ESBD_File_332641_HHS0012599_Addendum 3_Attachment 2_Vendor Questions & Answers.pdf

HHS0012599 Forensic Accounting Services

Attachment 2 of Addendum 3

Question

Question Reference from Potential Respondents

Question from Potential Respondents DFPS Response

1 P-26, Section 3.6.3 Checklist

Exhibit I Plan of Operations Response Template. Required Information

The Checklist and the Plan of Operations Response Template (PORT) list the required information in different orders. Which order should be used for our proposal?

Use the Checklist for the order of the proposal.

Exhibit I, Plan of Operation Response Template has been revised per Addendum 3_Attachment 1 Revised Exhibit I Plan of Operation.pdf.

2 P-30-31, Article V and VI, Exhibit I Plan of Operations Response Template.

Required Information

The PORT, Statement of Qualifications (SOQ) and Required Respondent Information(RRI) contain some duplicative requests for qualifications.

For example, experience is asked for in the following sections:

SOQ 5.4

Describe Respondent’s demonstrated ability and experience in conducting Forensic Accounting Services in accordance with CFF and CFE standards. Describe Respondent’s demonstrated ability and experience providing services to public and governmental agencies under similar contracts.

RRI 6.1.1: Respondent must provide a detailed narrative explaining its experience and qualifications to provide the Services specified in Article II, Scope of Work.

Respondent’s narrative should focus on key strengths and competitive advantages.

PORT Describe your organizations qualifications as required in Article V. Statement of Qualifications to include the following:

1. Executive Summary

2. Minimum Qualification Documentation

3. Qualifications

4. Past Performance and Experience

5. Plan of Operations

6. Staffing Profiles

A. Does the State expect sections to be duplicated?

RFQ Section 5.4 is specific and requests respondent’s past experience with forensic accounting related to CFF and CFE standards as well as its past experience serving other public agencies. It will count toward the 20-page limit required by the statement of qualifications.

Exhibit I, Plan of Operation Response Template has been revised per Addendum 3_Attachment 1 Revised Exhibit I Plan of Operation.pdf. It requests respondent explains how it proposes to meet the RFQ’s requirements and Performance Measures. Responses to the Revised Plan of Operations Response Template will count towards the 20-page limit required by the statement of qualifications.

RFQ Section 6.1.1 requests information on the company as a whole and its key strengths and weaknesses. The Company Narrative does not count towards the 20-page limit.

B. If so, does the PORT count toward the 20-page limit for the SOQ?

3 P-8, Section 2.1.3 Respondent Qualifications

Section b indicates “Have at least three years of experience within the last seven years in the practice of FAS to include: Preparing accurate financial reporting supported by Generally Accepted Accounting Principles (GAAP) or Generally Accepted Government Auditing Standards (GAGAS) principles.”

GAAP and GAGAS are generally utilized by auditors, not Forensic Accounting professionals.

Please indicate if the state requires the auditing of financials as part of the services of this RFP. Please indicate if having this experience is a requirement of the

RFP.

The Department does not require an audit. However, aspects of the assessment may require the employment of the audit standards, identified in Section 2.1.3 (Respondent Qualifications).

4 P-8, Section 2.1.3.

Respondent Qualifications

The RFQ states “Respondent will (a) Be a Certified Public Accountant (CPA) with at least one of the following applicable professional licenses…” Can HHSC/DFPS confirm whether our company is required to be a CPA firm, or whether this means that all staff on this engagement are required to be CPAs?

Staff who will provide the services must be CPAs with the qualifications listed in Section 2.1.3 (Respondent Qualifications, item b) and Section

4.2.2 (Minimum Qualifications).

5 Section 2.1.3(b) The RFQ states, “Have at least three years of experience within the last seven years in the practice of FAS to include: 1. Preparing accurate financial reporting supported by General Accepted Accounting Principles (GAAP) or Generally Accepted Government Auditing Standards (GAGAS) principles.”

Forensic accounting investigations are commonly covered by the AICPA Forensic and Valuation Services Professional Standards, as well as the Association of Certified Fraud Examiners Professional Standards.

Since FAS engagements don’t require the performance of a financial statement audit, will the ability to follow the AICPA’s State on Standards for Forensic Accounting be acceptable?

DFPS requires that the work is performed in accordance with the qualifications, certifications, and standards (such as GAAP, GAGAS, AICPA) as outlined in Sections 2.1.3 (Respondent Qualifications) through 2.1.4 (Forensic Accounting Assessment) of the solicitation.

6 P-8, Section 2.1.4 Forensic Accounting Assessment

Please clarify the low and high range of financial activity for the average APS individual. Are these generally wealthy individuals?

Based on the average APS case being referred for forensic accounting services, individuals have moderate to high income/resources.

7 P-8, Section 2.1.4 Forensic Accounting Assessment

Paragraph 1 indicates “The number of cases varies.”

What is the expectation for the total number of cases assigned on a monthly or yearly basis? What is the average amount of hours expected per case? This information will be useful in determining the number of staff that will be required to suit the needs of this RFP.

The State anticipates the total cases per month to be 10 or less.

The average number of hours per case is estimated to be 10 to 30.

8 P-8, Section 2.1.4 Forensic Accounting Assessment

Will the State clarify the types of exploitation commonly seen in these cases?

For this service, Financial Exploitation is the only type of exploitation. Refer to definition in RFQ Section 1.2.

9 P-8, Section 2.1.4 Assessments

Is the State able to provide how many referrals or assessments have been required on an annual basis over the past three years?

There is not a set number required. Typically, there are fewer than 10 referrals per month. However, in the future there may be more.

10 P-8 Section 2.1.4 Forensic Accounting Assessment

On average, approximately how many cases are expected to be referred to the awarded contractor per month?

Refer to Question 9 Response.

11 Section 2.1.4 Forensic Accounting Assessment

Question for HHSC or DFPS: Does APS have an estimate of the number of cases that may be referred to the Contractor in a contract quarter and contract year?

Refer to Question 9 Response.

12 P-8-10, Section 2.1.4 Forensic Accounting Assessment

2.1.6 Section Court

Related Services

The State indicates that travel may be required for Court Related Services.

Please indicate whether any travel will be required for the Forensic Accounting Assessment.

Court related services may be done virtually or may be required to be in-person, depending on the court’s preference and most cost-effective method.

No travel will be required for assessment purposes.

All activity for assessments will be completed via the vendor’s portal.

13 Travel-

Section 2.1.6

Can the work be performed on a remote basis? Yes, the Contractor can be located anywhere in the United States, but it must be authorized to do business in the State. See Section 6.2, Authorization to Conduct Business in Texas.

14 Travel

Section 2.1.6

Is travel required around the State or out of state? Can travel costs be reimbursed?

Out of state travel is not expected. On rare occasion, in state travel may be required for court related services such as testifying or for conducting training.

Acceptable mileage, conditions and reimbursement rates for travel are covered in Section 2.1.6 items e-f (Court Related Services).

15 P -9, 10-11, Section 2.1.7.b

Exhibit A, #47, WBS/Portal Security and Cybersecurity Criteria

We understand from Exhibit A that the WBS/Portal must comply with TX-RAMP for the term of the contract. RFQ 2.1.7.b implies that an interim solution may be proposed in lieu of a TX-RAMP compliant solution. Can the State confirm that TX-RAMP certification is not initially required for the portal solution?

See Exhibit B (DFPS Uniform Terms and Conditions), Section VII. W. and Z, and see Section 2.1.7 (WBS or Online Portal Requirements):

Contractor must comply with Texas Risk and Authorization Management Plan (TX. RAMP) as follows:

Commencing on the Contract Effective Date and during the Contract Term, Contractor shall provide Services that comply with TX-RAMP Certification Level Two. Contractor acknowledges that TX-RAMP Provisional Status does not satisfy the TX-RAMP Certification Level two requirement.

and/or

If the alternative is a SaaS, Contractor must meet the National Institute of Standards and Technology (NIST) standard definition of SaaS. Refer to NIST Definition of Cloud Computing SP 800-145 (https://csrc.nist.gov/pubs/sp/800/145/final).

16 Section 2.1.7 WBS or Online Portal Requirements

Online Portal - Question for HHSC or DFPS: Does APS have a current web-based portal to manage current cases? If yes, can APS identify the current tool?

No, APS does not have a portal. For this reason, the Respondent must have an acceptable WBS portal.

https://csrc.nist.gov/pubs/sp/800/145/final

17 P-12 Section 2.1.9 "Training

1. What type of training plan is being requested for DFPS staff and others as identified by DFPS? Is this training on the process for conducting and documenting the assessments?

In regard to Exhibit H "Performance Measures"

2. Are these performance measures in place regardless of the volume of APS Client forensic referrals received by the Respondent ? For example, if a large volume of referrals are received within one week are they all expected to still meet the performance measure requirements?

3. Is there any limitation on the number of referrals expected to be worked on at one time?

4. Who determines if an assessment is "routine" or "urgent"?

1. No, training is not on the process for conducting and documenting assessments; however respondent may add this at its discretion. Training per the RFQ is for use of the WBS or Portal. See Section 2.1.9 (Training).

2. Yes, performance measures are in place regardless of the volume of referrals received.

3. There are no limitations on the number of referrals expected to be worked on at one time.

4. Timeframes for services depend on the type of referral and as determined by APS.

18 P-13, Section 2.1.13 Payment Terms

The State indicates that pay will be awarded to the Respondent on a cost reimbursement basis.

Does the State have an expectation as to the range of rates by staff class acceptable under this RFP?

This solicitation is an RFQ which means the evaluation will focus on the qualifications of the respondents. Rates are expected to be reasonable and within industry standards. Pricing will be negotiated with the highest scoring respondent(s).

19 P- 13, Section 2.1.13 Payment Terms

What pricing quotation is required; request mentions cost reimbursable? Would the State like a rate sheet or an estimate of hours for the requested services?

No, a pricing quotation is not required; cost will be negotiated with the highest scoring respondent(s).

20 P-14-15, Section

2.2.1 Contract Award

and Reservation of Rights

The State indicates they may choose to award multiple contracts for this RFP.

Will the State consider awarding contracts separately for the creation and maintenance of the WBS portal and the Forensic Accounting Services?

No, Respondents must already have an existing WBS portal to be awarded the contract. They would also be responsible for paying for maintenance of their portal. WBS portal requirements refer to RFQ Section 2.1.7 (WBS Online Portal Requirements).

21 P-16, Section 3.1 Schedule of Events

Because answers to questions will have a potentially significant impact on vendors’ approach to responding to the RFQ, would the State please consider extending the deadline to allow for at least 15 business days between publication of responses and proposal due date?

The State has extended the deadline per Addendum

2. See ESBD posting HHS0012599_Addendum 2 Attachment 1.

22 Section 3.5.2 Page Limit and Supporting Documentation

Page Limit Requirements - Can HHSC/DFPS confirm whether Exhibit I, Plan of Operation Response Template, as a required form, counts towards the RFQ’s 20-page limit?

DFPS confirms the template counts towards the 20-page limit.

23 Section 3.5.2 Page Limit and Supporting Documentation

Page Limit Requirements - Can HHSC/DFPS confirm whether the staff resumes, as a required in 5.6 Staffing Profile, count towards the RFQ’s 20-page limit?

These documents are considered supporting documentation and do not count towards the 20-page limit.

24 Section 3.5.2 Page Limit and Supporting Documentation

Page Limit Requirements- Can HHSC/DFPS confirm whether Exhibit A, HHS Solicitation Affirmations, Version

2.3 (as required by 6.4, p. 33) counts toward the RFQ’s 20-page limit?

This document is considered supporting documentation and does not count towards the 20-page limit.

25 Section 3.5.2 Page Limit and Supporting Documentation

Page Limit Requirements - Can HHSC/DFPS confirm whether our Dun and Bradstreet Reports (as required by 6.5.1, p. 33) counts toward the RFQ’s 20-page limit?

These documents are considered supporting documentation and do not count towards the 20-page limit.

26 Section 3.5.2 Page Limit and Supporting Documentation

Page Limit Requirements - Can HHSC/DFPS confirm whether our financial statements (as required by 6.5.2,

p. 33 - 34) counts toward the RFQ’s 20-page limit?

These documents are considered supporting documentation that do not count towards the 20-page limit.

27 Section 3.5.2 Page Limit and Supporting Documentation

Page Limit Requirements - Can HHSC/DFPS confirm whether Exceptions, Exhibit D, counts towards the RFQ’s 20-page limit?

This document is considered supporting documentation that does not count towards the 20-page limit.

28 Section 3.5.2 Page Limit and Supporting Documentation

Page Limit Requirements - Can HHSC/DFPS confirm whether Assumptions Form, Exhibit E, counts towards the RFQ’s 20-page limit?

This document is considered supporting documentation that does not count toward 20-page limit.

29 P-31, Section 5.6 Staffing Profile

Regarding staffing, is the state requesting a singular Forensic Accountant or can the vendor propose a team of individuals to complete the work?

The organization must have a minimum of one forensic accountant, as stated in Section 4.2.2 (Minimum Qualifications). A Respondent may propose a team to complete the work; however, the forensic accountant must be the lead of the team.

P-31, Section 5.6 Staffing Profile

Are there specific labor categories or key personnel required?

Per Section 4.2.2 (Minimum Qualifications) describes the qualifications for key personnel who are providing forensic accounting services.

P-32, Section 6.2 Authorization to Conduct Business in Texas

The State indicates respondents must be set up in the Texas franchise tax system prior to award.

Please clarify that the State requires Respondents to be set up prior to award (in December), not at the time of response submission

Yes, prior to award only the successful respondent must be set up in the Texas franchise tax system.

This includes setting up a Texas Identification Number (TIN) for payment.

Respondents can go to the HHSC website below for more information on the Texas franchise tax system.

https://www.hhs.texas.gov/business/contracting-hhs https://www.hhs.texas.gov/business/contracting-hhs

32 P 32-33, Section 6.3 Reference

The State indicates that Respondents must provide at least three client references, preferably for state and/or local government.

The details of this type of work are confidential in most cases. Please indicate whether references are a requirement for response submission.

Yes, client references are required. Client name and other personal identifying information can be exempted from disclosure under the Texas Public Information Act. See RFQ Section 8.1.5.

33 P-33-34, Section

6.5.2 Financial

Statements and Financial Solvency

The State indicates that Respondents must provide financial statements including income statements and balance sheets.

Please indicate whether there are any acceptable alternatives to prove financial stability and solvency.

Acceptable alternatives can be found in Section

6.5.3 (Alternate Report).

34 Article VI. Required Respondent Information; item

6.5.2 Financial

Statements and Financial Solvency

As a partnership, we do not have audited financial statements, would it be acceptable to submit consolidated balance statements over the same time period along with a verification of good standing from our financial institution to satisfy this requirement?

Consolidated financial statements are accepted in compliance to Section 6.5.3 (Alternate Report).

35 P-35, Section 6.7 Subcontractor Info

Is there a subcontracting requirement? 15% and 26% were mentioned, but it is unclear what the specific requirement is for this request.

Yes, see Exhibit G (HUB and HSP Subcontracting Plan) for the HUB Subcontracting Utilization goal of 26%. See Section 6.7, (Major Subcontractor Information) if you have a subcontractor that will perform 15% or more of the contracted services.

N/A Will the State consider providing a list of interested parties for this RFP to facilitate teaming or Prime/Sub- Contractor arrangements?

No, there is no list of interested parties for this RFQ to facilitate teaming or Prime/Subcontractor arrangements.

37 N/A Is this the first time the State is employing Forensic Accounting Services, or is there an incumbent? If there is an incumbent, will the State consider sharing who the incumbent is?

No, this is not a new requirement. Yes, the work is currently being performed by the University of Texas Health Science Center at Houston via an Interagency Agreement.

38 Background Is this a new requirement or has the work been performed by a previous vendor?

Refer to Question 37 Response.

39 General Is there an incumbent to this contact? If so, who provides the current services?

Refer to Question 37 Response.

40 Background Would the State please provide a list of any previous vendors that have completed the same or similar work?

No, the State does not maintain a list of this nature.

41 Budget Would the State please provide a list of any previous vendors that have completed the same or similar work?

Refer to Question 40 Response.