ESBD_516502_1780686553722_Addendum_1_QandA_RevisedSOW.docx

TEXAS DEPARTMENT OF TRANSPORTATION

Financial Management Division

ADDENDUM NO. 1

ON-DEMAND PROFESSIONAL ACCOUNTING SERVICES

RFP 601CT0000006438

Date Addendum Issued: June 5, 2026 This addendum becomes a part of the RFP documents and modifies or clarifies the RFP documents. In case of conflicts between this addendum and previously issued documents, this addendum shall take precedence. This addendum does not change the proposal due date and time of June 22, 2026 at 11:00 AM CST.

In response to the questions received, TxDOT is providing the answers below and updating Section 15. Statement of Work of the RFP. Attachment A to this Addendum will provide a redlined version of Section 15. A revised version of the RFP that includes the updated Section 15 will also be uploaded to Bonfire.

QUESTIONS AND ANSWERS

Below are answers in bold to the questions submitted by the due date and time of May 29, 2026 at 5:00 PM:

1. Since this engagement relates specifically to non-attestation work, can a non-attestation firm bid on the work? We are the largest internal audit firm with expertise in finance and accounting, and have CPAs on staff. Let us know if we would qualify to bid. Thanks.

Answer: Yes, if there are no independence concerns since we are an audited agency.

2. On page 9, the RFP indicates that "Respondent shall propose a project plan meeting the requirements of Section III." Could TxDOT please clarify what elements in Section III or otherwise are meant to be included in the requested “Project Plan”?

Answer: Because the specific work to be assigned under the contemplated contract is not yet known, please assume each of the items in the statement of work may be assigned and describe your preparation to perform each of the items in the statement of work when assigned, the estimated turnaround time from assignment to beginning work, and generally how you would perform the task.

3. Would TxDOT please provide additional information to help differentiate between the “Project Plan” requested in Section 25.1.A.3 and the “Project Management Plan” requested in Section 25.1.A.2.D?

Answer: These are the same thing. Please describe your preparation to perform each of the items in the statement of work and the estimated turnaround time from assignment to beginning work.

4. Could TxDOT confirm that the requested “Project Plan,” listed on page 9 of the RFP, and the “Business Continuity Procedures and Disaster Recovery Plan” (limit one page), listed on page 7 of the RFP, are different?

If they are different, please indicate where in the proposal response (Section 25.1) the Business Continuity Procedures and Disaster Recovery Plan should be included.

Answer: Yes, these two requirements are different. The plan described under Section 16.2(a) Project Methodology is a deliverable of the contract. The contractor will be expected to establish a plan to perform each assignment when the assignment is given.

The Business Continuity Procedures and Disaster Recovery Plan described under Section 19 of the RFP is a required part of the RFP response. This document is required to establish that the respondent has a plan to ensure business continuity in case of emergency with respect to the work that respondent would perform under the contemplated contract. The Business Continuity Procedures and Disaster Recovery Plan should be submitted with the response. There is no specific location required, but it should be labeled and easily identifiable upon review of the response.

5. Please confirm that offerors can submit exceptions to the provided “Exhibit H – Contract Template” as an addendum to the proposal response.

Answer: Respondents who would require changes to the provided “Exhibit H – Contract Template” must submit any needed exceptions as part of the proposal response. The evaluation team will receive any exception requests that are provided with the proposal and may take them into account in evaluating the proposal. In some cases, if an exception is not submitted with the proposal response and only raised during contract negotiations, TxDOT may not be able to consider the exception.

6. The RFP indicates that while respondent name is the only datapoint that will be publicaly shared at the time of solicitation opening, "prices and other solicitation details will only be divulged after award." Please confirm that offerors can submit a redacted proposal as part of their submission.

Answer: Respondents must submit an unredacted proposal as part of their submission so that the submission can be evaluated. Respondents may also choose to provide notice that they consider portions of their proposal to be confidential and excepted from disclosure under an exception to the Public Information Act, Texas Government Code Chapter 552. There is no prohibition against providing a redacted copy of the proposal, in addition to the unredacted copy.

7. Please confirm that offerors are permitted to submit a redacted version of their proposal, given that “prices and other solicitation details will only be divulged after award.” If so, please provide instructions and any requirements or citations for submitting the redacted copy.

Answer: Respondents must submit an unredacted proposal as part of their submission so that the submission can be evaluated. Respondents may also choose to provide notice that they consider portions of their proposal to be confidential and excepted from disclosure under an exception to the Public Information Act, Texas Government Code Chapter 552. There is no prohibition against providing a redacted copy of the proposal, in addition to the unredacted copy. There is no required form for submitting a redacted copy.

8. On page 5, the RFP includes “computer system installation and support” as an implementation service example. Please confirm if “computer system installation and support” includes hardware support, software support, or both.

Answer: This includes software support only. We do not anticipate a need for computer hardware support. A revised Statement of Work that clarifies this expectation is attached to this Addendum.

9. On page 5, the RFP includes “computer programming” as a non-attest accounting service example. Please confirm any specific “computer programming” background will be required (such as Python, JavaScript, Java, etc.).

Answer: We do not anticipate a need for computer programming services. However, knowledge of database queries using SQL may be needed. A revised Statement of Work that clarifies this expectation is attached to this Addendum.

10. Section 25.1.A.2 requests that project components, tasks, and timeline, along with proposed activities are provided as part of the proposal response. Given that the statement of work provided in Section 15.1.C.1-5 has numerous broad examples of work requested, would TxDOT consider removing the requirements for proposer to list detailed components, tasks, activities, deliverables, and timelines as part of the proposal response?

In lieu of these requirements, we propose a Mobilization Plan to demonstrate vendor mobilization capabilities and approach instead.

With this change, the requirements for the Staffing Plan, Capability, Technical Approach, and Project Management Plan could be:

(A) Proposed staffing plan, including number of staff members, assigned roles and percentage of time each will be assigned to this project;

(B) Capability;

(C) Detailed technical approach;

(D) Project management plan;

(E) Detailed quality assurance plan;

(F) Overall project timeline;

(G) Mobilization plan;

(H) Respondent’s proposed responsibilities;

(I) TxDOT’s responsibilities.

Answer: Because the specific work to be assigned under the contemplated contract is not yet known, please assume each of the items in the statement of work may be assigned and describe your preparation to perform each of the items in the statement of work when assigned, the estimated turnaround time from assignment to beginning work, and generally how you would perform the task.

11. Please On page 5, the RFP includes “executing steps to improve productivity, and assisting with the merger of organizations” as a non-attest implementation service example.

Please confirm if these services will be specific to implementing for accounting functions and improving productivity. If not, can these services be included for advisory services instead of implementation services.

Answer: Yes, all of these services would be specific to implementing accounting functions. For example, executing steps to improve productivity might involve making recommendations related to the design or purchase and implementation of automated technology solutions to be used for accounting functions, such as the automation of journal entries. TxDOT would not be purchasing IT systems or services through this contract.

Additionally, “assisting with the merger of organizations” would be requested if TxDOT is directed to merge with another governmental entity or take over the functions of a quasi-governmental entity. In that hypothetical scenario, the selected vendor could be asked to help develop the accounting entries and associated financial statement disclosures needed to properly record this merger.

12. Sections 15.1.C.2-3 include “assisting with the merger of organizations” and “analysis of a potential merger or acquisition.”

Can TxDOT provide information regarding these potential merger and/or acquisitions forthcoming involving TxDOT as part of the statement of work?

Answer: Any desired services related to assistance with a potential merger would be thoroughly detailed in the assignment. We do not anticipate a need for this service at the current time. “Assisting with the merger of organizations” would be requested if TxDOT is directed to merge with another governmental entity or take over the functions of a quasi-governmental entity. In that hypothetical scenario, the selected vendor could be asked to help develop the accounting entries and associated financial statement disclosures needed to properly record this merger.

13. Section 15.1.C.4 includes “facilities management.” Can TxDOT provide more information regarding what this example scope might include as part of the statement of work?

Answer: “Facilities management” was included in error. TxDOT will remove this requirement from the solicitation via the revised Statement of Work attached to this Addendum.

14. Section 15.1.C.5 describes “the Vendor’s function is to provide the Department with a product.” Can TxDOT provide more information regarding what “products” are included as part of this statement of work example?

Answer: Please refer to the last sentence of the referenced section for examples. However, the example “the sale and implementation of computer software” is being removed from the Statement of Work. Please see the revised Statement of Work attached to this Addendum for accurate examples.

15. Section 25.1.A.2.A asks respondents to provide “percentage of time each [staff member] will be assigned to this project;” while the Exhibit D Pricing Summary asks respondents to “estimate the percentage of work you will assign to each position under this contract during the life of the contract. The percentages must total to exactly 100%.”

Would TxDOT clarify the difference between “percentage of time” and “percentage of work” required across these two sections?

Answer: These are interchangeable and intended to capture the percentage of the project for which each assigned resource is performing work, as the requested rate structure is a specified hourly rate.

16. Given that the statement of work for non-attest accounting services provided in Section 15.1.C.1-5 is illustrative (with examples of each service provided), would TxDOT provide estimated percentage of work allocation across all five services (Advisory, Implementation, Transaction, Staff and Other Support, and Product Service)? E.g. Advisory is estimated at 20% of total contract work. This estimate will help offerors better align staff assignments and responsibilities for both the staffing plan and pricing summary response.

Answer: We anticipate that close to 100% of work performed will be advisory in nature. As this procurement is for on demand services, there is no guarantee that a statement of work will be executed for any work over the term of the contract.

17. Can TxDOT confirm that the “Manager in Charge” referenced in Section 12.1.C.1 is the same as the “Team Leader” referenced in Exhibit C?

Answer: Confirmed.

18. Considering the number of examples in the statement of work across the five anticipated service areas, can there be more than one “Manager in Charge” to oversee day-to-day operations?

Answer: Yes, but there must be one main point of contact with the selected vendor for all services performed.

19. RFP Exhibit C outlines information required for each proposed team member along with required team member references. RFP Section 12.1 describes key personnel as required to include a manager in-charge. Since the services outlined in the RFP are broad and to be delivered on an as-needed basis, is it necessary to complete exhibit C for individuals other than the executive leaders and manager in charge position? Other resources would be determined based upon the specific work requests determined by TxDOT.

Answer: RFP Section 12.1(b) states “Respondent shall provide all necessary key personnel to perform key business and technical functions. The staffing levels at a minimum must include the specific leads that will support these functions.” RFP Section 13.1 requires Respondents to submit references using Exhibit C for the key personnel named in the response. TxDOT considers any personnel named in response to the requirements of Section 12.1 to be “key personnel.”

20. RFP Section 15.1 outlines general requirements and includes a description of potential non-attest services. If the proposing vendor is a CPA firm and unable to provide services such as litigation services, bankruptcy trusteeship, etc., will the vendor have the ability to decline requests for work as needed?

Answer: The solicitation requires a CPA firm, so TxDOT does not intend to request services CPA firms in general cannot provide. If there are services described in the RFP’s statement of work the proposing vendor cannot provide, please specify those in the response. If the vendor is selected the vendor will not be asked to perform any services the vendor’s response specifically excluded.

21. RFP Section 15.1(c)(5) describes product services as sale and delivery of packaged programs, computer software, etc. In instances where the selected vendor is requested to provide software through reseller agreements, will there be opportunities to establish contract modifications and/or additional contracts with the software provider?

Answer: “The sale and implementation of computer software” is being removed from the Statement of Work. The vendor will not be requested to provide software or SAAS products. Please see the revised Statement of Work attached to this Addendum for accurate examples.

22. RFP Section 16.1(4) timeline requires a timeline approach for each component of the scope. Since the services are to be provided on an as-needed basis and there is subjectivity to the scope included in the RFP, will an example timeline be sufficient for inclusion in a vendor proposal?

Answer: Yes, please provide one example timeline for each of the 5 types of services outlined in 15.1(c)(1)-(5).

23. Can TxDOT confirm the anticipated pricing structure (e.g., time-and-materials, fixed price per assignment, or other)?

Answer: The pricing structure will be a Specified Rate structure, based on the hourly rates and number of hours worked for each identified job title or role involved in performing the engagement. If travel is required, travel expenses will be reimbursed based on actual and reasonable expenses, to be approved in advance of the expense being incurred.

24. Are there any established pricing guidelines or constraints that vendors are expected to follow?

Answer: The pricing structure will be a Specified Rate structure, based on the hourly rates and number of hours worked for each identified job title or role involved in performing the engagement. If travel is required, travel expenses will be reimbursed based on actual and reasonable expenses, to be approved in advance of the expense being incurred.

25. Can TxDOT clarify whether services are expected to be remote, onsite, or hybrid, including locations and expected frequency?

Answer: While TxDOT staff is primarily on site, TxDOT is amenable to services performed using any of these delivery methods.

26. Will travel be required, and how will travel costs be handled (e.g., reimbursable)?

Answer: Required travel is not anticipated. If travel is required, travel expenses will be reimbursed based on actual and reasonable expenses, to be approved in advance of the expense being incurred.

27. Can TxDOT provide a breakdown of expected assignment types, including accounting advisory, GASB implementation, financial reporting support, and other technical areas, along with estimated frequency or priority of each (e.g., hours, FTE)?

Answer: We are unable to predict the frequency of services and there is no guarantee that any services will be needed. Specific work would be detailed at the time of assignment and expected deliverable timeframe would be discussed.

28. Are there peak periods (e.g., fiscal year-end, different portions of audit cycles) where demand is expected to increase?

Answer: No, services could be requested at any time of year.

29. Can TxDOT provide examples of GASB standards or accounting line-item issues expected under this contract?

Answer: The following are some examples of work that may be assigned under this contract:

· TxDOT may ask the vendor to assist with developing a white paper documenting the impact of any new GASB standards on TxDOT’s financial statements.

· TxDOT could ask the vendor to assist with drafting a white paper on the appropriate accounting treatment of certain items for TxDOT with supporting references to the GASB.

30. In reference to Section II – Respondent Requirements, Section 12, can TxDOT clarify expectations around overall team structure for assignments, including whether specific roles beyond the Manager in Charge are required to be submitted?

Answer: RFP Section 12.1(b) states “Respondent shall provide all necessary key personnel to perform key business and technical functions. The staffing levels at a minimum must include the specific leads that will support these functions.” Other than the specified Manager-in-Charge role, Respondents have discretion regarding which roles should be included in the response. The proposed staffing structure will be considered as part of the evaluation of each respondent’s plan to meet the requirements of the Statement of Work, as described in Section 26.2(a)(2) of the RFP.

31. In reference to Section II – Respondent Requirements, Sections 12 and 13, can TxDOT clarify the process and expected timeline for replacing or adding other personnel for specific assignments?

Answer: Article 8 in Attachment D to Exhibit H, Contract Template, provides expectations for replacement of key personnel. No timeline is provided, but the expectation is that the Vendor shall:

· “maintain a staff of properly-trained and experienced personnel to ensure satisfactory performance under the Contract.” RFP Section 15.1(d).

· “be prepared to receive assignments immediately upon execution of the contract.” RFP Section 14.1.

· “provide all necessary key personnel to perform key business and technical functions. The staffing levels at a minimum must include the specific leads that will support these functions.” RFP Section 12.1(b)

· “be prepared to begin work on each assignment within 5 days of assignment receipt.” RFP Section 18.1

32. In reference to Section III – Deliverables, Section 15.1 (Project Methodology), can TxDOT clarify the typical timeline for onboarding vendor personnel, including background checks and system access provisioning?

Answer: Background checks are the responsibility of the vendor, but they must be complete before an employee can work on TxDOT projects. If vendor has background check procedures in place for its employees, existing background checks may be used. There is an approximately 1-week turnaround time should a vendor need access to any TxDOT systems. TxDOT will make allowances for the time required to obtain access to TxDOT systems for any projects that require new access.

33. In reference to Section III – Deliverables, Section 15.1 (Project Methodology), can TxDOT clarify the expected review and approval structure for deliverables, including the roles involved (e.g., Project Manager, functional stakeholders), and whether multiple review levels or iterative approval cycles should be anticipated?

Answer: The number of review levels and approvals is dependent on the project scope and the anticipated cost. All levels of approval are anticipated to come from employees of the Financial Management Division within TxDOT.

34. In reference to Section III – Deliverables, Section 18 (Project Schedule and Budget), given the 5-day performance requirement following assignment, can TxDOT clarify the pre-assignment process, including how scope, schedules, and budgets are communicated to vendors prior to formal assignment?

Answer: The assignment includes creation and negotiation of a scope, schedule, and budget, and that should begin within 5 days of receipt of an assignment.

35. What systems, platforms, or tools (e.g., project management, reporting, financial systems) will vendors be required to use?

Answer: TxDOT does not require the use of specific systems, platforms or tools for the contemplated contract.

36. What are TxDOT’s expectations regarding data security, data sharing, and confidentiality?

Answer: As a professionally licensed CPA firm, TxDOT expects that the Vendor will follow all applicable professional standards required of CPA firms with regard to data security, data sharing, and confidentiality. Additional expectations regarding data security, data sharing, and confidentiality are described in Exhibit D, Contract Template and its attachments.

37. Are vendors permitted to leverage proprietary methodologies, accelerators, or delivery tools to support the services?

Answer: Yes.

38. What is the expectation of onsite vs. remote work for performance of services?

Answer: While TxDOT staff is primarily on site, TxDOT is amenable to services performed using any of these delivery methods.

39. What accounting software is utilized by TxDOT?

Answer: TxDOT uses PeopleSoft Financials, and Oracle products.

40. What is the historical volume and type of assignments associated with this type of contract?

Answer: In the prior 6-year contract term, TxDOT requested the vendor perform one 3-month advisory service. The work related to developing recommendations to strengthen internal controls in our Local Accounts Receivable area.

41. Are there minimum or guaranteed hours/tasks or is the work entirely discretionary?

Answer: The contract anticipated under this solicitation will be for work to be assigned on an as-needed basis. Therefore, there is no minimum guaranteed number of hours or tasks to be assigned.

42. What is the typical duration and staffing level for assignments?

Answer: See the answer to question 40 for an example of a prior engagement. For this engagement the vendor utilized 4 staff.

43. What level of negotiation is allowed per assignment as it relates to budgeted hours?

Answer: TxDOT will review the proposed approach and number of hours for reasonableness and will negotiate with the vendor if the estimated number of hours is determined to be unreasonable.

44. Pricing Matrix Clarification: The scope of services outlined in the RFP indicates that work will be assigned on an as-needed basis across a broad range of potential service types (e.g., advisory, implementation, transaction, and staff augmentation).

Given the variable nature of these assignments and the lack of defined volume, frequency, or service mix, could you provide additional guidance on how proposers should estimate the “percentage of work” by position in the pricing matrix?

a. Should proposers assume a standard or representative mix of services when allocating percentages?

b. Or is there a recommended approach or baseline scenario the Department would like proposers to use for consistency in scoring?

Answer: Please assume a 100% allocation of advisory services when drafting your proposal since those would be the most likely services performed.

ATTACHMENT A

REVISED SECTION 15

rfp FOR ON-DEMAND PROFESSIONAL ACCOUNTING SERVICES

15. Statement of Work

15.1 General Requirements

(a) Vendor shall perform non-attest accounting services, as assigned, in accordance with accounting standards generally accepted in the United States of America (“generally accepted accounting principles”) as prescribed by the GASB, and the standards applicable to non-attest services.

(b) Assignments to perform non-attest accounting services will be made on an as-needed basis by the TxDOT Project Manager during the contract term and sent by email to the Vendor’s Project Manager or other Vendor staff as agreed by Vendor.

(c) Non-attest accounting services include:

(1) Advisory services, in which the Vendor's function is to develop findings, conclusions, and recommendations for Department consideration. Examples of advisory services are an operational review and improvement study, analysis of an accounting system, assisting with strategic planning, and defining requirements for an information system.

(2) Implementation services, in which the Vendor's function is to put an action plan into effect. Department personnel and resources may be pooled with the Vendor's to accomplish the implementation objectives. The Vendor is responsible to the Department for the conduct and management of engagement activities. Examples of implementation services are providing computer system installation and software implementation support, executing steps to improve productivity, and assisting with the merger of organizations.

(3) Transaction services, in which the Vendor's function is to provide services related to a specific Department transaction, generally with a third party. Examples of transaction services are insolvency services, valuation services, preparation of information for obtaining financing, analysis of a potential merger or acquisition, and litigation services.

(4) Staff and other support services, in which the Vendor's function is to provide appropriate staff and possibly other support to perform tasks specified by the Department. The staff provided will be directed by the Department as circumstances require. Examples of staff and other support services are contractor prequalification services (including: a review of vendor audited financial statements and notes to the audited financial statements; current ratio; quick liquidity ratio; accounts receivable turnover; inventory turnover; debt to asset ratio; debt to equity ratio; return on assets; return on investment; compliance with the Department’s requirements; and an evaluation of outside contractor labor burden rate), data processing, facilities management, computer programming, bankruptcy trusteeship, and controllership activities. This may require knowledge of database queries using SQL.

(5) Product service, in which the Vendor's function is to provide the Department with a product and associated professional services in support of the installation, use, or maintenance of the product. Examples of product services are the sale and delivery of packaged training programs, the sale and implementation of computer software, and the sale and implementation installation of systems development methodologies.

(d) Proposer shall maintain a staff of properly-trained and experienced personnel to ensure satisfactory performance under the Contract. Personnel assigned to perform the accounting services shall have extensive experience in accounting and finance.

15.2 In-Scope Services – Vendor shall perform accounting services in accordance with the objectives stated above and be in compliance with independence regulations of authoritative regulatory bodies (such as the Securities and Exchange Commission [SEC], the AICPA Code of Professional Conduct, the Department of Labor [DOL], and state boards of accountancy).

15.3 Out-of-Scope Services – In accordance with rule 101-3 of the AICPA Code of Professional Conduct, the Vendor will not:

(a) Assume management responsibilities for any work performed on behalf of the Department.

(b) Oversee the service of a dedicated individual who possesses suitable skill, knowledge, or experience.

(c) Evaluate the adequacy and results of the services performed.

(d) Accept responsibility for the results of the non-attest services.

(e) Establish and maintain internal controls, including monitoring ongoing activities