ESBD_495176_1776460911810_HHS0016822_TANF_Analysis.pdf

PCS 550 HHS RFP No. HHS0016822 Page 1 of 53 Version 2.30 Revision Date 04/28/2025

Stephanie Muth, Executive Commissioner

Request for Proposals (RFP) for

Temporary Assistance for Needy Families (TANF) Analysis

RFP No. HHS0016822

Date of Release: April 17, 2026

Responses Due: See Schedule of Events (Section 3.1)

NIGP Class/Item Codes

946-49 Financial Services (Not Otherwise Classified)

946-66 Monetary Systems, Including Analysis, Liquidity, Policy, etc.

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Contents Article I. Introduction, Definitions, and Authority

1.1 Introduction

1.2 Definitions

1.3 Authority

Article II. Scope of Work

2.1 Description of Services/Scope of Work

2.1.1 Background

2.1.2 Overview

2.1.3 State and Federal Guidelines

2.2 Contractor Requirements

2.2.1 Training Requirements

2.2.2 Contractor Deliverables

2.2.3 Key Performance Measures (KPM) and Liquidated Damages (LDs)

2.2.4 Contractor Responsibilities

2.2.5 Contractor Equipment

2.3 Contractor Key Personnel

2.3.1 Senior Financial & Compliance Analyst

2.3.2 Project Manager

2.3.3 Financial Policy Specialist

2.3.4 Training & Knowledge Transfer Specialist

2.3.5 Replacement of Contractor’s Key Personnel

2.4 HHSC Responsibilities

2.5 Payment and Invoices

2.6 State Holidays

2.7 Contract Award, Term, and Historical Compensation

2.7.1 Contract Award and Execution

2.7.2 Contract Term

2.7.3 Total Compensation

2.8 Data Use Agreement and Security Privacy Inquiry

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2.9 No Guarantee of Volume, Usage, or Compensation

Article III. Administrative Information

3.1 Schedule of Events

3.2 Ambiguity, Conflict, or Discrepancy

3.3 Inquiries

3.3.1 Sole Point of Contact

3.3.2 Prohibited Communication

3.3.3 Exception to Sole Point of Contact

3.3.4 Solicitation Questions

3.4 Pre-proposal Conference

3.4.1 Attendance

3.4.2 Conference Logistical Information

3.4.3 Questions at Pre-Proposal Conference

3.5 Solicitation Response Composition

3.5.1 General Information

3.5.2 Page Limit and Supporting Documentation

3.5.3 Discrepancies

3.5.4 Exceptions

3.5.5 Assumptions

3.5.6 Binding Offer

3.6 Solicitation Response Submission and Delivery

3.6.1 Deadline

3.6.2 Submission Options

3.6.3 Submission Checklist

3.6.4 Labeling and Delivery for USB Submission and Other Materials

3.6.5 Modifications and Withdrawals

Article IV. Solicitation Response Evaluation and Award Process

4.1 Conformance with State Law

4.2 Best Value Determination

4.2.1 Selection Methodology

4.2.2 Minimum Qualifications

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4.2.3 Initial Compliance Screening

4.2.3.1 Verification of Past Vendor Performance

4.2.4 Written Solicitation Response Evaluation

4.2.5 Written Response Evaluation Criteria

4.2.6 Advancement Criteria

4.2.7 Best and Final Offer (BAFO)

4.2.8 Final Written Response Score

4.2.9 Summary of Best Value Determination

4.3 Questions or Requests for Clarification

Article V. Narrative Proposal

5.1 Narrative Proposal

5.1.1 Executive Summary

5.1.2 Project Work Plan

5.1.3 Key Staffing Profile

5.2 Respondent Experience

Article VI. Required Respondent Information

6.1 Company Information

6.1.1 Company Narrative

6.1.2 Company Profile

6.2 Franchise Tax – Right to Transact Business in Texas

6.3 References

6.4 Major Subcontractor Information

6.5 Affirmations and Certifications

6.6 Other Reports

6.6.1 Dun and Bradstreet Reports

6.6.2 Financial Statements and Financial Solvency

6.6.3 Alternate Report

6.7 Corporate Guarantee

6.8 HUB Subcontracting Plan

Article VII. Cost Proposal

7.1 Cost Proposal

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Article VIII. General Terms and Conditions

8.1 General Conditions

8.1.1 Changes, Modifications, and Cancellation

8.1.2 Offer Period

8.1.3 Costs Incurred

8.1.4 Contract Responsibility

8.1.5 Public Information Act - Respondent Requirements Regarding Disclosure

8.1.6 Respondent Waiver – Intellectual Property

8.1.7 Standards of Conduct for Vendors

8.1.8 Disclosure of Interested Parties

8.2 Insurance

8.2.1 Required Coverage

8.2.2 Alternative Insurability

8.3 Protest

Article IX. List of Exhibits

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ARTICLE I. INTRODUCTION, DEFINITIONS, AND AUTHORITY

1.1 INTRODUCTION

The State of Texas, by and through the Texas Health and Human Services Commission (HHSC), is issuing this RFP for a qualified Contractor to perform a financial analysis review, the purpose of which is to ascertain HHSC’s compliance with reporting of expenditures of the TANF program.

The Contractor will further provide training and associated materials sufficient to enable HHSC to independently train other state agencies on TANF fund expenditure reporting compliance best practices.

Under the TANF block grant structure, states use grant funds to operate their own TANF programs.

TANF funds support families with children with low-income and provide other services such as work-related activities, childcare, and tax credits. Through the Social Security Act §401, 42 U.S.C.

§601, the TANF block grant permits States to utilize TANF block grant funding to meet any of the four statutory purposes set out in federal law, which are:

a. Provide assistance to needy families so that children can be cared for in their own homes or in the homes of relatives;

b. End the dependence of needy parents on government benefits by promoting job preparation, work, and marriage;

c. Prevent and reduce the incidence of out-of-wedlock pregnancies; and

d. Encourage the formation and maintenance of two-parent families.

HHSC PCS will administer the procurement process for this Solicitation, which includes RFP publication, handling of communications from vendors, as well as managing the receipt of Solicitation Responses for review and evaluation.

To be considered for award, a Respondent must execute Exhibit A, HHS Solicitation Affirmations, Version 2.10 and provide all other required information and documentation as set forth in this Solicitation.

Information regarding HHSC and its programs is available online and can currently be accessed at HHSC https://hhs.texas.gov/.

https://hhs.texas.gov/

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1.2 DEFINITIONS

Refer to Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4 for additional definitions.

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

“Addendum” means a written clarification or revision to this Solicitation issued by HHSC PCS and posted to the ESBD.

“Advancement Criteria” means the published criteria for Respondent to advance to the next phase of evaluation if multiple evaluation methods are utilized.

“Award Consideration (AC) Documents” means documents Respondent must submit as part of the Solicitation Response to be considered for negotiations or award.

“Business Day” means any day in which normal business Operations of HHSC are conducted, e.g., excluding weekends and the national holidays specified in Texas Government Code § 662.003.

“Calendar Day” means each day shown on the calendar beginning at 12:00 a.m. and ending at 11:59 p.m. the following day, including Saturdays, Sundays, and national and State holidays listed in Texas Government Code § 662.003.

“Competitive Range” has the same meaning as the definition under Title 1 of the Texas Administrative Code Part 15, Chapter 391, Subchapter A, Rule §391.107(3).

“Contract Term” means the period of time beginning with the commencement date or Effective Date of a Contract and ending when the Contract expires in accordance with its terms, or when it has been terminated.

“DFPS” means the Department of Family and Protective Services.

“ESBD” means the Electronic State Business Daily, the electronic marketplace where State of Texas bid opportunities over $25,000 are posted. The ESBD may currently be accessed at https://www.txsmartbuy.gov/esbd.

“Final Written Response Score” refers to the final scoring of the written response as documented in the Solicitation.

“HHSC” means the Health and Human Services Commission.

“HHSC PCS” means Procurement and Contracting Services (PCS), a division of HHSC.

https://texas-sos.appianportalsgov.com/rules-and-meetings?$locale=en_US&interface=VIEW_TAC_SUMMARY&queryAsDate=04%2F14%2F2025&recordId=208793 https://texas-sos.appianportalsgov.com/rules-and-meetings?$locale=en_US&interface=VIEW_TAC_SUMMARY&queryAsDate=04%2F14%2F2025&recordId=208793 https://texas-sos.appianportalsgov.com/rules-and-meetings?$locale=en_US&interface=VIEW_TAC_SUMMARY&queryAsDate=04%2F14%2F2025&recordId=208793 https://texas-sos.appianportalsgov.com/rules-and-meetings?$locale=en_US&interface=VIEW_TAC_SUMMARY&queryAsDate=04%2F14%2F2025&recordId=208793 https://www.txsmartbuy.gov/esbd

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“HUB” means Historically Underutilized Business, as defined by Section 2161.001(2) of the Texas Government Code.

“HUB Subcontracting Plan” or “HSP” means written documentation regarding the use of subcontractors, which is required by Section 2161.252 of the Texas Government Code, for a purchase with an expected value of $100,000 or more when the state agency has determined subcontracting opportunities are probable. The HSP subsequently becomes a provision of the Contract and Contractor’s compliance with the HSP will be monitored during the Contract Term.

“Maintenance of Effort (MOE)” refers to the federal requirement that states must spend a certain amount of their own funds on programs for needy families to receive their full federal TANF block grant.

“Respondent” means the individual or entity responding to this Solicitation.

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

“Solicitation Consideration (SC) Documents” means documents that must be submitted by Respondent with the Solicitation Response in order to be considered for evaluation and cannot be resubmitted or have errors remedied after the submission due date and time in the Schedule of Events has passed.

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

“Temporary Assistance for Needy Families (TANF)” is a federally funded program that provides cash assistance to low-income families with basic needs.

“VPTS” means Vendor Performance Tracking System maintained by the Texas Comptroller of Public Accounts. The VPTS may be currently accessed at https://comptroller.texas.gov/purchasing/programs/vendor-performance-tracking/.

1.3 AUTHORITY

HHSC is soliciting the Services stated in this Solicitation under the authority of Texas Government Code § 2155.061.

https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm#2161.001 https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm#2161.001 https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm#2161.252 https://comptroller.texas.gov/purchasing/programs/vendor-performance-tracking/

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ARTICLE II. SCOPE OF WORK

2.1 DESCRIPTION OF SERVICES/SCOPE OF WORK

2.1.1 Background

In State Fiscal Year 2025, Texas received approximately $540.5 million in TANF funding, including an additional $55.8 million from the TANF contingency fund by meeting federal eligibility requirements provided through §403(b)(5) of the Social Security Act. The Texas Legislature appropriates this funding to four state agencies, including HHSC, Department of Family and Protective Services (DFPS), Texas Education Agency (TEA), and Texas Workforce Commission (TWC). A recent TANF efficiency audit included findings related to federal and State reporting, spending, and allowability. The Contractor will address the findings and ensure compliance with the TANF program.

2.1.2 Overview

This Scope of Work (SOW) includes the Services, requirements, Deliverables, and key performance measures (KPMs) with the associated liquidated damages, to be performed by Contractor during the Contract Term.

a. Contractor shall provide analysis of HHSC’s TANF reporting and compliance with TANF regulations and guidance. This includes an analysis of the interagency TANF funding and interrelated reporting methods to ensure all state agencies receiving TANF funding comply with federal and State regulations and statutes. Contractor shall map out and document the policies and procedures around managing and monitoring TANF funding for each state agency that receives TANF funding as well as the correct processes and procedures for financial reporting and data submission of interagency information.

b. Contractor must assist HHSC in addressing the recommendations in response to the efficiency audit findings conducted by an external auditor (see TANF Efficiency Audit).

Contractor must conduct a review of the financial reporting process and determine any additional risk exposures by developing a Project Work Plan as required by DEL-02 in Section 2.2.2 (Contractor Deliverables). Any revisions to the Project Work Plan submitted by the Contractor must be approved in writing by HHSC.

c. Contractor must issue a summary report on the financial administration of TANF funds and compliance for the Texas TANF program as required by DEL-04 in Section 2.2.2 (Contractor Deliverables). This includes Texas TANF programs provided in the TANF Efficiency Audit.

d. Contractor must provide training and associated materials sufficient to enable HHSC to independently train other state agencies on TANF fund expenditure reporting compliance.

Training materials must include, at a minimum, a step-by-step process document outlining https://sao.texas.gov/SAOReports/ReportNumber?id=23-304 https://sao.texas.gov/SAOReports/ReportNumber?id=23-304

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2.1.3 State and Federal Guidelines

Contractor must reference all applicable State and federal guidelines for the financial review and analysis Services requested including, but not limited to, Chapter 31, Texas Human Resources Code, the state temporary assistance and support services program operated under Chapter 34, Texas Human Resources Code, and United States Code, Title 42, Section 601(a) (42USC 601), 2 CFR 200, and 45 CFR Part 260.

2.2 CONTRACTOR REQUIREMENTS

Contractor must provide TANF analysis and determine TANF compliance by meeting or exceeding the requirements set forth in Table 1 – Contractor TANF Analysis Requirements (ANL) and Table 2 – Contractor Interagency Assessment and Coordination (IAC) below:

Table 1 – Contractor TANF Analysis Requirements (ANL)

Req ID Detailed Requirements

ANL-01 Contractor must review federal and State rules, regulations, and statutes for TANF financial reporting.

a. Determine the proper use and completion of the following financial reporting forms: ACF-196R, ACF-199, and ACF-204, including but not limited to:

1. Where each TANF and MOE program should be reported on the ACF-

196R.

2. Any other MOE reporting and other reporting requirements.

b. Analyze any proposed TANF rule changes from October 2023 and June 2024 and any subsequent updates that have occurred since June 2024.

ANL-02 Contractor must document the TANF financial reporting processes currently being utilized by state agencies that receive TANF funding:

a. Include a review of how the following financial reporting forms are being used and completed: ACF-196R, ACF-199, and ACF-204.

b. Include an assessment and documentation of the entire portfolio of TANF and MOE programs.

c. Review the TANF State Plan to assess if all program descriptions are up to date and programs no longer funded by TANF or TANF MOE are removed.

d. Review the DFPS Cost Allocation Plan and confirm if DFPS expenditures claimed to TANF are also allocated to other benefiting programs.

https://statutes.capitol.texas.gov/Docs/HR/htm/HR.31.htm#31 https://statutes.capitol.texas.gov/Docs/HR/htm/HR.31.htm#31 https://statutes.capitol.texas.gov/Docs/HR/htm/HR.34.htm#34 https://statutes.capitol.texas.gov/Docs/HR/htm/HR.34.htm#34 https://www.govinfo.gov/content/pkg/USCODE-2023-title42/pdf/USCODE-2023-title42-chap7-subchapIV-partA-sec601.pdf https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d/section-200.319 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d/section-200.319 https://www.ecfr.gov/current/title-45/subtitle-B/chapter-II/part-260 https://acf.gov/sites/default/files/documents/ofa/ACF_196R_form_TANF_FINAL_May_2022.pdf https://acf.gov/sites/default/files/documents/ofa/acf-199209-TANFSSP-data-report-instructions-valid-thru-2026-10.pdf https://acf.gov/sites/default/files/documents/ofa/ACF-204-form-attach-A-%26amp%3B-B.pdf

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e. Review and confirm administrative costs related to medical services are not paid for with TANF funds.

f. Review each program to determine if the correct TANF purpose – and all associated rules – are being applied.

g. Review process and procedures for categorizing expenditures as TANF assistance or non-assistance. Determine if subsequent expenditures are categorized correctly as TANF assistance or non-assistance on the ACF- 199.

h. Analyze prior ACF-199 submissions to determine if the documented process resulted in correctly reported expenditures.

i. Analyze prior ACF-196R submissions to determine if the documented process resulted in accurate line-item entries and that reported expenditures only reflect spending for the applicable Federal Fiscal Year.

ANL-03 Contractor must conduct a gap analysis between the results in requirements ANL- 01 and ANL-02.

ANL-04 Contractor must identify opportunities for additional controls.

ANL-05 Contractor must identify training needs and develop training materials.

ANL-06 Contractor must determine the best way to provide notice of funding and allotments to state agencies, identifying the type of funding being awarded and the amount (2

CFR §200.332).

ANL-07 Contractor must determine the impact of proposed TANF rule changes from October 2023 and June 2024 and any subsequent updates that have occurred since June 2024.

ANL-08 Contractor must determine and provide a summary of which DFPS services were included in the approved 1997 Title IV-A State Plan amendment under TANF prior law.

ANL-09 Contractor must determine appropriate methodologies for calculating the portion of TWC and TEA expenditures that benefit TANF or TANF MOE, including using regional or local level data where available. Provide guidance to HHSC related to TEA’s use of pre-kindergarten expenditures to meet TANF MOE requirements.

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Table 2 – Contractor Interagency Assessment and Coordination (IAC)

Req ID Detailed Requirements

IAC-01 Contractor must determine the best way to provide notice of funding and allotments to state agencies, identifying the type of funding being awarded and the amount (2

CFR §200.332).

IAC-02 Contractor must determine how agencies receiving TANF funding can:

a. Reconcile draws to expenditures;

b. Only report expenditures that agree to draws/expenditures paid with drawn down funds;

c. Ensure that allowable expenditures are drawn from the applicable grant year.

IAC-03 Contractor must request, assess, analyze, and document current reporting methods for each agency to determine gaps and provide corrected or standardized methods as needed to ensure consistent reporting methodology across all state agencies receiving TANF funding.

IAC-04 Contractor must determine the best way to coordinate interagency reporting related to TANF, including but not limited to, calculating the portion of TWC and TEA expenditures that benefit TANF or TANF MOE eligible families, including using regional or local level data where available.

IAC-05 Contractor must ensure all subrecipients comply with Charitable Choice (45 CFR § 260.34) and document each state agency’s procedures to comply with this requirement.

2.2.1 Training Requirements

Contractor must provide training as set forth in Table 3 – Contractor Training Requirements (TRN) below:

Table 3 – Contractor Training Requirements (TRN)

Req ID Detailed Requirements

TRN-01

Contractor shall provide HHSC training on completing the ACF-196R, ACF-199, ACF-204, and any other required forms, including any newly introduced forms throughout the Contract Term.

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Table 3 – Contractor Training Requirements (TRN)

Req ID Detailed Requirements

TRN-02

Contractor shall develop and deliver training to HHSC staff who will assist DFPS, TEA, and TWC on the completion of the ACF-196R, ACF-199, ACF-204, and any other required forms.

TRN-03

Contractor shall collaborate with HHSC to determine and agree upon a suitable date and time for the delivery of one (1) train-the-trainer training session, which shall accommodate a total of 20 HHSC staff participants.

TRN-04 Contractor must provide a training agenda and overview to HHSC staff ten (10) Business Days before the scheduled training session.

TRN-05

Contractor shall record the train-the-trainer virtual session delivered to HHSC staff, including the date, trainer’s name, and participant names. Recording must be provided to HHSC for system agency use.

TRN-06

Contractor must obtain written confirmation from HHSC that all training requirements have been met within five (5) Business Days following the delivery of training.

TRN-07

Contractor shall provide supplemental TANF-related training as needed based on identified reporting or MOE compliance gaps. If HHSC determines, in its sole discretion, that a new or revised compliance-related procedure or process must be implemented, Contractor shall work collaboratively with HHSC to develop the required supplemental training. HHSC will provide Contractor with advanced written notice of the need for additional TANF training within 45 Business Days.

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2.2.2 Contractor Deliverables

Contractor must provide Deliverables as set forth in Table 4 – TANF Contractor Deliverables (DEL) below:

Table 4 – TANF Contractor Deliverables (DEL)

Del ID Deliverable Description Frequency

DEL-01 Monthly Status Report

Contractor must submit a Monthly Status Report to include:

a. Contractor’s completed tasks and activities;

b. Contractor’s pending tasks and activities;

c. Identification of any issues or risks;

d. Resource changes; and

e. Other items as specified by HHSC.

By the 15th Calendar Day of each month.

DEL-02 Project Work Plan Contractor must develop and submit a final Project Work Plan that outlines the methodology, approach, and timeline for conducting the Contract requirements.

The Contractor shall update and resubmit the Project Work Plan in accordance with HHSC feedback. Work associated with the TANF Funds Analysis shall not proceed until HHSC has reviewed and approved the final Project Work Plan.

The final approved Project Work Plan will serve as the basis for subsequent assessment of activities and Deliverables under the Contract.

Upon 30 Calendar Days of Contract execution.

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Table 4 – TANF Contractor Deliverables (DEL)

Del ID Deliverable Description Frequency

HHSC reserves the right to require additional revisions as necessary throughout the Contract Term.

DEL-03 Gap Assessment Memo

Contractor must submit a Gap Assessment Memo that outlines the following:

a. Scope of the assessment;

b. Documentation and reports that were reviewed;

c. All required State and federal guidelines;

d. Summary of all gaps identified by each state agency;

e. Documentation of existing policies and procedures for compliance and reporting by each state agency;

Upon 90 Calendar Days after the completion of the Project Work Plan.

DEL-04 Summary of Recommendations

Contractor must submit a Summary of Recommendations to include:

a. Provide recommendations to improve reporting and compliance by each state agency;

b. Provide recommendations for additional quality and internal controls by each state agency;

c. Any additional recommendations to improve compliance and coordination between the state agencies.

30 Calendar Days after completion of Gap Assessment Memo

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2.2.3 Key Performance Measures (KPM) and Liquidated Damages (LDs)

The Contractor shall meet the following KPMs. Failure to meet the KPMs may result in assessment of Liquidated Damages (LDs) as described in this section. LDs are not punitive; they represent a reasonable estimate of administrative burden incurred by the State due to late or deficient performance.

1. Timeliness of Deliverables

Requirement: Contractor shall submit all Deliverables by the due dates established in Section 2.2.2 (Contractor Deliverables).

Performance Standard: At least 95% of Deliverables submitted on time.

LD: $250.00 per late Deliverable, assessed after the second late Deliverable within a calendar quarter.

2. Accuracy and Completeness of Deliverables

Requirement: Deliverables, including, but not limited to, reports, written materials, and training content, must be complete, accurate, and meets scope of this Contract.

Table 4 – TANF Contractor Deliverables (DEL)

Del ID Deliverable Description Frequency

DEL-05 Contractor Training Materials

Contractor must submit all developed training materials for the ACF-196R, ACF-199, ACF- 204, and other federally required forms to include:

a. Detailed instructions and guidance to complete each form;

b. Troubleshooting guide that details potential issues as a result of submitting an error;

c. Common errors guide to assist in completing each form; and

d. List of reference documents

90 Calendar Days prior to Contract Expiration https://www.acf.hhs.gov/ofa/programs/tanf/reporting-instructions https://www.acf.hhs.gov/ofa/programs/tanf/reporting-instructions https://www.acf.hhs.gov/ofa/programs/tanf/reporting-instructions https://www.acf.hhs.gov/ofa/programs/tanf/reporting-instructions

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Performance Standard: No more than 5% of material errors per Deliverable; and at least 90% of Deliverables accepted on first submission.

LD: $150.00 per deficient Deliverable requiring substantial revision.

3. Responsiveness to HHSC

Requirement: Contractor shall respond to HHSC communications and requests for information in a timely manner.

Performance Standard: Responses provided within one (1) Business Day; and requested documents provided within 3 to 5 Business Days, unless otherwise agreed upon.

LD: $100.00 per instance where response time exceeds 3 Business Days without an approved extension.

4. Meeting Attendance and Participation

Requirement: Contractor shall attend and participate in meetings, workgroups, and coordination sessions as requested by HHSC.

Performance Standard: 95% attendance unless excused by HHSC in advance.

LD: $100.00 per missed, required meeting beyond two occurrences per quarter.

5. Monthly Status Reporting

Requirement: Contractor shall submit monthly status reports containing all required elements, including progress, completed tasks, risks, and upcoming work.

Performance Standard: Submitted by the 15th Business Day of each month, LD: $75.00 per late report.

6. Training Delivery and Knowledge Transfer

Requirement: Contractor shall prepare and deliver training materials enabling HHSC to independently carry out processes, methods, or reporting requirements produced under the Contract.

Performance Standard: Training materials delivered at least 90 Business Days prior to Contract expiration.

LD: $150.00 per training package submitted late or requiring rework due to incomplete or inaccurate materials.

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7. Documentation Quality

Requirement: Contractor shall provide clear, compliant, and accurate documentation for processes, procedures, and summaries. Documentation must support multiple learning methods, including the use of diagrams, samples, screenshots, and other visual or instructional aids as appropriate to ensure clarity and usability.

Performance Standard: 100% of documentation meets the requirements of the Contract.

LD: $100.00 per document requiring correction beyond initial review.

8. Interagency Coordination Support

Requirement: Contractor shall prepare and submit meeting summaries, stakeholder coordination materials, and workflow updates supporting interagency reporting processes.

Performance Standard: Submitted within three (3) Business Days of meeting or activity.

LD: $75.00 per late coordination document.

2.2.4 Contractor Responsibilities

The Contractor shall:

a. Contractor shall ensure that the assessment and documentation comply with requirements of the Uniformed Grants Management Standards, and Texas Grant Management Standards;

b. Contractor shall review report templates selected by HHS, and other related documentation based on the assessment they perform;

c. Contractor shall review related HHS documents as needed for assessing compliance with State and federal rules and provide recommendations for improvements;

d. Contractor shall provide the completed Deliverables within the timeframes as outlined in Section 2.2.2 (Contractor Deliverables).

e. Contractor shall provide status briefings and/or written reports either in person or virtually, at HHSC’s sole discretion, that specifically identify the work accomplished, and any preliminary findings or recommendations developed.

f. Provide key personnel set forth in Section 2.3 (Contractor Key Personnel) to perform the Services as required in this section.

https://comptroller.texas.gov/purchasing/docs/ugms.pdf https://spdedu.cpa.texas.gov/wp-content/uploads/2022/03/TxGMS-PPT.pdf

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g. Contractor and its Subcontractors must comply with confidentiality agreements and data protection regulations.

2.2.5 Contractor Equipment

Contractor shall be responsible for the security, maintenance, loss or damage to its equipment and its Subcontractor’s equipment. HHS will not be held responsible for damage to or loss of the Contractor’s or Subcontractor’s equipment.

2.3 CONTRACTOR KEY PERSONNEL

Contractor shall provide key personnel who possess the sufficient skills, expertise and qualifications to perform the required Services of the Contract. The key personnel, at a minimum, must include Contractor’s Senior Financial & Compliance Analyst. To meet the requirements of the Contract, Contractor may also provide the key personnel referenced in Sections 2.3.2 (Project Manager), Section 2.3.3 (Financial Policy Specialist) and Section 2.3.4 (Training & Knowledge Transfer Specialist) below.

2.3.1 Senior Financial & Compliance Analyst

Contractor shall provide one (1) position that serves as the Senior Financial & Compliance Analyst during the Contract Term. The Senior Financial & Compliance Analyst will serve as Contractor’s primary point of contact with HHSC during the Contract Term. At a minimum, Senior Financial & Compliance Analyst shall be responsible for, but not limited to, the delivery of the TANF Analysis to HHSC, the financial analysis of TANF fund allocation, monitoring, and reporting, coordinating and directing Contractor resources as required, addressing concerns or issues raised by HHSC, and managing the business relationship to ensure that scope, schedule, cost, and service quality comply with Contract requirements and Deliverables and to meet the requirements of Section 2.3 (Contractor Key Personnel).

This position will support audit resolution and review financial controls for compliance with federal and State standards. Senior Financial & Compliance Analyst must, at a minimum:

a. Possess a minimum of five (5) years’ experience in public finance and federal grants;

b. Demonstrate in-depth knowledge of TANF financial reporting, Office of Management and Budget (OMB) Uniform Guidance 2 CFR Part 200, and cost allocation;

c. Possess strong analytical skills to interpret financial data;

d. Possess experience in regulatory compliance to effectively navigate State and federal laws and standards relevant to the public sector; and

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e. Demonstrate experience resolving single audit findings.

2.3.2 Project Manager

The Contractor may provide one (1) position that serves to assist the Senior Financial & Compliance Analyst in leading the overall project and supports the project execution and completion of Deliverables required by this Contract. Project Manager must:

a. Provide engagement oversight, quality assurance, and high-level coordination of financial policy, and training teams;

b. Lead the overall project execution, client communication, timeline management, and integration of Deliverables across all workstreams;

c. Possess a minimum of five (5) years of experience in managing public sector engagement, preferably including HHS or TANF; PMP or equivalent preferred; and

d. Demonstrate familiarity with TANF funding mechanisms and state agency operations.

2.3.3 Financial Policy Specialist

The Contractor may provide one (1) position that serves to conduct statutory and policy analysis, evaluate alignment with TANF’s purposes, and lead the gap analysis related to implementation and performance outcomes. Financial Policy Specialist must:

a. Possess a minimum of five (5) years’ experience in public policy, and statutory interpretation;

b. Demonstrate knowledge of TANF statutory purposes and state-level implementation; and

c. Demonstrate the ability to identify operation opportunities and risks.

2.3.4 Training & Knowledge Transfer Specialist

The Contractor may provide one (1) position that serves to design and deliver training programs, including materials, to support HHSC staff in understanding TANF compliance and independently training partner agencies. Training & Knowledge Transfer Specialist shall:

a. Possess a minimum of five (5) years of experience in instructional design or adult learning;

b. Demonstrate experience with train-the-trainer models in public finance or compliance fields;

c. Demonstrate strong writing and facilitation skills; and

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d. Possess a background in education, public administration, or organizational development.

2.3.5 Replacement of Contractor’s Key Personnel

In the event Contractor proposes replacement or substitution of key personnel during the Contract Term, Contractor shall provide HHSC with the resumes of qualified individual(s) Contractor proposes as replacement(s). The resumes for the proposed key personnel must be provided to HHSC either:

a. Within ten (10) Business Days prior to the proposed start date of any additional (e.g., individual filling a new position) or replacement (i.e., individual replacing a removed individual) key personnel; or

b. Within ten (10) Business Days of notification of resignation or illness of key personnel or, if less than ten (10) Business Days’ notice is given by key personnel, immediately upon key personnel’s notice of resignation or illness.

In addition to meeting the minimum standards set forth in the Contract, replacement and substitute key personnel must have a level of qualification and experience similar or superior to the original key personnel replaced.

HHSC will have the right to conduct an interview of all proposed key personnel, provided such interview occurs before the commencement of Services by the relevant individual. HHSC will have the right to contact references of proposed key personnel. HHSC will provide Contractor with written notice of approval or rejection of proposed key personnel within five (5) Business Days of receipt of the resume. HHSC shall have the right to reject assignment of any of the Contractor’s proposed key personnel by providing to Contractor a reasonable basis for such rejection. Within five (5) Calendar Days of HHSC’s written notification of rejection, Contractor shall provide HHSC with additional resumes of proposed qualified individuals for review. This process shall be repeated until HHSC provides written notice to the Contractor of the individual selected. The approved individual must commence Services within twenty-one (21) Business Days of Contractor’s receipt of the HHSC selection notice.

HHSC, at its discretion, may request that Contractor remove key personnel providing Services under the Contract, if HHSC believes that such individual does not provide the Services as described within the Contract and Contractor, after notice, has been unable to resolve performance issues related to such individual.

2.4 HHSC RESPONSIBILITIES

a. HHSC will provide access (remote and physical) to necessary documentation, data, and/or HHSC staff for the purpose of performing the Services of the Contract. Access to necessary resources will not contain PII or confidential information. HHSC and Contractor will

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Revision Date 04/28/2025 collaborate with IT to determine appropriate methods for providing such access, which may include establishing a separate, partitioned site location for Contractor use.

Contractors will use these documents solely for the purpose of determining compliance, training needs, and financial analysis required to perform the Services under this Contract.

Publicly available reporting and expenditure data (e.g., USAspending.gov, HHSC reporting documents, TEA data) will be used where applicable.

b. HHSC will provide clarification and updates regarding HHSC operations, directives, policies and Contract provisions.

c. HHSC will monitor the Contractor’s performance of Contract requirements and activities to ensure compliance with all contractual obligations and facility policies. This monitoring will be tied to the weekly meetings and scheduled check-ins between HHSC and the Contractor.

d. HHSC will keep accurate records of all access granted to Contractor, including dates, times, and the nature of activities conducted on-site.

e. HHSC Project Coordinator will serve as the primary point of contact for Contractor regarding any questions or issues that arise during their access to the facility. HHSC will provide timely and efficient communication to inquiries and provide updates as necessary to facilitate streamlined operations. The point of contact will act as the primary channel for escalation protocol in case of issues or emergencies that require immediate attention.

f. HHSC will work collaboratively with Contractor to develop training materials and sessions that address new mandated legislative forms.

g. HHSC will provide ongoing support and oversight throughout the training sessions to ensure that all requirements are met and to facilitate any necessary adjustments as needed.

2.5 PAYMENT AND INVOICES

Contractor must provide invoices within five (5) Business Days of HHSC report acceptance. The Contractor must submit properly completed invoices and supporting documents that meet HHSC requirements and those set forth in the Texas Comptroller’s State of Texas Procurement and Contract Management Guide. HHSC will remit payments in accordance with Texas Government Code Chapter 2251, also known as the "Prompt Payment Act." Invoices must be submitted to HHSC detailing the total amount due for each service provided. Payment will be made after services are rendered and accurate and complete invoices have been received.

Illegible or incomplete documentation, which cannot be verified, will be rejected. Any services performed by Contractor which cannot be verified, will be disallowed for payment. Payment shall https://www.usaspending.gov/

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Revision Date 04/28/2025 be made within thirty (30) days of receipt of a correct invoice for services satisfactorily provided to HHSC. Interest shall accrue on late payments in accordance with Texas Government Code §2251.025.

The invoice must comply with Texas Administrative Code Title 34, Part 1, Chapter 20, Subchapter F, Division 1, § 20.487, Invoicing Standards. Invoices must contain, at a minimum: the Contract number, Purchase Order number, Work Order number, Deliverable number if applicable, Contractor name, address, telephone number, and email; invoice number, amount billed for services, and date of the services.

All invoices shall be submitted to Program for validation by email to: CFO_PC@hhs.texas.gov.

Courtesy copy email: hhscfederalfunds@hhs.texas.gov .

2.6 STATE HOLIDAYS

The State holidays observed are maintained by the State Auditor’s Office and may be accessed at:

http://www.hr.sao.texas.gov/Holidays. HHSC does not specifically require Services to be performed on these holidays.

To fulfill the required Services, as applicable, the Contractor may perform the Services on a holiday observed by HHSC at NO additional expense to HHSC. Performance of Services on a State holiday requested by HHSC will be performed and invoiced at the Contract rate.

2.7 CONTRACT AWARD, TERM, AND HISTORICAL COMPENSATION

2.7.1 Contract Award and Execution

HHSC intends to award one (1) Contract as a result of this Solicitation. Any award is contingent upon approval of the HHSC executive commissioner or their designee.

If, for any reason, a final Contract cannot be executed with a Respondent selected for award within sixty (60) days of HHSC’s determination to seek to contract with that Respondent, HHSC may negotiate a Contract with the next highest-scoring Respondent or may withdraw, modify, or partially award this Solicitation.

2.7.2 Contract Term

The initial term of any Contract resulting from this Solicitation will be one (1) year. HHSC at its sole option, may extend any Contract awarded pursuant to this Solicitation for up to one (1) additional year.

mailto:CFO_PC@hhs.texas.gov mailto:hhscfederalfunds@hhs.texas.gov http://www.hr.sao.texas.gov/Holidays

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Following the base term and any allowable renewals or extensions, HHSC may extend any resulting Contract for not more than one additional option period to address immediate operational or service delivery needs. If the resulting Contract does not include a defined option period, the extension is limited to one year.

2.7.3 Total Compensation

Total compensation under any Contract awarded shall not exceed $1,000,000.00. Notwithstanding the preceding, HHSC reserves the right to increase this amount if additional State or federal funding becomes available during the Contract Term, including any extensions.

2.8 DATA USE AGREEMENT AND SECURITY PRIVACY INQUIRY

a. By entering into a Contract, or purchase order with the System Agency as a result of this Solicitation, Respondent agrees to be bound by the terms of the Data Use Agreement attached as Exhibit D, Data Use Agreement (DUA) and Exhibit D-1, Attachment 2 to the DUA, Security and Privacy Inquiry (SPI).

b. The Respondent must complete and return Exhibit D-1, Attachment 2 to the DUA, Security, and Privacy Inquiry (SPI), Version 2.1.

c. Contractor shall ensure that all Confidential Information (as defined in the DUA), including such information residing on back-up systems, remains within the United States. Confidential Information shall not be accessed by Contractor personnel located outside of the United States.

Furthermore, Confidential Information may not be received, stored, processed, or disposed via information technology systems located outside of the United States.

2.9 NO GUARANTEE OF VOLUME, USAGE, OR COMPENSATION

HHSC makes no guarantee of volume, usage, or total compensation to be paid to any Respondent under any awarded Contract, if any, resulting from this Solicitation. Any awarded Contract is subject to appropriations and the continuing availability of funds.

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

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ARTICLE III. ADMINISTRATIVE INFORMATION

3.1 SCHEDULE OF EVENTS

EVENT DATE/TIME

Solicitation Posting Date to ESBD April 17, 2026

Pre-proposal Conference Attendance is optional April 22, 2026, at 10:00 a.m.

Central Time

Deadline for Submitting Questions or Requests for Clarification

April 23, 2026, at 5:00 p.m.

Central Time

Tentative Date Responses to Questions or Requests for Clarification Posted on ESBD

May 1, 2026

Deadline for courtesy HSP review May 4, 2026, at 5:00 p.m. Central Time

Deadline for Submission of Solicitation Responses [NOTE: Responses must be RECEIVED by HHSC by the deadline.]

May 15, 2026, at 10:30 AM Central Time

Anticipated Notice of Award June 2026

Anticipated Contract Start Date August 2026

Respondents must submit their Solicitation Responses to HHSC in accordance with the due date and time indicated in this Schedule of Events or as changed via an Addendum posted to the ESBD.

NOTE: All dates are tentative, and HHSC reserves the right to modify these dates at any time. At the sole discretion of HHSC, events listed in the Schedule of Events are subject to scheduling changes and cancellation. Scheduling changes or cancellation determinations made prior to the deadline for submission will be published by posting an Addendum to the ESBD. After the deadline for submission, if there are delays that significantly impact the anticipated award date, HHSC, at its sole discretion, may post updates regarding the anticipated award date to the Procurement Forecast on the HHS Procurement Opportunities web page. Each Respondent is responsible for checking the ESBD and Procurement Forecast for updates.

https://hhs.texas.gov/doing-business-hhs/contracting-hhs/procurement-opportunities https://hhs.texas.gov/doing-business-hhs/contracting-hhs/procurement-opportunities

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By submitting a Solicitation Response, Respondent represents and warrants that any individual submitting the Solicitation Response and any related documents on behalf of the Respondent is authorized to do so and to bind the Respondent under any Contract that may result from this Solicitation.

3.2 AMBIGUITY, CONFLICT, OR DISCREPANCY

Respondent must notify the Sole Point of Contact (Section 3.3.1) of any ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error in the Solicitation in the manner and by the deadline described in Section 3.3.4 (Solicitation Questions).

Respondent submits a Solicitation Response at its own risk.

If Respondent fails to properly and timely notify the Sole Point of Contact (Section 3.3.1) of any ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error in the Solicitation, Respondent, whether awarded a Contract or not:

a. Waives any claim of error or ambiguity in the Solicitation and any resulting Contract;

b. Must not contest the interpretation by HHSC of such provision(s); and

c. Is not entitled to additional compensation, relief, or time by reason of ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error or its later correction.

3.3 INQUIRIES

3.3.1 Sole Point of Contact

All requests, questions, or other communication about this Solicitation shall be made in writing to HHSC PCS, addressed to the person listed below (Sole Point of Contact). Additionally, a phone number is provided for purposes such as instructing a potential Respondent through an IT system or website referenced in this Solicitation. Communications via telephone are not binding.

The Sole Point of Contact will authorize a secondary Sole Point of Contact in the event of their absence and, in such an event, will include the contact information for the secondary Sole Point of Contact in their automatic reply out-of-office e-mail message. Respondents seeking to contact the Sole Point of Contact should do so via e-mail in order to receive updated contact information.

Name Joanna Saucedo CTCD, CTCM

Title Contract Specialist IV

Address Procurement and Contracting Services Building

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1100 W 49th St. MC: 2020 Austin, TX 78756

Phone 512-406-2416

Email Joanna.Saucedo1@hhs.texas.gov

See also, Section 3.3.3 (Exception to Sole Point of Contact) below.

3.3.2 Prohibited Communication

Except as provided in Section 3.3.1 (Sole Point of Contact) and Section 3.3.3 (Exception to Sole Point of Contact), potential Respondents and Respondents are prohibited from any communication with HHSC regarding the Solicitation. HHSC, its representative(s), and partners will not answer any questions or otherwise discuss the contents of this Solicitation with any potential Respondent or its representative(s). Attempts to ask questions by phone or in person will not be allowed or recognized as valid. Respondent shall rely only on written statements issued by or through HHSC designated staff as provided by Section 3.3 (Inquiries). This restriction does not preclude discussions between affected parties for the purposes of conducting business unrelated to this Solicitation. Failure to comply with these restrictions may result in disqualification of Respondent's Solicitation Response.

3.3.3 Exception to Sole Point of Contact

Exceptions to Section 3.3.1 are as follows:

a. Respondents with questions relating to the HUB Subcontracting Plan are permitted to direct those questions to the HUB coordinator at Bob.McCurdy@hhs.texas.gov.

b. Where it is expressly directed by the Sole Point of Contact that another designated HHSC representative may speak to the Respondent, such as during Contract negotiations.

Respondents are required to ensure that communications have been authorized by the Sole Point of Contact before engaging in such communication.