ESBD_508237_1776702237220_RFP 240k ACH Svcs 4-20-26.docx

TEXAS COMPTROLLER OF PUBLIC ACCOUNTS

Request for Proposals (RFP No. 240k) For Automated Clearing House Services

RFP 240k Automated Clearing House Services CPA CMD# 26-8303VR Page 9 of 57

TABLE OF CONTENTS

PART I

GENERAL INFORMATION

1.1 Introduction

The Texas Comptroller of Public Accounts (“Comptroller” or “CPA”) issues this Request for Proposals No. 240k (RFP) to solicit proposals from qualified financial institutions for Automated Clearing House (ACH) services. A “qualified financial institution” is defined as a financial institution that has been designated by Comptroller as a state depository according to the requirements and procedures set forth in Subchapters C and D in Chapter 404 of the Texas Government Code and the State Depository Handbook, available on the Comptroller’s website at: https://comptroller.texas.gov/programs/systems/depository-application.php.

All requisite services, which are more fully described in Part II (Scope of Work), are referred to as “Services” herein. Comptroller’s objective is to obtain Services that represent the best value for Comptroller and the state of Texas according to the terms and conditions of this RFP. Each firm submitting a response to this RFP (Proposal) shall be referred to as a “Respondent.” It is expected that this RFP will result in one award. The selected Respondent, if any, is hereinafter referred to as the “Successful Respondent.”

This RFP is not exclusive and CPA reserves the right to issue additional solicitations regarding the Services or similar services at any time.

All costs associated with the Services must be included in Respondent’s Proposal and Respondents are encouraged to offer their best pricing at all times. Proposals that do not meet all of the requirements or contain all of the required documentation specified in Part IV of this RFP may be rejected as non-responsive.

1.2 Background

As the state of Texas' chief financial officer, Comptroller has been paying the bills and keeping the books for Texas state government since 1835. Comptroller's Fiscal Management Division administers the Uniform Statewide Payroll/Personnel System (USPS) and the Standardized Payroll/Personnel Reporting System (SPRS) and the Centralized Accounting and Payroll/Personnel System’s (CAPPS) which process the payroll for all state of Texas employees. Fiscal Management also administers the Uniform Statewide Accounting System (USAS) and CAPPS Financials, which process all payments made by state agencies. These systems rely heavily upon Electronic Funds Transfer (EFT) and the ACH systems to issue payments electronically. While the Fiscal Management Division still issues warrants (i.e., checks) for many types of payments, the number of electronic payments increases annually and the use of ACH is actively promoted by Comptroller and the state of Texas.

In Texas, Comptroller has the responsibilities of the state treasurer, which includes consolidating the revenue collection and processing center for the state. Comptroller's Treasury Operations Division relies heavily on the ACH system to collect payments due to the state from citizens and businesses, as well as from local bank depositories. Information on the average volume and schedule for these electronic payments is included in Exhibit G, Tables 1 and 2.

Comptroller currently uses a legacy system and is seeking a new solution that is not a legacy system.

PART II

SCOPE OF WORK

2.1 Service Description

Successful Respondent will provide a solution that is not a legacy system.

A. Definitions and Acronyms.

Prenotification Entry:

ACH Entry with a zero-dollar amount used to prove the accuracy and the adequacy of the information provided by the Receiver and to test the RDFI's ability to accept the ACH Entry and to provide notice to the RDFI that the Originator intends to originate one or more entries to the Receiver's account in accordance with the Receiver's authorization

B. Architecture and Telecommunications. Comptroller provides fully formatted ACH files to the current ACH services ODFI for payments originating from Comptroller. The data transmission architecture for daily transfer of the file must conform to the following requirements:

1. Configurations. Successful Respondent must provide a Secure FTP via a TCP/IP communications link to allow Comptroller to transmit encrypted Input Files to Successful Respondent's data communications center. Secure FTP is the only data transfer method allowed, using file level security that supports the following encryption protocols:

Successful Respondent must have a method for establishing such a communications link to transmit encrypted Input Files to Successful Respondent's data communications center. All costs associated with the communications link will be at Successful Respondent’s expense.

2. Telecommunications Requirements. Successful Respondent must be able to accommodate the following:

a. Fiscal Management. Comptroller’s Fiscal Management Division shall utilize the agreed upon communications link to transmit the Input Files to Successful Respondent multiple times a day. Some files are submitted three (3) business days prior to Settlement Date. Some files are submitted two (2) business days prior to Settlement Date. Some files are submitted one (1) business day prior to Settlement Date. ACH files may be added, modified, suspended, or discontinued during the term of the Contract, including adjustments to file characteristics and submission or settlement dates, based on business operational needs.

b. Treasury Operations. Comptroller’s Treasury Operations Division shall commence three (3) transmissions of the Input Files multiple times a day. Some files are submitted two (2) business days prior to Settlement Date. Some files are submitted one (1) business day prior to Settlement Date. One file is submitted for same day Settlement. ACH files may be added, modified, suspended, or discontinued during the term of the Contract, including adjustments to file characteristics and submission or settlement dates, based on business operational needs.

c. Participating State Agencies. The delivery of Input Files will be by Comptroller for all Participating State Agencies.

C. General ACH Requirements.

1. Successful Respondent shall originate ACH entries in standard ACH format in accordance with the most recent edition of Nacha’s “Operating Rules and Guidelines,” including payment formats that may be accompanied by addenda records utilizing payment related ANSI X12 EDI/FEDI transactions sets or data segments in EDI Format 820 Version 3040, Version 4010, and Version 4020 (up to 7040), or any future upgraded version that is supported by Nacha’s “Operating Rules and Guidelines.”

2. Successful Respondent must have security procedures and policies (such as data encryption and message authentication for data transmission, physical security of alternative backup method, access controls, accountability, risk management, personnel security, vulnerability management and testing, etc.) to ensure the integrity, confidentiality, and availability of the Originator's ACH files.

As soon as possible after the Effective Date, Successful Respondent will be required to supply a complete set of policies, standards and guidelines to ensure the confidentiality, integrity, and availability of the Originator’s ACH files. Successful Respondent may include applicable industry specific guidelines, such as GLBA, Red Flag, SOX, etc.

3. Successful Respondent must provide an additional, secure internet-based ACH origination solution along with the primary file origination method.

4. For each type of ACH origination (i.e., file transmission or internet based) submitted, Respondent must have procedures to verify the correctness of files received by such media. Respondent must have a process for acknowledgement, confirmation, and release of the Originator’s ACH files. Respondent must also have its error and exception management procedures, including an explanation of how errors are identified, communicated, and resolved, the method(s) of notification, applicable escalation protocols, and the service level timeframes for acknowledgment and error notification following file receipt.

5. Successful Respondent must have the capability to receive ACH files via either secure data transmission or alternate backup method provided by Successful Respondent. Successful Respondent must have the ability to provide and maintain a secure transmission using Secure FTP.

6. Successful Respondent must have at least one back-up method for secure data transmission. In the event normal secure data transmission proves impracticable at any time, Comptroller shall generate files containing the ACH Entries to be delivered to Successful Respondent via secure data transmission or an alternative internet-based backup method provided by Successful Respondent.

7. Successful Respondent must have current continuity plan in the event Respondent is unable to originate or receive ACH transactions. The plan should include the distribution of credit/debit returns and NOCs.

8. Successful Respondent must transmit all return items and NOCs in standard ACH format to Comptroller once each Business Day by 8:00 a.m. CT via file transmission.

9. Successful Respondent must have processes to trace ACH entries, which should include Comptroller’s daily access to Successful Respondent’s file that has the assigned ACH trace numbers for the originated ACH entries.

10. Successful Respondent must provide Comptroller with a monthly file containing specific financial institution information. The information in the file must originate from Federal Reserve data and contain all active ABA routing numbers, ACH formats per financial institution, institution names, street addresses, ACH contact names and telephone numbers, and Electronic Data Interchange (EDI) contact names and telephone numbers. Files will be sent in accordance with Section 2.1.B.

11. Successful Respondent must have the ability to receive and confirm receipt of files in an electronic method on each transmittal and on banking holidays that are not also state of Texas holidays. Occasionally Comptroller, in its reasonable discretion, may request that Successful Respondent process such files for next-day settlement.

12. Successful Respondent must have a clear method and timeline for notifying Comptroller of any unusual circumstances that would result in a delay of any deliverable.

13. Successful Respondent must have the ability to reduce returns such as Notification of Change data, by correcting transactions before they are processed through the ACH network.

14. Successful Respondent must have a process for submitting reclamation requests and the retention period maintained by Successful Respondent for transmitted payments eligible for reclamations.

15. Successful Respondent must have a process for submitting recall requests related to any ACH transaction (reimbursement agreement).

16. Successful Respondent must have a process for disputing return items related to any ACH transaction.

17. Successful Respondent must have a process for crediting Comptroller funds received from successful reversals.

18. Successful Respondent must have account validation capabilities, including supported validation methods (e.g., file-based transmission, secure portal, API integration, or other available options).

19. Successful Respondent must have fraud alerting, payment validation, and exception handling procedures for ACH transactions. Successful Respondent must have a process to identify transactions for review and communication to Comptroller, whether such transactions are held pending validation, expected response timeframes, and the controls governing payment release or rejection. Successful Respondent must also maintain a process for notifying Comptroller of irregular or anomalous activity, including, but not limited to, unusual transaction frequency, high dollar amounts, or repeated returns.

20. Successful Respondent must monitor Nacha Operating Rules and Guidelines for new or amended requirements and must promptly notify the Comptroller of such changes. Successful Respondent must also provide guidance and recommendations necessary for the Comptroller to maintain ongoing compliance with Nacha. Successful Respondent must provide the Comptroller with both physical and electronic copies of the Nacha Operating Rules and Guidelines annually.

21. Successful Respondent must monitor ACH-related fraud trends and emerging risks and must promptly notify the Comptroller of relevant developments.

D. ACH Credit Processing Procedures.

The Comptroller and Participating State Agencies originate ACH credit entries for the programs listed in Exhibit G, which includes applicable file details and settlement schedules.

1. Successful Respondent must accept ACH credit entries from Originator. Originator will provide ACH credit entries in standard ACH format to Successful Respondent via secure data transmission by the mutually agreed upon deadline.

2. Successful Respondent must provide validation and verification procedures to ensure accuracy, completeness, and validity of files received. Successful Respondent must provide electronic acknowledgement of receipt and transmit verification results within a reasonable and specified time from transmission. Successful Respondent must also provide timely notification of any file errors, rejections, or required corrections, including sufficient details to allow for remediation.

3. Successful Respondent must originate the ACH credit entries. Comptroller shall transfer into a Comptroller account at the Qualified Financial Institution funds equal to the total amount of ACH credits originated by the Qualified Financial Institution no later than 8:30 a.m. CT on the Settlement Date. ACH credit entries may be processed or posted earlier on the settlement date; however, funds will be available in the designated account no later than 8:30 a.m. CT on the settlement date. In the event of a delay, Comptroller shall promptly notify Successful Respondent.

4. Successful Respondent shall only accept ACH Reversals, Reclamations and Written Demands for Payment directly from Comptroller for ACH credit entries originated by Comptroller. Comptroller does not honor state agencies’ request to send Letters of Indemnification to their Receivers’ RDFIs. Successful Respondent shall not accept or coordinate Letters of Indemnification with any state agency other than Comptroller for ACH entries originated by Comptroller.

5. Successful Respondent must provide Comptroller with day-to-day actual origination information to trace non-posted ACH credit entries no later than two (2) Business Days after origination. Origination information must be provided electronically and include file identification, file date and time, trace number per transaction and the total number and dollar amounts of credits and debits.

E. ACH Debit Processing Procedures

1. Originator will provide Successful Respondent with a schedule of planned ACH origination and settlement dates. The Comptroller and Participating State Agencies originate ACH debit entries for the programs listed in Exhibit G, which includes applicable file details and settlement schedules.

2. Originator will provide ACH debit entries in standard ACH format to Successful Respondent via secure data transmission by the mutually agreed upon deadline.

3. Successful Respondent must provide validation and verification procedures to ensure accuracy, completeness, and validity of files received. Successful Respondent must provide electronic acknowledgement of receipt and transmit verification results within a reasonable and specified time from transmission. Successful Respondent must also provide timely notification of any file errors, rejections, or required corrections, including sufficient details to allow for remediation.

4. Successful Respondent must originate the ACH debit entries.

5. Between 9:00 a.m. and 1:00 p.m. CT on the Settlement Date, the Comptroller may wire transfer the total credit offset amount out of the Comptroller’s account with the Successful Respondent.

F. Deliverables

Successful Respondent shall provide all deliverables in compliance with all requirements of this RFP and the resulting Contract, including all Standards of Performance. Upon Successful Respondent’s completion of each deliverable, Comptroller shall, in its sole discretion, evaluate Successful Respondent’s performance; and provide Successful Respondent with written notice of acceptance or rejection of each deliverable.

The minimum deliverables are summarized in the following chart:

Required Date of Completion

Deliverables

Minimum Standards of Performance

G. Performance Criteria

1. Final Work Plan

The Contract will include the final version of the Work Plan. The Work Plan must include, at a minimum, a description of all tasks and timelines for all Services.

Successful Respondent and all subcontractor(s) will meet with Comptroller as soon as possible after the Contract award. The purpose of this meeting is to modify and/or clarify the preliminary Work Plan included in Successful Respondent’s Proposal to ensure the successful transition of ACH services, and to provide the framework for ongoing ACH services. Performance expectations and communication strategies among the Comptroller, the Successful Respondent, and subcontractors will be included.

The Work Plan becomes final when Comptroller and Successful Respondent approve and sign off on all elements of the written Work Plan.

The minimum Standards of Performance for the Work Plan are:

a. The Work Plan must include planned activities and timelines that are comprehensive and include viable strategies and methodologies that will lead to the successful delivery of all ACH Services;

b. The Work Plan must elaborate on the requirements set forth in Part II, Section 2.1.C (General ACH Requirements) as to the version levels the Successful Respondent is capable of processing;

c. The Work Plan must provide all necessary edit requirements other than ACH standards;

d. The Work Plan must provide all header, trailer, and blocking record formats and requirements other than ACH standards;

e. Successful Respondent and all subcontractor(s) must attend meetings in Austin with the Comptroller to complete and agree to all Work Plan elements;

f. The Work Plan must include a transition of operations plan; and

g. The final Work Plan must be approved in writing by Comptroller and Successful Respondent project managers.

In addition to the minimum Standards of Performance for the Work Plan, it shall meet additional standards proposed by the Successful Respondent in its Proposal and accepted by Comptroller in the Contract.

2. Monthly Activity Reports

Throughout the project, Successful Respondent must keep Comptroller informed about its activities through regular written and electronic reports. Unless otherwise requested by Comptroller, Successful Respondent must submit these reports to Comptroller’s Project Managers monthly.

The minimum Standards of Performance for monthly activity reports are:

a. A report containing the number of ACH items and total dollar amounts processed through the ACH system for each company identification number; and

b. A report containing any difficulties or special problems, and planned remedies.

In addition, Successful Respondent shall meet additional standards proposed by Successful Respondent in its Proposal and accepted by the Comptroller in the Contract.

3. Monthly Invoices; Payments

Each month, Successful Respondent shall submit a detailed ACH activity statement to the Treasury Accounting Section in Comptroller’s Treasury Operations Division. The statement shall be in a EDI 822 format and contain the number of ACH Entries originated for each Originator, all other ACH-related services provided by the Successful Respondent to each Originator, and the resulting charges. There shall be no other fees, miscellaneous or otherwise, charged by Successful Respondent for the ACH services provided herein. Comptroller may authorize payments to the Successful Respondent under the Contract as further described in the Sample Contract.

H. Marketing/Advertising Plan

At no cost to Comptroller, Successful Respondent shall meet with Fiscal Management staff upon request to discuss marketing trends, strategies and Comptroller’s direct deposit marketing materials.

Successful Respondent shall:

a. Provide direct deposit marketing strategies utilized by Successful Respondent;

b. Collaborate on direct deposit marketing materials based on marketplace trends;

c. Provide industry cost comparison analysis of payment types; and

d. Participate in Fiscal Management’s focus group meetings upon request to discuss direct deposit marketing trends and topics relevant to state agencies.

I. Training

Successful Respondent must provide training and educational resources to Comptroller and other Participating State Agencies, including webinars or similar sessions on an as-needed basis, with preferred minimum frequency of two sessions per year. Successful Respondent will provide training to ensure Comptroller personnel can perform ACH origination, file transmission, and related functions. Successful Respondent shall provide supporting documentation, including user guides and reference materials in electronic format for ongoing use. Training should address the following, but is not limited to:

· Secure data transmission procedures

· Access to and use of the internet-based ACH origination solution

· Use of any backup secure transmission method provided

· Creation, validation, submission, and release of ACH files

· Error resolution and exception handling

PART III

GENERAL INFORMATION

3.1 Authority

This RFP is issued pursuant to Chapters 403, 404 and 2156 of the Texas Government Code.

3.2 Comptroller Rights

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

3.3 Respondent Obligations

Respondents to this RFP are responsible for any expense related to the preparation and submission of a Proposal. Comptroller shall not pay for any cost that is incurred by Successful Respondent prior to the Effective Date. Qualified firms with the requisite experience are invited to submit Proposals in accordance with this RFP. Proposals must address all specifications.

3.4 Successful Respondent Obligations

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

3.5 Schedule of Events

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

April 20, 2026 - Issuance of RFP (after 10:00 a.m. CT)

April 28, 2026 - Deadline for Submission of Questions (2:00 p.m. CT)

July 1, 2026 - Contract Execution (or as soon thereafter as practical)

July 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 of Texas holidays. All deadlines are subject to change at Comptroller’s sole discretion.

Notices of changes to items directly impacting the original RFP or proposal process will be posted on the ESBD at: http://www.txsmartbuy.gov/esbd. Any amendment to this solicitation will be posted as an addendum on the ESBD. It is the responsibility of interested parties to periodically check the ESBD for updates to the procurement prior to submitting a Proposal. Respondent’s failure to periodically check the ESBD for updates will in no way release Successful Respondent from compliance with any requirements in the “addenda or additional information,” even if such compliance results in additional costs to meet the requirements.

3.6 Issuing Office

Comptroller, through its Contracts Section, is the Issuing Office and the sole point of contact for this RFP. The Contracts Section is the only office authorized to clarify, modify, amend, alter, or withdraw the specifications, terms, and conditions of this RFP and any contract awarded as a result of this RFP. Upon issuance of this RFP, other employees of Comptroller shall not answer questions or otherwise discuss the contents of this RFP with any Respondents or their representatives. Failure to observe this restriction may result in disqualification of any pending or subsequent Proposal. This restriction does not preclude discussions unrelated to this RFP or questions relating to completing the VetHUB documents required in Section 4.2.M. Except as otherwise indicated, all communications concerning this procurement must be in writing and addressed to the Issuing Office as follows:

Vicki L. Rees E-mail: contracts@cpa.texas.gov

3.7 Submission of Questions

Respondents may submit questions by email to the Issuing Office no later than 2:00 p.m. by the deadline set forth in the Schedule of Events. Questions concerning this RFP must be in writing and addressed to the Issuing Office at the above email address. 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 located at: http://www.txsmartbuy.gov/esbd.

3.8 Deadline for Submission of Proposals; Delivery Instructions; Number of Copies Required

One electronic copy of the Proposal in searchable PDF format must be submitted to the email address in Section 3.6 (Issuing Office). The electronic copy must be received in the Issuing Office no later than 2:00 p.m. on the deadline set forth in the Schedule of Events. The email must be labeled with “RFP No. 240k Automated Clearing House Services” and include the name and address of Respondent in the body of the email.

Late Proposals will not be considered under any circumstances.

Respondents are solely responsible for verifying Comptroller’s receipt of all Proposals by the deadline specified above. Comptroller shall not be liable or responsible for any costs whatsoever incurred in submission of a Proposal.

Faxed Proposals are not acceptable and will not be considered.

Due to changed building access restrictions, Respondents will not be permitted to hand deliver Proposals. Respondents are required to submit Proposals electronically.

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

Under Section 322.020 of the Texas Government Code, the Legislative Budget Board (LBB) has implemented a database of State agency contracts. (See the LBB website at www.lbb.texas.gov.) Comptroller will upload to the LBB’s contract database the text of the complete Contract, including Successful Respondent’s Proposal (with limited redaction and appendix) after the date of Contract award. In submitting a Proposal, Respondent acknowledges that it understands and accepts this requirement.

3.9 Confidential Information; Nondisclosure; Open Records

All information gathered, produced, derived, obtained, analyzed, controlled or accessed by Respondent in connection with a Contract (Confidential Information) shall be and remain Confidential Information and shall not be released or disclosed by Respondent without the prior written consent of Comptroller. Such consent must specifically identify the Confidential Information allowed to be disclosed by Respondent and the nature of the disclosure allowed. Respondent must execute and return with its Proposal a Nondisclosure Agreement with Comptroller, in the form of Exhibit E attached hereto.

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

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

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

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

3.10 Media Releases

Comptroller does not endorse any vendor, commodity, or service. Media releases pertaining to this RFP, the Contract, or the Services to which they relate shall not be made without the prior written consent of Comptroller and then only in accordance with explicit written instructions from Comptroller. The disclosure of the contents of Proposals prior to the award of the Contract, if any, or any other violation of this section, may result in disqualification.

3.11 Non-exclusivity

This RFP is not exclusive, and Comptroller reserves the right to issue additional solicitations regarding the Services or similar services at any time.

3.12 Term of Contract; Sample Contract

A. Term of Contract

If a Contract is awarded, the initial term of the Contract shall begin upon the later of July 1, 2026 or Comptroller’s execution of the Contract, after having first been executed by Contractor (Effective Date) and terminate August 31, 2029, unless otherwise terminated as provided in the Contract. In accordance with the terms of the Contract, Comptroller has the option, in its sole discretion, to extend the Contract for one (1) additional period through August 31, 2030.

Comptroller, in its sole discretion, may extend the Contract for six (6) months following the expiration of the last period of renewal or for such additional time as Comptroller deems necessary to secure and transition to a new contract. Notwithstanding the termination or expiration of the Contract, the provisions of the Contract regarding confidentiality, indemnification, payments, records, data safeguards, and dispute resolution shall survive the termination or expiration dates of such Contract.

B. Sample Contract

The Contract shall be based on the Sample Contract included as Exhibit A and shall incorporate this entire RFP. The Sample Contract includes boilerplate provisions, and Comptroller reserves the right, in its sole discretion, to make a contract award without negotiating these provisions. In the event Comptroller requires negotiations with Respondents, any modifications or clarifications agreed to with Successful Respondent during contract negotiations shall also be incorporated into the final, executed Contract. Each Respondent must review the terms and conditions in Exhibit A and otherwise in this RFP and must address any concerns or issues in its transmittal letter. Terms and conditions not specifically objected to in the transmittal letter will be deemed to be accepted by Respondent. Comptroller has final approval of any Contract awarded. Comptroller reserves the right, in its sole discretion, to modify the terms and conditions of the Sample Contract in the best interests of the state of Texas prior to signature by the parties. Notwithstanding any exceptions or any other provision of Respondent’s Proposal to the contrary, Successful Respondent shall indemnify Comptroller and the state of Texas, as specified in the Sample Contract. The state of Texas, Comptroller, and their respective employees, officers, agents, and representatives, will not indemnify Successful Respondent for any amount for any purpose, and any provisions to the contrary are void.

C. Transition In and Out.

Successful Respondent must follow a transition-in plan approved by Comptroller that includes its strategy for assuming the responsibilities currently performed by the existing service provider with minimal disruption to Comptroller’s operations.

Upon termination or expiration of the Contract for any reason, Successful Respondent shall, in good faith and with full cooperation, assist (as needed) in developing and agree to a transition-out plan and aid in the timely and secure transition to any arrangement or provider in accordance with Section 8.5 of the Exhibit A (Sample Contract).

All proposed transition plans and transition activities shall be reviewed and approved by Comptroller prior to Successful Respondent’s implementation of a transition plan. Comptroller expects Successful Respondent to coordinate transition-in and transition-out plans with the current vendor and with any subsequent vendor.

3.13 Subcontractors

Successful Respondent may subcontract for Services with Comptroller's prior written approval of each such Subcontract and Subcontractor. Successful Respondent shall be solely responsible to Comptroller for the performance by each of the Successful Respondent’s Subcontractors, each of whom must have a minimum of three (3) years of experience in providing their specific Service(s). Successful Respondent must disclose any changes in the legal nature of relationship between Successful Respondent and its Subcontractors. In no event shall any provision of this Section, including, but not limited to, the requirement that Successful Respondent obtain the prior approval of Comptroller on Successful Respondent’s Subcontracts, be construed as relieving Successful Respondent of the responsibility for ensuring that all Services rendered under its Subcontracts comply with all the terms and provisions of this RFP and the Contract as if they were rendered by Successful Respondent.

Unless waived by the Comptroller, Successful Respondent shall furnish Comptroller with copies of all proposed amendments, assignments, cancellations or terminations of Subcontracts no later than thirty (30) days prior to the proposed effective date of such contracts, amendments, assignments, cancellations or terminations. Whenever administratively feasible, Comptroller shall use best efforts to approve or disapprove proposed Subcontracts within fourteen (14) business days. Successful Respondent must notify Comptroller of any proposed changes in Subcontractors and obtain Comptroller’s preapproval of any changes in Subcontractors.

Successful Respondent is responsible for monitoring and resolving performance issues with its Subcontractors.

3.14 Limitation of Authority

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

3.15 Certificate of Interested Parties

Successful Respondent must complete the Form 1295 Certificate of Interested Parties (located on the Texas Ethics Commission website at https://www.ethics.state.tx.us/filinginfo/1295/) for contracts with a value of $1 million or more. If the total value of the Contract over the full Contract Term will be $1 million or more, Successful Respondent must submit to the agency a completed and signed form with the certificate number and date before the Effective Date.

3.16 Incorporation of Exhibits

Exhibits A, B, C, D, E, F , G, H, and I are attached hereto and incorporated as part of this RFP for all purposes.

PART IV

PROPOSAL FORMAT

4.1 Introduction

Each original Proposal and copy shall contain a cover sheet with the following: “RFP No. 240k Automated Clearing House Services” and the name and address of Respondent. The Proposal must contain an organized, paginated table of contents with hyperlinks corresponding to the sections and pages of the Proposal. Pages must be numbered consecutively.

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

ALL EXHIBITS TO THIS RFP ARE PREPARED EXCLUSIVELY FOR THIS RFP. RESPONDENT’S SUBMISSION OF OTHER EXHIBITS OR DOCUMENTS, INCLUDING PRIOR RFP EXHIBITS, MAY RESULT IN DISQUALIFICATION OF THE PROPOSAL.

4.2 Proposal Minimum Requirements and Organization

Proposals must include the following and be organized as follows:

A. Transmittal Letter;

B. Executive Summary;

C. Table of Contents;

D. Respondent Identifying Information;

E. Proposed Subcontractor(s) Identifying Information;

F. Respondent Narrative;

G. Respondent Proposed Work Plan;

H. Respondent’s and Proposed Subcontractor(s)’ Qualifications and Experience;

I. Respondent’s and Proposed Subcontractor(s)’ Proposed Personnel;

J. Proposed Fee;

K. Insurance;

L. Execution of Proposal;

M. Veteran Heroes United in Business (Vet HUB) Subcontracting Plan;

N. Criminal Conviction Certification;

O. Nondisclosure Agreement;

P. Conflict of Interest Statement; and Q. Certification Regarding Public Nature of the Proposal.

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

4.2.A Transmittal Letter

Respondent must submit a transmittal letter that identifies the entity submitting the Proposal and includes a commitment by that entity to provide the Services required by Comptroller. The transmittal letter must state that the Proposal is valid for one hundred eighty (180) days from the deadline for delivery of Proposals to Comptroller. Any Proposal containing a term of less than one hundred eighty (180) days for acceptance from this deadline will be rejected as non-responsive.

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

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

Respondents are strongly encouraged to submit any inquiries regarding specific terms or conditions of this RFP during the question-and-answer period designated in Section 3.7 (Submission of Questions).

4.2.B Executive Summary

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

4.2.C Table of Contents

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

4.2.D Respondent Identifying Information

Respondent must provide the following identifying information:

1. name and address of business entity submitting the Proposal;

2. names of all principals;

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

4. state of incorporation or organization and principal place of business;

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

6. name, address, business telephone number, cell phone number, email address, and…