ESBD_538112_1784049913883_RFQ 458-E260682 Internal Audit Services.pdf

TABC 06.15.2026 RFQ No. 458-E260682 Page 1 of 24

REQUEST FOR QUALIFICATIONS

RFQ No. 458-E260682

Internal Audit Services

NIGP Class/Item:

• 946-20 Audit Services

Date of Release: July 14, 2026

Responses Due: August 12, 2026, at 5:00 pm Central Daylight Time

TABC 06.15.2026 RFQ No. 458-E260682 Page 2 of 24

ARTICLE I. EXECUTIVE SUMMARY, DEFINITIONS, AND AUTHORITY

1.1 EXECUTIVE SUMMARY

1.2 DEFINITIONS

1.3 AUTHORITY

ARTICLE II. SCOPE OF WORK AND AWARD

2.1 SCOPE OF WORK

2.2 CONTRACT AWARD, TERM, AND AMOUNT

2.3 NO GUARANTEE OF VOLUME, USAGE OR COMPENSATION

ARTICLE III. ADMINISTRATIVE INFORMATION

3.1 SCHEDULE OF EVENTS

3.2 TABC CHANGES, AMENDMENTS, OR MODIFICATIONS TO THE

SOLICITATION

3.3 IRREGULARITIES IN THE SOLICITATION

3.4 INFORMALITIES IN A SOLICITATION RESPONSE

3.5 COMMUNICATIONS RELATED TO THIS SOLICITATION

3.6 SUBMITTING A SOLICITATION RESPONSE

3.7 SOLICITATION RESPONSE SUBMISSION AND DELIVERY

ARTICLE IV. SOLICITATION RESPONSE EVALUATION AND AWARD PROCESS .. 15

4.1 EVALUATION CRITERIA

4.2 INITIAL COMPLIANCE SCREENING

4.3 COMPETITIVE RANGE AND BEST AND FINAL OFFER

4.4 ORAL PRESENTATIONS AND SITE VISITS

4.5 QUESTIONS OR REQUESTS FOR CLARIFICATION BY THE TABC

ARTICLE V. NARRATIVE PROPOSAL

5.1 NARRATIVE PROPOSAL

ARTICLE VI. REQUIRED RESPONDENT INFORMATION

6.1 COMPANY INFORMATION

6.2 MAJOR SUBCONTRACTOR INFORMATION

6.3. VETHUB SUBCONTRACTING

6.4 LITIGATION AND CONTRACT HISTORY

6.5 CONFLICTS OF INTEREST

6.6 AFFIRMATIONS AND CERTIFICATIONS

ARTICLE VII. COST PROPOSAL

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7.1 COST PROPOSAL

ARTICLE VIII. GENERAL TERMS AND CONDITIONS

8.1 GENERAL CONDITIONS

8.2 INSURANCE

ARTICLE IX. SUBMISSION CHECKLIST

1. NARRATIVE PROPOSAL AND RESPONDENT INFORMATION AND FORMS . 24

2. COST PROPOSAL (Section 7.1) ____

3. VETHUB SUBCONTRACTING PLAN (HSP) (Exhibit C & Section 6.3) ____ 24

4. EXHIBITS REQUIRING EXECUTION ARE INDICATED WITH AN ASTERISK

BELOW

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

TABC 06.15.2026 RFQ No. 458-E260682 Page 4 of 24

ARTICLE I. EXECUTIVE SUMMARY, DEFINITIONS, AND AUTHORITY

1.1 EXECUTIVE SUMMARY

The Texas Alcoholic Beverage Commission (“TABC”) seeks to contract with one or more qualified Vendor(s) to perform various types of audit and audit related services in accordance with the Scope of Work (“SOW”) herein as Article II Sub- Section 2.1.

To be considered for this award, Respondents must execute: Exhibit A – Respondent Affirmations and Solicitation Acceptance attached hereto and incorporated herein in their entirety for all purposes and must provide all other required information and documentation as set forth in this Request for Qualifications (“RFQ” or “Solicitation”).

1.2 DEFINITIONS

Definitions in Exhibit B – TABC Uniform Terms and Conditions, shall apply upon execution of any Contract awarded pursuant to this RFQ.

As used in this Solicitation, unless the context clearly indicates otherwise, the following terms and conditions have the meanings assigned below:

“Addendum” means a written clarification or revision to this Solicitation, issued by the TABC.

“Audit” means the systematic, objective evaluation of an organization’s financial records, operations, or procedures.

“Auditor” means a certified professional and objective evaluator who conducts audits.

“Business Day” means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of Texas or is a nationally recognized federal bank holiday.

“Calendar Day” means every consecutive day on the calendar, including weekends (Saturday/Sunday) and public holidays.

“Contract” means the document memorializing the agreement between TABC and the Vendor to perform the SOW described in this Solicitation.

“ESBD” means the Electronic State Business Daily, the electronic marketplace where state of Texas bidding opportunities over $25,000 are posted; located here.

“Point of Contact” or “POC” means the TABC Purchaser named in Paragraph 3.5.1 below.

https://www.txsmartbuy.com/esbd https://www.txsmartbuy.gov/esbd

TABC 06.15.2026 RFQ No. 458-E260682 Page 5 of 24

“Request for Qualifications” or “RFQ” or “Solicitation” means this entire posting, including Exhibits and Addenda, if any, and the terms are interchangeable.

“Respondent” means the entity responding to this Solicitation.

“Response” or “Solicitation Response” means a Respondent’s complete submission pursuant to this RFQ, and the terms are interchangeable.

“Scope of Work” or “SOW” refers to documentation defining tasks, deliverables, and timelines described in this Solicitation.

“State” means the State of Texas and its instrumentalities, including the TABC and any other state agency, and the officers, employees, or authorized agents thereof.

“Texas Alcoholic Beverage Commission” or “TABC” means the administrative agency established under the Texas Alcoholic Beverage Code, or its designee.

“Vendor” means the entity contracted to perform the services described in this Solicitation.

“VetHUB” means Historically Underutilized Business, as defined by Chapter 2161 of the Texas Government Code; located here.

“VetHUB Subcontracting Plan” or “HSP” means written documentation regarding the use of subcontractors, required to be submitted with all Responses to state agency Contracts with a potential value of $100,000 or more, where subcontracting opportunities have been determined by the state agency to be probable. The HSP subsequently becomes a provision of any Contract awarded and shall be monitored for compliance by the state agency during the term of the Contract and any extensions.

1.3 AUTHORITY

The TABC is soliciting the services listed herein under Title 10, Subtitle D of the Texas Government Code, State Purchasing and General Services and the Texas Alcoholic Beverage Code.

https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm

TABC 06.15.2026 RFQ No. 458-E260682 Page 6 of 24

ARTICLE II. SCOPE OF WORK AND AWARD

2.1 SCOPE OF WORK

The Scope of Work (“SOW”) is incorporated herein in its entirety.

2.1.1 Introduction and Background

TABC is the state agency responsible for regulating all aspects of the alcoholic beverage industry in the state and ensuring compliance with the Texas Alcoholic Beverage Code.

The Texas Internal Auditing Act, Chapter 2102, Texas Government Code (the Act) requires state agencies to conduct an internal auditing program that provides independent analyses, appraisals, and recommendations about the adequacy and effectiveness of the agency’s systems of internal control policies and procedures and the quality of performance in carrying out assigned responsibilities. TABC has determined that outsourcing the internal audit function provides the best value to the agency and to the State to satisfy the requirements of the Act.

2.1.2 Business Goals and Objectives

TABC seeks to enter into a contract with a qualified Vendor to serve as the agency’s internal auditor and provide internal audit services as specified in the Act and this SOW. The awarded Vendor shall be responsible for the delivery of the SOW and compliance with the Act and any requirements established by the Texas State Auditor. TABC intends to award one or more Contracts pursuant to this Solicitation.

The successful respondent must be responsible for organizing, managing, and implementing all aspects of the internal audit function at TABC including preparing an annual risk assessment, Internal Audit Plan, and Internal Audit Annual Report;

conducting periodic audits and producing audit reports; and communicating with the Commission and TABC.

Data security is critical. All records must be protected for confidentiality, integrity, and availability at rest, in transit, and in motion. Vendors must comply with Texas Business and Commerce Code § 521.053 regarding data breach notifications and implement measures to prevent unauthorized access, data corruption, and denial-of-service attacks. Certain requirements are mandated by statute; others may be negotiated during contract finalization.

2.1.3 Specifications and Requirements

The scope of work to be performed is identified by the requirements listed below.

The Respondent must describe how these requirements will be met. The

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Respondent must also describe any TABC resources needed to meet these requirements.

2.1.3.1 Scope of Services

The Successful Respondent shall be responsible for the following:

A. Conducting Annual Risk Assessment B. Developing Annual Internal Audit Plan C. Conducting periodic audits of TABC’s major systems and controls, determined by the annual internal audit plan, including but not limited to account systems and controls, administrative systems and controls, and information technology systems and controls.

D. Producing drafts and final reports of periodic audits, the annual Internal Audit Report, and periodic status updates.

E. Performing special audits or consultations outside of the scope of the originally approved internal audit plan if approved by the Commission at the hourly rates provided in the contract.

F. Participating in scheduling meetings, conferences or similar communication requirements.

G. Presenting to the Commission.

2.1.3.2 Deliverables

A. For the purpose of this RFQ any Audit Services Schedule deadlines will be agreed upon by the TABC and the contractor in writing at the initiation of the audit work, including but not limited to:

i. Risk Assessment

ii. Annual Internal Audit Plan

iii. Audit Fieldwork

iv. Draft and final reports

v. Annual Internal Audit Report

vi. Status updates on outstanding items

B. Request for a revised schedule must be reviewed and approved by TABC in writing before the revised schedule is implemented.

C. The requirements, specifications, and acceptance criteria for deliverables in the engagement shall be defined by and approved in writing by TABC before work is initiated, including the evaluation criteria for successful completion and acceptance. The evaluation criteria shall include but is not limited to completeness, accuracy, and quality of the deliverable.

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D. Any changes or modification in deliverable requirements or specifications shall be made and agreed upon in writing by both the TABC and Contractor.

2.1.4 Status Reports and Meetings

Communication requirements, including but not limited to, periodic meetings and status reports to evaluate the progress and quality of work performed throughout the contract, will be agreed upon by the TABC and Contractor in writing at the initiation of the audit work.

2.1.5 Key Personnel

Respondent must include the credentials of key staff responsible for Internal Audit Services. Those credentials must include but are not limited to the following:

degrees and all other pertinent training information, experience in the field (total years of experience and years of experience with Respondent), certifications, and familiarity with the Scope of Work to be provided. Identify key persons by name and title and describe the primary work assigned as associated with this contract.

Key Personnel cannot be removed or substituted without prior approval from

TABC.

2.1.6 Proof of Financial Stability

Respondent must provide certified financial statements for the current fiscal year to date and the immediate past fiscal year.

2.1.7 Work Product; Other Materials

All Work Product shall be owned by TABC. TABC shall have all rights, titles, and interest in and to the Work Product, including all copies made as a result of any contract that may result from this Solicitation. Each and every report, draft, work product, and other document reproduced, prepared, or caused to be prepared by the Successful Respondent pursuant to or in connection with any contract that may result from this Solicitation shall be the exclusive property of TABC.

For the purposes of the RFQ, the term “Work Product” is defined as all work papers, materials, approaches, designs, specifications, systems, software, programs, source code, documentation, methodologies, concepts, intellectual property, or other property and/or results of the services that are developed, produced, generated, or provided to the TABC in connection with, or as a result of, the services provided under any contract that may result from this solicitation.

2.1.8 Respondent Requirements

Qualified respondents are invited to submit proposals in accordance with this RFQ.

Proposals must address all specifications. The Successful Respondent must be

TABC 06.15.2026 RFQ No. 458-E260682 Page 9 of 24 liable, both individually and severally, for the performance of all duties under any contract that may result from this solicitation. The Successful Respondent shall be the sole point of contract responsibility. TABC must look solely to the Successful Respondent for the performance of any contract that may result from this Solicitation.

The services and work product required by any contract that may result from this Solicitation shall be performed only by the Successful Respondent, Successful Respondent’s staff, and Successful Respondent’s subcontractors listed on the

HSP.

2.2 CONTRACT AWARD, TERM, AND AMOUNT

2.2.1 Contract Award and Execution

The TABC intends to award one or more Contract pursuant to this Solicitation. Any award is contingent upon approval of TABC Executive Director Thomas Graham or other TABC Authorized Signatory.

If, for any reason, a final Contract cannot be executed with the selected Respondent within 60 (sixty) days of the issuance of the Notice of Award, the TABC may negotiate with the next highest scoring Respondent; or may withdraw or modify this RFQ, including making a partial award.

2.2.2 Contract Term

The TABC anticipates the initial term of any Contract resulting from this Solicitation shall be from date of award through August 31, 2027. The TABC, at its sole option, may extend any Contract awarded pursuant to this Solicitation for up to four (4) additional one (1) year renewal periods.

2.2.3 Contract Amount

The total compensation for services in the SOW, including any extensions, shall not exceed $300,000 (THREE-HUNDRED AND THOUSAND DOLLARS).

However, notwithstanding the preceding, the TABC reserves the right to increase the amount of the award if additional state or federal funding becomes available during the term of the Contract and any extensions.

2.3 NO GUARANTEE OF VOLUME, USAGE OR COMPENSATION

The TABC makes no guarantee of volume, usage, or total compensation to be paid under any Contract awarded hereunder, which is subject to appropriations and the continuing availability of funds.

The TABC reserves the right to cancel this Solicitation at any time prior to making an award; or to make a partial award; or to decline to make any award whatsoever, in its sole discretion.

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ARTICLE III. ADMINISTRATIVE INFORMATION

3.1 SCHEDULE OF EVENTS

EVENT DATES AND TIMES

Request for Qualifications Solicitation Posted to

ESBD

July 14, 2026

Questions and Requests for Clarification – Submission to TABC Deadline

July 24, 2026

Responses to Questions or Clarifications – Addendum posted by TABC on ESBD

July 31, 2026

Respondence Proposals Due Date –

RESPONSES MUST BE RECEIVED BY THE

TABC BY OR BEFORE THIS DAY AND TIME

August 12, 2026, at 5:00 pm Central Daylight Time

Evaluation Period August 13 - 25, 2026

Respondent Onsite Interviews (part of the evaluation period)

To Be Determined, during available times on:

August 18, 2026 August 19, 2026 August 20, 2026

Anticipated Date for Notice of Award (TABC Commission must approve award recommendation)

September 24, 2026

Anticipated Contract Start Date October 1, 2026 or after

Note: The dates above are tentative. TABC reserves the right to modify them at any time by notice posted to the ESBD. Any dates occurring after the Deadline for Submissions are subject to revision, in the sole discretion of the TABC, to dates earlier or later than shown, without notification on the

ESBD.

3.2 TABC CHANGES, AMENDMENTS, OR MODIFICATIONS TO THE SOLICITATION

TABC reserves the right to change, amend, or modify any provision of this Solicitation, or to withdraw it at any time prior to award if determined to be in the best interest of the state. Revisions will be posted on the ESBD, and it is the responsibility of Respondents to check the ESBD periodically to ensure full compliance with the requirements of this Solicitation and any Addenda.

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Respondents shall rely only on written statements issued by or through the TABC concerning this Solicitation and revisions to it, if any.

3.3 IRREGULARITIES IN THE SOLICITATION

Any irregularities or lack of clarity in this Solicitation should be brought to the attention of the Point of Contact listed in Paragraph 3.5.1 below, as soon as possible, so that correct or clarified information can be furnished to all prospective Respondents.

3.4 INFORMALITIES IN A SOLICITATION RESPONSE

The TABC reserves the right to waive minor informalities in a Solicitation Response if determined to be in the best interest of the state. A "minor informality" is an omission or error that, in the TABC's sole determination, would not give a Respondent an unfair advantage over other Respondents or result in a material change in the Solicitation Response or the requirements of this Solicitation, if waived or modified during evaluation.

3.5 COMMUNICATIONS RELATED TO THIS SOLICITATION

3.5.1 Point of Contact (“POC”)

All questions and requests for clarification and all other communication about this Solicitation shall be sent by electronic mail directly to the TABC's Solicitation Responses inbox with a copy to the TABC Purchaser named below.

Questions concerning preparation of the VetHUB Subcontracting Plan should also be submitted as directed here.

Primary Point of Contact Name: Casey Heideman, CTCD, CTCM Title: TABC Purchaser and VetHUB Coordinator Email to: Solicitation.Responses@tabc.texas.gov w/copy to: Casey.Heideman@tabc.texas.gov

Alternate Point of Contact Name: Kate Lype, CTCD, CTCM Title: TABC Procurement Manager Email to: Solicitation.Responses@tabc.texas.gov w/copy to: Kate.Lype@tabc.texas.gov

3.5.2 Prohibited Communication

Upon issuance of this Solicitation, neither the TABC nor its representatives or partners will answer any questions or otherwise discuss this Solicitation with potential Respondents or their representatives, except as described in mailto:Solicitation.Responses@tabc.texas.gov mailto:Casey.Heideman@tabc.texas.gov mailto:Solicitation.Responses@tabc.texas.gov mailto:Kate.Lype@tabc.texas.gov

TABC 06.15.2026 RFQ No. 458-E260682 Page 12 of 24

Paragraphs 3.5.1, 3.5.4, and 3.5.5 hereof. Asking questions by phone or in person is strictly prohibited and attempts to do so will not be allowed or recognized as valid. This prohibition does not preclude communication between or among affected parties required to conduct business unrelated to the Solicitation.

Failure to comply with this prohibition may result in Respondent's disqualification.

3.5.3 Exception

The only exception to the single point of contact is the VetHUB Coordinator. Should respondents have questions regarding proper completion of the VetHUB Subcontracting Plan, the VetHUB Coordinator may be contacted at Casey.Heideman@tabc.texas.gov with a copy to the alternate point of contact listed above.

3.5.4 Required Format for Questions

Questions must be submitted by email to the two addresses listed as the Primary Point of Contact listed in Paragraph 3.5.1. Please include your company’s name, address, phone number, email address, and the name of your contact person when submitting questions. Respondent names will be removed from questions if released with a TABC response.

Use the following format to submit questions to avoid rejection:

a) RFQ No. 458-E260682

b) Section Number

c) Paragraph Number

d) Page Number

e) Text of the passage being questioned

f) Question

3.5.5 Communication Deadline

Respondents must notify the TABC POC of any ambiguities, conflicts, discrepancies, exclusionary specifications, omissions, or other errors noted in the Solicitation. Such notifications, as well as all questions, must be received by the TABC by the Deadline for Questions in the Schedule of Events in Section 3.1.

Notwithstanding the preceding, the TABC, in its sole discretion, may respond to communications received after the deadline.

If a Respondent fails to properly and timely notify the POC of such issues, the Respondent submits a Solicitation Response at its own risk. If awarded a Contract, such Respondent: (1) shall have waived any claim of error or ambiguity in the Solicitation and any resulting Contract, (2) shall not contest the interpretation by TABC of any such provision(s), and (3) shall not be entitled to additional compensation relief or time, by reason of ambiguity, error, or later correction.

mailto:Casey.Heideman@tabc.texas.gov

TABC 06.15.2026 RFQ No. 458-E260682 Page 13 of 24

3.5.6 TABC Responses to Questions

TABC responses to questions may be posted on the ESBD. The TABC reserves the right to amend any answers that were posted prior to the deadline for submission of Solicitation Responses. It is the responsibility of each Respondent to check the ESBD for TABC communications which may affect the RFQ, the Solicitation Response, or the solicitation process. The TABC reserves the right to decline to answer any question or to provide a consolidated answer to questions selected for response.

3.6 SUBMITTING A SOLICITATION RESPONSE

3.6.1 Generally

Respondents shall submit by email an original Proposal with all required documents; Respondent information; and an original Cost Proposal; with each document marked “Original.” Failure to submit all required documents in the required format(s) and properly labeled, may result in disqualification of the Response without further consideration. Responses to this Solicitation must clearly and concisely represent Respondent’s qualifications and capabilities to perform the services required under this Solicitation.

The TABC, in its sole discretion, may reject any or all proposals or portions thereof.

3.6.2 Submission in Separate Parts

Sections of the Solicitation Responses must be submitted as separate documents and, if necessary, may be transmitted in more than one email, grouped as follows:

• Original Proposal and Respondent Information

• Original Cost Proposal

NOTE: If your Response will be submitted in more than one email, please assign numbering to account for them all (e.g., 1 of 3; 2 of 3; 3 of 3, etc.).

TABC file size receipt limit to Solicitation.Responses@tabc.texas.gov is 153.6 mB and 51.2 mB to individual staff email addresses.

To ensure that TABC receives your entire Response for evaluation and that no files are lost in transmission, you must also send a separate confirmation email to the TABC POC stating that you submitted your Response by the deadline in the Schedule of Events.

The confirmation email must include: (a) the subject line of each email sent; (b) the title of each document attached to each email; and (c) the time and to whom each email was sent.

mailto:Solicitation.Responses@tabc.texas.gov

TABC 06.15.2026 RFQ No. 458-E260682 Page 14 of 24

3.6.3 Supporting Documentation

If your Response requires supporting documentation for any reason, it must be provided with the Response, clearly labeled and cross-referenced to each tab, page, section, and/or paragraph to which it applies.

3.6.4 Exceptions

The TABC will more favorably evaluate Responses that offer no or few exceptions, reservations, or limitations to the terms and conditions of this Solicitation.

No exception, term, condition, or provision of a Solicitation Response that varies from or contradicts this Solicitation will be construed as affecting any contract awarded unless expressly added by the TABC, in writing.

Respondents should not assume that any term, condition, or provision of the Solicitation can or will be negotiated. Furthermore, all Responses constitute binding offers. Any Response that includes any disclaimer or other statement indicating that the Response is not a binding offer may be disqualified.

3.7 SOLICITATION RESPONSE SUBMISSION AND DELIVERY

3.7.1 Deadline to Respond

Solicitation Responses must be received electronically by TABC no later than the day and time specified in the Schedule of Events in Section 3.1.

3.7.2 Labeling

Responses shall be emailed to solicitation.responses@tabc.texas.gov with a copy to Casey.Heideman@tabc.texas.gov; and the email subject line shall be:

Response to RFQ 458-E260682 – Internal Audit Services

SOLICITATION: RFQ 458-E260682

SOLICITATION NAME: Internal Audit Services RESPONSE DEADLINE: August 12, 2026, 5:00 pm Central Daylight Time

Documents originally submitted as part of the Response must be clearly named and labeled “Original.”

It is solely the responsibility of Respondent to deliver a complete Response by the specified date and time with documents labeled as instructed. The TABC will not be responsible for the mishandling of any Response prior to its receipt by the

TABC.

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3.7.3 Delivery

Respondents are strongly encouraged to submit their Response prior to the deadline to ensure appropriate time for troubleshooting if files do not transmit properly.

NOTE: All Solicitation Responses become the property of the TABC upon receipt and will not be returned to Respondent.

3.7.4 Alterations, Modifications, and Withdrawals

Prior to the submission deadline, a Respondent may: (a) withdraw its Response by submitting a written request to the TABC POC; or (b) modify its Response by submitting a written amendment to the TABC POC. TABC may request additional information or modifications at any time after receiving a Response.

ARTICLE IV. SOLICITATION RESPONSE EVALUATION AND AWARD

PROCESS

4.1 EVALUATION CRITERIA

4.1.1 Conformance with State Law

Solicitation Responses shall be evaluated in accordance with Title 10, Subtitle D of the Texas Government Code and other applicable law. TABC is not obligated to accept the lowest priced Response but shall make an award to the Respondent that, in the sole judgement of the TABC, provides the best value to the State of Texas.

4.1.2 Minimum Qualifications

Respondents must meet the minimum qualifications listed below. Furthermore, Solicitation Responses that appear unrealistic in terms of technical commitment, that show a lack of technical competence, or that indicate a failure to comprehend the risk and complexity of a potential Contract may be rejected.

a) Respondent must have recently been in business for a minimum of five

(5) years, or the principals/owners must have had recent ownership/executive management experience in a previous company that provided Audit Services for a minimum of five (5) years for the last seven (7) years.

b) Respondents must have demonstrated experience in providing Audit Services. Respondents must provide a referral list of clients, with contact information for feedback on the company’s services and performance.

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c) Respondent must be financially solvent and adequately capitalized.

TABC may require audited or unaudited financial statements for the last two (2) years and/or a Dun and Bradstreet report as proof of Respondent financial solvency.

d) Respondent must be authorized to do business in the State of Texas.

e) Respondent should meet requirements within the Scope of Work herein as Article II Sub-Section 2.1.

4.1.3 Specific Criteria

Solicitation Responses shall be evaluated uniformly and scored in accordance with the following criteria:

a) Qualifications & Experience (40%)

b) Audit Methodology & Approach (30%)

c) References & Past Performance (20%)

4.1.4 Other Information

The TABC may contact any references provided, may contact Respondent's clients, or may solicit information from any available source including, but not limited to, the Texas Comptroller's Vendor Performance Tracking System.

Respondent should provide information on any type of industry standard feedback or awards to also include accreditation, certification, and/or industry partnerships.

The Respondent may be asked to provide a short demonstration of Tax ID Stamps or POS System. These will be submitted on a thumb drive or online viewing platform that TABC evaluators can review if needed.

4.2 INITIAL COMPLIANCE SCREENING

The TABC will perform an initial screening of all Solicitation Responses received.

Unsigned Responses and any that do not meet the minimum qualifications in Paragraph 4.1.2 above, or that do not include all required documents, forms, signatures, and information may be subject to rejection without further evaluation.

4.3 COMPETITIVE RANGE AND BEST AND FINAL OFFER

The TABC may determine that certain Responses are within the competitive range and may use this range to award multiple contracts or as a basis to request a Best and Final Offer (“BAFO”) from select Respondents. If the TABC elects to limit award consideration to a competitive range, the competitive range will consist of the Responses that receive the highest or most satisfactory ratings based on the published evaluation criteria and procedures governing this procurement. The TABC, in the interest of administrative efficiency, may place reasonable limits on the number of Solicitation Responses that will be included in the competitive range.

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The TABC may, at its discretion, request that any or all Respondents provide a BAFO. A request for a BAFO from TABC does not guarantee an award or further negotiations.

4.4 ORAL PRESENTATIONS AND SITE VISITS

The TABC may require an oral presentation from any or all Respondents.

Respondents will be given advance notice of any oral presentation and are responsible for their own presentation equipment. Failure to participate in a requested presentation may eliminate a Respondent from further consideration.

The TABC is not responsible for any costs incurred by the Respondent in preparation for an oral presentation.

The TABC may make site visits to any or all Respondents. The TABC will notify selected Respondents of the time and location of any planned site visits. Failure to permit or participate in the site visit may eliminate the Respondent from further consideration. The TABC is not responsible for any costs incurred by the Respondent in preparation for any site visit.

4.5 QUESTIONS OR REQUESTS FOR CLARIFICATION BY THE TABC

The TABC reserves the right to ask questions or request clarification from any Respondent at any time during the Solicitation process, including during oral presentations, site visits, or during the BAFO process.

TABC 06.15.2026 RFQ No. 458-E260682 Page 18 of 24

ARTICLE V. NARRATIVE PROPOSAL

5.1 NARRATIVE PROPOSAL

5.1.1 Executive Summary

Respondents must provide a high-level overview of their approach to meeting the requirements in the SOW in Section 2.1. The summary must demonstrate an understanding of the TABC's goals and objectives under this Solicitation.

5.1.2 Project Work Plan

Respondents must describe their proposed processes and methodologies for providing all components of the SOW in Section 2.1. Respondent should identify all tasks to be performed, including all project activities, equipment to be used, materials, and other products, services, and reports to be generated during the contract period.

In addition, Respondent must provide samples of at least three (3) other projects of similar complexity. Failure to document comparable projects may result in disqualification.

5.1.4 Key Staffing Profile

Respondent must provide a key staffing profile and resume for staff who will be responsible for the performance of the services requested under this Solicitation.

ARTICLE VI. REQUIRED RESPONDENT INFORMATION

6.1 COMPANY INFORMATION

Respondent must provide satisfactory evidence of its ability to manage and coordinate the types of activities described in this Solicitation, including in the SOW in Section 2.1, and to produce the specified goods or services on time.

Respondent must also provide the following information:

6.1.1 Company Narrative

Provide a detailed narrative explaining why Respondent is qualified to provide the services in the SOW, focusing on its company's key strengths and competitive advantages.

6.1.2 Company Profile

Provide a company profile which includes:

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a) A narrative and a graphical representation of the company’s ownership structure (corporation, partnership, LLC, or sole proprietorship), including any wholly owned subsidiaries, affiliated companies, or joint ventures. If Respondent is an affiliate of, or has a joint venture or strategic alliance with, another company, Respondent must identify the percentage of ownership and the percentage of the parent’s ownership. The entity performing the majority of the services under a contract must be the primary bidder, throughout the term of the contract. Finally, please provide your proposed operating structure for the services requested under this Solicitation and which entity or entities (i.e., parent company, affiliate, joint venture, subcontractor) will perform them;

b) If incorporated, indicate the state where the company is incorporated, the date of incorporation, and the year in which the company was founded and/or incorporated;

c) The location of company headquarters and any field offices that may provide services for any contract resulting from this Solicitation;

d) The number of employees in the company, both locally and nationally, and the locations from which employees will be assigned;

e) The name, address, and telephone number of Respondent’s point of contact for any contract resulting from this Solicitation; and

f) Whether the company has ever been engaged under a contract by any Texas state agency. If “yes,” specify when, for what duties, and for which agency.

Note: If Respondent is an out-of-state company, a Certificate of Authority from the Texas Secretary of State to do business in Texas must be provided, as well.

6.2 MAJOR SUBCONTRACTOR INFORMATION

Respondent must identify any major subcontractors to be utilized in performing 15% (fifteen percent) or more of any contract. Respondent must indicate whether Respondent holds a financial interest in any major subcontractor so listed. It may be required as a condition of award that an authorized officer or agent of each proposed major subcontractor sign a statement affirming that the subcontractor has read and will agree to abide by Respondent's obligations under any contract awarded pursuant to this Solicitation.

6.3. VETHUB SUBCONTRACTING

Respondent must submit a VetHUB Subcontracting Plan (HSP) attached hereto as Exhibit C and include all supporting documentation in accordance to the HSP.

All respondents must submit an HSP as part of their Proposal response, and those who fail to do so or submit an incomplete HSP will be rejected based on non-

TABC 06.15.2026 RFQ No. 458-E260682 Page 20 of 24 compliance per Government Code 2165.25, and those Respondents are not eligible for contract award.

For the most up to date information regarding the VetHUB certification program, please see https://comptroller.texas.gov/purchasing/vendor/hub/.

6.4 LITIGATION AND CONTRACT HISTORY

Respondent must include in its Solicitation Response complete disclosure of any alleged or proven significant contractual failures. In addition, Respondent must disclose its involvement in any civil or criminal litigation or investigation during the past five (5) years in which Respondent was found guilty or liable, including any such allegations currently pending.

The respondent must also disclose any settlement agreements entered into during the last five (5) years related to alleged contractual failures. Failure to provide all required information may disqualify Respondent. Solicitation Responses may be rejected based on Respondent's prior history with the state of Texas or with any other party that demonstrates, without limitation, unsatisfactory performance, adversarial or contentious demeanor, or significant failure to meet contractual obligations.

6.5 CONFLICTS OF INTEREST

Respondent must certify that it has no personal or business interests that present a conflict of interest with respect to the RFQ and any resulting contract. If applicable, Respondent must also disclose all potential conflicts of interest.

Respondent must describe the measures it will take to ensure that there will be no actual conflict of interest and that its fairness, independence, and objectivity will be maintained. The TABC will determine to what extent, if any, a potential conflict of interest can be mitigated and managed during the term of the contract. Failure to identify actual and potential conflicts of interest may result in disqualification of a Solicitation Response or the termination of any contract awarded pursuant to this

RFQ.

Please include any activities of any affiliated or parent organizations and individuals who may be assigned to this Contract.

6.6 AFFIRMATIONS AND CERTIFICATIONS

Respondent must complete and return all the following listed forms, attached hereto and incorporated herein in their entirety for all purposes:

a) Exhibit A – Respondent Affirmations and Solicitation Acceptance

b) Exhibit C – VetHUB Subcontracting Plan (HSP) https://comptroller.texas.gov/purchasing/vendor/hub/

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ARTICLE VII. COST PROPOSAL

7.1 COST PROPOSAL

As noted above, Cost Proposals must be submitted separately and apart from, and be excluded from, Respondent's Information and Narrative proposal.

Cost proposals shall include all costs for labor, materials, tools, supplies, equipment, personnel travel and associated and incidental costs necessary to provide the products and services according to the minimum specifications, requirements, provisions, terms, and conditions set forth in this RFQ and all Exhibits.

Depending on overall project funding and cost of solution, TABC may alter the amount deemed for the services.

Cost will not be part of the weighted score for this Request for Qualifications.

However, respondent must provide their hourly rate and the number of hours expected to complete each type of audit or review listed in Article II. These rates will be reviewed for reasonableness and TABC reserves the right to disqualify a respondent if the rate listed is unreasonable or outside of the TABC budget for the services proposed. This does not preclude TABC from negotiating a lower hourly rate or a fixed rate per audit with the selected respondent.

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ARTICLE VIII. GENERAL TERMS AND CONDITIONS

8.1 GENERAL CONDITIONS

8.1.1 Solicitation Amendments

The TABC reserves the right to alter, amend, or modify any provision of this Solicitation, or to withdraw it entirely at any time prior to award, if determined to be in the best interest of the state.

8.1.2 Offer Period

Solicitation Responses shall be binding for 60 (sixty) days after the deadline for submission listed in the Schedule of Events in Section 3.1 hereof. Respondents may extend the time during which their Response will be honored but may not shorten it. Upon contract execution, prices agreed upon by the Respondent are an irrevocable offer for the term of the contract and any extensions. No other costs, rates, or fees shall be due or payable to the Respondent unless expressly agreed upon in writing by the TABC.

8.1.3 Costs Incurred

Respondents understand that the issuance of this Solicitation in no way constitutes a commitment by any TABC division or employee to award a contract or to pay any costs incurred by a Respondent in preparing a its Response. The TABC is not liable for any costs incurred by a Respondent prior to issuance, execution, or entrance into a formal agreement, contract, or purchase order. Costs of developing Solicitation Responses, preparing for or participating in oral presentations and site visits, or any other expenses incurred by a Respondent are entirely the responsibility of the Respondent, and will not be reimbursed in any manner by the state of Texas.

8.1.4 Contract Responsibility

The TABC will look solely to Respondent for the performance of all contractual obligations resulting from an award made pursuant to this Solicitation. Respondent shall not be relieved of the responsibility for its obligations based on nonperformance by any of its subcontractors.

8.1.5 Public Information Act

Solicitation Responses are subject to the Texas Public Information Act (“PIA”), Texas Government Code Chapter 552, and may be disclosed to the public upon request. Subject to the PIA, certain information may be protected from public release. Respondents who wish to protect portions of their Solicitation Response from public disclosure should familiarize themselves with relevant law or consult an attorney. Information in the Solicitation will be withheld or released in strict accordance with the PIA.

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8.2 INSURANCE

8.2.1 Required Coverage

For the duration of any Contract resulting from this Solicitation, Respondent shall acquire insurance, bonds, or both if applicable, with financially sound and reputable independent insurers, in the type and amount customarily carried within the industry. Failure to maintain insurance coverage or acceptable alternative methods of insurance shall be deemed a breach of contract.

8.2.2 Alternative Insurability

Notwithstanding the requirements of Paragraph 8.2.1 above, TABC reserves the right to consider reasonable alternative methods of insuring any contract awarded pursuant to this Solicitation. It is Respondent's responsibility to submit to TABC alternative methods of insuring the contract, accompanied by a detailed explanation regarding Respondent's inability to obtain the required insurance and/or bonds ordinarily carried in the industry. The TABC shall judge the adequacy of any alternative form of insurance coverage submitted, and the final decision concerning adequacy shall be in the sole discretion of the TABC.

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ARTICLE IX. SUBMISSION CHECKLIST

This checklist is provided for convenience only and identifies documents which are requested in this Solicitation.

Original Solicitation Response Package

The Solicitation Package must include the Original Solicitation Response consisting of three parts, described in detail below. Each of the three main parts should be in separate electronic files, clearly labeled.

1. NARRATIVE PROPOSAL AND RESPONDENT INFORMATION AND FORMS

a. Narrative Proposal (Section 5.1) ____

b. Company Information (Section 6.1) ____

c. Major Subcontractor Information (Section 6.2) ____

d. Litigation and Contract History (Section 6.4) ____

e. Conflicts (Section 6.5) ____

f. Respondent Affirmations and Solicitation

Acceptance (Section 6.6) ____

g. Addenda to RFQ (Section 3.1) ____

2. COST PROPOSAL (Section 7.1) ____

3. VETHUB SUBCONTRACTING PLAN (HSP) (Exhibit C & Section 6.3) ____

4. EXHIBITS REQUIRING EXECUTION ARE INDICATED WITH AN ASTERISK

BELOW

a. They must be completed, signed, and returned to TABC at this time. All Exhibits are incorporated herein either physically or by reference in their entirety for all purposes and will also be incorporated into any resulting Contract. Documents may be signed electronically or submitted with a scanned signature.

• EXHIBIT A – RESPONDENT AFFIRMATIONS AND SOLICITATION

ACCEPTANCE*

• EXHIBIT B – TABC UNIFORM TERMS AND CONDITIONS

• EXHIBIT C – VETHUB SUBCONTRACTING PLAN WITH

INSTRUCTIONS*

2.3 NO GUARANTEE OF VOLUME, USAGE OR COMPENSATION