ESBD_510442_1779307098263_RFO 304-26-0731KG Phire Software Subscription.pdf

RFO # 304-26-0731KG Phire Software Subscription Page 1 of 44 Rev. 9/8/2023

Texas Comptroller of Public Accounts

Request for Offers Phire Software License and Related Services

RFO No. 304-26-0731KG

5/20/2026

Anticipated Schedule of Events

May 20, 2026 Issuance of RFO

May 26, 2026 Deadline for Submission of Questions (2:00 p.m., CT)

May 29, 2026 Release of Official Responses to Questions (or as soon thereafter as practical)

June 3, 2026 Deadline for Submission of Offers (2:00 p.m. CT) Late Offers will not be considered

July 1, 2026 Services Commencement Date (or as soon thereafter as practical)

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Table of Contents

I. Summary II. Specifications

A. Introduction B. Background C. Definitions and Acronyms D. Scope of Services E. Contract Resulting From This Solicitation; Order of Priority F. Warranty of Performance G. Security Incident Notification H. Insurance and Bonds I. Criminal Background Investigation J. Contract Term K. Invoice Acceptance Criteria L. Payments M. Discounts N. PO Addition and Deletion O. VetHUB Subcontracting Plan Information P. Respondent Documents Q. Respondent Exceptions R. Respondent’s Past Performance

III. Offer Submission Requirements A. Delivery of Offer B. Offer Content and Format

IV. Mandatory Price Sheet V. Standard Terms and Conditions VI. Execution of Offer VII. Conflict of Interest/Disclosure Statement VIII. Nondisclosure Agreement IX. Confidential Treatment of Information Acknowledgment X. Certification Regarding Public Nature of the Offer XI. Respondent Exceptions Response Template

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I. Summary

1. Type of Solicitation: Request for Offers (RFO)

2. Issuing Office: Texas Comptroller of Public Accounts (CPA) Procurement Section Room 300, Attn: RFO No. 304-26-0731KG 111 E. 17th Street Austin, Texas 78774

OR Texas Comptroller of Public Accounts Procurement Section Attn: RFO No. 304-26-0731KG P.O. Box 12050 Austin, Texas 78711-2050

3. Additional Requirements/Qualifications: N/A

4. Responses to RFO: Sealed Competitive Offers

5. Deadline for Offers: In Issuing Office No Later Than:

June 3, 2026; 2:00 p.m., Central Time (CT)

6. Initial Contract Term: July 1, 2026 to August 31, 2027

7. CPA Optional Contract Terms: September 1, 2027 through August 31, 2028 September 1, 2028 through August 31, 2029 and September 1, 2029 through August 31, 2030

8. CPA Contact Person for this RFO: Kristy Guevara, Email: kristy.guevara@cpa.texas.gov

9. Offers Submitted by Email: Required; See Section III, Part A

10. Offers Submitted by Fax: Not Accepted

11. Pre-Offer Conference: N/A

12. Pre-Offer Inspection: N/A

13. Letters of Intent to Submit an Offer: N/A

14. RFO Addenda: Notices of changes to items directly impacting the original RFO or solicitation process will be posted on the Electronic State Business Daily (ESBD) located at: http://www.txsmartbuy.com/esbd. CPA will post any amendment to this solicitation on the ESBD as an RFO Addendum. It is the responsibility of an interested party to check the ESBD for updates to this RFO before submitting an Offer. Each Respondent is solely responsible for verifying CPA’s receipt of its questions, if applicable, and its Offer by the deadlines specified in this RFO.

15. Questions and Answers: Questions regarding this RFO must be in writing and must be submitted to the CPA Contact Person specified in Part 8, no later than May 26, 2026; 2:00 p.m. CT. Telephone inquiries will not be accepted.

Questions may be submitted by email to the email address specified in Part 8. CPA intends to post answers to the questions received on the ESBD on May 29, 2026, or as soon thereafter as practical.

16. Respondent Presentations: N/A mailto:kristy.guevara@cpa.texas.gov http://www.txsmartbuy.com/esbd

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17. Evaluation of Offers. Offers will be evaluated under the Best Value Standard (Section 2157.003 of the Texas Government Code):

Criteria Weight Respondent’s Past Performance, Qualifications & Experience 20% Compliance with CPA Specifications 50% Cost 30% Total: 100%

As applicable, the factors listed in Sections 2155.074, 2155.075, 2156.007, and 2157.003 of the Texas Government Code shall also be considered in making an award.

18. Electronic Offers Only. Due to changed building access restrictions, Respondents will not be permitted to hand deliver

Offers to the Issuing Office. Respondents are required to submit Offers electronically via email in accordance with Section III, Part A.

19. Contact with CPA Staff: Upon issuance of this RFO, employees and representatives of CPA, other than the CPA Contact

Person identified in Part 8, will not discuss the contents of this RFO with any Respondent or its representatives. Failure of a Respondent or any of its representatives to observe this restriction may result in disqualification of any related Offer. This restriction does not preclude discussions between the parties to conduct business unrelated to this procurement or to obtain assistance completing Veteran Heroes United in Business (VetHUB) forms required by this RFO.

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II. Specifications

A. Introduction

The Texas Comptroller of Public Accounts (CPA), an agency of the State of Texas, issues this Request for Offers (RFO) to solicit Offers from qualified vendors for Phire Software License and Related Services, as described in this Section II and in this RFO (“Services”). CPA’s objective is to obtain the Services that represent the best value for CPA and the State of Texas, according to the terms and conditions of this RFO.

CPA anticipates making a contract award to one (1) Successful Respondent for the Services. CPA reserves the right not to award a Contract for the performance of all or part of the Services. This RFO is not exclusive, and CPA reserves the right to issue additional solicitations regarding the Services or similar services at any time. All Respondents are encouraged to offer their best pricing at all times.

All costs associated with the Services must be included in the Respondent’s Offer. Offers that do not meet all of the requirements or contain all of the required documentation specified in this RFO may be rejected as non-responsive.

CPA understands that the requested items in this RFO may be proprietary to one vendor under Section 2155.067 of the Texas Government Code; however, CPA strongly encourages Offers from all qualified Respondents that may be able to provide the Services.

B. Background

CPA’s Information Technology Division, IT Application Service Treasury section, uses Phire to manage application changes across development, testing, and production environments within the PeopleSoft application. CPA has identified a continuing need for the Phire Software License and Related Services used by CPA and seeks to meet this need through a contract resulting from this RFO.

C. Definitions and Acronyms

• Award Date. The Award Date is the earlier of the date an authorized representative of CPA (1) issues a Purchase Order (“PO”) or (2) signs a formal, written agreement.

• ACM. Application Change Management.

• COBOL. Common Business-Oriented Language.

• CPA. Texas Comptroller of Public Accounts.

• CPA Contract Manager. The end-user division contact responsible for day-to-day contact with Successful Respondent; contact details to be provided by CPA after the Award Date and/or in the Contract.

• Contract. The agreement, if any, described in Section II, Part E (Contract Resulting from this Solicitation/Order of Priority).

• Enterprise Subscription License. A comprehensive software agreement allowing an entire organization—rather than individual users—to use a software product across all company branches, locations, or devices.

• IP Rights. All intellectual property rights, including copyrights, patents, trade secrets, trademarks, and other proprietary rights that are embedded in or used in connection with the Licensed Software and the Licensed Software Documentation.

• Licensed Software. The version of the software application(s) provided by Successful Respondent under the Contract and any released Software Upgrades, Software Updates, Software Enhancements/Releases, Software Patches/Fixes, Error Corrections, Configurations and Customizations, as applicable, of such version(s).

• Licensed Software Documentation. The complete set of operating manuals necessary to enable CPA to properly install and use the Licensed Software, including but not limited to all updates, revisions, and corrections to the manual.

• Offer. A response to this RFO.

• Respondent. Any person or entity that submits an Offer to this RFO.

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• Software Enhancement/Release. A change to a software application, intended to increase functionality, productivity, compatibility, and/or improve the user interface.

• Software License(s) and Related Services (Services). All of the Licensed Software, Software Maintenance and Technical Support Services, Licensed Software Documentation, and other items listed in this PR. The Services must include, but not be limited to, fees, shipping, freight handling, and any other services associated with Successful Respondent’s performance under the Contract.

• Software Patch/Fix. Addition to a piece of code, usually as an immediate remedy to an existing software application error or defect. A Software Patch/Fix is usually a temporary measure until a more permanent solution is implemented with a Software Enhancement/Release and/or version update.

• Software Update. Any (a) commercially available versions of the Licensed Software with a version number designated to the right of the decimal point such as 1.1, 1.2, 1.3, etc., and (b) any subsequent variation of the Licensed Software which provides essentially the same functionality and accomplished substantially the same tasks as the Licensed Software but which the software publisher releases under a different name or label.

• Software Upgrade. A commercially available newer version of the Licensed Software typically designated by the number to the left of the decimal point such as 1.0, 2.0, 3.0, etc.

• SQR. Structured Query Reporter.

• Subscription License. A software fee and payment model in which customer pays provider a fee applicable to a specified contract term length for the customer’s rights of access to and use of the software application(s), with such fee also including provider’s delivery of Software Maintenance and Technical Support Services throughout the applicable contract term at no additional charge.

• Successful Respondent. The Respondent awarded a Contract.

D. Scope of Services

D.1. General

a) Respondent’s pricing in Price Schedule 1, Section IV (Mandatory Price Sheet) must include all costs associated with Respondent’s complete solution, including all Licensed Software.

b) Successful Respondent shall provide to CPA (i) all Software License and Related Services listed in Price Schedule 1, Section IV (Mandatory Price Sheet) of this RFO.

D.2. Requirements

a. Licensing Requirements: CPA will consider Subscription License(s) for an Application Change Management (ACM) solution.

1. Provide an Enterprise Subscription License model that accommodates an unlimited number of named and/or concurrent users.

2. Support a single installation servicing multiple PeopleSoft environments.

3. Include vendor maintenance, upgrades, patches, and technical support within the subscription.

b) Technical Requirements: The proposed solution must be fully compatible with CPA’s existing technical environment.

1. PeopleSoft Application

a. PeopleSoft Financials (Treasury)

b. PeopleTools version 8.5x or higher

c. Support for Application Designer projects, PeopleCode, SQR, App Engine, COBOL, Integration Broker objects, and security objects.

2. Infrastructure

a. Windows Server 2019 or higher

b. Linux (RedHat/Oracle Linux)

c. Oracle Database

d. Web-based browser access

3. Deployment Model

a. Support for on-premises deployment within CPA data center

b. Ability to integrate with cloud-hosted environments if required in the future

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c) Functional Requirements: The solution must be a PeopleTools-based ACM tool and must provide, at a minimum, the following capabilities:

1. Change Management & Migration

a. Automated migration of PeopleSoft projects between environments

b. Object-level comparison and impact analysis

c. Version control and rollback capability

d. Audit trail of all migrations and approvals

2. Security & Controls

a. Role-based access controls

b. Segregation of duties enforcement

c. Approval workflow with configurable routing

d. Logging of user activity

e. Support for multi-factor authentication integration (if applicable)

3. Compliance & Audit

a. Full audit trail reporting for object changes (migration history, approvals, emergency changes) to support internal audit and external compliance requirements

b. Exportable audit reports in the following file formats (PDF/Excel)

c. Reduction of manual migration risk, including object overwrites, incomplete promotions, and restore failures

4. Release Management

a. Ability to migrate small fixes as a bundled package

b. Ability to document workflow process and management.

c. Ability for Emergency migration

5. Integration

a. Integrate with CPA identity management (Active Directory/Single Sign-On)

b. Support integration with IT Service Management tools (e.g., ServiceNow) if required

c. Provide APIs or supported integration methods for automation

D.3. Licensed Software; Software Maintenance and Technical Support Services

a) License Grant.

1) Successful Respondent acknowledges that CPA is an agency of the State of Texas and CPA’s business operations include any activities consistent with its statutory authority.

2) Under the Contract, Successful Respondent grants CPA a non-exclusive, universal license to the IP Rights for the purposes of (1) using, displaying and performing the Licensed Software in connection with CPA’s network; and (2) using, displaying and performing the Licensed Software in connection with backup and disaster recovery procedures in the event of destruction or corruption of the Licensed Software or disasters or emergencies which require CPA or any of its affiliates to initiate disaster recovery procedures. CPA shall not permit any Licensed Software to be used by any other person, except for employees, agents, consultants, outsourcing companies, and contractors who need to use the Licensed Software in the performance of their duties for CPA and who are authorized and enabled by CPA to access and utilize the Licensed Software.

b) Licensed Software Documentation.

1) Successful Respondent shall provide to CPA at least one (1) copy of the Licensed Software Documentation via online or hardcopy for the Licensed Software products provided by Successful Respondent to CPA.

Successful Respondent shall provide CPA either (1) written approval which authorizes CPA to make additional copies of the documentation at no charge, or (2) access to additional copies of the documentation at no charge. CPA will restrict distribution of the Licensed Software Documentation to those users with a “need to know” classification. CPA shall not remove, deface, or otherwise obscure any copyright, patent, trademark, service mark, or other proprietary legend (“Proprietary Legends”) on the Licensed Software or the documentation. Furthermore, CPA shall include such Proprietary Legends in any reproductions of either the Licensed Software or the Licensed Software Documentation that CPA is permitted to make.

c) Software Maintenance and Technical Support Services.

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1) General

a. Successful Respondent shall provide Software Maintenance and Technical Support Services as defined in this RFO. Software Maintenance and Technical Support Services includes, but is not limited to, the following: telephone and on-line support, Error Corrections, Software Updates, Software Upgrades, Software Patches/Fixes, Software Enhancements/Releases, latest features, performance improvements, Licensed Software Documentation, unlimited support contacts, and unlimited annual incidents.

b. In its Offer, Respondent shall describe its offered Software Maintenance and Technical Support Services that meet or exceed the requirements of this RFO.

c. Successful Respondent shall provide qualified personnel to be available to respond to CPA by telephone, email, or website for the reporting of problems or issues with the Licensed Software or Software Maintenance and Technical Support Services. All such Software Maintenance and Technical Support Services must be unlimited during the Contract Term. d. Successful Respondent shall provide a help-desk toll-free telephone number, email, or website for the reporting of problems or issues with the Licensed Software. Successful Respondent shall provide support 24 hours per day, 7 days per week, 365 days per year throughout the Contract Term.

d. Successful Respondent shall automatically send to CPA all Software Upgrades and Software Patches/Fixes. Electronic/overnight delivery of Software Updates, replacement software, and/or Software Patches/Fixes will be supplied in the event of Licensed Software failure.

2) Release Management and Software Patch/Fix.

a. Successful Respondent shall assist in pre-release planning, scheduling, and implementing installation of mandatory manufacturer Software Updates and Software Upgrades in accordance with the manufacturer-suggested support guidelines. Successful Respondent shall notify CPA of any hot fix migrations a minimum of twenty-four (24) hours before the migration. Successful Respondent’s notification shall specify the Software Release schedule, release notes, and summary of impact to the Licensed Software. Successful Respondent shall be responsible for resolving any issues resulting from a Software Release, Software Fix/Patch as reported through Successful Respondent’s support center.

3) Response Times

a. Successful Respondent shall respond to service requests in accordance with the priority and within the maximum response times listed in Table 1 (Maximum Response Times). “Response Time” is defined as the period between Successful Respondent’s receipt of a service request from CPA and the time until Successful Respondent’s service technician responds with repair efforts underway. Repair time is defined as the timeframe for Successful Respondent to complete the Software Maintenance and Technical Support Services required to return the affected systems to normal operations. CPA, in its sole discretion, will determine the service priority reporting of problems or issues with the Licensed Software.

Table 1 - Maximum Response Times

SEVERITY

LEVEL DESCRIPTION MAX RESPONSE

TIME

Severity 1 – Critical

a. Total outage or an outage of a critical component that renders the software unusable or unable to perform pending critical tasks.

b. Security issue that affects the production environment. 2 business hours

Severity 2 – High

a. Performance degradation or diminished processing, capacity, or functionality that affects multiple users within the production environment.

b. Issue that affects fulfillment of a pending deadline or causes staff to be idle.

4 business hours

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Severity 3 – Medium

a. Performance issue related to non-production environments, non-critical issue that is time sensitive, or non-impacting issue requiring additional troubleshooting.

b. Issue that does not affect current work but will affect customer’s ability to perform work within one business day.

c. Frequent issue of minor importance yet obviously affecting work efficiency.

1 business day

Severity 4 – Low/Routine

a. Scheduled maintenance outage.

b. Request for information prior to diminished processing, capacity, or functionality.

c. Low frequency error of marginal importance.

d. Minor problem that requires research, testing, or cooperative effort to resolve.

2 business days

4) Escalation Protocol.

a. In its Offer, Respondent must propose for CPA’s consideration an Escalation Protocol for collaboratively resolving issues encountered during the Contract Term. The proposed Escalation Protocol must explain how issues or complaints are prioritized and resolved. Respondent’s Escalation Protocol shall include (1) an organization chart addressing topics such as specific steps to be taken on top priority issues or disputes arising due to untimely response to system down or critical malfunction remedial repair requests, and (2) Respondent’s approach to resolving any other unmet top priority service requirements under the Contract.

d) Disaster Recovery and Disaster Recovery Plan.

1) In its Offer, Respondent must include plans and turn-around times for the replacement of the Licensed

Software in the event CPA experiences a disaster that renders the Licensed Software inoperable. Successful Respondent must provide support for running the Licensed Software under the Contract on lesser or equivalent capacity equipment for the remainder of the Contract Term including any Renewal Terms.

D.4 CPA Data Security Terms.

D.4.1 CPA Data Safeguard Standards.

a. Defined Terms. The term “CPA Data” refers to CPA’s information as well as other entity information in the possession of CPA that is processed, stored, or transmitted by a computer. CPA Data includes all data that is generated by Successful Respondent in performance of a contract with CPA. The term “CPA Information System” refers to those devices, software, networks and related infrastructure that CPA owns, operates or has obtained for use to conduct CPA business. Devices include, but are not limited to, CPA-owned or managed storage, processing, and communications devices, as well as personally owned devices.

b. Access to CPA Data. Successful Respondent represents and warrants that it will implement, maintain, and use appropriate administrative, technical, and physical safeguards to preserve the confidentiality, integrity, and availability of CPA Data. Successful Respondent will not collect, access, use, disclose, or retain CPA Data other than as necessary to perform the services specified in a contract resulting from this solicitation or as otherwise authorized in writing by CPA. Successful Respondent will restrict access to CPA Data to only those personnel who must have the information on a “need to know” basis. Successful Respondent will not use CPA Data, or any information derived from CPA Data, for its own benefit or the benefit of any other person or entity. Successful Respondent will not share CPA Data with its parent company or other affiliate without CPA’s express written consent. If communications with Contractor necessitate the access or use of confidential Comptroller information, upon Comptroller’s written consent, Contractor shall require each individual who will require access to or may be exposed to Comptroller’s confidential information to sign the Confidential Treatment of Information Acknowledgment (CTIA) form (Section IX).

c. Web-Based Remote Access to CPA Information Systems. Successful Respondent may use third-party web-based remote access connections to CPA Information Systems to provide support services under the following conditions:

1. CPA shall affirmatively initiate and accept Successful Respondent’s connections to CPA Information Systems.

2. CPA shall monitor Successful Respondent’s connections to CPA Information Systems for the duration of the

Services.

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3. CPA shall terminate Successful Respondent’s connections to CPA Information Systems upon completion of the

d. Reserved.

e. Reserved.

f. Location of CPA Data. Successful Respondent shall ensure that CPA Data (i.e., primary and backup) remains, at all times, within the continental United States. Successful Respondent shall receive, process, transmit, and store all CPA Data within the continental United States. Successful Respondent’s point of access to CPA Data shall be within the continental United States.

g. Encryption Standards.

1. Successful Respondent shall encrypt CPA Data in transit and at rest. Data in transit means data is moving via email, in applications, or through browsers and other web connections. Data at rest (including data backups) means data is stored in databases, the cloud, removable media, or mobile devices.

2. Successful Respondent shall utilize encryption standards that are FIPS 140-2 compliant or, upon the written approval of CPA’s Chief Information Security Officer, shall meet the intent of the standards as described in FIPS 140-2.

3. The minimum cryptographic algorithm used by Successful Respondent must be Advanced Encryption Standard (AES) 128 or higher (256 AES is preferred).

4. Successful Respondent shall encrypt CPA Data transmitted over a public or private network. CPA approved data encryption transmission protocols include the following: (1) SFTP (FTP over SSH), (2) FTPS (FTP over TLS),

(3) HTTPS (HTTP over TLS), and (4) virtual private network.

h. Reserved.

i. Auditable Information Security Framework. Successful Respondent shall secure its own and its third-party service providers’ systems (e.g., IT service provider, Cloud Service Provider) in a manner consistent with an auditable information security framework e.g., National Institute of Standards and Technology (NIST), International Organization for Standardization (ISO) 27001. In its response to this solicitation, Successful Respondent shall disclose its adopted information security framework.

j. Defects and Vulnerabilities. Upon Contract award and during the term of the Contract, Successful Respondent shall provide CPA with prompt, written notice upon Successful Respondent’s discovery of any product defects and vulnerabilities of the proposed Licensed System/Software/Solution that allow an attacker to violate an explicit (or implicit) security policy to achieve some impact or consequence. Examples of vulnerabilities include defects that allow intruders to gain increased levels of access or interfere with the normal operations of information systems.

Vulnerabilities caused by insecure configurations, design choices, and changing environmental conditions are additional examples.

k. Supply Chain Risk Management. Successful Respondent shall provide CPA’s Contract Manager a description of how it manages supply chain risks. Specifically, Successful Respondent shall describe its established agreements and procedures with entities involved in the supply chain for the notification of supply chain risks, compromises, and the result of assessments or audits. During the term of the contract, Successful Respondent shall provide CPA’s Contract Manager prompt, written notice of supply chain risks that impact the delivery of the products and services of the Contract. Examples of supply chain risks include supplier financial failure, production control/product quality, market supply and demand, labor disputes/shortages, cybersecurity threats, natural disasters. Successful Respondent shall notify CPA of a supply chain compromise and potential compromise in accordance with Section II, Part G, Security Incident Notification.

l. Independent Information Security Assessment. If Successful Respondent has access to a CPA Information System or receives, processes, transmits, or stores CPA Data, then Successful Respondent shall provide CPA’s Contract Manager with its most recent information security assessment conducted by an independent third-party (e.g., SSAE-18 SOC 2 Type II, ISO 27002) upon Contract award and annually thirty (30) days prior to the anniversary of the Contract award date thereafter. CPA, in its sole discretion, may conduct a security assessment of any information system holding CPA Data or connected to a CPA Information System. CPA’s security assessment may consist of a review of the following:

(i) independent third-party assessment(s) contracted by Successful Respondent (e.g., SSAE-18 SOC 2 Type II, ISO 27002) and (ii) Successful Respondent’s System Security Plan.

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m. Media Sanitization. Successful Respondent shall sanitize information system media, both digital and non-digital, in accordance with NIST Special Publication 800-88 (Guidelines for Media Sanitization) when CPA Data in the custody of Successful Respondent is no longer required to be retained by contract with CPA. Successful Respondent must maintain a record documenting each sanitization procedure that, at a minimum, includes the following information:

(i) date sanitization completed, (ii) description of the item(s), serial number(s), inventory control number(s), if applicable, and (iii) sanitization method used. No later than sixty (60) calendar days from contract expiration or termination or as otherwise specified in the Contract, Successful Respondent must either (i) complete the sanitization and submit via email to the CPA Contract Manager all sanitization documentation or (ii) submit a written statement via email to the CPA Contract Manager explaining the reason that destruction of CPA Data by Successful Respondent is technically impossible or impractical. Successful Respondent’s obligations set forth in this clause survive the termination or expiration of the contract as long as Successful Respondent retains CPA Data.

n. Third-Party Service Providers. It is Successful Respondent’s sole responsibility to ensure that its access and the access Successful Respondent grants to its service providers to CPA Data or CPA Information Systems does not result in unauthorized access to CPA Data or CPA Information Systems.

o. Reserved.

p. Reserved.

q. Reserved.

r. Prohibited Technology. Successful Respondent shall not use covered applications or prohibited technologies in its technology solutions or services provided to Comptroller. In addition, Successful Respondent represents and warrants that its system, software, components, and services do not use the covered applications or prohibited technologies listed on the Department of Information Resources (DIR) Covered Applications and Prohibited Technologies website.

s. Use of Artificial Intelligence. Successful Respondent shall comply with all federal and state laws and regulations for artificial intelligence. Successful Respondent shall implement and maintain the following.

1. Transparency. Disclose the artificial intelligence (AI) that Successful Respondent embeds in its technology products and services and provide detailed information on the purpose of the AI, the specific AI model(s) in use, if the AI uses CPA data to train AI model(s), the configuration settings and options to disable or opt out of using the AI.

2. Artificial Intelligence Inventory. Successful Respondent shall implement and maintain an inventory of the AI used in Successful Respondent’s solution, software, system components, and services provided to Comptroller. Comptroller is required to report an inventory of artificial intelligence in biennial statutorily required reports and Successful Respondent shall support Comptroller’s compliance by providing the inventory information upon Comptroller’s written request.

3. Monitoring. Successful Respondent shall monitor AI for query attacks, malicious inputs, and perturbations for model manipulation, theft, data poisoning, and data drift. Successful Respondent shall establish model integrity validation checks and data poisoning detection capabilities. Successful Respondent shall implement processes for detecting personally identifying information (PII) in the model and removing PII from the model, as appropriate to ensure the AI cannot provide PII to Successful Respondent’s other customers or outside the boundaries of the Comptroller’s systems.

4. Disclosure Notice. Successful Respondent shall disclose to the public prior to system use, the use of AI in systems that interact with the public and receive, process, transmit, or store CPA data.

5. Data Ownership. Successful Respondent shall acknowledge that Comptroller owns CPA data. If Successful Respondent uses generative AI to provide services to customers of a CPA system, Successful Respondent shall ensure that the AI cannot provide CPA data to Successful Respondent’s other customers or outside the boundaries of the Comptroller’s systems.

t. State Authorization and Risk Management Program (TX-RAMP). Successful Respondent shall obtain TX-RAMP certification in accordance with the Department of Information Resources (DIR) Program Manual. CPA requires the following TX-RAMP certification based-on Agency criteria:

1. _X_ None. Product is out of scope/low impact in accordance with the DIR TX-RAMP Manual.

2. __ Level 1 Certification. The product will administer Agency public data.

3. __ Level 2 Certification. The product will administer Agency sensitive, confidential, and/or regulated data.

https://dir.texas.gov/information-security/covered-applications-and-prohibited-technologies https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdir.texas.gov%2Fresource-library-item%2Ftexas-risk-and-authorization-management-program-manual-30&data=05%7C02%7CJason.Frizzell%40cpa.texas.gov%7C9b22e092447c41d9816108dd30f4dbc3%7C2055feba299d4d0daa5a73b8b42fef08%7C0%7C0%7C638720550387877709%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=dFBcq3mGLKSAe5BKAYCH%2FFcMW6eaImJiVx85PviOPho%3D&reserved=0

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Upon Contract award, Successful Respondent shall maintain compliance with the immediately preceding TX-RAMP program requirements and certification throughout the term of the contract. Successful Respondent shall notify the CPA Contract Manager immediately if such TX-RAMP certification is revoked or otherwise removed.

If Successful Respondent uses a cloud service provider to host (i.e., Infrastructure as a Service or IaaS) or build (i.e., Platform-as-a-Service or PaaS) a custom-developed CPA system or application, Successful Respondent shall ensure its cloud service provider obtains TX-RAMP certification in accordance with the Department of Information Resources (DIR) Program Manual. If applicable, CPA requires the following TX-RAMP certification based-on Agency criteria:

4. _X_ None. Product is out of scope/low impact in accordance with the DIR TX-RAMP Manual.

5. __ Level 1 Certification. The product will administer Agency public data.

6. __ Level 2 Certification. The product will administer Agency sensitive, confidential, and/or regulated data.

Upon Contract award, Successful Respondent shall ensure its cloud service provider used to host or build a custom-developed CPA system or application maintains compliance with the immediately preceding TX-RAMP program requirements and certification throughout the term of the contract. Successful Respondent shall notify the CPA Contract Manager immediately if such TX-RAMP certification is revoked or otherwise removed.

u. Reserved.

v. Reserved.

w. Reserved.

D.5 Accessibility Compliance. Successful Respondent shall provide Licensed Software that complies with the applicable, statutorily required accessibility standards for the State of Texas. In the event that the Licensed Software does not meet or exceed the applicable statutorily required accessibility standards for the State of Texas, Successful Respondent shall provide technical support and Licensed Software documentation necessary to enable CPA to comply with the State of Texas reporting requirements outlined in 1 Texas Administrative Code Chapters 206 and 213. Such assistance includes, but is not limited to, Successful Respondent providing a Voluntary Product Accessibility Template (VPAT) or a similar report in substantially the same format as a VPAT. Successful Respondent shall respond to all written inquiries from CPA regarding the Licensed Software’s compliance with requisite accessibility standards within five

(5) business days of receiving such request.

D.6 Liquidated Damages. In submitting an Offer, Respondent agrees that the measure of damages in the event of a default or breach of contract by Successful Respondent may be difficult or impossible to calculate. In the event Successful Respondent fails to perform Services or complete the obligations under the Contract in a timely manner, CPA may require Successful Respondent to pay, as liquidated damages and not as a penalty, an amount equivalent to two percent (2%) of the total cost for Services or obligations not completed as required by the Contract per calendar day of delay.

CPA may impose, but is not obligated to impose, these liquidated damages in lieu of any monetary damages available to CPA under the Contract or applicable law.

D.7. Optional Features, Products or Services. If Respondent believes there are additional features, products, or services that would benefit CPA under this RFO, Respondent may describe such features, products, or services in its Offer and include pricing for such features, products, or services in the Mandatory Price Sheet. Optional features, products, or services are not scored as part of the evaluation process.

E. Contract Resulting From This Solicitation; Order of Priority.

Respondent’s Offer is a legal offer to contract based upon the terms, conditions, and specifications set forth in this RFO.

A contract award by CPA may be by (1) valid PO or (2) a formal, written agreement between CPA and Successful Respondent. The Contract is effective as of the Award Date and will be between CPA and the Successful Respondent. The entire Contract between CPA and Successful Respondent shall consist of the following documents, which shall control in the following order of priority, except as otherwise provided in the formal signed agreement or PO: (1) the PO and PO Change Notices (“POCN”), if any; (2) the formal, signed agreement, if any; (3) this RFO; and (4) Successful Respondent’s Offer (collectively, the “Contract”).

F. Warranty of Performance https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdir.texas.gov%2Fresource-library-item%2Ftexas-risk-and-authorization-management-program-manual-30&data=05%7C02%7CJason.Frizzell%40cpa.texas.gov%7C9b22e092447c41d9816108dd30f4dbc3%7C2055feba299d4d0daa5a73b8b42fef08%7C0%7C0%7C638720550387877709%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=dFBcq3mGLKSAe5BKAYCH%2FFcMW6eaImJiVx85PviOPho%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdir.texas.gov%2Fresource-library-item%2Ftexas-risk-and-authorization-management-program-manual-30&data=05%7C02%7CJason.Frizzell%40cpa.texas.gov%7C9b22e092447c41d9816108dd30f4dbc3%7C2055feba299d4d0daa5a73b8b42fef08%7C0%7C0%7C638720550387877709%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=dFBcq3mGLKSAe5BKAYCH%2FFcMW6eaImJiVx85PviOPho%3D&reserved=0

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Successful Respondent represents and warrants that its performance under the Contract shall be conducted conscientiously in a professional and workmanlike manner to the full extent of Successful Respondent’s talents and capabilities with due diligence and in full compliance with the highest professional standards of practice in the industry applicable to the

G. Security Incident Notification

Successful Respondent shall have policies and procedures for the effective management of Security Incidents, which shall be made available to CPA upon written request. Within twenty-four (24) hours of Successful Respondent’s discovery or reasonable belief that there has been an event which results in the accidental or deliberate unauthorized access, loss, disclosure, modification, disruption, or destruction of confidential CPA information (“Security Incident”), Successful Respondent shall provide notice to CPA by calling (800) 531-5441 EXT 34357. Until the investigation is complete, Successful Respondent shall submit, on a daily basis or as otherwise agreed by CPA, a written report via encrypted email to security.alerts@cpa.texas.gov that includes, at a minimum, the following:

• Date and time incident occurred,

• Date and time incident detected,

• Date and time incident contained,

• Address where incident occurred,

• Name of person(s) that discovered incident,

• Description of how Successful Respondent discovered incident,

• Type of CPA information involved,

• Description of the nature of the incident,

• Description of the steps Successful Respondent has taken or will take to investigate incident,

• Description of the steps Successful Respondent has taken or will take to mitigate any negative impacts of incident,

• Information technology involved (e.g., laptop, server, mainframe),

• Description of steps taken to preserve computer evidence and maintain chain of custody, and

• Description of corrective action Successful Respondent has taken or will take to prevent future incidents.

Successful Respondent shall coordinate all media or other breach notifications with CPA in advance of such notification(s), unless expressly prohibited by law. Subject to review and approval of CPA, Successful Respondent shall provide notice at its own cost that satisfies the requirements of applicable law to individuals whose information was compromised or likely compromised as a result of the Security Incident. If CPA, in its sole discretion, elects to send its own separate notice, then all costs associated with preparing and providing the notice shall be reimbursed to CPA by Successful Respondent. If Successful Respondent does not reimburse such costs within thirty (30) days of CPA’s written request, then CPA shall have the right to collect such costs. CPA reserves the right to conduct an independent investigation of any Security Incident, and should CPA choose to do so, Successful Respondent shall cooperate fully with CPA and assume responsibility at its own expense for making personnel, resources, and systems access available to CPA and CPA’s authorized representative(s).

H. Insurance and Bonds

Successful Respondent represents and warrants that it shall obtain and maintain the following coverages throughout the term of the Contract and that all coverages shall be with companies licensed in Texas with an “A” rating from A.M. Best Co. authorized to provide the required coverages:

• Blanket Employee Dishonesty Bond or Employee Dishonesty Coverage under a liability insurance policy with a minimum $25,000 for each individual who will provide Services. A rider or endorsement shall name the Texas Comptroller of Public Accounts as loss payee or additional named insured under the respective bond or policy;

• Standard Workers Compensation Insurance covering all individuals who will provide Services;

• Commercial General Liability Insurance: $1,000,000 minimum each occurrence limit; $2,000,000 minimum aggregate limit; and

• Professional Liability Insurance: $1,000,000 minimum each occurrence limit; $2,000,000 minimum aggregate limit.

All of the above policies and bonds shall contain endorsements prohibiting cancellation except upon thirty (30) calendar days’ prior written notice to CPA. No later than five (5) business days following the Award Date, and on an annual basis thereafter, Successful Respondent shall furnish proof to CPA of such coverage in the form of a Certificate of Insurance from Successful Respondent’s insurance carrier(s) indicating the required coverages. The certificate shall be addressed to mailto:security.alerts@cpa.texas.gov

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CPA as the certificate holder. Successful Respondent shall submit proof of required insurance coverage via email, referencing the PO number, to the following address: contract.administration@cpa.texas.gov.

I. Criminal Background Investigation

1. Criminal Background Investigation by Successful Respondent. Prior to an Assigned Personnel commencing Services under the Contract, Successful Respondent shall conduct a criminal background investigation and provide written notice via email to CPA’s Criminal Investigation Division of any Assigned Personnel that have any felony criminal conviction(s). If any information related to felony criminal conviction(s) for the Assigned Personnel changes during the Contract term, Successful Respondent shall provide written notice via email to CPA’s Criminal Investigation Division no later than three (3) business days after Successful Respondent’s discovery of such changed information.

Written notice to CPA’s Criminal Investigation Division shall be submitted to cid.analysts@cpa.texas.gov.

Successful Respondent’s exercise of due diligence in conducting the criminal background investigation shall include, at a minimum, the following: (1) compliance with Successful Respondent’s published policies and procedures for background and criminal conviction checks and (2) a comprehensive search of the public information portion of the Texas Department of Public Safety criminal conviction database located at:

https://publicsite.dps.texas.gov/ConvictionNameSearch/. If Successful Respondent asserts that a search of the Texas Department of Public Safety criminal conviction database is not appropriate for a particular Assigned Personnel, Successful Respondent must provide written notice via email to CPA’s Criminal Investigation Division that explains the proposed alternate approach for conducting the criminal background investigation.

For purposes of this clause, “Assigned Personnel” includes, without limitation, (1) all individuals provided by Successful Respondent under the Contract who will or may (a) be assigned as lead or key personnel; (b) provide Services on-site at CPA’s premises; or (c) access CPA information resources, i.e., the procedures, equipment, and software that are employed, designed, built, operated, and maintained to collect, record, process, store, retrieve, display, and transmit information, and (2) associated personnel, including consultants and contractors. At CPA’s written request, Successful Respondent shall replace Assigned Personnel with any felony criminal conviction(s).

Within five (5) business days of receipt of a written request by CPA’s Criminal Investigation Division during the Contract term, Successful Respondent shall provide written notice to CPA’s Criminal Investigation Division of any Assigned Personnel that have any felony criminal conviction(s).

2. Criminal Background Investigation by CPA. At CPA’s discretion, CPA may conduct a criminal background investigation on Successful Respondent’s Assigned Personnel. Should any Assigned Personnel not be acceptable to CPA due to a finding of felony criminal conviction(s) as a result of the criminal background investigation, Successful Respondent shall replace such Assigned Personnel upon CPA’s written request or CPA may terminate the Contract.

3. Remedies. If CPA becomes aware that Successful Respondent provided false information, Successful Respondent fails to promptly notify CPA of changed information that related to felony criminal convictions, or Successful Respondents fails to replace Assigned Personnel as required by this Section, Successful Respondent shall be in breach of contract and CPA shall have the option to terminate the Contract without further obligation to Successful Respondent as well as pursue all other remedies and rights available to CPA under contract, at law, or in equity.

J. Contract Term

The initial term of the Contract shall be from July 1, 2026 through August 31, 2027 (“Initial Term”). CPA may, in its sole discretion, exercise the option to extend the Contract for up to three (3) additional one-(1)-year periods. The optional additional periods are September 1, 2027 through August 31, 2028; September 1, 2028 through August 31, 2029; and September 1, 2029 through August 31, 2030. To exercise the option to extend the term, CPA will notify Successful Respondent; such notice may be by PO or POCN issuance. The “Contract Term” is the Initial Term plus any additional periods. Notwithstanding the termination or expiration of the Contract, certain provisions that by their nature are intended to continue beyond the termination or expiration of the Contract, e.g., indemnification, confidentiality, dispute resolution, records retention, CPA data safeguards, State Auditor’s right to audit, and CPA’s right to audit, shall survive the termination or expiration of the Contract.

K. Invoice Acceptance Criteria

Prior to payment, CPA will evaluate the provided products and/or Services using the following criteria and any additional acceptance criteria provided in the Contract:

1. The products and/or Services must meet all specifications and standards of performance in the Contract; and

2. The products and/or Services must comply with all published specifications.

mailto:contract.administration@cpa.texas.gov mailto:cid.analysts@cpa.texas.gov https://publicsite.dps.texas.gov/ConvictionNameSearch/

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L. Payments

Payment(s) to Successful Respondent will be based upon the schedule described in Section IV (Mandatory Price Sheet) and the Contract. CPA may, in its sole discretion, process payments on a monthly basis. CPA makes no express or implied warranty whatsoever that any minimum compensation or minimum quantity will be guaranteed under the Contract.

Payment and remedies for late payment and non-payment shall be made in accordance with the Texas Prompt Payment Act, Chapter 2251 of the Texas Government Code. Generally, subject to several exceptions, the Texas Prompt Payment Act requires payments to be made no later than thirty (30) days after the later of the date goods are received, services are completed, or an undisputed invoice is received.