ESBD_504575_1776692521795_HHS0016852 RFQ, Professional Multi Audit Services.pdf

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 1 of 37 Version 2.0 (09/20/2023)

Stephanie Muth, Executive Commissioner

Request for Qualifications (RFQ) for

Professional Multi Audit Services

RFQ No. HHS0016852

Date of Release:See Section 3.1 for Schedule of Events

NIGP Class/Item Codes

918-04 Accounting, Auditing, Budget Counseling

946-11 Accounting Services (Not Otherwise Classified)

946-20 Audit Services

946-31 Certified Public Accountant (CPA) Services

946-49 Financial Services (Not Otherwise Classified)

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 2 of 37

Table of 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

2.2 Contract Award, Term, and Historical Compensation

2.2.1 Contract Award and Reservation of Rights

2.2.2 Contract Term

2.2.3 Historical Compensation

2.3 No Guarantee of Volume, Usage, or Compensation

2.4 Data Use Agreement and Security Privacy Inquiry

2.5 Work Order Agreement

2.6 Governmental Entities

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 Exceptions to Sole Point of Contact

3.3.3 Prohibited Communication

3.3.4 Solicitation Questions

3.4 Pre-proposal Conference

3.4.1 Attendance

3.4.2 Pre-proposal Conference Logistical Information

3.5 Solicitation Response Composition

3.5.1 General Information

3.5.2 Page Limit and Supporting Documentation

3.5.3 Discrepancies

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 3 of 37

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 Delivery

3.6.2.1 General Instructions

3.6.2.2 Solicitation Response – Component Parts

3.6.2.3 Submission Options

3.6.3 Submission Checklist

3.6.4 Modifications and Withdrawals of Solicitation Response

3.6.5 Retention of Solicitation Responses

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

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 Final Written Response Score

4.2.7 Additional Selection Considerations

4.2.8 Summary of Best Value Determination

4.3 Questions or Requests for Clarification

Article V. Statement of Qualifications

5.1 Executive Summary

5.2 Minimum Qualification Documentation

5.3 Qualifications and Experience

5.4 Project Work Plan

Article VI. Required Respondent Information

6.1 Company Information

6.1.1 Company Narrative

6.1.2 Company Profile

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 4 of 37

6.2 Authorization to Conduct Business in Texas

6.3 References

6.4 Affirmations and Certifications

6.5 Financial Capacity

6.5.1 Dun and Bradstreet Reports

6.5.2 Financial Statements and Financial Solvency

6.5.3 Alternate Report

6.6 Corporate Guarantee

6.7 Major Subcontractor Information

Article VII. HSP Requirement

7.1 HSP Submission Instructions

Article VIII. General Terms and Conditions

8.1 General Conditions

8.1.1 Changes, Modifications, and Cancellation of the Solicitation

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

8.3 Protest

Article IX. List of Exhibits

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 5 of 37

ARTICLE I. INTRODUCTION, DEFINITIONS, AND AUTHORITY

1.1 INTRODUCTION

The State of Texas, by and through the Texas Health and Human Services Commission (HHSC), seeks to award Master Contracts for professional Audit services in accordance with the requirements set forth in this RFQ.

The intent of this RFQ is to identify and award Master Contracts to a pool of Contractors. HHSC will use these Master Contracts on an “as needed basis.” The Contractor pool will have opportunities to submit Work Order Responses for HHSC Work Order Requests. This RFQ describes the types of Audits that HHSC anticipates. The specifics of each Audit will be issued through subsequent Work Order Requests. HHSC anticipates issuing 10 to 15 Work Order Agreements per year.

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

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

1.2 DEFINITIONS

As used in this Solicitation, unless a different definition is specified or the context clearly indicates otherwise, the terms and conditions have the meanings assigned below. Refer to Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4 for additional definitions (e.g., Contract, Contractor, Deliverable, Effective Date, HUB, Services, Solicitation Response, Subcontractor, System Agency, Work, and Work Order).

“Addendum” means a written clarification or revision to this Solicitation posted on the ESBD.

“Appropriateness” means the quality of audit evidence, specifically its relevance and reliability in supporting the auditor's conclusions.

“Attestation Engagement Examination" means a type of audit service in which an independent auditor evaluates and tests management’s written assertion about a subject matter (such as internal controls, compliance, or financial information) against established criteria and expresses an opinion on whether the assertion is fairly stated in all material respects.

“Audit” means an official examination or review of processes and systems, typically conducted by an independent entity, to ensure compliance to policy, standards and requirements.

https://www.hhs.texas.gov/

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 6 of 37

“Audit Report” means a written document containing the auditor’s findings gathered during the audit process.

“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 (24-hour period) in which normal business operations of HHSC are conducted (i.e., excludes weekends, State holidays, and the national holidays specified in Section 662.003(a) of the Texas Government Code).

“Business Hours” means between 8:00 a.m. and 5:00 p.m. Central Time during Business Days.

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

“CIA” means Certified Internal Auditor, a designation issued by the Institute of Internal Auditors.

“Contract Manager” means the point of contact who completes the Work Order process on behalf of HHSC or DSHS.

“Contractor Pool” means the group of Contractors awarded a Master Contract for the opportunity to provide responses to Work Order Request(s) issued by HHSC.

“CPA” means Certified Public Accountant.

“DMOs” means Dental Maintenance Organizations.

“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.

“Financial Audit” means the process of checking a company’s or organization’s financial statements to make certain they are correct and complete and then providing this information in an official report.

“DSHS” means the Texas Department of State Health Services.

“HHSC” means the Texas Health and Human Services Commission.

https://www.txsmartbuy.gov/esbd

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 7 of 37

“HHSC PCS” means the Procurement and Contracting Services division of HHSC. HHSC PCS provides purchasing support services to DSHS and the Department of Family and Protective Services pursuant to Section 524.0201 of the Texas Government Code.

“HUB Subcontracting Plan” or “HSP” means the written documentation regarding the use of Subcontractors that 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.

“Master Contract” means a binding written agreement, awarded through an open and competitive procurement process, that establishes either one Contractor or an eligible pool of Contractors to render services or deliver goods through the Work Order Process as needs are identified.

“Managed Care” or “MC” means a service delivery model where HHSC contracts with Managed Care Organizations (MCOs) to provide Medicaid and Children’s Health Insurance Program (CHIP) services to clients. Overall care of clients under MC is coordinated by the MCOs to improve quality and control costs.

“MCOs” means Managed Care Organizations.

“MCO FSR Audits” means audits of the Financial Statistical Reports (FSR) submitted by Managed Care Organizations (MCOs).

“Multiple Award Contract Procedure” means a procurement procedure that allows a state agency or the Comptroller to award contracts to more than one vendor for similar goods or services when necessary to ensure adequate delivery, service, or product compatibility.

“Performance Audit” means an examination of the methods and processes used by an organization to check that it is working effectively.

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

“Solicitation” means this RFQ 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 DSHS, as well as any other state agency, its officers, employees, or authorized agents.

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 8 of 37

“Statement of Qualifications” means the portion of the Solicitation Response that comprises a Respondent’s qualifications and skills as set out in Article V of the Solicitation.

“Vendor” means any of the various persons or entities with whom HHSC or DSHS has a contract for goods or services that HHSC may identify as the subject of an audit.

“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/.

“Work Authorization” means Contractor agrees to begin work within agreed upon Calendar Days from the date of the Work Order Agreement.

“Work Order Agreement” or “WO Agreement” means a legal bilateral document signed by the Contractor and HHSC that authorizes the Contractor to perform the Work specified.

“Work Order Process” means a process used to assign a specific Work Order to an eligible Contractor or pool of Contractors. For a Contractor Pool, this process must require submission of Work Order Response(s) to determine which Contractor provides best value.

“Work Order Request” or “WO Request” means an instrument drafted by HHSC used to request offers from an eligible Contractor or pool of Contractors for the completion of specific tasks or the delivery of certain goods.

“Work Order Response” or “WO Response” means an offer submitted by a Contractor in an eligible pool describing how the Contractor will accomplish the work for a specific price in response to a Work Order Request.

“Work Order Request and Response Form” means an instrument that contains the WO Request and the WO Response in one form (see Exhibit N, Work Order Request and Response Form Template).

1.3 AUTHORITY

This Solicitation is issued pursuant to the authority of Texas Government Code Chapter 2254, Subchapter A, and Texas Government Code Chapter 321.020.

ARTICLE II. SCOPE OF WORK

2.1 DESCRIPTION OF SERVICES

Refer to Exhibit H, Scope of Work (SOW).

https://comptroller.texas.gov/purchasing/programs/vendor-performance-tracking/ https://tcss.legis.texas.gov/resources/GV/pdf/GV.2254.pdf#2254 https://tcss.legis.texas.gov/resources/GV/pdf/GV.2254.pdf#2254 https://statutes.capitol.texas.gov/?tab=1&code=GV&chapter=GV.321&artSec=321.020

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 9 of 37

2.2 CONTRACT AWARD, TERM, AND HISTORICAL COMPENSATION

2.2.1 Contract Award and Reservation of Rights

As a result of this Solicitation, HHSC intends to award an indefinite quantity of Master Contracts.

Any award is contingent upon approval of the HHSC executive commissioner or their designee.

If, for any reason, a contract cannot be executed with a Respondent selected for award within sixty

(60) Calendar Days of HHSC’s determination to seek to contract with that Respondent, HHSC may avail itself of any option permissible under applicable law including, but not limited to, negotiate a Contract with the next highest scoring Respondent, make a partial award, or withdraw the Solicitation.

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.

2.2.2 Contract Term

The initial term of the Contract will be three (3) years. HHSC, at its sole option, may extend any Contract awarded pursuant to this Solicitation for up to two (2), one (1) year optional renewals.

Notwithstanding the limitation in the preceding paragraph and with at least ninety (90) Calendar Days’ advance written notice to Contractor, at the end of the initial term or any extension period, HHSC, at its sole discretion, may extend the Contract as necessary to ensure continuity of service, for purposes of transition, or as otherwise determined by HHSC to serve the best interest of the State for up to nine (9) months, in one-month intervals, at the then-current Contract rate or rates (if applicable) as modified during the Contract Term.

Individual Work Orders issued during the Contract Term may survive the termination or expiration of the Contract and may be extended for the purpose of completing any authorized Work.

2.2.3 Historical Compensation

Total compensation for any one (1) or for all cumulative Work Orders under the Contract shall not exceed $22,500,000.00. Notwithstanding the preceding, HHSC reserves the right to increase this amount, should additional State or federal funding become available during the Contract Term.

2.3 NO GUARANTEE OF VOLUME, USAGE, OR COMPENSATION

HHSC makes no guarantee of volume, usage, or total compensation to be paid under the Contract.

The Contract is subject to appropriations and the continuing availability of funds.

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 10 of 37

2.4 DATA USE AGREEMENT AND SECURITY PRIVACY INQUIRY

a. Contractor is bound by the terms of the Data Use Agreement (DUA), Version 8.5, attached as Exhibit D.

b. In its Solicitation Response, 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.

2.5 WORK ORDER AGREEMENT

During the term of any Contract awarded under this Solicitation, HHSC may request Contractor to perform certain tasks, as described in Exhibit H, Scope of Work (SOW), that are expressly authorized under a Work Order Agreement, a sample of which is attached as Exhibit O, Work Order Agreement Template.

All Work Order Agreements shall be in writing, signed by both parties, and shall include a scope of Services, a list of tasks to be performed by the Contractor, a schedule, a period of performance, a list of Deliverables if any (with instructions for completion), and such other information or special conditions as may be necessary for the Work requested.

2.6 GOVERNMENTAL ENTITIES

If Respondent is responding to this Solicitation in its capacity as a governmental entity, certain terms and conditions found in this Solicitation, including the exhibits and attachments, may not be applicable. Furthermore, to the extent permitted by law, if a Solicitation Response is received from a governmental entity, HHSC reserves the right to enter into an interagency or interlocal agreement with the governmental entity.

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 11 of 37

ARTICLE III. ADMINISTRATIVE INFORMATION

3.1 SCHEDULE OF EVENTS

EVENT DATE/TIME

Solicitation Posting Date on the ESBD April 20, 2026

Pre-proposal Conference

Attendance is Optional

April 27, 2026, at 10:00 a.m.

Central Time

Deadline for Submitting Questions April 28, 2026, at 5:00 p.m.

Central Time

Tentative Date Responses to Questions Posted on the

ESBD

May 5, 2026, 5:00 p.m. Central Time

Deadline for courtesy HSP review May 8, 2026, at 2:00 p.m.

Central Time

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

May 18, 2026, at 10:30 a.m.

Central Time

Evaluation Period May 2026

Tentative Date for Notice of Award Posted on the ESBD September 2026

Anticipated Contract Effective Date November 2026

All dates specified in the Schedule of Events are tentative and HHSC reserves the right to modify the dates or cancel the scheduled events at any time. Scheduling changes or cancellation determinations made by HHSC prior to the Solicitation Response deadline will be posted as an Addendum on the ESBD. If, after the Solicitation Response deadline, there are delays that significantly impact the anticipated award date, HHSC, at its sole discretion, may publish updates

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 12 of 37 regarding the anticipated award date in the Procurement Forecast (https://apps.hhs.texas.gov/procurement-calendar/procurement-forecast.pdf) located on the HHS Procurement Opportunities webpage currently accessed at https://www.hhs.texas.gov/business/contracting-hhs/procurement-opportunities.

In accordance with Texas Administrative Code, Title 1, Part 15, Chapter 391, Subchapter C, Rule §391.305, HHSC will issue a Notice of Intent to Award in the Procurement Forecast located on the HHS Procurement Opportunities webpage under Future Opportunities, Intent to Award Notices & Delayed Procurements.

Each Respondent is responsible for periodically checking the ESBD and the HHSC Procurement Forecast for updates.

3.2 AMBIGUITY, CONFLICT, OR DISCREPANCY

Respondent must notify the individual specified in Section 3.3.1 (Sole Point of Contact) 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 individual specified in Section 3.3.1 (Sole Point of Contact) 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 regarding this Solicitation shall be made in writing to HHSC PCS and addressed to the person identified below (Sole Point of Contact), except as permitted in Section 3.3.2 (Exceptions to Sole Point of Contact). If a telephone number is provided by the Sole Point of Contact, its use is limited to administerial matters such as instructing a potential Respondent on accessing an IT system or locating a website referenced in the Solicitation. Communications via telephone are not binding. Respondents shall rely only on https://apps.hhs.texas.gov/procurement-calendar/procurement-forecast.pdf https://apps.hhs.texas.gov/procurement-calendar/procurement-forecast.pdf https://www.hhs.texas.gov/business/contracting-hhs/procurement-opportunities https://apps.hhs.texas.gov/procurement-calendar/procurement-forecast.pdf https://apps.hhs.texas.gov/procurement-calendar/procurement-forecast.pdf https://apps.hhs.texas.gov/procurement-calendar/procurement-forecast.pdf

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 13 of 37 written statements issued by or through HHSC PCS designated staff as provided by Section 3.3 (Inquiries).

Name Amanda Herrera, CTCD, CTCM

Title PCS Purchaser

Address Procurement and Contracting Services Building 1100 W 49th St. MC: 2020 Austin, TX 78756

Phone 512-406-2482

Email Amanda.Herrera@hhs.texas.gov

3.3.2 Exceptions to Sole Point of Contact

Exceptions to Section 3.3.1 (Sole Point of Contact) are as follows:

a. A Respondent with a question relating to the HUB Subcontracting Plan is permitted to direct its written question(s) to the HUB coordinator via email at Bob.McCurdy@hhs.texas.gov.

b. The Sole Point of Contact may expressly direct another designated HHSC representative to speak to the Respondent, such as during Contract negotiations. It is the Respondent’s responsibility to ensure that communications with an individual other than the Sole Point of Contact have been authorized by the Sole Point of Contact before engaging in such communication. Failure to comply with this requirement may result in the disqualification of a Respondent’s Solicitation Response as provided in Section 3.3.3 (Prohibited Communication).

c. The Sole Point of Contact will authorize an alternate or backup Sole Point of Contact in the event of their extended absence from the office and, in such an event, the contact information for the secondary Sole Point of Contact will be in placed in an automatic reply out-of-office email message. A Respondent seeking to contact the Sole Point of Contact should do so via email in order to timely receive updated contact information.

3.3.3 Prohibited Communication

Except as provided in Section 3.3.1 (Sole Point of Contact) and Section 3.3.2 (Exceptions to Sole Point of Contact), a Respondent or potential Respondent is prohibited from communicating with HHSC regarding this Solicitation. HHSC, including its representative(s) and partners, will mailto:Amanda.Herrera@hhs.texas.gov mailto:Bob.McCurdy@hhs.texas.gov

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 14 of 37 not answer any verbal or written questions or otherwise discuss the contents of this Solicitation with any Respondent, potential Respondent, or their associated representative(s). This restriction does not preclude discussions between affected parties for the purposes of conducting business unrelated to this Solicitation. Failure to comply with this restriction may result in disqualification of Respondent's Solicitation Response.

3.3.4 Solicitation Questions

Written questions regarding this Solicitation must be submitted by email to the individual specified in Section 3.3.1 (Sole Point of Contact) by the deadline specified in Section 3.1 (Schedule of Events). Responses to the Solicitation questions will not be emailed to the individual requestors.

Responses to all Solicitation questions timely received will be posted on the ESBD by the deadline specified in Section 3.1 (Schedule of Events). If same or similar Solicitation questions are submitted, a single consolidated answer may be posted on the ESBD.

All questions regarding the Solicitation must include the following information:

a. Solicitation number;

b. Solicitation package reference (page number, section, and exhibit or attachment;

c. Question topic (e.g., “Schedule of Events,” or Exhibit A, HHS Solicitation Affirmations, Version 2.10; and

d. Question.

In addition, the following contact information must be provided by the requestor with its submission of the Solicitation question(s):

a. Business entity name;

b. Business entity representative name;

c. Phone number; and

d. Email address.

Solicitation questions received after the deadline specified in Section 3.1 (Schedule of Events) may not be answered. Prior to the Solicitation Response deadline specified in Section 3.1 (Schedule of Events), HHSC PCS reserves the right to amend answers previously posted on the ESBD. Amended answers will be posted on the ESBD. It is the Respondent's responsibility to periodically check the ESBD.

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 15 of 37

3.4 PRE-PROPOSAL CONFERENCE

3.4.1 Attendance

HHSC PCS will conduct a pre-proposal conference to include HSP training. Attendance is optional but highly recommended.

Attendees to virtual pre-proposal conferences are required to register at the webinar link in Section 3.4.2 (Pre-Proposal Conference Logistical Information). After registering, a confirmation email will be sent containing information about joining the webinar.

3.4.2 Pre-proposal Conference Logistical Information

HHSC PCS will hold the pre-proposal conference and HSP training webinar on the date and time specified in Section 3.1 (Schedule of Events).

People with disabilities who wish to attend the meeting and require auxiliary aids or services should contact the individual identified in Section 3.3.1 (Sole Point of Contact) at least seventy-two (72) hours before the pre-proposal conference in order to have reasonable accommodations made by HHSC.

Pre-Proposal Webinar Information:

Microsoft Teams https://events.teams.microsoft.com/event/bd0e514f-9d28-4a6e-a794-cb9ff0747758@9bf97732-82b9-499b-b16a-a93e8ebd536b

3.5 SOLICITATION RESPONSE COMPOSITION

3.5.1 General Information

Respondent should focus on the instructions and requirements of the Solicitation. Respondent should prepare a Solicitation Response that clearly and concisely represents its qualifications and capabilities. Expensive bindings, colored displays, promotional materials, etc. are not necessary or desired. Failure of Respondent to submit all required information and documents within its Solicitation Response in the required format(s) may result in disqualification of the Solicitation Response without further consideration.

3.5.2 Page Limit and Supporting Documentation

The Statement of Qualifications, described in Article V, must not exceed fifteen (15) pages, not including supporting documentation provided as appendices or attachments to the Statement of Qualifications. A Statement of Qualifications may be submitted with supporting documentation if https://events.teams.microsoft.com/event/bd0e514f-9d28-4a6e-a794-cb9ff0747758@9bf97732-82b9-499b-b16a-a93e8ebd536b https://events.teams.microsoft.com/event/bd0e514f-9d28-4a6e-a794-cb9ff0747758@9bf97732-82b9-499b-b16a-a93e8ebd536b

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 16 of 37 one (1) complete and concise responses cannot be provided within the Statement of Qualifications without referencing the supporting documentation, two (2) the Statement of Qualifications clearly specifies the location (e.g., file, page, section, and/or paragraph) where the supporting information can be found, and three (3) such supporting documentation is submitted as part of the Solicitation Response.

The Statement of Qualifications must be properly paginated, formatted as an 8 ½" x 11" page with 1-inch margins, and use a 12 point or larger font, except that a smaller font may be used for page headers and footers, footnotes, and illustrations such as tables, charts, diagrams, figures, graphs and other visual aids. If a font smaller than 12 point is used, the text when printed on 8 ½" x 11" paper must not require magnification to be legible. Large organizational charts, diagrams, or technical schematics may be formatted as an 11” x 17” page. Times New Roman font is preferred.

The Statement of Qualifications must not include other documents embedded as electronic files within the text and must not include hypertext links. The Statement of Qualifications, including supporting documentation, submitted as an electronic file should be pre-formatted for printing on 8 ½" x 11" paper.

3.5.3 Discrepancies

In the event of any discrepancies or variations between copies, HHSC is under no obligation to resolve the inconsistencies and may make its scoring and selection decisions, accordingly, including the decision to potentially disqualify a Solicitation Response. If Respondent is required to designate an “Original” Solicitation Response but fails to do so, HHSC in its sole discretion, will determine the version to be used as the original or may disqualify the Solicitation Response.

If the Respondent submits a redacted Solicitation Response as the “Original HHSC will disqualify the Solicitation Response and it will not be evaluated. HHSC will not accept submissions after the “Deadline for Submission of Solicitation Responses” Section 3.1 (Schedule of Events) to remedy discrepancies or variations in Solicitation Response submissions.to remedy discrepancies or variations in Solicitation Response submissions.

3.5.4 Exceptions

A Respondent is highly encouraged, in lieu of including exceptions in its Solicitation Response, to address all issues that might be advanced by way of exception by submitting such issues as questions in accordance with Section 3.3.4 (Solicitation Questions).

A Solicitation Response that is not responsive to the Solicitation requirements may result in disqualification. If a Respondent includes any exception(s) in its Solicitation Response, Respondent must specifically and clearly identify each exception on the Exceptions Form, Exhibit E and provide all information requested on the form. Any exception that is not submitted on the form and in the format prescribed by the Exceptions Form, Exhibit E may be rejected without consideration.

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 17 of 37

No exception, nor any other term, condition, or provision in a Solicitation Response that differs, varies from, or contradicts this Solicitation will be considered to be part of the Contract unless expressly agreed by HHSC and made a part of the Contract in writing.

3.5.5 Assumptions

Respondent must identify on the Assumptions Form, Exhibit F any business, economic, legal, programmatic, or practical assumptions that underlie the Respondent’s Solicitation Response.

HHSC reserves the right to accept or reject any or all assumptions. All assumptions not expressly identified and incorporated into any Contract resulting from this RFQ are deemed rejected by

HHSC.

3.5.6 Binding Offer

A Solicitation Response constitutes a binding offer to Contract based upon the terms, conditions, and specifications set forth in this Solicitation. 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.

A Solicitation Response must be responsive to the Solicitation as worded and without any expectation that any or all terms, conditions, or provisions of the Solicitation will be negotiated.

A Solicitation Response may be disqualified as non-responsive to the Solicitation if it includes any disclaimer asserting a conditional offer (e.g., Respondent’s ability to Contract is contingent on an exception or assumption provided in accordance with Section 3.5.4 (Exceptions) or Section 3.5.5 (Assumptions) or other similar statement indicating that the Solicitation does not constitute a binding offer.

3.6 SOLICITATION RESPONSE SUBMISSION AND DELIVERY

3.6.1 Deadline

Respondent is solely responsible for ensuring timely delivery of its Solicitation Response by the date and time specified in Section 3.1 (Schedule of Events). HHSC PCS will time stamp each Solicitation Response. Solicitation Responses received after the deadline specified in Section

3.1 (Schedule of Events) will be rejected and not considered for Contract award.

3.6.2 Delivery

3.6.2.1 General Instructions

It is the Respondent’s responsibility to appropriately mark and deliver the Solicitation Response to HHSC PCS by the date and time specified in Section 3.1 (Schedule of Events). HHSC will not be responsible for submission errors that may lead to disqualification due to nonreceipt or

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 18 of 37 late delivery of a Solicitation Response. In no event will HHSC be responsible or liable for any delay or error in delivery.

3.6.2.2 Solicitation Response – Component Parts

Respondent shall submit its Solicitation Response in component parts as described below:

a. One file/folder named “Original” that contains the Respondent’s entire Solicitation Response (except the HUB Subcontracting Plan) in searchable portable document format (PDF), unless otherwise specified for a particular attachment or exhibit.

b. In accordance with Section 7.1 (HSP Submission Instructions), one file/folder named “HUB Subcontracting Plan” in searchable PDF, that contains the Respondent’s HUB Subcontracting Plan, and all supporting documentation.

c. If applicable, one file/folder named “Public Information Act Copy” that contains the Respondent’s entire Solicitation Response, including all exhibits and attachments, in searchable PDF prepared in accordance with Section 8.1.5 (Public Information Act – Respondent Requirements Regarding Disclosure).

3.6.2.3 Submission Options

Respondent must submit the Solicitation Response using one of the following submission options. A Solicitation Response submitted by any other method will not be considered.

a. Submission Option No. 1: HHS Online Bid Room. Respondent shall submit the Solicitation Response packet through the Online Bid Room utilizing the procedures in Exhibit L, HHS Online Bid Room Information Version, 1.4.

b. Submission Option No. 2: USB Drive. Respondent shall submit the Solicitation Response using the procedures specified in this section.

Respondent must place the Solicitation Response on two (2) USB drives. The content on each USB drive must be identical. One USB drive must be labeled “Original” The second USB drive must be labeled “Copy.”

Respondent must deliver the Solicitation Response by one of the methods specified below.

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 19 of 37

Overnight/Express/Priority Mail Hand Delivery

Health and Human Services Commission ATTN: Response Coordinator

Tower Building Room 108 1100 W. 49th St., MC 2020

Austin, Texas 78756

Health and Human Services Commission ATTN: Response Coordinator

Procurement & Contracting Services Building

1100 W. 49th St., MC 2020 Austin, Texas 78756

A Solicitation Response delivered by mail or hand delivery must be placed in a sealed package. It is Respondent’s sole responsibility to ensure that packaging is sufficient to prevent damage to contents. HHSC will not be held responsible for any Solicitation Response that is mishandled prior to receipt by HHSC PCS.

The sealed package and each USB drive must be clearly labeled on the outside as follows:

SOLICITATION NO: HHS0016852

SOLICITATION NAME Professional Multi Audit Services

SOLICITATION RESPONSE DEADLINE See Section 3.1 (Schedule of Events)

PURCHASER NAME: Amanda Herrera CTCD, CTCM

RESPONDENT NAME: Respondent Name

Respondent is solely responsible for ensuring its Solicitation Response is submitted in accordance with all Solicitation requirements including, but not limited to, proper labeling of packages, sufficient postage or delivery fees, and ensuring timely receipt by HHSC. A dated shipping label, invoice of receipt from the delivery carrier, or any other documentation in lieu of the HHSC PCS time stamp WILL NOT be accepted.

3.6.3 Submission Checklist

Solicitation Consideration and Award Consideration Documents, defined in Section 1.2 (Definitions), must be submitted by the deadline for Solicitation Response submissions specified in Section 3.1 (Schedule of Events). Solicitation Consideration Documents will be reviewed as received, and Respondent will not have an opportunity to remedy missed requirements. At its sole discretion, HHSC may request some, or all of, the Respondents to remedy missing elements of Award Consideration Documents. Those marked “SC” are Solicitation Consideration Documents and those marked “AC” are Award Consideration Documents.

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 20 of 37

Below are the documents required to be submitted with the Solicitation Response. Where searchable PDF files are required, submission of non-searchable (image only) PDF files may result in disqualification of the Solicitation Response.

A. Statement of Qualifications and Respondent Information

1. Minimum Qualification Documentation

(Sections 4.2.2 and 5.2) SC ____

2. Statement of Qualifications (Article V) SC ____

3. Company Information (Section 6.1) SC ____

4. Authorization to Conduct Business in Texas

(Section 6.2) AC ____

5. References (Section 6.3) AC ____

6. Major Subcontractor Information (Section 6.7) AC ____

7. HHS Solicitation Affirmations Version 2.10

(Section 6.4, Exhibit A) SC ____

8. Assurances, Non-Construction Programs

(Section 6.4, Exhibit K) AC ____

9. Certification Regarding Lobbying (Section 6.4, Exhibit J) AC ____

10. Exceptions Form (Section 3.5.4, Exhibit E) AC ____

11. Assumptions Form (Section 3.5.5, Exhibit F) AC ____

12. Financial Capacity (Section 6.5) AC _____

16 Security Privacy Inquiry attachment 2 to DUA (SPI) Version 2.1

(Section 2.4, Exhibit D- 1)

AC ____

16. Signed Addenda (if applicable) AC ____

B. HUB Subcontracting Plan (Section 7.1 and Exhibit I)

SC ____

3.6.4 Modifications and Withdrawals of Solicitation Response

Prior to the Solicitation Response submission deadline specified in Section 3.1 (Schedule of Events), Respondent may either one (1) withdraw its Solicitation Response by submitting a written request to the individual identified in Section 3.3.1 (Sole Point of Contact), or two (2) modify its Solicitation Response by submitting a written amendment to the individual identified in Section

3.3.1 (Sole Point of Contact). When modifying its Solicitation Response, Respondent must provide written notice signed by an authorized representative that specifically identifies the portion(s) of the Solicitation Response that will be replaced or removed by the amendment.

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 21 of 37

3.6.5 Retention of Solicitation Responses

A Solicitation Response becomes the property of HHSC after submission and will not be returned to the Respondent.

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 22 of 37

ARTICLE IV. SOLICITATION RESPONSE EVALUATION AND AWARD

PROCESS

4.1 CONFORMANCE WITH STATE LAW

Solicitation Responses shall be evaluated in accordance with Texas Government Code Section 2254.003.

HHSC will make the selection of one or more Respondents (if any) to Contract with HHSC on the basis of demonstrated competence and qualifications to perform the required Services and for a fair and reasonable price.

4.2 BEST VALUE DETERMINATION

4.2.1 Selection Methodology

Solicitation Responses that meet the minimum qualifications will be submitted to the evaluation team for review and scoring. Each member of the evaluation team will receive a copy of each responsive Solicitation Response. The evaluators will review the Solicitation Responses considering the criteria listed in Section 4.2.5 (Written Response Evaluation Criteria).

Evaluators will individually score the Solicitation Responses. This procurement will utilize an aggregated individual evaluation methodology as outlined by this section.

The following subsections describe the evaluation process, including any criteria for advancement to the various phases of evaluation, if applicable.

4.2.2 Minimum Qualifications

Respondent must meet the minimum qualifications listed below.

a. Respondent must have recently been in business for a minimum of five (5) years and must currently employ at least one (1) licensed Certified Public Accountant (CPA);

b. Respondent must have at least three (3) years of experience conducting Audits in accordance with the Institute of Internal Auditor’s International Standards for the Professional Practice of Internal Auditing, and the Government Accountability Office’s Generally Accepted Government Auditing Standards (GAGAS);

c. Respondent must be financially solvent and adequately capitalized, as determined based on a review of documentation required by Section 6.5 (Financial Capacity); and https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2254.htm https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2254.htm

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 23 of 37

d. Respondent has submitted the Solicitation Response in accordance with Section 3.6, (Solicitation Response Submission and Delivery) including all Solicitation Consideration and Award Consideration Documents, see Section 3.6.3 (Submission Checklist).

4.2.3 Initial Compliance Screening

HHSC will review Solicitation Responses for compliance with Section 3.6.3 (Submission Checklist) and for demonstrated ability to meet the minimum qualifications specified in Section

4.2.2 (Minimum Qualifications) required to advance to evaluations. Failure to meet the minimum qualifications specified in Section 4.2.2 (Minimum Qualifications), will result in the disqualification of the Solicitation Response.

HHSC will automatically disqualify any Solicitation Response that does not include one or more of the completed and signed (as applicable) Solicitation Consideration Documents listed in Section

3.6.3 (Submission Checklist).

At its sole discretion, HHSC may disqualify any Solicitation Response that does not include all required Award Consideration Documents. Reference Section 3.6.3 (Submission Checklist).

HHSC may contact references provided in response to this Solicitation. HHSC may contact Respondent’s clients, or solicit information from any available source, including the Comptroller’s VPTS. Any information received may be grounds for disqualification if that information, in HHSC’s sole discretion, suggests that the Respondent may perform poorly if selected.

4.2.3.1 Verification of Past Vendor Performance

By submitting a Solicitation Response, Respondent generally releases from liability and waives all claims against any party providing information about Respondent at the request of HHSC.

At its sole discretion, Respondents may be rejected as a result of unsatisfactory past performance under any Contract(s) as reflected in vendor performance reports, reference checks, or other sources.

Respondent’s past performance may be considered prior to making an award determination.

a. Reasons for which a Respondent may be denied a Contract include, but are not limited to:

1. Respondent has unfavorable reports or grade less than a “C” on the CPA Vendor Performance Tracking System (VPTS);

2. Respondent is currently under a corrective action plan through HHSC;

3. Respondent has had repeated, negative vendor performance reports for the same reason;

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 24 of 37

4. Respondent has a record of repeated non-responsiveness to vendor performance issues; or

5. Respondent has contracts or purchase orders that have been cancelled in the previous 12 months for non-performance or sub-standard performance.

b. HHSC may examine other sources of vendor performance, which may include information provided by any governmental entity, whether an agency or political subdivision of the State of Texas, another state, or the federal government. The performance information may include, but is not limited to:

1. Notices of termination;

2. Cure notices;

3. Assessments of liquidated damages;

4. Litigation;

5. Audit reports; and

6. Non-renewals of contracts.

c. HHSC, at its sole discretion, may initiate investigations or examinations of vendor performance based upon media reports. Any negative findings, as determined by HHSC in its sole discretion, may result in HHSC’s removing Respondent from further consideration for award.

4.2.4 Written Solicitation Response Evaluation

Each member of the evaluation team will read the Solicitation Responses in preparation for evaluation. The evaluation team will score all Solicitation Responses that pass initial screening, Section 4.2.3 (Initial Compliance Screening). Solicitation Responses will be scored against the criteria in Section 4.2.5 (Written Response Evaluation Criteria)

Solicitation Responses will be evaluated utilizing aggregated individual scoring and any other methods outlined in Article IV, Solicitation Response Evaluation and Award Process. The individual evaluators’ scores will be aggregated and weighted, resulting in the Final Written Response Scores.

4.2.5 Written Response Evaluation Criteria

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 25 of 37

A Solicitation Response shall be consistently evaluated and scored in accordance with the following criteria. See also Exhibit G, Evaluation Tool.

a. Qualifications and Experience (60%)

b. Project Work Plan (40%)

4.2.6 Final Written Response Score

A Respondent’s Final Written Response Score is the score from Section 4.2.4 (Written Solicitation Response Evaluation). Final Written Response Score may not always determine best value or selection for negotiation and award, see Section 4.2.8 (Summary of Best Value Determination) for more information.

4.2.7 Additional Selection Considerations

Solicitation Responses should not include any information regarding Respondent's fees, pricing, or other compensation. Pricing will not be considered during the evaluation process.

4.2.8 Summary of Best Value Determination

The final selection for award will be based on best value, as determined by this section. This includes any scoring adjustments for outliers or other additional considerations as specified by this Solicitation. Respondents are encouraged to thoroughly review the processes outlined in this section, as it documents the best value considerations to be made by HHSC when selecting a Respondent for negotiation and contract award.

4.3 QUESTIONS OR REQUESTS FOR CLARIFICATION

By submitting a Solicitation Response, Respondent grants HHSC the right to ask questions, request clarifications and to obtain any information from any lawful source regarding the past history, practices, conduct, ability, and eligibility of the Respondent to supply Services and to fulfill requirements under this Solicitation, and the past history, practices, conduct, ability, and eligibility of any director, officer, or key employee of the Respondent. By submitting a Solicitation Response, the Respondent generally releases from liability and waives all claims against any party providing information about the Respondent at the request of HHSC. Such information may be taken into consideration in evaluating the Solicitation Response.

PCS 570 HHS RFQ, RFQ No. HHS0016852 Page 26 of 37

ARTICLE V. STATEMENT OF QUALIFICATIONS

5.1 EXECUTIVE SUMMARY

Respondent must provide an executive summary of its qualifications as well as a full and concise summary of the contents of the Solicitation Response. The overview should highlight key aspects of the Solicitation Response including Respondent’s understanding of any stated goals or objectives for this Solicitation. Respondent must include a statement in the executive summary that the Solicitation Response is responsive to all the requirements of this Solicitation, including Exhibit H, Scope of Work (SOW) The executive summary must not exceed three (3) pages.

If Respondent is providing services beyond those specifically required by this Solicitation, those services must be identified in the Solicitation Response. If Respondent is offering services that do not meet the specific requirements of this Solicitation, but in the opinion of the Respondent are equivalent or superior to those specifically requested, any such differences must be noted in the executive summary. Failure to submit a Solicitation Response that is responsive to the requirements of the Solicitation may result in disqualification of the Solicitation Response.

5.2 MINIMUM QUALIFICATION DOCUMENTATION

Respondents must provide documentation that demonstrates its compliance with the minimum qualifications set forth in Section 4.2.2 (Minimum Qualifications).

5.3 QUALIFICATIONS AND EXPERIENCE

a. Respondent shall describe its qualifications in providing Audit and reporting Services as described in Exhibit H, Scope of Work (SOW). The response must include Respondent’s years in operation, relevant experience, available services and demonstrated ability to perform the Audit services;

b. Respondent shall describe its experience performing Audits in accordance with the requirements outlined in Exhibit H, Scope of Work (SOW), and provide staffing profiles and resumes for all proposed key staff; and

c. Respondent shall describe experience conducting Audits in accordance with the Institute of Internal Auditor’s International Standards for the Professional Practice of Internal Auditing, as well as Generally Accepted Governmental Auditing Standards

(GAGAS).

5.4 PROJECT WORK PLAN

Respondents must describe their proposed processes and methodologies for providing all components of the Scope of Work described in Exhibit H, Scope of Work (SOW), including…