ESBD_493477_1772662544700_RFP_Audit Services_ESBD_Final Draft 030426 posted with new Calendar of Events.pdf

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Texas Department of Housing and Community Affairs

Request for Proposals 332-RFP26-1002 for

Audit Services By Texas Department of Housing and Community Affairs

Anticipated Schedule of Events Date RFP Issuance: March 03, 2026 Written Questions Due: March 09, 2026 Response to Questions Post: March 12, 2026 Proposals Due: April 02 2026 Contract Execution: April 24, 2026

Commencement of Work: May 1, 2026

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TABLE OF CONTENTS

PART I GENERAL INFORMATION

1.1 Introduction

1.2 Background

PART II SCOPE OF WORK

2.1 Service Description

2.2 Term of Contract

2.3 Limitation of Authority

PART III GENERAL INFORMATION

3.1 Authority

3.2 TDHCA Rights

3.3 Respondent Obligations

3.4 Successful Respondent Obligations

3.5 Schedule of Events

3.6 Issuing Office

3.7 Submission of Offers

3.8 Submission of Questions

3.9 Confidential Information; Nondisclosure; Open Records

3.10 Media Releases

3.11 Non-exclusivity

3.12 Incorporation of Exhibits

3.13 Transition of Services

3.14 Payment and Invoices

PART IV PROPOSAL FORMAT

4.1 Introduction

4.2 General Organization of Proposal Contents

PART V PROPOSAL EVALUATION AND SELECTION

5.1 Evaluation Process

5.2 Selection Criteria

5.3 Respondent’s Past Performance

5.4 Protest Procedures

EXHIBIT B EXECUTION OF PROPOSAL

EXHIBIT D NONDISCLOSURE AGREEMENT

EXHIBIT E CONFLICT OF INTEREST STATEMENT

EXHIBIT F CERTIFICATION REGARDING PUBLIC NATURE OF THE PROPOSAL

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EXHIBIT G VENDOR REFERENCE QUESTIONNAIRE

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PART I

GENERAL INFORMATION

1.1 Introduction

The Texas Department of Housing and Community Affairs ("TDHCA") was created pursuant to Chapter 762, Acts of the Seventy-second Legislature of the State of Texas, Regular Session, 1991, as designated in Chapter 2306, Government Code in part to increase the supply of affordable housing for low- and moderate-income Texans. The Bond Finance Division of TDHCA issues tax-exempt and taxable bonds as well as other alternative types of funding to finance single-family housing.

TDHCA is governed by a six-member Board appointed by the Governor with the advice and consent of the Senate serving staggered six-year terms with the terms of three directors expiring on January 31 of each odd-numbered year. Members may be re-appointed.

As a result of this RFP, the Department anticipates executing a contract with the Successful Respondent to perform the services and the contract, if any, resulting from it (the “Contract”). The time and number of Contracts resulting from this RFP and all procedures relating to such Contracts are within the discretion of the Department. Successful Respondent, as an independent contractor, shall provide services under the Contract, at its facilities and with its own personnel.

1.2 Background

The Texas Department of Housing and Community Affairs is the state's lead agency responsible for affordable housing, community development and community assistance programs, and regulation of the state's manufactured housing industry.

TDHCA currently administers funds more than $2 billion, the majority is derived from mortgage revenue bond financing and refinancing, federal grants and federal tax credits.

All TDHCA divisions regularly interact with other state and federal agencies, the state legislature, housing and community development organizations, community assistance agencies, lending institutions, real estate interests, the media and other public sources.

According to Section §2306.001 of the Department’s enabling legislation, the purposes of the Department are to:

1. assist local governments in:

a. providing essential public services for their residents; and

b. overcoming financial, social, and environmental problems;

2. provide for the housing needs of individuals and families of low, very low, and extremely low income and families of moderate income;

3. contribute to the preservation, development, and redevelopment of neighborhoods and communities, including cooperation in the preservation of government-assisted housing occupied by individuals and families of very low and extremely low income;

4. assist the governor and the legislature in coordinating federal and state programs affecting local government;

5. inform state officials and the public of the needs of local government;

6. serve as the lead agency for:

a. addressing at the state level the problem of homelessness in this state;

b. coordinating interagency efforts to address homelessness; and

c. addressing at the state level and coordinating interagency efforts to address any problem associated with homelessness, including hunger; and

7. serve as a source of information to the public regarding all affordable housing resources and community support services in the state.

In accordance with Texas Government Code, §2306.074, “The state auditor or a certified public accountant shall audit the department’s books and accounts each fiscal year and file a copy of the audit with the governor, the comptroller and the legislature not later than the 30th day after the submission date for the annual financial report as required by the General Appropriations Act.”

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Pursuant to Texas Government Code, §2306.204 and §2306.205, TDHCA is required to have an audit of unencumbered fund balances available for transfer to the Housing Trust Fund for the year end by an independent auditor and submit the results of the audit to its Governing Board not later than December 31 following the end of each fiscal year

PART II

SCOPE OF WORK

2.1 Service Description

The Successful Respondent shall provide services as described in this Section and in compliance with all requirements of this RFP and the Contract. Any deviations from these specific requirements must be approved by the Department and the Successful Respondent in writing that specifically refers to the requirement and the reason for approval of the deviation.

The Department will consider approving written requests for such deviations if the Department determines, in its sole discretion, that such deviations are consistent with applicable law and in the best interests of the Department. Further, any decrease in the level of services must be accompanied by a decrease in approved fees. All services must be provided at a highly competitive fee level, i.e., at a fee level that will provide the best value to the Department when all evaluation criteria are considered. The Department reserves the right, in its sole discretion, to enter into preliminary negotiations with more than one of the top Respondents. The Department may choose to award this solicitation to more than one respondent.

The Successful Respondent must be qualified and able to provide all of the services required by the Department.

2.1.1 Minimum Requirements

Required experience, knowledge, skills, and abilities are as follows:

1. Relevant national experience and individual experience for personnel who will be actively engaged in the audit related to housing finance agencies, taxable and tax exempt bond issuances, governmental accounting and auditing, and arbitrage regulations.

2. Respondent is a nationally recognized firm and is properly licensed for public practice in the State of Texas as a Certified Public Accountant.

3. Respondent meets the independence rules, primarily defined by Generally Accepted Government Auditing Standards.

4. Respondent does not have a record of substandard audit work. The Respondent is requested to disclose any positive enforcement actions or other matters which may reflect their professional qualifications.

2.1.2 General Services

Respondents are expected to provide services as required and to assign experienced professionals who are best suited to respond appropriately to requirements.

A. SERVICES

1. Conduct an annual audit of the Department's books and accounts. In accordance with TDHCA’s enabling legislation, Texas Government Code, §2306.074, “The state auditor or a certified public accountant shall audit the department’s books and accounts each fiscal year and file a copy of the audit with the governor, the comptroller and the legislature not later than the 30th day after the submission date for the annual financial report as required by the General Appropriations Act.”

(a.) The audit must be conducted by an independent auditor as defined by and in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States.

(b.) The audit must be of the Department's Basic Financial Statements and supporting schedules. See Attachment 3 for a copy of the Department's financials for the year ended August 31, 2025

(c.) The audit must be unlimited in scope and cover all operations and activities of TDHCA in such a way that the audit report addresses TDHCA’s financial statements taken as a whole

(d.) The auditor must:

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1. Determine whether the financial statements of TDHCA present fairly, in all material respects, its financial position and the results of its operations and cash flows of its proprietary funds in accordance with generally accepted accounting principles.

2. Determine whether the bond supporting schedules present fairly, in all material respects, the information set forth therein.

3. Review supplemental information not part of the Basic Financial Statements but required by GASB and apply limited procedures per generally accepted auditing standards.

Supplemental information includes.

• Management’s Discussion and Analysis

• Schedule of Changes in Department’s Net Pension / OPEB Liability

• Schedule of Employer Contributions

• Notes to the Required Supplemental

4. Test compliance with certain provisions of laws, including the Public Funds Investment Act (Chapter 2256, Texas Government Code), regulations, contracts and grants, as part of obtaining reasonable assurance about whether the Department's financials are free of material misstatement, and report any instances of noncompliance that are required to be reported under Government Auditing Standards.

5. Consider the Department's internal control over financial reporting and internal control structure to determine auditing procedures for the purpose of expressing an opinion on the financial statements and, as a result of consideration, report any material weaknesses in internal control that may be noted.

6. Report other matters, not considered material weaknesses, involving the internal control over financial reporting and internal control structure, to management.

2. Conduct the annual audit of the Department's Revenue Bond Program. The trust indentures of TDHCA’s outstanding bonds require that a nationally recognized certified independent auditor conduct the audit. See Attachment 4 for a copy of the Department's Revenue Bond Program statements for the year ended August 31, 2025

(a.) The audit must be conducted by an independent auditor as defined by and in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States

(b.) The audit must be unlimited in scope and cover all operations and activities of Department's Revenue Bond Program in such a way that the audit report addresses Department's Revenue Bond Program financial statements taken as a whole

(c.) The auditor must:

1. Determine whether the basic financial statements of the Department's Revenue Bond

Program are presented fairly, in all material respects, its financial position and the results of its operations and its cash flows in accordance with generally accepted accounting principles.

2. Determine whether the supporting bond schedules1 present fairly, in all material respects, the information set forth therein.

3. Review supplemental information not part of the Basic Financial Statements but required by GASB or Bond Trust Indentures and apply limited procedures per generally accepted auditing standards. Supplemental information includes.

• Management’s Discussion and Analysis

• Statement of Net Position Information by Individual Activity

• Statement of Revenues, Expenses, and Changes in Fund Net Position by Individual

Activity

3. Conduct an audit of unencumbered fund balances available for transfer to the Department's Housing Trust

Fund pursuant to Texas Government Code, §2306.204 and §2306.205. See Attachment 5 for a copy of the Department's audit of unencumbered fund balances available for transfer to the Housing Trust Fund for the year ended August 31, 2025

4. Express an opinion on whether Financial Data Schedule is fairly stated in all material aspects in relation to

332-RFP26-1002 Page 7 of 29 the 2025 basic financial statements as a whole, is prepared in accordance with America Institute of Certified Public Accountants’ Statement on Auditing Standards.

5. Agreed -upon procedures on the electronic submission of the Financial Data Schedule as prescribed by the U.S. Department of Housing and Urban Development’s Real Estate Assessment Center’s (REAC)Uniform Financial Reporting Standards for Public Housing Authorities

B. REPORTING

The following reports and opinions should be issued.

In accordance with Texas Comptroller of Public Accounts reporting requirements, the following reports are due December 15, 2026. If due date falls on a weekend, report should be completed the preceding business day.

1. Report and opinion on the audit of the Basic Financial Statements

2. Report on Internal Controls over Financial Reporting and Compliance

3. Report and opinion on the Department’s Compliance with the Public Funds Investment Act (“PFIA”)

4. Report and opinion on the audit of the Revenue Bond Program Financial Statements

5. Report and opinion on the audit of the Computation of Unencumbered Fund Balances

In accordance with the HUD Real Estate Assessment Center (REAC) reporting requirements, the following reports are due by no later than September 15, 2026.

6. Report an opinion on the Department’s Financial Data Schedule

7. Report on the submission of the Department’s Financial Data Schedule

C. ADDITIONAL SERVICES

1. At the conclusion of each year-end audit, the auditor is required to submit audited financial statements for the period ended to the Audit Committee and the full Governing Board of TDHCA

2. Cooperate with the Office of the State Auditor in the preparation of audit reports required by law

3. Bond indenture covenants require that the independent auditor’s report, as part of the Revenue Bond

Program audited financial statements, be included in the Official Statement in connection with the offering of revenue bonds by the Department.

4. An audit engagement entrance conference is required with the Department’s Executive Director and Director of Administration. An exit conference is required with the Department’s Executive Director, Director of Administration and Director of Internal Audit. It is also required that the auditor present the audit reports and the management letter to the Audit and Finance Committee and the full membership of the Governing Board

5. In accordance with Texas Government Code, Section 321.020, State Auditor’s Office representatives may attend key meetings (entrance/exit conferences, status and internal control meetings) related to any audit engagement with the Department.

6. While the audit working papers traditionally belong to the auditor, work papers must be retained for at least three years and be available for examination by the State Auditor’s Office, who is responsible for expressing an opinion regarding the fairness of presentation of the State’s Annual Comprehensive Financial Report. It will be necessary for the outside auditor to confer with the State Auditor’s Office in relation to the statewide audit. It will also be necessary for the outside auditor to comply with the Comptroller of Public Accounts Reporting Requirements for Annual Financial Reports of State Agencies.

D. TDHCA Assistance

1. TDHCA staff will be available to prepare schedules, produce supporting documents, and provide other assistance as needed.

2.2 Term of Contract

If a Contract is awarded, the initial term of the Contract is expected to begin May 1, 2026, or as soon thereafter as practical, and to terminate April 30, 2027. In accordance with the terms of the Contract, the Department has the option, in its sole discretion, to renew the contract for three (3) additional one (1) year periods.

A Contract awarded under this RFP, if any, shall incorporate this entire RFP. The Department reserves the right, in its sole discretion, to make a contract award without negotiation of these provisions. In the event the Department requires negotiations with Respondents, any modifications or clarifications agreed to with Successful Respondent during contract negotiations shall also be incorporated into the final, executed Contract. Each Respondent must review these terms and

332-RFP26-1002 Page 8 of 29 conditions in Exhibit A and otherwise in this RFP and must address any concerns or issues in its transmittal letter. Terms and conditions not specifically objected to in the transmittal letter will be deemed to be accepted by Respondent. The Department has final approval of any contract awarded as a result of this RFP.

2.3 Limitation of Authority

Successful Respondent shall have no authority to act for or on behalf of the Department, or the State of Texas except as expressly provided for in the Contract; no other authority, power, use, or joint enterprise is granted or implied. Successful Respondent may not incur any debts, obligations, expenses, or liabilities of any kind on behalf of the Department or State of Texas.

PART III

GENERAL INFORMATION

3.1 Authority

This RFP is issued pursuant to Chapter 2155, Section 2155.001; Section 403.011; and Chapter 2156, Section 2156.121, of the Texas Government Code; and Chapter 54, Subchapter F, Sections 54.602, 54.618, 54.637, 54.640 and 54.642 and Subchapter H, Sections 54.752. 54.767, 54.770, 54.777 and 54.778, of the Texas Education Code.

3.2 TDHCA Rights

In the best interest of the Department and the State, the Department, in its sole discretion, may amend or modify any provisions of this RFP, or withdraw this RFP at any time prior to award of a Contract. The Department reserves the right, in its sole discretion, to reject any or all submitted Proposals or to select one or more qualified Respondents to this RFP without discussion of Proposals with the respective Respondents. The decision of the Department, or its designee with regard to the above, shall be administratively final. The Department, in its sole discretion, may waive administrative deficiencies and/or minor technicalities in Proposals received. All Proposals shall become a part of the Department’s official procurement files and may be available for public inspection upon request after the Procurement process is completed.

3.3 Respondent Obligations

Respondents to this RFP are responsible for any expense related to the preparation and submission of a Proposal. The Department shall not pay for any cost that is incurred by Successful Respondent prior to the effective date of the Contract.

Qualified firms with the requisite experience are invited to submit Proposals in accordance with this RFP. Proposals must address all requirements and/or specifications.

3.4 Successful Respondent Obligations

The Department shall look solely to Successful Respondent for performance of the Contract. Successful Respondent shall provide the requested services under the direction of the Department. Successful Respondent shall be the sole point of Contract responsibility. Successful Respondent shall be liable, both individually and severally, for the performance of all obligations under the awarded Contract and shall not be relieved of the non-performance of any subcontractor.

3.5 Schedule of Events

The Department anticipates that the selection of Successful Respondent and execution of the Contract, if any, will proceed according to the following approximate schedule:

March 03, 2026 - Issuance of RFP (after 10:00 a.m. CT)

March 09, 2026 - Deadline for Submission of Questions (2:00 p.m. CT)

March 12, 2026 - Electronic Posting of Official Responses to Questions (or as soon thereafter as practical)

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April 02, 2026 - Deadline for Submission of Proposals (2:00 p.m. CT) (Late Proposals will not be considered)

April 24, 2026 - Contract Execution (or as soon thereafter as practical)

May 1, 2026 - Commencement of Work (or as soon thereafter as practical)

The times stated in this document refer to Central Time (“CT”), Austin, Texas, where appropriate. The Department’s regular office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday, except national and official State of Texas holidays. All deadlines are subject to change at the Department’s sole discretion.

Notices of changes to items directly impacting the original RFP or proposal process will be posted on the ESBD at www.txsmartbuy.gov/esbd and on Bonfire at https://tdhca-texas-gov.bonfirehub.com/portal/?tab=openOpportunities , Any amendment to this solicitation will be posted as an addendum on the ESBD and Bonfire. It is the responsibility of interested parties to periodically check the ESBD and Bonfire for updates to the procurement prior to submitting a Proposal.

Respondent’s failure to periodically check the ESBD and Bonfire for updates will in no way release Successful Respondent from compliance with any requirements in the “addenda or additional information,” even if such compliance results in additional costs to meet the requirements.

3.6 Issuing Office

The Department, through its purchasing section, shall act as and be referred to as the “Issuing Office” and shall be the sole point of contact for this RFP. The Department is the only office authorized to clarify, modify, amend, alter, or withdraw the specifications, terms, and conditions of this RFP and any Contract awarded because of this RFP. Upon issuance of this RFP, other employees and representatives of the Department shall not answer questions or otherwise discuss the contents of this RFP with any Respondent their representatives. Failure to observe this restriction may result in disqualification of any pending or subsequent Offer. This restriction does not preclude discussions unrelated to this RFP or questions relating to completing the Veteran Heroes United in Business (“VetHUB”) documents required in Section 4.2.M of this RFP.

VetHUB Coordinator Email: Suzanne.Saucedo@tdhca.texas.gov

Assistant VetHUB Coordinator

Email: Cheryl.Mathis@tdhca.texas.gov

3.7 Submission of Offers

TDHCA has an e-Procurement Portal that will accept submission of the electronic response to this solicitation.

Submission Instructions are as follows: Respondent shall upload response content using the TDHCA e-Procurement Portal. The link is found at: https://tdhca-texas-gov.bonfirehub.com/portal/?tab=openOpportunities VENDOR REGISTRATION is required prior to submitting your response. Respondents must register in the e-Procurement Portal.

Registration is free and easy! You can vendor register through the Register button in the top right corner.

Vendor Registration will allow Respondents to submit their responses to this solicitation. When registering, have your Texas Vendor ID number, DUNS, and W-9 form ready. If the Texas ID number is unknown, enter the Federal Employer Identification Number. Respondents can modify their submissions until the Response Due Date in the e-Procurement Portal. Emailed, or faxed Responses will not be considered. Interested Respondents are encouraged to register in advance and submit their intent to bid notification (if requested) on the e-Procurement Portal.

This article is helpful if assistance is needed when registering as a vendor: https://vendorsupport.gobonfire.com/hc/en-us/articles/15646869029783-Vendor-Registration

The TDHCA e-Procurement Portal is compatible with the following browsers: Internet Explorer 11, Microsoft Edge, Google Chrome, or Mozilla Firefox. Browser cookies and JavaScript must be enabled on the browser. Submission by other methods http://www.txsmartbuy.gov/esbd https://tdhca-texas-gov.bonfirehub.com/portal/?tab=openOpportunities mailto:Suzanne.Saucedo@tdhca.texas.gov mailto:Cheryl.Mathis@tdhca.texas.gov https://tdhca-texas-gov.bonfirehub.com/portal/?tab=openOpportunities https://vendorsupport.gobonfire.com/hc/en-us/articles/15646869029783-Vendor-Registration https://vendorsupport.gobonfire.com/hc/en-us/articles/15646869029783-Vendor-Registration

332-RFP26-1002 Page 10 of 29 will not be accepted. Respondents should contact Bonfire at support@gobonfire.com for technical submission questions or visit Bonfire’s help forum at this link: https://bonfirehub.zendesk.com/hc Support through Bonfire or TDHCA is not guaranteed one hour prior to the submission due date. Interested Respondents are encouraged to begin the submission process one week before the bid due date. This allows time to troubleshoot any submission issues.

3.8 Submission of Questions

All questions or requests for clarification of this solicitation must be submitted in writing through the e-procurement portal, use the “Ask Questions” button in the e-procurement portal. Questions will be collected by the due date specified in Section 3.5. Questions must be submitted no later than the date and time listed in Section 3.5. TDHCA will post all questions and answers as an Addendum to the solicitation on the ESBD no later than the date listed in Section III, Subsection

3.5 above. The Respondent is responsible for viewing these questions and answers in TDHCA e-Procurement Portal. The link is found at: https://tdhca-texasgov.bonfirehub.com/portal/?tab=openOpportunities TDHCA is not required to send a notification email when the Addendum is posted.

3.9 Confidential Information; Nondisclosure; Open Records

All information gathered, produced, derived, obtained, analyzed, controlled or accessed by Respondent in connection with a contract resulting from this RFP (“Confidential Information”) shall be and remain Confidential Information and shall not be released or disclosed by Respondent without the prior written consent of the Department. Such consent must specifically identify the Confidential Information allowed to be disclosed by Respondent and the nature of the disclosure allowed.

Respondent must execute and return with its Proposal a Nondisclosure Agreement with the Department, in the form of Exhibit E attached hereto.

Following the award of a Contract, Proposals are subject to release as public information unless the Proposal or specific parts of the Proposal can be shown to be exempt from the Texas Public Information Act. All Respondents are advised to consult with their legal counsel regarding disclosure issues and take the appropriate precautions to safeguard trade secrets or any other proprietary information disclosed in their Proposals. The Department assumes no obligation or responsibility relating to the disclosure or nondisclosure of information submitted by Respondents.

If a Respondent believes that any portion of a Proposal is confidential, then Respondent must so specify. Respondent must stamp in bold red letters the term “CONFIDENTIAL” on that specific part or page of the Proposal that Respondent believes to be confidential. Respondent must submit in writing specific, detailed reasons, including any relevant legal authority, stating why Respondent believes the material to be confidential. Vague and general claims of confidentiality will not be accepted. The Department will be the sole judge of whether a claim is general and/or vague in nature. All Proposals and parts of Proposals that are not marked as confidential will be automatically considered public information after the contract is awarded. A Proposal resulting in an award may be considered public information even though parts are marked confidential.

In the event the Department receives portions of a Proposal marked “CONFIDENTIAL” as specified above, the Department shall forward such request to the Office of the Attorney General of Texas (“Attorney General”) for an opinion on whether such information may be withheld from disclosure under the Texas Public Information Act. The Department will notify Respondent whose Proposal is the subject of the request when the information is forwarded to the Attorney General. The Department assumes no obligation for asserting legal arguments on behalf of Respondent. Respondents are advised that the Department is obligated to comply with the decision of the Attorney General, including any decision calling for the release of information marked “CONFIDENTIAL” by a Respondent.

Copyrighted Proposals are unacceptable and are subject to disqualification as non-responsive.

3.10 Media Releases

The Department does not endorse any vendor, commodity, or service. Media releases pertaining to this RFP, the Contract, if any, or the services to which they relate shall not be made without the prior written consent of the Department. The disclosure of the contents of Proposals prior to the award of the Contract, if any, or any other violation of this section, may result in disqualification.

mailto:support@gobonfire.com https://bonfirehub.zendesk.com/hc https://tdhca-texasgov.bonfirehub.com/portal/?tab=openOpportunities

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3.11 Non-exclusivity

This RFP is not exclusive, and the Department reserves the right to issue additional solicitations regarding the services described in this RFP or similar services at any time.

3.12 Incorporation of Exhibits

Exhibits A, B, C, D, E, F and G are a separate document or attached hereto and incorporated as part of this RFP for all purposes.

3.13 Transition of Services

Upon termination of the Contract for any reason, the contractor shall, in good faith and with reasonable cooperation, aid in the transition to any new arrangement and provider. The Contractor shall deliver to the Department or its’ new contractor all completed, or partially completed, work and any and all documentation or other products and results of these services.

3.14 Payment and Invoices

Contractor’s total compensation under this Contract shall not exceed the pricing set forth in the proposal unless agreed upon by both parties. Contractor shall be required to submit detailed invoices to support payments. The invoice should include the Purchase Order number or the Contract number and a complete description of services provided. Also the vendor should list the dates of services. Contractor’s invoices must be complete with reasonable supporting documentation and submitted within fifteen (15) calendar days after month end for Services provided in the preceding month.

In submitting an invoice to the Department, Contractor certifies to the following: that the invoice has been carefully reviewed for detailed description of the Services performed; that the Services have been performed in compliance with this Contract; that the amount of the invoice and all previous invoices together do not exceed the contractual cap of the Contract or Contractor’s negotiated fees; that the charges and expenses shown on the invoices are reasonable and necessary; and that all appropriate and required supporting documentation is attached. The Department may, in its sole discretion, require additional documentation to support payment and Contractor shall respond to any such requests within five (5) business days of receipt.

Payment shall be made in accordance with Texas Prompt Payment Act, Chapter 2251 of the Texas Government Code. The Department shall not pay any amounts for any purpose to Contractor or any other entity, except as expressly provided for in this Contract. The Department reserves the right to make payments only upon receipt of a correct invoice, including all of the required supporting documentation. The Department also reserves the right to refuse payments for invoices that exceed the rates specified in this Contract or if the Department disputes an invoice in writing for Services that were not provided in a satisfactory manner.

PART IV

PROPOSAL FORMAT

4.1 Introduction

Each original Proposal and copy shall contain a cover sheet with the following: “332-RFP26-1002 Audit Services” and the name and address of Respondent. Proposal pages must be numbered consecutively.

Proposals must be organized as described in Section 4.2. Proposals not organized in this manner may be subject to disqualification. Conciseness and clarity of content are required; vague and general Proposals may be considered non-responsive, which may result in disqualification of such Proposals. Proposals must be complete; failure to provide all required information may result in the disqualification of the Proposal.

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ALL EXHIBITS TO THIS RFP ARE PREPARED EXCLUSIVELY FOR THIS RFP. RESPONDENT’S

SUBMISSION OF OTHER EXHIBITS OR DOCUMENTS, INCLUDING PRIOR RFP EXHIBITS, MAY RESULT

IN DISQUALIFICATION OF THE PROPOSAL.

4.2 General Organization of Proposal Contents

Proposals must be organized as follows:

a) Transmittal Letter;

b) Executive Summary;

c) Table of Contents;

d) Respondent Identifying Information;

e) Proposed Subcontractor(s) Identifying Information;

f) Respondent Qualifications and Experience;

g) Proposed Personnel;

h) Respondent Narrative and Preliminary Work Plan;

i) Proposed Fee;

j) Insurance;

k) Execution of Proposal;

l) VetHUB (Veteran Heroes United in Business)

m) Criminal Conviction Certification;

n) Nondisclosure Agreement;

o) Conflict of Interest Statement;

p) Certification Regarding Public Nature of the Proposal; and

q) Vendor Reference Questionnaire.

A description of the information required for each of the items listed above is set forth below.

4.2.A Transmittal Letter

Respondent must submit a transmittal letter that identifies the entity submitting the Proposal and includes a commitment by that entity to provide the services required by the Department. The transmittal letter must state that the Proposal is valid for ninety (90) days from the deadline for delivery of Proposals to the Department. Any Proposal containing a term of less than ninety (90) days for acceptance from this deadline will be rejected as non-responsive.

The transmittal letter must be signed by a person legally authorized to bind Respondent. Respondent also must indicate in its transmittal letter why it believes it is the most qualified to provide the requisite services and why it believes its proposed services best meet the Department’s objectives and RFP requirements.

The transmittal letter must include a statement of acceptance of the terms and conditions located in Exhibit A to the RFP. If a Respondent takes exception to any of the proposed terms and conditions, Respondent must identify the exception(s) specifically and clearly in the transmittal letter and explain both (1) the reason for the requested change and (2) proposed alternative language. Failure to accept the terms and conditions as set forth in Exhibit A may result in disqualification of the Proposal.

4.2.B Executive Summary

Respondent must provide an executive summary of its Proposal and a representation that the Proposal addresses all of the requirements of this RFP. The executive summary must not exceed three (3) pages and must represent a full and concise summary of the contents of the Proposal. Respondent must identify any services that are provided beyond those specifically requested. If Respondent is providing services that do not meet the specific requirements of this RFP but in the opinion of Respondent are equivalent or superior to those specifically requested, any such differences must be noted in the executive summary. Failure to provide the services specifically required may result in disqualification of the Proposal.

4.2.C Table of Contents

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Each Proposal must be submitted with a table of contents that clearly identifies and denotes by page number each section of the Proposal and the location of all enclosures of the Proposal. The table of contents must follow the RFP’s structure as much as possible.

4.2.D Respondent Identifying Information

Respondent must provide the following identifying information:

• name and address of business entity submitting the proposal;

• names of all principals;

• type of business entity (e.g., corporation, partnership, etc.);

• state of incorporation or organization and principal place of business;

• name and location of Texas offices, other major offices, and other facilities that relate to Respondent’s performance under this RFP;

• name, address, business telephone number, cell phone number, email address, and fax number of Respondent’s principal contact person regarding the Contract;

• Respondent’s Federal Employer Identification Number (“FEIN” or “EIN”) and Texas Tax

Identification/Registration Number, if any;

• all affiliated companies and subsidiaries, or any joint ventures or other affiliations;

• full name and address for each member, partner, and employee of Respondent (and any subcontractors) who will perform services;

• detail if respondent, any predecessor of respondent, or any member of respondent been the subject of any disciplinary action by any regulatory agency or professional organization within the last five (5) years;

• detail of any firm ownership changes which have occurred in the last five (5) years, including changes pending;

• detail whether, within the last five years, respondent, any predecessor of respondent, or any member of respondent has been a party to any litigation directly or indirectly related to the conduct of respondent’s business; and

• indicate whether respondent, any predecessor of respondent, or any member of respondent is currently a party to litigation in process; if so, identify the parties, jurisdiction, case number, and subject matter.

4.2.E Proposed Subcontractor(s) Identifying Information

The Proposal must identify any subcontractors and outline the contractual relationship between Respondent and each proposed subcontractor. The Respondent is solely responsible for any proposed subcontractor’s work performed under any contract resulting from this RFP.

4.2.F Respondent Qualifications and Experience

1. Experience

Respondent must include a detailed overview of Respondent’s experience providing the requisite services in its Proposal. Respondent must demonstrate its knowledge of and experience with activities relevant to the services.

Respondent must provide a detailed profile that describes the following:

(1) the size and scope of all operations, including number of Respondent’s employees and years in business;

(2) the general nature of previous similar work performed by Respondent, particularly work in the last three (3) years;

(3) Respondent’s depth and length of experience with state agencies;

(4) Respondent’s experience in the required services;

(5) for each proposed subcontractor:

a) the size and scope of all operations, including number of employees and years in business;

b) the general nature of previous similar work performed, particularly work in the last three (3) years;

c) depth and length of experience with state agencies; and

332-RFP26-1002 Page 14 of 29

(6) Respondent should also describe any disaster recovery plan in place to maintain business operations;

and

(7) any other information Respondent believes is pertinent to this RFP.

2. Cancellations or Terminations

Respondent must list all contracts or purchase orders that Respondent executed or accepted within the last three

(3) years and which were canceled or terminated prior to completion by any state agency or other entity with which Respondent contracted. For each such contract or purchase order, Respondent must include a detailed explanation for the cancellation or termination and final resolution of the matter as well as the names and telephone numbers of each such agency's or firm’s contact person. If none, specify none.

4.2.G Proposed Personnel

The Proposal must identify all key personnel who are to be part of the proposed team and detail their experience. Respondent must include in the Proposal resumes of all management, supervisory, and key personnel that will be involved in performing the services, and must provide for each person:

• a full name (including full middle name);

• a five (5) year employment history;

• a specific description of relevant experience and skills that person has with the required services, that must include at least three (3) years of experience performing work similar to the required services (limit to one page);

• professional certifications and licenses, if applicable

• a specific indication of what role the individual will have in this project; and

• any additional pertinent information to indicate the individual's ability to aid Respondent in successfully completing the required services (limit to one page).

In addition, Respondent must provide an organizational chart indicating lines of authority, names, titles, and functions of individuals responsible for the services.

Resumes must present the required personnel information in sufficient detail to provide the Department with a convincing indication that the personnel involved can successfully provide the required Services. The personnel, as identified in the Proposal, are considered to be essential to the Services. The Department reserves the right, in its sole discretion, to approve each member of the team and to request substitutions. All replacements of personnel must be of equal or superior experience or skill as the person replaced.

4.2.H Respondent Narrative and Preliminary Work Plan

In its Proposal, Respondent must submit a narrative explanation of how the offered services will meet the requirements of this RFP. In its narrative, Respondent may also concisely describe any additional features, aspects, or advantages of its services in any relevant area not covered elsewhere in its Proposal.

4.2.I Proposed Fee

The Department is soliciting proposals to procure the services for a firm, fixed price. Respondents are encouraged to propose their best pricing at all times. Respondent must include all costs of providing the services on a price sheet similar in format to the price sheet located in Attachment D (Authorized Personnel and Compensation) to Exhibit A. All costs and expenses associated with the services, including attendance at, and participation in, all meetings as requested by the Department, must be included on the proposed price sheet. Variable costs such as travel-related expenses must not be added as line items on the price sheet. The Department reserves the right to negotiate budget and budgetary constraints at the time of contract award. Any Contract resulting from this RFP shall include a total not-to-exceed fee for all costs associated with providing the services.

4.2.J Insurance

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Respondent must provide a statement of its intent to obtain and maintain for the term of the Contract the minimum insurance and bond coverage specified in the RFP. Respondent should also describe insurance and bond coverage maintained by Respondent in the ordinary course of business and provide proof of same in its Proposal. Proof of insurance and bond coverage may be provided in the form of current certificates of insurance.

4.2.L Execution of Proposal

Exhibit B must be completed and signed by Respondent.

4.2.M VetHUB (Veteran Heroes United in Business Plan)

The State of Texas and the Department are committed to assisting Vet Historically Underutilized Businesses (VetHUBs) through the procurement process. In accordance with Sections 2161.181 and 2161.182, Texas Government Code, each state agency shall make a good faith effort to increase the contract awards for the purchase of goods or services to HUBs based on rules adopted to implement the disparity study described by Section 2161.002(c), Texas Government Code. In accordance with Section 2161.252, Texas Government Code and 34 Texas Administrative Code §20.285, each state agency (including institutions of higher education) as defined by Section 2151.002, Texas Government Code that considers entering into a contract with an expected value of $100,000 or more shall, before the agency solicits bids, proposals, offers, or other applicable expressions of interest, determine whether subcontracting opportunities are probable under the contract. If subcontracting opportunities are probable, each state agency’s invitation for bids or other purchase solicitation documents for construction, professional services, other services, and commodities with an expected value of $100,000 or more shall state that probability and require a VetHUB Subcontracting Plan (HSP) and supporting documentation.

The TDHCA VetHUB goals per 34 Texas Administrative Code §20.284 are: 3% for heavy construction other than building contracts; 3% for all building construction, including general contractors and operative builder’s contracts; 3% for all special trade construction contracts; 3% for professional services contracts; 26.0% for all other services contracts; and 21.1% for commodities contracts.

The Department has determined that this procurement falls under the following category:

Special Trade Construction ___ Professional Services Other Services X Commodities ___

The Department has determined that VetHUB (Veteran Heroes United in Business) subcontracting opportunities are probable and requires Respondents to complete the HSP form located at:

https://comptroller.texas.gov/purchasing/vendor/hub/forms.php. The HSP form is also posted to the ESBD as a separate package under this RFP. The Department has identified the possible subcontracting opportunities on the “Agency Special Instructions/Additional Requirements” portion of the State of Texas VetHUB HSP form set forth in the following chart.

The class and item codes for this RFP are as follows: Class 946, Item 12.

https://comptroller.texas.gov/purchasing/vendor/hub/forms.php

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Respondent must carefully review, complete and return all VetHUB forms, as required by this Section.

4.2.N Criminal Conviction Certification

Exhibit C must be completed and signed by Respondent.

4.2.O Nondisclosure Agreement

Exhibit D must be completed and signed by Respondent.

4.2.P Conflict of Interest Statement

The Conflict of Interest Statement must be prepared, signed by Respondent, and returned with the Proposal as Exhibit E.

In its Proposal, a Respondent must represent and warrant to the Department that it and each of its subcontractors have the requisite resources, qualifications, and independence to conduct the services free from outside direction, control, or influence, and subject only to the accomplishment of the Department’s objectives. Respondents that cannot make this representation and warranty should not respond to this RFP.

- - Agency Special Instructions/Additional Requirements - -

The Texas Department of Housing and Community Affairs is committed to increasing contracting opportunities with VetHUBs by contracting directly with VetHUBs or indirectly through subcontracting opportunities in compliance with Chapter 2161 of the Texas Government Code.

If a bid/proposal/offer to a solicitation with an expected value of $100,000 or more does not contain a completed HSP and supporting documentation, the bid/proposal/offer will be considered non-responsive and will be disqualified. After contract award, Successful Respondent may be subject to debarment pursuant to Section 2161.253(d) of the Texas Government Code if any modifications are made to the HSP without PRIOR approval from the Department.

For assistance in completing the HSP, Respondent may visit the following website:

https://comptroller.texas.gov/purchasing/vendor/hub/. If any questions, the respondent may contact the person identified in Part III Section 3.6.

If Respondent is not subcontracting any portion of the contract, Sections 1, 2(a), 3 and 4 must be completed.

If Respondent is subcontracting some portion of the contract, the supporting documentation of “Good Faith Effort” must be demonstrated in either Method A (Attachment A) or Method B (Attachment B).

The Texas Department of Housing and Community Affairs requests all Respondents to consider utilizing HUBs in subcontracting areas that are listed below; however, this list should not be considered exhaustive.

Class Item Description 946 20 Auditing 914 08 Accounting/Auditing/Budget Consulting;

In accordance with 34 TAC §20.285(d)(1)(D)(iii), a Respondent (prime contractor) may demonstrate good faith effort to utilize Texas certified VetHUBs for its subcontracting opportunities if the total value of Respondent’s subcontracts with Texas certified VetHUBs meets or exceeds the statewide VetHUB goal or the agency specific VetHUB goal, whichever is higher. When a Respondent uses this method to demonstrate good faith effort, the Respondent must identify the VetHUBs with which it will subcontract.

If using existing contracts with Texas certified VetHUBs to satisfy this requirement, only contracts that have been in place for five years or less shall qualify for meeting the VetHUB goal.

https://comptroller.texas.gov/purchasing/vendor/hub/

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Respondent must disclose any existing or potential conflicts of interest or possible issues that might create appearances of impropriety relative to the submission of a Proposal from Respondent and its possible selection as Successful Respondent, or its performance or the performance of its proposed subcontractor(s).

As part of this disclosure requirement, each Respondent must include in its Proposal all past and present contractual, business, financial or personal relationships between Respondent and the Department and between Respondent’s proposed subcontractors, if any, and the Department. For purposes of this disclosure requirement, (i) “past” is defined as within the two (2) calendar years prior to the deadline for submission of Proposals; (ii) the “Department” is defined as the agency as well as the agency’s employees or recent former employees; and (iii) “recent former employees” are defined as those Department employees who have terminated…