Exhibit A 1

DPA Solicitation Number:

RFP AABA 2027-0047

Total Compensation and Actuarial Services

EXHIBIT A – STATEMENT OF WORK

Exhibit A 2

SECTION 1.0 GENERAL INFORMATION

1.1. Introduction

The State of Colorado (State) Department of Personnel and Administration (DPA or

Department), through the Division of Human Resources (DHR) and its Total Rewards Team, supports the State’s commitment to maintaining a competitive and effective total compensation program for employees in the State Personnel System. The Total Rewards Team leads statewide compensation efforts, including salary administration, pay practices, and other elements of total compensation, while also partnering with individual agencies to support sound compensation practices.

As required by C.R.S. 24-50-104, the Total Rewards Team develops the Annual Compensation

Report and the Quadrennial Total Compensation Report to evaluate the State’s total compensation in relation to the public and private sectors and to support the recruitment, motivation, and retention of a qualified and competent workforce. The awarded contractor

(Contractor) will work in partnership with the Total Rewards Team to develop the analyses, findings, and recommendations that support this report and the State’s broader compensation goals (Project or Work).

The amount the Department has available for each year of the contract is as follows: Years 1, 2, 4, and 5: $54,000 and Year 3: $300,000.

1.2. Background

The State has an established process for regularly reviewing its compensation practices to ensure it remains competitive with the public and private sectors. This Project continues those efforts and encompasses both the annual compensation review and the quadrennial total compensation review required under C.R.S. 24-50-104. The Project brings together current market data and analysis of salaries, pay ranges, benefits, pay practices, step pay, and other elements of total compensation to identify areas where the State may need to maintain or adjust its compensation approach. The resulting analysis will provide a consistent and informed basis for the State’s compensation decisions and ongoing efforts to attract and retain a qualified workforce.

1.3. Anticipated Contract Term

1.3.1. The initial term of the awarded contract (Contract) is expected to begin on February 1, 2027 and end on January 31, 2028.

1.3.2. The total duration of the Contract, from the Start Date until termination, and including the Department’s exercise of any options, is not anticipated to exceed five (5) years. The

Exhibit A 3

Department may extend the Contract beyond the anticipated term in this subsection, in accordance with the Colorado Procurement Code and its implementing rules, in the event the Department determines the extension is necessary to align the Contract with other

Department contracts; to address State programmatic or policy changes related to the

Contract or to provide sufficient time to transition the Work.

1.3.3. The Department may, within its sole discretion, choose to not exercise any option or

Extension Term in the contract for any reason. If the Department chooses to not exercise for any Extension Term, the Department may, in its sole discretion, re-procure the performance of the Work.

1.4. Terminology

1.4.1. The following list of terms shall be construed and interpreted as follows:

1.4.2. Benefits and Total Remuneration Analysis and Findings – An analysis of the State’s total compensation package, including all forms of pay and benefits provided to State employees, and findings regarding its value.

1.4.3. Business Day - Any day the State is open for business, excluding weekends and observed holidays.

1.4.4. Business Interruption - Any event that disrupts Contractor’s ability to complete the Work for a period of time, and may include, but is not limited to a disaster, power outage, strike, loss of necessary personnel or computer virus.

1.4.5. Compensation Structure Analysis and Recommendations – An analysis of the State’s total compensation structure, including salary structure, job descriptions, job evaluation factors, and related compensation practices, in relation to the State’s compensation philosophy, laws, policies, and legal guidance.

1.4.6. Contract - The agreement that is entered into as a result of this solicitation.

1.4.7. Contractor - The individual or entity selected through this solicitation to perform the Work and fulfill the requirements of the Contract.

1.4.8. Core Benchmark Classification - the fixed set of representative job classes evaluated every year to establish long-term market trends and baseline data.

1.4.9. Closeout Period - The period beginning on the earlier of ninety (90) days prior to the end of the last Extension Term or notice by the State of its decision to not exercise its option for an Extension Term and ending on the day that the Department has accepted the final deliverable for the Closeout Period, as determined in the Department-approved and updated Closeout Plan, and has determined that the closeout is complete.

Exhibit A 4

1.4.10. Deliverable - any tangible or intangible object produced by Contractor as a result of the

Work that is intended to be delivered to the State, regardless of whether the object is specifically described or called out as a “Deliverable” or not.

1.4.11. Department - The Colorado Department of Personnel & Administration, a department of the government of the State of Colorado.

1.4.12. Disaster - An event that makes it impossible for Contractor to perform the Work out of its regular facility or facilities, and may include, but is not limited to, natural disasters, fire or terrorist attacks.

1.4.13. Effective Date - The effective date defined in any resultant Contract.

1.4.14. Executive Summary – A summary of the final analysis and findings of the Total

Compensation Study. This provides a summary that is effective in outlining the larger body of material found in the Final Report.

1.4.15. Final Report – The entire final product of the Annual Compensation Report.

1.4.16. Internal Equity – The extent to which similar jobs with similar levels of responsibility are fairly aligned within the compensation structure.

1.4.17. Job Class - A group of occupations that are similar enough in essential character of duties and responsibilities that they describe the same job.

1.4.18. Job Class Series - A group of Job Classes that are different levels, but all engaged in similar work.

1.4.19. Key Personnel - The position or positions that are specifically designated as such in this

Contract.

1.4.20. Labor Markets – Public and private sector employers and organizations at the local, regional, and national levels.

1.4.21. Methodology – The system or approach used by Contractor to gather data, analyze and interpret findings, and determine how market data is collected, from whom, and how conclusions are reached.

1.4.22. National Standing – Status includes a Contractor with the ability to access national markets and its data; a Contractor who has conducted reputable compensation studies nationally and has experience in national compensation markets.

1.4.23. Occupational Group – Groups of occupations comparable enough to be treated similarly for purposes such as promotion and pay relationship structures.

1.4.24. Offeror - Any individual or entity that submits a proposal, or intends to submit a proposal, in response to this solicitation.

Exhibit A 5

1.4.25. Operational Start Date - When the State authorizes Contractor to begin fulfilling its obligations under the Contract.

1.4.26. Other Personnel - Individuals and subcontractors, in addition to Key Personnel, assigned to positions to complete tasks associated with the Work.

1.4.27. Party – The State or Contractor; collectively “Parties.”

1.4.28. Quadrennial Compensation Report - A report required under C.R.S. § 24-50-104(4)(a) and submitted by the State Personnel Director every four years to evaluate the State's total compensation package against the external market. The report analyzes compensation components, including the salary structure, group benefit contributions, step pay, and provides recommendations to support a competitive total compensation philosophy that promotes the recruitment, reward, and retention of a qualified workforce.

1.4.29. Rotational Benchmark Classifications - A secondary set of job classes selected annually on a rotating basis to target statewide needs and to ensure all remaining job classifications are systematically evaluated.

1.4.30. Start-Up Period - The period starting on the Effective Date and ending on the Operational

Start Date.

1.4.31. State Fiscal Year (SFY) - The twelve (12) month period beginning on July 1st of a year and ending on June 30th of the following year.

1.4.32. Survey Benchmark Descriptions – A shortened Job Class description containing key elements of duties and responsibilities, typically used to compare an organization’s established Job

Classes to the market.

1.4.33. Total Compensation Components – Includes, but not limited to, salary, group benefit plans, retirement benefits, step pay, incentives, premium pay practices, and leave. C.R.S. 24-50-

104.

1.4.34. Total Compensation Study – Study of total compensation components and the State’s position relative to the market.

1.4.35. Work Plan – To be included in the Contract. This outlines the approach and methodologies that will be used to complete the Work by Contractor including a step-by-step plan, timeframes, and specific Deliverables.

SECTION 2.0 OFFEROR’S EXPERIENCE AND PERSONNEL

2.1. Accessibility Requirements

2.1.1. All Work performed as a result of this solicitation and resultant Contract must comply with all applicable provisions of §§24-85-101, et seq., C.R.S., and the Accessibility Standards for

Exhibit A 6

Individuals with a Disability, as established by the Office Of Information Technology pursuant to Section §24-85-103 (2.5), C.R.S. and 3) all State of Colorado technology standards related to technology accessibility and with Level AA of the most current version of the Web Content Accessibility Guidelines (WCAG), incorporated in the State of Colorado technology standards.

2.2. Organizational Experience

2.2.1. The State has determined that it desires specific experience and skills for Contractor to possess in order for Contractor to be able to complete the Work efficiently while meeting the demands and deadlines of the Department.

2.2.2. The State will evaluate Contractor’s experience pertaining to the following:

2.2.2.1. To be considered for award, Contractor shall meet, at minimum, the following qualifications. These qualifications shall be documented in Contractor’s proposal:

2.2.2.1.1. Contractor shall have at least five (5) years of experience providing actuarial consulting services regarding Total Compensation Analysis to organizations with more than 10,000 employees.

2.2.2.1.2. Contractor shall have at least three (3) years of experience providing actuarial consulting services regarding Total Compensation Analysis for Public Sector clients.

2.2.2.1.3. Contractor shall have at least one (1) Key Personnel assigned to the Project who has, at minimum, three (3) years providing actuarial consulting services regarding

Total Compensation Analysis to organizations with more than 10,000 employees.

2.3. Contractor’s General Requirements

2.3.1. Contractor shall work cooperatively with State staff and, if applicable, the staff of other

State contractors to ensure the completion of the Work. The State may, in its sole discretion, use other contractors to perform activities related to the Work that are not contained in the Contract or to perform any of the State’s responsibilities. In the event of a conflict between Contractor and any other State contractor, the State will resolve the conflict, and Contractor shall abide by the resolution provided by the State.

2.3.2. All Deliverables shall meet State-approved format and content requirements. The State will specify the number of copies and media for each Deliverable.

2.3.3. Each Deliverable shall follow the Deliverable submission process as follows:

2.3.3.1. Contractor shall submit each Deliverable to the State for review and approval.

2.3.3.2. The State will review the Deliverable and may direct Contractor to make changes to the Deliverable. Contractor shall make all changes no later than five (5) Business Days

Exhibit A 7 following the State’s direction to make the change unless the State allows a longer period in writing.

2.3.3.3. Changes the State may directly include, but are not limited to, modifying portions of the Deliverable, requiring new pages or portions of the Deliverable, requiring resubmission of the Deliverable or requiring inclusion of information or components that were left out of the Deliverable.

2.3.3.4. The State may also direct Contractor to provide clarification or provide a walkthrough of any Deliverable to assist the State in its review. Contractor shall provide the clarification or walkthrough as directed by the State.

2.3.3.5. Once the State has received an acceptable version of the Deliverable, including all changes directed by the State, the State will notify Contractor of its acceptance of the

Deliverable in writing. A Deliverable shall not be deemed accepted prior to the State’s notice to Contractor of its acceptance of that Deliverable.

2.3.3.6. Contractor shall employ an internal quality control process to ensure that all

Deliverables are complete, accurate, easy to understand and of high quality. Contractor shall provide Deliverables that, at a minimum, are responsive to the specific requirements for that Deliverable, organized into a logical order, contain accurate spelling and grammar, are formatted uniformly, and contain accurate information and correct calculations. Contractor shall retain all draft and marked-up documents and checklists utilized in reviewing Deliverables for reference as directed by the State.

2.3.3.7. If any due date for a Deliverable falls on a day that is not a Business Day, then the due date shall be automatically extended to the next Business Day, unless otherwise directed by the State.

2.3.3.8. All due dates or timelines that reference a period of days, months or quarters shall be measured in calendar days, months and quarters unless specifically stated as being measured in Business Days or otherwise. All times stated in the Contract shall be considered to be in Mountain Time, adjusted for Daylight Saving Time as appropriate, unless specifically stated otherwise.

2.3.3.9. No Deliverable, report, data, procedure or system created by Contractor for the State that is necessary to fulfilling Contractor's responsibilities under the Contract, as determined by the State, shall be considered proprietary.

2.3.3.10. If any Deliverable contains ongoing responsibilities or requirements for Contractor, such as Deliverables that are plans, policies or procedures, then Contractor shall comply

Exhibit A 8 with all requirements of the most recently approved version of that Deliverable.

Contractor shall not implement any version of any such Deliverable prior to receipt of the State’s written approval of that version of that Deliverable. Once a version of any

Deliverable described in this subsection is approved by the State, all requirements, milestones and other Deliverables contained within that Deliverable shall be considered to be requirements, milestones and Deliverables of this Contract.

2.3.3.11. Any Deliverable described as an update of another Deliverable shall be considered a version of the original Deliverable for the purposes of this subsection.

2.3.4. Contractor shall create a Business Continuity Plan that includes, but is not limited to, all of the following:

2.3.4.1. A Business Continuity Plan that Contractor will follow in order to continue operations after a Disaster or a Business Interruption. The Business Continuity Plan shall include, but is not limited to, all of the following:

2.3.4.1.1. How Contractor will replace staff that has been lost or is unavailable during or after a Business Interruption so that the Work is performed in accordance with the

Contract.

2.3.4.1.2. How Contractor will back-up all information necessary to continue performing the

Work, so that no information is lost because of a Business Interruption.

2.3.4.1.3. In the event of a Disaster, the plan shall also include how Contractor will make all information available at its back-up facilities.

2.3.4.1.4. How Contractor will minimize the effects on the Department of any Business

Interruption.

2.3.4.1.5. How the Contractor will communicate with the State during the Business

Interruption and points of contact within Contractor’s organization the State can contact in the event of a Business Interruption.

2.3.4.1.6. Planned long-term back-up facilities out of which Contractor can continue operations after a Disaster.

2.3.4.1.7. The time period it will take to transition all activities from Contractor’s regular facilities to the back-up facilities after a Disaster.

2.3.4.1.8. Contractor shall deliver the Business Continuity Plan to the State for review and approval.

2.3.4.2. DELIVERABLE: Business Continuity Plan

2.3.4.3. DUE: Within 10 Business days after the Effective Date

Exhibit A 9

2.3.4.4. Contractor shall review its Business Continuity Plan and update the plan, as appropriate, to account for any changes in Contractor’s processes, procedures or circumstances. Contractor shall submit an Updated Business Continuity Plan that contains all changes from the most recently approved prior Business Continuity Plan or

Updated Business Continuity Plan or shall note that there were no changes.

2.3.4.4.1. DELIVERABLE: Updated Business Continuity Plan

2.3.4.4.2. DUE: Annually on February 1st

2.3.4.5. In the event of any Business Interruption, Contractor shall implement its most recently approved Business Continuity Plan or Updated Business Continuity Plan immediately after Contractor becomes aware of the Business Interruption. In that event, Contractor shall comply with all requirements, Deliverables, timelines and milestones contained in the implemented plan.

2.4. Personnel Requirements

2.4.1. Personnel General Requirements

2.4.1.1. Contractor shall provide qualified Key Personnel and Other Personnel as necessary to perform the Work throughout the term of the Contract.

2.4.1.2. Contractor shall provide the State with a final list of individuals assigned to the Contract and appropriate contact information for those individuals.

2.4.1.2.1. DELIVERABLE: Final list of individuals assigned to the Contract

2.4.1.2.2. DUE: Within 5 Business Days following the Effective Date

2.4.1.3. Contractor shall update this list upon the State’s request to account for changes in the individuals assigned to the Contract.

2.4.1.3.1. DELIVERABLE: Updated list of individuals assigned to the Contract

2.4.1.3.2. DUE: Within 5 Business Days following the State’s request for an update

2.4.2. Key Personnel

2.4.2.1. Contractor shall not permit any individual proposed for assignment to Key Personnel positions to perform any Work prior to the State’s approval of that individual to be assigned as Key Personnel.

2.4.2.2. Contractor shall not voluntarily change individuals in Key Personnel positions without the prior written approval of the State. Contractor shall supply the State with the name, resume and references for any proposed replacement whenever there is a change to Key

Personnel. Any individual replacing Key Personnel shall have qualifications that are

Exhibit A 10 equivalent to, or exceed, the qualifications of the individual that previously held the position, unless otherwise approved, in writing, by the State.

2.4.2.2.1. DELIVERABLE: Name(s), resume(s) and references for the person(s) replacing anyone in a Key Personnel position during a voluntary change

2.4.2.2.2. DUE: At least 5 Business Days prior to the change in Key Personnel

2.4.2.3. If any individual filling a Key Personnel position leaves employment with Contractor, Contractor shall propose a replacement person to the State. The replacement person shall have qualifications that are equivalent to or exceed the qualifications of the individual that previously held the position, unless otherwise approved, in writing, by the State.

2.4.2.3.1. DELIVERABLE: Name(s), resume(s) and references for the person(s) replacing anyone in a Key Personnel position who leaves employment with Contractor

2.4.2.3.2. DUE: Within 10 Business Days following Contractor’s receipt of notice that the person is leaving employment, unless the State allows for a longer time in writing for Contractor to recruit a replacement.

2.4.2.4. Contractor shall designate people to hold the following Key Personnel positions:

2.4.2.4.1. Project Lead

2.4.2.4.1.1. The Project Lead shall have at least five (5) years of experience providing actuarial or total compensation consulting services to organizations with more than 10,000 employees and at least three (3) years of experience providing similar services to public sector clients.

2.4.2.4.1.2. The Project Lead shall be responsible for serving as Contractor’s primary point of contact for the State, ensuring the accuracy, timeliness, and completeness of all

Work, overseeing project staffing, coordinating meetings, and resolving project issues.

2.4.2.4.2. Benefits Subject Matter Lead (every 4th year only)

2.4.2.4.2.1. This individual shall have experience evaluating employee benefits programs, including medical, dental, vision, leave, short term disability, long term disability, and retirement.

2.4.2.4.2.2. This individual shall support the benefits analysis, off year benefits review, and related reporting under the Contract.

2.4.2.5. Contractor shall not allow for any individual to fill more than one (1) of the roles defined as Key Personnel.

2.4.3. Other Personnel

Exhibit A 11

2.4.3.1. Contractor shall use its discretion to determine the number of Other Personnel necessary to perform the Work in accordance with the requirements of this Contract. If the State has determined that Contractor has not provided sufficient Other Personnel to perform the Work in accordance with the requirements of this Contract, Contractor shall provide all additional Other Personnel necessary to perform the Work in accordance with the requirements of this Contract at no additional cost to the State.

2.4.3.2. Contractor shall ensure that all Other Personnel have sufficient training and experience to complete all portions of the Work assigned to them. Contractor shall provide all necessary training to its Other Personnel, except for State-provided training specifically described in this Contract.

2.4.3.3. Contractor may subcontract to complete a portion of the Work required by the Contract.

The conditions for using a subcontractor or subcontractors are as follows:

2.4.3.3.1. Contractor shall not subcontract more than 40% of the Work.

2.4.3.3.2. Contractor shall provide the organizational name of each Subcontractor and all items to be worked on by each Subcontractor to the State.

2.4.3.4. DELIVERABLE: Name of each Subcontractor and items on which each Subcontractor will work

2.4.3.5. DUE: The later of 30 days prior to the Subcontractor beginning work or the Effective Date

2.4.4. Personnel Availability

2.4.4.1. Contractor shall ensure Key Personnel and Other Personnel assigned to the Contract are available for meetings with the State during the State’s normal business hours, as determined by the State. Contractor shall also make these personnel available outside of the State’s normal business hours and on weekends with prior notice from the State.

2.4.4.2. Contractor’s Key Personnel and Other Personnel shall be available for all regularly scheduled meetings between Contractor and the State, unless the State has granted prior, written approval otherwise.

2.4.4.3. Contractor shall ensure that the Key Personnel and Other Personnel attending all meetings between the State and Contractor have the authority to represent and commit Contractor regarding work planning, problem resolution and program development.

SECTION 3.0 PROJECT SPECIFIC STATEMENT OF WORK

3.1. Background and Purpose

3.1.1. The Work under this Contract supports the State Personnel Director’s responsibility to annually assess the State’s total compensation practices, levels, and costs. Quadrennially

Exhibit A 12

(every four (4) years), the State Personnel Director is responsible for producing a compensation report that identifies adjustments needed for the upcoming fiscal year to maintain the State’s salary structure, State contributions for group benefit plans, and step pay.

The compensation report supports the State’s total compensation philosophy of providing innovative total compensation that meets or exceeds the total compensation offered by public sector employers, private sector employers, or a combination of both. This approach is intended to support the recruitment, motivation, and retention of a qualified and competent workforce within the State personnel system.

3.2. Required Work

3.2.1. Contractor shall provide expert actuarial and total compensation consulting services and subject matter expertise regarding market trends and best practices related to total compensation to evaluate the competitiveness of State salaries and benefits. Contractor must employ a transparent, mathematically sound methodology incorporating, but not limited to, comparable data from both public and private sectors.

3.2.2. Annual Compensation Report Requirements

3.2.2.1. The analysis shall benchmark individual components of the State’s total compensation program against comparable local, national, and federal data sources across both public and private sectors.

3.2.2.2. Contractor shall use rigorous, industry-standard methodologies to evaluate prevailing market compensation and deliver data-driven, evidence-based recommendations. To ensure full transparency, Contractor shall comprehensively document and disclose all methodologies, processes and work products to the State.

3.2.2.3. Contractor shall evaluate the State’s current compensation methodology and advise the

State whether different methodologies should be considered or would better meet the

State’s needs, while preserving enough continuity for year to year comparison where practicable.

3.2.2.4. Contractor shall deliver the findings in a State-approved electronic Final Report. The State may review the Final Report and request updates, corrections, or revisions, as necessary

3.2.2.5. Contractor shall build additional custom ad hoc reports as requested by the State.

3.2.2.6. Contractor shall provide market data, up to four times per year or as otherwise approved by the State, to support system maintenance studies.

Exhibit A 13

3.2.2.7. Contractor shall coordinate and participate in meetings and presentations requested by the State, including meetings regarding methodology, survey data, report findings, ad hoc analyses, and other services performed under the Contract.

3.2.2.8. Contractor shall work with legislative auditors or third-party vendors engaged by the State to conduct audits as required in CRS 24.50.104.4 (b)(I) to support the completion of performance audits related to the total compensation report or related analyses developed under the Contract.

3.2.3. Quadrennial Total Compensation Report Requirements

3.2.3.1. In addition to the Annual Compensation Report Requirements described in 3.2.1.1, Contractor shall conduct a rigorous and defensible market analysis of the State’s total compensation and benefits including cash compensation (base pay, incentives, premium pay practices and step pay) and benefits (medical, dental, vision, leave, short-and-long term disability, life and AD&D insurance and retirement).

3.2.3.2. Contractor shall deliver the findings in a State-approved electronic Final Report. The State may review the Final Report and request updates, corrections, or revisions, as necessary.

3.2.3.3. The analysis shall benchmark individual components of the State’s total compensation program against comparable local, national, and federal data sources across both public and private sectors.

3.3. Deliverables

3.3.1. Work Plan

3.3.1.1. At the beginning of each year, Contractor shall create a Work Plan outlining the plan for completing each of the following Deliverables and the due date for each:

3.3.1.1.1. Market Study Methodology

3.3.1.1.2. Core Benchmark and Rotational Benchmark Job Titles

3.3.1.1.3. Comparable Employers and Other Data Sources

3.3.1.1.4. Collecting and analyzing relevant Market Data

3.3.1.1.5. Method and due date for the draft and Final Report detailing the findings

3.3.1.2. Contractor shall ensure that the Work Plan also includes, at a minimum:

3.3.1.2.1. A step by step schedule

3.3.1.2.2. Key timeframes

3.3.1.3. Contractor shall work collaboratively with the State on the Work Plan, and the Work Plan shall be a living document that is updated and modified throughout the term of each cycle.

Exhibit A 14

3.3.1.4. Contractor shall ensure that it coordinates collaboration sessions with the State to ensure that the Work Plan meets all requirements.

3.3.1.5. Contractor shall incorporate feedback from the State into the Work Plan.

3.3.1.6. Contractor shall prepare and deliver the Draft Work Plan to the State.

3.3.1.6.1. DELIVERABLE: Draft Work Plan

3.3.1.6.2. DUE DATE: March 1 of each calendar year

3.3.1.7. After review and incorporating feedback from the State, Contractor shall deliver the Final

Work Plan to the State.

3.3.1.7.1. DELIVERABLE: Final Work Plan

3.3.1.7.2. DUE DATE: March 15 of each calendar year

3.3.1.8. Contractor shall maintain and continue to update the Work Plan throughout the cycle in collaboration with the State. Contractor shall provide an updated Work Plan to the State after changes have been made.

3.3.1.8.1. DELIVERABLE: Updated Work Plan

3.3.1.8.2. DUE DATE: Within 5 Business Days after the changes have been made

3.3.2. Market Study Methodology

3.3.2.1. Contractor shall provide multiple options for conducting the market study including the implication on each study type. Methodology shall include, at a minimum, relevant (not more than 24 months old) market data, a minimum of three (3) survey sources and at least three (3) distinct responses for each job classification match, and a mix of public and private sector employers.

3.3.2.2. Contractor shall document the market study methodology options and shall outline the pros and cons of each choice.

3.3.2.3. Contractor shall incorporate feedback from the State into the Market Study Methodology.

3.3.3. Core Benchmark and Rotational Benchmark Job List

3.3.3.1. Contractor shall collaborate with the State to develop and produce a recommended list of

Core Benchmark and Rotational Benchmark job classifications including justification for inclusion or exclusion.

3.3.4. Comparable Employers and Other Data Sources

3.3.4.1. Contractor shall develop and deliver an analysis and report outlining the applicable and agreed-upon comparable public and private employers and other related data sources, citing clear and sound justification for each recommendation.

3.3.5. Market Analysis

Exhibit A 15

3.3.5.1. Contractor shall conduct a Market Analysis for the applicable cycle using the agreed upon

Core Benchmark and Rotational Benchmark job classes. The analysis shall include

Benchmark Classes agreed upon by the State and Contractor.

3.3.5.2. Contractor shall conduct a market pricing analysis for each agreed upon Benchmark Class against directly comparable Labor Market data from both public and private sector sources.

3.3.5.3. Contractor shall use Survey Benchmark Descriptions, Job Class information, Occupational

Group relationships, and other relevant market indicators to assess job comparability and identify potential benchmark matches.

3.3.5.4. Contractor shall apply a clear and technically sound Methodology for gathering and analyzing market data and determining benchmark matches, ensuring a 70% to 80% match in core responsibilities.

3.3.5.5. Contractor shall submit the Benchmark Market Analysis to the State for review, including proposed benchmark matches, supporting rationale, recommendations, and relevant market data for each Benchmark Class.

3.3.5.6. After review and incorporating feedback from the State, Contractor shall deliver the Final

Benchmark Market Analysis to the State, including documentation of the changes made and reason for the changes.

3.3.6. Classification and Compensation Structure Analysis

3.3.6.1. Contractor shall conduct a rigorous, methodologically sound market analysis of both the classification and compensation structures, evaluating pay grade minimums, midpoints, maximums, range spreads, step increments, and grade differentials, against comparable public and private sector markets.

3.3.6.2. Contractor shall submit the Classification and Compensation Structure Analysis findings to the State for review, including recommendations to improve the State’s position in the market.

3.3.6.3. After review and incorporating feedback from the State, Contractor shall deliver the Final

Classification and Compensation Structure Analysis to the State, including documentation of changes made and the reason for the change.

3.3.7. Benefits and Total Remuneration Analysis and Findings

3.3.7.1. Annually, Contractor shall analyze the State’s compensation package, including but not limited to average base salary, step pay and progression, and range progression against relevant market data to assess competitiveness, employee value and cost to the State.

Exhibit A 16

3.3.7.2. Annually, Contractor shall evaluate the State’s compensation structure in alignment with the State’s compensation philosophy, laws, policies, legal guidance, partnership agreement, job class descriptions, job evaluation factors, and pay structure, and provide findings and recommendations.

3.3.7.3. Quadrennially, in addition to the annual requirements above, Contractor shall analyze the

State’s total compensation package, including average base salary, total cash compensation, and employer provided benefits such as medical, dental, vision, leave, short-and-long term disability, life and AD&D insurance and retirement, against relevant market data to assess competitiveness, employee value, and cost to the State.

3.3.8. Final Report

3.3.8.1. Contractor shall prepare and deliver a Draft Final Report that incorporates the applicable analysis, findings, conclusions, and recommendations required under this Contract. The

Final Report shall include, at a minimum, the following sections and analyses, as applicable to the reporting cycle:

3.3.8.1.1. Executive Summary

3.3.8.1.2. Introduction

3.3.8.1.3. Philosophy – Defined in C.R.S. 24-50-104 (1)

3.3.8.1.4. Description of Methodologies used – see Methodology definition

3.3.8.1.5. Data Sources – Identify the salary surveys that were used to evaluate market salaries and pay structures, and describe the methodology used to apply geographic adjustments and age the data.

3.3.8.1.6. Total Compensation Findings - Analysis of total compensation data, market comparisons, and recommendations to the State.

3.3.8.1.7. Total Compensation Value (Quadrennially) – The dollar value received by the employee, compared to the dollar cost to the State in order to provide recompense for services rendered, to include, but not limited to, medical insurance, dental insurance, life insurance, short-term disability, long-term disability, leave, and retirement. Total Compensation value also includes the employee’s average base salary.

3.3.8.1.8. Salary Analysis and Findings – Study and conclusions regarding the State’s actual salaries in comparison to market industry practices (comparing literal dollars to dollars), including recommendations regarding base salary, pay ranges, and compensation structure

Exhibit A 17

3.3.8.1.9. Market Projections – Analysis of projected market figures, characteristics, and trends relevant to the target market, including but not limited to a comprehensive aging schedule.

3.3.8.1.10. Total Compensation Analysis and Findings – Analysis of the State’s total compensation data in comparison to the market.

3.3.8.1.11. Individual job classification structure analysis and findings – Study of and conclusions regarding the State’s framework of individual job classes structure and the need for range adjustments.

3.3.8.1.12. System maintenance study analysis and findings – Study of and conclusions regarding part or all of the State’s classification and compensation structure as noted in C.R.S

24-50-104(1)(b).

3.3.8.1.13. State Patrol Trooper analysis and findings (as defined in C.R.S 24-50-104) – Study of and conclusions regarding comparisons of the State Patrol Trooper Class Series and individual classifications compared to the three highest paid law enforcement jurisdictions in the State of Colorado.

3.3.8.1.14. Benefits Analysis and findings (Quadrennially) – Study of and conclusions regarding the valuation of and cost of benefit packages offered by the State (including direct and indirect)

3.3.8.1.15. Retirement value (Quadrennially) - Study of, methodological description, and conclusions regarding the total retirement compensation (defined benefit plan plus any defined contribution plan plus social security) in accordance with C.R.S. 24-50-

104 (10).

3.3.8.1.16. Study of Leave (Quadrennial) – Study of, methodological description, and conclusions regarding types of leave offered, comparisons within the market, and any other pertinent information determined useful regarding leave compensation.

3.3.8.1.17. Analysis and findings of the State’s step pay system, compared to market practices.

3.3.9. Executive Summary

3.3.9.1. Contractor shall provide a draft Executive Summary for State review prior to finalizing the comprehensive Executive Summary of the final analysis, findings, and recommendations for the Total Compensation Study. At a minimum, the Executive Summary shall include an overview of the purpose and scope of the study, the methodology used, key findings regarding salary competitiveness, notable market trends, primary conclusions, and recommendations for consideration by the State. In quadrennial years, the Executive

Exhibit A 18

Summary shall also include key findings regarding premium pay and benefits such as medical, dental, vision, leave, short-and-long term disability, life and AD&D insurance and retirement competitiveness.

3.3.9.2. Executive Summary must also contain actuarial certification.

3.4. Audit Review

3.4.1. The State may engage a third party to conduct or assist with an audit of Contractor’s work.

Contractor shall provide the State, its designated auditor, and any third party engaged by the State with documentation necessary to review and validate the Work performed under this Contract.

3.4.2. Contractor shall provide backup documentation for auditing purposes, including, but not limited to:

3.4.2.1. Methodology, assumptions, definitions, data sources, and source documentation.

3.4.2.2. Calculations, formulas, models, and workpapers supporting the analysis and findings.

3.4.2.3. Documentation of all material data adjustments, exclusions, corrections, transformations, and changes, including the reason for each.

3.4.2.4. Version history and supporting documentation for material deliverables.

3.4.2.5. Documentation sufficient to reconcile and reproduce the final results.

3.4.2.6. Supporting documentation for findings, conclusions, and recommendations.

3.4.2.7. Any additional documentation reasonably requested by the State or its designated auditor.

SECTION 4.0 COMPENSATION AND INVOICING

4.1. Pricing

4.1.1. The compensation under the Contract shall consist of the following:

4.1.1.1. Milestone-based payments that will be paid upon completion of all Deliverables that have been submitted and accepted by the State.

4.1.1.2. During years 1, 2, 4, and 5 of the Contract payment will be made for the following milestones:

4.1.1.3. Milestone 1

4.1.1.3.1. Work Plan

4.1.1.3.2. Market Study Methodology

4.1.1.3.3. Core Benchmark and Rotational Benchmark Job List

4.1.1.3.4. Comparable Employers and Other Data Sources

4.1.1.4. Milestone 2

4.1.1.4.1. Market Analysis

Exhibit A 19

4.1.1.4.2. Classification and Compensation Structure Analysis

4.1.1.4.3. Final Report

4.1.1.4.4. Executive Summary

4.1.1.5. During year 3 of the Contract, the Quadrennial Compensation Report will be due. During this year, payment will be made for the following milestones:

4.1.1.6. Milestone 1

4.1.1.6.1. Work Plan

4.1.1.6.2. Market Study Methodology

4.1.1.6.3. Core Benchmark and Rotational Benchmark Job List

4.1.1.6.4. Comparable Employers and Other Data Sources

4.1.1.7. Milestone 2

4.1.1.7.1. Market Analysis

4.1.1.7.2. Classification and Compensation Structure Analysis

4.1.1.7.3. Final Report

4.1.1.7.4. Executive Summary

4.1.1.7.5. Benefits and Total Remuneration Analysis and Findings

4.1.1.8. Payments for ad hoc projects will be paid on a time and materials (T&M) basis. Contractor shall submit fully burdened, hourly labor rates and all non-labor expenses incurred specifically for an authorized ad hoc project which shall be reimbursed at actual cost.

4.1.1.9. T&M pricing shall be itemized and include hourly rates for each role that will be used in the performance of Work, any and all material pricing, as appropriate, and markup costs.

4.1.1.10. Contractor shall not begin any ad hoc project without prior written approval from the

State, which may be provided via email. This approval must explicitly confirm both the finalized scope of the project and the agreed-upon project cost.

4.1.2. Proposed pricing shall remain firm during the initial term of the Contract.

4.1.3. Pricing shall be structured and submitted as instructed in Exhibit C – Pricing and Rates.

4.2. Detailed Invoicing and Payment Procedures

4.2.1. Contractor shall submit separate invoices by fiscal year, with one invoice processed on or before June 30 and a second invoice submitted on or after July 1.

4.2.2. The invoice shall contain all of the following for the period for which the invoice covers:

4.2.2.1. The invoice shall contain all Deliverables completed during the applicable billing cycle month.

4.2.2.2. A detailed breakdown of the Work completed

Exhibit A 20

4.2.2.3. A breakdown of invoiced costs using the rates in Exhibit C – Pricing and Rates.

4.3. Closeout Payments

4.3.1. Notwithstanding anything to the contrary in this Contract, all payments for the final month of this Contract shall be paid to Contractor no sooner than 10 days after the State has determined that Contractor has completed all of the requirements of the Closeout Period.

SECTION 5.0 Start-Up and Closeout Periods

5.1. This Contract shall have a Start-Up Period and a Closeout Period.

5.2. Start-Up Period

5.2.1. Contractor shall not engage in any Work under the Contract, other than the Work described in this section, prior to the Operational Start Date. The State shall not be liable to Contractor for, and Contractor shall not receive any payment for any period prior to the Operational

Start Date under this Contract.

5.2.1.1. The Operational Start Date shall not occur until Contractor has completed all requirements of the Start-Up Period, including, but not limited to, the completion of the operational readiness review contained in the Start-Up Plan, unless the State provides written approval otherwise.

5.3. Closeout Period

5.3.1. During the Closeout Period, Contractor shall complete all of the following:

5.3.1.1. Provide to the State, or any other contractor at the State's direction, all reports, data, Deliverables and other information reasonably necessary for a transition as determined by the State or included in the most recent Closeout Plan or Closeout Plan Update that has been approved by the State.

5.3.1.2. Ensure that all responsibilities under the Contract have been transferred to the State, or to another contractor at the State's direction, without significant interruption.

5.3.1.3. Notify any subcontractors of the termination of the Contract, as directed by the State.

5.3.2. The Closeout Period may extend past the termination of the Contract. The State will perform a closeout review to ensure that Contractor has completed all requirements of the Closeout

Period. If Contractor has not completed all of the requirements of the Closeout Period by the date of the termination of the Contract, then any incomplete requirements shall survive termination of the Contract.

5.4. Start-Up and Closeout Planning

5.4.1. Start-Up Plan

Exhibit A 21

5.4.1.1. During the Start-Up Period, Contractor shall create a Start-Up Plan that contains, at a minimum, all of the following:

5.4.1.1.1. A description of all steps, timelines and milestones necessary to fully transition the services described in the Contract from one contractor to another.

5.4.1.1.2. A description of all steps, timelines, milestones and Deliverables necessary for

Contractor to be fully able to perform all Work by the Operational Start Date.

5.4.1.1.3. A listing of all personnel involved in the start-up and what aspect of the start-up they are responsible for.

5.4.1.1.4. An operational readiness review for the State to determine if Contractor is ready to begin performance of all Work.

5.4.1.1.5. The risks associated with the start-up and a plan to mitigate those risks.

5.4.1.2. Contractor shall deliver the Start-Up Plan to the State for review and approval.

5.4.1.2.1. DELIVERABLE: Start-Up Plan

5.4.1.2.2. DUE: Within 5 Business Days after the Effective Date

5.4.2. Closeout Plan

5.4.2.1. Contractor shall create a Closeout Plan that describes all requirements, steps, timelines, milestones and Deliverables necessary to fully transition the services described in the

Contract from Contractor to the State or to another contractor selected by the State after the termination of the Contract. The Closeout Plan shall also designate an individual to act as a closeout coordinator, who will ensure that all requirements, steps, timelines, milestones and Deliverables contained in the Closeout Plan are completed and work with the State and any other contractor to minimize the impact of the transition on the State.

Contractor shall deliver the Closeout Plan to the State for review and approval.

5.4.2.1.1. DELIVERABLE: Closeout Plan

5.4.2.1.2. DUE: 30 days following the Effective Date

5.4.2.2. Contractor shall update the Closeout Plan, at least annually, to include any technical, procedural or other changes that impact any steps, timelines or milestones contained in the Closeout Plan, and deliver this Closeout Plan Update to the State for review and approval.

5.4.2.2.1. DELIVERABLE: Closeout Plan Update

5.4.2.2.2. DUE: Annually, by June 30th of each year