Cover Letter – Vendor information, including the vendor’s full legal name, contact data, and a summary of the proposal.

5.2 Company Background – Overview of your company’s history, services offered, and relevant experience, including sample reports, analysis or case studies from other projects.

5.3 Technical Approach – Description of vendor’s approach to fulfilling the scope of work, including methodology and technology utilized.

5.4 Project Timeline – Estimates deliver timelines.

5.5 Pricing – Presentation of a detailed pricing structure.

5.6 References – At least five references from clients with similar requirements, of which three must be Texas-based businesses or projects.

5.7 Compliance Statements – Confirmation of your understanding and compliance with all terms and conditions outlined in this RFP.

An authorized representative of the bidder MUST sign the proposal. The contract will be binding only after it has been approved by the District’s Board of Directors, signed by the Chief Appraiser and a purchase order authorizing the product and services has been issued.

6.0 CONTRACTOR QUALIFICATIONS:

To qualify for bidding on this project, bidder must have been in business at least five (5) years and have prior experience with projects substantially similar to the Scope of Work described herein. Bidder must provide references for similar jobs as required in the solicitation.

All bids must include a list of any “blackout days” for the expected term of this contract and the expected delivery time in workdays per task. “Blackout days” are defined as days reserved for work other than the work required by this solicitation.

The District may utilize a Dun and Bradstreet analysis in reviewing bidder’s history and qualifications.

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7.0 POINT OF CONTACT

All questions regarding this RFP must be submitted in writing to Adam Edmundson via email (aedmundson@mcad-tx.org) no later than November 17, 2025. Responses will be provided by November 24, 2025.