Final_RFP_374_2400000010_2_SO_FORM.PDF

Document ID: RFP 374 2400000010 Page: 1

Commonwealth of Kentucky

SOLICITATION MODIFICATION

Modification: Yes Version #: 2

TITLE: Compliance and Integrity Services

Date Issued:

08/09/2023 Record Date:

08/03/2023

Solicitation Closes Date:

08/17/2023 Time:

11:00

Solicitation No:

RFP 374 2400000010

Reason for Modification

For the Commonwealth to respond to the written questions received.

Online Bidding Prohibited: Yes For Information Call:

Jennifer Spencer 502-782-5203

Bid Receiving Location:

Public Protection - Office of the Secretary

500 Mero Street, 2nd Floor

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 374 2400000010 Page: 2

Line Items

Commodity Group: Default

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

1 Investigation Services

Comm Code Comm Description Manufacturer Model # Manuf Part #

95353 Investigation Services

Extended Description The vendor awarded the contract shall shall perform wagering integrity investigations as requested by the KHRC and evaluate the internal controls of licensed entities against KHRC statutes and regulations. The vendor shall also provide training and consultation related to the regulation and enforcement of wagering requirements to KHRC employees.

Shipping Information Public Protection - Office of the Secretary

500 Mero Street, 2nd Floor

Frankfort KY 40601

Billing Information Public Protection - Office of the Secretary

500 Mero Street, 2nd Floor

Frankfort KY 40601

Document ID: RFP 374 2400000010 Page: 3

Submission Checklist

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

Item Oral Presentations/If Required Technical Proposal Proposed Cost

Revised January 2023

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 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 8.20 of this RFP

_____ TRANSMITTAL LETTER – Section 8.10 of this RFP

_____ PROOF OF REGISTRATION WITH SECRETARY OF STATE BY A FOREIGN ENTITY -- Section

8.00 of the Personal Service Contract Terms and Conditions of this RFP

_____ REQUIRED AFFIDAVIT(S) – Section 8.10 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

Document Description Page 4

2400000010 Compliance and Integrity Services https://www.merriam-webster.com/dictionary/seal

REQUEST FOR PROPOSAL

FOR

PERSONAL SERVICE CONTRACT

Public Protection Cabinet/Kentucky Horse Racing Commission Compliance and Integrity Services

RFP-374-2400000010

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, Kentucky Horse Racing Commission.

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

On July 10, 2023, the Kentucky Horse Racing Commission (“KHRC”) promulgated regulations establishing a system for wagering. The legalization and subsequent regulation of wagering in Kentucky necessitate robust measures to ensure transparency, fairness, and compliance with applicable statutes and regulations.

The KHRC plays a crucial role in overseeing the licensing, regulation, and enforcement of wagering activities within the state.

To fulfill its regulatory mandate effectively, the KHRC seeks to partner with a vendor that can provide specialized services in evaluating internal controls, conducting wagering integrity investigations, and delivering training and consultation to KHRC employees regarding internal control evaluation and wagering integrity investigations.

The internal controls evaluation will assess licensed entities’ internal controls’ compliance with KHRC statutes and regulations. This evaluation will help identify areas of non-compliance or weaknesses in internal controls and provide recommendations for improvement. Wagering integrity investigations are vital to maintaining the integrity of wagering operations.

The vendor will be responsible for conducting forensic investigations to uncover potential wagering integrity violations. Data analysis, comprehensive reporting, and collaboration with KHRC staff and relevant stakeholders, will aid in identifying irregularities, detecting potential violations, and recommending corrective actions.

Additionally, training and consultation services are required to enhance the knowledge and capabilities of KHRC employees in regulating and enforcing wagering requirements. The vendor will provide training sessions, assist in developing control frameworks, and offer guidance on integrating technology solutions to bolster internal controls, compliance efforts, and fraud prevention.

2.00 Scope of Work

A) Wagering Integrity Investigations: The vendor shall perform wagering integrity investigations as requested by the KHRC. The scope of work for wagering integrity investigations shall include, but not be limited to, the following:

1) Conduct forensic investigations to uncover any potential wagering integrity violations by persons identified by the commission.

2) Collaborate with KHRC staff and other relevant stakeholders to gather evidence and information related to the wagering integrity issues under investigation.

3) Analyze and evaluate collected data, including, but not limited to, wagering patterns and results, betting transaction records, and event results, to identify wagering irregularities, unusual betting activities, and potential violations.

Document Description Page 5

4) Prepare detailed investigation reports that summarize the findings, identify the root causes, and provide recommendations for corrective actions to address any wagering integrity issues or violations identified in wagering systems.

5) Assist the KHRC in implementing recommended measures to address integrity issues and prevent future wagering integrity issues or violations in conjunction with the operation of wagering. This may include providing guidance on enhancing monitoring systems, developing integrity-focused policies and procedures, and implementing educational programs for licensed entities and stakeholders.

B) Training and Consultation: The vendor shall provide training and consultation related to the regulation and enforcement of wagering requirements to KHRC employees, at the request of the KHRC. The scope of work for such training and consultation shall include, but not be limited to, the following:

1) Conduct training sessions and workshops to educate KHRC staff on when and how to independently initiate and conduct investigations related to wagering integrity violations.

2) Assist the KHRC in enhancing its internal control systems by providing customized solutions and recommendations in response to wagering integrity violations. This may include developing control frameworks, policies, and procedures that provide for comprehensive and effective enforcement of KHRC regulations.

3) Offer expertise in integrating technology solutions that support internal controls and compliance efforts for licensed entities. This may include implementing software platforms, data analytics tools, or monitoring systems to enhance the detection and prevention of fraud, money laundering, or other regulatory violations.

4) Offer 24/7 support and consultation to the KHRC in the event of wagering integrity violations.

5) Share industry best practices and insights with the KHRC, allowing it to compare its internal control requirements and compliance efforts against industry standards and sister agencies.

C) Required Qualifications: The vendor shall possess the following qualifications:

1) Prior experience in regulatory compliance within the wagering industry. This includes familiarity with the specific regulations, statutes, and standards governing wagering activities, as well as a detailed understanding of the regulatory landscape.

2) Extensive knowledge and experience in the wagering sector. This includes a comprehensive understanding of wagering operations, betting platforms, odds calculation, risk management, and related industry practices.

3) Experience in evaluating internal controls specifically tailored to wagering operations. This involves assessing control frameworks, policies, procedures, and documentation to ensure compliance with regulatory requirements and to identify any vulnerabilities or areas of non-compliance specific to wagering.

4) Expertise in conducting risk assessments specifically designed for the wagering industry.

This entails identifying and evaluating controls related to fraud, money laundering, match-fixing, betting integrity, data protection, and other regulatory concerns specific to wagering.

5) Specialized knowledge in conducting investigations related to wagering integrity issues.

This includes utilizing investigative techniques, such as data analysis and pattern recognition, monitoring irregular betting activities, collaborating with governing bodies, and coordinating with law enforcement agencies when necessary.

6) Strong reporting skills tailored to the wagering industry. This includes the ability to communicate investigation findings, compliance evaluations, and technical concepts in a clear, concise, and meaningful manner specifically geared towards wagering regulatory bodies, stakeholders, and licensed entities.

7) Understanding of the legal and regulatory frameworks governing wagering activities. This includes comprehensive knowledge of betting laws, licensing requirements, responsible gaming initiatives, and compliance obligations specific to the Commonwealth of Kentucky.

8) Ability to collaborate and cooperate with wagering regulatory bodies and operators, governing bodies, and other relevant stakeholders within the wagering industry. This includes effective communication, relationship management, and the ability to work together towards common goals.

9) Independence: The vendor shall certify that it, including its employees, management, directors, and owners, with the exception of the offeror’s external accountants

Document Description Page 6 and attorneys, must not have a financial or other interest, directly or indirectly, in a manufacturer, distributor, or operator of any relevant gaming systems or components, regardless of whether or not the vendor and all listed affiliates are licensed, registered, or other do business in a jurisdiction.

i) The vendor must not participate in the design, development, programming, or manufacture of any relevant gaming systems or components.

ii) The vendor must not have any other interest or involvement with a manufacturer, distributor, or operator that could compromise the vendor’s impartiality.

iii) Individuals associated with the vendor shall not serve in any capacity with a manufacturer, distributor, or operator beyond the scope of the vendor’s engagement, except as provided in the following exceptions:

(1) These restrictions shall not limit the vendor or the listed individuals from providing consulting services to a manufacturer, distributor, or operator, provided that such services do not directly or indirectly indicate how to design, develop, program, or manufacture any gaming systems or components.

(2) These restrictions shall not limit the vendor’s ability to accept fees from a manufacturer, distributor, or operator in relation to testing or advisory services carried out as required by law.

3.00 Evaluation Criteria

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

The Kentucky Horse Racing Commission 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 Kentucky Horse Racing Commission shall evaluate the proposals by assigning scores as indicated.

Technical Proposal Evaluation

Criteria Maximum Points Possible Mandatory Requirement

Requirements that include the words “Shall”, “Will”, “Must” indicate a mandatory requirement

Mandatory Requirement means a condition set out in the specifications or statement of work that must be met without exception.

PROPOSALS THAT DO NOT MEET MANDATORY

REQUIREMENTS WILL BE DEEMED NON-

RESPONSIVE AND WILL NOT BE CONSIDERED.

Pass/Fail

The vendor's proposal shall provide a detailed narrative, which demonstrates that the vendor has a clear understanding of and commitment to comply with all relevant regulatory requirements and ethical considerations.

Pass/Fail

The vendor must possess and include in a detailed resume prior experience in regulatory compliance within the wagering industry, including familiarity with specific regulations, Pass/Fail

Document Description Page 7 statutes, and standards governing wagering activities, as well as a detailed understanding of the regulatory landscape.

Provide an attestation that the vendor meets the criteria for independence outlined in the scope of work.

Pass/Fail

Provide a detailed narrative that presents a well-defined approach to performing wagering integrity investigations as requested by the

KHRC.

Provide a detailed narrative, which provides clear and comprehensive recommendations for improving internal controls and ensuring compliance with KHRC statutes and regulations.

Provide a detailed narrative, which describes a collaborative strategy and methodology for gathering evidence and information related to the wagering integrity issues under investigation, including collaboration with KHRC staff and other relevant stakeholders.

Provide a narrative or an outline, which sets forth a methodology for preparing detailed investigation reports summarizing findings, identifying root causes, and providing recommendations for corrective actions related to any wagering integrity issues or violations found in wagering systems.

The vendor's proposal provides a detailed narrative, which presents a comprehensive plan for providing training and consultation related to the regulation and enforcement of wagering requirements to KHRC employees, as requested.

Provide a narrative or an outline, which sets forth an approach to develop comprehensive reports detailing the findings, recommendations, and suggested actions for each licensed entity.

Provide documentation demonstrating that the vendor is accredited by the International Organization for Standardization for conformity assessment (ISO/IEC 17020) or other relevant accrediting body.

Provide detailed narrative explaining the vendor’s proposed approach to sharing industry best practices and insights with the KHRC, which compares internal control requirements and compliance efforts against industry standards and sister agencies.

Maximum Points Possible 520

Cost Proposal Evaluation

Criteria Maximum Points Possible

Document Description Page 8

Cost proposal shall be provided as an hourly rate. 100 Maximum Points Possible 100

Oral Demonstration/Presentation Evaluation, if required

Oral Presentations/Demonstrations

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 three (3) 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

Total Proposal Evaluation

Technical Proposal 520 Cost Proposal 100 Oral Demonstrations/Presentations, if required

MAXIMUM POINTS POSSIBLE

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 07/24/23 Written Questions due by: 11:00 am 08/01/23 Anticipated Commonwealth Response to Written Questions 08/09/23 Proposals Due by: 11:00 am 08/17/23 All bidders are cautioned to be aware of the security in the Public Protection Cabinet building located at 500 Mero Street, Frankfort, Kentucky. All bids shall be time stamped in the Public Protection Cabinet no later than the due date and time defined in this Solicitation. In person or courier delivered bids in response to this Solicitation shall be delivered to the Public Protection Cabinet, c/o Jennifer Spencer. Delays due to building security checks shall not be justification for acceptance of a late bid.

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

Document Description Page 9

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:

Jennifer Spencer Public Protection Cabinet 500 Mero St., 218 NC Frankfort, KY 40601

(502) 782-5203 jennifer.spencer@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. Signature is not required if proposals are submitted electronically.

Acknowledgment of Addenda

It is the vendor's responsibility to check the web site for any modifications 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 acknowledgement 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

Hard Copy Proposals

Document Description Page 10 mailto:jennifer.spencer@ky.gov

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

1. The Technical Proposal should include one (1) marked original hard/ paper copy technical and three (3) marked technical thumb/flash drives (in Microsoft Word, Microsoft Excel or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos.

2. The Cost Proposal should include one (1) marked original hard/paper copy cost and three (3) marked cost thumb/flash drives (in Microsoft Word, Microsoft Excel or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos.

3. Any Proprietary Information should include one (1) marked original hard/paper copy proprietary and three (3) marked proprietary data thumb/ flash drives (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:

Compliance and Integrity Services

RFP-374-2400000010

TECHNICAL PROPOSAL

Public Protection Cabinet Kentucky Horse Racing Commission

If applicable, the outside cover of the package containing the cost proposal shall be marked:

Compliance and Integrity Services

RFP-374-2400000010

COST PROPOSAL

Public Protection Cabinet Kentucky Horse Racing Commission

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

Compliance and Integrity Services

RFP-374-2400000010

PROPRIETARY PROPOSAL

Public Protection Cabinet Kentucky Horse Racing Commission

All proposals must be received no later than 11:00 am on August 17, 2023.

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.

Document Description Page 11

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.

*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 receives points by dividing the lowest price by the next lowest price and multiplying that percentage by the available points.

Document Description Page 12 https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx

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 Kentucky Horse Racing Commission 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 Kentucky Horse Racing Commission will evaluate the proposal based on the cost portion of the Evaluation Criteria.

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 Kentucky Horse Racing Commission shall not disclose any portions of the proposals prior to contract award to anyone outside the Kentucky Horse Racing Commission, 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

Document Description Page 13

2400000010 Compliance and Integrity Services https://finance.ky.gov/eProcurement/Pages/doing-business-with-the-commonwealth.aspx https://finance.ky.gov/eProcurement/Pages/doing-business-with-the-commonwealth.aspx 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 RP 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).

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 Kentucky Horse Racing Commission 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.

9.80 Negotiation

After conducting the evaluation to determine the best proposal received, the Kentucky Horse Racing Commission reserves the right to negotiate a fair and reasonable compensation based on the pricing submitted in the Offeror’s proposal. If the negotiations fail to reach an agreement on a fair and reasonable compensation rate, the Kentucky Horse Racing Commission reserves the right to proceed to the next highest ranked proposal. Other terms and conditions relating to the technical and/or cost proposals may be negotiated at the sole discretion of the Commonwealth.

Document Description Page 14

9.85 Best Interests of the Commonwealth

The Commonwealth will rank all proposals in the manner set forth in the Evaluation Criteria. However, the Commonwealth reserves the right to reject any or all proposals in whole or in part before, during, or after negotiation based on the best interests of the Commonwealth.

CONTRACT AWARD, TERMS, AND CONDITIONS

10.00 Notification of Award

To view the award of contract(s), including the contractor(s) receiving the award(s) for this solicitation, access the Kentucky Vendor Self Service Site at:

https://emars311.ky.gov/webapp/vssprdonline3111d/AltSelfService

Offerors can search for the solicitation title or number in the keyword search field or filter their search for only awarded solicitations by clicking on “Advanced Search” and changing the status to “awarded.” The award(s) information can be accessed by clicking on the details button of the solicitation and clicking the “Notice of Award” tab. It is the Offeror’s responsibility to review this information in a timely fashion. No other notification of the results of an Award of Contract will be provided to unsuccessful Offerors.

10.10 Beginning of Work

This Contract is not effective and binding until approved by the Secretary of the Finance and Administration Cabinet and filed with the Legislative Research Commission’s Government Contract Review Committee.

The Contractor shall not commence any billable work until a valid Contract has been fully executed. This Contract, including the components referenced in Section 10.20, shall represent the entire agreement between the parties. Prior negotiations, representations, or agreements, either written or oral, between the parties hereto relating to the subject matter hereof shall be of no effect upon this Contract.

10.20 Contract Components and Order of Precedence

The Commonwealth’s acceptance of the Contractor’s offer in response to the Solicitation, indicated by the issuance of a Contract Award, shall create a valid contract between the Parties consisting of the following:

1. Procurement Statutes, Regulations and Policies

2. Any written Agreement between the Parties.

3. Any Addenda to the Solicitation.

4. The Solicitation and all attachments

5. Any Best and Final Offer.

6. Any clarifications concerning the Contractor’s proposal in response to the Solicitation.

7. The Contractor’s proposal in response to the Solicitation.

In the event of any conflict between or among the provisions contained in the Contract, the order of precedence shall be as enumerated above.

10.30 Contract Term and Renewal Option

The initial term of the Contract is anticipated to be from September 01, 2023 through June 30, 2024.

This agreement is not effective until the Secretary of the Finance and Administration Cabinet or his authorized designee has approved the Contract and until the Contract has been filed with the Legislative Research Commission, Government Contract Review Committee.

The Commonwealth reserves the right to renew this contract for up to two (2) additional two (2) year periods.

Renewal shall be subject to prior approval from the Secretary of the Finance and Administration Cabinet, or this authorized designee, and the LRC Government Contract Review Committee in accordance with KRS 45A.695 and KRS 45A.705.

10.40 Changes and Modifications to the Contract

Document Description Page 15 https://emars311.ky.gov/webapp/vssprdonline3111d/AltSelfService

Pursuant to 200 KAR 5:311, no modification or change of any provision in the Contract shall be made, or construed to have been made, unless such modification is mutually agreed to in writing by the Contractor and the Commonwealth, and incorporated as a written amendment by the Kentucky Horse Racing Commission prior to the effective date of such modification or change. Modification shall be subject to prior approval from the Secretary of the Finance and Administration Cabinet, or this authorized designee, and the LRC Government Contract Review Committee. Memoranda of Understanding, written clarification, and/or other correspondence shall not be construed as amendments to the Contract.

10.50 Notices

Unless otherwise instructed, all notices, consents, and other communications required and/or permitted by the Contract shall be in writing. After the award of the Contract, all communications of a contractual or legal nature are to be made to the Agency Contact.

Document Description Page 16

Personal Service Contract Standard Terms and Conditions Revised June 2023

Whereas, the first party, the state agency, has concluded that either state personnel are not available to perform said function, or it would not be feasible to utilize state personnel to perform said function; and Whereas, the second party, the Contractor, is available and qualified to perform such function; and Whereas, for the abovementioned reasons, the state agency desires to avail itself of the services of the second party;

NOW THEREFORE, the following terms and conditions are applicable to this contract:

1.00 Effective Date

This contract is not effective until the Secretary of the Finance and Administration Cabinet or his authorized designee has approved the contract and until the contract has been submitted to the Legislative Research Commission, Government Contract Review Committee (“LRC”). However, in accordance with KRS 45A.700, contracts in aggregate amounts of $10,000 or less are exempt from review by the committee and need only be filed with the committee within 30 days of their effective date for informational purposes.

KRS 45A.695(7) provides that payments on personal service contracts and memoranda of agreement shall not be authorized for services rendered after government contract review committee disapproval, unless the decision of the committee is overridden by the Secretary of the Finance and Administration Cabinet or agency head, if the agency has been granted delegation authority by the Secretary.

2.00 Renewals

Upon expiration of the initial term, the contract may be renewed in accordance with the terms and conditions in the original solicitation. Renewal shall be subject to prior approval from the Secretary of the Finance and Administration Cabinet or his authorized designee and the LRC Government Contract Review Committee in accordance with KRS 45A.695 and KRS 45A.705, and contingent upon available funding.

3.00 LRC Policies

Pursuant to KRS 45A.725, LRC has established policies which govern rates payable for certain professional services. These are located on the LRC webpage https://apps.legislature.ky.gov/moreinfo/ Contracts/homepage.html and would impact any contract established under KRS 45A.690 et seq., where applicable.

4.00 Choice of Law and Forum

This contract shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky. Any action brought against the Commonwealth on the contract, including but not limited to actions either for breach of contract or for enforcement of the contract, shall be brought in Franklin Circuit Court, Franklin County, Kentucky in accordance with KRS 45A.245.

5.00 EEO Requirements

The Equal Employment Opportunity Act of 1978 applies to All State government projects with an estimated value exceeding $500,000. The contractor shall comply with all terms and conditions of the Act.

6.00 Cancellation

The Commonwealth shall have the right to terminate and cancel this contract at any time not to exceed thirty (30) days' written notice served on the Contractor by registered or certified mail.

7.00 Funding Out Provision

The state agency may terminate this contract if funds are not appropriated to the contracting agency or are not otherwise available for the purpose of making payments without incurring any obligation for payment after the date of termination, regardless of the terms of the contract. The state agency shall provide the Contractor thirty (30) calendar days’ written notice of termination of the contract due to lack of available funding.

Document Description Page 17

2400000010 Compliance and Integrity Services https://apps.legislature.ky.gov/moreinfo/Contracts/homepage.html

8.00 Reduction in Contract Worker Hours

The Kentucky General Assembly may allow for a reduction in contract worker hours in conjunction with a budget balancing measure for some professional and non-professional service contracts. If under such authority the agency is required by Executive Order or otherwise to reduce contract hours, the agreement will be reduced by the amount specified in that document. If the contract funding is reduced, then the scope of work related to the contract may also be reduced commensurate with the reduction in funding. This reduction of the scope shall be agreeable to both parties and shall not be considered a breach of contract.

9.00 Authorized to do Business in Kentucky

The Contractor affirms that it is properly authorized under the laws of the Commonwealth of Kentucky to conduct business in this state and will remain in good standing to do business in the Commonwealth of Kentucky for the duration of any contract awarded.

The Contractor shall maintain certification of authority to conduct business in the Commonwealth of Kentucky during the term of this contract. Such registration is obtained from the Secretary of State, who will also provide the certification thereof.

Registration with the Secretary of State by a Foreign Entity Pursuant to KRS 45A.480(1)(b), an agency, department, office, or political subdivision of the Commonwealth of Kentucky shall not award a state contract to a person that is a foreign entity required by KRS 14A.9-010: to obtain a certificate of authority to transact business in the Commonwealth (“certificate”) from the Secretary of State under KRS 14A.9-030:

https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40424 therefore, foreign entities should submit a copy of their certificate with their solicitation response.

If the foreign entity is not required to obtain a certificate as provided in KRS 14A.9-010: https:// apps.legislature.ky.gov/law/statutes/statute.aspx?id=44318 , the foreign entity should identify the applicable exception in its solicitation response. Foreign entity is defined within KRS 14A.1-070:

https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50474

Businesses can register with the Secretary of State at:.

https://www.sos.ky.gov/bus/business-filings/Pages/default.aspx

10.00 Invoices for fees

The Contractor shall maintain supporting documents to substantiate invoices and shall furnish same if required by state government. The invoice must conform to the method described in Section V of this contract.

Pursuant to KRS 45A.695, no payment shall be made on any personal service contract unless the individual, firm, partnership, or corporation awarded the personal service contract submits its invoice for payment on a form established by the committee.

*Invoice form is available on the Legislative Research Commission, Government Contract Review Committee website: https://apps.legislature.ky.gov/moreinfo/Contracts/homepage.html

11.00 Travel expenses, if authorized

The Contractor shall be paid for no travel expenses unless and except as specifically authorized by the specifications of this contract or authorized in advance and in writing by the Commonwealth. The Contractor shall maintain supporting documents that substantiate every claim for expenses and shall furnish same if requested by the Commonwealth.

12.00 Other expenses, if authorized herein

Document Description Page 18

2400000010 Compliance and Integrity Services https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40424 https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44318 https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44318 https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50474 https://www.sos.ky.gov/bus/business-filings/Pages/default.aspx

The Contractor shall be reimbursed for no other expenses of any kind, unless and except as specifically authorized within the specifications of this contract or authorized in advance and in writing by the Commonwealth.

If the reimbursement of such expenses is authorized, the reimbursement shall be only on an out-of-pocket basis. Request for payment of same shall be processed upon receipt from the Contractor of valid, itemized statements submitted periodically for payment at the time any fees are due. The Contractor shall maintain supporting documents that substantiate every claim for expenses and shall furnish same if requested by the Commonwealth.

13.00 Purchasing and specifications

The Contractor certifies that he/she will not attempt in any manner to influence any specifications to be restrictive in any way or respect nor will he/she attempt in any way to influence any purchasing of services, commodities or equipment by the Commonwealth of Kentucky. For the purpose of this paragraph and the following paragraph that pertains to conflict-of interest laws and principles, "he/she" is construed to mean "they" if more than one person is involved and if a firm, partnership, corporation, or other organization is involved, then "he/she" is construed to mean any person with an interest therein.

14.00 Conflict-of-interest laws and principles

The Contractor certifies that he/she is legally entitled to enter into this contract with the Commonwealth of Kentucky, and by holding and performing this contract, he/she will not be violating either any conflict of interest statute (KRS 45A.330-45A.340, 45A.990, 164.390), or KRS 11A.040 of the executive branch code of ethics, relating to the employment of former public servants.

15.00 Campaign finance

The Contractor certifies that neither he/she nor any member of his/her immediate family having an interest of 10% or more in any business entity involved in the performance of this contract, has contributed more than the amount specified in KRS 121.056(2), to the campaign of the gubernatorial candidate elected at the election last preceding the date of this contract. The Contractor further swears under the penalty of perjury, as provided by KRS 523.020, that neither he/she nor the company which he/she represents, has knowingly violated any provisions of the campaign finance laws of the Commonwealth, and that the award of a contract to him/her or the company which he/she represents will not violate any provisions of the campaign finance laws of the Commonwealth.

16.00 Access to Records

The state agency certifies that it is in compliance with the provisions of KRS 45A.695, "Access to contractor's…