ESBD_File_280140_RFP 228a Utility Appraisal Consulting 4-6-22.docx

GLENN HEGAR

TEXAS COMPTROLLER OF PUBLIC ACCOUNTS

Request for Proposals (RFP No. 228a) for Utility Appraisal Consulting Services for the Texas Comptroller of Public Accounts

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TABLE OF CONTENTS

PART I

GENERAL INFORMATION

1.1 Introduction

The Texas Comptroller of Public Accounts (“Comptroller” or “CPA”) issues this Request for Proposals No. 228a (the “RFP”) to solicit proposals from qualified, independent consultants to conduct a review and analysis of primary and secondary resources on the identification and valuation of intangible property, as described in this RFP. All requisite services are referred to as “Services” and are more fully described in Part II (Scope of Work). Each individual or firm submitting a proposal in response to this RFP (“Proposal”) shall be referred to as a “Respondent.” It is expected that one award will be made from this RFP. The selected Respondent, if any, are hereinafter referred to collectively as the “Successful Respondent.”

As a result of this RFP, Comptroller anticipates executing a contract with the Successful Respondent to perform the Services (the “Contract”). Successful Respondent, as an independent contractor, shall provide Services under the Contract with its own personnel.

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

1.2 Background

The Comptroller is required to conduct a study using comparable sales and generally accepted auditing and sampling techniques to determine the total taxable value in each school district.[footnoteRef:2] The purpose of this study it to ensure equity among taxpayers in the burden of school district taxes and among school districts in the distribution of state financial aid for public education.[footnoteRef:3] [2: Tex. Gov’t Code §403.302(a)] [3: Tex. Gov’t. Code §403.301]

For the purposes of the study, “taxable value” is defined as the market value of all taxable property less a list of deductions in Section 403.302(d) of the Texas Government Code. Although the Texas Constitution authorizes the taxation of intangible personal property,[footnoteRef:4] most intangibles are exempt from taxation[footnoteRef:5] or excluded from the value of real property.[footnoteRef:6] This means that intangible property must not be included in the taxable value determined though the study; however, in reality it is exceedingly difficult to agree upon what constitutes intangible property or how to distinguish the value contributed by intangible property to the overall valuation of associated real property. [4: Tex. Constitution, Art. VIII, Sec. 1(c)] [5: Tex. Tax Code §11.02] [6: Tex. Tax Code §23.014(2)]

Texas law defines intangible personal property a claim, interest (other than an interest in tangible property), right, or other thing that has value but cannot be seen, felt, weighed, measured, or otherwise perceived by the senses, although its existence may be evidenced by a document. It includes a stock, bond, note or account receivable, franchise, license or permit, demand or time deposit, certificate of deposit, share account, share certificate account, share deposit account, insurance policy, annuity, pension, cause of action, contract, and goodwill.[footnoteRef:7] While this appears to be instructive, the reality of identifying intangibles and distinctly determining their contributory value to the associated real property is much more complicated. [7: Tex. Tax Code §1.04(6)]

Comptroller is interested in an academic review of Texas law, industry publications, white papers, case law and other reputable sources on the identification and valuation of intangible property in the unit valuation of large properties.

PART II

SCOPE OF WORK

2.1 Service Description

2.1.1 The Study

The primary scope of work is to conduct a review and analysis of primary and secondary resources on the identification and valuation of intangible property in Texas and the United States, with a resulting report acceptable to Comptroller (“Study”).

Specifically, Successful Respondent will:

1. Identify primary and secondary source research related to identification and valuation of intangibles.

2. Analyze generally accepted appraisal methodologies and identify the benefits and limitations of each, with a specific eye to appraisal within Texas and under Texas law. Successful Respondent will also analyze and review when it is necessary to remove intangible value from an appraisal and the appropriate methods for identifying and removing value.

3. Review the resources and constraints available to Comptroller and make recommendations for applying any recommended methodologies within the constraints of Comptroller and Texas law. This will include the review of applicability of third-party appraisals and different appraisal methodologies or approaches.

4. Produce a written report on research and any findings to Comptroller for review and feedback. Successful Respondent must be available via internet-based video call for questioning and collaboration with Comptroller prior to issuing a final draft of the report.

2.1.2 Optional Scope 1

An optional scope of work that Respondents may choose to bid is the costs to conduct a review and analysis of primary and secondary resources on the identification and measurement of economic obsolescence (“EO”) in regulated utility properties in Texas and the United States, with a resulting report acceptable to Comptroller.

Specifically, Successful Respondent will:

1. Identify primary and secondary source research related to identifying, testing and valuing EO.

2. Analyze generally accepted methodologies to measure EO and identify the benefits and limitations of each, with a specific eye to appraisal within Texas and under Texas law.

3. Review the resources and constraints available to CPA and will make recommendations for applying any recommended methodologies within the constraints of CPA and Texas law.

4. Produce a written report on research and any findings to CPA for review and feedback. Successful respondent must be available for questioning and collaboration with CPA prior to issuing a final draft of the report.

2.1.3 Optional Scope 2

An optional scope of work that Respondents may choose to bid is the costs to conduct a review and analysis of CPA internal appraisal procedures for valuing utility and railroad properties in Texas, with a resulting report acceptable to Comptroller.

Specifically, Successful Respondent will:

1. Review and analyze CPA draft internal procedures for the unit valuation of utility property. The Successful Respondent may also review appraisals to observe and analyze the application of the procedures by CPA staff. The review should focus on the resources and constraints available to CPA and should make recommendations for clarifications and additions to CPA’s draft internal procedures.

2. Produce a written report on research and any findings to CPA for review and feedback. Successful Respondent must be available for questioning and collaboration with CPA prior to issuing a final draft of the report.

2.1.4 Additional Services

Comptroller may ask Successful Respondent to provide additional Services related to conducting a review and analysis of primary and secondary resources on the identification and valuation of intangible property and related to Optional Scope 1 and/or 2 if Respondent bids on either of these. For example, Successful Respondent may be asked to deliver presentations or testimony to the Texas legislature, at the State Office of Administrative Hearings (“SOAH”), or at similar locations within Texas on the research conducted. Alternatively, Comptroller may provide such presentations or testimony based on the report(s) provided by Successful Respondent.

2.2 Term of Contract; Sample Contract

If a Contract is awarded, the initial term of the Contract shall begin upon Comptroller’s execution of same, after having first been executed by Contractor, and terminate August 31, 2024. In accordance with the terms of the Contract, Comptroller has the option, in its sole discretion, to extend the contract for two (2) additional one (1) year periods through August 31, 2026.

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

2.3 Limitation of Authority

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

PART III

GENERAL INFORMATION

3.1 Authority

This RFP is issued pursuant to Chapter 403 and Chapter 2254, Subchapter B, of the Texas Government Code; and Section 403.302(a) of the Texas Government Code.

3.2 Comptroller Rights

In the best interest of Comptroller and the State, Comptroller, in its sole discretion, may amend or modify any provisions of this RFP, or withdraw this RFP at any time prior to award of a Contract. Comptroller reserves the right, in its sole discretion, to reject any or all submitted Proposals or to select one or more qualified Respondents to this RFP without discussion of Proposals with the respective Respondents.

The decision of Comptroller, or its designee with regard to the above, shall be administratively final. Comptroller, in its sole discretion, may waive administrative deficiencies and/or minor technicalities in Proposals received. All Proposals shall become a part of Comptroller’s official procurement files and may be available for public inspection upon execution of a Contract, if any.

3.3 Respondent Obligations

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

3.4 Successful Respondent Obligations

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

3.5 Schedule of Events

Comptroller anticipates that the selection of Successful Respondent and execution of the Contract, if any, will proceed according to the approximate schedule provided on the cover page of this RFP.

The times stated in this document refer to Central Time (“CT”), Austin, Texas, where appropriate. Comptroller’s regular office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday, except national and official State of Texas holidays. All deadlines are subject to change at Comptroller’s sole discretion.

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

3.6 Issuing Office

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

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

3.7 Submission of Questions

Respondents may submit questions by email to the Issuing Office no later than 2:00 p.m. by the deadline set forth in the Schedule of Events. Questions concerning this RFP must be in writing and addressed to the Issuing Office at the above email address. On or about the date set forth in the Schedule of Events, Comptroller expects to electronically post answers to the written questions on the ESBD located at: http://www.txsmartbuy.com/esbd.

3.8 Deadline for Submission of Proposals; Delivery Instructions

One electronic copy of the Proposal in searchable PDF format must be submitted to the email address in Section 3.6 (Issuing Office). The electronic copy must be received in the Issuing Office no later than 2:00 p.m. on the deadline set forth in the Schedule of Events. The email must be labeled with “RFP No. 228a Utility Appraisal Consulting Services” and include the name and address of Respondent in the body of the email.

Late Proposals will not be considered under any circumstances.

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

Faxed Proposals are not acceptable and will not be considered.

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

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

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

3.9 Confidential Information; Nondisclosure; Open Records

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

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

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

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

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

3.10 Media Releases

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

3.11 Non-exclusivity

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

3.12 Incorporation of Exhibits

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

PART IV

PROPOSAL FORMAT

4.1 Introduction

Each original Proposal and copy shall contain a cover sheet with the following: “RFP No. 228a Utility Appraisal Consulting Services” and the name and address of Respondent. Proposal pages must be numbered consecutively.

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

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

4.2 General Organization of Proposal Contents

Proposals must be organized as follows:

a) Transmittal Letter;

b) Executive Summary;

c) Table of Contents;

d) Respondent Identifying Information;

e) Proposed Subcontractor(s) Identifying Information;

f) Respondent Qualifications and Experience;

g) Proposed Personnel;

h) Respondent Narrative and Preliminary Work Plan;

i) Proposed Fee;

j) Insurance;

k) Financial Statements;

l) Execution of Proposal;

m) Historically Underutilized Businesses Subcontracting Plan;

n) Criminal Conviction Certification;

o) Nondisclosure Agreement;

p) Conflict of Interest Statement;

q) Certification Regarding Public Nature of the Proposal; and

r) Vendor Reference Questionnaire.

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

4.2.A Transmittal Letter

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

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

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

4.2.B Executive Summary

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

4.2.C Table of Contents

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

4.2.D Respondent Identifying Information

Respondent must provide the following identifying information:

· name and address of business entity submitting the Proposal;

· names of all owners, as such term is defined in Section 1.002(63) of the Texas Business Organization Code (also referred to herein as “principals”;

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

· state of incorporation or organization and principal place of business;

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

· name, address, business telephone number, cell phone number, email address, and fax number of Respondent’s principal contact person regarding the Contract;

· Respondent’s Federal Employer Identification Number (“FEIN” or “EIN”) and Texas Tax Identification/Registration Number, if any;

· all affiliated companies and subsidiaries, or any joint ventures or other affiliations;

· full name and address for each member, partner, and employee of Respondent (and any subcontractors) who will perform Services;

· detail of any Board of Public Accountancy disciplinary actions against the Respondent or proposed personnel;

· detail of any firm ownership changes which have occurred in the last five (5) years, including changes pending; and

· indicate whether it is currently a party to litigation in process; if so, identify the parties, jurisdiction, case number, and subject matter.

4.2.E Proposed Subcontractor(s) Identifying Information

The Proposal must identify any subcontractors and outline the contractual relationship between Respondent and each proposed subcontractor. Respondent must provide statements for each of its proposed attesting to the fact that the subcontractor will provide the Services as represented in Respondent’s Proposal. Each statement must be signed by an individual with legal authorization to obligate the subcontractor named in the statement. Proposed subcontractors may be required to submit ownership information similar to that required of Respondents in the Section above. Respondent must disclose, at Comptroller’s request, any information regarding proposed subcontractors.

4.2.F Respondent Qualifications and Experience

1. Experience

Respondent must include a detailed overview of Respondent’s experience providing the requisite services in its Proposal. Respondent must demonstrate its knowledge of and experience with activities relevant to the Services. Respondent must provide a detailed profile that describes the following:

a) the size and scope of all operations, including number of employees and years in business;

b) the general nature of previous similar work performed, particularly work in the last three (3) years;

c) depth and length of experience with state agencies; and

(6) any other information Respondent believes is pertinent to this RFP.

2. Cancellations or Terminations

Respondent must list all contracts or purchase orders that Respondent executed or accepted within the last three (3) years and which were canceled or terminated prior to completion by any state agency or other entity with which Respondent contracted. For each such contract or purchase order, Respondent must include a detailed explanation for the cancellation or termination and final resolution of the matter as well as the names and telephone numbers of each such agency's or firm’s contact person. If none, specify none.

4.2.G Proposed Personnel The Proposal must identify all key personnel who are to be part of the proposed team and detail their experience. Respondent must include in the Proposal resumes of all management, supervisory, and key personnel that will be involved in performing the Services, and must provide for each person:

· a full name (including full middle name);

· a five (5) year employment history;

· a specific description of relevant experience and skills that person has with appraisal services, that must include at least three (3) years of experience performing work similar to the required Services (limit to one page);

· professional certifications and licenses, especially including any of the following;

· Registered Professional Appraiser (“RPA”) issued by Texas Department of Licensing and Regulation

· MAI Membership Designation issued by the Appraisal Institute

· SPRA Membership Designation issued by the Appraisal Institute

· AI-GRS Membership Designation issued by the Appraisal Institute

· Certified Assessment Evaluator (“CAE”) issued by the International Association of Assessing Officers

· Licenses or certifications in ad valorem appraisal or general appraisal from other states

· a specific indication of what role the individual will have in this project;

· any of the following qualifications and experience:

· Experience in:

· Appraisal of complex properties for ad valorem purposes

· Unit valuation

· Appraisal of utility properties; and

· any additional pertinent information to indicate the individual's ability to aid Respondent in successfully completing the required Services (limit to one page).

In addition, Respondent must provide an organizational chart indicating lines of authority, names, titles, and functions of individuals responsible for the Services.

Resumes must present the required personnel information in sufficient detail to provide Comptroller with a convincing indication that the personnel involved can successfully provide the required Services. The personnel, as identified in the Proposal, are considered to be essential to the Services. Comptroller reserves the right, in its sole discretion, to approve each member of the team and to request substitutions. All replacements of personnel must be of equal or superior experience or skill as the person replaced.

4.2.H Respondent Narrative and Preliminary Work Plan

In its Proposal, Respondent must submit a narrative explanation of how the offered services will meet the requirements of this RFP. In its narrative, Respondent may also concisely describe any additional features, aspects, or advantages of its services in any relevant area not covered elsewhere in its Proposal.

In its Proposal, Respondent must also provide a preliminary Work Plan, with a table of contents, for the Study and each Optional Scope, if any, that Respondent includes in its Proposal that: (1) addresses how work will be performed by Respondent; (2) describes the research, analyses, and methodologies Respondent will use to complete the Services; and (3) provides a detailed description, including a timeline for completion, of each deliverable to be provided. Roles and responsibilities of Comptroller, beyond those stated in the RFP, shall be clearly described by the Respondent.

4.2.I Proposed Fee

Respondents are encouraged to offer their best pricing at all times. Respondents must offer a firm, fixed price for the Study (Section 2.1.1) and, if submitting, Optional Scope 1 (Section 2.1.2) and/or Optional Scope 2 (Section 2.1.3). Respondents must also offer fixed hourly rates for each person specified by Respondent as personnel in its Proposal for Additional Services (Section 2.1.4). Other than travel, Respondent must include all costs of providing all of the Services on a price sheet similar in format to the price sheet located in Attachment D (Authorized Personnel and Compensation) to Exhibit A. Travel expenses, if any, shall be invoiced separately and only Comptroller-approved travel expenses shall be paid. All other costs and expenses associated with the Services must be included on the proposed price sheet. Comptroller reserves the right to negotiate budget and budgetary constraints at the time of Contract award. Any Contract shall include a total not-to-exceed fee for all costs associated with providing the Services.

4.2.J Insurance

Respondent should describe other insurance coverage maintained by Respondent in the ordinary course of business and provide proof of same in its Proposal. Proof of insurance may be provided in the form of current certificates of insurance.

4.2.K Financial Statements

In its Proposal, Respondent and its parent company, if applicable, must provide evidence of financial stability by providing audited financial statements for each of the last two (2) years of Respondent’s operations or, in the alternative, financial statements compiled, reviewed and attested by an independent certified public accountant or certified public accounting firm.

In lieu of providing financial statements in its Proposal, a Respondent may provide a statement regarding the Respondent’s financial stability and viability to perform under any resulting contract. If Respondent elects this approach rather than audited financial statements, the Respondent must submit a statement, with appropriate supporting documentation, sufficiently detailed to demonstrate financial solvency, and to verify the capacity to fulfill the requirements of this RFP.

4.2.L Execution of Proposal

Exhibit B must be completed and signed by Respondent.

4.2.M Historically Underutilized Businesses Subcontracting Plan

The State of Texas and Comptroller are committed to assisting Historically Underutilized Businesses (HUBs) through the procurement process. In accordance with Sections 2161.181 and 2161.182, Texas Government Code, each state agency shall make a good faith effort to increase the contract awards for the purchase of goods or services to HUBs based on rules adopted to implement the disparity study described by Section 2161.002(c), Texas Government Code. In accordance with Section 2161.252, Texas Government Code and 34 Texas Administrative Code §20.285, each state agency (including institutions of higher education) as defined by Section 2151.002, Texas Government Code that considers entering into a contract with an expected value of $100,000 or more shall, before the agency solicits bids, proposals, offers, or other applicable expressions of interest, determine whether subcontracting opportunities are probable under the contract. If subcontracting opportunities are probable, each state agency’s invitation for bids or other purchase solicitation documents for construction, professional services, other services, and commodities with an expected value of $100,000 or more shall state that probability and require a HUB Subcontracting Plan (HSP) and supporting documentation.

The HUB goals per 34 Texas Administrative Code §20.284 are: 11.2% for heavy construction other than building contracts; 21.1% for all building construction, including general contractors and operative builders contracts; 32.9% for all special trade construction contracts; 23.7% for professional services contracts; 26.0% for all other services contracts; and 21.1% for commodities contracts.

Comptroller has determined that this procurement falls under the following category:

Special Trade Construction ___ Professional Services Other Services X Commodities ___

Comptroller has determined that HUB subcontracting opportunities are probable and requires Respondents to complete the HSP form located at: https://comptroller.texas.gov/purchasing/vendor/hub/forms.php. The HSP form is also posted to the ESBD as a separate package under this RFP. CPA has identified the possible subcontracting opportunities on the “Agency Special Instructions/Additional Requirements” portion of the State of Texas HUB HSP form set forth below. The class and item codes for this RFP are as follows: Class 918, Items 14, 21 and 97.

- - Agency Special Instructions/Additional Requirements - -

The Texas Comptroller of Public Accounts is committed to increasing contracting opportunities with HUBs by contracting directly with HUBs or indirectly through subcontracting opportunities in compliance with Chapter 2161 of the Texas Government Code, and by requesting a HSP for contracts with an expected value of $25,000 to $99,999.

If a bid/proposal/offer to a solicitation with an expected value of $100,000 or more does not contain a completed HSP and supporting documentation, the bid/proposal/offer will be considered non-responsive and will be disqualified. After contract award, Successful Respondent may be subject to debarment pursuant to Section 2161.253(d) of the Texas Government Code if any modifications are made to the HSP without PRIOR approval from CPA.

For assistance in completing the HSP, Respondent may visit the following website: https://comptroller.texas.gov/purchasing/vendor/hub/.

If Respondent is not subcontracting any portion of the contract, Sections 1, 2(a), 3 and 4 must be completed.

If Respondent is subcontracting some portion of the contract, the supporting documentation of “Good Faith Effort” must be demonstrated in either Method A (Attachment A) or Method B (Attachment B).

The Texas Comptroller of Public Accounts requests all Respondents to consider utilizing HUBs in subcontracting areas that are listed below; however, this list should not be considered exhaustive.

In accordance with 34 TAC §20.285(d)(1)(D)(iii), a Respondent (prime contractor) may demonstrate good faith effort to utilize Texas certified HUBs for its subcontracting opportunities if the total value of Respondent’s subcontracts with Texas certified HUBs meets or exceeds the statewide HUB goal or the agency specific HUB goal, whichever is higher. When a Respondent uses this method to demonstrate good faith effort, the Respondent must identify the HUBs with which it will subcontract. If using existing contracts with Texas certified HUBs to satisfy this requirement, only contracts that have been in place for five years or less shall qualify for meeting the HUB goal.

Respondent must carefully review, complete and return all HUB forms, as required by this Section.

4.2.N Criminal Conviction Certification

Exhibit C must be completed and signed by Respondent.

4.2.O Nondisclosure Agreement

Exhibit D must be completed and signed by Respondent.

4.2.P Conflict of Interest Statement

The Conflict of Interest Statement must be prepared, signed by Respondent, and returned with the Proposal as Exhibit E.

In its Proposal, a Respondent must represent and warrant to Comptroller that it and each of its subcontractors have the requisite resources, qualifications, and independence to conduct the Services free from outside direction, control, or influence, and subject only to the accomplishment of Comptroller’s objectives. Respondents that cannot make this representation and warranty should not respond to this RFP.

Respondent must disclose any existing or potential conflicts of interest or possible issues that might create appearances of impropriety relative to the submission of a Proposal from Respondent and its possible selection as Successful Respondent, or its performance or the performance of its proposed subcontractor(s).

As part of this disclosure requirement, each Respondent must include in its Proposal all past and present contractual, business, financial or personal relationships between Respondent and Comptroller and between Respondent’s proposed subcontractors, if any, and Comptroller. For purposes of this disclosure requirement, (i) “past” is defined as within the two (2) calendar years prior to the deadline for submission of Proposals; (ii) “Comptroller” is defined as the statewide elected official who heads the agency as well as the agency’s employees or recent former employees; and (iii) “recent former employees” are defined as those Comptroller employees who have terminated agency employment within the two (2) calendar years prior to the deadline for submission of Proposals. For each item, Respondent must provide a detailed explanation of why Respondent does or does not believe such item poses a conflict of interest, potential conflict of interest, or appearance of impropriety issue relative to Respondent’s submission of a Proposal, possible selection as Successful Respondent or its performance of the Contract.

For purposes of this RFP, “personal relationship” is defined as a current or past connection other than a clearly contractual, business, financial, or similar relationship and includes family relationships or other connections other than simply providing a response to this RFP. For this purpose, “family relationship” means a relationship within the third degree of consanguinity or second degree of affinity. Chapter 573 of the Texas Government Code defines these degrees of consanguinity and affinity. Connections other than such family relationships fall within this definition and must be disclosed if a reasonable person could expect the connection to diminish Respondent’s independence of judgment or effectiveness in the performance of Respondent’s responsibilities to Comptroller or the State of Texas under the Contract. Connections also fall within this definition if a reasonable person could expect the connection, within the overall context of Respondent’s submission of a Proposal, possible selection as Successful Respondent, or its performance of the Contract, to create an issue for the agency’s consideration relative to a potential appearance of impropriety or conflict of interest. Connections also fall within this definition if the relationship is with Comptroller or other State of Texas employee with authority to make decisions or recommendations on State of Texas contracting or procurement or this RFP. For purposes of this provision, those persons with authority to make decisions or recommendations are those persons who fall within the definition of “purchasing personnel” in Section 2262.004(a)(2) of the Texas Government Code.

In submitting a Proposal, a Respondent affirms that it has not given, nor does it intend to give, at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant or any employee or representative of same, in connection with this procurement.

Respondents must disclose any proposed personnel under the Contract who are current or recent former employees of Comptroller or the State of Texas. Recent former employees are defined above.

Also, under Section 2254.033 of the Texas Government Code, an individual who offers to provide consulting services to Comptroller and who has been employed by Comptroller or another agency at any time during the two years preceding submitting the proposal shall disclose in its proposal: (i) the nature of the previous employment with Comptroller or the other agency; (ii) the date the employment was terminated; and (iii) the annual rate of compensation for the employment at the time of its termination.

Disclosures under these provisions will be evaluated by Comptroller. However, all information provided will not necessarily lead to a restriction or disqualification. Issues will be considered on a case-by-case basis in the best interests of the State of Texas. If a Respondent is in doubt about whether information should be disclosed, Respondent should consult its legal counsel. Failure to disclose any required information under these provisions may be cause for Proposal disqualification or termination of the contract, if any, awarded as a result of this RFP. Comptroller reserves the right, in its sole discretion, to determine if an issue should result in Proposal disqualification or termination of the Contract. If circumstances change or additional information is obtained subsequent to submission of Proposals, Respondent’s duty to disclose under these provisions continues under the term of the Contract and does not end with submission of a Proposal or receipt of Contract award.

4.2.Q Certification of Public Nature of Proposal

Exhibit F must be completed and signed by Respondent.

4.2.R Vendor Reference Questionnaire

Respondents must send the Vendor Reference Questionnaire (Exhibit G) to three (3) companies or government agencies. Instructions are included on the questionnaire. Respondents may send the questionnaire to references via email. Comptroller is not responsible for undeliverable e-mails or for non-responsive references. Respondents’ references will be evaluated in accordance with Section 5.2 (Selection Criteria) and 5.3 (Past Performance). Include all requested information in the top portion of the questionnaire. References must respond to Comptroller on the form provided by the due date provided in Section 3.5 (Schedule of Events) to be considered in Proposal evaluation. The questionnaire form must be submitted directly from the references to Comptroller. Respondents shall not submit the reference form to Comptroller. References may be contacted for clarification at Comptroller’s discretion.

PART V

PROPOSAL EVALUATION AND SELECTION

5.1 Evaluation Process

Comptroller shall establish an Evaluation Committee. Copies of Proposals Comptroller determines are responsive and in compliance with this RFP will be distributed to the members of the Evaluation Committee for their review and evaluation. Clarifications on issues raised in the Proposals may be sought from individual Respondents. Best and Final Offers may be sought from Respondents whose Proposals are ranked highest by the Evaluation Committee. However, Respondents are encouraged to present their best pricing and best offer in their Proposals.

Comptroller may request that top-scoring Respondents present an overview of the proposed services. The number of top-scoring Respondents selected to provide presentations will be determined by Comptroller in its sole discretion. Such Respondents will be notified and presentation dates and times will be arranged. All presentations will be performed remotely or at Comptroller offices located in the LBJ Building, 111 E. 17th Street, Austin, Texas.

Upon the selection of Successful Respondent, if any, Comptroller shall proceed with contract negotiations and attempt to finalize the contract with the apparent Successful Respondent. If a contract cannot be successfully negotiated within a reasonable period, negotiations will be terminated, and negotiations with the next-highest-ranking Respondent may commence. The process may continue until a contract is signed or the RFP is withdrawn. Upon failure of negotiations, Comptroller may at any time choose to reissue or withdraw the RFP rather than continue with negotiations.

As soon as possible after the execution of a written contract with Successful Respondent, all other Respondents shall be provided with formal notification that they were not selected.

5.2 Selection Criteria

Only those Proposals that meet the minimum qualifications shall be evaluated and scored. The evaluation of the Proposals will be conducted in accordance with the best value standard set forth in Section 2254.027 of the Texas Government Code, and the criteria and relative weights are as follows:

1. Respondent’s preliminary Work Plan and methodology for providing the

5.3 Respondent’s Past Performance

In addition to reviewing the reference forms received under Section IV, Part 4.2.R, Comptroller may conduct reference checks with other entities regarding past performance of Respondent or its subcontractors.