Final_RFP_045_2500000007_1_SO_FORM.PDF

Document ID: RFP 045 2500000007 Page: 1

Commonwealth of Kentucky

SOLICITATION

Modification: No Version #:

TITLE: School Facilities Fund Audit - HB6 2024

Date Issued:

07/26/2024 Record Date:

07/01/2024

Solicitation Closes Date:

08/19/2024 Time:

16:30

Solicitation No:

RFP 045 2500000007

Online Bidding Prohibited: Yes For Information Call:

Toni Simmons 502-564-5841

Bid Receiving Location:

Auditor of Public Accounts Bid Clerk 209 St. Clair Street

Frankfort KY 40601

Vendor Customer Number:

Vendor Name:

Phone Number:

Fax Number:

Email Address:

Ordering

Address:

City, State, Zip:

Contact Name:

Contact Email:

Contact Phone Number:

Payment

Address:

City, State, Zip:

Contact Name:

Contact Email:

Contact Phone Number:

Ownership Type

__ Sole Proprietorship __ Partnership __ Corporation __ Other_________________________

SIGNATURE OF AUTHORIZED AGENT IS REQUIRED UNLESS RESPONSE

IS SUBMITTED ELECTRONICALLY. FAILURE TO SIGN SHALL RENDER

THE BID INVALID.

Signature X_________________________________________ FEIN#____________________ Date____________

All offers subject to all terms and conditions contained in this solicitation.

Document ID: RFP 045 2500000007 Page: 2

Line Items

Commodity Group: DEFAULT

Line CL Description Quantity UOM Unit Cost Line Total or Contract Amnt

1 SCHOOL FACILITIES FUND AUDIT- HB6

Comm Code Comm Description Manufacturer Model # Manuf Part #

94620PS PSC-Auditing

Extended Description PSC AUDITING FOR KY SCHOOL FACILITIES FUNDS, UNDER THE AUSPICES OF THE AUDITOR OF PUBLIC ACCOUNTS (APA), FROM AN INDEPENDENT, CERTIFIED PUBLIC ACCOUNTING FIRM, TO FULFILL THE THE REQUIREMENTS OF HB6 2024, Shipping Information Auditor of Public Accounts

209 St. Clair Street

Frankfort KY 40601

Billing Information Auditor of Public Accounts

209 St. Clair Street

Frankfort KY 40601

Document ID: RFP 045 2500000007 Page: 3

Submission Checklist

The following items will be required to be submitted with bid:

Item FIRM s proposal s adherence to the technical requirements of this RFP, including in particular the information and documents solicited and the clarity and cohesion of the RFP as a written, consolidated package, and the inclusion of 11 specific pieces of information as outlined in the supporting documentation.

FIRM s prior successful experience in managing, executing, and delivering on contracts for audits of state agencies, local governments and officials, special purpose government entities, educational systems and institutions, and other public and quasi-public entities as well as prior successful experience the FIRM has in any jurisdiction in managing, executing, and delivering a successful audit of the cost of and available funding for the building of school facilities.

This criteria refers to an evaluation of the individuals the FIRM proposes to utilize in managing and performing the audit, both as to education and professional training as well as prior successful experience in performing the type of work they would be performing in this audit engagement.

FIRM s ability to have sufficient technical expertise, staffing levels, data analytics capabilities, logistics, and redundancy in all areas to execute the audit engagement at issue here with high quality deliverables, including the final report, by the deadlines set out in this RFP.

An evaluation of the FIRM s reputation and business goodwill within the auditing profession and its client base as evidenced by past successful engagements, customer responsiveness, and other relevant performance measures and the feedback provided by the community and its clients in response to requests by the APA for reference checks on the FIRM.

Attachment A: Cost Proposal Form Up to 100 points may be awarded following an oral presentation if oral presentations are requested in accordance with 9.80 and 9.85 of this RFP.

Revised April 2024

PROPOSAL SUBMISSION CHECKLIST

The vendor MUST include the following with the proposal submission.

If the items highlighted below are not submitted with the proposal submission, the Commonwealth MUST deem the proposal non-responsive and

SHALL NOT consider for award.

All other items MUST be submitted prior to award.

_____ SIGNED AND COMPLETED SOLICITATION –Section(s) 8.00 and 8.10 of this RFP

(not required if submitting electronically)

_____ *PROPOSED SOLUTION (TECHNICAL) UNDER SEALED COVER AND BY

CLOSING DATE --

Section(s) 8.00 and 8.10 of this RFP

_____ *PROPOSED SOLUTION (COST) UNDER SEALED COVER AND BY CLOSING

DATE --

Section(s) 8.00 and 8.10 of this RFP

_____ TRANSMITTAL LETTER – Section 8.20 of this RFP

_____ PROOF OF REGISTRATION WITH SECRETARY OF STATE BY A FOREIGN

ENTITY -- Section 9.00 of the Personal Service Contract Terms and Conditions of this

RFP

_____ REQUIRED AFFIDAVIT(S) – Section 8.20 of this RFP

*The Commonwealth defines SEALED as “a closure that must be broken to be opened and that thus reveals tampering” (Merriam-Webster Dictionary, https://www.merriam-webster.com/ dictionary/seal

REQUEST FOR PROPOSAL

FOR

PERSONAL SERVICE CONTRACT

Auditor of Public Accounts Auditing Assistance with Kentucky School Facility Assistance Fund Project Estimates and the Availability of Funding for Those Projects

RFP 045 2500000007

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2500000007 Final School Facilities Fund Audit - HB6 2024 Total Pages: 33 https://www.merriam-webster.com/dictionary/seal https://www.merriam-webster.com/dictionary/seal

This document constitutes a Request for Proposals for a Personal Service Contract from qualified individuals and organizations to furnish those services as described herein for the Commonwealth of Kentucky, Auditor of Public Accounts.

Offerors are advised that any personal service contract resulting from this RFP must comply with all applicable provisions of KRS 45A and KRS 12.210 prior to becoming effective.

A contract, based on this RFP, may or may not be awarded. Any contract award from this RFP is invalid until properly approved and executed by the Finance and Administration Cabinet and filed with the Legislative Research Commission, Government Contract Review Committee.

1.00 Purpose and Background

The purpose of this RFP is to solicit proposals to conduct a specialized audit of school facility project cost estimates identified for potential funding from the Kentucky School Facility Assistance Fund and of the funding sources available for those projects. The audit shall be completed by a duly licensed, independent certified public accounting firm (FIRM) qualified to do business in the Commonwealth of Kentucky and under the auspices of the Auditor of Public Accounts (APA).

This audit is mandated by 2024 Kentucky House Bill 6, § 1, Part I.A.22(11) and is to be conducted in accordance with that legislation and with generally accepted accounting principles. This audit shall be completed no later than December 16, 2024, but if requested by FIRM and agreed upon by the APA, the audit may be completed no later than February 17, 2025.

2.00 Scope of Work

A. General Nature of Services Requested

As background, the General Assembly has authorized the School Facilities Construction Commission, see KRS 157.611, “to make awards from the School Facility Assistance Fund in fiscal year 2025-2026 to local districts for facilities” operated by schools that satisfy particular criteria, 2024 Kentucky House Bill 6, § 1, Part I.A.27(5). But the Commission’s awards from the Fund “shall not exceed 50 percent of the difference between the costs to construct, repair, or renovate facilities and the amount of available local resources, as certified in the audit” that is the subject of this RFP. Id.

The General Assembly tasked the Kentucky Auditor of Public Accounts with certifying that audit, which “shall be conducted by an impartial independent contractor,” 2024 Kentucky House Bill 6, § 1, Part I.A.27(5). Generally speaking, the audit is “a special audit of school facility project cost estimates identified for potential funding as part of the School Facility Assistance Fund.” 2024 Kentucky House Bill 6, § 1, Part I.A.22(11). More specifically, “[t]he audit shall, at minimum, examine each project’s scope, cost, and available local resources for the purpose of determining appropriate state funding.” Id.

B. Engagement Standards to be Followed

To the extent possible taking into account the objectives of the engagement, the engagement shall be performed in accordance with auditing standards generally accepted in the United States of America, guidance issued by the American Institute of Certified Public Accounts, and Government Auditing Standards issued by the Comptroller General of the United States.

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2500000007 Final School Facilities Fund Audit - HB6 2024 Total Pages: 33

C. Prime FIRM Responsibility

Proposals from a consortium of FIRMS shall be accepted, provided that a prime FIRM is designated in the proposal and remains solely responsible for fulfillment of the contract with APA.

APA reserves the right to reject FIRM’s use of any subcontractor. During the term of the contract, no subcontractor will be used without the prior written approval of APA. APA may permit FIRM to substitute a different subcontractor in case of such rejection. Failure to notify APA of the use of a subcontractor in time to secure APA approval may result in termination for breach.

D. Representation Letter

The proposal shall include a representation letter stating that FIRM is in compliance with standards generally accepted in the United States of America and the provisions of Government Auditing Standards, issued by the United States Government Accountability Office, concerning continuing education requirements, independence, and peer review.

E. Cost of Preparing Proposal

Costs for developing the proposal are solely the responsibility of FIRM. APA shall provide no reimbursement for such costs. Any costs associated with any oral presentations to APA shall be the responsibility of FIRM and shall in no way be billable to APA.

F. Partial Performance

In the event FIRM fails to comply with the provisions of the contract to the satisfaction of APA, payment under the contract may, at APA’s discretion, be withheld and liquidated damages may be applied as set out in this RFP until such time as the contract terms have been fulfilled. This condition also allows for administrative, contractual, and legal remedies as determined by the Secretary of the Finance and Administration Cabinet or the Attorney General of the Commonwealth where it appears that the FIRM has violated, breached, or defaulted on the contract.

G. Special Services to be Performed

FIRM shall perform a special audit of school facility project cost estimates identified for potential funding as part of the School Facility Assistance Fund in 2024 Kentucky House Bill 6 § 1, Part I.A.27(5). The audit shall, at minimum, examine each project’s scope, cost, and available local resources for the purpose of determining appropriate state funding.

H. Reports to be Delivered to APA

FIRM shall deliver to the APA for issuance under APA cover the following report and letter by the dates shown:

1. A report on school facility project cost estimates, which includes an examination of each project’s scope, cost, and available local resources, for the purpose of determining appropriate state funding. To the extent possible, the report shall reflect an examination done in accordance with Government Auditing Standards. The report shall be furnished to the APA no later than December 16, 2024. At the request of FIRM and upon agreement by the APA, FIRM may have until no later than February 17, 2025 to furnish its report to the APA.

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2. A letter reporting the results of audit procedures shall be furnished to the APA at a time specified by the APA, but not later than December 16, 2024. At the request of FIRM and upon agreement by the APA, FIRM may have until no later than February 17, 2025 to furnish that letter to the APA.

3. FIRM shall make immediate notification to the APA of any fraud or illegal act or indications thereof that comes to the FIRM’s attention during the term of the contract.

4. FIRM shall make immediate notification to the APA of any security risk or other matter that comes to the FIRM’s attention which may have a significant impact on the Commonwealth’s financial statements.

I. Conditions for the Development and Presentation of Reports

1. Except to the extent necessary to complete the audit, the final report shall be presented in the manner prescribed by the AICPA and all additionally referenced guidance. Any matters conveyed to any relevant entities shall be in writing, and a copy of that correspondence shall be forwarded to the APA.

APA staff shall complete a report review, including audit documentation, and notify FIRM of discrepancies, if any, to be corrected. FIRM shall correct reported discrepancies in a manner and time established by the APA. Failure of FIRM to correct reported discrepancies in the manner and time established by APA may result in the imposition of liquidated damages under Section 2.00(P) of this RFP, or other damages.

2. FIRM shall deliver electronic copies of completed audit documentation (working papers) with the draft audit reports.

3. If the delivery of the final report required by December 16, 2024, is delayed, draft copies of the report shall be furnished to the APA by December 16, 2024.

4. To the extent applicable to this audit, FIRM shall provide, at least one week prior to the exit conference, a draft copy of the engagement opinion, report, and any supplemental information to relevant audited entities and to the APA to satisfy exit conference requirements. Any relevant audited entity’s responses to the report shall be included in the report presented at the exit conference. Any exit conference with any relevant entity, which the APA may attend, must be held prior to the public release of the report.

5. Publication, issuance, and distribution of the final engagement report shall be the responsibility of the APA.

6. Report Formatting Submittal and Specifications. An electronic copy of the final report is to be provided to the APA by email attachment or through web access. The final report should be submitted in Word (.doc) format. Additional formatting should include electronic signatures where required. Times New Roman as the font (both text and spreadsheet) for all documents, spreadsheets, charts, etc., should be included in the document as appropriate.

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J. FIRM’s Responsibilities During the Contract Term

1. FIRM shall provide to the APA and all relevant audited entities a client assistance letter designating schedules, reports, and procedures that are required to make the engagement most efficient.

2. FIRM shall designate a project manager who shall be the contact with the APA. The project manager shall oversee all activities for FIRM. The project manager shall provide an e-mail address, fax number, and phone number to the APA for daily contact purposes.

3. FIRM shall notify the APA of any professional staff assignment changes made by FIRM for this engagement. FIRM will provide APA written explanation for the change in professional staff assigned to the engagement and provide a brief biographical sketch detailing the professional experience of the new staff person assigned to this engagement. Professional staff assigned as a replacement for this engagement will have skills and experience that at a minimum are commensurate with the professional staff originally proposed to be assigned to this engagement. The APA reserves the right to approve the assignment of professional staff replacements.

4. FIRM shall be responsible for becoming familiar with appropriate state laws, regulations, engagement standards, and relevant audit material.

5. To the extent applicable to this audit, FIRM shall arrange for an entrance conference with relevant audited entities and the APA to detail the engagement approach, engagement timeline that will be adhered to, progress meetings to discuss engagement issues, and an exit conference to finalize findings with relevant audited entities and APA representatives.

6. FIRM shall be responsible for personnel, supplies, and equipment.

7. FIRM shall be responsible for all services offered in FIRM’s proposal whether or not FIRM provides such services.

8. FIRM shall have general professional liability insurance or specific professional liability insurance for this engagement in an amount equal to the contract price and provide the APA with proof of this coverage.

9. FIRM shall be responsible for all material errors and omissions in the performance of the contract.

10. FIRM shall notify the APA in writing when the fieldwork begins.

11. FIRM shall provide a copy of engagement documentation and work papers to APA at no additional cost.

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12. Upon the APA’s approval of FIRM’s draft report, and only subsequent to such approval, FIRM is responsible for presenting the report and management letter to the APA, with such material being labelled draft and not subject to public release until such public release is approved by the APA.

13. Upon request, FIRM shall present or discuss engagement findings to legislative committees or other appropriate parties.

14. In the event the APA does not find the Firm’s draft report or audit documentation acceptable, and returns it to Firm for further work, the Firm shall perform the follow-up work within 10 working days, unless otherwise agreed to by the APA.

15. The FIRM shall provide a secure mechanism for the sharing of confidential and protected information throughout the audit engagement that ensures that sensitive and/or proprietary data is protected in transit and at rest.

K. APA’s Responsibilities During the Contract Term

1. The APA shall designate—in writing—a liaison to coordinate activities among the APA and FIRM.

2. The APA shall be solely responsible for issuing and distributing all reports under APA cover.

3. The APA shall review and comment on FIRM’s working papers and draft reports.

4. The APA shall review and provide written acceptance of the final report and provide payment to FIRM in accordance with this RFP.

5. The APA may attend entrance and exit conferences.

L. Relevant Audited Entities’ Responsibilities

1. Make all relevant files and records available to FIRM.

2. Discuss the draft findings with FIRM and, no later than ten workdays after receipt, shall provide FIRM a written response to the draft findings.

3. Provide assistance to FIRM; namely, gathering supporting documentation from the files and preparing schedules.

4. Make appropriate personnel available on a reasonable basis for interviews and information-gathering purposes.

M. Progress Reports

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Upon the request of the APA, FIRM shall attend meetings to discuss the progress of the engagement. FIRM shall submit a monthly progress report to an APA liaison. These reports shall begin one month after the beginning date of the contract and end with the submission of the final report and letters. Each report shall provide a brief synopsis of the engagement’s progress and a cumulative record of budgeted to actual time by FIRM’s engagement staff. Each report shall also include any significant issues that may affect FIRM’s ability to comply with the terms of the contract.

N. Engagement Documentation

All engagement documentation (working papers) and reports must be retained, at FIRM’s expense, for a period of six (6) years unless FIRM is notified in writing by APA of the need to extend the retention period. FIRM shall be required to make engagement documentation available, upon request, to the APA.

In addition, FIRM shall respond to all inquiries of successor auditors.

O. Modifications to Statement of Work

Any modifications to the statement of work or changes in the time necessary to complete the work shall be thoroughly discussed with FIRM and agreed to in writing by the FIRM and the APA prior to the implementation of any modification or change. If necessary, the contract amount may be amended to reflect such modification or change, which may exceed the cap set out in the cost proposal.

P. Payment for Services

1. Payment Procedures

Payment is predicated upon completion of the described work and APA approval of engagement documentation. Invoices shall be signed and submitted to Shawnna Crouse, Assistant State Auditor, 209 St. Clair Street, Frankfort, Kentucky, 40601-1817, with adequate supporting documentation, including but not limited to:

a. Period the services cover;

b. Detail of hours worked with the hourly rate and detail of total hours worked.

All invoices must conform to the requirements of KRS 45A.695(10):

https://apps.legislature.ky.gov/moreinfo/Contracts/PSC%20INVOICE%20FORM.pdf Payment will be made only for hours actually worked.

2. Method of Payment

FIRM may request up to two progress payments prior to the completion of the audit. Such payments shall be based on FIRM’s hourly rate multiplied by the number of hours worked in a month as reflected in FIRM’s progress reports, except that the maximum that may be invoiced for any one payment shall not exceed one-third of the total contract amount.

The APA shall withhold 10 percent of each progress billing plus one-third of the total contract amount until satisfactory completion of the contract terms as described herein has been achieved, as determined by the APA.

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Every reasonable effort shall be made to provide payments, in accordance with KRS 45.453, to FIRM within 30 days after receipt of a properly signed and supported invoice.

3. Liquidated Damages

By submitting a proposal in response to this RFP, FIRM acknowledges that timely performance of the engagement is necessary for the continued functioning of APA and the School Facility Assistance Fund. FIRM further acknowledges that actual harm would be caused to the Commonwealth and the APA by delay in completion of said contract, and that the amount (but not the existence) of actual loss by the APA is not amendable to calculation or proof in a civil action for recovery of same. Therefore, the formula as set out below is deemed reasonable by each party as a means of calculating liquidated damages in the event of delayed completion.

At the discretion of the APA, FIRM may be assessed as liquidated damages for each calendar day or portion thereof after the due date of the audit’s completion (December 16, 2024 or up to February 17, 2025 if agreed to by the APA) where it has not been delivered to the APA in accordance with the contract or that the engagement remains inaccurate or incomplete and, therefore, not timely submitted.

Damages may be calculated for each day after December 16, 2024 as follows:

Total Contract Amount X 2% = Amount of damages Assessed Per Day.

Example: Calculation of damages for the day December 17, 2024

Total Contract Amount = $3,000

$3,000 X 2% = $60 damages for December 17.

Liquidated damages may be calculated daily for each calendar day after December 16, 2024 that the engagement remains incomplete, inaccurate, or not delivered. Total liquidated damages assessed shall not exceed the Total Contract Amount.

3.00 Evaluation Criteria

The APA shall conduct a comprehensive, fair, and impartial evaluation of all proposals. The APA may reject any proposal that is incomplete or in which there are significant inconsistencies or inaccuracies. The APA reserves the right to reject all proposals.

The APA has established a Proposal Evaluation Committee to review, evaluate and verify information submitted by the offeror.

Each vendor is responsible for submitting all relevant, factual and correct information with their offer to enable the evaluator(s) to afford each vendor the maximum score based on the available data submitted by the vendor.

The APA shall evaluate the proposals by assigning scores as indicated.

A. Technical Proposal Evaluation:

To assist in comparing proposals relative to the evaluation criteria, a technical proposal should include among its material the following information in distinct, easily distinguished sections. The

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APA will evaluate all proposals in accordance with KRS 45A.695. Each proposal will be evaluated by members of the Evaluation Committee as follows:

Criteria Maximum Points Possible

Responsiveness to RFP:

This criteria refers to an evaluation of the FIRM’s proposal’s adherence to the technical requirements of this RFP, including in particular the information and documents solicited and the clarity and cohesion of the RFP as a written, consolidated package, and the inclusion of the following information in the proposal itself.

1. A statement that FIRM is a properly licensed certified public accountant who, at the time the proposal is submitted to the APA, meets the qualifications existing to do business within the Commonwealth of Kentucky and to perform the School Facility Assistance Fund audit engagement.

2. A statement that FIRM meets the independence, continuing education, and peer review standards of Government Auditing Standards.

3. A statement that FIRM has reviewed all relationships and has determined that it meets the objectivity and independence standards of the Kentucky Board of Accountancy for this type of engagement.

4. A listing of FIRM’s professional relationships involving the Commonwealth, any of its component units for the past five years, and any unit of county or local government within the Commonwealth, together with a statement explaining why such relationships do not constitute a conflict of interests in providing assistance to APA. Prior to contract execution, FIRM may be asked to disclose further information involving relationships with major vendors of the Commonwealth, its components, and any unit of county or local government.

5. A description of FIRM’s quality control procedures.

6. A statement disclosing whether the Kentucky Board of Accountancy or any other state’s CPA licensing body has taken disciplinary action against the FIRM (or any CPA employed or retained by FIRM who will work on this engagement) within the past five calendar years, and

Document Phase Document Description Page 12 if so, a detailed explanation of the circumstances of the disciplinary action taken.

7. The proposal should be prepared and presented as a single volume where practical, including supporting documentation.

8. Proposals should be prepared simply and economically, providing a straightforward, concise description of FIRM’s capabilities to satisfy the requirements of the RFP. Emphasis should be on completeness and clarity of content. Repetition of the terms and conditions of this RFP, without additional explanation, will not be considered responsive.

9. The proposal should include a title page stating the RFP subject, name of FIRM, local address, telephone number, email address, name of contact person, date, and a table of contents which clearly identifies material by section and page number.

10. The proposal should include a statement that NO cost or pricing information has been included in the technical proposal.

11. The proposal should include a proposed work plan setting out the audit approach that would be used in providing the audit services required by this RFP, including:

a. Setting audit objectives;

b. Audit planning and analytical procedures;

c. Documenting and collecting evidence;

d. Conducting interviews; and

e. Developing a final audit report.

Kentucky Government and/or School Facility Cost Estimate Audit Experience:

This criteria refers to an evaluation of the FIRM’s prior successful experience in managing, executing, and delivering on contracts for audits of state agencies, local governments and officials, special purpose government entities, educational systems and institutions, and other public and quasi-public entities as well as prior successful experience the FIRM has in any jurisdiction in managing, executing, Document Phase Document Description Page 13 and delivering a successful audit of the cost of and available funding for the building of school facilities.

1. A description of FIRM-wide experience during 2021, 2022, and 2023 working on audits of Kentucky state and local governmental entities.

2. A description of FIRM-wide experience during any previous year of auditing the cost of and available funding for the building of school facilities.

FIRM’s Audit Personnel Experience:

This criteria refers to an evaluation of the individuals the FIRM proposes to utilize in managing and performing the audit, both as to education and professional training as well as prior successful experience in performing the type of work they would be performing in this audit engagement.

1. A description of experience of partners, managers, supervisors, seniors, and other professional staff that will work on the engagement, giving the year, engagement partner, total hours, and the name and telephone number of the principal client contact, as to:

a. Audits involving Kentucky state and local governmental entities in the last 5 years; and

b. Audits involving an evaluation of the cost of and available funding for school facilities.

FIRM’s Capacity and Resources:

This criteria refers to an evaluation of the FIRM’s ability to have sufficient technical expertise, staffing levels, data analytics capabilities, logistics, and redundancy in all areas to execute the audit engagement at issue here with high quality deliverables, including the final report, by the deadlines set out in this RFP.

1. FIRM background information covering:

a. Date established;

b. Location of clientele - local, regional, national, or international; and

c. Total number of professional staff.

2. Local office information covering:

a. Location of FIRM office that will supply staff;

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b. Number of partners, managers, supervisors, seniors, and other professional staff employed in FIRM office that will supply staff; and

c. Brief biographical sketch detailing experience of professional staff who will be assigned to the engagement

3. The hours proposed by the firm as needed to complete the engagement, with the proposed hours agreeing with those provided in the separate cost proposal. However, do NOT present cost information in this technical proposal.

4. A statement of whether FIRM’s most recent peer review included a review of specific government engagements, together with a copy of the peer review report, including letter of comments, if applicable.

5. A work plan, including the engagement approach that would be used in providing the services required in this RFP, including, but not limited to, the following engagement approach areas for a service center organization:

a. Setting engagement timeline;

b. Engagement planning and analytical procedures;

c. Developing the engagement plan and engagement program;

d. Documenting and collecting evidence;

e. An advisement of activities unique to the audit at issue here and the approach FIRM intends to use to examine them; and

f. Developing engagement report.

Evaluation of FIRM:

An evaluation of the FIRM’s reputation and business goodwill within the auditing profession and its client base as evidenced by past successful engagements, customer responsiveness, and other relevant performance measures and the feedback provided by the community and its clients in response to requests by the APA for reference checks on the FIRM.

1. The client contact information for five (5) recent audits by FIRM, which may include audit engagements and client contacts previously provided under other evaluation criteria in this RFP, should be provided for utilization by APA to obtain feedback as part of the evaluation of the

FIRM.

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Maximum Points Possible 1000

Cost Proposal Evaluation

Criteria Maximum Points Possible

SEE ATTACHMENT A FOR PROPOSAL

EXAMPLE FORM

The same person signing the transmittal letter in the technical proposal shall sign the cost proposal.

The cost proposal shall be for the services requested in this RFP, and shall contain the name of FIRM and classification, time, and rate information.

Maximum Points Possible 100

Oral Demonstration/Presentation Evaluation, if required.

Oral Demonstration/Presentation

The Commonwealth reserves the right to require Oral Presentations/Demonstrations to verify or expand on the Technical or Cost Proposals. Oral Presentations/Demonstrations may be conducted through videoconferencing or by conference call, if it is in the best interest of the Commonwealth to do so.

This is the opportunity for the vendor to present and demonstrate the solution and to answer questions or to clarify the understanding of the evaluation committee in accordance with the requirements of this RFP. The Commonwealth reserves the right to reject any or all proposals in whole or in part based on the oral presentations/demonstrations.

If required, the top 2 highest ranking vendors may be invited. Scheduling will be at the discretion of the Commonwealth. The Commonwealth reserves the right not to require oral presentations/demonstrations

Maximum Points Possible 100

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Total Proposal Evaluation

Technical Proposal 1000

Cost Proposal 100

Oral Demonstrations/Presentations, if required 100

MAXIMUM POINTS POSSIBLE 1200

4.00 Schedule of RFP Activities

The following schedule presents the major activities associated with the RFP distribution, written questions and proposal submission. The Commonwealth reserves the right at its sole discretion to change the Schedule of Activities, including the associated dates and times.

Release of RFP 07/26/24

Written Questions due by: 4:30 p.m. 08/5/24

Anticipated Commonwealth Response to Written Questions 08/12/24

Offeror’s Conference N/A

Anticipated Commonwealth Response to Vendor Conference Written Questions

N/A

Proposals Due by: 4:30 p.m. 08/19/24

*NOTE: ALL TIME REFERENCES ARE TO THE EASTERN TIME ZONE.

5.00 Offeror’s Conference

Not applicable.

6.00 Point of Contact

The Agency Contact named below shall be the sole point of contact throughout the procurement process. All communications, oral and written (regular mail, express mail or electronic mail), concerning this procurement shall be addressed to:

Toni Simmons Auditor of Public Accounts 209 St. Clair St.

Frankfort, KY 40601

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502-564-5841 toni.simmons@ky.gov

From the issue date of this RFP until a Contractor(s) is selected and the selection is announced, Offerors shall not communicate with any other Commonwealth staff concerning this RFP.

7.00 Questions Regarding this RFP

Questions must be submitted in writing to the Agency Contact. The Commonwealth will respond to salient questions in writing by issuing an Addendum to the Solicitation. The Addendum shall be posted to the Commonwealth’s eProcurement page.

8.00 Proposal Submission

Hard Copy Proposals

Each qualified offeror shall submit only one (1) proposal. Alternate proposals shall not be allowed. Failure to submit as specified shall result in a non-responsive proposal.

The vendor should complete the “Vendor” box on the face of the solicitation. An authorized representative of the vendor shall sign where indicated on the face of the solicitation.

Acknowledgment of Addenda

It is the vendor’s responsibility to check the e-procurement website for any modification to this solicitation. Vendors are encouraged to acknowledge each addendum by signing and submitting the latest addendum with their response. However, signing the face of the solicitation as indicated above constitutes the vendor’s acknowledgment of and agreement to be bound by the terms of all addenda issued.

Failure to specifically acknowledge addenda will not excuse the vendor from adhering to all changes to the requirements of the solicitation set forth therein, nor provide justification for any pricing changes.

All submitted technical and cost proposals shall remain valid for a minimum of six (6) months after the proposal due date.

8.10 Format of Response

Proposals shall be submitted in three (3) parts: the Technical Proposal, the Cost Proposal, and if applicable the Proprietary Information.

Each part shall consist of one document. Do not submit multiple documents as Technical, Cost or Proprietary.

1. The Technical Proposal shall include one (1) marked original hard/paper copy technical and five (5) marked technical thumb/flash drives (in Microsoft Word, Microsoft Excel or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos.

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2. The Cost Proposal shall include one (1) marked original hard/paper copy cost and one (1) marked cost thumb/flash drive (in Microsoft Word, Microsoft Excel, or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos.

2.

Any Proprietary Information shall include one (1) marked original hard/paper copy proprietary (in Microsoft Word, Microsoft Excel or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos.

Proposal shall be submitted to the Agency Contact.

The outside cover of the package containing the technical proposal shall be marked:

Auditing Assistance with Kentucky School Facility Assistance Fund Project Estimates and the Availability of Funding for Those Projects

RFP 045 2500000007

TECHNICAL PROPOSAL

[Name of Offeror]

The outside cover of the package containing the cost proposal shall be marked:

Auditing Assistance with Kentucky School Facility Assistance Fund Project Estimates and the Availability of Funding for Those Projects

RFP 045 2500000007

COST PROPOSAL

[Name of Offeror]

If applicable, the outside cover of the package containing the proprietary information shall be marked:

Auditing Assistance with Kentucky School Facility Assistance Fund Project Estimates and the Availability of Funding for Those Projects

RFP 045 2500000007

PROPRIETARY PROPOSAL

[Name of Offeror]

All proposals must be received no later than 4:30 p.m. on August 19, 2024.

Pricing shall only be provided in the Cost Proposal. DO NOT SUBMIT ANY PRICING

INFORMATION IN THE TECHNICAL PROPOSAL.

All submitted Technical and Cost Proposals shall remain valid for a minimum of six (6) months after the proposal due date.

8.20 Format of Technical Proposal

The Technical Proposal must be arranged and labeled in the manner set forth below.

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Transmittal Letter – a Transmittal letter shall be submitted on Offeror’s letterhead and signed by an agent authorized to bind the Offeror. The Transmittal letter shall include the following:

a. A statement that deviations are included, if applicable.

b. A statement that proprietary information is included, if applicable.

c. A statement that, if awarded a contract as a result of this Solicitation, the Offeror shall comply in full with all the requirements of the Kentucky Civil Rights Act, and shall submit all data required by KRS 45.560 to 45.640.

d. A sworn statement that, pursuant to KRS 11A.040, that Offeror has not knowingly violated any provisions of the Executive Branch Code of Ethics.

e. A statement certifying that the price in this proposal was arrived at independently without collusion, consultation, communication, or agreement as to any matter relating to such prices with any other Offeror or with any competitor.

f. A statement affirming that the Offeror is properly authorized under the laws of the Commonwealth of Kentucky to conduct business in this state and will remain in good standing with the Office of the Kentucky Secretary of State for the duration of any awarded contract resulting from this Solicitation.

g. The name, address, telephone number and email address and website address, if available, of the contract person to serve as a point of contact for day-to-day operations.

h. Subcontractor information to include the name of the company, address, telephone number and contact name, if applicable.

i. Foreign entity’s organization number issued by the Secretary of State in a certificate of authority or a statement of foreign qualification, if applicable.

Completed and Signed Solicitation and Addenda – An authorized representative MUST complete and sign the Solicitation form and include the following:

a. “Vendor” box and “Payment” box should be completed.

b. Vendor shall indicate ownership type.

c. Vendor shall provide “FEIN” if applicable.

d. Vendor shall provide date the form is completed and signed.

e. Signed face of the most recent Addenda, if applicable.

Signed and Notarized Required Affidavit for Bidders or Offerors - available at the following link:

https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx.

Signed and Notarized Required Affidavit for Bidders, Offerors and Contractors Claiming Resident Bidder Status – if applicable. Available at the following link:

https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx.

*Offerors not claiming Resident Bidder Status need not submit this affidavit.

Signed and Notarized Required Affidavit for Bidders, Offerors and Contractors Claiming Qualified Bidder Status – if applicable. Available at the following link:

https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx.

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*Offerors not claiming Qualified Bidder Status need not submit this affidavit.

Response to the Technical Portion of the RFP – Please provide a detailed response to the technical requirements outlined in the Evaluation Criteria. No cost information shall be provided in the technical portion.

8.30 Format of Cost Proposal

The Cost Proposal must be submitted under separate cover from the Technical Proposal and must be arranged and labeled in the manner specified. The proposal with the lowest price receives the maximum score. The remaining proposals with the next lowest price receive points by dividing the lowest price by the next lowest price and multiplying that percentage by the available points.

8.40 Certification Regarding Debarment and Suspension

In accordance with Federal Acquisition Regulation 52.209-5, the Offeror shall certify, by signing the Solicitation, that to the best of its knowledge and belief, the Offeror and/or its Principals is (are) not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any state or federal agency.

For the purposes of this certification, “Principals”, means officers, directors, owners, partners, and persons having primary management or supervisory responsibilities within a business entity (e.g., general manager, plant manager, head of subsidiary, division, or business segment, and similar positions.

9.00 Rules of Procurement

To facilitate this procurement, various rules have been established. These are described in the following paragraphs.

Offerors should review and comply with the General Conditions and Instructions for Solicitation/ Contract listed under “Response to Solicitation” located on the eProcurement web page at https://finance.ky.gov/eProcurement/Pages/doing-business-with-the-commonwealth.aspx

The procurement process will provide for the evaluation of proposals and selection of the winning proposal in accordance with state law and regulations. KRS Chapter 45A of the Kentucky Model Procurement Code provides the regulatory framework for the procurement of services by state agencies.

9.10 Technical Proposal Evaluation

The APA will evaluate the proposal based on the technical portion of the Evaluation Criteria.

Each Offeror is responsible for submitting all relevant, factual and correct information with their offer to enable the evaluator(s) to afford each vendor the maximum score based on the available data submitted by the Offeror. Past Offeror Performance may be considered in the award of this Contract. Offerors with a record of poor performance in the last twelve (12) months may be found non-responsible and ineligible for award.

9.20 Cost Proposal Evaluation

The APA will evaluate the proposal based on the cost portion of the Evaluation Criteria.

Offeror shall only provide cost on the attached Cost Proposal Form; otherwise, the proposal may be deemed non-responsive.

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9.30 Right to Reject/Waiver of Minor Irregularities

The Commonwealth reserves the right at its discretion to reject any and all offers. The Commonwealth also reserves the right at its discretion to waive informalities and minor irregularities in offers received.

9.40 Clarification of Proposals

The Commonwealth reserves the right at its discretion to request additional information as may reasonably be required for selection and to reject any proposals for failure to provide additional information on a timely basis.

The Commonwealth reserves the right to conduct discussions with any Offeror who has submitted a proposal to determine the Offeror’s qualifications for further consideration. Such discussions shall not disclose any information derived from proposals submitted by other Offerors.

9.50 Best and Final Offers

The Commonwealth reserves the right at its discretion to request a Best and Final Offer (BAFO) for technical and/or cost proposals. Offerors are cautioned to propose their best possible offers at the outset of the process, as there is no guarantee that any Offeror will be allowed an opportunity to submit a Best and Final technical and/or cost offer.

9.60 Vendor Response and Public Inspection

This RFP specifies the format, required information and general content of proposals to be submitted in response to the RFP. The APA shall not disclose any portions of the proposals prior to contract award to anyone outside the APA, representatives of the agency for whose benefit the contract is proposed, representatives of the federal government, if required, and the members of the evaluation committee. After a contract is awarded in whole or in part, the Commonwealth shall have the right to duplicate, use, or disclose all proposal data submitted by Offerors in response to this RFP as a matter of public record.

Any and all documents submitted by an Offeror in response to the RFP shall be available for public inspection after contract award pursuant to the Kentucky Open Records Act, KRS 61.870 to 61.884 (“the Act”). When responding to a request to inspect records submitted in response to this RFP, the Commonwealth will not redact or withhold any information or documents unless the records sought are exempt from disclosure pursuant to KRS 61.878 or other applicable law. Similarly, no such documents shall be exempt from public disclosure, regardless of the Offeror’s designation of the information contained therein as “proprietary,” “confidential,” or otherwise, except in cases where the requested documents (or information contained therein) would be excluded from application of the Act under KRS 61.878(1)(c).

The Commonwealth of Kentucky shall have the right to use all system ideas, or adaptations of those ideas, contained in any proposal received in response to this RFP. Selection or rejections of the proposal will not affect this right.

9.70 Reciprocal Preference for Kentucky Resident Bidders and Preferences for a Qualified Bidder The scoring of bids/proposals is subject to the reciprocal preference for Kentucky resident bidders and preferences for a Qualified Bidder or the Department of Corrections, Division of Prison Industries (See KRS 45A.490(1), (2), 45A.492, 45A.494 and KAR 200 5:410).

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Vendors not claiming resident bidder or qualified bidder status need not submit the corresponding affidavit.

Determining the residency of a bidder for purposes of applying a reciprocal preference

Any individual, partnership, association, corporation, or other business entity claiming resident bidder status shall submit the attached Required Affidavit for Bidders, Offerors and Contractors Claiming Resident Bidder Status as part of its response. The APA reserves the right to request documentation supporting a bidder’s claim of resident bidder status. Failure to provide such documentation upon request shall result in disqualification of the bidder or contract termination.

As part of its response, a nonresident bidder shall submit its certificate of authority to transact business in the Commonwealth of Kentucky, Secretary of State. The location of the principal office identified therein shall be deemed the state of residency for that bidder. If the bidder is not required by law to obtain said certificate, the state of residency for that bidder shall be deemed to be that which is identified in its mailing address as provided in its bid.

Preferences for Qualified Bidder or the Department of Corrections, Division of Prison Industries (200 KAR 5:410)

Pursuant to KRS 45A.470 and 200 KAR 5:410, Kentucky Correctional Industries will receive a preference equal to twenty (20) percent of the maximum points awarded to a bidder in a solicitation. In addition, the following “qualified bidders” will receive a preference equal to fifteen

(15) percent of the maximum points awarded to a bidder in a solicitation. New Vision Industries, Inc., any nonprofit corporation that furthers the purposes of KRS Chapter 163 and any qualified nonprofit agencies for individuals with severe disabilities as defined in KRS 45A.465(3). Any bidder claiming “qualified bidder” status, other than New Vision Industries, Inc., shall submit a notarized affidavit affirming that it meets the requirements to be considered a qualified bidder as part of its response to the solicitation (affidavit form included as part of this RFP). If requested, failure to provide documentation proving qualified bidder status to a public agency, if requested, may result in disqualification of the bidder or contract termination.

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