This document is the Draft Contract for the Federal Revenue Enhancement and Claiming Systems Support Services procurement. It is attached to the Request for Proposal so that Offerors can review the terms and conditions under which the successful Offeror will perform. By submitting a proposal, the Offeror acknowledges and accepts the terms and requirements contained in this document.

The Draft Contract will be finalized upon award to incorporate the successful Offeror's name, pricing, contract dates, and proposal-specific details such as the proposed staffing plan and transition timeline. The Department reserves the right to negotiate terms consistent with the solicitation and the Offeror's proposal prior to execution. The substantive scope of work, service requirements, and contract terms described in this document represent the Department's requirements for this engagement and are not subject to material revision through negotiation.

Instructions and requirements to submit a bid response are found in the Request for Proposal solicitation document.

State of Illinois Contract v.25.4 Department of Children and Family Services Attachment G. 1 Draft Contract Federal Revenue Enhancement and Claiming Systems Support Services

PO27-149

26-418DCFS-PROCU-B-53611

The Parties to this contract are the State of Illinois acting through the undersigned Agency (collectively the State) and the Vendor. This contract, consisting of the signature page and numbered sections listed below and any attachments referenced in this contract, constitute the entire contract between the Parties concerning the subject matter of the contract, and in signing the contract, the Vendor affirms that the Certifications and Financial Disclosures and Conflicts of Interest attached hereto are true and accurate as of the date of the Vendor’s execution of the contract. This contract supersedes all prior proposals, contracts and understandings between the Parties concerning the subject matter of the contract. This contract can be signed in multiple counterparts upon agreement of the Parties.

1. SCOPE OF WORK

1.1. OVERVIEW AND PURPOSE:

The Vendor shall provide federal revenue enhancement services to the Illinois Department of Children and Family Services (DCFS or the Department), including preparation and submission of federal claims and reports, Title IV-E eligibility determinations, identification of allowable but unclaimed revenue, cost allocation support, audit and compliance support, and maintenance and development of the applications and systems that support federal claiming and eligibility operations.

The Vendor shall perform all work described in this contract in accordance with applicable federal and State requirements, Department policies and procedures, and the terms of this contract.

1.2. SUPPLIES AND/OR SERVICES REQUIRED:

1.2.1. Federal Claiming and Reporting

The Vendor shall prepare, validate, review, and support the submission of all federal claims and reports across the Department's funding streams. This includes:

· Title IV-E foster care maintenance, adoption assistance, guardianship assistance (KinGap), Chafee Foster Care Program for Successful Transition to Adulthood, and Education and Training Vouchers.

· Title IV-B Child Welfare Services (Subpart 1) and Promoting Safe and Stable Families (Subpart 2).

· TANF Emergency Assistance claiming based on Maintenance of Effort documentation.

· Title XIX (Medicaid) administrative claiming and Medicaid billing for Rule 132 mental health services.

· SSI/SSA trust fund operations under Titles II and XVI of the Social Security Act.

· Federal Funding Accountability and Transparency Act (FFATA) reporting and sub-recipient reporting.

The Vendor shall ensure that all quarterly and annual claims and reports are complete, accurate, supportable, and submitted within federally prescribed deadlines. The Vendor shall maintain the documentation necessary to support each claim under federal and State audit review.

The Vendor shall operate and maintain the Revenue Maximization application (RevMax) and all other claiming support tools, processing the task items required to complete each federal claim cycle.

1.2.2. Eligibility Review and Revenue Protection

The Vendor shall support the Department's Title IV-E eligibility determination processes for foster care, adoption assistance, and guardianship assistance populations. This includes:

· Provide guidance/support on any issues relating to initial Title IV-E eligibility determinations for children entering care.

· Provide guidance/support on any issues relating to court orders for the presence of required reasonable efforts, contrary to the welfare, and judicial determination language.

· Reviewing all KinGap and Adoption subsidies prior to finalization to ensure documentation of eligibility criteria supports the eligibility determination process, including verification of compliance with Adam Walsh Act requirements, background check documentation, and required court documentation.

· Maintaining eligibility records in the Department's systems of record.

· Identifying cases where eligibility status may be correctable and pursuing redetermination where appropriate.

· Performing Emergency Assistance eligibility determinations for intact family cases.

· FFPSA program support. The Vendor shall support the Department's compliance with the Family First Prevention Services Act, including reviewing Evidence-Based Intervention (EBI) services provided to families and children to confirm proper association with the specific child or children in the case. The Vendor shall review all Qualified Residential Treatment Program (QRTP) placements for compliance with QRTP requirements, including the 30-day assessment, 60-day court hearing, ongoing assessment of need for QRTP placement, length of stay limits, and Director's waivers, to ensure the Department can accurately claim for these placements.

· Trial Home Visit (THV) support. The Vendor shall identify and monitor Title IV-E cases impacted by Trial Home Visits, request related court documentation, and prepare THV documents for EDU staff to complete continuation determinations or new IV-E foster care determinations.

· Provide ongoing assistance on placement issues impacting IV-E. Work with DCFS courts, EDU and CAPU to help resolve all related issues. Assistance is usually focused around case opening date discrepancies or court orders interpreted incorrectly.

· Congregate care employee background check review. Conduct a quarterly review of all congregate agencies’ Individual Licensing Summary (ILS) to ensure proper background clearances are completed prior to employee start date. Provide DCFS FFP with reporting analyzing the results of each quarter.

· Provide assistance with entry of legal data on the DCFS system of record to ensure proper legal status changes and accurate case goal updates.

1.2.3. Revenue Identification

The Vendor shall conduct ongoing analysis of Department spending, service populations, contracts, appropriations, and eligibility data to identify costs that are allowable under federal requirements but are not currently being claimed. The Vendor shall:

· Perform a comprehensive review of the Department's funding sources, service codes, appropriations, and eligibility groups at least annually.

· Identify specific revenue opportunities, quantify the estimated additional federal revenue, and present findings to the Department with recommendations for implementation.

· Analyze the claimability of specific populations where federal penetration rates are below achievable levels, including but not limited to older youth (ages 18-21) in foster care.

· Assist the Department in implementing approved claiming initiatives, including development of required system modifications and procedures.

· Monitor federal legislative, regulatory, and policy changes for impact on Department claiming and advise the Department on implementation.

1.2.4. Cost Allocation Support

The Vendor shall assist the Department in maintaining and updating its Public Assistance Cost Allocation Plan (PACAP) and indirect cost rate proposal. This includes:

· Preparing amendments to the PACAP in response to legislative changes, policy changes, organizational restructuring, and operational needs.

· Supporting the Department in negotiations with the federal Cost Allocation Services unit.

· Maintaining documentation supporting the Department's approved cost allocation methodologies.

· Advising the Department on the cost allocation implications of new programs, contracts, or organizational changes.

1.2.5. Audit and Compliance Support

The Vendor shall provide technical and programmatic support for federal and State audit and review activities. This includes:

· Supporting the Department in preparation for and participation in federal Title IV-E eligibility reviews, including primary reviews and secondary oversight reviews.

· Conducting monthly internal mock compliance reviews of Title IV-E Foster Care (45 cases per month), in coordination with Department staff.

· Supporting the annual statewide single audit of federal programs, including document retrieval, case argumentation, and technical support to the Department audit liaison.

· Providing technical support for negotiations with the Administration for Children and Families regarding actual or proposed federal disallowances, deferrals, or questioned costs.

· Preparing and supporting Departmental Appeals Board (DAB) appeals when directed by the Department.

· Maintaining documentation and audit trails supporting all federal claims.

1.2.6. Systems Maintenance and Development

The Vendor shall maintain, enhance, and develop the applications and systems that support federal eligibility determination and claiming operations. These systems operate across a legacy mainframe environment (IMS DB/DC and DB2) and modern web-based platforms (.NET, SQL Server), and include the MARS FFP applications, Emergency Assistance System, Revenue Maximization application (RevMax), Medical Assistance System, Managed Care Support exchanges, Home of Relative System, Trust System, Court Tracking System, and related batch programs, online screens, and web applications. System reference materials are included in the attachments to this Contract.

1.2.6.1. Mainframe Applications. The Vendor shall maintain and support the legacy mainframe applications operating in the IMS DB/DC and DB2 environment, including the MARS FFP applications (including EDU reporting, Auto-Coding, and Streamline processing), Emergency Assistance System, Medical Assistance System, Home of Relative System, Trust System, Court Tracking System, Managed Care Support exchanges, and related batch programs and online screens. Maintenance includes correcting defects and responding to production issues; implementing changes required by federal or State policy, regulation, or legislation (including but not limited to the Family First Prevention Services Act, the ABLE Act legislation 20 ILCS 505/5.46, and Certified Youth initiatives); implementing enhancements requested by the Department; supporting batch job execution, monitoring, and troubleshooting in coordination with the Department of Innovation and Technology (DoIT); and maintaining system documentation.

1.2.6.2. Web Applications. The Vendor shall maintain and support web-based applications including the Revenue Maximization application (RevMax), the Standard Narrative eligibility determination application, Subsidy Tracking System, the CWCA Tracking System, Court Tracking System and related tools. Maintenance includes correcting defects and responding to production issues; implementing changes required by federal or State policy changes or system interface changes; implementing enhancements requested by the Department; including help desk support, troubleshooting, and user guidance; and maintaining system documentation.

1.2.6.2.1. The Vendor shall design, develop, and maintain a web-based application to support the County Title IV-E Legal Cost Claiming program, including tracking of intergovernmental agreements, attorney background check processing, electronic submission of attorney cost claims by counties, Department review and approval of submissions, and export of approved data to the claiming system.

· The Intergovernmental Agreement (IGA) between each respective county and IL DCFS

· Form CFS 718-C Authorization for Background Check – form.

· Background Check Process/Results on Attorneys

· Electronic submission available to counties to submit attorney costs incurred.

· Ability for DCFS to review and approve / deny submissions.

· Export data from submissions into Vendor system for DCFS federal claiming.

1.2.6.2.2. The Vendor shall design, develop, and maintain a web-based application to support Social Security Number (SSN) card request tracking for youth in care, including tracking of requests received, submissions to SSA, correspondence, supplemental documentation from caseworkers, receipt of SSN cards, and distribution to foster parents, caseworkers, or regional offices.

· When the request was received from a CW or FP or automated request is sent

· Status of submission to SSA

· Any correspondence received from SSA, FP, or CW

· Tracking of when additional items are requested from the CW such as a copy of the birth certificate or original issues birth certificate court ordered name change, AKA order or adoption decree

· Tracking of when additional items are received from the CW

· Receipt of receiving the SSN card from SSA

· Receipt of mailing out any material to FP or CWs. or regional offices

· Update DCFS system of record (CYCIS) with verified SSN data

1.2.6.3. Claim Processing. The Vendor shall provide a claim processing capability that meets all requirements described in Sections 1.2.1. through 1.2.5. of this Contract, including the ability to process claims accurately and within federal deadlines across all funding streams identified in Section 1.2.1. The Vendor may utilize a proprietary application, a commercially available product, a custom-developed solution, or another approach. Regardless of the system used, the Department retains full ownership of and access to all Department data processed through the solution at all times. The Vendor shall return all Department data in a usable format specified by the Department upon expiration or termination of the contract. Ifthe solution includes a proprietary or commercially licensed application, the Vendor shall grant the Department perpetual, irrevocable access to all Department data within the application and shall ensure that the Department’s ability to continue federal claiming operations is not dependent on the Vendor’s continued involvement or continued access to the application.

1.2.6.4. Interagency Data Exchanges. The Vendor shall support the data exchanges between Department systems and systems owned by other State agencies, including HFS, DHS, DoIT, and county court systems. The Vendor shall monitor and troubleshoot data exchange processes; adapt to changes in external systems initiated by owning agencies; coordinate with external agency IT staff to resolve interface issues; and document data exchange specifications.

1.2.6.5. CCWIS Transition Support. The Vendor shall support the Department's planned transition to a Comprehensive Child Welfare Information System (CCWIS). This includes maintaining current systems in full operation while CCWIS components are developed; providing subject matter expertise on federal claiming and eligibility processes to CCWIS development teams as requested; participating in planning for the migration of claiming and eligibility functions to the CCWIS environment; and adapting existing systems as needed during the transition period. The Department will set the schedule for CCWIS-related work.

1.2.6.6. Managed Care Support. The Vendor shall provide ongoing IT support for the Department's managed care data exchange operations. In 2019, the Department transitioned its youth in care and former youth in care populations into the HFS Managed Care system. The Vendor shall produce and distribute Daily Notification File (DNF) data and maintain all data exchanges between the Department and HFS, DHS, and related managed care entities. This includes daily processing and support of all data exchange, processing, and reporting functions related to the functioning and support of Managed Care Plans for DCFS youth in foster care, adoption, and guardianship placements. A managed care flow chart describing these exchanges is included in the attachments to this Contract.

1.2.7. Technical Support Unit Functions

The Vendor shall perform the operational functions described in the Technical Support Unit Manual (revised September 2025), including foster care and adoption assistance medical card entry and processing; address changes on DHS systems; Medicaid eligibility group number changes; medical card cancellations including continuous eligibility processing; distribution and reconciliation of temporary medical card AMISYS IDs; and processing of turnaround documents and follow-up reports. This includes all data exchanges related to the functioning and support of Managed Care Plans for DCFS youth in foster care, adoption and guardianship placements. Provide support for new reporting, changing/updating existing reports and ongoing testing. Aid in troubleshooting case specific issues when necessary.

1.2.8. Research and Federal Monitoring

The Vendor shall monitor, research, and analyze federal issues that affect the Department's eligibility and claiming operations. This includes monitoring pending federal legislation, Notices of Proposed Rulemaking, policy issuances, DAB decisions, and results of federal reviews and audits in other states; providing timely analysis of the impact of federal developments on Department operations; advising the Department on implementation strategies for new federal requirements; and assisting with State plan amendments and updates as needed.

1.2.9. HFS Child Support

The Vendor shall provide research on case-specific questions related to the interface between DCFS and HFS Child Support, serve as an analyst for client/HFS issues versus IT support matters, and ensure any necessary IT changes are implemented to maintain business interface processing. The Vendor shall also be responsible for addressing IT changes required by the HFS IMPACT system to ensure continued interface compatibility.

1.2.10. IllinoisConnect (CCWIS) Support

The Vendor shall provide ongoing support for FFP mapping changes, participate in recurring IllinoisConnect PI meetings, and assist with any programmatic implementation needs to maintain system and process compatibility with IllinoisConnect.

1.2.11. Payroll System Compatibility

The Vendor acknowledges that DCFS is developing a new payroll system that will require timely modifications to the claiming system to accommodate additional data fields. The Vendor shall implement all necessary changes to prevent any disruption to payroll-based cost claiming activities, which represent the majority of DCFS administrative costs claimed.

1.3. MILESTONES AND DELIVERABLES:

1.3.1. Transition Milestones

· Within 10 business days of contract execution: submit a detailed transition plan for Department approval.

· Within 30 calendar days of contract execution: complete initial knowledge transfer activities and begin parallel operations where applicable.

· Within 60 calendar days of contract execution: achieve full independent operating capability for all claiming and eligibility functions.

· Within 90 calendar days of contract execution: complete transition, including resolution of all transition-related issues and delivery of a transition completion report.

1.3.2. Recurring Deliverables

· Monthly progress reports, due within seven business days after the end of each month, detailing activities performed, hours by staff and service category, project status, issues, and recommendations.

· Quarterly federal claim submissions, prepared and validated within 30 calendar days after the end of each federal fiscal quarter.

· Annual comprehensive review and analysis of the Department's revenue sources and unclaimed cost opportunities, due by October 1 of each contract year.

· Annual analysis of Chafee and ETV expenditures, due by January 30 and July 30.

· Monthly analysis of Children's Accounts receipts and reimbursements due within seven business days after the end of each month.

· Quarterly TANF Emergency Assistance claim calculations, within 30 calendar days after the end of each quarter.

· Monthly eligibility population analysis, due by the 10th of each month for the preceding month.

· Quarterly analysis of HMR licensing data and its financial impact on claiming due within 30 calendar days after the end of each federal fiscal quarter.

· Annual sub-recipient report, due by October 31.

· The Vendor shall review and update all operational procedure manuals at least annually and whenever a material change in process, policy, or system functionality occurs. Updated manuals shall be delivered to the Department by December 31 of each contract year.

1.3.3. Ad Hoc Deliverables

The Vendor shall provide the following on an as-needed basis as directed by the Department:

· Analysis of federal NPRMs, policy issuances, and legislative changes, within 10 business days of publication or as otherwise directed.

· Technical support for audit responses, within the timeframes established by the auditing entity.

· System modification specifications, development, testing, and deployment, on schedules agreed with the Department.

· Presentations and briefings for Department management, federal reviewers, or other stakeholders.

1.4. VENDOR/STAFF SPECIFICATIONS:

1.4.1. Key Personnel

The Vendor shall designate key personnel for the following roles at minimum:

· Project Director: overall responsibility for contract performance, Department relationship management, and strategic direction. Must have a minimum of five years of experience managing federal revenue enhancement or federal claiming engagements for state child welfare agencies.

· Claiming Operations Lead: responsibility for eligibility review operations, including adoption assistance and guardianship assistance subsidy reviews. Must have a minimum of three years of direct experience with Title IV-E, Title IV-B, TANF, and Medicaid claiming processes and requirements for state child welfare agencies.

· Eligibility Operations Lead: responsibility for eligibility determination and redetermination operations. Must have a minimum of three years of direct experience with Title IV-E eligibility criteria, eligibility determination processes, and federal review standards for state child welfare agencies.

· IT Lead: responsibility for maintenance, development, and support of all systems described in this contract. Must have a minimum of five years experience managing application development and support teams working across legacy mainframe and modern web application environments.

Key personnel must remain active on the contract for the full term of the Contract unless no longer employed by the Vendor. Any replacement of key personnel shall meet or exceed the minimum qualifications established for that position in Section 1.4.1. and shall require prior written approval of the Department. The Vendor shall notify the Department in writing within five business days of learning that a key personnel vacancy will occur and shall propose a qualified replacement within thirty calendar days. The Department reserves the right to reject proposed replacements that do not meet the minimum qualifications or that the Department determines are not suitable for the role.

1.4.2. Staffing Levels

The Vendor shall maintain staffing at or above the levels set forth in the Pricing Schedule throughout the contract term. Changes to staffing levels are subject to the adjustment process in this Section 1.4.2. In addition to the key personnel identified in Section 1.4.1., the Vendor’s team shall include staff with the following capabilities:

· Program staff with knowledge of federal child welfare programs, federal claiming, cost allocation, and eligibility determination.

· IT staff with skills in COBOL (IMS DB/DC and DB2), Eztrieve Plus, and MVS JCL for mainframe application maintenance and development.

· IT staff with skills in the Microsoft .NET framework (C#, ASP.NET), SQL Server, and related web technologies for web application maintenance and development.

· Staff capable of providing help desk support to Department staff and external service providers.

· Fiscal staff with knowledge of cost allocation, public assistance cost allocation plan maintenance, and federal financial reporting requirements.

These capabilities describe required skill sets of the Vendor’s team, not additional named positions. The number and allocation of staff providing these capabilities is determined by the Vendor’s accepted staffing plan.

The Department recognizes that staffing needs may evolve over the contract term as systems, processes, or workload change. The Vendor may request approval to adjust staffing levels by submitting a written justification to the Department describing the proposed change, the rationale, and how continued performance of all contract requirements will be maintained. Any adjustment in staffing levels requires prior written approval of the Department.

1.4.3. Background Screening and Access

Staff assigned to perform work under this contract shall be subject to Department background screening requirements prior to accessing Department systems, facilities, and records containing confidential child welfare information. The Vendor shall account for onboarding time associated with these requirements in its transition plan and in ongoing staff replacement timelines. Access to certain county court systems is separately restricted and may require additional clearance.

1.4.4. Training

The Vendor shall ensure that all staff assigned to this engagement are trained on Department policies, procedures, and systems relevant to their assigned functions including the operational procedures described in the Eligibility Determination Unit Manual and the Technical Support Manual, the systems and applications identified in this Contract, and applicable State and federal requirements governing child welfare records and federal claiming. The Vendor shall provide ongoing training to maintain staff competency as policies, systems, and federal requirements change. The Department will make training materials and subject matter expertise available to the Vendor during the transition period to support initial staff training.

1.4.5. Confidentiality

The Vendor and all staff assigned to this engagement shall comply with all applicable State and federal confidentiality requirements governing child welfare records, including but not limited to the Abused and Neglected Child Reporting Act (325 ILCS 5/), HIPAA where applicable, and Department administrative rules governing the confidentiality of child welfare records.

1.4.6. Ownership of Work Product and Data

All work product, documentation, manuals, operating procedures, reports, analyses, data, system code developed under this contract, and materials developed or maintained under this contract are the property of the Department. The Vendor shall not assert any proprietary claim to work product created in the performance of the contract.

All Department data processed, stored, or transmitted by the Vendor or through the Vendor's systems in the performance of the contract is the property of the Department. The Vendor shall provide the Department with complete access to its data at all times and shall return all Department data in a usable format upon expiration or termination of the contract.

The Vendor shall maintain current operational procedure manuals for all functional units and processes under its responsibility. These manuals are the property of the Department. The Vendor shall update manuals at least annually and whenever a material change in process, policy, or system occurs. Updated manuals shall be delivered to the Department by December 31 of each contract year.

1.5. SUBCONTRACTING:

Subcontractors are allowed.

1.5.1. Will subcontractors be utilized? |_| Yes |_| No

A subcontractor is a person or entity that enters into a contractual agreement with a total value of $100,000 or more with a person or entity who has a contract subject to the Illinois Procurement Code pursuant to which the person or entity provides some or all of the goods, services, real property, remuneration, or other monetary forms of consideration that are the subject of the primary State contract, including subleases from a lessee of a State contract.

All contracts with subcontractors where the annual value of the subcontract is greater than $50,000 must include Illinois Standard Certifications completed by the subcontractor.

1.5.2. Please identify below subcontracts with an annual value of $100,000 or more that will be utilized in the performance of the contract, the names and addresses of the subcontractors, and a description of the work to be performed by each.

· Subcontractor Name: Click here to enter text Amount to Be Paid: Click here to enter text Address: Click here to enter text Description of Work: Click here to enter text

· Subcontractor Name: Click here to enter text Amount to Be Paid: Click here to enter text Address: Click here to enter text Description of Work: Click here to enter text

If additional space is necessary to provide subcontractor information, please attach an additional page.

1.5.3. If the annual value of any subcontracts is more than $100,000, then the Vendor must provide to the State the Financial Disclosures and Conflicts of Interest for that subcontractor.

1.5.4. If at any time during the term of the Contract, Vendor adds or changes any subcontractors, Vendor is required to promptly notify, in writing, the State Purchasing Officer or the Chief Procurement Officer of the names and addresses and the expected amount of money that each new or replaced subcontractor will receive pursuant to this Contract. Any subcontracts entered prior to award of this Contract are done at the sole risk of the Vendor and subcontractor(s).

1.6. WHERE SERVICES ARE TO BE PERFORMED: Unless otherwise disclosed in this section all services shall be performed in the United States. If the Vendor performs the services purchased hereunder in another country in violation of this provision, such action may be deemed by the State as a breach of the contract by Vendor.

Vendor shall disclose the locations where the services required shall be performed and the known or anticipated value of the services to be performed at each location. If the Vendor received additional consideration in the evaluation based on work being performed in the United States, it shall be a breach of contract if the Offeror shifts any such work outside the United States.

The Vendor shall maintain a staffed office in Springfield, Illinois for the duration of the Contract. All Vendor staff performing work under this Contract shall work full-time from either the Vendor’s Springfield office or a Department facility. Remote or hybrid work arrangements are not permitted unless expressly authorized in writing by the Department. Vendor staff shall be available to attend meetings at Department facilities on a regular basis, including weekly scheduled meetings and events that may arise on short notice. Travel to other Department locations or other State agency facilities required to perform contract services shall be at the Vendor’s expense.

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1.7. Transition

1.7.1. Transition In. The Vendor shall execute a structured transition plan that brings the Vendor to full operating capability without disrupting active claiming cycles, eligibility determinations, or audit activity. The transition plan shall address knowledge transfer, staff onboarding and system access provisioning, parallel operations, phased assumption of responsibility, risk identification and mitigation, and testing and validation of claiming processes. The Vendor shall submit a detailed transition plan within 10 business days of contract execution. The Department must approve the transition plan before the Vendor proceeds to full operations.

1.7.2. Transition Out. The Department will initiate transition planning no later than twelve months before the scheduled expiration of the Contract. The Vendor shall submit a draft transition-out plan to the Department no later than six months before expiration. Transition activities shall include transfer of all Department-owned documentation, data, work product, and materials; participation in knowledge transfer sessions with the Department and any successor; continued performance of services as directed by the Department during the transition period; return of all Department data in a format specified by the Department; and removal of all Department data from the Vendor's systems upon confirmation of successful transfer.

1.8. Standards and Compliance

The Vendor shall perform all work in compliance with:

· Titles IV-B, IV-E, IV-A, XVI, and XIX of the Social Security Act and implementing federal regulations.

· 2 CFR Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards).

· 45 CFR Parts 1355, 1356, and 1357 (Title IV-E and IV-B program requirements).

· The Department's approved State Plans for Title IV-B and Title IV-E.

· The Department's approved Public Assistance Cost Allocation Plan (PACAP).

· Department administrative rules, policies, and procedures.

· State of Illinois information security policies applicable to Department systems and data.

The Vendor shall monitor changes to applicable federal and State requirements and advise the Department of necessary modifications to claiming, eligibility, or system processes.

1.9. Reporting and Monitoring

The Vendor shall submit monthly progress reports in a format agreed upon at the post-award conference. Reports shall include at minimum: activities performed during the reporting period organized by service area; hours worked by individual staff member and service category; status of active projects and initiatives; issues encountered and resolutions or proposed resolutions; and upcoming activities and anticipated issues for the next reporting period.

The Department will monitor the Vendor's performance over the course of the contract. The Vendor shall cooperate with all monitoring activities, which may include review of monthly progress reports and supporting documentation, regular status meetings with Department management, review of claiming accuracy and timeliness, review of eligibility determination accuracy, review of system availability and incident response, and random inspection of work product and documentation.

1.10. Service Level Requirements

The Vendor shall meet the following service level requirements throughout the contract term. The Department will monitor performance against these requirements as part of contract oversight described in Section 1.9.

1.10.1. Claiming timeliness. All quarterly and annual federal claims and reports shall be prepared, validated, and ready for Department review no later than 30 business days after the close of the applicable federal fiscal quarter or reporting period. Final submissions to the federal government shall occur within federally prescribed deadlines with zero late filings per contract year.

1.10.2. System availability. Web-based applications maintained by the Vendor shall be available for use by Department staff and external service providers during normal business hours (7:00 AM to 6:00 PM Central Time, Monday through Friday, excluding State holidays). Unplanned downtime shall not exceed 4 hours per month. The Vendor shall notify the Department within 24 hour(s) of any unplanned system outage.

1.10.3. Production incident response. The Vendor shall respond to production system issues according to the following schedule:

1.10.4. Staff vacancy fill time. The Vendor shall fill staff vacancies within thirty calendar days of the vacancy occurring. If a key personnel vacancy is not filled within 30 calendar days, the Department may require the Vendor to provide a written remediation plan.

1.10.5. Deliverable quality. Monthly progress reports and recurring deliverables shall be submitted on time and complete. If the Department returns a deliverable as incomplete or unacceptable, the Vendor shall submit a corrected version within 2 business days. More than 5 rejected deliverables in a contract year may be considered a material performance deficiency.

1.10.6. Audit response support. When the Department requests support for an audit, federal review, or disallowance response, the Vendor shall provide the requested documentation, analysis, or technical support within the timeframe specified by the Department or, if no timeframe is specified, within 5 business days.

1.10.7. System and Organization Controls (SOC) 1 Report. The Vendor shall certify it has undergone an independent third-party audit in accordance with Statement on Standards for Attestation Engagements (SSAE-18) and shall provide the Department with a System and Organization Controls 1, Type 1 (SOC 1, Type 1) report within 90 days of contract execution and a System and Organization Controls 1, Type 2 (SOC 1, Type 2) report within one year of contract execution, and annually thereafter with an applicable bridge/gap letter.

1.10.8. System and Organization Controls (SOC) 2 Report. The Vendor shall certify it has undergone an independent third-party audit in accordance with Statement on Standards for Attestation Engagements (SSAE-18) and shall provide the Department with a System and Organization Controls 2, Type 1 (SOC 2, Type 1) report within 90 days of contract execution and a System and Organization Controls 2, Type 2 (SOC 2, Type 2) report within one year of contract execution, and annually thereafter with an applicable bridge/gap letter. The SOC 2, Type 2 report shall cover all five trust principles: Security, Privacy, Confidentiality, Availability, and Processing Integrity.

2. PRICING

2.1. TYPE OF PRICING: The Illinois Office of the Comptroller requires the State to indicate whether the contract price is firm or estimated at the time it is submitted for obligation. The total price of this contract is firm.

2.2. VENDOR’S PRICING: Vendor’s pricing is located in the Items Tab in the BidBuy Purchase Order. The State includes in this contract the BidBuy Purchase Order as it contains the agreed pricing.

Pricing is submitted as fully loaded hourly rates by staff position for each fiscal year of the initial term. The total of all monthly billings for a fiscal year shall not exceed the annual amount for that year as proposed by the Vendor.

2.3. MAXIMUM AMOUNT: The total payments under the initial term of this contract shall not exceed $Click here to enter text without a formal amendment. The maximum amount will be entered by the State prior to execution of the contract.

3. TERM AND TERMINATION

3.1. TERM:

3.1.1. TERM OF THIS CONTRACT: The contract will have an initial term of ten (10) years, commencing upon the last dated signature of the Parties. In no event will the maximum total term of the contract, including the initial term, any renewal terms, and any extensions, exceed ten (10) years. Vendor shall not commence billable work in furtherance of the contract prior to final execution of the contract except when permitted pursuant to 30 ILCS 500/20-80.

3.2. TERMINATION FOR CAUSE: The State may terminate this contract, in whole or in part, immediately upon notice to the Vendor if: (a) the State determines that the actions or inactions of the Vendor, its agents, employees or subcontractors have caused, or reasonably could cause, jeopardy to health, safety, or property, or (b) the Vendor has notified the State that it is unable or unwilling to perform the contract.

If Vendor fails to perform to the State’s satisfaction any material requirement of this contract, is in violation of a material provision of this contract, or the State determines that the Vendor lacks the financial resources to perform the contract, the State shall provide written notice to the Vendor to cure the problem identified within the period of time specified in the State’s written notice. If not cured by that date the State may either: (a) immediately terminate the contract without additional written notice or (b) enforce the terms and conditions of the contract.

For termination due to any of the causes contained in this Section, the State retains its rights to seek any available legal or equitable remedies and damages.

3.3. TERMINATION FOR CONVENIENCE: The State may, for its convenience and with thirty (30) days prior written notice to Vendor, terminate this contract in whole or in part and without payment of any penalty or incurring any further obligation to the Vendor.

Upon submission of invoices and proof of claim, the Vendor shall be entitled to compensation for supplies and services provided in compliance with this contract up to and including the date of termination.

3.4. AVAILABILITY OF APPROPRIATION: This contract is contingent upon and subject to the availability of funds. The State, at its sole option, may terminate or suspend this contract, in whole or in part, without penalty or further payment being required, if (1) the Illinois General Assembly or the federal funding source fails to make an appropriation sufficient to pay such obligation, or if funds needed are insufficient for any reason (30 ILCS 500/20-60), (2) the Governor decreases the Agency’s funding by reserving some or all of the Agency’s appropriation(s) pursuant to power delegated to the Governor by the Illinois General Assembly, or (3) the Agency determines, in its sole discretion or as directed by the Office of the Governor, that a reduction is necessary or advisable based upon actual or projected budgetary considerations. Contractor will be notified in writing of the failure of appropriation or of a reduction or decrease.

4. STANDARD BUSINESS TERMS AND CONDITIONS

4.1. PAYMENT TERMS AND CONDITIONS:

4.1.1. LATE PAYMENT: Payments, including late payment charges, will be paid in accordance with the State Prompt Payment Act and rules when applicable. 30 ILCS 540; 74 III. Adm. Code 900. This shall be Vendor’s sole remedy for late payments by the State. Payment terms contained in Vendor’s invoices shall have no force or effect.

4.1.2. MINORITY CONTRACTOR INITIATIVE: Any Vendor awarded a contract of $1,000 or more under Section 20-10, 20-15, 20-25 or 20-30 of the Illinois Procurement Code (30 ILCS 500) is required to pay a fee of $15. The Comptroller shall deduct the fee from the first check issued to the Vendor under the contract and deposit the fee in the Comptroller’s Administrative Fund. 15 ILCS 405/23.9.

4.1.3. EXPENSES: The State will not pay for supplies provided or services rendered, including related expenses, incurred prior to the execution of this contract by the Parties even if the effective date of the contract is prior to execution.

4.1.4. PREVAILING WAGE: As a condition of receiving payment Vendor must (i) be in compliance with the contract, (ii) pay its employees prevailing wages when required by law, (iii) pay its suppliers and subcontractors according to the terms of their respective contracts, and (iv) provide lien waivers to the State upon request. Examples of prevailing wage categories include public works, printing, janitorial, window washing, building and grounds services, site technician services, natural resource services, security guard and food services. The prevailing wages are revised by the Illinois Department of Labor (DOL) and are available on DOL’s official website, which shall be deemed proper notification of any rate changes under this subsection. Vendor is responsible for contacting DOL at 217-782-6206 or (https://labor.illinois.gov) to ensure understanding of prevailing wage requirements.

4.1.5. FEDERAL FUNDING: This contract may be partially or totally funded with Federal funds. If Federal funds are expected to be used, then the percentage of the good/service paid using Federal funds and the total Federal funds expected to be used will be provided to the awarded Vendor in the notice of intent to award.

4.1.6. INVOICING: By submitting an invoice, Vendor certifies that the supplies or services provided meet all requirements of this contract, and the amount billed and expenses incurred are as allowed in this contract. Invoices for supplies purchased, services performed, and expenses incurred through June 30 of any year must be submitted to the State no later than July 31 of that year; otherwise Vendor may have to seek payment through the Illinois Court of Claims. 30 ILCS 105/25. All invoices are subject to statutory offset. 30 ILCS 210.

4.1.6.1. Vendor shall not bill for any taxes unless accompanied by proof that the State is subject to the tax. If necessary, Vendor may request the applicable agency’s Illinois tax exemption number and Federal tax exemption information.

4.1.6.2. Vendor shall invoice at this completion of the contract unless invoicing is tied in this contract to milestones, deliverables, or other invoicing requirements agreed to in the contract.

Send invoices to:

For procurements conducted in BidBuy, the Agency may include in this contract the BidBuy Purchase Order as it contains the Bill To address.

4.2. ASSIGNMENT: This contract may not be assigned or transferred in whole or in part by Vendor without the prior written consent of the State.

4.3. SUBCONTRACTING: For purposes of this section, subcontractors are those with contracts with an annual value exceeding $100,000 and who are specifically hired to perform all or part of the work covered by this contract. Vendor must receive prior written approval before use of any subcontractors in the performance of this contract. Vendor shall describe, in an attachment if not already provided, the names and addresses of all authorized subcontractors to be utilized by Vendor in the performance of this contract, together with a description of the work to be performed by the subcontractor and the anticipated amount of money that each subcontractor is expected to receive pursuant to this contract. If required, Vendor shall provide a copy of any subcontracts within fifteen (15) days after execution of this contract. All subcontracts must include the same certifications that Vendor must make as a condition of this contract. Vendor shall include in each subcontract the Standard Illinois Certification form available from the State. If at any time during the term of the Contract, Vendor adds or changes any subcontractors, then Vendor must promptly notify, by written amendment to the Contract, the State Purchasing Officer or the Chief Procurement Officer of the names and addresses, the expected amount of money that each new or replaced subcontractor will receive pursuant to the Contract, and the general type of work to be performed. 30 ILCS 500/20-120.

4.4. AUDIT/RETENTION OF RECORDS: Vendor and its subcontractors shall maintain books and records relating to the performance of this contract and any subcontract necessary to support amounts charged to the State pursuant this contract or subcontract. Books and records, including information stored in databases or other computer systems, shall be maintained by the Vendor for a period of three (3) years from the later of the date of final payment under the contract or completion of the contract, and by the subcontractor for a period of three (3) years from the later of final payment under the term or completion of the subcontract. If Federal funds are used to pay contract costs, the Vendor and its subcontractors must retain their respective records for five (5) years. Books and records required to be maintained under this section shall be available for review or audit by representatives of the procuring Agency, the Auditor General, the Executive Inspector General, the Chief Procurement Officer, State of Illinois internal auditors or other governmental entities with monitoring authority, upon reasonable notice and during normal business hours. Vendor and its subcontractors shall cooperate fully with any such audit and with any investigation conducted by any of these entities. Failure to maintain books and records required by this section shall establish a presumption in favor of the State for the recovery of any funds paid by the State under this contract or any subcontract for which adequate books and records are not available to support the purported disbursement. The Vendor or subcontractors shall not impose a charge for audit or examination of the Vendor’s or subcontractor’s books and records. 30 ILCS 500/20-65.

4.5. TIME IS OF THE ESSENCE: Time is of the essence with respect to Vendor’s performance of this contract. Vendor shall continue to perform its obligations while any dispute concerning this contract is being resolved unless otherwise directed by the State.

4.6. NO WAIVER OF RIGHTS: Except as specifically waived in…