Exhibit R - Cost Proposal Summary

This is a cost proposal template for Solicitation Number HHS0017150 titled "Human Resources Payroll, and Time, Labor and Leave Services" for the State of Texas. The solicitation encompasses three primary phases: Phase I Transition (6 months), Phase II Operations (96 months across an initial 4-year term plus optional 4-year extension), and Phase III Turnover (allocated to the final year of the initial contract term). The services include Human Resources Services (recruitment and hiring, employee performance management, classification and compensation administration, benefits coordination, health and safety, and unemployment wage verification), Payroll Services, Time Labor and Leave Services, Financial Services with commitment accounting, and Shared Services including service center operations, organization management, employee and manager self-services, employee communications, and employee data and records management. The contract structure provides for monthly service delivery with all-inclusive unit pricing required for each functional area and service component. Respondents must submit cost proposals in the original Microsoft Excel format (.xlsx) only, with completion of all yellow-highlighted cells required; failure to submit mandatory pricing or submission of alternative formats may result in proposal disqualification.

Pricing evaluation will be based on total cost comparison, with the lowest-cost proposal receiving the highest rating and higher-cost proposals rated proportionally using a specified formula. The cost proposal template includes fixed administrative fee structures for hourly-based services with specific hourly rates by position classification across Human Resources Services, Payroll Services, and Shared Services functional areas, as well as variable pricing options for deliverables and services measured on alternative units such as per-transaction or per-call metrics. All-inclusive unit prices must cover labor, materials, tools, supplies, equipment, personnel, travel expenses, and incidental costs necessary to perform the services according to solicitation specifications. The System Agency makes no guarantee regarding volume, usage, or total compensation to be paid under any resulting contract, and actual compensation will be based on historical utilization data provided for evaluation purposes only. Respondents may propose different hourly rates than Texas Department of Information Resources Not to Exceed rates if they state the rates they pay for particular positions, and any pricing exceptions must be documented in a separate exceptions document.