ESBD_File_348758_HHS0013588 - RFP.pdf

PCS 550 HHS RFP/RFO Template, RFP No. HHS0013588 Page 1 of 59 Version 2.1

Revision Date 09/12/2023

Cecile E. Young, Executive Commissioner

Request for Proposals (RFP) for

Storage, Order Fulfillment and Distribution Services

RFP No. HHS0013588

Date of Release: January 30, 2024

Responses Due: March 1, 2024 by 10:30 a.m. Central Time

915-44 *Fulfillment, Including Data Processing, Packaging, Labeling and Mailing of

Literature as a Package

915-45 Fulfillment, Inventory, and Storage Services

915-57 Mailing, Postage and Shipping Services, Electronic

915-58 Mailing Services: Addressing, Collating, Packaging, Sorting and Delivery

915-59 Mail Services, Express

917–85 Rent, Warehouse Space Onsite

958-88 Supply Chain Management Services

958-94 Warehouse Management Services

971–91 Warehouse Rental or Lease

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Table of Contents Article I. Executive Summary, Definitions, and Authority

1.1 Executive Summary

1.2 Definitions

1.3 Authority

Article II. Scope of Work

2.1 Description of Services/Statement of Work/Specifications

2.1.1 Storage Facility or Warehouse Space

2.1.2 Receiving and Processing Orders

2.1.3 Managing Inventory

2.1.4 Packing and Shipping

2.1.5 Pick-Ups and Deliveries

2.1.6 Returns

2.1.7 Online Inventory Management System

2.1.8 Information Security and Privacy Requirements

2.1.9 Hosting for Online Inventory Management System

2.1.10 Customer Service Policies and Procedures

2.1.11 Contractor Responsibilities

2.1.12 Agency Responsibilities

2.1.13 Controlled Correspondence

2.1.14 Deliverables and Performance Measures

2.1.15 Key Performance Measures and Liquidated Damages

2.1.16 Transition Plan

2.1.17 Turnover Plan

2.1.18 Payments and Invoices

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 No Guarantee of Volume, Usage, or Compensation

2.4 Governmental Entities

Article III. Administrative Information

3.1 Schedule of Events

3.2 Ambiguity, Conflict, or Discrepancy

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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 Pre-proposal Conference

3.4.1 Attendance

3.4.2 Questions at Pre-Proposal Conference

3.5 Solicitation Response Composition

3.5.1 General Information

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 Deadline

3.6.2 Submission Option

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 Advancement Criteria

4.2.7 Site Visits

4.2.8 Site Visit Criteria

4.2.9 Best and Final Offer (BAFO)

4.2.10 Final Written Response Score

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4.2.11 Summary of Best Value Determination

4.3 Questions or Requests for Clarification

Article V. Narrative/Technical Proposal

5.1 Narrative Proposal

5.1.1 Executive Summary

5.1.2 Key Staffing Profile

5.1.3 Project Workplan

5.1.4 Online Inventory Management System

5.1.5 Experience and Qualifications

5.2 Technical Proposal

Article VI. Required Respondent Information

6.1 Company Information

6.1.1 Company Narrative

6.1.2 Company Profile

6.2 Franchise Tax – Right to Transact Business in Texas

6.3 References

6.4 Major Subcontractor Information

6.5 Affirmations and Certifications

6.6 Other Reports

6.6.1 Dun and Bradstreet Reports

6.6.2 Financial Statements and Financial Solvency

6.6.3 Alternate Report

6.7 Corporate Guarantee

6.8 HUB Subcontracting Plan

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

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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. EXECUTIVE SUMMARY, DEFINITIONS, AND AUTHORITY

1.1 EXECUTIVE SUMMARY

The Texas Health and Human Services Commission (HHSC) is seeking a qualified Contractor to store, fulfill and distribute materials, as directed in Code of Federal Regulations (C.F.R.) Title 7

Part 246 for the HHS Special Supplemental Nutrition Program for Women, Infants and Children

(WIC).

The qualified Contractor must provide a warehouse for the storage of marketing materials and

WIC-related items, such as breast pumps, and will be required to fulfill and distribute the items, as needed.

HHSC Procurement Contracting Services (PCS) will administer the procurement process for this

Solicitation, which includes RFP 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 Version 2.4 and provide all other required information and documentation as set forth in this Solicitation.

Information regarding HHSC and its programs is available online and can currently be accessed at https://hhs.texas.gov/. Information regarding the HHSC WIC Program is available online and can currently be accessed at https://texaswic.org/.

1.2 DEFINITIONS

Refer to Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions

(UTC) – Vendor, Version 3.4 and Exhibit C, Health and Human Services (HHS) Additional

Provisions, Version 1.0, 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.

“Advancement Criteria” means the published criteria for Respondent to advance to the next phase of evaluation if multiple evaluation methods are utilized.

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

“Business Hours” means Monday – Friday 7:00 am – 6:00 pm Central Standard Time.

https://www.ecfr.gov/current/title-7/subtitle-B/chapter-II/subchapter-A/part-246 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-II/subchapter-A/part-246 https://hhs.texas.gov/ https://texaswic.org/

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“Business Day” refers to any day in which normal business operations of HHSC are conducted. A

Business Day excludes Saturday, Sunday, and national and state holidays. A Business Day includes a skeleton crew day and an optional holiday listed on the Texas Comptroller website

(https://comptroller.texas.gov/about/holidays.php).

“Calendar Day” includes any day including Saturday, Sunday, a skeleton crew day, and a national, state, and optional holiday listed on the Texas Comptroller website.

“Competitive Range” has the same meaning as the definition under Title 1 of the Texas

Administrative Code Part 15, Chapter 391, Subchapter A, Rule §391.107(3).

“Customer” includes WIC local agencies, WIC clinics, hospitals and other public health entities contracted by the State.

“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.

“Effective Date” has the same meaning as the definition in Exhibit B, Health and Human

Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4.

“Entities” means doctors’ offices, hospitals, public health organizations and educational institutions.

“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 http://www.txsmartbuy.com/esbd.

“Expiry Version” means a previous version of a material that will continue to be distributed, even though a new version has been received, until inventory of that version is depleted. Item numbers printed on both versions of the materials will be the same.

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

“HHSC” means the Health and Human Services Commission.

“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 $100,000 or more where the state agency has determined subcontracting https://comptroller.texas.gov/about/holidays.php https://comptroller.texas.gov/about/holidays.php https://comptroller.texas.gov/about/holidays.php https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=1&pt=15&ch=391&rl=107 http://www.txsmartbuy.com/esbd

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Revision Date 09/12/2023 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.

“Kitting” means individually separate but related items are grouped, packaged, and supplied together as one unit assembling items into a kit to be shipped out.

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

“Site Visit” refers to a secondary evaluation method following the evaluation of the written responses and is utilized to evaluate and ensure on-site specifications meet the needs outlined in the Solicitation.

“Software-as-a-Service” or “SaaS” means the service model described by the National Institute of

Standards and Technology (NIST) in Special Publication No. 800-145

(https://csrc.nist.gov/pubs/sp/800/145/final) to be the capability provided to the consumer to use the provider’s applications running on a cloud infrastructure. The applications are accessible from various client devices through a thin client interface such as a web browser (e.g., web-based e-mail). The consumer does not manage or control the underlying cloud infrastructure including network, servicers, operating systems, storage or even individual application capabilities, with possible exception of limited User-specific application configuration settings.

“Solicitation” means this RFP 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.

“Special Supplemental Nutrition Program for Women, Infants and Children” means HHSC WIC’s nutrition program for pregnant, breastfeeding women and families with children younger than 5.

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

“Surcharge” means an additional charge that may be billed to HHSC for processing expedited orders.

“Total Score” means the Final Written Response Score plus any additional points for secondary evaluation activities, as outlined by this Solicitation.

“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.

https://csrc.nist.gov/pubs/sp/800/145/final 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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“Walk-Up Orders” means an order is processed and picked up at the warehouse by an approved

HHSC employee or designee same day or next Business Day and will be processed as an expedite.

“Web-Based System” means a system that provides access to a software system using a computer and internet connection.

“WIC” means the Special Supplemental Nutrition Program for Women, Infants and Children

(WIC) authorized by section 17 of the Child Nutrition Act of 1966, 42 U.S.C. 1786.

1.3 AUTHORITY

HHSC is soliciting the Services stated in this Solicitation under of the authority Texas Government

Code § 2155.144(a), (b-1)(2).

ARTICLE II. SCOPE OF WORK

2.1 DESCRIPTION OF SERVICES/STATEMENT OF WORK/SPECIFICATIONS

The Contractor must provide a storage facility or warehouse space to store WIC-owned outreach materials and educational information, supplies, and equipment and must be able to fulfill the order requests and distribute items of various types throughout the state of Texas, and follow the standards of 7 C.F.R. 246 Special Supplemental Nutrition Program for Women, Infants and

Children.

Contractor must be able to support fulfillment and distribution of HHSC WIC program items by the required timeframe(s) to HHSC authorized Entities, clinics, and satellite offices. Currently, there are a total of 64 authorized Entities, at least 300 full-time clinics, and more than 200 part-time satellite offices providing services in and around the State of Texas.

Contractor must store, distribute, and fulfill orders of various types of outreach materials and educational information, supplies, and equipment for the HHSC WIC Program which include, but are not limited to, the following: pre-printed literature, forms, posters, special projects, outreach kits, breast pumps, supplies, and equipment. Note: All items are the property of HHSC.

The Contractor will be required to:

a. Provide a storage facility or warehouse space,

b. Complete the order fulfillment process that includes receiving and processing orders, managing inventory, packing and shipping, pick-ups and deliveries, and returns processing,

c. Provide and manage an online inventory management system, and https://www.govinfo.gov/link/uscode/42/1786 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-II/subchapter-A/part-246 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-II/subchapter-A/part-246

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d. Complete special projects, including but not limited to kitting, assembly and packing materials, as directed by HHSC.

2.1.1 Storage Facility or Warehouse Space

a. Contractor must provide a storage facility or warehouse space.

1. Storage facility is a dry, climate-controlled (i.e., both temperature and humidity controlled) commercial warehouse located within 55 miles of the main campus for the HHSC WIC program, located at 4616 West Howard Lane, Austin, Texas that is a minimum of 60,000 cubic feet within.

2. Warehouse space is an area within the storage facility dedicated exclusively for

HHSC storage that is a minimum of 60,000 cubic feet. The warehouse space may be part of a shared unit if the area dedicated to HHSC WIC is not shared.

b. Contractor must have adequate space to receive, stage, and store HHSC WIC program outreach materials and educational information, supplies, and equipment.

c. Contractor shall only charge a monthly storage fee to HHSC WIC program for the actual cubic feet of outreach materials and educational information, supplies, and equipment,

d. The storage facility must include and maintain the following:

1. Appropriate physical access controls (e.g., guard, badge, access code, key) including but not limited to:

i. Locks, limited access pad, and on-site person dedicated to monitoring entryway when door is unsecured at the storage facility’s front or main entrance; and

ii. One of the three security measures listed below at all other entrances:

1. Locks;

2. Limited access pad; or

3. On-site person dedicated to monitoring entryway when door is unsecured.

2. On-site supervision of personnel, subcontractors, and visitors during all hours of operation.

3. Up-to-date documentation regarding the physical location of items stored within the storage facility or warehouse space.

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4. 24-hour surveillance monitoring including, but not limited to, operational cameras at each entrance and the ability to access the live and recorded surveillance.

5. Adequate exterior lighting designed to deter trespassing after dark including, but not limited to, exterior lighting at each entrance/exit.

6. Current fire inspection report (completed in the past 12 months) and proof of fire alarm system monitoring.

e. At HHSC’s discretion, Contractor will be required to increase the warehouse space. HHSC shall provide the Contractor with notice of the increase at least thirty (30) Calendar Days in advance. Historically, HHSC has required Contractors to increase the warehouse space only during peak season in August and September. The required increase has been approximately 30,000 cubic feet. As stated in Section 2.3 No Guarantee of Volume, Usage or Compensation there is no guarantee of volume, usage, or total compensation.

f. Contractor must take all appropriate steps to safeguard the stored items against loss, theft, damage, and destruction.

g. Contractor must be able to provide long-term and short-term storage as directed by HHSC.

h. Contractor must maintain Occupational Safety and Health Administration (OSHA) requirements at all times.

i. Contractor must keep the storage facility or warehouse space in broom-clean condition

(free of clutter and debris and floors regularly swept or vacuumed).

j. Contractor must not store any explosives, flammable, or hazardous materials in the storage facility.

k. Contractor must not store any improperly packaged perishable goods or other items which may attract rodents, vermin, or other infestation in the storage facility.

l. Contractor must allow HHSC to inspect the storage facility or warehouse space and audit

HHSC WIC inventory, at any time, without advance notice, during Business Hours.

2.1.2 Receiving and Processing Orders

a. Contractor must receive all HHSC WIC items shipped from third-party vendors, on behalf of HHSC, at the storage facility or warehouse space.

b. As directed by HHSC, Contractor must arrange for items to be received to the warehouse.

The Contractor must inspect the contents of all shipments and count the items upon receipt.

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If the Contractor notices visible damage to the outside of the shipping containers, Contractor must:

1. Document minor visible damage on the copy of the shipping/packing slip(s)

(detailed list of shipment goods) provided to the delivery driver prior to departure;

and

2. Refuse delivery of containers that have severe damage to be sent back to the vendor.

b. Contractor must notify the HHSC Inventory Coordinator by email no later than one (1)

Business Day following receipt of the shipment and such notification must include a copy of the original shipping/packing slip(s) and a notation of any containers received with minor visible damage or refused due to severe visible damage.

c. For color printed materials, the Contractor may be asked by HHSC to randomly pull ten

(10) samples of the printed material upon delivery and set aside. Contractor must notify

HHSC of the collected samples within three (3) Business Days and Contractor must store the collected samples until delivered to or retrieved by HHSC.

d. Contractor must notify HHSC no later than one (1) Business Day following inspection where the contents are damaged, incorrect items have been received, or if there is a discrepancy between the contents and the shipping/packing slip.

e. Contractor must process all orders within three (3) Business Days of receiving the on-line order or order from HHSC Inventory Coordinator.

f. Contractor must process Walk-Up Orders for same day or next day pick up as requested by the HHSC WIC program.

g. Contractor shall bill order processing, that includes the printing labels and administration duties associated with processing, as one order processing fee.

h. Contractor shall bill handling, as a handling fee, when pulling an inventory item by SKU.

2.1.3 Managing Inventory

a. Contractor must perform an annual physical inventory review of all items stored in the warehouse and document the findings.

b. Contractor must submit monthly receiving inventory reports to HHSC WIC program. Note:

Reports will be documented and tracked using controlled correspondence with the HHSC contract manager per Section 2.1.13 Controlled Correspondence.

c. Starting Inventory - Contractor must take a physical inventory of all items either during the transition process or within thirty (30) Calendar Days of starting the contract. Contractor

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Business Days of completing.

d. As directed by HHSC WIC, Contractor must properly dispose and/or recycle obsolete inventory. Contractor may bill disposal, upon HHSC approval.

2.1.4 Packing and Shipping

a. Contractor must process any size order as requested by HHSC with no minimum or maximum amounts.

b. Unless otherwise directed by HHSC, Contractor must use economical shipping methods for the delivery of HHSC WIC Program items. Specifically, Contractor must ship orders in accordance with the following:

1. Contractor must offer bulk or freight shipping options. All in-stock orders must be shipped within three (3) Business Days of order receipt unless HHSC requests an order to be expedited.

2. HHSC may request overnight or expedited shipment of any item(s) stored by the

Contractor. No other Entity may request overnight or expedited shipments. The expense for an HHSC approved overnight or expedited shipment will be paid by HHSC or by the receiver and HHSC may provide preferred carrier and account numbers. An expedited request must be processed within twenty-four (24) hours.

3. Orders may be shipped to out-of-state Customers.

4. HHSC reserves the right to change any shipping method at any time during the Contract

Term. HHSC will notify the Contractor of any changes and provide applicable updated procedures.

c. Contractor shall bill an order fulfillment and packaging fee after boxing, placing the shipping label on a box, and organizing an order.

d. For processing individual items that weigh 90-pounds minimum and exceed 96 inches in length or 130 inches in length and girth, Contractor may bill HHSC an oversized and heavy handling fee.

e. Contractor must utilize eco-friendly packaging methods (i.e., not harmful to the environment) when available.

f. Contractor must provide skid wrap as needed.

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g. Contractor must provide shrink wrap for packing materials as needed.

h. Upon HHSC request, Contractor must be able to fulfil kitting, re-packing and assembly activities which include, but are not limited to, pick and pack, shrink wrap, poly bag, custom carton, or custom kitting.

i. Upon HHSC request, Contractor must assemble and package specified items for the HHSC

WIC Program.

j. HHSC will approve the efficiency and cost prior to use or implementation of packaging methods.

k. Contractor must perform zip code presort and group mailings by zip codes zones as defined by the United States Postal Service (USPS).

l. Contractor must obtain a National Change of Address Link (NCOA Link at https://postalpro.usps.com/mailing-and-shipping-services/NCOALink) license, which provides access to a secure dataset of change-of-address records filed with the USPS, within ten (10) Business Days of contract execution and maintain this license at all times.

m. Contractor will notify HHSC when postal rates regulated by the United States Postal Office change.

2.1.5 Pick-Ups and Deliveries

a. Contractor must arrange for the pick-up and delivery of all orders.

b. Contractor must obtain written proof of delivery and maintain records. HHSC may request to review proof of delivery paperwork as needed.

c. Contractor must deliver or arrange for the delivery of the HHSC WIC program items to

HHSC authorized Entities. The deliveries may result from orders processed through the online system or written instructions provided directly by HHSC.

d. To complete pallets and inside deliveries, and if specified in the delivery instructions, Contractor must arrange for the delivery to be delivered to the exact floor and room number.

e. If specified in the delivery instructions, if the items are shipped on pallets, Contractor must arrange for the removal of the containers from the pallets and deliver the items to the inside address. Contractor must also remove the pallets and any associated packing materials.

https://postalpro.usps.com/mailing-and-shipping-services/NCOALink

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f. Upon notification by HHSC, Contractor must arrange for HHSC WIC Program items to be picked-up from a designated location within Texas and delivered to the storage facility or other specified destination.

g. Contractor must allow HHSC appointed designees access to the storage facility to pick-up on demand items during Business Hours.

h. Contractor must provide an after-hour contact name and phone number for emergencies or deliveries made or accepted outside of Business Hours. In the case of no answer, the after-hour contact must respond within thirty (30) minutes.

2.1.6 Returns

a. Contractor must only accept refused deliveries when a customer’s refusal to accept containers is due to one of the following:

a. It has visible damage,

b. It could not be delivered to the inside address,

c. It includes items that were not ordered, or

d. It was delivered outside of the Customer’s business hours.

b. If an order is returned for any reason, the Contractor must notify the HHSC Inventory

Coordinator within one (1) Business Day. Note: HHSC must not be charged and will not be responsible for any delivery charge associated with an unsuccessful delivery due to an approved delivery refusal. If an order is refused for any reason, the Contractor, at its own cost, must deliver the corrected order within two (2) Business Days to the Customer that returned the delivery due to an approved delivery refusal.

c. If an order is returned as “undeliverable,” Contractor must promptly contact the HHSC

Inventory Coordinator for address verification and will resend the order no later than one

(1) Business Day following address verification. If an order is returned a second time, Contractor must notify HHSC within one (1) Business Day and restock and return items to inventory at no additional charge to HHSC.

2.1.7 Online Inventory Management System

a. The Contractor must provide a secure online inventory management system that will perform online inventory, ordering, fulfillment, and reporting as required by HHSC.

b. The online inventory management system must meet one of the solutions listed in Section

2.1.9 Hosting for Online Inventory Management System.

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c. The Contractor must provide an online inventory management system that, at a minimum, is 95% accurate when compared to the physical inventory. Contractor shall coordinate with the HHSC WIC Program to coordinate the annual physical inventory.

d. As part of the inventory management system, the Contractor must:

1. Assign a unique order number to each inventory item.

2. Confirm and track online orders.

3. Provide written or electronic communication to acknowledge Customer orders.

4. Have the ability to track and fill backorders on all materials and equipment.

5. Set order limits and user access for materials for multiple ordering tiers.

6. Remove user access within one (1) Business Day of being notified by HHSC.

7. Incorporate approvals on items specified by HHSC and set parameters as defined by HHSC.

8. Accept and process returned inventory and return items to inventory.

9. Have an online catalog that includes product tags/keywords (descriptors assigned to specific products for simplified user search capabilities) and the ability to view and reorder previous orders.

10. Ensure the online inventory management system provides real-time stock levels.

For example, if a Customer orders 500 breast pumps, the online inventory management system will automatically deduct the on-hand stock level to reflect the available inventory.

11. Have the ability to accept and fulfill orders from out-of-state Customers for products specifically designated and approved by HHSC.

12. Ensure the system complies with the state agency website standards set forth in

Title 1, Chapter 206, Subchapter B of the Texas Administrative Code.

13. Ensure the system complies with the applicable accessibility federal and state accessibility laws and regulations which includes: Title 1, Chapter 206, Subchapter

B, §206.50 Accessibility of the Texas Administrative Code, Chapter 213 of the

Texas Administrative Code, and Section 508 of the Rehabilitation Act of 1973.

14. Coordinate any planned system downtime with HHSC; such maintenance windows to be scheduled outside of the hours of 7:00 a.m. – 6:00 p.m. Central Standard Time.

https://texreg.sos.state.tx.us/public/readtac$ext.ViewTAC?tac_view=5&ti=1&pt=10&ch=206&sch=B&rl=Y https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=1&pt=10&ch=206&rl=50 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=1&pt=10&ch=206&rl=50 https://texreg.sos.state.tx.us/public/readtac$ext.ViewTAC?tac_view=5&ti=1&pt=10&ch=213&sch=B&rl=Y https://texreg.sos.state.tx.us/public/readtac$ext.ViewTAC?tac_view=5&ti=1&pt=10&ch=213&sch=B&rl=Y http://www.section508.gov/

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15. Maintain the system, including software, hardware, and network infrastructure.

16. Notify HHSC within an hour of service interruptions, followed by hourly updates until the issue is resolved.

17. Perform routine back-ups, based on HHSC’s business continuity and data retention requirements, without impacting scheduled operations.

18. Provide technical support to assist Customers with use of the online catalog functionality during Business Hours.

19. Provide online access 24 hours a day, 7 days a week, 365 days per year with an uptime of 99.9% inclusive of planned and unplanned outages.

20. Modify the inventory management system, as directed by HHSC. The Contractor may bill modifications as a database modifications charge, upon HHSC approval.

21. Provide reports as requested by HHSC. Type of reports and the frequency of reports will be determined by HHSC.

1. The report must include, but is not limited to, backordered items, low stock, out-of-stock, and replenishment reports.

2. Reports must be consistent and must accurately reflect HHSC additions and deletions to inventory per HHSC instructions.

22. Provide report and notification options for low stock, out-of-stock, back-ordered items, and Expiry Version control.

2.1.8 Information Security and Privacy Requirements

Contractor must provide HHSC with a security and privacy plan ninety (90) days after contract execution. The security and privacy plan must meet the requirements of Exhibit Q Texas Health and Human Services Information Security and Privacy Requirements and be approved by

HHSC.

2.1.9 Hosting for Online Inventory Management System

The online inventory management system must meet the requirements of a SaaS Solution, per

NIST SP 800-145. If the online inventory management system is a SaaS Solution it must provide information that clearly demonstrates that the Solution meets the National Institute of Standards and Technology (NIST) standard definition of SaaS, see Section 1.2 Definitions. Per NIT SP 800-

145, the SaaS solution must have the following five essential characteristics:

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a. On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service provider.

b. Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, tablets, laptops, and workstations).

c. Resource pooling. The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, and network bandwidth.

d. Rapid elasticity. Capabilities can be elastically provisioned and released, in some cases automatically, to scale rapidly outward and inward commensurate with demand. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be appropriated in any quantity at any time.

e. Measured service. Cloud systems automatically control and optimize resource use by leveraging a metering capability [1] at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported, providing transparency for both the provider and consumer of the utilized service.

2.1.10 Customer Service Policies and Procedures

a. Contractor must have written Customer service policies and procedures. These policies and procedures must be submitted to HHSC for approval.

b. Contractor’s Customer service policies and procedures, at a minimum, must include the following:

1. Guidelines for addressing Customer inquiries, requests, compliments, and complaints in a prompt, responsive, and courtesy manner;

2. Expected service standards when communicating with Customers e.g., in-person or via telephone, email, web chat, or other written correspondence; and

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3. A description of the problem or incident resolution parameters and the Contractor’s escalation protocol.

c. Contractor must respond in a comprehensive manner to HHSC within one (1) Business

Day of HHSC’s written inquiry regarding any Customer service matter.

d. Contractor must create and distribute Customer service satisfaction surveys to all HHSC online catalog users.

e. Contractor must not conduct any Customer satisfaction surveys that have not been pre-approved by HHSC.

2.1.11 Contractor Responsibilities

a. Contractor must ensure storage facility is ready and meets the requirements listed in

Section 2.1.1 Storage Facility or Warehouse Space within thirty (30) Calendar Days of

Contract execution. All items listed in Section 2.1.1 (d) must be included and approved by

HHSC. Note: This will be documented and tracked using controlled correspondence with the HHSC contract manager per Section 2.1.13 Controlled Correspondence.

b. Contractor must maintain all contract project management related tasks and provide maintenance and support at all times as required.

c. Contractor must be responsible, at its own expense, for the loss, theft, damage, and destruction of HHSC property, regardless of cause, including, without limitation, loss resulting from mishandling, improper storage, inappropriate packaging, fire, water, or fluctuations in temperature or humidity. Note: This will be documented and tracked using controlled correspondence with the HHSC contract manager per Section 2.1.13

Controlled Correspondence.

d. Contractor must notify HHSC within one (1) Business Day of any loss, theft, damage, or destruction of any items stored at the storage facility or in transit for delivery to HHSC authorized Entities. Note: This will be documented and tracked using controlled correspondence with the HHSC contract manager per Section 2.1.13 Controlled

Correspondence.

e. Contractor must purchase all postage and shipping at a bulk or discounted rate and must only invoice HHSC for the purchase amount to be reimbursed. (Note: HHSC will not reimburse any fees outside of the exact purchase amount).

f. Contractor must provide all the personnel resources necessary to perform the services, unless specifically stated as the responsibility of HHSC.

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g. Contractor must fill a temporary project resource role vacancy within ten (10) Business

Days of the role having been vacated, unless an alternate start date is approved by HHSC.

h. Contractor must fill a permanent project resource role vacancy within thirty (30) Business

Days of the role having been vacated, unless an alternate start date is approved by HHSC.

i. Contractor must notify HHSC of all changes to project resources roles (bullets “g” and “h” above). Note: This will be documented and tracked using controlled correspondence with the HHSC contract manager per Section 2.1.13 Controlled Correspondence.

j. Contractor must provide all personnel the resources necessary to perform the services required, unless specifically stated as the responsibility of HHSC.

k. Contractor must begin work within five (5) Business Days following HHSC approval of the transition plan unless a later date is otherwise agreed by HHSC in writing.

l. Upon request, Contractor will provide HHSC with quotes for kitting, assembly, and re-packing assignments.

m. Contractor shall notify HHSC sixty (60) days prior to diminishing purchase order amount.

2.1.12 Agency Responsibilities

a. HHSC will conduct a storage facility Site Visit, one week after the 30-Calendar Day deadline to confirm storage facility is meeting requirements listed in Section 2.1.1 Storage

Facility or Warehouse Space. HHSC will provide the Contractor with written approval if the facility is meeting requirements. If the facility is not meeting requirements, HHSC will request changes be made by a deadline to be discussed with HHSC. Approval will be provided once storage facility or warehouse space is meeting requirements per HHSC.

b. HHSC may request different shipping methods for various items based on time, materials, or other factors.

c. HHSC will notify the Contractor of upcoming orders that will be arriving to the warehouse.

HHSC will provide estimated shipping date at the time the order is placed. The HHSC contracted vendor suppling the goods/materials will communicate delivery details at least a 48-hours in advance.

d. HHSC will supply poly bags, custom cartons, or any other type of container, except for shrink wrap.

e. As needed, HHSC will request and approve pricing for each kitting and assembly assignments.

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f. HHSC will provide the Contractor with online inventory management system tier-level access information.

g. HHSC will notify the Contractor when a user must have access removed from the online inventory management system.

h. After Contractor submits the transition plan to HHSC, HHSC will review the transition plan for approval to ensure it meets the requirements listed in Section 2.1.16 Transition

Plan. HHSC will provide written acceptance of the transition plan when approved.

i. HHSC will review the Contractor’s security and privacy plan for approval to ensure it meets the requirements of Exhibit Q Information Security and Privacy Requirements.

Once approved, HHSC will provide the Contractor with written acceptance.

j. HHSC may update the transition plan at the agency’s discretion and will notify the

Contractor if a change is to be made.

k. USPS Postal Rates associated with HHSC approved shipping options (e.g., bulk shipping) will be approved by HHSC.

l. HHSC will review and provide approval for database modification charges and disposal costs.

2.1.13 Controlled Correspondence

In order to track and document requests for decisions and/or information, and the subsequent response to those requests, HHSC and the Contractor will use controlled correspondence. To be effective, each controlled correspondence document must be signed by both HHSC contract managers (or designees) and the Contractor identified in the Contract. Controlled correspondence documents will be maintained by both HHSC and Contractor in on-going logs and must become part of the normal status reporting process.

The controlled correspondence process may be used to document mutually agreeable operational departures from the specifications and/or changes to the specifications, provided such specifications are not expressly set forth in the Contract.

Controlled correspondence may be used to document the cost impacts of proposed changes;

however, controlled correspondence cannot be the basis of a claim for any pricing adjustment, (e.g., equitable adjustment).

Controlled correspondence may be used to memorialize the utilization of a rate that is less than the not to exceed pricing specified in the Contract. Any change that involves an increase in pricing must be addressed by an Amendment to the Contract. For the avoidance of doubt, controlled

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2.1.14 Deliverables and Performance Measures

All deliverables will be documented and tracked using controlled correspondence with the HHSC

Contract manager per Section 2.1.13 Controlled Correspondence.

Initial Meeting Contractor must attend the initial meeting arranged by the HHSC

WIC program upon contract execution. The HHSC WIC program will provide the Contractor with details on this meeting when it is arranged.

Transition Plan Contractor must provide a comprehensive transition plan to HHSC for approval prior to commencement of any work on or before the tenth (10th) Business Day following Contract execution.

After reviewing, HHSC will approve or deny the transition plan. If the transition plan is denied, HHSC will provide the Contractor with a rejection notice that explains the deficiencies.

If transition plan is not approved by HHSC after initial submission, the Contractor must address the deficiencies and update the transition plan within five (5) Business Days, or a deadline to be agreed to between HHSC and the Contractor and resubmit the revised plan to HHSC for review and approval.

Storage Facility or Warehouse

Space

Contractor must implement a storage quality control procedure on or before the tenth (10th) Business Day following the approval of the transition plan.

Contractor must obtain a storage facility or warehouse space that is at minimum of 60,000 cubic feet and located within 55 miles from

WICs main campus, thirty (30) Calendar Days after effective date of the contract.

Storage Facility or Warehouse

Space

Contractor must be meeting the storage facility requirements in

Section 2.1.1 Storage Facility or Warehouse Space (a) and (d) within thirty (30) Calendar Days of contract execution.

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Receiving and Order Processing Contractor must implement a receiving quality control procedure on or before the tenth (10th) Business Day following the approval of the transition plan.

Inventory Contractor must implement an inventory quality control procedure on or before the tenth (10th) Business Day following the approval of the transition plan.

Submit, within thirty (30) Calendar Days of the annual inventory review, an inventory report to HHSC, in an HHSC-approved format, that includes an explanation of how the research was conducted, related paperwork, and the overages/underages with final counts compared to Online Inventory Management System counts.

Packing and Shipping All in-stock orders must be shipped within three (3) Business Days of order receipt.

Pick-Ups Items must be picked-up on or before the fifth (5th) Business Day, following the Contractor’s receipt of HHSC’s notification that the items are ready to be picked-up.

Unless otherwise specified by HHSC, the items must be delivered to the specified destination on or before the fifth (5th) Business Day following the date of pick-up.

Delivery Contractor must implement a courier delivery process and distribution quality control procedure on or before the tenth (10th)

Business Day following the approval of the transition plan.

Returns Processing Contractor must implement a return shipment quality control procedure on or before the tenth (10th) Business Day following the approval of the transition plan.

Special Projects, Kitting and

Assembly

Contractor must implement a fulfillment quality control procedure on or before the tenth (10th) Business Day following the approval of the transition plan.

Online Inventory Management

System

Contractor must have an active Online Inventory Management

System on or before the ninetieth (90th) Calendar Day following

HHSC approval of the transition plan.

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Customer Service Policies and

Procedures.

Contractor must submit the Customer service policies and procedures to HHSC for consideration no later than fifteen (15)

Calendar Days following the execution of the Contract and, if applicable, any subsequent updates.

Customer Service Policies and

Procedures

Within ten (10) Business Days of receipt, Contractor must address any HHSC-provided feedback regarding its Customer service policies and procedures.

Customer Service Policies and

Procedures

Customer service satisfaction surveys must be computed and submitted to HHSC for review twice per calendar year beginning six (6) months after the Effective Date of the Contract on the tenth

(10th) Calendar Day of the following month.

Reporting Contractor must provide the following monthly reports no later than the tenth (10th) Calendar Day of the following month: Orders received, orders/ items processed, low stock and inventory report.

HHSC may request more reports as needed.

Turnover Plan Contractor must provide turnover plan six (6) months prior to the end of the base contract period or any extension thereof.

2.1.15 Key Performance Measures and Liquidated Damages

In the event of under-performance, HHSC may require the Contractor to provide a corrective action plan or other remedial steps.

a. HHSC and Contractor agree to work in good faith to ensure key performance measures

(KPMs) are met.

b. HHSC will have a duty to take reasonable steps to mitigate damage.

c. The Contractor will achieve the following KPMs and may have liability for Liquidated

Damages based on KPM failure as further described in each KPM.

d. Liquidated Damages will not be assessed if the State determines that Contractor is not responsible for the failure described in the respective KPM.

e. For purposes of these KPMs, all measurement periods must be monthly unless otherwise specified.

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f. Additionally, when a Liquidated Damage refers to a percentage point, or portion thereof, the

"portion thereof" means that a full percentage point deviation is not required to assess the

Liquidated Damage. For example:

1. If the standard is 99% and the results achieved are 98.6%, the Liquidated Damage that may be assessed is based on one percentage point (1%).

2. If the results achieved are 97.9%, the Liquidated Damage that may be assessed is based on two percentage points (2%).

g. Days are not prorated.

h. All key performance measures will be documented and tracked using controlled correspondence with the HHSC Contract manager per Section 2.1.13 Controlled

Correspondence.

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Key Performance Measures with Corresponding Liquidated Damages

KPM ID Summary Standard Measure Liquidated Damage

KPM001 Deliverable

Due Dates

The Contractor must meet due dates as agreed for all

Document Deliverables.

These include all approved

Document Deliverables as described in Scope of Work and resulting contract.

Each Business

Day beyond the agreed upon due date.

$200.00/Busines s Day per

Document

Deliverable.

Not to exceed an aggregate of

$4,000.00 in a given month.

KPM002 Project

Resource

Personnel

a. The Contractor must fill a temporary project resource role vacancy within ten

(10) Business Days of the role having been vacated, unless an alternate due date is approved by HHSC.

Each

Business Day beyond the due date.

$200.00/Business

Day…