MDL FAMLI - RFP - Financial Management and Accounting Support LABOR-FY2024-012.pdf

STATE OF MARYLAND

DEPARTMENT OF LABOR (MDOL)

REQUEST FOR PROPOSALS (RFP)

FAMLI - FINANCIAL MANAGEMENT & ACCOUNTING

SUPPORT

RFP NUMBER LABOR-FY2024-012

ISSUE DATE: MAY 13, 2024

NOTICE

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

(eMMA) https://procurement.maryland.gov should register on eMMA. See Section 4.2.

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO

RESPOND TO THIS SOLICITATION.

FAMLI – Financial Management & Accounting Support Solicitation #: LABOR-FY2024-012 RFP Document

RFP for Department of Labor Page ii of 111

VENDOR FEEDBACK FORM

To help us improve the quality of State solicitations, and to make our procurement process more responsive and business friendly, please provide comments and suggestions regarding this solicitation.

Please return your comments with your response. If you have chosen not to respond to this solicitation, please email or fax this completed form to the attention of the Procurement Officer (see Key Information Summary Sheet below for contact information).

Title: FAMLI - FINANCIAL MANAGEMENT & ACCOUNTING SUPPORT Solicitation No: LABOR-FY2024-012

1. If you have chosen not to respond to this solicitation, please indicate the reason(s) below:

� Other commitments preclude our participation at this time

� The subject of the solicitation is not something we ordinarily provide

� We are inexperienced in the work/commodities required

� Specifications are unclear, too restrictive, etc. (Explain in REMARKS section)

� The scope of work is beyond our present capacity

� Doing business with the State is simply too complicated. (Explain in REMARKS section)

� We cannot be competitive. (Explain in REMARKS section)

� Time allotted for completion of the Proposal is insufficient

� Start-up time is insufficient

� Bonding/Insurance requirements are restrictive (Explain in REMARKS section)

� Proposal requirements (other than specifications) are unreasonable or too risky (Explain in REMARKS section)

� MBE or VSBE requirements (Explain in REMARKS section)

� Prior State of Maryland contract experience was unprofitable or otherwise unsatisfactory.

(Explain in REMARKS section)

� Payment schedule too slow

� Other: __________________________________________________________________

2. If you have submitted a response to this solicitation, but wish to offer suggestions or express concerns, please use the REMARKS section below. (Attach additional pages as needed.)

REMARKS:

Vendor Name: ________________________________ Date: _______________________

Contact Person: _________________________________ Phone (____) _____ - _________________

Address: ______________________________________________________________________

E-mail Address: ________________________________________________________________

RFP for Department of Labor Page iii of 111

STATE OF MARYLAND

DEPARTMENT OF LABORMDOL

KEY INFORMATION SUMMARY SHEET

Request for Proposals Services- FAMLI – Financial Management & Accounting Support

Solicitation Number: LABOR-FY2024-012

RFP Issue Date: May 13, 2024

RFP Issuing Office: Department of Labor (MDOL)

Procurement Officer: Shenika Dyson e-mail:

Office Phone:

Shenika.dyson1@maryland.gov (410)767-2874 1100 N. Eutaw St.

Baltimore, MD 21201

Proposals are to be sent to: submit Via eMMA

Pre-Proposal Conference:

May 23, 2024 11:00 AM Local Time via Google Meet See Attachment A for directions and instructions.

Questions Due Date and Time May 27, 2024, 2:00 PM Local Time

Proposal Due (Closing) Date and Time:

June 3, 2024 4:00 PM Local Time Offerors are reminded that a completed Feedback Form is requested if a no-bid decision is made (see page ii).

MBE Subcontracting Goal: 20%

VSBE Subcontracting Goal: 5%

Contract Type: Firm Fixed Price

Contract Duration: Three (3) years base period with one (1) option period

Primary Place of Performance:

As proposed by Offeror

SBR Designation: No

Federal Funding: No

RFP for Department of Labor Page iv of 111

TABLE OF CONTENTS – RFP

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.2 Background, Purpose and Goals

2.3 Scope of Work - Requirements

3 Contractor Requirements: General

3.1 Contract Initiation Requirements

3.2 End of Contract Transition

3.3 Invoicing

3.4 Liquidated Damages

3.5 Disaster Recovery and Data

3.6 Insurance Requirements

3.7 Security Requirements

3.8 Problem Escalation Procedure

3.9 SOC 2 Type 2 Audit Report

3.10 Experience and Personnel

3.11 Substitution of Personnel

3.12 Minority Business Enterprise (MBE) Reports

3.13 Veteran Small Business Enterprise (VSBE) Reports

3.14 Work Orders

3.15 Additional Clauses

4 Procurement Instructions

4.1 Pre-Proposal Conference

4.2 eMaryland Marketplace Advantage (eMMA)

4.3 Questions

4.4 Procurement Method

4.5 Proposal Due (Closing) Date and Time

4.6 Multiple or Alternate Proposals

4.7 Economy of Preparation

4.8 Public Information Act Notice

4.9 Award Basis

RFP for Department of Labor Page v of 111

4.10 Oral Presentation

4.11 Duration of Proposal

4.12 Revisions to the RFP

4.13 Cancellations

4.14 Incurred Expenses

4.15 Protest/Disputes

4.16 Offeror Responsibilities

4.17 Acceptance of Terms and Conditions

4.18 Proposal Affidavit

4.19 Contract Affidavit

4.20 Compliance with Laws/Arrearages

4.21 Verification of Registration and Tax Payment

4.22 False Statements

4.23 Payments by Electronic Funds Transfer

4.24 Prompt Payment Policy

4.25 Electronic Procurements Authorized

4.26 MBE Participation Goal

4.27 VSBE Goal

4.28 Living Wage Requirements

4.29 Federal Funding Acknowledgement

4.30 Conflict of Interest Affidavit and Disclosure

4.31 Non-Disclosure Agreement

4.32 HIPAA - Business Associate Agreement

4.33 Nonvisual Access

4.34 Mercury and Products That Contain Mercury

4.35 Location of the Performance of Services Disclosure

4.36 Department of Human Services (DHS) Hiring Agreement

4.37 Small Business Reserve (SBR) Procurement

4.38 Maryland Healthy Working Families Act Requirements

5 Proposal Format

5.1 Two Part Submission

5.2 Proposal Delivery and Packaging

5.3 Volume I - Technical Proposal

5.4 Volume II – Financial Proposal

RFP for Department of Labor Page vi of 111

6 Evaluation and Selection Process

6.1 Evaluation Committee

6.2 Technical Proposal Evaluation Criteria

6.3 Financial Proposal Evaluation Criteria

6.4 Reciprocal Preference

6.5 Selection Procedures

6.6 Documents Required upon Notice of Recommendation for Contract Award

7 RFP ATTACHMENTS AND APPENDICES

Attachment A. Pre-Proposal Conference Response Form

Attachment B. Financial Proposal Instructions & Form

Attachment C. Proposal Affidavit

Attachment D. Minority Business Enterprise (MBE) Forms

Attachment E. Veteran-Owned Small Business Enterprise (VSBE) Forms

Attachment F. Maryland Living Wage Affidavit of Agreement for Service Contracts

Attachment G. Federal Funds Attachments

Attachment H. Conflict of Interest Affidavit and Disclosure

Attachment I. Non-Disclosure Agreement (Contractor)

Attachment J. HIPAA Business Associate Agreement

Attachment K. Mercury Affidavit

Attachment L. Location of the Performance of Services Disclosure

Attachment M. Contract

Attachment N. Contract Affidavit

Attachment O. DHS Hiring Agreement

Appendix 1. – Abbreviations and Definitions

Appendix 2. Offeror Information Sheet

EXHIBIT 1: MBE, VSBE, and (if applicable) SBR Research Factors

RFP for Department of Labor Page 1 of 111

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

There are no Offeror Minimum Qualifications for this procurement.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

RFP for Department of Labor Page 2 of 111

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.1.1. The Maryland Department of Labor (MDOL) Family and Medical Leave Insurance

Division (FAMLI) is issuing this Request for Proposals (RFP) in order to secure the financial management and accounting support services.

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

2.1.3. MDOL intends to make a single award as a result of this RFP. See RFP Section 4.9 Award Basis for more Contract award information.

2.1.4. An Offeror, either directly or through its subcontractor(s), must be able to provide all goods and services and meet all of the requirements requested in this solicitation and the successful Offeror (the Contractor) shall remain responsible for Contract performance regardless of subcontractor participation in the work.

2.2 Background, Purpose and Goals

2.2.1 Background: Origin and Purpose of FAMLI

A. MDOL connects Marylanders to good jobs, protects workers and consumers, and supports Maryland businesses, fostering economic growth and competitiveness. MDOL strives to create an equitable and inclusive Maryland where all residents have the opportunities and resources to attain financial stability, reach their career potential, and contribute to their communities;

where businesses have access to capital and the skilled workforce they need to succeed; where workplaces are safe and well-regulated; and where the economy is resilient and growing.

B. MDOL has been tasked with implementing a new paid family and medical leave program for the State of Maryland, FAMLI. The digitally-native program will ensure that all private-sector, state, and local workers in the state receive wage replacement during periods of missed work due to qualifying events. Qualifying events include the worker’s own serious health condition, a serious health condition of a family member, the birth of a child, and military exigency events.

C. Ten states — California, Colorado, Connecticut, the District of Columbia, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Washington

— have similar active paid leave programs. Three additional programs — those in Delaware, Maine, and Minnesota — are in the process of implementation. The Maryland General Assembly passed the Time to Care Act in 2022 (SB 275), which established the general parameters for the FAMLI program. In 2023, the General Assembly passed Senate Bill 828, which made modifications to the original authorizing legislation. Additional information about FAMLI is available at paidleave.maryland.gov.

2.2.2 Background: FAMLI Implementation Timeline and Scale of Financial Operations

A. FAMLI is funded through mandatory premium contributions to the State Plan from approximately 180,000 employers in Maryland. Employers have the option to obtain alternative paid family and medical leave insurance coverage

RFP for Department of Labor Page 3 of 111 through self-insurance or equivalent commercially available insurance.

Securing alternative coverage exempts employers from the requirement to remit mandatory premiums to the state.

B. Employers choosing the State Plan as their FAMLI coverage option will be subject to mandatory premium contribution assessments. The current published contribution rate is 0.9% of covered wages up to the Social Security Wage Base. Employers are permitted to withhold up to half of this amount (0.45%) from the pay of their employees. On July 1, 2025, employers who choose the State Plan as their FAMLI coverage provider will begin mandatory payroll deductions from their employees. By the end of October 2025, employers will remit mandatory premium contributions to FAMLI. It is anticipated that annual revenue from mandatory contributions will approach or exceed $2 billion. Therefore, FAMLI must have the financial procedures and accounting controls in place by October 2025 to receive $500 million in contributions from employers due for the quarter ending September 30, 2025.

C. On July 1, 2026, FAMLI expects to begin to pay benefits to workers.

Approximately 2.6 million workers are covered by the FAMLI program. It is expected that in the first year 170,000 workers may file FAMLI claims.

Annual benefit payments from FAMLI may exceed $1.6 billion.

2.2.3 Background: Unrelated, Concurrent FAMLI Procurements

A. FAMLI is, independently of this RFP, procuring human-centered design and Agile web development services. Those services are needed to develop the information technology (IT) solution that will allow FAMLI to launch and operate Maryland’s paid family and medical leave program. This IT solution will include a public-facing web portal for employees to submit claims, a public-facing web portal for employers to submit mandatory quarterly contributions and data, and the back-end system needed for FAMLI staff to adjudicate claims, pay benefits, and ensure employer compliance.

B. The services that FAMLI is procuring from this RFP will not include the development of any IT solutions, including the aforementioned public-facing and adjudicator-facing IT solutions.

C. However, an important part of this RFP does include the requirement for the vendor to deliver recommendations to FAMLI on backend software-as-a-service (SaaS) accounting software that will meet FAMLI’s financial and accounting needs. This RFP does not include actually provisioning this SaaS software; it only includes making recommendations on the SaaS solution FAMLI should pursue.

2.2.4 Purpose: FAMLI’s Need for Strong Financial Management and Accounting Processes and Controls.

The FAMLI program is expected to receive up to $2 billion in payments from approximately 180,000 employers per year and pay out nearly that amount in direct payments to approximately 170,000 Maryland workers each year. The primary financial mechanism facilitating these transactions consists of a revolving, non-lapsing trust fund into which mandatory premium payments from employers are deposited and from which payments to workers are debited. The trust fund is essentially a bank account, or a series of bank accounts, serviced by one or more private financial institutions. In order to uphold public trust in the program, it is

RFP for Department of Labor Page 4 of 111 imperative that MDOL and FAMLI establish strong financial and accounting controls in order to process, track, and report on inflows and outflows of these funds, as well as to prevent all sources of potential misappropriation and fraud, both internal and external.

2.3 Scope of Work - Requirements

2.3.1 FAMLI is soliciting from qualified Offerors proposals to be the Prime Contractor on the FAMLI

Division’s Financial Management and Accounting Support contract. The FAMLI Division encourages Offerors to consider establishing strong partnerships with subcontractors who are experts and have experience in specialized areas to ensure that project goals, objectives, and deliverables are achieved. While certain services may be provided by the subcontractor(s), the awarded Prime Contractor ultimately will be responsible for ensuring that all project goals, objectives, and deliverables are met. The FAMLI Division will hold the Prime Contractor responsible for managing, overseeing, and providing all negotiated services and deliverables.

2.3.2 There is no transition-in period contemplated for this contract. The Contractor shall be prepared to start work under this contract on or around the contract start date.

2.3.3 General Requirements

The Scope of Work includes the following requirements that Offerors shall address in their Proposals:

A. Four-Phased Approach

The Contractor shall provide services in four sequential phases as described in the sections below.

Contract Period Project Phase Duration

Base Contract Period

Phase One 1 calendar quarter (91 Days) Phase Two 5 calendar quarters (456

Days) Phase Three 4 calendar quarters (365

Days) Phase Four 2 calendar quarters (183

Days) Total Base Contract 3 years

Option Period Phase Five (365 Days) (4 calendar quarters)

1. Phase One: Development of Implementation Project Plan

A. The objective of Phase One is to develop a comprehensive project plan for the implementation of FAMLI’s financial management and accounting team(s) and functions.

B. Phase One will start on the contract start date, which will extend for approximately one calendar quarter (91 days).

C. By the end of Phase One, the vendor will deliver an implementation project plan to FAMLI for establishing the financial management and accounting organization(s), functions and system(s) necessary for the FAMLI Division to comply with all mandated requirements, financial and accounting best

RFP for Department of Labor Page 5 of 111 practices, and timelines for successfully launching and operating the FAMLI program.

D. Phase One deliverables will include: the Financial Management and Accounting Implementation Project Plan. This implementation project plan must include (but is not limited to) the following phases below:

2. Phase One: Components To Be Included in the Implementation Project Plan

A. Timeline and milestones, linked to meeting FAMLI’s financial and accounting implementation timelines and requirements (see Section 2.2.2)

B. Goals and key project objectives for financial and accounting implementation

C. Key performance indicators (KPIs) and metrics of success for the financial and accounting project implementation effort

D. Detailed project resource plan for implementation

E. Contractor team roles and responsibilities for implementation and relationship to FAMLI team roles and responsibilities

F. Deliverables and success criteria for implementation of FAMLI’s financial and accounting functions

3. Phase One: Topics and Functional Areas to Be Covered By the Implementation Project Plan

A. FAMLI Financial Organization Design, Structure, and Workforce. This section of the implementation project plan should include at a minimum:

i. Discussion of best practices for structuring the type of financial management and accounting organization(s) and roles that the FAMLI Division of MDOL needs to successfully operationalize these functions

ii. Organization design and staffing recommendations, including recommendations for how to best structure and staff teams. Recommendations for staffing levels should include recommendations for minimum viable staffing as well as staffing levels required for optimal performance.

iii. Recommendations for evaluating candidates for team positions, to include required and desired education, years of experience, professional qualifications and certifications, etc.

iv. Recommendations for developing the necessary recruiting plan(s) to recruit viable candidates (i.e., professional job boards, etc.).

v. Recommendations for staff talent management, including formalized career pathways.

vi. Recommendations for talent onboarding and integration plan to ensure that staff understands and believes in FAMLI’s vision and mission, and understands its operations and ways of working.

B. Training. This section of the implementation project plan should include at a minimum:

i. Discussion of best practices for structuring the type of financial management and accounting organization(s) and roles that the FAMLI Division of MDOL needs to successfully operationalize these functions.

RFP for Department of Labor Page 6 of 111

C. Policies, Procedures, and Planning. This section of the implementation project plan should include at a minimum:

i. Identification of the financial management and accounting laws, statutes, regulations, policies, and procedures that pertain to the FAMLI program (including at the federal, Maryland state government, and MDOL levels) and recommendations for the steps necessary for FAMLI to establish and maintain compliance.

ii. Recommendations for the financial management and accounting best practices that the FAMLI Division should follow to be an industry leader in financial management and accounting practices.

iii. Recommendations for the internal financial management and accounting policies and standard operating procedures that FAMLI needs to develop and adopt in order to successfully operate a compliant and well-controlled fiscal operation.

iv. Recommendations for the policies and procedures needed to properly document processes and related workflows in order to promote consistency in operational process execution.

v. Identification of the policies, procedures, and industry best practices that FAMLI should institute to guard against fraud, both internal and external.

vi. Recommendations for developing standard operating procedures to establish a formal process of doing business within the Financial Management and Accounting organization.

vii. Recommendations for maintaining documentation to support audits and increase transparency in how work is being performed.

viii. Recommendations for developing the testing plan(s) needed to validate the effectiveness and accuracy of FAMLI’s financial processes as they are created, including a quality assurance framework to address the discrepancies and issues identified during testing.

D. Internal Controls. This section of the implementation project plan should include at a minimum:

i. Recommendations for the internal controls that FAMLI needs to put into place to be compliant with industry accounting best practices, based on well-established and industry standard framework(s).

ii. Identification of the internal controls mandated by Maryland state statute, code, regulations, and official guidance, including required accounting standards and reporting and disclosure requirements in the State’s annual comprehensive financial reports.

iii. Recommendations for internal controls which will allow FAMLI to respond to audit requests promptly and accurately.

iv. Recommendations for internal controls needed to maintain documentation integrity and establish proper access across FAMLI organizations to foster transparency and collaboration for data validation.

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v. Identification of opportunities to automate and streamline processes and functions within the financial management and accounting system, in order to mitigate risk of human error and/or duplication of effort.

vi. Recommendations for the internal controls, such as segregation of duties, that FAMLI should implement to prevent employee fraud.

E. Information Technology Software and Tools. This section of the implementation project plan should include at a minimum:

i. Identification of the types of IT software and tools that FAMLI should procure and implement to best operate its financial management and accounting functions.

ii. Recommendations for the best-in-class options for each type of required IT software and tool. This software must integrate both FAMLI’s digital products as well as other Maryland State Government systems, when appropriate.

iii. Recommendations and steps for testing and validating the accuracy, reliability, and compliance of the IT accounting software and tools once they are procured and implemented by FAMLI, to evaluate whether the software is performing as expected and required.

F. General Accounting Considerations. This section of the implementation project plan should include at a minimum:

i. Recommendations for designing FAMLI’s Chart of Account, accounting system standard account code classification structure, and periodic/annual reporting framework, in accordance with GAAP, internal controls, state standards, and leading accounting practices.

ii. Recommendations for considering what key aspects of posting logic should be considered so that transactions are processed, classified, and posted to the appropriate general ledger accounts, in support of accurate financial analysis that meet GAAP and regulatory reporting requirements.

iii. Recommendations for what reconciliations and dashboards should be implemented to monitor variances, and quickly identify root cause issues in order to make corrections.

iv. Recommendations for capturing accounting entries and transactions at the necessary level of detail to support a complete and accurate understanding of FAMLI’s current financial state and project a future financial state.

v. Recommendations for the procedures necessary for adjusting entries for monthly, quarterly, and fiscal year-end.

vi. Recommendations for establishing disbursement activities, and accounting and reporting functions associated with the management of transactions dealing with state trust funds, that are compliant with GAAP and state government requirements.

vii. Banking and Related Financial Services. This section of the implementation project plan should include at a minimum:

viii. Recommendations for the type(s), function(s), and organization of bank accounts that FAMLI must procure and maintain to collect contributions and make benefit payments.

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ix. Recommendations for the characteristics that FAMLI should seek and/or expect when procuring banking and related financial services (e.g., interest yield, transaction services, transaction or servicing fee limitations, etc.).

x. Recordkeeping and Reporting. This section of the implementation project plan should include at a minimum:

xi. Recommendations for what and how FAMLI should implement financial and accounting recordkeeping.

xii. Recommendations for the financial and accounting reporting structure (including report type, purpose, frequency, etc.) that FAMLI should produce for both internal operations and for reporting to external leadership and stakeholders, such as general ledger, delinquent debt, and collections activity.

G. Risk Management. This section of the implementation project plan should include at a minimum:

i. Recommendations for developing a comprehensive risk management framework that can be integrated into the implementation of FAMLI’s financial management and accounting program, in order to identify critical risks to successful program implementation and provide opportunities for strategic investment in contingency planning to mitigate these risks.

H. Quality and Performance Management. This section of the implementation project plan should include at a minimum:

i. Recommendations for developing and implementing quality controls and a comprehensive performance management framework, not just for the implementation of FAMLI’s financial management and accounting program, but for its successful ongoing operation.

4. Phase Two: Supporting FAMLI’s Execution of the Implementation Project Plan Through the Start of Contributions Collections

Phase Two will start immediately after the end of Phase One and will have a duration of approximately five calendar quarters (456 days).In Phase Two, the Contractor will provide support to FAMLI staff in executing the Implementation Project Plan developed in Phase One, on a timeline that will allow FAMLI to meet its mandate to start collecting payments from employers on October 1, 2025.

5. Phase Two deliverables will include:

A. Supporting FAMLI staff with the implementation of all aspects of the implementation project plan delivered at the end of Phase One that fall within the time period specified for Phase Two, with the key milestone of beginning to collect mandatory premium contributions during the third quarter of calendar year 2025.

B. Quarterly implementation and readiness status report. At the end of each quarter, the Contractor will deliver a status report on both the progress made that quarter in executing the Implementation Project Plan, and the current readiness of FAMLI’s financial management and accounting organization.

Phase Two readiness status will be framed and measured in terms of FAMLI’s readiness to begin collecting contributions on October 1, 2025, and

RFP for Department of Labor Page 9 of 111 will at a minimum incorporate the topics and functional areas listed in Section 2.3.3.3.

C. Other deliverables as agreed upon by the Contractor and the FAMLI contract manager at the beginning of each quarter in Phase Two.

6. Phase Three: Supporting FAMLI’s Execution of the Implementation Project Plan Through the Start of Benefits Payments

A. Phase Three will start immediately after the end of Phase Two and will have a duration of approximately one year or four calendar quarters (365 days).

Projected timeline for Phase Three is 1/1/2026 - 12/31/2026 (Start of Quarter Three of FY2026 through end of Quarter Two of FY2027).

B. In Phase Three, the Contractor will provide support to FAMLI staff in executing the Implementation Project Plan developed in Phase One, on a timeline that will allow FAMLI to meet its mandate to start paying benefits on July 1, 2026.

C. Phase Three deliverables will include:

ii. Supporting FAMLI with the implementation of all parts of the implementation project plan delivered at the end of Phase One that fall within the time period specified for Phase Three, with the key milestone of beginning to pay benefits from the FAMLI Trust Fund by July 1, 2026.

iii. Quarterly implementation and readiness status report. At the end of each quarter, the Contractor will deliver a status report on both the progress made that quarter in executing the Implementation Project Plan, and the current readiness of FAMLI’s financial management and accounting organization.

Phase Three readiness status will be framed and measured in terms of FAMLI’s readiness to begin paying benefits by July 1, 2026, and will at a minimum incorporate the topics and functional areas listed in Section 2.3.3.3.

iv. Other deliverables as agreed upon by the Contractor and the FAMLI contract manager at the beginning of each quarter in Phase Three.

7. Phase Four: Ongoing Support

A. Phase Four will start immediately after the end of Phase Three and will have a duration of approximately two calendar quarters (183 days).

B. In Phase Four, the Contractor will provide support to FAMLI staff as required to stabilize the FAMLI program and set up the FAMLI program to operate in a financially responsible manner for the long term.

C. Phase Four deliverables will include:

i. Supporting FAMLI with the implementation of all parts of the implementation project plan delivered at the end of Phase One that fall within the time period specified for Phase Four.

ii. Quarterly readiness and stabilization report detailing the progress FAMLI has made in its financial management and accounting functions and the improvements that still need to be made to operate a sustainable and compliant accounting organization.

RFP for Department of Labor Page 10 of 111

iii. Other deliverables as agreed upon by the Contractor and the FAMLI contract manager at the beginning of each quarter in Phase Four.

8. Phase Five: Option Year Ongoing Support

A. If exercised, Phase Five will start immediately after the end of Phase Four and will have a duration of one year or four calendar quarters (365 days).

B. Phase Five deliverables will include:

i. Supporting FAMLI with the implementation of all parts of the implementation project plan delivered at the end of Phase One that fall within the time period specified for Phase Five.

ii. Quarterly readiness and stabilization report detailing the progress FAMLI has made in its financial management and accounting functions and the improvements that still need to be made to operate a sustainable and compliant accounting organization.

iii. Other deliverables as agreed upon by the Contractor and the FAMLI contract manager at the beginning of each quarter in Phase Five.

2.3.4 Staffing Plan, Personnel Qualifications and Professional Experience

A. Effective resource planning and personnel management are critical components of successful delivery of requirements defined in this RFP. The Contractor shall demonstrate the assignment of staff with appropriate skill sets by delivering a draft staffing plan with its proposal and updating the staffing plan throughout the term of the Contract as applicable.

B. The draft staffing plan shall be submitted with the Contractor’s Proposal (reference RFP Section 5).

The staffing plan shall be updated throughout the term of the Contract whenever there is a change in Contractor resources or upon the introduction of new content, approaches, methodologies, or other substantive changes to the RFP.

2.3.5 Deliverables

1. Deliverable Submission

A. For every deliverable, the Contractor shall request the Contract Monitor confirm receipt of that deliverable by sending an e-mail identifying the deliverable name and date of receipt.

B. For every deliverable, the Contractor shall submit to the Contract Monitor, by e-mail, an Agency Deliverable Product Acceptance Form (DPAF), an example of which is provided on the DoIT web page here:

http://doit.maryland.gov/contracts/Documents/_procurementForms/Deliverab leProductAcceptanceForm-DPAFsample.pdf.

C. Unless specified otherwise, written deliverables shall be compatible with Microsoft Office, Microsoft Project or Microsoft Visio within two (2) versions of the current version. At the Contract Monitor’s discretion, the Contract Monitor may request one hard copy of a written deliverable.

D. A standard deliverable review cycle will be elaborated and agreed-upon between the State and the Contractor. This review process is entered into when the Contractor completes a deliverable.

http://doit.maryland.gov/contracts/Documents/_procurementForms/DeliverableProductAcceptanceForm-DPAFsample.pdf http://doit.maryland.gov/contracts/Documents/_procurementForms/DeliverableProductAcceptanceForm-DPAFsample.pdf

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E. For any written deliverable, the Contract Monitor may request a draft version of the deliverable, to comply with the minimum deliverable quality criteria listed in Section 2.3.8 Drafts of each final deliverable, except status reports, are required at least two weeks in advance of when the final deliverables are due (with the exception of deliverables due at the beginning of the project where this lead time is not possible, or where draft delivery date is explicitly specified). Draft versions of a deliverable shall comply with the minimum deliverable quality criteria listed in Section 2.3.7 Minimum Deliverable Quality.

2.3.6 Deliverable Acceptance

A. A final deliverable shall satisfy the scope and requirements of this RFP for that deliverable, including the quality and acceptance criteria for a final deliverable as defined in Section 2.3.8.

B. The Contract Monitor shall review a final deliverable to determine compliance with the acceptance criteria as defined for that deliverable. The Contract Monitor is responsible for coordinating comments and input from various team members and stakeholders. The Contract Monitor is responsible for providing clear guidance and direction to the Contractor in the event of divergent feedback from various team members.

C. The Contract Monitor will issue to the Contractor a notice of acceptance or rejection of the deliverable in the DPAF (see online sample). Following the return of the DPAF indicating “Accepted” and signed by the Contract Monitor, the Contractor shall submit a proper invoice in accordance with the procedures in Section 3.3. The invoice must be accompanied by a copy of the executed DPAF or payment may be withheld.

D. In the event of rejection, the Contract Monitor will formally communicate in writing any deliverable deficiencies or non-conformities to the Contractor, describing in those deficiencies what shall be corrected prior to acceptance of the deliverable in sufficient detail for the Contractor to address the deficiencies. The Contractor shall correct deficiencies and resubmit the corrected deliverable for acceptance within the agreed-upon time period for correction.

2.3.7 Minimum Deliverable Quality

The Contractor shall subject each deliverable to its internal quality-control process prior to submitting the deliverable to the State.

Each deliverable shall meet the following minimum acceptance criteria:

A. Be presented in a format appropriate for the subject matter and depth of discussion.

B. Be organized in a manner that presents a logical flow of the deliverable’s content.

C. Represent factual information reasonably expected to have been known at the time of submittal.

D. In each section of the deliverable, include only information relevant to that section of the deliverable.

E. Contain content and presentation consistent with industry best practices in terms of deliverable completeness, clarity, and quality.

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F. Meets the acceptance criteria applicable to that deliverable, including any State policies, functional or non-functional requirements, or industry standards.

G. Contains no structural errors such as poor grammar, misspellings or incorrect punctuation.

H. Must contain the date, author, and page numbers. When applicable for a deliverable, a revision table must be included.

I. A draft written deliverable may contain limited structural errors, such as incorrect punctuation, and shall represent a significant level of completeness toward the associated final written deliverable. The draft written deliverable shall otherwise comply with the minimum deliverable quality criteria above.

2.3.8 Deliverable Descriptions/Acceptance Criteria

In addition to the items identified in the table below, the Contractor may suggest other subtasks, artifacts, or deliverables to improve the quality and success of the assigned tasks.

Deliverables Summary Table*

Deliverable Description

Acceptance Criteria Due Date / Frequency

Financial Management and Accounting Implementation Project Plan

A document including all the requirements listed in Section 2.3.3.1, Components To Be Included In the Implementation Project Plan, and in Section 2.3.3.3, Topics and Functional Areas To Be Covered By the Implementation Project Plan.

Delivery: By the end of Phase One

Phase Two Quarterly Implementation and Readiness Status Reports

A document including all the requirements listed in Section 2.3.3.5.B.

Delivery: By the end of each quarter throughout Phase Two

Phase Three Quarterly Implementation and Readiness Status Reports

A document including all the requirements listed in Section 2.3.3.6.C.iii.

Delivery: By the end of each quarter

Three

Phase Four Quarterly Readiness and Stabilization Reports

A document including all the requirements listed in Section 2.3.3.7.C.ii.

Delivery: By the end of each quarter

Four

*The deliverables summary table may not list every contractually-required deliverable.

Offerors and Contractors should read the RFP thoroughly for all Contract requirements and deliverables.

2.3.9 Contractor-Supplied Hardware, Software, and Materials

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A. By responding to this RFP and accepting a Contract award, the Offeror specifically agrees that for any software, hardware or hosting service that it proposes, the State will have the right to purchase such item(s) from another source, instead of from the selected Offeror.

B. The Contractor is responsible for the acquisition and operation of all hardware, software and network support related to the services being provided and shall keep all software current.

2.3.10 Required Project Policies, Guidelines and Methodologies

The Contractor shall be required to comply with all applicable laws, regulations, policies, standards and guidelines affecting Information Technology projects, which may be created or changed periodically. Offeror is required to review all applicable links provided below and state compliance in its response.

It is the responsibility of the Contractor to ensure adherence and to remain abreast of new or revised laws, regulations, policies, standards and guidelines affecting project execution. These include, but are not limited to:

A. The State of Maryland System Development Life Cycle (SDLC) methodology at:

http://doit.maryland.gov/SDLC/Pages/agile-sdlc.aspx ;

B. The State of Maryland Information Technology Security Policy and Standards at:

http://www.DoIT.maryland.gov- keyword: Security Policy;

C. The State of Maryland Information Technology Non-Visual Standards at:

http://doit.maryland.gov/policies/Pages/ContractPolicies.aspx ;

D. The State of Maryland Information Technology Project Oversight at:

http://doit.maryland.gov/epmo/Pages/ProjectOversight.aspx ;

E. The Contractor shall follow project management methodologies consistent with the most recent edition of the Project Management Institute’s Project Management Body of Knowledge Guide.

2.3.11 Service Level Agreement (SLA)

THIS SECTION IS INAPPLICABLE TO THIS RFP.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

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3 Contractor Requirements: General

3.1 Contract Initiation Requirements

THIS SECTION IS INAPPLICABLE TO THIS RFP.

3.2 End of Contract Transition

3.2.1 The Contractor shall provide transition assistance as requested by the State to facilitate the orderly transfer of services to the State or a follow-on contractor, for a period up to 60 days prior to Contract end date, or the termination thereof. Such transition efforts shall consist, not by way of limitation, of:

A. Provide additional services and support as requested to successfully complete the transition;

B. Maintain the services called for by the Contract at the required level of proficiency;

C. Provide updated System Documentation (see Appendix 1), as appropriate;

and

D. Provide current operating procedures (as appropriate).

3.2.2 The Contractor shall work toward a prompt and timely transition, proceeding in accordance with the directions of the Contract Monitor. The Contract Monitor may provide the Contractor with additional instructions to meet specific transition requirements prior to the end of the Contract.

3.2.3 The Contractor shall ensure that all necessary knowledge and materials for the tasks completed are transferred to the custody of State personnel or a third party, as directed by the Contract Monitor.

3.2.4 The Contractor shall support end-of-Contract transition efforts with technical and project support to include but not be limited to:

A. The Contractor shall provide a draft Transition-Out Plan 120 Business Days in advance of Contract end date.

B. The Transition-Out Plan shall address at a minimum the following areas:

1) Any staffing concerns/issues related to the closeout of the Contract;

2) Communications and reporting process between the Contractor, MDOL and the Contract Monitor;

3) Security and system access review and closeout;

4) Any hardware/software inventory or licensing including transfer of any point of contact for required software licenses to MDOL or a designee;

5) Any final training/orientation of department staff;

6) Connectivity services provided, activities and approximate timelines required for Transition-Out;

7) Knowledge transfer, to include:

a) A working knowledge of the current system environments as well as the general business practices of MDOL;

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b) Review with MDOL the procedures and practices that support the business process and current system environments;

c) Working knowledge of all technical and functional matters associated with the Solution, its architecture, data file structure, interfaces, any batch programs, and any hardware or software tools utilized in the performance of the Contract;

d) Documentation that lists and describes all hardware and software tools utilized in the performance of the Contract;

e) A working knowledge of various utilities and corollary software products used in support and operation of the Solution;

8) Plans to complete tasks and any unfinished work items (including open change requests, and known bug/issues); and

9) Any risk factors with the timing and the Transition-Out schedule and transition process. The Contractor shall document any risk factors and suggested solutions.

C. The Contractor shall ensure all documentation and data including, but not limited to, System Documentation and current operating procedures, is current and complete with a hard and soft copy in a format prescribed by the Contract Monitor.

D. The Contractor shall provide copies of any current daily and weekly back-ups to MDOL or a third party as directed by the Contract Monitor as of the final date of transition, but no later than the final date of the Contract.

E. Access to any data or configurations of the furnished product and services shall be available after the expiration of the Contract as described in Section 3.2.5.

3.2.5 Return and Maintenance of State Data

A. Upon termination or the expiration of the Contract Term, the Contractor shall: (a) return to the State all State data in either the form it was provided to the Contractor or in a mutually agreed format along with the schema necessary to read such data; (b) preserve, maintain, and protect all State data until the earlier of a direction by the State to delete such data or the expiration of 90 days (“the retention period”) from the date of termination or expiration of the Contract term; (c) after the retention period, the Contractor shall securely dispose of and permanently delete all State data in all of its forms, such as disk, CD/DVD, backup tape and paper such that it is not recoverable, according to National Institute of Standards and Technology (NIST)-approved methods with certificates of destruction to be provided to the State;

and (d) prepare an accurate accounting from which the State may reconcile all outstanding accounts. The final monthly invoice for the services provided hereunder shall include all charges for the 90-day data retention period.

B. During any period of service suspension, the Contractor shall maintain all State data in its then existing form, unless otherwise directed in writing by the Contract Monitor.

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C. In addition to the foregoing, the State shall be entitled to any post-termination/expiration assistance generally made available by Contractor with respect to the services.

3.3 Invoicing

3.3.1 General

A. The Contractor shall email the original of each invoice and signed authorization to invoice to the Contract Monitor and Accounts Payable at dllr.accountspayable@maryland.gov.

B. All invoices for services shall be verified by the Contractor as accurate at the time of submission.

C. An invoice not satisfying the requirements of a Proper Invoice (as defined at COMAR 21.06.09.01 and .02) cannot be processed for payment. To be considered a Proper Invoice, invoices must include the following information, without error:

1) Contractor name and address;

2) Remittance address;

3) Federal taxpayer identification (FEIN) number, social security number, as appropriate;

4) Invoice period (i.e. time period during which services covered by invoice were performed);

5) Invoice date;

6) Invoice number;

7) State assigned Contract number;

8) State assigned (Blanket) Purchase Order number(s);

9) Goods or services provided;

10) Amount due; and

11) Any additional documentation required by regulation or the Contract.

D. Invoices that contain both fixed price and time and material items shall clearly identify each item as either fixed price or time and material billing.

E. MDOL reserves the right to reduce or withhold Contract payment in the event the Contractor does not provide MDOL with all required deliverables within the time frame specified in the Contract or otherwise breaches the terms and conditions of the Contract until such time as the Contractor brings itself into full compliance with the Contract.

F. Any action on the part of MDOL, or dispute of action by the Contractor, shall be in accordance with the provisions of Md. Code Ann., State Finance and Procurement Article §§ 15-215 through 15-223 and with COMAR 21.10.04.

G. The State is generally exempt from federal excise taxes, Maryland sales and use taxes, District of Columbia sales taxes and transportation taxes. The Contractor; however, is not exempt from such sales and use taxes and may be liable for the same.

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H. Invoices for final payment shall be clearly marked as “FINAL” and submitted when all work requirements have been completed and no further charges are to be incurred under the Contract. In no event shall any invoice be submitted later than 60 calendar days from the Contract termination date.

3.3.2 Invoice Submission Schedule

The Contractor shall submit invoices in accordance with the following schedule:

A. For items of work for which there is one-time pricing (see Attachment B – Financial Proposal Form) those items shall be billed in the month following the acceptance of the work by MDOL.

B. For items of work for which there is annual pricing, see Attachment B– Financial Proposal Form, those items shall be billed in equal monthly installments for the applicable Contract year in the month following the performance of the services.

3.3.3 Deliverable Invoicing

A. Deliverable invoices shall be accompanied by notice(s) of acceptance issued by the State for all invoices submitted for payment. Payment of invoices will be withheld if a signed DPAF is not submitted (see online example at http://doit.maryland.gov/contracts/Documents/_procurementForms/Deliverab leProductAcceptanceForm-DPAFsample.pdf).

B. Payment for deliverables will only be made upon completion and acceptance of the deliverables as defined in Section 2.3.7.

3.3.4 For the purposes of the Contract an amount will not be deemed due and payable if:

A. The amount invoiced is inconsistent with the Contract;

B. The proper invoice has not been received by the party or office specified in the Contract;

C. The invoice or performance is in dispute or the Contractor has failed to otherwise comply with the provisions of the Contract;

D. The item or services have not been accepted;

E. The quantity of items delivered is less than the quantity ordered;

F. The items or services do not meet the quality requirements of the Contract;

G. If the Contract provides for progress payments, the proper invoice for the progress payment has not been submitted pursuant to the schedule;

H. If the Contract provides for withholding a retainage and the invoice is for the retainage, all stipulated conditions for release of the retainage have not been met; or

I. The Contractor has not submitted satisfactory documentation or other evidence reasonably required by the Procurement Officer or by the Contract concerning performance under the Contract and compliance with its provisions.

3.3.5 Travel Reimbursement

Travel will not be reimbursed under this RFP.

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3.4 Liquidated Damages

3.4.1 MBE Liquidated Damages

MBE liquidated damages are identified in…