ESBD_File_342439_HHS0013504_Motor Vehicle Subrogation Program.pdf

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Cecile E. Young, Executive Commissioner

Request for Offer (RFO) for

Motor Vehicle Subrogation Program

RFO No. HHS0013504

Date of Release: January 16, 2024

Solicitation Response Submission Deadline: February 14, 2024, by 10:30 a.m. Central Time

NIGP Class / Item Code:

Class/ Item Code AIS Description

920-02* Yes Access Services, Data

920-41* Yes Retrieval Services, Information

953-52 No Insurance and Insurance Services (Not Otherwise Classified)

*The State of Texas has marked certain codes for information technology and related commodities and services as Automated Information System (AIS).

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Table of Contents Article I. Introduction, Definitions, and Authority

1.1 Introduction

1.2 Definitions

1.3 Authority

Article II. Scope of Work

2.1 Description of Statement of Work

2.1.1 Contractor’s Responsibilities

2.1.2 HHSC’s Responsibilities

2.1.3 Process and Enforcement

2.1.4 Turnover

2.2 Contract Award, Term, and Historical Compensation

2.2.1 Contract Award and Execution

2.2.2 Contract Term

2.2.3 Historical Compensation

2.3 Data Use Agreement and Security Privacy Inquiry

2.4 No Guarantee of Volume, Usage, or Compensation

2.5 Governmental Entities

2.6 TX-RAMP Requirements

Article III. Administrative Information

3.1 Schedule of Events

3.2 Ambiguity, Conflict, or Discrepancy

3.3 Inquiries

3.3.1 Sole Point of Contact

3.3.2 Prohibited Communication

3.3.3 Exception to Sole Point of Contact

3.3.4 Solicitation Questions

3.4 HSP Training

3.4.1 Attendance

3.4.2 Training Logistical Information

3.5 Solicitation Response Composition

3.5.1 General Information

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3.5.2 Page Limit and Supporting Documentation

3.5.3 Discrepancies

3.5.4 Exceptions

3.5.5 Assumptions

3.5.6 Binding Offer

3.6 Solicitation Response Submission and Delivery

3.6.1 Solicitation Response Submission Deadline

3.6.2 Submission Options

3.6.3 Submission Checklist

3.6.4 Labeling and Delivery for USB Submission and Other Materials

3.6.5 Modifications and Withdrawals

Article IV. Solicitation Response Evaluation and Award Process

4.1 Conformance with State Law

4.2 Best Value Determination

4.2.1 Selection Methodology

4.2.2 Minimum Qualifications

4.2.3 Initial Compliance Screening

4.2.4 Written Solicitation Response Evaluation

4.2.5 Written Response Evaluation Criteria

4.2.6 TX-RAMP Certification Assessment

4.2.7 Best and Final Offer

4.2.8 Final Written Response Score

4.2.9 Summary of Best Value Determination

4.3 Questions or Requests for Clarification

Article V. Narrative Proposal

5.1 Narrative Proposal

5.1.1 Executive Summary

5.1.2 Project Work Plan

5.1.3 Key Staffing Profile

5.2 Company Information

5.2.1 Company Narrative

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5.2.2 Company Profile

Article VI. Required Respondent Information

6.1 Franchise Tax – Right to Transact Business in Texas

6.2 References

6.3 Major Subcontractor Information

6.4 Affirmations and Certifications

6.5 Other Reports

6.5.1 Dun and Bradstreet Reports

6.5.2 Financial Statements and Financial Solvency

6.5.3 Alternate Report

6.6 Corporate Guarantee

6.7 HUB Subcontracting Plan

6.8 Secretary of State Certification

6.9 TX-RAMP Documentation

Article VII. Cost Proposal

7.1 Cost Proposal

Article VIII. General Terms and Conditions

8.1 General Conditions

8.1.1 Changes, Modifications, and Cancellation

8.1.2 Offer Period

8.1.3 Costs Incurred

8.1.4 Contract Responsibility

8.1.5 Public Information Act - Respondent Requirements Regarding Disclosure

8.1.6 Respondent Waiver – Intellectual Property

8.1.7 Standards of Conduct for Vendors

8.1.8 Disclosure of Interested Parties

8.2 Insurance

8.2.1 Required Coverage

8.2.2 Alternative Insurability

8.3 Protest

Article IX. List of Exhibits

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ARTICLE I. INTRODUCTION, DEFINITIONS, AND AUTHORITY

1.1 INTRODUCTION

The Health and Human Services Commission (HHSC), Office of Inspector General (OIG), Third Party Recoveries (TPR) works to ensure that Medicaid is the payer of last resort through cost avoidance and recovery efforts and other cost containment initiatives. HHSC OIG TPR is seeking a qualified Contractor to obtain data from motor vehicle and other casualty claims data to match with Medicaid paid claims, resulting in greater cost recovery for the State.

HHSC Procurement and Contracting Services (PCS) will administer the procurement process for this Solicitation, which includes RFO publication, handling of communications from vendors, as well as managing the receipt of Solicitation Responses for review and evaluation.

To be considered for award, a Respondent must execute Exhibit A, HHS Solicitation Affirmations v. 2.4 and provide all other required information and documentation as set forth in this Solicitation.

Prior to award of the Contract, Respondent must obtain TX-RAMP Level 2 certification or TX- RAMP Provisional Certification.

Information regarding OIG and its programs is available online and can currently be accessed at https://oig.hhs.texas.gov.

1.2 DEFINITIONS

Refer to Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, v. 3.4, for additional definitions.

As used in this Solicitation, unless a different definition is specified or 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 HHSC PCS and posted to the ESBD.

“Award Consideration (AC) Documents” means documents Respondent must submit as part of the Solicitation Response to be considered for negotiations or award.

“Business Day” means any day (24-hour period) in which normal business operations are conducted (excludes State holidays and weekends).

“Calendar Day” means each day shown on the calendar beginning at 12:00 midnight, including Saturdays, Sundays, and holidays.

“Contract Term” means the period of time beginning with the commencement date or Effective Date of a Contract and ending when the Contract expires in accordance with its terms, or when it has been terminated.

https://oig.hhs.texas.gov/

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“Contractor’s Quality Assurance” means the review by the Contractor to ensure information is accurate and complete.

“Department of Information Resources” or “DIR” means the administrative agency established under Chapter 2054, Texas Government Code, or its designee.

“Effective Date” has the same meaning as the definition in Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, v. 3.4.

“ESBD” means the Electronic State Business Daily, the electronic marketplace where State of Texas bid opportunities over $25,000 are posted. The ESBD may currently be accessed at https://www.txsmartbuy.com/esbd.

“Final Written Response Score” means to the final scoring of the written response as documented in the Solicitation.

“HHSC” means the Texas Health and Human Services Commission, or its designee.

“HHSC PCS” means Procurement and Contracting Services (PCS), a division of HHSC.

“HUB” means Historically Underutilized Business, as defined by Chapter 2161 of the Texas Government Code.

“HUB Subcontracting Plan” or “HSP” means written documentation regarding the use of subcontractors, which is required to be submitted with all responses to state agency contracts with an expected value of $100,000 or more where the state agency has determined subcontracting opportunities are probable. The HSP subsequently becomes a provision of the awarded Contract and shall be monitored for compliance by the state agency during the term of the Contract.

“NIST” means National Institute of Standards and Technology.

“Notice” means an electronic or paper notice of subrogation to insurers or attorneys, or both.

“OIG” means Office of Inspector General.

“Respondent” means the individual or entity responding to this Solicitation.

“Solicitation” means this RFO including all exhibits, attachments, forms, and Addenda, if any.

“Solicitation Consideration (SC) Documents” means documents that must be submitted by Respondent with the Solicitation Response in order to be considered for evaluation and cannot be resubmitted or have errors remedied after the submission due date and time in the Schedule of Events has passed.

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

“Texas Medicaid Eligibility Files” or “File” means listing of all currently Medicaid eligible individuals in Texas.

“TX-RAMP” means the Texas Risk and Authorization Management Plan established by the Texas Department of Information Resources (DIR) that provides a standardized approach for security

Version 2.0 (12/13/2022) RFO No. HHS0013504 Page 7 of 36 assessment, authorization, and continuous monitoring of cloud computing services that process the data of a state agency. To become TX-RAMP certified, entities must submit prescribed documentation to DIR. Information regarding TX-RAMP is currently located at:

https://dir.texas.gov/texas-risk-and-authorization-management-program-tx-ramp.

“VPTS” means Vendor Performance Tracking System, as defined under Section 2262.055 of the Texas Government Code and Title 34 of the Texas Administrative Code Part 1, Chapter 20, Subchapter B, Division 2, Rule §20.115 and Subchapter F, Division 2, Rule §20.509.

1.3 AUTHORITY

HHSC is soliciting the services stated in this Solicitation under of the authority Texas Government Code Title 10, Subtitle D, including Section 2157.006 (a)(2), and 2157.068 (e-2), Texas Government Code Chapter 531, Subchapter C, and the Texas Administrative Code Title 1, Part 15, Chapter 354, Subchapter J.

ARTICLE II. SCOPE OF WORK

2.1 DESCRIPTION OF STATEMENT OF WORK

HHSC OIG TPR requires matching services to be performed to match Medicaid paid claims to motor vehicle and other casualty claims data to perform cost recovery for the State.

HHSC will send Files listing all current Medicaid eligible individuals in Texas, to the Contractor.

Upon receipt of each File, the Contractor will conduct data matching by utilizing a national data warehouse, Insurance Services Office Inc. (ISO), where multi-state casualty claims are recorded.

If a match is made, the Contractor will notify the responsible casualty insurance carrier of the State’s intent to recover from the insurance settlement.

2.1.1 Contractor’s Responsibilities

The Contractor must:

A. Provide HHSC with unlimited use of data matching services for the purpose of intercepting or encumbering insurance and other lump sum claims, or both, without additional cost beyond the terms of the Contract. Such services will include:

1. Providing access to Medicaid recipient matching information to authorized insurance companies, their directors, agents, employees, and their central reporting organizations or agents.

2. Providing immediate electronic notice of insurance claimant matching information to HHSC or HHSC’s designees though customized secure websites, or through other agreed upon delivery systems.

https://dir.texas.gov/texas-risk-and-authorization-management-program-tx-ramp https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2262.htm#2262.055 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=115 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=509

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3. For no additional cost, providing routine and as requested, customized reports to HHSC of data matching activity during the reporting period for auditing, accuracy, security, and informational purposes.

4. Serving as a liaison between HHSC and other interested or affected parties, including State of Texas insurance commissioners, State agencies, counties, courts, other states, and insurance and title industry representatives for the purpose of educating about, and encouraging participation in data matching services.

5. Serving as the data matching system liaison to the insurance industry trade associations, organizations, and leadership to foster the insurance industry’s continuing commitment to working with the Contractor to facilitate data matching with Medicaid agencies.

B. For no additional cost, facilitate discussions of the data matching operations with HHSC at least monthly and as needed in HHSC’s determination, through conference calls, and with other data matching participants as requested. The Contractor will be paid a flat fee per unique match, so they are incentivized to maximize production.

C. Before invoicing, provide a monthly email to HHSC’s program manager verifying the data matching activity for the month.

D. Provide accurate and timely monthly invoices to HHSC contract manager for HHSC’s agreed to costs of participating in the data matching program.

E. Oversee and support the coordination of the public relations and media interaction for the data matching system and its members.

F. Provide a service that adheres to HHSC’s security controls and requirements as identified in Exhibit L, HHS Information Security and Privacy Requirements.

2.1.2 HHSC’s Responsibilities

HHSC will:

A. Provide current Texas Medicaid data to the Contractor in agreed formats for data matching use.

B. Provide updated Texas Medicaid data to the Contractor on a mutually agreeable schedule.

C. Determine accessibility to data matching system or data matching system contents for non-member states or other entities through the sharing of source code, or private site access passwords. Medicaid information, data, or statistics obtained through the data matching system that may benefit a non-member state in the collection of Medicaid in an individual case, may be shared provided that:

1. Any personal health information (PHI) be shared in accordance with federal and state privacy and security laws; and

2. Appropriate confidentiality restrictions and protocols that are used in the Medicaid program are applied.

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D. Participate in conference calls with the Contractor or attend Contractor meetings in person in Austin, Texas, as necessary.

E. Pay the Contractor match fees for matches referred to them by data matching system resulting from the Contractor’s Medicaid recipient cases in the data matching database matching to insurance claims per the payment requirements and timeframes. Such match fees shall be paid by HHSC in accordance with the terms stated in the Contract.

2.1.3 Process and Enforcement

HHSC will place Files, both initial (Medicaid roster) and refreshed (Medicaid roster with identified matches), on the HHSC designated data matching server. Upon receipt of each File, the Contractor will conduct matching by utilizing a national data warehouse where multi-state casualty claims are recorded. If a match is made between a claimant and a Medicaid recipient, the Contractor will automatically notify HHSC or its designee, or both, electronically, so that HHSC or its designee can take appropriate action.

The Contractor will notify the responsible casualty insurance carrier of the State’s intent to recover from the insurance settlement, if any, and will attempt to intercept payments before they are made to the Medicaid recipient/claimant.

The insurer will then forward to HHSC the amount of the State’s claim taken from the settlement;

the balance of the settlement will be disbursed to the claimant or to the claimant’s legal representative.

2.1.3.1 Notice of Subrogation

Upon a confirmed match between a Texas Medicaid participant and the participant’s open, active claim with an insurer, the Contractor will send an electronic or paper notice of subrogation (“Notice”) to insurers or attorneys, or both, in a manner that verifies receipt of the Notice. Such Notices are subject to the Contractor’s Quality Assurance process and must be provided simultaneously to the HHSC Contract Representative.

2.1.4 Turnover

The Contractor must turnover all services to HHSC, or its designee, at the end of the Contract Term.

2.2 CONTRACT AWARD, TERM, AND HISTORICAL COMPENSATION

2.2.1 Contract Award and Execution

HHSC intends to award one (1) Contract as a result of this Solicitation. Any award is contingent upon approval of the HHSC Executive Commissioner or their designee.

If, for any reason, a final Contract cannot be executed with a Respondent selected for award within 30 Calendar Days of HHSC’s determination to seek to contract with that Respondent, HHSC may negotiate a Contract with the next highest-scoring Respondent or may withdraw, modify, or partially award this Solicitation.

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2.2.2 Contract Term

The initial term of any Contract resulting from this Solicitation will be for three (3) years. HHSC, at its sole option, may extend any Contract awarded pursuant to this Solicitation for up to two (2) additional years.

Following the initial term and any allowable renewals or extensions, HHSC may extend any resulting Contract for not more than one (1) additional option period to address immediate operational or service delivery needs. If the resulting Contract does not include a defined option period, the extension is limited to one (1) year.

2.2.3 Historical Compensation

Historical compensation under Contracts with similar scope and size to this Solicitation has ranged from approximately $500,000.00 to $2,100,000.00 per fiscal year. Notwithstanding Section 2.2.3 (Historical Compensation), HHSC reserves the right to adjust any projected amount based on state funding during the term of a resulting Contract.

2.3 DATA USE AGREEMENT AND SECURITY PRIVACY INQUIRY

By entering into a Contract with HHSC as a result of this Solicitation, Respondent agrees to be bound by the terms of the HHS Data Use Agreement v. 8.5, attached as Exhibit C.

Respondents must complete and return with their Solicitation Response Exhibit C-1, Texas HHS System-Data Use Agreement- Attachment 2, Security and Privacy Inquiry (SPI).

2.4 NO GUARANTEE OF VOLUME, USAGE, OR COMPENSATION

HHSC makes no guarantee of volume, usage, or total compensation to be paid to any Respondent under any awarded Contract, if any, resulting from this Solicitation. Any awarded Contract is subject to appropriations and the continuing availability of funds.

HHSC reserves the right to cancel, make partial award, or decline to award a Contract under this Solicitation at any time at its sole discretion.

2.5 GOVERNMENTAL ENTITIES

If Respondent is responding to this Solicitation in its capacity as a governmental entity, certain terms, and conditions found in this Solicitation, including all exhibits and Addendums, may not be applicable. Furthermore, to the extent permitted by law, if a Solicitation Response is received from a governmental entity, HHSC reserves the right to enter into an interagency or interlocal agreement with the governmental entity.

2.6 TX-RAMP REQUIREMENTS

The Contractor shall comply with the program requirements of TX-RAMP as they currently exist and as amended throughout the Contract Term. Commencing on the Effective Date, the Contractor

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In addition, the Contractor shall:

A. Upon HHSC’s request, provide Contractor’s submission(s) to DIR that supports DIR’s approval of certification status and respond to HHSC and DIR TX-RAMP staff inquiries promptly;

B. Provide written notification to HHSC of any lapse in TX-RAMP certification including, but not limited to, DIR revocation of TX-RAMP certification within two (2) Business Days of the Contractor’s discovery of non-compliance with TX-RAMP requirements;

C. Complete all TX-RAMP monitoring reports required by DIR and submit copies of reports to HHSC on or before the second (2nd) Business Day following the DIR submission deadline;

D. Routinely assess and monitor for compliance with required security controls and demonstrate that the security posture of the cloud computing services offered is acceptable to maintain TX- RAMP certification;

E. If the Contractor has TX-RAMP Provisional Certification, provide a progress update to HHSC on the Contractor’s application for TX-RAMP Level 2 Certification no later than the third (3rd) Business Day of each calendar month, unless HHSC requires more frequent reporting, until the expiration of the TX-RAMP Provisional Certification; and

F. If the Contractor has TX-RAMP Level 2 Certification, commencing six months prior to the expiration date of the TX-RAMP Level 2 Certification, provide a progress update to HHSC on the Contractor’s application for renewal or extension of its TX-RAMP Level 2 Certification no later than the third (3rd) Business Day of each calendar month, unless HHSC requires more frequent reporting.

The Contractor’s failure to comply with any TX-RAMP requirements including, but not limited to, continuous maintenance of the minimum certification required by the Contract shall constitute a material breach of contract, and HHSC reserves the right to hold the Contractor accountable by taking any remedial or corrective actions available under the Contract, at law, or in equity.

If the Contractor is unable to achieve TX-RAMP Level 2 Certification or re-certification, as applicable, for any reason before the 180th Calendar Day prior to the expiration date of the TX- RAMP Provisional Certification or TX-RAMP Level 2 Certification, as applicable, the Contractor shall provide, at no cost to HHSC, turnover services in accordance with Section 2.1.4, Turnover.

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ARTICLE III. ADMINISTRATIVE INFORMATION

3.1 SCHEDULE OF EVENTS

EVENT DATE/TIME

Solicitation Posting Date to ESBD (Date of Release)

January 16, 2024

HSP Training Attendance is Optional

January 19, 2024, at 2:00 p.m. Central Time

Deadline for Submitting Questions or Requests for Clarification January 24, 2024, by 5:00 p.m. Central Time

Tentative Date Responses to Questions or Requests for Clarification Posted on ESBD January 31, 2024

Submission Deadline for Courtesy HSP Review

February 5, 2024, by 5:00 p.m. Central Time

Solicitation Responses Submission Deadline [NOTE: Responses must be RECEIVED by

HHSC by the deadline.]

February 14, 2024 by 10:30 a.m. Central Time

Evaluation Period February 2024

Anticipated Notice of Award May 2024

Anticipated Contract Start Date August 1, 2024

Respondents must submit their Solicitation Responses to HHSC in accordance with the due date and time indicated in this Schedule of Events or as changed via an Addendum posted to the ESBD.

NOTE: All dates are tentative and HHSC reserves the right to modify these dates at any time. At the sole discretion of HHSC, events listed in the Schedule of Events are subject to scheduling changes and cancellation. Scheduling changes or cancellation determinations made prior to the Solicitation Responses Submission Deadline will be published by posting an Addendum to the ESBD. After the Solicitation Responses Submission Deadline, if there are delays that significantly impact the anticipated award date, HHSC, at its sole discretion, may post updates regarding the anticipated award date to the Procurement Forecast on the HHS Procurement Opportunities web https://hhs.texas.gov/doing-business-hhs/contracting-hhs/procurement-opportunities

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By submitting a Solicitation Response, Respondent represents and warrants that any individual submitting the Solicitation Response and any related documents on behalf of the Respondent is authorized to do so and to bind the Respondent under any Contract that may result from this Solicitation.

3.2 AMBIGUITY, CONFLICT, OR DISCREPANCY

Respondent must notify the Sole Point of Contact identified in Section 3.3.1 (Sole Point of Contact) of any ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error in the Solicitation in the manner and by the deadline described in Section 3.3.4 (Solicitation Questions).

Respondent submits a Solicitation Response at its own risk.

If Respondent fails to properly and timely notify the Sole Point of Contact of any ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error in the Solicitation, Respondent, whether awarded a Contract or not:

A. Waives any claim of error or ambiguity in the Solicitation and any resulting Contract;

B. Must not contest the interpretation by HHSC of such provision(s); and

C. Is not entitled to additional compensation, relief, or time by reason of ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error or its later correction.

3.3 INQUIRIES

3.3.1 Sole Point of Contact

All requests, questions, or other communication about this Solicitation shall be made in writing to HHSC PCS, addressed to the person listed below (Sole Point of Contact). Additionally, a phone number is provided for purposes such as instructing a potential Respondent through an IT system or website referenced in this Solicitation. Communications via telephone are not binding.

The Sole Point of Contact will authorize a secondary Sole Point of Contact in the event of their absence and, in such an event, will include the contact information for the secondary Sole Point of Contact in their automatic reply out-of-office e-mail message. Respondents seeking to contact the Sole Point of Contact should do so via e-mail in order to receive updated contact information.

Name Fernando Garcia, CTCD, CTCM

Title PCS Contract Specialist

Address Procurement and Contracting Services Building 1100 W 49th St. MC: 2020 Austin, TX 78756 https://hhs.texas.gov/doing-business-hhs/contracting-hhs/procurement-opportunities

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Phone (512) 406-2545

Email Fernando.garcia03@hhs.texas.gov

See also, Section 3.3.3 (Exception to Sole Point of Contact) below.

3.3.2 Prohibited Communication

Except as provided in Section 3.3.1 (Sole Point of Contact) and Section 3.3.3 (Exception to Sole Point of Contact), potential Respondents and Respondents are prohibited from any communication with HHSC regarding the Solicitation. HHSC, its representative(s), and partners will not answer any questions or otherwise discuss the contents of this Solicitation with any potential Respondent or its representative(s). Attempts to ask questions by phone or in person will not be allowed or recognized as valid. Respondent shall rely only on written statements issued by or through HHSC designated staff as provided by Section 3.3 (Inquiries). This restriction does not preclude discussions between affected parties for the purposes of conducting business unrelated to this Solicitation. Failure to comply with these restrictions may result in disqualification of Respondent's Solicitation Response.

3.3.3 Exception to Sole Point of Contact

Exceptions to Section 3.3.1, (Sole Point of Contact) are as follows:

A. Respondents with questions relating to the HUB Subcontracting Plan are permitted to direct those questions to the HUB coordinator at bob.mccurdy@hhs.texas.gov.

B. Where it is expressly directed by the Sole Point of Contact that another designated HHSC representative may speak to the Respondent, such as during Contract negotiations.

Respondents are required to ensure that communications have been authorized by the Sole Point of Contact before engaging in such communication. Failure to comply with this requirement may result in the disqualification of a Respondent’s Solicitation Response.

3.3.4 Solicitation Questions

HHSC will allow written questions and requests for clarification regarding this Solicitation.

Questions must be submitted by e-mail to the Sole Point of Contact identified in Section 3.3.1 (Sole Point of Contact) by the deadline established in Section 3.1 (Schedule of Events).

Responses to questions or other written requests for clarification will be consolidated and posted to the ESBD and will not be provided individually to requestors.

HHSC reserves the right to amend answers previously posted, prior to the Solicitation Response Submission Deadline listed in Section 3.1 (Schedule of Events). Amended answers will be posted on the ESBD. It is the Respondent's responsibility to check the ESBD. HHSC also reserves the right to provide a single consolidated response to all similar questions at the agency’s sole discretion.

A. All questions and requests for clarification must include the following information:

1. Solicitation number;

mailto:Fernando.garcia03@hhs.texas.gov mailto:bob.mccurdy@hhs.texas.gov

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2. Solicitation package reference (page number, section, and exhibit or attachment, if applicable;

3. Question topic (e.g., “Schedule of Events,” or “Exhibit M, Cost Proposal”); and

4. Question for HHSC.

B. Requestor’s contact information below must be included in the body of the e-mail and submitted with the question(s):

1. Company name;

2. Company representative name;

3. Phone number; and

4. E-Mail address.

Questions or requests for clarification received after the deadline in Section 3.1 (Schedule of Events), may be reviewed by HHSC but may not be answered. Only answers to questions submitted to the Sole Point of Contact in writing, in accordance with this section, are binding.

3.4 HSP TRAINING

3.4.1 Attendance

HHSC PCS will conduct an HSP Training. Attendance is optional but highly recommended.

Attendees to virtual HSP Training are required to send an email to the Sole Point of Contact identified in Section 3.3.1 (Sole Point of Contact), advising of participation in the HSP Training.

Attendees must provide their name, phone number, and name of the company they are representing regardless of whether the HSP Training is in-person or virtual.

3.4.2 Training Logistical Information

HHSC PCS will hold the HSP Training on the date and time set out in Section 3.1 (Schedule of Events).

People with disabilities who wish to attend the meeting and require auxiliary aids or services should contact the Sole Point of Contact identified in Section 3.3.1 (Sole Point of Contact), at least 72 hours before the meeting in order to have reasonable accommodations made by HHSC.

For further information regarding the webinar, see below:

Webinar Information:

Registration URL: https://attendee.gotowebinar.com/register/5246065077071409238

Webinar ID: 349-140-251 https://attendee.gotowebinar.com/register/5246065077071409238

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3.5 SOLICITATION RESPONSE COMPOSITION

3.5.1 General Information

Failure to submit all required Solicitation Response documents in the required format(s) may result in disqualification of the Solicitation Response without further consideration in accordance with Section 3.6.3 (Submission Checklist). Respondent shall prepare a Solicitation Response that clearly and concisely represents its qualifications and capabilities. Expensive bindings, colored displays, promotional materials, etc. are not necessary or desired. Respondent should focus on the instructions and requirements of the Solicitation.

3.5.2 Page Limit and Supporting Documentation

The narrative proposal should not exceed twenty-five (25) pages and should be formatted for 8 ½" x 11" paper with 1-inch margins and typed in Times New Roman, 12-point font. If complete responses cannot be provided without referencing supporting documentation, such documentation must be provided with the Solicitation Response, with specific reference made to the file, page, section, and/or paragraph where the supporting information can be found.

3.5.3 Discrepancies

In the event of any discrepancies or variations between copies, HHSC is under no obligation to resolve the inconsistencies and may make its scoring and selection decisions, accordingly, including the decision to potentially disqualify a Solicitation Response. If Respondent is required to designate an “Original” Solicitation Response but fails to do so, HHSC, in its sole discretion, will determine the version to be used as the original or may disqualify the Solicitation Response.

If the Respondent submits a redacted Solicitation Response as the “Original,” HHSC will disqualify the Solicitation Response and it will not be evaluated. HHSC will not accept submissions after the Solicitation Response Submission Deadline listed in Section 3.1 (Schedule of Events) to remedy discrepancies or variations in Solicitation Response submissions.

3.5.4 Exceptions

Respondents are highly encouraged, in lieu of including exceptions in their Solicitation Responses, to address all issues that might be advanced by way of exception by submitting such issues as questions or requests for clarification pursuant to Section 3.3.4 (Solicitation Questions).

Any exception included in a Solicitation Response may result in a Respondent not being awarded a Contract. If a Respondent includes exceptions in its Solicitation Response, Respondent is required to use Exhibit D, Exceptions Form and provide all information requested on the form.

Any exception that does not provide all required information in the format set forth in Exhibit D may be rejected without consideration.

No exception, nor any other term, condition, or provision in a Solicitation Response that differs, varies from, or contradicts this Solicitation will be considered to be part of any Contract resulting from this Solicitation unless expressly made a part of the Contract in writing by HHSC.

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3.5.5 Assumptions

Respondent must identify on Exhibit E, Assumptions Form, any business, economic, legal, programmatic, or practical assumptions that underlie the Respondent’s response to the Solicitation.

HHSC reserves the right to accept or reject any assumptions. All assumptions not expressly identified and incorporated into any Contract resulting from this RFO are deemed rejected by

HHSC.

3.5.6 Binding Offer

A Solicitation Response should be responsive to the Solicitation as worded and without any assumption that any or all terms, conditions, or provisions of the Solicitation will be negotiated.

Furthermore, all Solicitation Responses constitute binding offers. Any Solicitation Response that includes any type of disclaimer or other statement indicating that the response does not constitute a binding offer may be disqualified.

If a Respondent’s ability to enter into a Contract is contingent upon any exception or assumption provided in accordance with Section 3.5.4 (Exceptions) or Section 3.5.5 (Assumptions), the Respondent may be disqualified from further consideration for Contract award.

3.6 SOLICITATION RESPONSE SUBMISSION AND DELIVERY

3.6.1 Solicitation Response Submission Deadline

Solicitation Responses must be received at the address in Section 3.6.4 (Labeling and Delivery for USB Submission and Other Materials) and time-stamped by HHSC PCS no later than the date and time specified in Section 3.1 (Schedule of Events).

Solicitation Responses received after the deadline specified in Section 3.1 (Schedule of Events) will be rejected and not considered for Contract award.

3.6.2 Submission Options

A. Submission Option #1: Respondent shall submit two (2) USB drives—one (1) labeled “Original Proposal” and one (1) labeled “Copy”—containing the following documents:

1. Each USB must contain one (1) file named “Original” that contains the Respondent’s entire Solicitation Response (except the cost proposal and HUB Subcontracting Plan) in searchable portable document format (PDF), unless otherwise specified for a particular attachment or exhibit.

2. If applicable in accordance with Section 8.1.5 (Public Information Act – Respondent Requirements Regarding Disclosure), each USB must contain one (1) file named “Public Information Act Copy” that contains the Respondent’s entire Solicitation Response, including all exhibits and attachments, in searchable PDF.

3. In accordance with Section 7.1 (Cost Proposal), each USB must contain one (1) file named “Cost Proposal” that contains the Respondent’s cost proposal in Excel format with active formulas (compatible with Microsoft Office 2016).

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4. In accordance with Section 6.7 (HUB Subcontracting Plan), each USB must contain one

(1) file named “HUB Subcontracting Plan” in searchable PDF, that contains the Respondent’s HUB Subcontracting Plan and all supporting documentation.

B. Submission Option #2: Respondent shall submit the following through the Online Bid Room utilizing the procedures in Exhibit K, HHS Online Bid Room Instructions:

1. One (1) file named “Original” that contains the Respondent’s entire Solicitation Response (except the cost proposal and HUB Subcontracting Plan) in searchable PDF, unless otherwise specified for a particular attachment or exhibit.

2. If applicable in accordance with Section 8.1.5 (Public Information Act – Respondent Requirements Regarding Disclosure), one (1) file named “Public Information Act Copy” that contains the Respondent’s entire Solicitation Response, including all exhibits and attachments, in searchable PDF.

3. In accordance with Section 7.1 (Cost Proposal), one (1) file named “Cost Proposal” that contains the Respondent’s cost proposal in Excel format with active formulas (compatible with Microsoft Office 2016).

4. In accordance with Section 6.7 (HUB Subcontracting Plan), one (1) file named “HUB Subcontracting Plan” in searchable PDF, that contains the Respondent’s HUB Subcontracting Plan and all supporting documentation.

3.6.3 Submission Checklist

Solicitation Consideration and Award Consideration Documents, reference Section 1.2 (Definitions) must be submitted by the Solicitation Response Submission Deadline listed in Section 3.1 (Schedule of Events). Solicitation Consideration Documents will be reviewed as received, and Respondent will not have an opportunity to remedy missed requirements. At its sole discretion, HHSC may request some or all of the Respondents to remedy missing elements of Award Consideration Documents. Those marked “SC” are Solicitation Consideration Documents and those marked “AC” are Award Consideration Documents.

The Solicitation Response must be submitted using one of the approved methods identified in Section 3.6 (Solicitation Response Submission and Delivery). Below are the documents required to be submitted with the Solicitation Response. Where searchable PDF files are required, submission of non-searchable (image only) PDF files may result in disqualification from further consideration for Contract award.

A. Proposal and Respondent Information

1. Narrative Proposal (Section 5.1) SC ____

2. Company Information (Section 5.2) SC ____

3. Franchise Tax Information (Section 6.1) AC ____

4. References (Section 6.2) AC ____

5. Major Subcontractor Information (Section 6.3) SC ____

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6. HHS Solicitation Affirmations (Section 6.4, Exhibit A) SC ____

7. Assurances – Non-Construction Programs (Section 6.4, Exhibit H) AC ____

8. Certification Regarding Lobbying (Section 6.4, Exhibit I) AC ____

9. Federal Funding Accountability and Transparency Act (FFATA) Certification Form

(Section 6.4, Exhibit N) AC ____

10. Exceptions Form (if applicable) (Section 3.5.4, Exhibit D) AC ____

11. Assumptions Form (if applicable) (Section 3.5.5, Exhibit E) AC ____

12. Dun and Bradstreet Reports (Section 6.5.1) AC ____

13. Financial Statements and Financial Solvency (Section 6.5.2 or 6.5.3) AC ____

14. Corporate Guarantee (Section 6.6) AC ____

15. SPI (Section 2.3, Exhibits C-1) AC ____

16. Secretary of State Certification (Section 6.8) AC ____

17. TX-RAMP Documentation (Sections 2.6 and 6.9) AC ____

18. Signed Addendum Acknowledgement Forms AC ____

B. Cost Proposal (Article VII, Exhibit M) SC ____

C. HUB Subcontracting Plan (Section 6.7, Exhibit F) SC ____

3.6.4 Labeling and Delivery for USB Submission and Other Materials

Respondent must deliver Solicitation Responses submitted via USB by one of the methods below.

Overnight/Express/Priority Mail Hand Delivery Health and Human Services Commission

ATTN: Response Coordinator Tower Building Room 108 1100 W. 49th St., MC 2020

Austin, Texas 78756

Health and Human Services Commission ATTN: Response Coordinator

Procurement & Contracting Services Building 1100 W. 49th St., MC 2020

Austin, Texas 78756

BE ADVISED, all Solicitation Responses become the property of HHSC after submission and will not be returned to the Respondent. It is the Respondent’s responsibility to appropriately mark and deliver the Solicitation Response to HHSC PCS by the specified date. A dated shipping label, invoice of receipt from a from USPS or commercial carrier, or any other documentation in lieu of the on-site time stamp WILL NOT be accepted.

Each Respondent is solely responsible for ensuring its Solicitation Response is submitted in accordance with all Solicitation requirements, including, but not limited to, proper labeling of packages, sufficient postage or delivery fees, and ensuring timely receipt by HHSC. In no event will HHSC be responsible or liable for any delay or error in delivery. Solicitation Response must be RECEIVED by HHSC PCS by the Solicitation Response Submission Deadline identified in Section 3.1 (Schedule of Events).

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Solicitation Responses submitted via USB by mail or hand delivery shall be placed in a sealed package. The sealed package and the USB drives shall be clearly labeled on the outside as follows:

Solicitation No: HHS0013504 Solicitation Name: Motor Vehicle Subrogation Program Solicitation Response Submission Deadline: February 14, 2024 by 10:30 a.m. Central Time Purchaser Name: Fernando Garcia, CTCD, CTCM Respondent Name: [Respondent Name]

It is Respondent’s sole responsibility to ensure that packaging is sufficient to prevent damage to contents. HHSC will not be responsible or liable for any damage, and damaged Solicitation Responses will not be considered at HHSC’ sole discretion.

HHSC will not be held responsible for any Solicitation Response that is mishandled prior to receipt by HHSC PCS. It is the Respondent’s sole responsibility to mark appropriately and deliver the Solicitation Response to HHSC PCS by the specified date and time. HHSC will not be responsible for late delivery, inappropriately identified documents, or other submission errors that may lead to disqualification or nonreceipt of the Respondent’s Solicitation Response.

3.6.5 Modifications and Withdrawals

Prior to the Solicitation Response Submission Deadline identified in Section 3.1 (Schedule of Events), Respondent may: (1) withdraw its Solicitation Response by submitting a written request to the Sole Point of Contact identified in Section 3.3.1 (Sole Point of Contact); or (2) modify its Solicitation Response by submitting a written amendment to the Sole Point of Contact identified in Section 3.3.1 (Sole Point of Contact). When modifying its Solicitation Response, Respondent must include in writing the section(s) of its submission that will be replaced or removed by the amendment.

ARTICLE IV. SOLICITATION RESPONSE EVALUATION AND AWARD

PROCESS

4.1 CONFORMANCE WITH STATE LAW

Solicitation Responses shall be evaluated in accordance with Texas Government Code Section

2157.003. HHSC shall not be obligated to select the lowest priced Solicitation Response but shall make an award to the Respondent that provides the best value to the State of Texas.

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4.2 BEST VALUE DETERMINATION

4.2.1 Selection Methodology

Solicitation Responses that meet the minimum qualifications will be submitted to the evaluation team for review and scoring. Each member of the evaluation team will receive a copy of each responsive Solicitation Response. The evaluators will review the Solicitation Responses considering the criteria listed in Section 4.2.5 (Written Response Evaluation Criteria).

Evaluators will individually score the Solicitation Responses. This procurement will utilize an aggregated individual evaluation methodology as outlined by this section.

The following subsections describe the evaluation process, including any criteria for advancement to the various phases of evaluation, if applicable.

4.2.2 Minimum Qualifications

The Respondent must meet the minimum qualifications listed below.

A. Respondent’s proposed Solution must meet the NIST standard definition of a cloud computing services. Solutions that are identified as cloud computing services by the Respondent, but do not meet the standard definition of cloud computing, will be disqualified;

B. Respondent must have access to the national data warehouse, Insurance Services Office Inc.

(ISO) database for data matching purposes;

C. Respondent must be financially solvent and adequately capitalized, as determined based on a review of documentation required by Section 6.5 (Other Reports);

D. Respondent must have submitted the Solicitation Response in accordance with Section 3.6 (Solicitation Response Submission and Delivery) including all Solicitation Consideration and Award Consideration Documents, see Section 3.6.3 (Submission Checklist); and

E. Respondents who receive an overall score on the VPTS of less than a “C” may be disqualified from consideration for award.

4.2.3 Initial Compliance Screening

HHSC will review Solicitation Responses for compliance with the Section 3.6.3 (Submission Checklist) and for demonstrated ability to meet the Minimum Qualifications listed in Section

4.2.2 (Minimum Qualifications) required to advance to evaluations. Failure to meet the Minimum Qualifications, will result in the disqualification of the Solicitation Response.

HHSC will automatically disqualify any Solicitation Response that does not include one or more of the completed and signed (as applicable) Solicitation Consideration Documents listed in Section

3.6.3 (Submission Checklist).

At its sole discretion, HHSC may disqualify any Solicitation Response that does not include all required Award Consideration Documents. Reference Section 3.6.3 (Submission Checklist).

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HHSC may contact references provided in response to this Solicitation. HHSC may contact Respondent’s clients, or solicit information from any available source, including the Comptroller’s VPTS. Any information received may be grounds for disqualification if that information, in HHSC’s sole discretion, suggests that the Respondent may perform poorly if selected.

4.2.4 Written Solicitation Response Evaluation

Each member of the evaluation team will read the Solicitation Responses in preparation for evaluation. The evaluation team will score all Solicitation Responses that pass initial screening Section 4.2.3 (Initial Compliance Screening). Solicitation Responses will be scored against the criteria in Section 4.2.5 (Written Response Evaluation Criteria).

Solicitation Responses will be evaluated utilizing aggregated individual scoring and any other methods outlined in Article IV (Solicitation Response Evaluation and Award Process). The individual evaluators’ scores will be aggregated and weighted, resulting in the Final Written Response Scores, unless requests for Best and Final Offers (BAFO) are conducted.

4.2.5 Written Response Evaluation Criteria

Solicitation Responses shall be consistently evaluated and scored in accordance with the following criteria.

A. Narrative Proposal (20%)

B. Project Work Plan and Key Staffing (25%)

C. Qualifications and Experience (25%)

D. Cost Proposal (30%)

See also, Exhibit J, Evaluation Tool.

4.2.6 TX-RAMP Certification Assessment

Concurrent with the evaluation conducted in Section 4.2.4 (Written Solicitation Response Evaluation) and Section 4.2.7 (Best and Final Offer), HHSC shall assess the documentation required by Section 6.9 (TX-RAMP Documentation) on a pass/fail basis. HHSC reserves the right to confirm TX-RAMP certification status on the DIR website and request additional information from a Respondent to supplement the TX-RAMP documentation submitted in its Solicitation Response.

If Respondent’s submission demonstrates TX-RAMP Level 2 Certification at time of HHSC’s review, the Solicitation Response meets the requisite standard to be considered for contract award.

If Respondent’s submission does not demonstrate TX-RAMP Level 2 Certification or TX-RAMP Provisional Certification at time of HHSC’s review, the Solicitation Response will be rejected, and the Respondent will not be further considered for contract award.

TX-RAMP Provisional Certification does not indicate compliance with TX-RAMP security baseline standards of a cloud computing service product. If Respondent’s submission demonstrates TX-RAMP Provisional Certification at the time of HHSC’s review, HHSC will conduct an

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4.2.7 Best and Final Offer

HHSC may, at its sole discretion, following the execution of Section 4.2.1 (Selection Methodology) request…