Final - Fed Worker Loan Prog - IT and Customer Support Svc.pdf

Federal Worker Loan Program – IT & Customer Support

Services

Solicitation #: LABOR-FY2027-019

RFP Document

RFP for Maryland Department of Labor Page 1 of 58

STATE OF MARYLAND

DEPARTMENT OF LABOR

(MD LABOR)

REQUEST FOR PROPOSALS (RFP)

FEDERAL WORKER LOAN PROGRAMS – IT AND

CUSTOMER SUPPORT SERVICES

LABOR-FY2027-019

ISSUE DATE: OCTOBER 23, 2026

A Prospective Offeror that has received this document from a source other than eMarylandMarketplace

Advantage (eMMA) https://procurement.maryland.gov should register on eMMA https://emma.maryland.gov/

NOTICE TO OFFERORS

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO RESPOND TO THIS

SOLICITATION.

https://procurement.maryland.gov/ https://emma.maryland.gov/

RFP for Maryland Department of Labor Page 2 of 58

STATE OF MARYLAND

DEPARTMENT OF LABOR (MD LABOR)

KEY INFORMATION SUMMARY SHEET

Request for Proposals Services, IT – Federal Worker Loan Program – IT and Customer Support

Services

Solicitation Number: LABOR-FY2027-019

RFP Issue Date: October 23, 2026

RFP Issuing Office: Maryland Department of Labor (MD Labor)

Procurement Officer: Raelene Glasgow

100 S. Charles Street, 5th Fl, Baltimore, MD 21201

Email:

Phone Number:

Raelene.glasgow3@maryland.gov

410-767-7050

Proposals are to be sent to:

Submit on emma.maryland.gov under Solicitation Number

LABOR-FY2027-019

To submit a proposal, offerors must first register on emma.maryland.gov.

We recommend registering in advance to become acquainted with the site.

No Bid/Proposal Notice

Feedback Form

*If you are not submitting a proposal for this solicitation, submit

Attachment 1 with your reasons why.

Pre-Proposal

Conference:

There will be no Pre-Proposal Conference. The notes from the previous conference are posted in eMMA.

Questions Due Date and

Time:

11/04/2026 at 2:00 p.m. Local Time

Proposal Due (Closing)

Date and Time:

11/17/2026 at 2:00 p.m. Local Time

Offerors are reminded that a completed Feedback Form is requested if a no-bid/proposal decision is made (see Attachment 1 - No Bid

Notice/Vendor Feedback Form).

RFP for Maryland Department of Labor Page 3 of 58

MBE Subcontracting

Goal:

An overall Minority Business Enterprise (MBE) subcontract participation goal of 17.4% percent of the total contract dollar amount, including all renewal option terms, if any, has been established for this procurement.

Refer to Exhibit 1 for information on how goal setting was determined.

Also, refer to Appendix 4 for information about the MBE or DBE program and goals.

VSBE Subcontracting

Goal:

This solicitation includes a VSBE participation Goal of 10.6%

Refer to Exhibit 1 for information on how goal setting was determined.

Also, refer to Appendix 5 for information about the VSBE program and goals.

Procurement Method: A Contract will be awarded in accordance with the Competitive Sealed

Proposals method under COMAR 21.05.03.

Multiple or Alternate

Bids:

Multiple or alternate Proposals will not be accepted.

Contract Type: Firm fixed price

Contract Duration: Three (3) year base period with two (2) one-year option periods.

Primary Place of

Performance:

Remote

SBR Designation: No

Federal Funding: No

RFP for Maryland Department of Labor Page 4 of 58

TABLE OF CONTENTS – RFP

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.2 Background and Purpose

2.3 Contractor Responsibilities and Tasks

2.4 Experience and Personnel

2.5 Substitution of Personnel

2.6 Supplemental Category of Work Requirements and Responsibilities

3 Standard Terms and Conditions

3.1 Contract Initiation Requirements

3.2 End of Contract Transition

3.3 Invoicing

3.4 Liquidated Damages

3.5 Problem Escalation Procedure

3.6 Work Orders

3.7 Payments by Electronic Funds Transfer

3.8 Prompt Payment Policy

3.9 Federal Funding Acknowledgement

3.10 Conflict of Interest Affidavit and Disclosure

3.11 Non-Disclosure Agreement

3.12 Maryland Healthy Working Families Act Requirements

3.13 The State of Maryland’s Commitment to Purchasing Environmentally Preferred Products and

Services (EPPs)

3.14 Insurance Requirements

3.15 Non-Compete Clause Prohibition

4 Proposal Submission Information and Instructions

4.1 eMaryland Marketplace Advantage (eMMA)

4.2 Electronic Means

4.3 Pre-Proposal Conference

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4.4 Questions

4.5 Proposal Due (Closing) Date and Time

4.6 Economy of Preparation

4.7 Public Information Act Notice

4.8 Oral Presentation

4.9 Duration of Proposals

4.10 Revisions to the RFP

4.11 Cancellations

4.12 Incurred Expenses

4.13 Protest/Disputes

4.14 Offeror Responsibilities

4.15 Acceptance of Terms and Conditions

4.16 Compliance with Laws/Arrearages

4.17 Verification of Registration and Tax Payment

4.18 False Statements

5 Proposal Format

5.1 Two Part Submission

5.2 Proposal Delivery and Packaging

5.3 Volume I - Technical Proposal

5.4 Volume II – Financial Proposal

6 Evaluation and Selection Process

6.1 Evaluation Committee

6.2 Technical Proposal Evaluation Criteria

6.3 Financial Proposal Evaluation Criteria

6.4 Reciprocal Preference

6.5 Selection Procedures

6.6 Documents Required upon Notice of Recommendation for Contract Award RFP Attachments

(Table B)

7 RFP Appendices and Exhibits

7.1 Appendices (Table C)

7.2 Exhibits (Table D)

RFP for Maryland Department of Labor Page 6 of 58

RFP for Maryland Department of Labor Page 7 of 58

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

The Offeror or an entity on the Offeror’s team shall have at least seven (7) years’ experience providing management software solutions and support services to large organizations (those with more than 500 employees, at least five (5) years of which must have been services specifically to public sector organizations.)

• Included with the experience of at least seven (7) years, the Offeror or an entity on the Offeror’s team must also have at least three (3) years’ experience specifically in producing SaaS solutions that support the submission and review of a large number of loan applications within a short period of time.

• Required Documentation: As proof of meeting these requirements, the Offeror shall provide with its Technical Proposal at least three (3) references from the past five (5) years able to attest to the

Offeror’s experience or the experience of an entity of the Offeror’s team in providing relevant services.

The following experience is expected and will be evaluated as part of the Technical Proposal (see the

Offeror experience, capability and references evaluation factor from Section 6.2):

A. Demonstrated knowledge of management software solutions and customer support services to large institutions with more than 500 employees.

B. Prior senior level experience implementing SaaS solutions that allow for a large number or applications to be processed.

C. Demonstrated knowledge of and experience with automations and AI-enabled features of software solutions.

D. Breadth of knowledge in management software that can accept and process loans applications.

E. Breadth of knowledge in software platforms that can accept and process loan repayments.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

RFP for Maryland Department of Labor Page 8 of 58

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

This Request for Proposals (RFP) is issued to procure the goods or services, as specified in this

Section 2, from a contract between the selected offeror(s) and the State of Maryland (“State”). This solicitation is being procured to build and maintain an individual management software solution to provide financial assistance to eligible current and former federal employees under the Protect Our

Federal Workers Act of 2025 (the Act).

It is the State’s intention to obtain goods and services, as specified in this RFP, from a contract between the selected Offeror and the State.

This is a single award. See RFP Section 6.5 Selection Procedures for more Contract award information.

The purpose of this solicitation is to procure individual management software to provide financial assistance to eligible federal employees that is mandated by the Protect Our Federal Workers Act of

2025.

The State does not wish to procure a software application still under development. The software utilized in the solution shall be operational (i.e., not under development) and available by the due date of the Proposal.

2.2 Background and Purpose

The Federal Shutdown Paycheck Protection Act of 2019 created the Government Shutdown

Employee Assistance Fund. The Act amended the name of the fund to the Federal Government

Employee Assistance Fund (the Fund) and expanded the Fund’s purpose. The Fund is currently funded by the State’s Catastrophic Event Account. The Maryland Department of Labor administers the Fund.

The Act authorizes financial assistance programs for two distinct groups of Maryland residents who are either current or recent employees of a unit of the federal government. These include both civilian and non-civilian employees. The two groups are:

A. Federal employees who have been terminated in the six months immediately preceding the individual’s application due to mass firing events beyond their control (served under the Federal

Worker Emergency Loan Program).

B. Federal employees who are designated as “excepted” during a federal shutdown, meaning they must work during the shutdown period but do not receive a paycheck during that time (served under the Federal Shutdown Loan Program).

The Federal Worker Emergency Loan Program has been running since its launch in June 2025 and has provided $86,000 in loans. In October 2025, MD Labor launched the Federal Shutdown Loan

Program due to the federal government shutdown that ultimately lasted 43 days. The program closed when the shutdown ended on November 12, 2025, and provided nearly 3,500 no-interest $700 loans, totaling $2.43 million in loans.

The Offeror should provide a project plan and supporting materials that cover one federal shutdown per year lasting at least four weeks under the Federal Shutdown Loan Program. The platform would

RFP for Maryland Department of Labor Page 9 of 58 process as many as 5,000 applications from “excepted” workers, those who must report to work during a federal shutdown but do not receive a paycheck during the closure. The Offeror should also consider a scenario in which there is a second launch of the shutdown loan program of similar length and application volume in the same year because there are additional full or partial federal shutdowns.

The Federal Worker Emergency Loan Program administration is continuous. The Offeror should plan to provide those services throughout the contract period, at an application volume of approximately

300 applications per year.

2.2.1 Project Goals

The goal of this Procurement is to partner with MD Labor to process and verify all submitted applications with a high degree of customer satisfaction and accuracy as quickly as possible while also preventing fraud. The application portal and associated eligibility and fraud prevention components shall be ready for use by MD Labor and the public within four weeks of contract execution. Other deliverables shall be available upon the schedule requested by MD Labor.

A. Produce a fully tested SaaS solution that supports the submission and review of a large number of applications within a short period of time.

B. Provide eligibility and identity verification, utilizing AI to the extent possible to speed processing while maintaining privacy protections, data security, and accuracy.

C. Provide robust fraud prevention measures.

D. Ensure timely, accurate, and secure transfer of applicant eligibility and payment data files.

E. Provide an electronic repayment platform that meets State requirements or integrates services with a State-sponsored payment portal.

F. Provide customer support to applicants with an adequate staff support team available 9am-5pm five days a week Eastern Standard Time to answer questions and concerns via email and telephone in a timely manner.

G. Provide project management to ensure that project remains on schedule and is successfully implemented; and

H. Provide reports, dashboards, and other visualization features that allow MD Labor to track program activity, applicant characteristics, and outcomes in real-time.

2.2.2 State Staff and Roles

In addition to the Procurement Officer and Contract Monitor, the State project team consists of the following: State Project Director, Operations Manager, Human Application Reviewers, as well as administrative staff to process and/or reconcile eligibility, payment, and repayment data files

A. State Project Director will:

1. Provide applicant eligibility criteria, payment and repayment guidelines and other parameters for administration of loan programs.

2. Provide sample documentation for eligibility verification processes.

RFP for Maryland Department of Labor Page 10 of 58

3. Provide sample content to include in application review system, as well as existing manuals, SOPs, reporting templates, file specifications, and file transfer protocols, among other elements from current administration of program to serve as models for the vendor.

4. Provide required project timeline requirements, reporting requirements, and customer support response time requirements.

5. Serve as coordinator for state agency partners, including the Office of the State

Treasurer and Office of the Comptroller.

2.3 Contractor Responsibilities and Tasks

The Offeror will provide an individual management software solution to allow eligible applicants a secure, easy-to-use platform to receive a no-interest loan from the State of Maryland and to make repayments of the loan. Depending on the length of the programs, individuals may be eligible to receive multiple loans. The loan amount would be the same for all eligible applicants.

The Offeror will provide the services, activities, and deliverables specified below.

2.3.1 Application Portal and Eligibility Determination

AI-Enabled Features

To prevent administrative churn, minimize staff time spent on repetitive manual tasks and focus human reviewers on the most complex issues, the Offeror will provide assistive AI-enabled product features supporting eligibility determination. Such features may combine discriminative, generative, and agentic

AI technologies. Examples of such assistive tools include:

A. Document processing and verification, including the interpretation of document structure (beyond basic parsing), confidence scoring, and routing low-confidence results to human reviewers.

B. Generation of application summaries (abstracts) from a range of sources, including structured administrative data, sets of documents, notes, chats, and activity logs.

C. Mapping of generated summaries to provisions of the law (policies and procedures).

D. Generation of recommendations supporting eligibility determination by human decision makers.

Such recommendations may flag discrepancies, prioritize next actions, and outline preliminary determinations.

E. Context/scenario-aware assistants/copilots that use chat and other modes to help applicants self-diagnose problems and take targeted actions without having to contact a human agent.

F. Training simulators to help new program staff ramp up by learning from patterns in decision making by more experienced staff.

2.3.2 AI Use Policies

The Offeror shall equip the State to prototype, test, monitor and govern the use of AI-powered features in accordance with the State’s Responsible AI Use, Data Classification and Privacy policies, as updated from time to time. Such governance will include the configuration of automated guardrails and provisions for expert review and auditing.

RFP for Maryland Department of Labor Page 11 of 58

2.3.3 Applicant Portal

Using a format and manner specified by MD Labor, the Offeror will create a user-friendly applicant portal that will include the following functionality for program applicants:

A. Enter personal information;

B. Enter employment information;

C. Upload identity documents;

D. Upload eligibility documents, including those that verify residency, federal employment, and employment status;

E. Commit to a self-attested certification of eligibility;

F. Sign and submit loan agreement embedded in application portal; and, G. Provide a process to update or withdraw applications and to submit an appeal if denied.

The Offeror shall provide a user-friendly application review system for MD Labor to review application contents and make eligibility determinations.

2.3.4 Identity Verification

The Offeror shall provide applicants with a verification service to ensure that identity documents provided are valid and current. This may include requiring the applicant to provide a digital photo of their eligible identity document (e.g., driver’s license or passport and upload it to the Offeror together with a real-time

“selfie” photo).

The Offeror shall also provide services or integrate with MD Labor services to verify identity, using a service such as TrueID, ID.me, Login.gov, the Maryland Mobile ID program, or LexisNexis.

2.3.5 Document Upload Features

The Offeror’s system shall provide the ability for all applicants to upload eligibility documents (in common formats, such as PDF, GIF, JPG, PNG, and TIF) confirming federal employment, employment status, and other eligibility criteria into the application portal, including a copy of their W-2 tax document. This will provide the Offeror the ability to perform an anti-fraud check against other data collected in the application and to otherwise assist MD Labor in confirming applicant eligibility.

2.3.6 Data Parsing, Comparison and Format

The Offeror’s system shall parse out the following data points from all successfully uploaded W-2 documents: name, address, SSN, and Employer EIN. These data points will automatically appear on the application should the W-2 successfully upload into the Offeror’s system. Each applicant will have the opportunity to confirm their W-2 documentation was successfully parsed by the Offeror’s system by checking a confirmation box.

The Offeror shall run checks on the data parsed from the W-2 document against other sections of the application that require an SSN to prevent bad actors from submitting fraudulent W-2 information and to check to see if the document uploaded is 1) a W-2 tax document and 2) that the W-2 has all relative data points filled out.

http://id.me/ http://login.gov/

RFP for Maryland Department of Labor Page 12 of 58

To the extent possible, the Offeror shall follow a similar process for eligibility documents verifying applicants’ employment status (that is, termination or “excepted” status) and residency.

The Offeror shall provide parsed data to MD Labor in format specified by MD Labor.

2.3.7 Deduplication

The Offeror shall perform automated deduplication services using individual data provided in the

SSN/ITIN field, mailing address field, as well as bank account number fields within the system’s form.

A. Should two submissions be identified as potential duplicates contain the same datapoint noted above, the first submission received will be marked “has dupe” and any subsequent submission(s) received will be marked “is dupe”. There will also be a denotation as to what the “dupe” is, e.g., “has dupe SSN”, “is dupe address”, “has dupe bank info” etc.

B. Potentially duplicated records and/or data fields should be easily linked/navigable.

C. Individual mailing addresses will be validated against USPS API to ensure individual addresses are accurate and properly formatted.

2.3.8 Automated Data Comparison

The system will employ automations, at a minimum, to:

A. Automatically compare extracted document data against application data.

B. Generate pass/fail flags for documents, generate confidence scores for data extraction accuracy, provide a reason code for mismatches or other detected issues.

C. Move applications through the review process to the extent possible.

D. Send applicant correspondence and forms at the appropriate time; and

E. Route applications when needed for action by MD Labor human reviewers.

2.3.9 Human Review

The system will allow state-employed human reviewers to view applications where needed to finalize eligibility determinations and will support an appeals process for denied applications.

2.3.10 Payment Tracking

The system will track loan disbursements, Debtor’s repayments, and accounts sent to Collections.

2.3.11 Translation Services

RFP for Maryland Department of Labor Page 13 of 58

The Offeror shall provide translation services to MD Labor to ensure that the applicant portal and associated landing pages, FAQs, and primary applicant communications are provided in Spanish and other languages as required by Maryland law.

2.3.12 Implementation Services

The Offeror’s implementation team shall be used for program buildout and customization services within the Offeror’s platform. The Offeror’s implementation team will perform form-building services for the initial application form based on feedback from Maryland stakeholders. The Offeror will assist by providing suggested template language for standard application fields and associated emails, as well as training and support deliverables. Services shall include:

A. Form-building services will include explanation buttons for certain application fields as determined by MD Labor and links to FAQs.

B. All forms, content, and the web experience must meet the Web Content Accessibility Guidelines

(WCAG) 2.1 AA standards and the State of Maryland’s Digital Accessibility Policy1.

C. The Offeror’s implementation will build all forms and correspondence with applicants in English, Spanish, and other languages required by Maryland law.

D. Answers/responses stored and transmitted by the system should adhere to MD Labor Data specifications, e.g. ASCII and specific type and/or length constraints.

E. Addresses will be validated by the Offeror using USPS address validation.

F. The Offeror will maintain the current front-facing landing page approved by MD Labor that matches the look and feel of the State Brand and will use a .gov domain name.

G. The Offeror will design and launch program and technical FAQ pages for applicants that use a

.gov domain name.

H. Content of the FAQ pages will be co-authored by the Offeror and MD Labor. Technical answer content addressing common Offeror questions will be provided by the Offeror.

I. Non-technical programmatic content will be provided by MD Labor.

J. The Offeror will provide administrator and reviewer training, user guides and other knowledge-based materials, and help desk and technical support procedures.

2.3.13 Applicant and Payment Data

The Offeror shall generate and securely transfer via State of Maryland Secure File Transfer Protocol

(SFTP) servers, in file formats specified by the State of Maryland, the data files that may include but are not limited to:

1 https://doit.maryland.gov/policies/Accessibility/Documents/Digital-Accessibility-Policy-Final.pdf https://doit.maryland.gov/policies/Accessibility/Documents/Digital-Accessibility-Policy-Final.pdf

RFP for Maryland Department of Labor Page 14 of 58

A. Data required to support identity verification through MD Labor services such as LexisNexis, including IP address and browser strings. The Offeror will provide such extracts daily, in accordance with file specifications and run sheets provided by MD Labor.

B. Data required to process payment for approved applicants. The Offeror will provide such extracts in accordance with file specifications, run sheets, and schedule provided by MD Labor.

C. Data required to monitor and reconcile loan repayments. The Offeror will provide such extracts in accordance with file specifications and schedule provided by MD Labor.

2.3.14 File Transfer Requirements

MD Labor shall provide Offeror data points required in the file, file format, and logistics to allow the

Offeror to upload and retrieve files from MD Labor’s SFTP. Known requirements for the file transfer include:

A. Incremental data inclusion. In cases where the file is delivered multiple times, it shall include only the applicant information not transmitted in the previously transferred files.

B. Transmission report. The Offeror shall generate a file transmission report containing summary statistics of the transmittal.

C. Retransmission capability. The Offeror shall possess the capability to retransmit the file upon request.

D. Compliance. All file transfers and interactions with MD Labor shall adhere to relevant security and compliance standards as identified in the IT Supplemental and Contract.

E. Testing and validation. Prior to production use, the file exchange system shall undergo thorough testing and validation to ensure the accurate generation and secure transmission of files to MD

Labor.

F. Maintenance and support. Ongoing maintenance and support for the MD Labor file interface shall be provided.

G. Manual export capability. The Offeror will also make a manual “export” to CSV option available to export all data available via the platform.

2.3.15 Data Security Measures for Tax Data

The Federal Worker Loan Programs use tax data from the Comptroller of Maryland to verify federal employment. All individuals who have access to this data are bound by a Data and Information

Technology Sharing Memorandum of Understanding (MOU) between MD Labor and the Comptroller of

Maryland. The Offeror must agree to all data security, privacy, and confidentiality provisions of the

MOU, which include Offeror staff who have access to the state data, regardless of purpose of the access to or visibility of those data. These requirements include that staff complete a criminal background check.

The Offeror shall obtain at its own expense a Criminal Justice Information System State and federal criminal background check that complies with IRS background investigation requirements in Publication

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1075, including fingerprinting, for all personnel with access to the State data. This check must occur no more than two months before the staff begin work on the Federal Worker Loan Programs project or any other similar project that makes use of State data. The check may be performed by a public or private entity.

The Contractor shall provide the Contract Monitor with certification of completion of the required criminal background check described in this RFP for each required Contractor Personnel prior to assignment, and that the Contractor Personnel have successfully passed this check.

Persons with a criminal record may not perform services under the Contract unless prior written approval is obtained from the Contract Monitor. The Contract Monitor reserves the right to reject any individual based upon the results of the background check. Decisions of the Contract Monitor as to acceptability of a candidate are final.

2.3.16 Language Requirements

The Offeror shall provide technical support to the State and platform-level customer support to the program individuals in English and Spanish. To ensure proper support of multiple languages and the volume of constituents, the Offeror may partner with a third-party support Offeror who can provide multilingual customer support through both telephone and email.

2.3.17 Customer Support Service Elements

The State, the Offeror, and any third-party entity shall work closely to ensure high-quality customer service. Any identified customer service issues will be immediately addressed between the Parties. MD

Labor will specify required target and guaranteed response times. Services will include:

A. Onboarding and training of an agreed-up number of full-time support associates to provide applicant and awardee support in English and Spanish via email and phone

B. Dedicated applicant supports during business hours five days a week from 9 am-5 pm EST and other such hours as the parties shall agree upon.

C. Dedicated applicant supports will include custom email addresses and two telephone numbers

(one with a local area code and one toll-free) will be provided.

D. Dedicated applicant support will be provided from the application portal launch until the program ends.

E. The Offeror will maintain a support ticketing platform and will provide MD Labor access to this system for the duration of the project. MD Labor will use this system to receive and respond to escalated customer support cases as well as to view dashboards and reports on customer support queries and case disposition.

F. All programmatic questions beyond the Offeror’s customer support team’s knowledge (e.g., around special eligibility or tax questions) will be escalated to MD Labor staff for a response.

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2.3.18 Loan Repayment Process

The Offeror shall provide a secure, auditable platform that enables program participants (“Borrowers”) to repay their loans electronically. This platform must provide an option for borrowers to repay the loan in installments. While Borrowers may repay by check or money order sent to MD Labor, MD Labor prefers electronic repayment and expects the majority of repayments to occur electronically.

All loan repayments and related receipts (the “Proceeds”) are State funds. The Offeror’s repayment solution must safeguard State funds in accordance with applicable Maryland State laws and the requirements of the State Treasurer’s Office (STO), ensure direct settlement to the MD Labor bank account, and provide full servicing and reconciliation support as described below.

State Treasurer’s Office (STO) Merchant Payment Processing and State Funds Safeguards.

References to the State Treasurer’s Office (STO) in this Section 2.3.19 apply only where the requirement involves (i) payment card processing through the awarded vendor of the State Treasurer’s Office (STO)

Merchant Service Contract, or (ii) deposit and State funds safeguarding requirements under STO.

MD Labor Bank Account. For purposes of this Section 2.3.19, “MD Labor bank account” means a bank account maintained at a State-approved depository institution, established in the name of the State of

Maryland (MD Labor) using the State’s tax identification number (or other State-approved tax identifier), and subject to the State Treasurer’s Office (STO) requirements. The MD Labor bank account shall be under State control. The MD Labor bank account does not include any account established, owned, controlled, or administered by the Offeror or any Offeror subcontractor, including any “for benefit of”

(FBO), trust, custodial, or escrow account, unless expressly approved in writing by MD Labor.

2.3.19 Core Requirements for State Collections

A. Direct Settlement to MD Labor Bank Account. For all electronic repayment methods, Proceeds must settle directly into the MD Labor bank account at a State-approved depository institution. Proceeds may not be deposited into, routed through, held in, or otherwise settle to any

Offeror-controlled account or any Offeror subcontractor-controlled account, except as expressly approved in writing by MD Labor.

B. No Commingling. Proceeds shall not be commingled with any funds other than Proceeds collected on behalf of MD Labor under this Contract. Interim holding of Proceeds is not permitted unless required for technical settlement purposes and expressly approved in writing by

MD Labor. Any approved interim holding structure must be for the benefit of the State and include financial assurance safeguards acceptable to MD Labor and the State Treasurer’s Office

(STO).

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C. Processing Windows and Settlement Timing. The Offeror shall transmit or submit payment activity for processing in accordance with MD Labor approved cut-off times and processing windows, which may include same-day batch transmission. The Offeror may propose recommended cut-off times and processing windows as part of its implementation plan, subject to

MD Labor approval. Proceeds must settle to the MD Labor bank account no later than the next business day following payment authorization or acceptance, or within an alternative settlement schedule approved in writing by MD Labor as part of implementation.

D. No Netting of Fees from Proceeds. The Offeror shall not deduct, net, offset, withhold, or otherwise reduce Proceeds for any fees, charges, or costs of any kind, whether assessed by the

Offeror or any subcontractor, payment processor, or third party. In accordance with applicable

State laws, any fees associated with the repayment solution must be invoiced and paid separately from Proceeds, unless expressly approved in writing by MD Labor.

E. Limited Escrow Exception (if required). MD Labor’s preference is that Proceeds settle directly into the MD Labor bank account in accordance with Section 2.3.19(A). If MD Labor determines that an escrow structure is required to support repayment processing, exception management, returns, or reconciliation under this Contract, MD Labor may approve the establishment of an escrow account solely for the benefit of the State (an “Escrow Account”), separate from the MD Labor bank account. Any Escrow Account must (i) be maintained at a

State-approved depository institution, (ii) be structured for the benefit of the State and remain under State control, and not be owned or administered by the Offeror or any Offeror subcontractor, (iii) not commingle Proceeds with any other funds, (iv) include an escrow agreement and account controls acceptable to MD Labor and consistent with State Treasurer’s

Office (STO) requirements, and (v) require transfer of Proceeds to the MD Labor bank account on a schedule approved by MD Labor. Escrow Account Access. MD Labor will determine permitted account access and authority for any Escrow Account. MD Labor may allow the

Offeror to have limited authority on the Escrow Account solely as necessary to support payment processing and exception management, provided such authority is consistent with the Escrow

Agreement, State requirements, and the State Treasurer’s Office (STO) requirements. An approved Escrow Account constitutes an expressly approved exception to Sections 2.3.20(A) and

2.3.19(B).

2.3.20 Acceptable Payment Processing Models (Offeror Must Propose a Model)

The Offeror may propose one of the following payment processing models. Regardless of model, the

Offeror remains responsible for borrower servicing, exception management, and reconciliation deliverables under Section 2.3.21, and the Offeror must comply with the safeguards in Section 2.3.23

A. Model 1: State-Approved Payment Card Processing with Flexible Hosting (Preferred)

MD Labor may require that the borrower-facing repayment experience be provided through an

MD Labor-approved web interface, which may include an MD Labor webpage, an Offeror-hosted

RFP for Maryland Department of Labor Page 18 of 58 webpage, or another MD Labor-approved online access method. The Offeror may propose the preferred access method as part of its solution, subject to MD Labor’s approval. The Offeror may propose a single integrated borrower portal or a standalone repayment interface, provided the solution meets all requirements of this Section 2.3.19 and .20. Under this model, payment card transactions shall be accepted and processed using the solution provided by the awarded vendor of the State Treasurer’s Office (STO) Merchant Service Contract, which may include an embedded gateway, hosted payment page, redirect workflow, tokenization, and or API-based submission. The Offeror may use the standard integration options offered by the awarded vendor of the State Treasurer’s Office (STO) Merchant Service Contract, provided all requirements of this Section 2.3.19 and .20 are met. Regardless of hosting approach or technical method, all payment card transactions must be processed by the awarded vendor of the State Treasurer’s

Office (STO) Merchant Service Contract and Proceeds must be deposited directly into the MD

Labor bank account. Any ACH repayment method must be accepted and transmitted only through a State-approved pathway as determined by MD Labor and consistent with applicable State requirements, and Proceeds must be deposited directly into the MD Labor bank account.

B. Model 2: Offeror Managed Repayment Portal with State-Controlled Settlement (Permitted with Controls)

The Offeror may operate and manage the repayment portal and collect repayment instructions from Borrowers, with the following requirements:

1. ACH payments. The Offeror may collect ACH payment instructions from Borrowers;

however, all ACH transactions must be initiated and or transmitted only in a manner approved by MD Labor and consistent with applicable State requirements and must settle directly into the MD Labor bank account. Under no circumstances may the Offeror cause

ACH Proceeds to be deposited into, routed through, held in, or otherwise settle to any

Offeror-controlled account or any Offeror subcontractor-controlled account.

2. Payment card payments. The Offeror may collect payment card payment details from

Borrowers, but all payment card transactions must be processed through the awarded vendor of the State Treasurer’s Office (STO) Merchant Service Contract. The Offeror shall transmit the required transaction data to the awarded vendor of the State Treasurer’s

Office (STO) Merchant Service Contract in accordance with MD Labor approved cut-off times and processing windows, using secure methods approved by the awarded vendor of the State Treasurer’s Office (STO) Merchant Service Contract and consistent with any applicable State Treasurer’s Office (STO) requirements, so the awarded vendor of the

State Treasurer’s Office (STO) Merchant Service Contract can process the transactions and deposit the Proceeds directly into the MD Labor bank account. The Offeror may use the standard integration options offered by the awarded vendor of the State Treasurer’s

Office (STO) Merchant Service Contract, provided all requirements of this Section 2.3.19 and .20 are met.

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3. Cardholder data restrictions. The Offeror shall not store or retain payment card account numbers (PAN) or sensitive authentication data and shall ensure any transmission of such data is securely encrypted in accordance with PCI-DSS. The Offeror shall maintain compliance with the then-current version of PCI-DSS (and any successor standards) applicable to its role and services, as well as applicable State security requirements. The Offeror shall use industry-standard security controls, including tokenization and secure transmission methods, as required by the awarded vendor of the

State Treasurer’s Office (STO) Merchant Service Contract and any applicable State

Treasurer’s Office (STO) requirements. PCI Compliance Evidence. Upon request, the

Offeror shall provide MD Labor with evidence of PCI-DSS compliance appropriate to the

Offeror’s role in payment processing.

C. Alternative Model. The Offeror may propose additional electronic payment methods for

Borrowers. Any proposed method must comply with applicable Maryland State laws, must include safeguards acceptable to MD Labor to protect State funds, and must be approved in writing by MD Labor prior to implementation. Any approved method must align with the requirements and payment processing models set forth in this Section 2.3.19 and.20.

The Offeror may propose enhancements to improve borrower experience or reduce exceptions, subject to prior written approval by MD Labor.

MD Labor encourages additional electronic payment options and enhancements that improve borrower access and reduce delinquencies, provided all requirements of this Section 2.3.19-.21 are met.

2.3.21 Implementation Approach

The final hosting and technical integration approach, including cut-off times, processing windows, and any approved alternative settlement schedule, will be determined by MD Labor during implementation, provided that the Offeror’s solution continues to meet all requirements of this Section 2.3.19-.21.

2.3.22 Borrower Experience and Communications

Any payment portal must provide a convenient online payment option, that includes the option for installment payments by borrower as specified by MD Labor, must minimize risks of cash handling, and reduce the risk of delayed or lost payments sent by mail. The Offeror shall send repayment reminders and late notices in a form and on a schedule approved by MD Labor.

2.3.23 Servicing, Reconciliation, Exceptions, and Reporting (Offeror Owns This)

The Offeror shall be responsible for end-to-end servicing support and reconciliation of all repayments so that MD Labor is not required to perform transaction-level matching between repayments and borrowers.

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At minimum, the Offeror must:

A. Borrower-Level Reconciliation. Reconcile each repayment to the applicable Borrower and loan obligation, including unique identifiers sufficient for audit and dispute resolution.

B. Deposit and Settlement Tie-Out. Reconcile payment activity to settlement results and deposits reflected in the MD Labor bank account and or the awarded vendor of the State

Treasurer’s Office (STO) Merchant Service Contract settlement reporting (as applicable), including timing differences.

C. Exception Management. Manage and report exceptions including ACH returns, rejects, reversals, payment voids, and chargebacks. The Offeror must provide clear status reporting and resolution actions.

D. MD Labor Deliverables. Provide MD Labor a reconciliation report and “ready-to-post” activity file in the content, format, and schedule specified by MD Labor, including daily detail and a month-end summary. Reports and files may be provided via secure file transfer, API, or other secure method approved by MD Labor, in a format such as CSV, Excel, or other mutually agreed format. The Offeror may propose an equivalent secure delivery method, subject to MD

Labor approval. Reports must include, at a minimum: payment date and time, settlement date, payment method, gross amount, fees (if any and only if approved), deposit amount, borrower identifier, loan identifier, and exception codes. The Offeror may propose enhanced reporting frequency or additional reports, provided MD Labor’s required deliverables and schedules are met.

E. Delinquency Reporting. Provide delinquent account information on a schedule and in a format specified by MD Labor, including aging and action history.

F. Subcontractors. The Offeror may use subcontractors for platform and servicing functions with prior written approval by MD Labor. Subcontracting does not relieve the Offeror of responsibility for compliance with this Contract. No subcontractor may receive, hold, route, or settle Proceeds to any account other than the MD Labor bank account, unless expressly approved in writing by MD Labor.

2.3.24 Licensing and Compliance

If the Offeror’s proposed solution requires licensure or registration under Maryland law (including, if applicable, a State of Maryland Collection Agency License), the Offeror shall obtain and maintain all required approvals prior to collecting repayments and throughout the contract term.

2.3.25 Reporting

The Offeror shall support the State with multiple reports on application, individual support, and payment progress.

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A. The Offeror will provide the MD Labor team custom reports concerning data collected within the system, in file format specified by MD Labor that is currently available within the platform, as well as via the PowerBI platform and tools. Data available for reporting and analytics will include any semi-structured/unstructured notes and/or chat threads concerning a given application.

B. The Offeror will provide the MD team with all relevant data collected within the system to allow the MD team to process check payments outside of the system, in file format specified by MD

Labor. This will include payment reconciliation reports, which will include processed payment counts and amounts, and payment error counts and amounts.

C. The State of MD Team will receive dashboard access in the ticketing system for constituent inquiries.

D. Final Reporting - To include all necessary application data, payment status, and error status, for each application, in file format specified by MD Labor.

2.3.26 Project Management

The Offeror shall provide project management services to ensure successful execution of this initiative.

The project management team will work closely with MD Labor and the State of MD’s key stakeholders to clearly define the project’s scope, objectives, and success criteria. Activities will include:

A. Timeline and schedule. The project management team will create and maintain a detailed project timeline and schedule, outlining key project milestones, tasks, dependencies, deliverables, and deadlines to ensure the timely completion of this initiative.

B. Communication management. The project management team will develop a communication plan to ensure effective communication amongst the project team and with key project stakeholders. As part of the plan, a communication matrix will be developed to clearly define the information to communicate, the individual responsible for communicating, the cadence and format of communication, and the participants in, and recipients of, the communication. The communication plan will also establish reporting mechanisms and escalation procedures. Through use of this plan, the project management team will ensure appropriate and necessary information is made available to MD Labor and the State of MD’s key stakeholders in a timely manner, driving action items to completion.

C. Risk management: The project management team will identify, assess, and mitigate project risks throughout the duration of this project. This includes proactive risk identification, risk analysis, and risk/issue escalation procedures related to the Offeror’s development efforts. The project management team will engage in continuous and proactive problem-solving from both an application management and technology perspective.

D. Test management. The project management team will define a set of user acceptance tests

(UAT), both automated and manual, to assert all aspects of the system (data, security, code, and other functionality) operate as expected and continue to operate as desired despite any future changes.

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E. Change management. The project management team will manage all changes to the project scope, schedule, and budget in accordance with the project’s change control procedures. This encompasses assessing change requests, obtaining approvals, and applying approved changes.

F. Documentation and training. The project management team will maintain accurate and up-to-date project documentation, including project plans, status reports, meeting minutes, and other relevant documentation. Additionally, the project management team will develop a training plan, create training documentation, and deliver training to human application reviewers and other key personnel. Training will be tailored to the specific needs of each stakeholder group.

G. Post-Launch program monitoring: The project management team will engage in post-launch program monitoring to ensure that the software meets the needs and expectations of all stakeholders. This includes performance monitoring and optimization, user engagement, and issue resolution.

H. Data analytics. To enable MD Labor to make informed, data-driven decisions, the project management team will work closely with the data team to build and deliver a dashboard to MD

Labor based on the data available throughout the project’s lifecycle. The project management and data teams will also be available to collaborate with MD Labor in building custom reports when relative data is present and available to do so.

I. User acceptance testing. Offeror’s project management team will build, run, and manage the internal testing of the core software together with other deliverables defined in this SOW. The objective of User Acceptance Testing (UAT) is to ensure the delivered integrations meet the specified requirements as outlined in this SOW. Below is a breakdown of how the project management team will operate UAT.

J. Test cases and scenarios. The UAT team will develop and review test cases and scenarios that cover relevant aspects of the system, including but not limited to functionality and usability.

K. Test execution: During the UAT phase, the project management team will execute the approved test cases and scenarios, record any issues or defects discovered, and report their findings to MD

Labor.

L. Issue tracking and resolution: Any issues or defects identified during UAT will be tracked, documented, and categorized based on their severity. The project team will work to resolve these issues, and retesting will be conducted as necessary.

M. Sign-off and acceptance criteria. The UAT phase will be considered successful when the following conditions are met:

a. All test cases and scenarios have been executed.

b. Identified issues have been resolved and retested.

c. UAT phase has been completed to MD Labor’s reasonable satisfaction.

d. Cybersecurity and Incident Response materials have been reviewed and approved

N. Project closeout and transition: At the conclusion of the project, the project management team will oversee project closeout activities and facilitate the delivery of project closeout documentation.

2.3.27 Project Close-Out

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As part of the project close-out process, the Offeror shall deliver the following documents to the State of

MD team:

A. Lessons learned report. A document that highlights the key lessons learned throughout the project, including successes, challenges, and recommendations for future projects. This will also require a joint meeting at the conclusion of the project to gain insight and alignment from both parties to be included in the report.

B. Project closure documentation. A collection of all project-related documents, including contracts, agreements, amendments, and any other relevant paperwork.

C. Stakeholder sign-off: Formal sign-off or acceptance from project stakeholders indicating their…