ESBD_524777_1780934440343_REQUEST FOR QUALIFICATIONS (RFQ) - INTERNAL AUDIT SERVICES.pdf

STATE OFFICE OF

ADMINISTRATIVE HEARINGS

REQUEST FOR QUALIFICATIONS (RFQ)

INTERNAL AUDIT SERVICES

Class 946, Item 20

ISSUED June 8, 2026 SOLICITATION No. 360-26-001

Event Date

Issue of Request for Qualifications June 8, 2026

Deadline for Request for Qualifications July 17, 2026, by 5:00pm CST

Announcement of Successful Respondent On or before August 14, 2026

Contract Signed/Purchase Order Issued On or before September 1, 2026

TABLE OF CONTENTS

Contents

SECTION 1: INTRODUCTION

1.1. GLOSSARY OF TERMS

1.2. PURPOSE

1.3. AGENCY MISSION

1.4. SCHEDULE OF EVENTS

1.5. PROCUREMENT AUTHORITY

1.6. TEXAS PUBLIC INFORMATION ACT

1.7. MISINTERPRETATION OR LACK OF INFORMATION

1.8. REJECTION OF REPONSES AND CANCELLATION OF RFQ

1.9. SUCCESSFUL RESPONDENT’S OBLIGATIONS

1.10. PARTS INCORPORATED

SECTION 2: REQUEST FOR QUALIFICTIONS PROCESS

2.1. CONTACT PERSON

2.2. PROHIBITION AGAINST UNAUTHORIZED CONTACT

2.3. WRITTEN QUESTIONS

2.4. SUBMISSION OF PROPOSAL

2.5. RESPONSE FORMAT & CONTENTS

2.6. RESPONDENT’S CONTRACTING AUTHORITY

2.7. EXECUTIVE SUMMARY

2.8. PROPOSAL EVALUATION AND CONTRACT AWARD

2.9. COST PROPOSAL

2.10. PROTEST PROCEDURE

SECTION 3: CONTRACT TERMS AND CONDITIONS

3.1. INTRODUCTION

3.2. PURPOSE

3.3. LEGAL AUTHORITY

3.4. CONTRACT DOCUMENTS

3.5. SERVICES TO BE PERFORMED

3.6. SCHEDULE FOR PERFORMANCE OF SERVICES

3.7. CONTRACT REPRESENTATIVES

3.8. LEGAL NOTICES

3.9. CONTRACT TERM

3.10. GENERAL TERMS AND CONDITIONS

3.11. AMENDMENT

3.12. CONTRACT AMOUNT AND FUNDING

3.13. TERMINATION AND RIGHTS UPON TERMINATION

3.14. DEFAULT, REMEDIES, AND OPPORTUNITY TO CURE

3.15. WARRANTIES

SECTION 4: REQUIRED INFORMATION

4.1. DUE DATE OR PROPOSALS

4.2. EXPERIENCE OF RESPONDENT

4.3. EXPERIENCE OF KEY PERSONNEL

4.4. RESPONDENT REFERENCES

4.5. CONTACT PERSON(s)

4.6. CONFLICT OF INTEREST

4.7. FINANCIAL SOLVENCY

SECTION 5: SCOPE OF SERVICES

5.1. BACKGROUND AND GENERAL INFORMATION

5.2. INTERNAL AUDIT STANDARDS TO BE FOLLOWED

5.3. DELIVERABLES

5.4. DELIVERABLES FOR RENEWAL YEARS

5.5. DEVELOPMENT OF THE ANNUAL AUDIT PLAN

5.6. IMPLEMENTATION OF THE ANNUAL AUDIT PLAN

5.7. REPORTING AND RELATED SERVICES

5.8. ANNUAL AUDIT REPORTS

5.9. ADDITIONAL AUDIT REPORTS

SECTION 6: VETERAN HEROES UNITED IN BUSINESS (VETHUB) PARTICIPATION

6.1. VETHUB SUBCONTRACTING PLAN (HSP)

6.2. SUBCONTRACTING PLAN SUBMISSION

6.3. SUBCONTRACTING OPPORTUNITIES

6.4. POST CONTRACT AWARD

Request for Qualifications 360-26-001 State Office of Administrative Hearings Internal Audit Services Page 1 of 37

SECTION 1: INTRODUCTION

This section provides an introduction and overview of the Request for Qualifications (RFQ) for Internal Audit Services.

The State Office of Administrative Hearings (SOAH) is soliciting proposals from qualified individuals or entities (Respondent) to provide Internal Auditing Services for SOAH as described in Section 6 – Scope of Services.

Established in accordance with Chapter 2003 of the Texas Government Code, SOAH is an independent and neutral agency in the executive branch of State government charged with conducting administrative hearings and alternative dispute resolution proceedings for over 60 state agencies and other governmental entities. These hearings and proceedings are between state agencies or other governmental entities and the people, businesses, or industries they regulate.

Since the commencement of operations in 1992, the Legislature has broadened the scope and nature of SOAH’s jurisdiction, and rarely has there been a legislative session that has not included a transfer or creation of new hearing work to or for SOAH. In addition to mandated transfers of jurisdiction, SOAH holds hearings and dispute resolution proceedings for agencies and other governmental entities that choose to refer cases to it.

SOAH maintains its headquarters in Austin, Texas, with regional offices in Corpus Christi, Dallas, El Paso, Ft. Worth, Houston, Lubbock, and San Antonio. The agency has one satellite office in Waco.

For the 2026-2027 biennium, the full time equivalent (FTE) employee maximum for SOAH is 121.50 for each year, and total anticipated appropriations (excluding fringe benefits) are $13,939,366 (Fiscal Year2026) and (Fiscal Year 2027).

Historically, SOAH has contracted for internal audit services under a delegation of authority from the State Auditor’s Office (SAO or State Auditor) instead of directly employing its own internal audit staff.

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1.1. GLOSSARY OF TERMS

This glossary assigns definitions to the listed terms. The definition given to a term listed in this Glossary applies whenever the term appears in this Request for Qualifications (RFQ) and in any response, including a Proposal, to this RFQ.

Term Definition

Business Hours State Office of Administrative Hearings (SOAH) business hours are 8:00 a.m. to 5:00 p.m. CT, Monday through Friday, except State holidays.

Chief Administrative Law Judge (Chief ALJ)

The Chief Administrative Law Judge serves as the agency’s executive head and is authorized to act on behalf of SOAH.

Chief Financial Officer (CFO) The Chief Financial Officer manages the financial risks to SOAH and serves as the audit executive.

Contract The agreement entered into by SOAH and the Successful Respondent, which will incorporate the contents of this RFQ and the Successful Respondent’s Proposal, except as specifically provided to the contrary in the Contract and any amendments to the Contract.

Contract Administrator The individual designated by SOAH to represent SOAH during the performance of the contract.

Contractor The individual, legal partnership, or corporation whose proposal is accepted and who enters into a contract with SOAH. Contractor may sometimes be referred to as “Respondent”.

Contract Award The day of the contract announcement after the signing of a Contract between SOAH and the Successful Respondent.

CPA or Comptroller Texas Comptroller of Public Accounts.

Day A calendar day.

Fiscal Year (FY) SOAH’s fiscal year begins on September 1 and ends on August 31 of the following year.

Good Faith Effort Effort required by vendors when completing Attachment D, VetHUB Subcontracting Plan subcontracting opportunity.

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Veterans Heroes United in Business (VetHUB)

VetHUB is Veteran Heroes United in Business. The program focuses on certification of service-disabled veterans (SDV) to facilitate their growth and development and increase VetHUB contracts and subcontracts with the State of Texas.

VetHUB Subcontracting Plan (HSP)

The VetHUB subcontracting plan is required by Chapter 2161 of the Texas Government Code (TGC) and by Title 34, Part 1, Chapter 20, Subchapter D of the Texas Administrative Code

(TAC).

Proposal All information and materials submitted by a Respondent in response to this RFQ. This includes the Executive Summary, Section-by-Section Response to the RFQ, References, Contact Person, Assurances and Commitments, Cost Proposal, VetHUB HSP, and other information and materials provided to SOAH by the Respondent prior to Contract Award.

Respondent An individual, partnership, or corporation that responds to this

RFQ.

Responsive Proposal A submitted Proposal that conforms in all material respects to the RFQ, as determined by SOAH. At a minimum, a responsive proposal must include completion of Attachment B (Assurances and Commitments), Attachment C (Cost Proposal), Attachment D (VetHUB), and Respondent’s most current annual financial report or year-end financial statements.

RFQ The Request for Qualifications.

State The State of Texas and its agencies, boards and commissions, officers, and employees.

Subcontractor A person who contracts with the Successful Respondent to work, to supply goods and services, or contribute toward completing work for SOAH.

Successful Respondent The Respondent recommended by the evaluation committee and approved by the Chief ALJ, subject to the execution of a completed contract.

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Business Day Monday through Friday 8 a.m. to 5 p.m., except for legal holidays observed by the State of Texas and any temporary agency closure authorized by law. The terms “working days” and “business days” may be used interchangeably.

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1.2. PURPOSE

1. The intent of the RFQ is to select a qualified Respondent who provides Internal Audit Services that will enable SOAH to comply with the Texas Internal Auditing Act, Texas Government Code § 2102.001 et. seq. (the Act), which details internal auditing responsibilities, and the related Texas Attorney General’s Opinion No. JM-1183 regarding the applicability of the provisions of the Act. Key requirements of the Act, minimum requirements of the Internal Auditor, and the scope of procedures of the Internal Auditor are as follows:

2. The Act requires that an audit program conforms with the:

• Standards for the Professional Practice of Internal Auditing;

• Generally Accepted Government Auditing Standards;

• Certified Internal Auditor Code of Professional Ethics; and

• Statement of Responsibilities of Internal Auditing by the Institute of Internal

Auditors.

The Internal Auditor selected by SOAH under this RFQ to provide Internal Audit Services shall:

3. Establish a methodology for assigning risk factors and weights to develop an audit plan that includes a prioritized audit work schedule that provides coverage of SOAH’s major control systems. Perform a risk assessment using techniques to identify risk factors that affect SOAH’s major systems and controls, including, but not limited to, the agency’s management and administration, auditing and performance measures, finance and accounting, human resources, information technology services, docketing and hearings functions;

4. Prepare and implement an annual audit plan to be approved by the Chief ALJ and CFO using risk assessment techniques. Identify and recommend priorities and time frame for individual audits to be conducted during the year;

5. Conduct audits as specified in the audit plan and ensure that all deviations from the audit plan are documented and approved by the Chief ALJ and CFO;

6. Have direct reporting and access to the Chief ALJ and the CFO and allow time in the work schedule for scheduled meetings as deemed necessary;

7. Prepare audit reports to be reviewed by the Chief ALJ and the CFO;

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8. Assume no operational or management responsibilities for SOAH;

9. Complete an annual internal audit report based on guidelines established by the Texas State Auditor’s Office (or the State Auditor or SAO);

10. Perform additional or special audits, outside the scope of the approved audit plan, as directed by the Chief ALJ and the CFO at the hourly rates provided in the Contract;

and

11. Provide appropriate notice of completed audits to all State oversight bodies as required by State law.

Professional Certification and Development Requirements:

12. Respondents must be either Certified Public Accountants (CPA) or Certified Internal

Auditors (CIA) with at least three (3) years of government auditing experience.

Related certifications are encouraged, including Certified Information System Auditors and Certified Fraud Examiners;

13. Respondents must have an established continuing education program for the professional development of their internal staff, that complies with the Yellow Book Continuing Professional Education (CPE) requirements (General Standard 4.16);

14. Respondents must conduct quality assurance reviews in accordance with professional standards and periodically take part in an external peer review conducted in accordance with Rules of the Texas State Board of Public Accountancy, Standards for the Professional Practice of Internal Auditing, and Generally Accepted Governmental Auditing Standards; and

15. If Respondent is not a CPA firm, Respondent must specify the individual CPA(s) in the group who will handle the work under this proposal.

Financial Solvency and Insurance Requirements:

16. The Proposal must include the Respondent’s most current annual financial report or year-end financial statements; and

17. The Proposal must include proof of professional liability and workers’ compensation coverage for the Respondent.

18. The Respondent understands that if it is awarded a Contract as the Successful Respondent, then Respondent shall, at no additional cost, promptly provide access to, inspection of, and reproduction of all paper and electronic records, reports, data, files, software, books, documents, accounting procedures, practices or any other items

Internal Audit Services Page 7 of 35 relevant to its performance of contracted services, to SOAH, auditors of the State of Texas, or such other persons or entities designated by SOAH. Respondent will direct any of its subcontractors to likewise permit access to, inspection of, and reproduction of any Records of Respondent’s subcontractor(s) that pertain to this Contract.

19. The Texas State Auditor’s Office may conduct an audit or investigation of any entity receiving funds from the state directly under the Contract or indirectly through a subcontract under the Contract. The acceptance of funds directly under the Contract or indirectly through a subcontract under the Contract acts as acceptance of the authority of the State Auditor, under the direction of the Texas Legislative Audit Committee, to conduct an audit or investigation in connection with those funds.

Under the direction of the Texas Legislative Audit Committee, an entity that is the subject of an audit or investigation by the State Auditor must provide the State Auditor with access to any information the State Auditor considers relevant to the investigation or audit. Respondent further agrees to cooperate fully with the State Auditor. Respondent shall ensure that this requirement concerning the authority to audit funds received indirectly by subcontractors from Respondent and the requirement to cooperate is with an audit is included in any subcontract Respondent awards.

1.3. AGENCY MISSION

The mission of SOAH is to serve as an independent, neutral forum for the State of Texas by providing a fair and efficient hearings process and the opportunity for alternative dispute resolution proceedings, in accordance with Chapter 2003 of the Texas Government Code.

1.4. SCHEDULE OF EVENTS

The following time periods are set forth for informational and planning purposes only.

SOAH reserves the right to change any of the time periods and will post all changes on the Electronic State Business Daily at https://www.txsmartbuy.gov/esbd.

https://www.txsmartbuy.gov/esbd

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1.5. PROCUREMENT AUTHORITY

This RFQ and all activities leading toward the execution of the written Contract pursuant to this RFQ are being conducted in accordance with the applicable laws of the State of Texas pursuant to the authority granted by Texas Government Code §

2155.083 (Delegated Purchases); Texas Government Code Chapter 2254 (Professional Services); and Texas Government Code § 2102.005 (Internal Auditing Required).

1.6. TEXAS PUBLIC INFORMATION ACT

1. SOAH is subject to the Texas Public Information Act (PIA) (Texas Government

Code Chapter 552). Proposals submitted to SOAH in response to this RFQ are subject to release by SOAH as public information in response to a request. A Proposal, or specific parts thereof, may however, be shown by the Respondent to fall within one or more of the exceptions to disclosure provided in the PIA or other applicable law.

2. Marking an entire Proposal as “confidential” or “copyrighted” is unacceptable. If a Respondent believes that part(s) of its Proposal are confidential under the PIA, it should indicate this in a Transmittal Letter and specify the confidential information by marking “Confidential” on each page or by each paragraph containing such information prior to submitting the Proposal to SOAH. In response to this section, Event Date

Issue of RFQ June 8, 2026

Written Questions Due June 19, 2026, by 5:00pm CST

(Late Questions will not be answered)

Responses to Written Questions Issued July 3, 2026, by 5:00pm CST

Deadline for Request for Qualifications July 17, 2026, by 5:00pm CST

(Late responses will not be considered)

Announcement of Successful Respondent

On or before August 14, 2026

Contract Signed/Purchase Order Issued

On or before September 1, 2026

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Respondents shall provide SOAH with specific and detailed reasons for each item marked “Confidential”. Vague and general claims to confidentiality are not acceptable. This detail is necessary so that SOAH will have sufficient information to provide to the Attorney General of Texas, if a ruling regarding the confidentiality of such information is requested.

3. Failure of a Respondent to respond to notification of a request under the PIA may result in the release of all or part of the Proposal as public information. It is the Respondent’s sole obligation to submit briefings to the Attorney General setting forth the basis upon which the requested information should remain confidential. The Attorney General may determine all or part of a Proposal to be public information even though parts of the Proposal were marked “Confidential” by the Respondent.

4. SOAH assumes no responsibility for asserting legal arguments to the Attorney General on behalf of Respondents. Respondents are advised to consult with their legal counsel concerning disclosure issues resulting from this procurement process and to take precautions to safeguard trade secrets and other proprietary information.

1.7. MISINTERPRETATION OR LACK OF INFORMATION

By submitting a Proposal, a Respondent covenants and agrees that it fully understands and will abide by the terms and conditions of the RFQ, and it will not make any claims for, or have any rights to, cancellation or relief without penalty because of any misinterpretation or lack of information. The CFO reserves the right to accept Proposals by waiving minor technicalities if it is determined to be in the best interests of SOAH. SOAH’s decision shall be conclusive, and subject to protest under Section

2.20 of this RFQ.

1.8. REJECTION OF REPONSES AND CANCELLATION OF RFQ

Issuance of this RFQ and/or receipt of submitted responses do not constitute a commitment on the part of SOAH to award a Contract. SOAH maintains the right to reject any or all responses, and to cancel this RFQ, if SOAH, in its sole discretion, considers it to be in its best interests to do so.

1.9. SUCCESSFUL RESPONDENT’S OBLIGATIONS

The Successful Respondent shall always be responsible for the performance of any contractual obligations that may result from the award of the Contract and shall be liable for the non-performance, including any non-performance by Respondent’s Subcontractors.

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1.10. PARTS INCORPORATED

All attachments discussed and posted to the Electronic State Business Daily (ESBD) website are incorporated into and expressly made a part of this RFQ.

SECTION 2: REQUEST FOR QUALIFICTIONS PROCESS

This section outlines the process to be completed by the respondent as part of this RFQ for Internal Audit Services.

2.1. CONTACT PERSON

The point of contact concerning this RFQ:

Terry Perry, CTCD, CTCM Purchaser/VetHUB Administrator State Office of Administrative Hearings 300 West 15th Street, Suite 504 Austin, Texas 78701 Email: Purchasing@soah.texas.gov Phone: 512-572-0436

2.2. PROHIBITION AGAINST UNAUTHORIZED CONTACT

1. SOAH is committed to a procurement process that maintains the highest level of integrity. Accordingly, Respondents, as well as their agents, liaisons, advocates, lobbyists, consultants, representatives, or others promoting their position, are limited to those communications authorized by and described in this RFQ. Any attempt to contact or influence any of the participants, whether that attempt is oral or written, formal or informal, direct or indirect; outside of this RFQ process is prohibited and may result in Respondent’s disqualification.

2. Should improper contact be made prior to Contract Award, the Chief ALJ may investigate those allegations and at his or her sole discretion, may disqualify a Respondent.

2.3. WRITTEN QUESTIONS

1. Written questions concerning this RFQ will be accepted by the deadline stated in the Schedule of Events, and responses will be posted on the ESBD at http://www.txsmartbuy.com/esbd, accordingly.

2. Questions received after the deadlines set in the Schedule of Events may be reviewed mailto:Purchasing@soah.texas.gov http://www.txsmartbuy.com/esbd

Internal Audit Services Page 11 of 35 by SOAH, but SOAH is under no obligation to answer them. Any addenda or amendments to the RFQ, whether made as a result of a prospective Respondent’s written questions or otherwise, will be posted on the ESBD and SOAH’s website. It is the responsibility of the Respondent to regularly check these websites for any additional information and responses to questions regarding this RFQ.

3. Questions shall be submitted by email by the inquiry submission deadline. Emailed questions shall be sent to: Purchasing@soah.texas.gov.

4. A Respondent may inquire in writing by email and should obtain clarification as to any ambiguity, conflict, discrepancy, exclusionary specification, omission or error in this RFQ (collectively, “errors”) prior to submitting a Proposal, but in no event shall be entitled to additional compensation, relief or time by reason of any error or its later correction. If a Respondent fails to obtain written clarification required for its response, the Respondent shall submit a Proposal at its own risk; and, if awarded a Contract, the Respondent shall be deemed to have waived any claim to contest SOAH’s interpretation thereof.

2.4. SUBMISSION OF PROPOSAL

1. Proposals, including applicable attachments, must be submitted electronically to

Purchasing@soah.texas.gov no later than the deadline established in the Schedule of Events. Due to file size limitations, please ensure files are zipped or sent in batches that are clearly titled in a manner that will enable SOAH to ascertain its contents. Late Proposals will not be considered. No exceptions will be made.

2. All Proposals submitted must be organized and arranged to correspond directly with the numbered sections of this RFQ, and all pages must be numbered. Respondents shall follow the instructions for completing and submitting an HSP.

3. If a Respondent is claiming any part(s) of its Proposal as confidential due to being proprietary, financial, or trade secret information, the Respondent must note this in a Transmittal Letter and shall include a separate attachment to the Transmittal Letter that clearly in detail indicates the part(s) of the Proposal claimed to be confidential and shall mark such information in accordance with the guidance provided in Section

1.6 of this RFQ.

4. The Respondent’s assurances and commitments (Attachment B) shall be signed by an officer or agent of the Respondent with authority to contractually bind the Respondent, and the attachment must be included with the Proposal.

5. Respondents are required to propose a complete services solution to SOAH’s requirements in their Proposal. Any items not specifically requested, but integral to the requested services, shall be included and described in the Proposal and identified

Internal Audit Services Page 12 of 35 in the appropriate sections thereof.

6. Respondents responding to this RFQ must fully and completely address all goods, services, and other requirements described in this RFQ. Incomplete or partial Proposals will not be considered. The Respondent shall provide all information that the Respondent believes would be helpful to SOAH in evaluating the Respondent’s ability to fulfill the RFQ requirements.

7. Proposals that have been copyrighted, in whole or in part, by any Respondent are unacceptable and may be rejected as non-responsive in SOAH’s discretion.

2.5. RESPONSE FORMAT & CONTENTS

The Respondent must demonstrate its understanding of the requested goods and services and must address specifically, in writing, the Respondent’s approach to providing each requirement in this RFQ. Each Proposal must be organized in the manner described below:

1. Executive Summary

2. Section-by-Section Response to the RFQ

3. References

4. Completed Attachment B (Assurances and Commitments)

5. Completed Attachment C (Cost Proposal)

6. Completed Attachment D (VetHUB Subcontracting Plan)

2.6. RESPONDENT’S CONTRACTING AUTHORITY

The Respondent warrants and represents that the person named on the Respondent’s assurances and commitments (Attachment B) has the full right, power and is legally authorized to execute the Contract resulting from this RFQ on behalf of the Respondent. Commitments must be unqualified, not limited, and fully commit the Respondent to provide the goods and services required under this RFQ.

2.7. EXECUTIVE SUMMARY

1. Respondents must provide an executive summary of their Proposal (excluding cost information) that asserts that the Respondent is providing, in its Proposal, all the requirements of this RFQ. If the Respondent is providing goods or services beyond those specifically requested those goods or services must be identified. If the Respondent is offering goods or services that do not meet the specific requirements of this RFQ, but in the opinion of the Respondent are equivalent or superior to those specifically requested, any such differences must be noted in the Executive Summary.

The Respondent should realize, however, that failure to provide the goods and services specifically requested may result in disqualification or non-selection.

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2. The Respondent must demonstrate an understanding of the requested goods and services and must address specifically, in writing, the Respondent’s approach to providing each requirement in this RFQ.

3. The Executive Summary must not exceed five (5) pages and should represent a full and concise summary of the contents of the Proposal.

2.8. PROPOSAL EVALUATION AND CONTRACT AWARD

1. SOAH intends to conduct a fair, comprehensive, and impartial evaluation of all

Proposals received in response to this RFQ using an evaluation committee. The evaluation committee will be selected by the CFO and may consist of SOAH employees or outside individuals with expertise in particular areas. In addition, the SOAH General Counsel, other in-house legal counsel, and outside legal counsel may assist by advising the evaluation committee. SOAH employees and consultants may also assist in the process as technical non-voting members of the evaluation committee.

2. The evaluation committee may request clarification of information or representations contained in a Proposal before completing its evaluation. Requests for clarification and responses to requests for clarification will be in writing and will become part of the evaluation record.

3. At a minimum, the factors to be considered by the evaluation committee in evaluating Proposals shall include, but not be limited to, the following:

• the financial stability of the Respondent;

• whether the Respondent performed the good faith effort required by the VetHUB subcontracting plan;

• the competence and qualifications of the Respondent’s company and personnel;

• the probable quality of the offered goods and/or services: organization, approach, ability to perform and complete deliverables;

• the probable timeliness of the offered goods and/or services, fulfilling delivery terms, meeting deadlines and reporting timelines; and

• the quality of the Respondent’s past performance in contracting with SOAH, with other state entities, or with private sector entities.

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The scoring matrix is included as Attachment F.

4. The evaluation committee may consider vendor performance reviews maintained by the Texas Comptroller of Public Accounts under section 2262.055 of the Texas Government Code.

5. SOAH reserves the right, in its sole discretion, to request an optional oral presentation from selected Respondents regarding their qualifications and proposal.

Notification of any requirements for an optional oral presentation will be posted on the ESBD.

6. A written notice of Contract Award will be posted on the SOAH website, the ESBD, and sent to all Respondents following execution of the Contract.

2.9. COST PROPOSAL

1. Cost is not part of the evaluation process for assessing the Respondent’s qualifications but will be considered in making SOAH’s final assessment to determine whether the proposal offers to perform the required services for a fair and reasonable price.

However, the Respondent must state its pricing for all goods and services rendered during the course of the proposed Contract, including any and all costs involved that are to be paid or reimbursed by SOAH. The pricing for the required goods and services is to be presented only in the format set forth in Attachment C of the RFQ.

Pricing information shall include all costs, including time, travel, and business expense associated with providing the required goods and services in Section 6 of this RFQ. Except as to any additional audits that may be requested by SOAH outside the scope of the approved audit plan, no additional compensation or reimbursement will

Internal Audit Services RFQ Possible Points

The financial status of the Respondent. Pass/Fail

Respondent Responded to VetHUB Good Faith Effort. Pass/Fail

Respondent Demonstrated Competence, Experience, Qualifications, and Ability to Perform Internal Audit Services, as solicited.

Respondent’s past performance in contracting with the State Office of Administrative Hearings, with other state entities, or with private sector entities.

Respondent’s likelihood of completing work products timely.

TOTAL 100

Internal Audit Services Page 15 of 35 be available to the Successful Respondent beyond the amount agreed to be paid for the required services provided. Pricing agreed to in any resulting Contract shall be firm and remain constant through the life of the Contract.

2. Cost Proposal Restrictions. The Respondent shall not disclose its Cost Proposal or other cost information in the executive summary or the body of its written Proposal.

All Respondent’s cost information must be confined only to the information provided in Attachment C. Including cost information in the written Proposal may be cause for disqualification.

2.10. PROTEST PROCEDURE

1. In accordance with Title 1, § 160 of the Texas Administrative Code, a vendor who submitted a written response to a solicitation issued by SOAH may file a protest with SOAH’s CFO or designee for actions taken by the agency on the following:

• the solicitation documents or actions associated with the publication of solicitation documents;

• the evaluation or method of evaluation for a solicitation; or

• the award of a contract.

2. Filing the Bid Protest

The protest must be submitted in writing and must be filed with SOAH’s CFO or designee:

• By the end of the posted solicitation period, if the protest concerns the solicitation documents or actions associated with the publication of solicitation documents;

• By the day of the award of a contract resulting from the solicitation, if the protest concerns the evaluation or method of evaluation for a solicitation; or

• No later than ten (10) days after the notice of award is posted to ESBD, if the protest concerns the award.

3. Protest Contents

The protest must contain the following:

• A specific identification of the rule, statute, or regulation that the protesting respondent alleges the solicitation, contract award or tentative award violated.

• A specific description of each action that the protesting respondent alleges is a violation of the statutory or regulatory provision(s) identified in the

Internal Audit Services Page 16 of 35 protest.

• A precise statement of the relevant facts.

• A statement of the argument and authorities in support of the protest.

• An explanation of the requested subsequent action sought by the protesting respondent.

• A statement confirming copies of the protest have been mailed or delivered to any other identifiable interested parties. For purposes of these procedures, “interested parties” means all respondents who have submitted bids or proposals for the contract involved.

SECTION 3: CONTRACT TERMS AND CONDITIONS

3.1. INTRODUCTION

This section sets forth the basic terms and conditions that will become part of any final Contract awarded to the Successful Respondent. SOAH reserves the right to negotiate or incorporate different or additional terms and conditions in the Contract if it is determined to be in the best interest of the State.

3.2. PURPOSE

The purpose of this Contract is to obtain the services of Contractor for Internal Audit Services as required by SOAH in accordance with the RFQ, and as further described in the Contract Documents set forth below and incorporated herein.

3.3. LEGAL AUTHORITY

This Contract is authorized by and entered into pursuant to the provisions of Chapters 2003 and 2102 of the Texas Government Code.

3.4. CONTRACT DOCUMENTS

Contractor and SOAH agree to be bound by the provisions contained in the following Contract Documents, which describe the required performances in more detail and are attached hereto and incorporated by reference herein in their entirety in descending order of precedence:

(1) This Contract, SOAH’s Standard Terms and Conditions, and any executed purchase orders, including any subsequent amendments to the Contract;

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(2) The Contractor’s Proposal in response to the RFQ (except for Respondent’s evidence of financial solvency information as required by Section 4.7 of the RFQ);

(3) The RFQ, including all posted documents, attachments, appendices, exhibits, and addenda (“Solicitation”), except as otherwise modified herein.

In the event of any conflicts or inconsistencies between any of the foregoing Contract Documents, such conflicts or inconsistencies shall be resolved according to the order of precedence as set forth above.

3.5. SERVICES TO BE PERFORMED

Contractor shall provide SOAH with Internal Audit Services according to the specifications and requirements set forth in the Contract Documents.

3.6. SCHEDULE FOR PERFORMANCE OF SERVICES

Time is of the essence in the performance of the Contract. SOAH may require Contractor to perform tasks or services according to a time and date sensitive schedule.

3.7. CONTRACT REPRESENTATIVES

The following will act as the authorized contract representative on behalf of their respective Party:

State Office of Administrative Hearings Respondent/Contractor Lance McMillan, Chief Financial Officer TBD 300 W. 15th Street, Suite 504 Austin, Texas 78701 Email: Lance.McMillan@soah.texas.gov Phone: 512-475-4993

Either Party may, from time to time, designate a new contract representative without the requirement for the execution of a written amendment to this Contract by giving written notice to the other party.

3.8. LEGAL NOTICES

Any notice required or permitted to be given under this Contract by either party shall be in writing and shall be delivered by regular first-class mail, by email, and/or by common carrier, overnight delivery with signature required, and shall be deemed to have been given on the date of attempted or actual delivery to the recipient if mailto:Lance.McMillan@soah.texas.gov

Internal Audit Services Page 18 of 35 addressed to the receiving party at the address specified in this section:

State Office of Administrative Hearings Respondent/Contractor Lance McMillan, Chief Financial Officer TBD 300 W. 15th Street, Suite 504 Austin, Texas 78701 Email: Lance.McMillan@soah.texas.gov Phone: 512-475-4993

3.9. CONTRACT TERM

1. The Contract will commence effective September 1, 2026, and continue through

August 31, 2027, unless renewed, extended, or terminated pursuant to the terms and conditions of the Contract.

2. Renewal. SOAH reserves the right to renew the Contract, at its sole discretion, for up to three (3) additional one-year periods, at the Contract rate or rates as modified during the term of the Contract.

3. Optional Extension. At the end of the initial term or any renewal period, SOAH, at its sole discretion, reserves the right to extend the Contract for up to one (1) additional year at the Contract rate or rates as modified during the term of this Contract.

4. SOAH shall issue a Purchase Order as written notice for all Contract renewal or extensions, and authorizations for purchases of additional services as specified in the Contract. Such Purchase Orders shall be incorporated by reference as Contract Documents. No authorization for the purchase of any services is provided until the Contract receives such notice.

5. At the end of the Contract term, or upon earlier termination under any provision of this Contract, the Successful Respondent shall, in good faith and with reasonable cooperation, aid in the transition to any new arrangement and provider, if requested by SOAH.

3.10. GENERAL TERMS AND CONDITIONS

SOAH’s standard terms and conditions, as found in Attachment A, will be incorporated by reference as Contract Documents.

3.11. AMENDMENT

1. The Contract may be amended only upon written agreement signed by both parties to this Contract. The Parties stipulate and agree that any act, oral statements, or mailto:Lance.McMillan@soah.texas.gov

Internal Audit Services Page 19 of 35 representation by either party, their agents or employees that purports to increase the liability of SOAH or modify the Contract requirements is voidable by SOAH, unless the Contract is amended in writing.

2. SOAH reserves the right to amend the Contract through execution of a unilateral amendment provided to the Contractor under the following circumstances: (i) to correct an obvious clerical error in this Contract; or (ii) to incorporate new or revised federal or state laws, regulations, rules, or policies that are required to be included as part of the Contract.

3.12. CONTRACT AMOUNT AND FUNDING

The Contract amount will be determined by the number of audits agreed upon. The total cost shall not exceed $45,000 for any one fiscal year, unless agreed upon by SOAH and Successful Respondent. Funding is contingent on appropriations by the Texas Legislature.

3.13. TERMINATION AND RIGHTS UPON TERMINATION

1. Convenience of the State. SOAH may, in its sole discretion and at its sole option, terminate the Contract, in whole, without recourse or penalty, by providing the Contractor with advance written notice (60 days) and stating the effective date of such termination.

2. Agreed Termination. SOAH and Contractor may mutually agree to terminate the Contract in writing and stating the effective date of such termination.

3. Cause or Default. In the event Contractor fails to perform or comply with a material obligation, term, condition, or provision of this Contract, and has failed to cure such default after having received notice and an opportunity to cure such default within thirty (30) calendar days, then SOAH may, upon written notice to Contractor, terminate all of this Contract for cause. Such notification of Termination for Cause shall state the effective date of such termination, and if no effective date is specified, the termination shall be effective upon receipt of the notification.

4. Cessation of Work. Upon receipt of written notice to terminate or upon final expiration of the Contract, Contractor shall immediately discontinue all services affected as of the effective date of termination or expiration, unless SOAH directs otherwise and as mutually agreed upon by the parties.

5. Remedies. Notwithstanding any exercise by SOAH of its rights of termination pursuant to this section, Contractor shall not be relieved of any liability to SOAH for damages due to SOAH by virtue of any breach of this Contract by Contractor or for amounts otherwise due SOAH by Contractor. Termination is not an exclusive remedy

Internal Audit Services Page 20 of 35 but will be in addition to any other rights and remedies provided in equity, by law or under the Contract to enforce the terms of the Contract, or to recover damages for the breach of any agreement being derived from the Contract. Contractor shall remain liable for all covenants and indemnities under the Contract and for all costs and expenses, including court costs and reasonable attorney’s fees, incurred by SOAH with respect to the enforcement of any of the remedies listed herein to the extent caused by Contractor’s negligence or material breach of its obligations under the Contract.

6. Liability for Payments. Upon termination or expiration of the Contract for any reason, SOAH shall be liable for payment only for the portion of work authorized by SOAH in writing and which Contractor has rendered in a reasonably satisfactory manner and delivered to SOAH in conformance with the Contract prior to or upon termination. SOAH shall not be liable for any damages, claims, losses, or any other amounts arising from or related to any such termination or expiration, or for any work performed that: (i) does not meet Contract requirements; (ii) was performed after the effective date of termination.

7. Return and Ownership of Works and Materials. Subject to any requirements of the Contractor to provide end of contract transition services, the Contractor shall promptly deliver or otherwise make available to SOAH at Contractor’s expense, all works and such other information and materials as may have been accumulated or developed by the Contractor in performing services under the Contract, whether completed or in process. Upon termination or expiration, SOAH may take over the work and pursue the same to completion by contracting with another party or otherwise. All Works, Work Products or other deliverables produced by Contractor and paid for by SOAH shall become and/or remain the property of SOAH as further described in this Contract.

3.14. DEFAULT, REMEDIES, AND OPPORTUNITY TO CURE

1. Notice of Possible Default. SOAH, based on information from Contract monitoring, audit, or other verifiable sources, will determine whether Contractor has acted or failed to act in such a manner that gives rise to an act of possible default under this Contract. SOAH shall give written notice to Contractor setting out the circumstances that support SOAH’s determination of possible default.

2. SOAH Remedies in the Event of Default. Upon SOAH’s determination of possible default, SOAH:

• Shall give Contractor at least thirty (30) calendar days to cure the default and to provide SOAH with sufficient information that supports a finding of cure by the Parties;

• May require Contractor to take specific corrective actions in order to achieve

Internal Audit Services Page 21 of 35 or remain in compliance with any contractual term as mutually determined by the Parties;

• May require the lawful removal of any employee of Contractor or any subcontractor from the provision of services under this Contract;

• Shall have the right to terminate the Contract in the event Contractor has not cured a material breach and provided that a default materially impacts the provision of the services provided hereunder.

Notwithstanding any of the foregoing, SOAH may exercise any other right, remedy or privilege that may be available to it under applicable law of the State and any other applicable law or proceed by appropriate court action to enforce the provisions of the Contract, or to recover damages for the breach of any agreement being derived from the Contract. The exercise of any of the foregoing remedies will not constitute a termination of the Contract unless SOAH notifies Contractor in writing prior to the exercise of such remedy. Contractor will remain liable for all covenants and indemnities under the aforesaid agreement.

3.15. WARRANTIES

By execution and acceptance of funds under this Contract, Contractor makes all the representations, warranties, guarantees, certifications and affirmations as for set forth in the Contract Documents. These representations and warranties are essential and material to SOAH’s willingness to enter into this Contract.

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SECTION 4: REQUIRED INFORMATION

This section outlines required information to be provided by the Successful Respondent as part of their Response to this RFQ for Internal Audit Services.

4.1. DUE DATE OR PROPOSALS

Respondent shall submit a Proposal to SOAH no later than the date and time specified in the Schedule of Events.

4.2. EXPERIENCE OF RESPONDENT

1. Only Respondents that are either CPA firms or CIAs with at least three (3) years of government auditing experience will be considered.

2. If Respondent is not a CPA firm, then Respondents must have, and maintain in good standing, at least one CPA with an active license issued by the Texas State Board of Public Accountancy, who will be assigned to manage Internal Audit Services under the Contract. Respondents must provide evidence of CPA licensure with submission of proposal.

3. Respondents must meet the following requirements (see TGC § 2102.006):

1) be a CPA or CIA; and

2) have at least three (3) years of government auditing experience.

4. Each Respondent must indicate the number of years’ experience the Respondent has in providing similar services.

5. Each Respondent shall provide descriptions for all engagements of comparable complexity and sensitivity to the requirements of this RFQ that have been conducted within the past five (5) years. The descriptions shall be detailed and cover the contracts the Respondent and any subcontractors have had and all experience similar to this Contract, including but not limited to:

• Size of contract (including value).

• Reason for contract termination/expiration, if contract is no longer in effect.

• Types of services are directly provided by the Respondent and whether the Respondent was the contractor or subcontractor.

• Term and type of contract, including effective dates.

• Any contract disputes or contract performance problems encountered.

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6. The Respondent shall state whether or not any of the following have occurred during the last five (5) years:

• The Respondent has had a contract terminated, and if so, shall provide full details, including the other party’s name, address and telephone number.

• The Respondent has been assessed any penalties or liquidated damages under any existing or past contracts and if so, note the reason for and the amount of the penalty or liquidated damages for each incident.

• The Respondent was the subject of (i) any disciplinary action for substandard work and unethical practices or (ii) any order, judgment, or decree of any federal or state authority barring, suspending or otherwise limiting the right of the Respondent to engage in any business, practice, or activity.

• The Respondent has been involved, in any capacity other than as an expert witness, in litigation associated with its contract performance or internal audit/accounting services.

4.3. EXPERIENCE OF KEY PERSONNEL

1. Respondents must provide a list of personnel to be assigned to SOAH’s project and include resumes for all project personnel, including name, title, and job description.

2. Lists and resumes provided by Respondents must include, at a minimum, information regarding length of time spent doing present duties or related duties; a description of duties; projects accomplished, including scope and name of customer's company; and relevant continuing professional education. If duties were performed for an employer other than the Respondent, the Proposal must indicate that employer's name.

3. Respondents shall designate an individual to be the responsible Audit Manager. The Audit Manager should have a minimum of three (3) years’ audit management experience overseeing projects of similar complexity and scope to the one required in this RFQ. The Audit Manager shall also meet the minimum requirements of TGC § 2102.006.

4.4. RESPONDENT REFERENCES

A minimum of five (5) verifiable references must be provided that include contact person, name of company, phone number and e-mail address. Respondents’ references shall include references for which the Respondent has provided similar services as described in Section 6 of this RFQ within the last five (5) years. SOAH reserves the right to verify all information in the Proposal submitted by the Respondent and may seek other information it deems necessary to conduct a thorough

Internal Audit Services Page 24 of 35 review.

4.5. CONTACT PERSON(s)

1. Respondent shall provide the name, address, telephone number, and email address of a person to contact concerning questions regarding their Proposal.

2. Respondents shall provide the name, address, telephone number, and email address of a person to contact concerning questions regarding billing or accounting (if different than Section 4.30.1).

3. Respondents shall provide the name, address, telephone number, and email address of a person to contact concerning questions regarding contracting (if different than Section 4.30.1).

4.6. CONFLICT OF INTEREST

The Respondent must disclose any actual, potential, or perceived conflict of interest relative to the performance of the requirements of this RFQ. The Respondent must disclose any personal or business relationship of:

(a) itself;

(b) any of its principals, officers, directors, investors, owners, partners, and employees (collectively, Respondent Personnel);

(c) any spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of residence of any Respondent Personnel;

(d) any affiliate or client; or

(e) any Subcontractor with:

• any employee, contractor, or representative of SOAH (including the Chief ALJ, and/or CFO); or

• SOAH vendors. Current Contracts/Purchase Orders can be located at: https://www.soah.texas.gov/reports-and-publications.

Additionally, any such relationship that might be perceived or represented as a conflict must be disclosed. Failure to disclose any such relationship may be a cause for disqualification of a Proposal.

4.7. FINANCIAL SOLVENCY

1. Each Respondent must provide evidence of financial responsibility and stability for performance of the Contract and must…