ESBD_493478_1772498299244_RFP301-26-03430 SWCAP Part A Statewide Cost Allocation Plan Services.pdf

STATE OF TEXAS

OFFICE OF THE GOVERNOR

FINANCIAL SERVICES DIVISION

for

Statewide Cost Allocation Plan Services for the

Office of the Governor (OOG)

Financial Services Division

Solicitation No. 301-26-3430

NIGP CLASS ITEMS

946-11 946-49 946-77 961-21

962-58

Response Date and Due Time: March 24, 2026 no later than 2:00 pm CT

Point of Contact

Jeff Duhon

CTCD/CTCM No. 1900017129

Procurement and Contract Manager

Office of the Governor of Texas

Financial Services Division

P.O. Box 12428

Austin, Texas 78711-2878

Phone: 512-936-9503

Email: Jeffrey.Duhon@gov.texas.gov

PART A: SPECIFIC TERMS AND CONDITIONS

Solicitation No. 301-26-3430- 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 State of Texas is required to submit an annual Statewide Cost Allocation Plan for approval by the U.S. Department of Health and Human Services, Region VI, Division of Cost Allocation

(DCA). The Office of the Governor (OOG), Financial Services Division, seeks proposals from qualified service providers to prepare the Statewide Cost Allocation Plans for use in the Fiscal

Year ending August 31, 2027 and submit the Section II costs for the State of Texas and other related deliverables as described in more detail below in accordance with the specifications contained in this Solicitation. Should any Contract awarded be extended, the Contractor would be expected to prepare Federal Statewide Cost Allocation Plan(s) for use in future Fiscal Year(s) as well as submit the Section II costs for the State of Texas and other related deliverables for those future Fiscal Year(s), as described in more detail below

The Contractor will develop detailed Statewide Cost Allocation Plan(s) that comply with the provisions in the Office of Management and Budget (OMB) Uniform Administrative

Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200)

(Uniform Guidance) and are divided into two phases. The first phase is concerned with the development of the fixed cost allocation plan itself and the second with the use of those costs to develop, submit, and secure approval for claims based on them.

In addition to Federal Statewide Cost Allocation Plan(s), the State is interested in identifying other statewide administrative overhead costs (Section II costs) that are not included in the Federal

Statewide Cost Allocation Plan(s) but which are nevertheless legitimate indirect costs. Federal regulations preclude certain costs, including, but not limited to, legislative costs, tax and fee collection costs, and certain expenses of the OOG. These costs should only be included when identifying indirect costs for the purpose of setting fees, revenue maximization, internal service costs and other non-federal grant activities. The State, therefore, also seeks to have second full cost allocation plan(s) prepared using these full-cost concepts.

Procurement Authority

Section 2106.002 of the Texas Government Code requires the OOG to annually prepare a statewide cost allocation plan which identifies the costs of providing statewide support services to each state agency, allocates to each state agency an appropriate portion of the total costs of statewide support services (including costs of providing statewide support services to each state agency), identify, to the extent possible, the amount of federally reimbursable indirect costs in each allocated portion, and develop and prescribe a billing procedure that ensures each state agency is billed for all costs allocated to the agency for which the agency is not obligated to pay another state agency under other law. The OOG has been delegated authority to contract for these services by the Texas

Comptroller’s Statewide Procurement Division under Texas Government Code, Section 2155.131.

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 of 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. Required Deliverables

With full understanding of the project and regulations presented in 2 CFR Part 200, project deliverables will include:

1. Prepare a Statewide Cost Allocation Plan for use in the Fiscal Year ending August 31, 2027 in accordance with the Uniform Guidance, based upon actual expenditures and data incurred during the Fiscal Year ending August 31, 2025. Should the Contract be extended, the Statewide Cost Allocation Plan(s) prepared would be for future Fiscal Year(s), with accompanying services identified in this RFP.

2. Collect all data and calculations necessary to prepare the cost allocation reports, including, but not limited to: (i) identifying sources of information; (ii) meeting with agency personnel to obtain and interpret data; (iii) analyze data, allocation bases, indirect cost pools, and methods of distributing costs for appropriateness; (iv) identifying alternative methodologies that may favorably impact cost recoveries; (v) review draft cost allocation plans with staff from OOG and selected state agencies; and (vi) respond to questions from state agencies on the cost allocation plans.

3. Submit revenue and expenditure documents for all internal service funds, self-insurance funds, and fringe benefit funds to comply with Section II full cost submittal requirements.

This will include the preparation of a reconciliation of fund balances and expenditures to comply with the Uniform Guidance for each fund and service. This will not include the preparation of any financial statements, rate methodologies, and/or billing rates.

4. Prepare roll-forward calculations for inclusion in the Statewide Cost Allocation Plan(s) proposal in a manner that is acceptable to the cost negotiators and submit completed draft fixed cost plan(s) for OOG approval and review with staff from OOG.

5. Prepare full cost allocation plan(s) which identify the costs of providing statewide support services to each state agency. After OOG has approved the full cost allocation plan(s), two

(2) bound copies and one (1) electronic copy of this plan plus 4 copies of the plan must be submitted to OOG. A summary of each fixed cost allocation plan and summary of each full cost allocation plan must also be provided in electronic Excel format suitable for posting on OOG’s internet website.

6. After final OOG approval of the draft fixed and full cost allocation plans, the Contractor will complete roll-forward adjustments to the reports. Final reports with roll-forward adjustments will be submitted by the Contractor to DCA for Federal government approval.

7. Negotiate the plan(s)’ approval with the DCA to secure federal government approval.

8. Upon final DCA approval of the fixed cost allocation plan(s), two (2) bound and one (1) electronic copy of the Statewide Cost Allocation Plan must be submitted to OOG.

9. Provide guidance to State of Texas personnel in the implementation of these plans.

10. Review the plans with the State central services departments and agencies affected by the plans to ensure that the State is obtaining the maximum return of federal dollars.

11. Accumulate and analyze all data that is required to complete the cost allocation plans.

4.1.2. Performance Tracking

The OOG will monitor the performance and progress of the Statewide Cost Allocation Plan 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 Statewide Cost Allocation Plan and shall recommend solutions prior to the due date for each deliverable.

4.1.3. 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.

4.1.4. Timeline for Deliverables Provided

Submission of the Statewide Cost Allocation Plan(s) to DCA is generally required within six (6) months prior to the beginning of each Fiscal Year to which each applies; currently, the OOG has requested, and expects to receive, an extension from the federal government to May 29, 2026 for the due date of the Statewide Cost Allocation Plan for use in the Fiscal Year ending August 31, 2027. Draft reports for Statewide Cost Allocation Plan for use in the Fiscal Year ending August

31, 2027 are due as follows; deadlines for future reports should any contract be extended are expected to be similar:

1. Fixed Cost Allocation Plan - For the plan in use in the Fiscal Year ending August 31, 2027, due to the OOG 45 Days from the date of the award

The successful Contractor is expected to develop cost allocation plan(s) that enable eligible state agencies to recover the maximum indirect costs possible from federal programs. The

Contractor selected will be responsible for all aspects of each plan, including obtaining raw cost and statistical data, identifying allocable costs, preparing and submitting the plan, and negotiating the final plan with the federal government for state agency use in the Fiscal Year ending August 31, 2027. Proposals must include a description of the system to be used to extract allowable costs from central government agencies and for allocating such costs. The

Contractor may be required to prepare alternative allocation tables using different allocation bases to demonstrate maximum feasible recovery operations.

2. Full Cost Allocation Plan - to the OOG 45 Days from the date of the award

As a component of the Statewide Cost Allocation Plan(s), the selected Contractor must also identify the Section II costs of providing statewide support services to each state agency. This component must identify state agencies that use services from state central service agencies

(for example, auditing, accounting, centralized purchasing, and legal services) in carrying out their programs and the type and dollar amount of services used. The Contractor will be responsible for developing full cost allocation plan(s) and all aspects of this component, including obtaining raw cost and statistical data and identifying allocable costs. Proposals must include a description of the system to be used to extract allocable costs from central government agencies and for allocating such costs.

3. Final Fixed and Full Cost Allocation Plans –For the plan in use for the Fiscal Year ending August 31, 2027, anticipated to be due to DCA by May 28, 2026, to be submitted by the Contractor.

4.1.5. 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 a U.S.-based 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, no later than 30 days after requested by 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 March 2, 2026

Deadline for Respondent Submission of Solicitation

Questions

March 5, 2026

The OOG’s Response to Questions Posted on the ESBD March 6, 2026

Deadline for Respondent HSP Courtesy Review Request March 6, 2026

OOG Provides HSP Courtesy Review March 10, 2026

Deadline for Respondent Submission of Response March 24, 2026

Anticipated Start Date March 30, 2026 http://www.txsmartbuy.com/esbd

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.

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. Evaluation of 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. Evaluation of 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)