Final_RFP_627_2500000260_2_SO_FORM.PDF

Document ID: RFP 627 2500000260 Page: 1

Commonwealth of Kentucky

SOLICITATION MODIFICATION

Modification: Yes Version #: 2

TITLE: TAK-PSC-Audit and Consultation Services

Date Issued:

04/07/2025 Record Date:

04/04/2025

Solicitation Closes Date:

04/16/2025 Time:

14:00

Solicitation No:

RFP 627 2500000260

Reason for Modification

April 3, 2025 Addendum One (1)

Modification to respond to vendor questions.

Online Bidding Prohibited: No For Information Call:

Reba Lewis 502-564-1971

Bid Receiving Location:

Bid Receiving

See Terms & Conditions for Bid Submission Instructions

Other KY

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 627 2500000260 Page: 2

Line Items

Commodity Group: Default

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

1 Audit and Consultation Services

Comm Code Comm Description Manufacturer Model # Manuf Part #

94631PS PSC-Certified Public Accountant (CPA) Services

Extended Description The Turnpike Authority of Kentucky (TAK) is required by Article VII of the Trust Indentures of the various bond issues, at the close of each Fiscal Year, to cause an audit to be made of the funds and accounts pledged to payment of outstanding bonds.

The awarded offeror will perform auditing services of financial statements for TAK that may include completion of the Closing Package Forms to be submitted to the Finance and Administration Cabinet as well as a reconciliation of the information reported on the forms to the audited financial statements. The auditing services shall be conducted in accordance with the provisions provided by the Auditor of Public Accounts, Commonwealth of Kentucky. In conjunction with the auditing services, the TAK may require consultation with regard to bond refunding, new issues and responses to the Finance and Administration Cabinet and State Auditor. Examples of recent audits and financial statements can be found at https://finance.ky.gov/services/ ofm/Pages/TurnpikeAuthority.aspx.

Shipping Information Finance - Office of Financial Management

200 Mero St, 5th Floor

Frankfort KY 40622

Billing Information Various Billing

See Extended Description

Various KY

Document ID: RFP 627 2500000260 Page: 3

Submission Checklist

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

Item

April 3, 2025 Addendum One (1)

Modification to respond to vendor questions.

Question When will the Authority be closed for FY 25 and information available for audit?

Commonwealth Response FY25 cash-basis will be closed by July 18, 2025. Accrual entries will be posted by August 1, 2025. Draft statements with accompanying notes will be available by August 15, 2025.

Question What has been the historical timeframe for planning and final fieldwork?

Commonwealth Response Historically, the Authority has met the timeline outlined in the answer to question 1.

Question Is the Authority open to planning and interim fieldwork conducted prior to fiscal year end?

Commonwealth Response Yes.

Question Were there any new bond issuances or refundings in FY 25?

Commonwealth Response Two Authority refundings occurred, or will occur, in FY 25. TAK 2024 Series A, dated July 9, 2024, refunded the 2010 Series B bonds. TAK 2025 Series A, dated April 2, 2025, will refund certain of the 2015 Series A bonds.

Question Can you provide the prior year’s closing package?

Commonwealth Response Prior Year closing package was not required. Audited statements with accompanying notes sufficed. Authority does not anticipate deviation from this practice.

Question Can you provide the prior year’s governance letter?

Commonwealth Response Yes, attached.

Question Section 2.00 Scope of Work states, “If the Contractor does not provide all work products within the required time frame, the fees for service will be reduced by 25%. There may be certain instances where it is necessary to seek an extension, particularly if a firm is “new” to the engagement – will the final contract allow for extensions? Will the final contract include

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2500000260 Final TAK-PSC-Audit and Consultation Services Total Pages: 26 language that specifies that imposition of a penalty is dependent on the Turnpike Authority fully providing requested audit evidence in a timely manner?

Commonwealth Response Extensions will be allowable when agreed upon by both parties without penalty to the audit firm.

Final contract language will specify the penalty will not be imposed if the Authority does not provide audit evidence in a timely manner.

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

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_____ 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

Finance and Administration Cabinet/Turnpike Authority of Kentucky (TAK) Audit and Consultation Services

RFP 627 2500000260

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, Finance and Administration Cabinet, Turnpike Authority of Kentucky.

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

Finance and Administration Cabinet (FAC), Turnpike Authority of Kentucky (TAK) is required by Article VII of the Trust Indentures of the various bond issues, at the close of each Fiscal Year, to cause an audit to be made of the funds and accounts pledged to payment of outstanding bonds.

2.00 Scope of Work

The Contractor will perform auditing services of financial statements for TAK that may include completion of the Closing Package Forms to be submitted to the Finance and Administration Cabinet as well as a reconciliation of the information reported on the forms to the audited financial statements. The auditing services shall be conducted in accordance with the provisions provided by the Auditor of Public Accounts (APA), Commonwealth of Kentucky. In conjunction with the

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2500000260 Final TAK-PSC-Audit and Consultation Services Total Pages: 26 https://www.merriam-webster.com/dictionary/seal https://www.merriam-webster.com/dictionary/seal auditing services, the TAK may require consultation with regard to bond refunding, new issues and responses to the FAC and State Auditor. Examples of recent audits and financial statements can be found at https://finance.ky.gov/office-of-the-controller/office-of-financial-management/Pages/ turnpike-authority-of-kentucky.aspx.

The following provisions are required for audits performed in connection with the Annual

Comprehensive Financial Report (ACFR):

1. The scope of the audit shall be a financial statement audit of TAK to be performed in accordance with auditing standards generally accepted in the United States of America;

and the standards applicable to financial audits contained in Government Auditing Standards (GAGAS), issued by the Comptroller General of the United States. This audit should include a determination as to whether TAK federal expenditures have met the Single Audit threshold established by the Single Audit Act and the provisions of 2 CFR 200 Uniform Administrative Requirements, Cost Principles, And Audit Requirements for Federal Awards, and the performance of a single audit in accordance with these standards, if required. To facilitate the compilation of the Commonwealth’s ACFR:

# All statements of cash flows should be prepared in the direct method format:

# All infrastructure should be recorded on the modified approach; and # Component auditors must provide the APA, as the group auditor of the

Commonwealth’s ACFR, information it has deemed necessary to meet relevant auditing standards for group audits. This includes information contained below in the section entitled “Required Contractor Correspondence with the APA”, as well as subsequent requests made directly from the APA to the Contractor.

2. The scope shall also include updated subsequent events procedures for the period from the date of the Contractor’s report on TAK’s financial statements until December 13, 2025, or a later date as determined by the APA, for consideration of any additional disclosures warranted for the ACFR. The Contractor shall detail the application of subsequent events audit procedures and report the results of those procedures in a letter that shall be issued to the APA no later than close of business, December 13, 2025, or a later date as determined by the APA.

The APA is required to be in direct communication with the TAK auditor as required for the group audit of the ACFR. The following correspondence will be necessary:

1. The FAC intends to issue the Commonwealth’s ACFR by December 12, 2025. If this does not occur, it may be necessary for your auditor to extend the subsequent events procedures through a later date. The APA will contact you or your auditor if this extension of procedures becomes necessary. The audit contract should provide for this contingency and address whether and how your auditor will be compensated for this additional work.

2. Your auditor shall notify our office whenever matters, which may have a significant impact on the Commonwealth’s financial statements, come to his/her attention. Your auditor shall be available to the APA to address questions about TAK’s financial statements.

3. Please provide the following items, in either hard copy or electronic format, to the APA no later than the date specified below: (APA contact information is presented below):

a. Correspondence from your Certified Public Accountant (CPA) firm identifying that the APA will be able to be involved in the work of the TAK’s CPA and whether the APA (as the group engagement team) will be able to obtain information affecting the consolidation process:

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2500000260 Final TAK-PSC-Audit and Consultation Services Total Pages: 26 https://finance.ky.gov/office-of-the-controller/office-of-financial-management/Pages/turnpike-authority-of-kentucky.aspx https://finance.ky.gov/office-of-the-controller/office-of-financial-management/Pages/turnpike-authority-of-kentucky.aspx

Provide by: July 15, 2025

b. An auditor representation letter stating the auditor is in compliance with generally accepted auditing standards and Government Auditing Standards concerning continuing education requirements, independence, maintaining an internal quality control system and other peer review requirements. The representation letter should include the following language relating to independence:

In all matters relating to the audit of the Finance and Administration Cabinet (FAC) /Turnpike Authority of Kentucky (TAK). as of and for the year ended June 30, 2025, our audit organization and our individual auditors, whether government or public, were independent both in mind and appearance.

c. A copy of the CPA firm’s most recent peer review, including any letter of comment, if applicable;

d. Audited financial statements and an opinion on them;

Provide by: October 3, 2025

e. A report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards;

f. A copy of the letter to those charged with governance and/or management letter when applicable.

4. If the reports due October 3, 2025, are delayed for any reason, notification should be sent to FAC on or before that date with reasons for the delay and the expected timeframe for completion.

5. The APA shall be permitted to examine and copy all working papers and audit programs prepared as part of the audit process, if necessary.

6. The CPA firm is not required to, although it may do so at the request of the agency, issue a separate report on the agency’s closing package submitted to the FAC. The CPA is strongly encouraged to perform appropriate procedures to ensure the closing package accurately classifies financial information since the closing package is used to reformat the audited financial statements for presentation in the Commonwealth’s ACFR. However, the closing package is not required to be presented as supplementary information in the report on the financial statements for FY 2025.

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7. The Finance and Administration Cabinet (FAC) /Turnpike Authority of Kentucky (TAK).

is not required to submit its single audit report or the Data Collection Form to the APA for FY 2025. This form is the responsibility of TAK and is not filed by our office. Please contact your CPA to ensure the timely submission of this form.

If the Contractor does not provide all work products within the required time frame, the fees for service will be reduced by 25%.

3.00 Evaluation Criteria

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

TAK reserves the right to reject all proposals.

TAK 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.

TAK 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

Must be a Certified Public Accounting Firm licensed to practice in the Commonwealth of Kentucky and shall provide a print-out of the individual Licensee Search or Firm Verification screen from the Kentucky Board of Accountancy website https://cpa.ky.gov/Pages/Consumer- Guide.aspx. Offerors whom fail to meet this requirement shall be considered non-responsive and disqualified.

PASS/FAIL

Experience - Provide a detailed description of your firm’s experience in auditing comparable bond issues and attendant investment schedules;

experience with computerized bookkeeping systems; experience with Commonwealth of Kentucky Closing Package Forms; and

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2500000260 Final TAK-PSC-Audit and Consultation Services Total Pages: 26 https://cpa.ky.gov/Pages/Consumer-Guide.aspx https://cpa.ky.gov/Pages/Consumer-Guide.aspx consultation as specified in the Scope of Work section Staff Qualifications and Expertise - Provide resumes for all personnel proposed for assignment to the project, detailing their educational qualifications and previous work assignments.

Work Plan/Audit Approach - Provide a detailed description of the audit approach your firm will use in providing the requested services. This description should include but not be limited to:

1. Setting audit objectives

2. Audit planning and analytical procedures

3. Establishing materiality levels

4. Studying the internal control structure and assessing control risk

5. Developing the audit plan and audit program.

The audit plan should include a timeline that describes the start and end of the planning period; field work with detailed steps including receipts, payables, and liabilities;

completion of the audit; and anticipated deliverable dates for TAK to submit materials to the firm.

6. Sampling techniques: tests of transactions and tests of details of account balances

7. Documenting and collecting evidence

8. Testing electronic data processing (EDP) general and application controls

9. Developing audit reports

In addition, the firm should provide a description of any other area or unique feature of the approach that would benefit the audit and ultimately the statewide audit as conducted by the APA.

Location and Availability - Provide a list of the location of the principal place of business and any branch offices, if applicable.

Maximum Points Possible 800

Cost Proposal Evaluation

Criteria Maximum Points Possible Pricing Schedule Form - The Offeror shall submit their cost proposal on the attached pricing schedule form (Attachment A).

Maximum Points Possible 100

Oral Demonstration/Presentation Evaluation, if required

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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

Total Proposal Evaluation

Technical Proposal 800

Cost Proposal 100

Oral Demonstrations/Presentations, if required 100

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 03/19/25

Written Questions due by: 2:00 PM 03/26/25

Anticipated Commonwealth Response to Written Questions 04/09/25

Proposals Due by: 2:00 PM 04/16/25

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

5.00 Offeror’s Conference

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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:

Reba Lewis

200 Mero Street, 5th Floor Frankfort, KY 40622 Phone: (502) 564-1971 Reba.Lewis@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

Electronic Proposals

Proposals shall be received by electronic submission in the eProcurement system, Kentucky Vendor Self Service System.

An electronic proposal shall be authorized by the proper agent of the firm by the act of submitting it electronically through the eProcurement system.

Proposal information MUST be completed online. Response must contain all required information for the Solicitation. All bidders MUST be registered in the Commonwealth eProcurement System via the Vendor Self Service System at https://vss.ky.gov .

Allow 24 – 48 hours to complete Vendor Registration. Vendors must be logged in to their Vendor Self Service (VSS) account in order to submit a response. Registrations completed the day of bid closing must be completed by the Vendor in the VSS portal. The Customer Resource Center is not able to complete registrations and activate accounts on the same day. Closing dates will not be extended for Vendors not registered by the date/time of the bid closing.

All bidders are cautioned to begin their electronic submission in sufficient time to complete before the closing date and time. Delays due to technical difficulties or document upload impediments shall not be justification for acceptance of a late bid or proposal. Vendor attention to this advisory is encouraged. Instructions “How to Submit an Online Response for a Business Opportunity” are posted to Kentucky’s Vendor Self Service, https://vss.ky.gov . If you need assistance, please contact the Customer Resource Center (CRC) by email at Finance.CRCGroup@ky.gov or phone 502-564-9641 or toll-free 877-973-HELP (4357).

Proposals shall be submitted in three (3) parts: The Technical Proposal, the Cost Proposal, and Proprietary Information. Each part shall consist of one document attachment. Do not

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2500000260 Final TAK-PSC-Audit and Consultation Services Total Pages: 26 mailto:Reba.Lewis@KY.GOV https://vss.ky.gov https://vss.ky.gov mailto:Finance.CRCGroup@ky.gov submit multiple document attachments as Technical, Cost or Proprietary. All files shall be labeled accordingly. Attachments may not exceed 65,000 KB.

Proposals submitted online must be in an “Accepted” status and shall be assigned a date and time stamp from the eProcurement system at the time of final acceptance and formal submission by the vendor. The system will not allow submission of an online proposal after the published date and time for closing.

A proposal may be modified or withdrawn by electronic or written notice ONLY if received prior to the bid closing date and time. An electronic offer may be modified by applying the appropriate electronic signature and following the procedure in the state’s eProcurement signature.

8.10 Format of Response

Electronic Proposals

Proposals shall be submitted in three (3) parts: the Technical Proposal, the Cost Proposal, and Proprietary Information. Each part shall consist of one document. Do not submit multiple documents as Technical, Cost or Proprietary.

1. Proposals must be submitted electronically in the eProcurement System, Kentucky Vendor Self Service site.

a. The Technical Proposal shall be submitted on one (1) document marked Technical (in Microsoft Word, Microsoft Excel or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos. The document should be named in the following manner: Technical – Name of offeror RFP number

b. The Cost Proposal shall be submitted on one (1) document marked Cost (in Microsoft Word, Microsoft Excel or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos. The document should be named in the following manner: Cost – Name of offeror RFP number

c. Any Proprietary Information shall be submitted on one (1) document marked Proprietary (in Microsoft Word, Microsoft Excel or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos. The document should be named in the following manner: Proprietary – Name of offeror RFP number

All proposals must be received no later than 2:00 PM, April 16, 2025.

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.

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8.20 Format of Technical Proposal

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

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:

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2500000260 Final TAK-PSC-Audit and Consultation Services Total Pages: 26 https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx 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.

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 Turnpike Authority of Kentucky 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 Turnpike Authority of Kentucky 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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2500000260 Final TAK-PSC-Audit and Consultation Services Total Pages: 26 https://finance.ky.gov/eProcurement/Pages/doing-business-with-the-commonwealth.aspx

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 Finance and Administration Cabinet/Turnpike Authority of Kentucky shall not disclose any portions of the proposals prior to contract award to anyone outside the Finance and Administration Cabinet/Turnpike Authority of Kentucky, 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 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).

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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 Turnpike Authority of Kentucky 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 Turnpike Authority of Kentucky 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 Turnpike Authority of Kentucky 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.

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://vss.ky.gov

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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

The initial term of the Contract is anticipated to be from July 1, 2025 through June 30, 2026.

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

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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 Turnpike Authority of Kentucky. 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.

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Personal Service Contract Standard Terms and Conditions Revised August 2024

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.

The vendor shall be paid, upon the submission of proper invoices to the receiving agency at the prices stipulated for the supplies delivered and accepted, or services rendered. Unless otherwise specified, payment will not be made for partial deliveries accepted. Payments will be made within thirty (30) working days after receipt of goods or a vendor’s invoice in accordance with KRS 45.453 and KRS 45.454.

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.

Document Phase Document Description Page 20 https://apps.legislature.ky.gov/moreinfo/Contracts/homepage.html

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.

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

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2500000260 Final TAK-PSC-Audit and Consultation Services Total Pages: 26 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=50474 https://www.sos.ky.gov/bus/business-filings/Pages/default.aspx

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

The Contractor shall be reimbursed for no other expenses…