ESBD_508018_1776445540526_RFQ 240m Independent Tax Examiners (Final 4-6-26).docx

KELLY HANCOCK

ACTING TEXAS COMPTROLLER OF PUBLIC ACCOUNTS

Request for Qualifications (RFQ No. 240m) for Independent Examining Services for the Texas Comptroller of Public Accounts

TABLE OF CONTENTS

PART I

BACKGROUND

Pursuant to Subchapter A, Chapter 111, Section 111.0045 of the Texas Tax Code, Title 34, §3.3 of the Texas Administrative Code, and Chapter 2254, Subchapter A, of the Texas Government Code, the Texas Comptroller of Public Accounts (“Comptroller”) issues this Request for Qualifications 240m (“RFQ”) from qualified independent persons or firms not currently under contract with Comptroller to perform tax compliance examination services. Such services do not include any attestation services or rendition of an opinion of any nature by contractors.

EXISTING CONTRACTORS WHO HAVE RECEIVED AN OFFICIAL NOTICE OF INTENT TO RENEW A CONTRACT THROUGH AUGUST 31, 2027, SHOULD NOT SUBMIT A RESPONSE TO THIS RFQ.

Respondents selected for an award under this RFQ (“Successful Respondent” or “Contractor”) must attend an orientation session to be conducted by Comptroller. Orientation sessions for 2026 may be held in-person or online by invitation only, on or about July 22, 2026 through July 24, 2026 (“Orientation”). Orientation is mandatory for all first-time and non-renewal Contractors. Successful Respondents must be available to begin accepting assignments no later than September 1, 2026, upon completion of Orientation, or as otherwise requested by Comptroller. Any contract resulting from this RFQ shall be effective upon signature by Comptroller after signature by Contractor and shall terminate on August 31, 2027 (“Contract Term”), with Comptroller having the sole right to exercise two (2) renewal options one (1) year each to be exercised one (1) year at a time (“Maximum Contract Term”). Respondents should not respond to this RFQ if they cannot agree to the terms and conditions of the sample contract (“Sample Contract”) attached as Exhibit C. Resulting contracts, if any, are non-exclusive and Comptroller may issue additional solicitations for the contracted services at any time. A Successful Respondent is not guaranteed any assignments or minimum compensation under any contract resulting from the RFQ.

Each Respondent may only submit one statement of qualifications (“Statement of Qualifications”) in response to this RFQ. Respondents who submit multiple responses under different entity names or addresses will be subject to disqualification from consideration and any existing contract may be terminated. In the event of such contract termination due to a Respondent’s submission of multiple responses, Respondent shall be liable to Comptroller for all amounts paid to Respondent by Comptroller under a contract.

PART II

STANDARDS OF PERFORMANCE AND STATEMENT OF WORK

2.1 Standards of Performance

The standards of performance (“Standards of Performance”) for any contract resulting from this RFQ shall consist of: 1) applicable professional standards; 2) general audit accounting standards; 3) Comptroller audit procedures; 4) Texas Tax Code and other applicable law; 5) Texas Administrative Code, including rules on contract examinations adopted by Comptroller; 6) policies of Comptroller; 7) Comptroller written Audit Manual; 8) Comptroller policy and procedure documents; 9) orientation conducted by Comptroller; and 10) written instructions of Comptroller project manager (“Project Manager”) assigned to any contract resulting from this RFQ. These Standards of Performance consist of such items as they exist on the date of contract signature and as subsequently amended throughout the term of the contract. Contractor shall conduct all examinations in accordance with the Standards of Performance and all applicable federal and state statutes, rules, and regulations.

2.2 Statement of Work

Contractors will be assigned an initial examination package containing a specific number of proposed taxpayers to be examined which will require a specific number of hours to complete, and Contractors will be compensated based on those numbers. Throughout the Contract Term, additional examination packages may be assigned. All work performed under state fiscal year 2027 fund (September 1, 2026 through August 31, 2027) must be completed no later than August 15, 2027. No minimum number of examinations, contracts, or compensation is guaranteed to any selected Contractor.

Contractor shall:

1. Conduct all examinations as assigned in the examination packages which will be incorporated into any contract resulting from this RFQ.

2. Use only the authorized personnel listed in an Authorized Personnel form which will be incorporated as an attachment to any contract resulting from this RFQ, as shown in Attachment B to the Sample Contract, to perform the assigned examinations. Comptroller, in its sole discretion, may allow substitutions of authorized personnel if:

a. the original authorized individual cannot work on the contract due to either health reasons or because he or she is no longer employed by the firm; and

b. the substituted individual has at least the equivalent number of months of professional experience, educational background, and position level within the firm as the original authorized individual.

3. Complete the required status reports (“Status Report”) and hours reports (“Hours Reports”) which are due on the first working day of every month. The last Status Report and Hours Report are due on August 12, 2027. Forms of the Status Report and Hours Report are available to Respondents upon request. Contractor understands that the submission of each periodic Status Report and Hours Report warrants that no conflict exists that would jeopardize the interest of Comptroller or cause Contractor to not be in compliance with all provisions of the contract.

4. Have and maintain all required equipment, materials, and other resources necessary for the successful and timely completion of all assigned examinations, including but not limited to: 1) a laptop personal computer equipped with secure connection capability; 2) internet access; 3) software that enables Contractor to encrypt and password protect all taxpayer information; and 4) Microsoft Word and Excel for drafting reports and data compilations. Only Comptroller may authorize limited exceptions to the foregoing resource requirements based on extenuating circumstance or good cause if, in Comptroller’s sole judgment and discretion, such exception would be in the best interests of Comptroller or the State of Texas (“State”). Notwithstanding the foregoing, Comptroller has determined that it is in the best interests of Comptroller and the State to provide all independent tax examiners with a Comptroller-issued email address and associated IT hardware and software (collectively, “State-issued Property”) to use when performing tax examination services under the contract resulting from this RFQ. Contractor hereby acknowledges and agrees to the following:

a. Contractor must use the Comptroller-issued email address when performing services under the contract resulting from this RFQ. Contractor must not contact taxpayers from a personal email address.

b. Contractor must not use State-issued Property for any purpose other than performing services under the contract resulting from this RFQ. State-issued Property includes, but is not limited to, Comptroller-issued email addresses, Comptroller information technology equipment and networks (e.g., peripherals, external hard drives, data storage devices, any Comptroller-issued software, and the Comptroller Virtual Private Network (VPN client)), and any other resources of Comptroller.

c. Contractor must not remove State-issued Property from the continental United States. In addition, Contractor may not use any computing device to access Comptroller’s network or e-mail while outside of the continental United States.

d. Contractor must not perform any maintenance services on State-issued Property.

e. During the time that State-issued Property is in the possession of Contractor, Contractor shall be responsible for (i) all repair and replacement charges incurred by Comptroller that are associated with loss of State-issued Property or damage beyond normal wear and tear and (ii) all charges attributable to Contractor’s use of State-issued Property that exceeds the scope of the contract resulting from this RFQ. Contractor shall fully reimburse such charges to Comptroller within ten (10) calendar days of Contractor’s receipt of Comptroller’s notice of amount due.

f. Use of State-issued Property for a purpose not authorized by the contract resulting from this RFQ will constitute breach of contract and may result in termination of the contract and the pursuit of other remedies available to Comptroller under contract, at law, or in equity.

2.3 Manner of Service Provisions

In performing the tax compliance examination services, Contractor shall:

1. Determine if assigned taxpayers are in compliance with Chapter 111 of the Texas Tax Code by reviewing the taxpayers’ reporting history and all taxpayer books and records related to the applicable taxes as assigned, specifically Texas Sales and Use Tax, Mixed Beverage Gross Receipts Tax, and/or Mixed Beverage Sales Tax. Comptroller may also assign examinations for Franchise (Margin) Tax, Enterprise Zone Refunds and Hotel Occupancy Tax. Contractor’s assignments will consist primarily of sales tax examinations; however, Comptroller may require additional examinations of other tax categories as a result of findings from tax examinations.

2. Amend examinations previously completed by the contract examination program (the “Contract Examination Program”) as directed by Comptroller.

3. Review the assigned taxpayers’ operations, records, and reporting history and create a plan to conduct the examination (“Examination Plan”). The Examination Plan must be reviewed and approved by Contractor’s supervisor (“Contract Supervisor”).

4. For each assigned examination, prepare work papers in a format prescribed by Comptroller, complete examinations and reports by deadlines established by Comptroller, and provide Comptroller with Contractor’s original, complete file of work papers. Contractor must provide a draft of the work papers to its Contract Supervisor for approval. If Contract Supervisor identifies any deficiencies, Contract Supervisor will notify Contractor and Contractor shall correct deficiencies and resubmit the working papers to Contract Supervisor within ten (10) working days of receipt of notification of deficiencies. If there is a disagreement over the noted deficiencies, Comptroller or Comptroller’s designee will make the final decision.

5. Conduct an entrance conference at the start of field work, an exit conference at the completion of field work, and effectively communicate all proposed tax adjustments to the taxpayers.

6. Notify Contract Supervisor immediately if for any reason any examination cannot or should not be completed in accordance with the contract. Contract Supervisor will notify Contractor of an appropriate course of action as soon thereafter as practicable.

2.4 Examination Package Assignment Procedures

1. Comptroller will provide Contractor with a Preliminary Examination Package by September 1, 2026, or as soon thereafter as practicable. The preliminary examination package shall contain the initial assigned taxpayers, taxpayer history and all other forms and documents Comptroller deems necessary to perform the examination (“Preliminary Examination Package”). Each Preliminary Examination Package is worth a designated compensation dollar amount (depending on state fiscal year award) which corresponds to an estimated required number of hours of work.

2. Contractor shall screen the proposed taxpayers to be examined in the Preliminary Examination Packages for actual or potential conflicts of interest and notify Comptroller in writing within five (5) calendar days of receipt of the Preliminary Examination Package stating any actual or potential conflicts of interest Contractor may have in accepting such proposed assignment. For purposes of reviewing taxpayers for potential conflicts of interest, the term “taxpayer” is the entity designated for a tax compliance examination and includes any subsidiaries of the taxpayer, parent of the taxpayer, subsidiaries of a common parent company, sister company, or any affiliates, predecessors, or successors in interest of the taxpayer. Comptroller reserves the right, in its sole discretion, to decide whether an actual or potential conflict of interest presents a basis for disqualification of the assigned Contractor relative to any examination within the Preliminary Examination Package. Depending on Comptroller’s decision, Contractor shall thereafter proceed with conducting only its assigned examinations where no actual or potential conflict of interest exists, subject, however, to results of the taxpayer questionnaire described in Subsection 3 below.

3. Using a contract examiner, Comptroller will send to taxpayers it proposes to examine a questionnaire covering, without limitation, geographic locations of taxpayers, their records, and possible conflicts of interest. After Comptroller receives the completed taxpayer questionnaire, Comptroller shall provide it to Contractor for its review.

4. If no conflicts exist, Comptroller will issue a letter of authorization and introduction to Contractor which authorizes Contractor to proceed with the final examination package (“Final Examination Package”). The Final Examination Package shall include, without limitation, the schedule of assigned examinations, the name of each entity or taxpayer, its location, and the timeline for the examinations to be completed as per Audit timeline procedures which can be found in the Auditing Fundamentals Manual and Orientation Manual, the latter of which will be provided to Contractor by Comptroller during Orientation. Contractor must submit all changes to the list of taxpayers included in the Final Examination Package to the Project Manager immediately by email and Comptroller or Comptroller’s designee will make appropriate changes to Contractor’s list of assignments (“Inventory Spreadsheet”).

5. Any remaining Preliminary Examination Packages will be distributed as soon thereafter as practicable and in accordance with a schedule that complies with Comptroller’s policies on examination turnaround time and taxpayer service. Comptroller reserves the right, in its sole discretion, to reallocate examination packages among Contractors after their initial assignment, based on Contractors’ performance under their contracts in order to increase or decrease the number of examinations assigned to a particular Contractor.

6. If any subsequent changes are required for any reason, Contractor shall return all materials to the Contract Supervisor immediately, and a substitute taxpayer Preliminary Examination Package will be provided as soon as practicable.

7. In the best interest of Comptroller and the State, Comptroller, in its sole discretion and at any time, may suspend Contractor’s performance of assigned examinations, in whole or in part, under any contract resulting from this RFQ.

2.5 Conflicts of Interest

1. Contractor shall not accept an examination assignment as part of its Final Examination Package if Contractor or any employee or subcontractor of Contractor has performed accounting, examining, management consulting, system design, tax services, or any other professional work for a designated taxpayer during the thirty-six (36) month period immediately preceding the date Contractor signs its contract resulting from this RFQ with Comptroller.

2. Contractor shall not accept an examination assignment as part of its Final Examination Package if Contractor or any employee or subcontractor of Contractor owns any type of debt or equity interest, community property interest, or receives any compensation whatsoever from a firm, other business entity, or an individual that has performed accounting, examining, management consulting, system design, tax services, or any other professional work for a designated taxpayer during the thirty-six (36) month period immediately preceding the date Contractor signs a contract resulting from this RFQ with Comptroller.

3. Contractor shall certify to Comptroller that it has not performed the above services during the thirty-six (36) month time period described immediately above.

4. At any time during the term of any contract resulting from this RFQ, a Contractor or any employee or subcontractor of a Contractor authorized to perform examinations under any contract resulting from the RFQ shall not:

a. own any debt or equity interest, community property interest in another firm, business entity, or individual that has performed accounting, examining, management consulting, system design, tax services, or any other professional work for a designated taxpayer that has been examined by Contractor or an employee or subcontractor of Contractor under a contract; or

b. receive any compensation whatsoever either as an employee or independent contractor with another firm, business entity, or individual that performed accounting, examining, management consulting, system design, tax services, or any other professional work for a designated taxpayer that has been examined by Contractor or employee of Contractor under a contract resulting from this RFQ; or

c. engage in any examination on behalf of Comptroller that may create any appearance of impropriety. Contractor shall notify Comptroller immediately upon learning of any potential or actual conflicts of interest.

5. Contractor shall disengage from the examination if it is found during the course of the examination that Contractor is not independent. Reasons for lack of independence shall include, without limitation, the finding of information during the course of an examination which shows that one of Contractor’s clients who is conducting business with the taxpayer under examination has a potential tax liability with the State. Further guidelines for determining lack of independence are provided by the Generally Accepted Auditing Standards, including, without limitation, General Standard No. 2.

6. Contractor shall have no currently delinquent Texas state tax liability, shall be in compliance with Texas revenue laws, and shall never have been convicted of violation of any Texas or federal tax laws. This provision includes any affiliated companies of Contractor and any businesses in which Contractor or its shareholders, partners, associates, or employees of Contractor have an ownership interest of any type.

7. Contractor shall not recommend or suggest individual attorneys, law firms, accountants, accounting firms, consultants, or consulting firms to represent a designated taxpayer that has been examined by Contractor under a contract.

8. Contractors that cannot comply with all of the above conflict provisions during the entire term of any resulting contract should not submit a response to this RFQ. Failure to observe all conflict of interest provisions or to disclose a potential conflict of interest or appearance of impropriety constitutes material breach and may result in immediate termination of a contract.

PART III

GENERAL INFORMATION

3.1 Comptroller Rights

In the best interest of Comptroller and the State, Comptroller, in its sole discretion and at any time, may exercise the following rights which include, but are not limited to: 1) withdrawal, conclusion, or cancellation of this RFQ at any time; 2) amendment or modification of any provisions of this RFQ; 3) rejection or acceptance, in whole or in part, of any or all Statements of Qualifications received in response to this RFQ; and 4) waiver of administrative deficiencies and/or minor technicalities in the Statement of Qualifications.

Comptroller reserves the right to reject or accept any Statement of Qualifications submitted by a Respondent whose employment with Comptroller was terminated for any reason or whose contract with Comptroller was previously terminated for cause. Comptroller, in its sole discretion, may disqualify or not recommend for an award of contract under this RFQ any Respondent whose contract for services with any entity was terminated or canceled prior to completion.

Comptroller further reserves the right to approve individual examiners employed by a firm and employees of a Respondent. Comptroller reserves the right to award contracts based on individual qualifications and on the need to achieve appropriate examination coverage in all geographical areas of the State and its bordering states and to evaluate Respondents in a manner that will best achieve this need.

The decision of Comptroller or its designee with regard to the above shall be administratively final. All Statements of Qualifications shall become a part of Comptroller official procurement files and may be available for public inspection upon execution of a contract resulting from this RFQ, if any.

3.2 Successful Respondent Obligations

Comptroller shall look solely to Successful Respondent for performance of any contract resulting from this RFQ. Successful Respondent shall provide the requested services under the direction of Comptroller and shall be liable, both individually and severally, for the performance of all obligations under any contract resulting from this RFQ.

3.3 Restrictions Regarding Prior Employment

It is Comptroller policy that an individual employed by Comptroller during the last twelve (12) months may not provide services under any contract resulting from this RFQ as an individual or employee of a Contractor and may not receive any compensation under any such contract. The twelve (12) month period is measured from the date of separation from Comptroller employment until the date responses to this RFQ are due.

Under Section 2252.901 of the Texas Government Code, a state agency may not enter into an employment contract, a professional services contract under Chapter 2254, or a consulting services contract under Chapter 2254 with a former or retired employee of the agency before the first anniversary of the last date on which the individual was employed by the agency, if appropriated money will be used to make payments under the contract.

3.4 Compensation Structure

Compensation shall not exceed:

· $211,200 for a firm with two (2) or more examiners assigned multiple packages. The maximum contract amount for an individual examiner with additional examiner employees or a firm with multiple examiners shall not exceed $211,200 for any state fiscal year during the term of the contract resulting from this RFQ, if any, or any optional renewals.

· $70,400, $88,000 or $105,600 per package assigned for individual examiners at the discretion of Comptroller. The maximum contract amount paid to any individual examiner without additional examiner employees will be $105,600 for any state fiscal year during the term of the contract resulting from this RFQ, if any, or any optional renewals.

Based on historical examination completion data, a $70,400 package will require an estimated 1280 hours of work to complete, an $88,000 package will require an estimated 1600 hours of work, and a $105,600 package will require an estimated 1920 hours of work to complete. The estimated hours are calculated based on the average number of hours required in the past to complete the examinations of each type of business during a period determined at the sole discretion of Comptroller, notwithstanding the fact that a previous examination of a specific taxpayer or business may have required more or less hours than the average.

Upon successful completion of the assigned Final Examination Package and Comptroller’s written acceptance of Contractor’s examination report and other contract deliverables, including work papers, Contractors will be paid in $10,000 increments for assigned work completed. The last payment, if applicable, will be made upon completion of a set number of assigned examinations as determined by Comptroller and upon submission to and acceptance by Comptroller as provided in any contract resulting from this RFQ.

Comptroller reserves the right, in its sole discretion, to reallocate examination packages among Contractors based on their performance under the terms of a contract resulting from this RFQ. In the event of an emergency or other unforeseen circumstance that prevents timely completion of assigned work and/or submission of Contractor’s examination report or other contract deliverable, Comptroller reserves the right, in its sole discretion, to reassign such work or contract deliverable and to make partial payment for work performed but not timely completed or reported to the extent such work facilitates completion of the reassigned examination or other contract deliverable.

3.5 Schedule of Events

Comptroller anticipates that the selection of a Successful Respondent, if any, and execution of any contract resulting from this RFQ, will proceed according to the following approximate schedule:

April 17, 2026 - Issuance of RFQ

April 24, 2026 - Written Questions Due (2:00 p.m. CT)

May 1, 2026 - Response to Questions Post

July 22-24, 2026 - Mandatory Orientation

August 1, 2026 - Proof of Insurance Due (2:00 p.m. CT)

August 15, 2026 - Contract Execution (or as soon thereafter as practical)

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

The times stated in this document refer to Central Time (“CT”), Austin, Texas, where appropriate. Comptroller’s regular office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday, except national and official State holidays.

Comptroller reserves the discretion to revise any or all of the above dates, in the best interests of Comptroller, or the State, and all deadlines are subject to change. Notices of changes to items directly impacting the original RFQ or procurement process will be posted on the Electronic State Business Daily (“ESBD”) located at: https://www.txsmartbuy.gov/esbd. It is the responsibility of interested parties to periodically check the ESBD for updates to the procurement prior to submitting a Statement of Qualifications. Respondent’s failure to do so will in no way release Respondent from compliance with any requirements in the “addenda or additional information,” even if such compliance results in additional costs to meet the requirements.

3.6 Issuing Office

Comptroller’s Contracts Section is the issuing office (“Issuing Office”) and the sole point of contact for this RFQ. The Contracts Section is the only office authorized to clarify, modify, amend, alter, or withdraw the specifications, terms, and conditions of this RFQ and any contract awarded as a result of this RFQ. Upon issuance of this RFQ, other employees and representatives of Comptroller will not answer questions or otherwise discuss the contents of this RFQ with any Respondents or their representatives. Failure to observe this restriction may result in disqualification of any pending or subsequent Statement of Qualifications. This restriction does not preclude discussions unrelated to this RFQ. Except as otherwise indicated, all communications concerning this procurement must be in writing and addressed to the Issuing Office as follows:

Melissa Mendoza Contracts Attorney Email: contracts@cpa.texas.gov

3.7 Submission of Questions

Respondents may submit questions to the Issuing Office no later than 2:00 p.m. by the deadline set forth in the Schedule of Events of this RFQ. Questions must be in writing. Respondents are encouraged to email questions to the Issuing Office to ensure timely receipt. On or about the date set forth in the Schedule of Events, Comptroller expects to electronically post answers to the written questions on the ESBD.

3.8 Deadline for Submission of Statement of Qualifications; Delivery Instructions

One electronic copy of the Statements of Qualifications in searchable PDF format must be submitted to the email address in Section 3.6 (Issuing Office) and received in the Issuing Office no later than 2:00 p.m. (CT) on May 15, 2026. Late Statements of Qualifications will not be considered under any circumstances. The email must be labeled with “RFQ No. 240m for Independent Examining Services” and include the name and address of Respondent within the body of the email.

Respondents are solely responsible for verifying Comptroller’s receipt of all Statements of Qualifications by the deadline specified above. Comptroller shall not be liable or responsible for any costs whatsoever incurred in submission of a Statements of Qualification in response to this RFQ. Faxed Statements of Qualifications are not acceptable and will not be considered.

Due to changed building access restrictions, Respondents will not be permitted to hand deliver Statements of Qualifications or provide hardcopy Statements of Qualifications to the Issuing Office. Respondents are required to submit Statements of Qualifications electronically in accordance with this Section.

For purposes of meeting the 2:00 p.m. (CT) delivery deadline, the Issuing Office’s electronic receipt date and time will be considered conclusive in all respects.]

Comptroller strongly encourages potential Respondents to periodically check the ESBD for any updates for submitting Statements of Qualifications to the Issuing Office.

Pursuant to Section 322.020 of the Texas Government Code, Comptroller uploads the Statement of Qualifications of each Successful Respondent to the Legislative Budget Board (“LBB”) State Contracts Database no later than ten (10) days after the date of contract award, if any (see the LBB website at https://www.lbb.texas.gov/). At the Orientation, each Successful Respondent shall provide Comptroller with a hard copy of Successful Respondent’s Statement of Qualifications in which Successful Respondent has redacted information that it reasonably considers to be confidential and exempt from public disclosure under the Texas Public Information Act as set forth in Chapter 552 of the Texas Government Code. In submitting a Statement of Qualifications in response to this RFQ, Respondents acknowledge that they understand and accept this requirement.

3.9 Evaluation Criteria and Award

Only Statements of Qualifications that meet the minimum qualifications requirements as set forth in Part IV of this RFQ shall be considered by an evaluation committee (the “Evaluation Committee”). The evaluation of Respondents will be performed for three categories as set forth in the table below. The scores for the three (3) categories will be added together to determine a total score not to exceed 600 points.

Evaluation Criteria

Maximum Points

Evaluation Weight

Statement of Qualification contents, training, experience, and qualifications

50%

Past performance in providing state tax services

40%

Geographic Availability

10%

As part of the evaluation process, Comptroller will contact the person listed as a reference in the Respondent Questionnaire or a prior Comptroller supervisor, if applicable, to make specific inquiries regarding past performance in providing state tax services, as well as reference checks with other entities regarding past performance. Additionally, Comptroller may evaluate past performance through the Vendor Performance Tracking System found on Comptroller’s website at: https://www.comptroller.texas.gov/purchasing/programs/vendor-performance-tracking/, as authorized by Title 34 Texas Administrative Code §20.115. Comptroller may examine other measures of Respondent performance including, but not limited to, prior performance evaluations, notices of termination, cure notices, litigation, audit reports, and non-renewal of contracts. The sources of vendor performance measures may include any governmental entity, whether an agency or political subdivision of the State, another state, or the Federal government. Any investigations shall be at the sole discretion of Comptroller and any negative findings, as determined by Comptroller, may result in non-award to a Respondent. In evaluating tax examination experience and past performance, Comptroller will consider the recency and relevance of experience. Comptroller reserves the right to award more points for recent examination experience, as well as services performed on behalf of the Comptroller.

Persons or firms whose contract or employment with Comptroller was terminated for cause will be disqualified from further consideration. The Evaluation Committee may, in its sole discretion, disqualify or not recommend for an award any Respondent whose employment or contract with any entity was canceled or terminated prior to completion.

When considering geographic availability in the evaluation process, Comptroller reserves the right to award more points to Respondents located in, or willing to work in, underrepresented geographical areas to achieve appropriate examination coverage in all geographical areas of the State and its bordering states.

Successful Respondents will be notified of their preliminary selection by email prior to the Orientation. Notice of contract awards resulting from this RFQ will be published in the ESBD as soon as possible after all contracts resulting from this RFQ, if any, are fully executed. Respondents who do not receive a preliminary selection email notice before the date of the Orientation should assume they were not selected for an award.

3.10 Protest Procedures

Protests regarding this RFQ or actions taken under it shall be governed by the Comptroller’s rule located at Title 34, §1.72 of the Texas Administrative Code.

3.11 Certification

Respondent certifies that neither it, nor its holding companies or subsidiaries, is: (a) listed in Section 889 of the 2019 National Defense Authorization Act; (b) listed in Section 1260H of the 2021 National Defense Authorization Act; (c) owned by the government of a country on the U.S. Department of Commerce’s foreign adversaries list under 15 C.F.R Section 791.4; or (d) controlled by any governing or regulatory body located in a country on the U.S. Department of Commerce’s foreign adversaries list under 15 C.F.R Section 791.4.

PART IV

STATEMENT OF QUALIFICATIONS REQUIREMENTS AND FORMAT

4.1. Statements of Qualifications Requirements

Only Statements of Qualifications that meet minimum qualifications requirements as set forth in this Part IV will be considered by the Evaluation Committee. Statements of Qualifications must be organized as described in Section 4.3 below or may be subject to disqualification. Statements of Qualifications must be complete and concise, and failure to provide all required information may result in disqualification.

4.2 Minimum Qualifications

Respondent(s) must meet the following minimum qualifications:

1. a bachelor’s degree from an accredited senior college or university with a minimum of twenty-four (24) hours of accounting, including six (6) hours of intermediate accounting and three (3) hours of auditing; and

2. one (1) year of experience in Texas tax auditing, accounting, or other Texas tax services.

4.3 General Organization of Statements of Qualifications

Statements of Qualifications must include all of the following to be considered and shall be submitted as separate and independently numbered sections. Failure to properly label and fully respond to each of the items below may result in disqualification.

1. Checklist in format of Exhibit F to this RFQ.

2. Transmittal letter that (a) describes specific experience and qualifications in conducting state tax examinations; and (b) outlines Respondent’s understanding of Section 111.0045 of the Texas Tax Code related to these types of examinations.

h. detail any firm ownership changes which have occurred in the last three (3) years and any pending changes; and

i. detail any joint ventures or affiliations.

4. Respondent questionnaire attached as Exhibit A to the RFQ (“Respondent Questionnaire”) for each individual who will be involved in the project. Respondent Questionnaires must be on the form contained in this RFQ. Respondents shall disclose all personnel who will perform professional services under the terms of any contract resulting from this RFQ. This provision will be strictly enforced. Failure to submit a complete, separate, and signed Respondent Questionnaire detailing all courses, dates, and subject of courses by each person who applies to perform examination services may result in disqualification.

5. A sample Examination Plan (“Examination Plan”) providing a list of the examination procedures and resources that will be utilized to conduct these examinations on an as-needed basis if selected by Comptroller. The Examination Plan shall describe the actual procedures to be used in sufficient detail to demonstrate an understanding of internal control, record keeping, and taxpayer reporting responsibilities for sales tax and the appropriate examination procedures necessary for verification of correct tax amounts. The sample Examination Plan must include, at a minimum, all items contained in the General Audit Checklist section of Comptroller’s Auditing Fundamentals Manual, Chapter 3. The sample Examination Plan shall include a description of all necessary procedures and instructions in sufficient detail to allow any person who meets the one (1) year experience requirement in Title 34, §3.3 of the Texas Administrative Code to properly perform a sales and use tax examination with minimal supervision. The Examination Plan submitted shall include an example of actual past work performed by Respondent. If portions of any Comptroller publication, manual, or other document are used to prepare the Examination Plan or are incorporated into the Plan, the most current version must be used.

6. Proposed sample work plan (including Timeline, Tasks, and Deliverables) (“Work Plan”), including: (a) methods for deploying personnel and equipment to perform the examinations timely and otherwise in accordance with each contractual requirement; (b) methods for making personnel available for Orientation and examination; (c) date availability for each of the personnel to perform assigned examinations; (d) methods for conducting preliminary (prior to receipt of taxpayer questionnaire) and final (after receipt of taxpayer questionnaire) conflicts checks regarding actual or potential conflicts of interest and notifying Comptroller prior to accepting or beginning an assignment; and (e) method for performing the activities listed in the Audit Flowchart Timelines contained in the Appendix of Comptroller’s Auditing Fundamentals Manual.

7. Statement of whether or not Respondent is certified through the Veteran Heroes United in Business Program (“VetHUB”). To be a VetHUB, Respondent must be registered as such with Comptroller’s Statewide Procurement Division. Comptroller’s VetHUB certification requirements are located at https://comptroller.texas.gov/purchasing/vendor/hub/certification-process.php.

8. Completed, initialed where applicable, and signed Execution of Statement of Qualifications form set forth in Exhibit B to this RFQ.

9. Completed and signed Nondisclosure Agreement on the form set out in Exhibit D to this RFQ.

10. Signed letter(s) from a qualified insurance agent containing quotations for ALL OF the required insurance coverages described in Section IX of the Sample Contract in Exhibit C and stating that the coverages are available to Respondent WITH AN EFFECTIVE DATE OF SEPTEMBER 1, 2026 THROUGH AUGUST 31, 2027, if selected under this RFQ. Respondent’s insurance agents shall be ready to immediately issue policies and certificates upon notification of Respondent’s selection, which policies shall become effective on or before September 1, 2026 and continue through August 31, 2027. In the alternative, Respondents may submit current certificates of insurance showing the required coverage is already in force and in effect, preferably for the entire contract term ending on August 31, 2027. Failure to provide information on each of the required coverages may result in disqualification. It is Respondent’s sole responsibility to ensure that Comptroller receives the requisite certificate of insurance from Respondent or Respondent’s insurance carrier(s) by August 1, 2026. No contracts will be executed by Comptroller without satisfactory documentation of insurance as outlined above.

11. Criminal Conviction Certification completed, signed, and initialed where applicable on the form set out in Exhibit E to this RFQ.

EXHIBIT A

TO RFQ 240m

RESPONDENT QUESTIONNAIRE

ALL EXHIBITS ARE PREPARED EXCLUSIVELY FOR RFQ 240m. DO NOT PROVIDE UNRELATED DOCUMENTS, OR DOCUMENTS FROM PRIOR SUBMISSIONS, AND DO NOT LEAVE BLANKS WHERE INFORMATION IS REQUESTED, AS THIS MAY RESULT IN DISQUALIFICATION OF THE STATEMENT OF QUALIFICATIONS.

Instructions:

Respondent may respond as one of the following: 1) individually as a sole proprietor, or 2) as a business entity such as a corporation, limited liability company, partnership or professional corporation, of which the examiner is a principal. If using a business entity, the examiner will sign on behalf of the business as the owner, managing member, or partner. If using a business entity for multiple examiners, Respondent must complete a separate Respondent Questionnaire for each examiner. In this instance, the business entity name should be indicated as the contracting entity.

· If Respondent is a sole proprietor doing business under an assumed name (d/b/a), please also list Respondent’s assumed name.

· If Respondent is a business entity, Respondent must provide a copy of Respondent’s business registration certificate from the Texas Secretary of State’s office.

· If Respondent is a business entity that uses an assumed name (d/b/a), this assumed name must also be on file with the Texas Secretary of State’s office, and Respondent must provide a copy of the assumed name registration for Respondent’s business entity.

Comptroller reserves the right to request records and additional information from Respondent to verify the information set out in this Respondent Questionnaire. Respondent understands that Comptroller’s acceptance and preliminary approval of the response to this RFQ is based on the knowledge, expertise, and suitability of the individual disclosed herein.

IMPORTANT:

· Each Respondent shall submit only one (1) Statement of Qualifications in response to this RFQ. Respondents who submit multiple Statements of Qualifications under different entity names or addresses will be subject to disqualification from further consideration.

· Respondents who have either been previously terminated from the independent examination program OR from Comptroller employment will be disqualified from further consideration.

· Comptroller, in its sole discretion, may disqualify or not recommend for an award of contract under this RFQ any Respondent whose contract for services with any entity was terminated or canceled prior to completion.

1. Examiner Identification Name of Examiner:

Name of Business Entity (if applicable):

Current Employer Name (if applicable): __________________________

2. Examiner Availability

Respondent will be able to work _____ hours per week on assignments under a contract from this RFQ.

Please note that deadlines, reporting requirements, and hours requirements for performance of the services as contained in the Sample Contract and the Statement of Work as set forth in Section 2.2 of this RFQ will be strictly enforced.

3. Examiner Geographic Availability (Note: Please respond to EITHER 1 or 2, not both)

1. Comptroller will award contracts resulting from this RFQ, in part, on the basis of the need for examination coverage in various geographic areas of the State of Texas. Comptroller reserves the right to evaluate Respondents for different geographic areas separately if necessary to achieve uniform coverage throughout Texas.

Please indicate below the areas in which you would prefer to work, by indicating specific office locations. Please see Exhibit G Comptroller Field Offices and Territorial Responsibilities for reference concerning Geographic Availability. Respondents must understand that the award amount for contracts resulting from this RFQ represents the total amount of compensation to be paid and no reimbursement of travel costs or other expenses will be made.

4. Examiner Education

In the spaces below, list the information concerning each degree earned from an accredited institution of higher learning.

Number of hours of intermediate accounting: _______________ Number of hours of auditing: ___________________________ Total number of accounting hours: ______________________

5. Examiner Certified Public Accountant Status

Are you a Certified Public Accountant? Yes _____ No _____.

Note: Examiner does not have to be certified to take and receive certified courses or credit.

Licensing State: _________________ License number: _____________.

If licensed as a Certified Public Accountant, have you been the subject of any disciplinary action before the State Board of Public Accountancy? Yes _____ No _____.

If Yes, please provide all details concerning such proceeding including date, charge, and final decision.

6. Examiner Continuing Professional Education (Use as many pages as necessary to report all applicable training) Instructions: Enter the exact number of hours obtained in each category. Do not leave blank, state “see attached” or enter an average or annual amount, or an estimate. Such entries will be treated as zero.

· Each training hour should only be counted once.

· Do not include courses completed for college or university credit.

· On the Addendum to Respondent Questionnaire attached, list each course included in the totals below, with date(s) attended, course provider, course title or subject, and number of hours of class time. Total hours completed should MATCH hours shown in Addendum.

· Failure to include the completed Addendum to Respondent Questionnaire attached with detailed listings of the required information may result in…