ESBD_492855_1772210791598_RFP 301-26-03431 IDCAP Solictation - Part A.pdf

STATE OF TEXAS

OFFICE OF THE GOVERNOR

FINANCIAL SERVICES DIVISION

for

INDIRECT COST ALLOCATION PLAN SERVICES FOR THE OFFICE OF

THE GOVERNOR (OOG) FINANCIAL SERVICES DIVISION

Solicitation No. 301-26-03431

NIGP CLASS ITEMS

946-11 946-49 946-77 961-21 962-58

Response Date and Due Time: March 23, 2026 no later than 2:00 pm CT

Point of Contact Michael White

CTCD/CTCM No. 1900023968 Procurement and Contract Specialist

Office of the Governor of Texas Financial Services Division

P.O. Box 12428 Austin, TX 78711-2878 Phone: 512-463-0394

Email: Michael.white@gov.texas.gov

PART A: SPECIFIC TERMS AND CONDITIONS

Solicitation No. 301-26-03431- Part A

1. STRUCTURE OF SOLICITATION

This Solicitation is composed of three parts:

Part A: Specific Terms and Conditions, including exhibits and other attachments and appendices, if any;

Part B: Standard Terms and Conditions; and Part C: Provisions Governing the Solicitation Process.

Resolution of Conflicting Provisions. In the event an instruction or term in Part A conflicts with an instruction or term in Part B or Part C, the instruction or term in Part A prevails. Any addenda or amendment to Part A, Part B, or Part C control over their original versions, respectively.

2. GLOSSARY OF TERMS

This Glossary assigns definitions to the listed terms. The definition given to a term listed in this Glossary applies whenever the term appears in any Part of or Exhibit to this Solicitation and in any response to this Solicitation.

Performance Period

Each period of the Contract Term during which the Contractor will perform the required services under the Contract. Each Performance Period will be separately budgeted by the OOG, subject to available appropriations.

3. GENERAL INFORMATION

Purpose of Procurement.

The OOG seeks proposals from qualified services providers to prepare an indirect cost allocation plan for use in the Fiscal Year ending August 31, 2027, in accordance with the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) (Uniform Guidance), based upon actual expenditures and data incurred during the fiscal year end of August 31, 2025. Any Contract awarded as the result of this Solicitation may be renewed or extended to obtain the services of the Contractor for the preparation of indirect cost allocation plans for use in subsequent Fiscal Years, as described in more detail below.

The OOG is required to submit an annual indirect cost allocation plan for approval by the U.S.

Department of Health and Human Services, Division of Cost Allocation. The Uniform Guidance establishes procedures for recovering both direct and indirect costs of programs and requires that a state agency wishing to claim indirect costs as charges against federal grants prepare an annual indirect cost proposal and submit the proposal for approval to a designated cognizant federal department for review and approval. The OOG’s cognizant federal department is the U.S.

Department of Health and Human Services (“USDHHS”). After preparation and submission of the indirect cost allocation plan(s), the Contractor will be required to continue to work to obtain final federal approval, implement the plan(s), and provide all necessary assistance to the OOG regarding any required follow-up throughout the remainder of the Contract.

Procurement Authority

Section 2106.003 of the Texas Government Code requires each state agency that receives federal funds to prepare an annual indirect cost recovery allocation plan, which must include proposals to recover the indirect costs of the agency's programs, including the portion of statewide support service costs allocated to the agency under the statewide cost allocation plan prepared by the OOG pursuant to Section 2106.002 of the Texas Government Code. The OOG has been delegated authority to contract for these services pursuant to Section 2155.091(b)(6) of the Texas Government Code and 34 T.A.C. § 20.82.

Term of Contract

3.3.1. Primary Term

The primary term of any Contract awarded as the result of this Solicitation shall commence on the date of last signature on the Contract (“Effective Date”), and shall terminate on August 31, 2027, unless terminated earlier pursuant to the terms of the Contract. The primary term plus any renewal terms or extensions, if any, shall constitute the “Contract Term.”

3.3.2. Renewal Term

The OOG shall have the right to renew the term of the Contract for up to three (3) additional twelve (12) month periods through August 31, 2030 with consideration to Contractor performance. The OOG shall provide the Contractor with written notice of its intention to renew the term of the Contract in writing at least thirty days prior to the Contract termination date.

3.3.3. Optional Extension

Upon the exhaustion of any and all renewal terms, the OOG may, in its sole discretion, extend the term of the Contract in any increment of months for up to six months if the OOG determines that an extension is necessary to facilitate a transition to a new vendor.

The OOG shall provide the Contractor with written notice of its intention to extend the term of the Contract in writing at least thirty days prior to the Contract termination date.

Any compensation to the Contractor for this extension period would be based upon negotiated rates between the OOG and the Contractor and/or the reimbursement for actual expenses.

Office of the Governor’s Point of Contact Information. The mailing address of the

OOG for all notices is:

Warren Collier Director/CFO, Financial Services Office of the Governor of Texas Financial Services Division P.O. Box 12428 Austin, Texas 78711-2878 Phone: 512-463-6348 Email: warren.collier@gov.texas.gov

Captions and Headings

The captions to the sections of this Solicitation are for convenience only and shall not affect the construction or interpretation of the Solicitation’s substantive terms.

4. STATEMENT OF WORK – SERVICE REQUIREMENTS

Deliverables

Deliverables shall include, but are not limited to, the requirements contained in this Solicitation. Deliverables set forth that contain the words “must” or “shall” are mandatory and must be provided as specified with no alteration, modification, or exception. Deliverables set forth that contain the words “may” or “can” allow Respondents to offer alternatives to the manner in which the Deliverables are provided.

4.1.1. Objectives

The requested Deliverables require the Contractor to prepare a cost allocation plan and indirect cost rate proposal based upon actual expenditures and data incurred during the fiscal year end of August 31, 2025 that will be used to establish final indirect cost rates that may be used to recover indirect costs on federally-funded programs for the fiscal year ended August 31, 2027. Services shall include the successful negotiation and approval of the indirect cost allocation plan and the indirect cost rates with the OOG’s cognizant federal agency, USDHHS. Should the any Contract awarded be renewed or extended, the Contractor will be required to provide the requested services and corresponding deliverables for future Fiscal Year(s).

4.1.2. Required Deliverables

With full understanding of the project and regulations presented in 2 CFR Part 200, project deliverables will include draft indirect cost allocation plan(s) that includes cost allocation plan(s), indirect cost rates, and other Uniform Guidance required documentation. In addition, the Contractor will be present for meeting(s) with the OOG to discuss and finalize any indirect cost allocation plan(s) prior to submission. Final indirect cost allocation plan(s) incorporating any revisions requested by the OOG will be provided to the OOG and submitted to the USDHHS. The Contractor will also be required to negotiate and work towards the approval of any indirect cost allocation plan(s).

4.1.3. Performance Tracking

The OOG will monitor the performance and progress of the indirect cost allocation plan(s) throughout the Term of the Contract, including any renewals or extensions.

Program milestones to track the Contractor’s performance will be created based on the timeline submitted with the Contractor’s proposal, subject to revision by the parties during final contract negotiation.

The Contractor must maintain frequent and regular communication with the OOG throughout the Term of the Contract to ensure that all required program milestones are timely met.

Contractor shall notify OOG, in writing, if there are any concerns with the data sources or any other issues associated with the preparation of the indirect cost allocation plan(s) and shall recommend solutions prior to the due date for each deliverable.

4.1.4. Schedule for Performance of Services

Time is of the essence in the rendering of services required by this Contract. The OOG may require Contractor to perform tasks or services according to a date sensitive schedule. Contractor will not be compensated for any time expended or expense incurred before the effective date of this Contract.

4.1.5. Timeline for Deliverables Provided

Submission of the indirect cost allocation plan is generally required within six (6) months prior to the beginning of each Fiscal Year to which each applies; currently, the OOG has requested a 90-day extension from the original due date of February 28, 2026 to May 28, 2026 for the indirect cost allocation plan for use in Fiscal Year 2027. The following draft report deadlines are anticipated for the indirect cost allocation plan for use in Fiscal Year 2027; report deadlines in subsequent years should any contract be extended are expected to be similar:

• A draft indirect cost allocation plan must be submitted to the OOG no later than

3:00pm May 11, 2026 for approval.

• The Contractor will submit the indirect cost allocation plan, approved by the OOG, to USDHHS by May 29, 2026.

4.1.6. Contractor’s Relationship to the OOG

The OOG is a part of the executive branch of Texas state government, and does not relinquish control over decisions related to the Deliverables specified in Part A of this Solicitation to the Contractor. Rather, the Contractor shall provide all Deliverables under the Contract with the OOG’s prior approval.

Contracted Account Staff

The Contractor shall dedicate qualified professional staff who have demonstrated experience in providing the Deliverables necessary for the completion of Contract requirements. The Contractor must dedicate an Account Manager to oversee all activities of the Contract including, but not limited to, the management, accounting for the entire Contract, billing and reporting. The Account Manager will be the OOG’s primary day-to-day contact. The OOG reserves the right to approve and accept key professional staff, including the Account Manager. The Contractor must notify the OOG in writing if key professional staff cannot continue on the account, and the OOG must approve replacement personnel. The replacement personnel must have skills, experience and expertise that is comparable to that of the persons they replace, and will be provided at no additional cost to the contract. The OOG reserves the right to request the Contractor to replace the staff provided in the event of unsatisfactory performance.

The personnel proposed by Respondent and subcontractor, if applicable, may be required to undergo periodic standard Criminal History Background Checks during the Contract Term.

End of Contract Transition

Upon any termination of the Contract, beginning at a time determined solely by the OOG, the OOG may require the Contractor to provide all necessary work products to ensure account transition, account familiarization, and transfer of work to any new vendor of the OOG. The OOG may, in its sole discretion, maintain concurrent contracts for a limited period in order to facilitate this transition.

5. FINANCIAL TERMS AND CONDITIONS

Maximum Contract Amount

The OOG’s maximum liability to the Contractor, in consideration for the full, satisfactory and timely performance of all its duties, responsibilities and obligations as set forth in the Contract or arising out of any performance as the result of this Solicitation, shall not exceed (amount to be determined at time of Contract award) (“Maximum Contract Amount”) for the initial Performance Period beginning Effective Date. The Contractor will not be compensated for Deliverables provided before the Effective Date of the Contract. The Contractor shall have no entitlement to payment of the Maximum Contract Amount.

5.2 Compensation to Contractor

The Contractor is expected to provide all Deliverables for the fees as set forth in the Contractor’s Compensation Schedule (Exhibit E). The amount(s) stated in the Compensation Schedule shall be fixed fee amount(s) to be charged by the Contractor to fully-compensate the Contractor, and supporting subcontractors if applicable, for the costs of all of the Contractor’s services and administrative expenses required to complete work under this Contract.

The Contractor understands and agrees that the amounts set forth the Contractor’s Compensation Schedule shall cover the costs of all Deliverables including, but not limited to: all statewide cost allocation plan services; required reports; labor; project and contract management; accounting and billing services; administrative support; legal services and fees; facilities; equipment; and all incidental and normal business operating expenses, such as local and long distance phone calls (landline and mobile), facsimile, website development and hosting, publication costs, software or other licensing; travel, per diem, postage, local courier service, internal copying, supplies, materials, parking and other ongoing services performed or required for routine performance.

Restrictions on Reimbursement of Expenses

Because all costs of services and expenses are expected to be included within the Contractor’s Compensation Schedule, the OOG will generally not reimburse Contractor for any expenses incurred in the performance of services. However, the OOG may, in its sole discretion, authorize the reimbursement of certain unanticipated expenses in accordance with the following:

5.2.1. Pre-Approval Required. Contractor may only be reimbursed for actual expenses that are pre-approved in writing by the OOG. Contractor must provide the OOG with a written justification to substantiate how any expenses proposed for pre-approval are reasonable and necessary for the performance of required services under the Contract, and could not have been reasonably anticipated as part of the fees set forth in the Contractor’s Compensation Schedule.

5.2.2. No Mark-up. Contractor shall not be reimbursed for any mark-up or other overhead costs.

5.2.3. Expenses prohibited by Texas law. The OOG will not reimburse Contractor for any cost of expenses incurred by the Contractor relating to an expense for which agencies of the State of Texas are prohibited by law or by the policies and procedures of the OOG or the Comptroller from paying.

6. TIMELINE FOR SOLICITATION

Calendar of Events

Time is of the essence in the providing the Deliverables required by the Contract. The OOG may require the Contractor to provide Deliverables according to a date-sensitive schedule.

The OOG reserves the right to revise any of the time periods listed below and will post all changes by published Addendum on the ESBD at http://www.txsmartbuy.com/esbd.

Event Date

Solicitation Posting Date February 27, 2026 Deadline for Respondent Submission of Solicitation Questions

March 1, 2026

The OOG’s Response to Questions Posted on the ESBD March 3, 2026 Deadline for Respondent HSP Courtesy Review Request March 4, 2026 OOG Provides HSP Courtesy Review March 6, 2026 Deadline for Respondent Submission of Response March 23, 2026 Anticipated Start Date March 27, 2026

7. EVALUATION SCORING CRITERIA

Weighted Evaluation Scoring Criteria. The OOG will evaluate Responses using the following weighted scoring criteria, subject to overall best value considerations as authorized by law. The OOG intends to use the same weighted scoring criteria to evaluate any clarifications, negotiations, and/or Best and Final Offers, subject to overall best value considerations as authorized by law. The evaluation process and criteria are further described in-depth in Part C of the Solicitation.

Criteria Weight

Company Information/Financial Responsibility 10% Experience/Qualifications/References 30% Proposed Work Plan 30% Compensation and Fees 30%

100%

Detailed Evaluation Criteria. The OOG will use the following standards:

7.2.1. Company Information and Financial Responsibility. The OOG will review company information and Financial Responsibility, as provided in Tab 3 of the Response, including a review of the Respondent’s demonstrated financial capacity to provide the Deliverables described in Part A of this Solicitation.

http://www.txsmartbuy.com/esbd

7.2.2. Experience, Qualifications and References. The OOG will review the qualifications, experience and resources of each Respondent, and each Respondent’s past experience in servicing accounts of similar type and scope as required by the OOG, as provided in Tabs 4, 5, and 6 of the Response. This evaluation may include, but is not limited to, demonstrated success in providing similar Deliverables, provided work samples, proposed account personnel, past performance, and each Respondent’s resources and capability to provide the Deliverables.

7.2.3. Proposed Work Plan. Responses will be evaluated based on their Proposed Work Plan. This evaluation may include, but is not limited to, the quality of the Proposed Work Plan, incorporation of non-negotiable elements, the effectiveness of the Proposed Work Plan in meeting the specified objectives outlined in Section 4 of Part A of this Solicitation and the time feasibility of the Proposed Work Plan.

7.2.4. Compensation and Fees. Responses will be evaluated based on their proposed Compensation fees. This evaluation will include consideration of all work and costs to be included in the Compensation schedule. The OOG will more favorably consider those proposals that offer best value to the State of Texas.

8. HUB SUBCONTRACTING

In addition to the information pertaining to HUBs in Part C of this Solicitation, the OOG has identified potential subcontracting opportunities under this Solicitation:

CLASS 946: FINANCIAL SERVICES

Item Number and Commodity Descriptions:

946-11 – Accounting Services (Not Otherwise Classified) 946-49 – Financial Services (Not Otherwise Classified) 946-77 – Statistical Services

CLASS 961: MISCELLANEOUS SERVICES, NO. 1 (NOT OTHERWISE

CLASSIFIED)

Item Number and Commodity Descriptions:

961-21 – Cost Estimating

CLASS 962: MISCELLANEOUS SERVICES, NO. 2 (NOT OTHERWISE

CLASSIFIED)

962-58 – Professional Services (Not Otherwise Classified)