PRF84 Request For Response~1.docx

COMMONWEALTH OF MASSACHUSETTS

OPERATIONAL SERVICES DIVISION

Request for Response (RFR)

Document Title: Payment Solutions

Agency Document Number: PRF84DesignatedCTR

COMMBUYS Bid#: BD-23-1080-OSD03-SRC02-80697

February 10, 2023

Please Note: This is a single document associated with a complete Bid (also referred to as Solicitation) that can be found on www.COMMBUYS.com. Bidders are responsible for reviewing and complying with all Bid requirements. Bidders may contact the OSD Help Desk at OSDHelpdesk@mass.gov or at 1-888-MA-STATE for technical assistance with COMMBUYS. The Help Desk is staffed from 8:00 AM to 5:00 PM Monday through Friday Eastern time, as applicable, except on federal and state holidays.

Bidders with disabilities or hardships that seek reasonable accommodation, which may include the receipt of RFR information in an alternative format, must communicate such requests in writing to the contact person. Requests for accommodation will be addressed on a case-by-case basis. A Bidder requesting accommodation must submit a written statement which describes the Bidder’s disability and the requested accommodation to the contact person for the RFR. The SST reserves the right to reject unreasonable requests.

Revision History

REQUEST FOR RESPONSE Payment Solutions

Document Sensitivity Level: High during development; Low once published. Template v 3.0.0

REQUEST FOR RESPONSE Payment Solutions

Table of Contents Page iv Document Sensitivity Level: High during development; Low once published.

INTRODUCTION AND BID OVERVIEW

Summary Description of Procurement The Commonwealth of Massachusetts, through the Office of the Comptroller (CTR) as designated by the Operational Services Division (OSD) and the Payment Solutions Strategic Sourcing Team (SST) are soliciting Bidders for the acquisition of a full suite of payment services and solutions. The resulting Contract will serve as the primary Statewide Contract used by Executive Agencies of the Commonwealth for the services covered by the Contract. The resulting Contract will replace PRF59AdesignatedOSC, which is currently set to expire on April 30, 2023. The Contract will also be available for use by other Eligible Entities.

Note that electronic payment processing was bid separately and awarded to Worldpay (PRF81- Electronic Payments Processing) and American Express Card Services (PRF82 – Electronic Payments Processing).

Estimated Procurement Calendar

Training for Online Submission – Contractors that have not previously submitted electronic quotes via COMMBUYS are strongly encouraged to attend training Dates and Times Available:

OSD Training for Vendors December - June 2023 Schedule

Online Webinar:

This interactive webcast provides instructions on several activities: Locating and responding to bids; Using the bid Q&A feature; Creating a quote response; Revising a Quote response. Access the webcast here.

Late bids will not be considered.

Location TBD

*See Appendix 2, “Instructions for Vendors Responding to Bids Electronically through COMMBUYS” for details on how to submit responses on COMMBUYS. Visit OSD Training for Vendors December - June 2023 Schedule for additional Instructor-Led Training and Webinar dates.

Times are Eastern Time (US), as displayed on the COMMBUYS system clock after logging in. If there is a conflict between the dates in this Procurement Calendar and dates in the Bid’s Header, the dates in the Bid’s Header on COMMBUYS shall prevail. Bidders are responsible for checking the Bid record, including Bid Q & A, on COMMBUYS for Procurement Calendar updates.

Submission of Bid Questions The “Bid Q & A” function in COMMBUYS allows Bidders to ask written questions and receive written answers regarding this Bid. To locate the Bid Q & A, log into COMMBUYS, locate the Bid, acknowledge receipt of the Bid, and scroll down to the bottom of the Bid Header page. The “Bid Q & A” button allows Bidder’s access to the Bid Q & A page.

All questions must be submitted through the Bid Q & A page. Questions must be asked prior to the Deadline stated in the Estimated Procurement Calendar. The Strategic Sourcing Team (SST) reserves the right not to respond to late questions. Bidders are responsible for verifying that their questions are recorded in COMMBUYS and appear on the Bid Q & A page.

Questions submitted to the SST outside of COMMBUYS will not be answered.

Content entered must be suitable for public viewing. Bidders must not include inappropriate content, including but not limited to, information that could be considered personal, security sensitive, inflammatory, incorrect, or collusory. The SST reserves the right to edit or delete any inappropriate content.

All answers are final when posted. Any subsequent revisions to previously provided answers will be dated.

Bid Amendment Deadline Although Bidders may submit quotes any time after the Bid Release Date and prior to the Bid Opening Date, Bidders should ensure that their quotes are based upon the final versions of the RFR and its attachments. Final versions of RFR and its attachments are available after the Bid Amendment Deadline date.

The SST reserves the right to make amendments to the Bid after initial publication. It is each Bidder’s responsibility to check COMMBUYS for any amendments, addenda or modifications to this Bid, and any Bid Q & A records related to this Bid. The SST and the Commonwealth accept no responsibility and will provide no accommodation to Bidders who submit a Quote based on an out-of-date Bid or on information received from a source other than COMMBUYS. At the SST’s discretion, the Bid Amendment Deadline may be extended. As stated above, it is the responsibility of the bidder for checking the Bid record in COMMBUYS for revisions and updates.

Oral Presentations/Product Demonstrations Selected Bidders who are asked to participate in Oral Presentations / Product Demonstrations will be expected to prioritize this in their schedules. The SST will make every effort to find a mutually convenient time for the Bidder and the SST. However, failure to appear at the scheduled time of the presentation/demonstration may result in disqualification, reduction of points or other action that the SST deems appropriate.

Late Bids will not be Considered Bid responses must be received in full by the bid opening date and time shown on COMMBUYS ("Bid Opening Date/Time", i.e., the Deadline for Quotes/Bid Responses). Proposals received after the deadline will be ineligible for consideration and deemed non-responsive. Each bidder/offeror must submit all required bid response forms electronically through COMMBUYS. When submitting a quote electronically through COMMBUYS, please allow sufficient time to complete any online forms and upload documents. If you are in the middle of uploading your proposal when the deadline is reached, the system will stop the process and you will be unable to submit your Quote. It is recommended that Quotes be submitted as far in advance as possible before the deadline to allow time to obtain assistance from the OSD Help Desk if needed.

Debriefing The SST will conduct debriefings for unsuccessful Bidders, if requested within 14 calendar days of notification that your Quote has not been selected for an award. Debriefing guidelines will be provided in advance prior to the debriefing.

Additional Bid Information Anticipated Contract Duration:

The initial term of this Contract is four (4) years. In addition, this Contract has two (2) options to renew of up to three (3) years each with a maximum possible contract duration of ten (10) years.

The Commonwealth reserves the right to negotiate any part of the RFR or contract to ensure continued best value for the Commonwealth, including fees. In addition, the contract may be extended under the same terms and conditions as needed for any period necessary to transition to a new procurement.

Contract renewals will be offered at the sole discretion of CTR for the Commonwealth. Rate plans may also be updated upon Contract renewal. At a minimum, offers to renew will be contingent upon satisfactory contractor performance and compliance with reporting requirements.

Performance and Payment Time Frames which Exceed Contract Duration All term leases, rentals, maintenance, or other agreements for services initiated during the duration of this Contract and whose performance and payment time frames extend beyond the duration of this Contract shall remain in effect for performance and payment purposes (limited to the time frame and services established per each written agreement). No written agreement shall extend more than one year beyond the final termination date of this Statewide Contract. No new leases, rentals, maintenance, or other agreements for services may be executed after the Contract has expired. Any contractor initiating new engagements with eligible entities after contract expiration will be subject to remedial measures, which may include but are not limited to mandatory point deduction for future bid submissions and suspension of other contracts with the Commonwealth.

Estimated Value of the Contract The estimated value of electronic payments processed through the current PRF59Adesignated OSC Payment Solutions contract was approximately $451M, in FY22. Eligible entities determine whether associated per-item fees associated with program volume will be client paid (i.e., by the eligible entity) or consumer paid (i.e., convenience fee funded) on a case-by-case basis, depending on the program. The Commonwealth makes no guarantee that any commodities or services will be purchased from any Contract resulting from this Bid. Any estimates or past procurement volumes referenced in this Bid are included only for the convenience of Bidders and are not to be relied upon as any indication of future purchase levels.

Although the complete expenditures made by eligible entities using the existing contracts is not available, the estimated value is based on similar goods/services purchased in FY22.

Estimated Number of Awards The target maximum number of Contractors is four (4). The SST may award more or fewer contracts, if it is in the best interests of the Commonwealth to do so.

Contract renewals will be offered at the sole discretion of OSD. At a minimum, offers to renew will be contingent upon satisfactory contractor performance, compliance with reporting requirements, and adequate sales volume.

Adding Contractors after Initial Contract Award If, over the life of the Contract, the SST determines that additional Contractors should be added to meet the requirements of the Commonwealth, these may first be drawn from qualified companies which responded to this Bid but were not awarded contracts and/or the Bid may be reopened to obtain additional Quotes.

Acquisition Method(s):

Entities Eligible to Use the Resulting Contract Any Contract(s) resulting from this Bid will be open for use by the following entities:

· Cities, towns, districts, counties, and other political subdivisions

· Executive, Legislative and Judicial Branches, including all Departments and elected offices therein

· Independent public authorities, commissions, and quasi-public agencies

· Local public libraries, public school districts and charter schools

· Public hospitals owned by the Commonwealth

· Public institutions of higher education

· Public purchasing cooperatives

· Non-profit organizations that are doing business with the Commonwealth;

· Other states and territories with no prior approval by the State Purchasing Agent; and

· Other entities when designated in writing by the State Purchasing Agent.

Each eligible entity is responsible for executing its own purchase orders and paying its own invoices for goods and/or services acquired from this Contract. Contractors will be responsible for marketing their goods and/or services to Commonwealth Agencies and other eligible entities.

ADDITIONAL INFORMATION ON PROCUREMENT SCOPE

The purpose of this Request for Response is to replace and expand the current Statewide Payment Solutions contract (PRF59AdesignatedOSC).

The Commonwealth of Massachusetts is seeking multiple contractors to provide third party electronic payments solutions and associated system integration to eligible entities in a variety of physical and virtual locations and settings. The Commonwealth of Massachusetts is seeking proposals from contractors with government sector payment experience including taxes, licenses, permits, fees, fines, education, courts, gaming, lottery, and human services. This payment solutions contract will leverage the significant current and future volume of Commonwealth of Massachusetts enterprise eligible entities to procure best value and service for all stakeholders.

The Commonwealth of Massachusetts eligible entities include a broad range of departments, commissions, authorities, municipalities, universities, and other public entities that accept electronic payments via web payment pages, web POS devices, IVR, kiosk, call centers, and mobile channels. Credit, debit, and/or ACH payment methods may be utilized on all payment channels. Commonwealth entities may choose not to implement all available payment channels and methods, but will do so according to their respective business requirements.

The Commonwealth’s objectives for this procurement include:

· Obtain the most secure and cost-effective solutions for the Commonwealth’s payment requirements.

· Achieve operational efficiencies.

· Streamline revenue flow and improve cash management practices.

· Secure economies of scale pricing and lower costs.

· Ensure timely funds settlement and facilitate accurate reconciliation.

· Provide accurate and manageable reporting that meets the requirements of eligible entities and CTR for oversight purposes.

· Facilitate integration and interfaces as required.

· Implement alternative and/or innovative payment solutions where appropriate.

Currently, sixty-five (65) Commonwealth of Massachusetts eligible entities leverage statewide contract PRF59Adesignated-OSC Payment Solutions. Some eligible entities have multiple programs in production to support various business processes within the organization. Some of the programs are very simple -- standalone web payment pages with no integration on the front or back end. Many other programs integrate with a business solution that credentials and initiates the encounter with the customer, redirects the customer to the payment solution, then posts the payment back to the originating business solution, to MMARS (the Massachusetts Management Accounting and Reporting System), or to both.

The following is a high-level representation of the current Commonwealth of Massachusetts Payment Solutions environment:

Current business on PRF59AdesignatedOSC consists of the following:

· Twenty-two (22) third party hosted web payment pages and one IVR (bilingual, English and Spanish) with direct merchant relationships (Worldpay and American Express).

· Sixty-eight (68) third party hosted web payment pages with a Payment Facilitator arrangement.

· One (1) call center with a Payment Facilitator.

· Two (2) web POS (iPad) implementations with a Payment Facilitator.

· Nine (9) web payment pages currently in development.

In FY22, approximately $451M in electronic payments was processed through the present PRF59AdesignatedOSC Payment Solutions contract. The following table shows the most recent FY22 Payment Solutions program volume, revenue, associated fees, and average ticket:

The following table shows overall Payment Solutions program volume for the last three fiscal years:

As previously stated, any estimates or past procurement volumes referenced in this Bid are included only for the convenience of Bidders and are not to be relied upon as an indication of future purchase levels. Sales volume and ticket size information are provided as an estimate. Actual volumes are cyclical and may vary by program or time of year. In particular, the COVID-19 pandemic may have impacted program volume.

Most Commonwealth of Massachusetts Executive branch entities accepting credit card and ACH payments over the internet will use the selected Bidder(s) under this RFR. However, certain entities may have requirements or volume that would require them to use a different solution (i.e., a direct certification to the processor, or a highly integrated business and payment solution). Commonwealth of Massachusetts Executive branch entities are expected to fully vet the feasibility of leveraging this Statewide contract and any exception from the use of this contract is evaluated by the Office of the Comptroller.

Procurement Exclusions The scope of this RFR includes third party electronic payment solutions but does not include payment processing and merchant services procured under a separate agreement. While this procurement does include web POS solutions, it does not include processor-injected swipe/dip/tap POS terminals. Note that electronic payment processing was bid separately and awarded to Worldpay (PRF81- Electronic Payments Processing) and American Express Card Services (PRF82 – Electronic Payments Processing).

In addition, banking, lockbox, treasury (including back-office conversions of checks, ARC, POP, BOC, and Remote Deposit Capture (RDC), and procurement card (p-card) services are not within scope of this procurement.

Bidder MINIMUM Qualifications Bidders are given the opportunity to demonstrate the minimum qualifications in detail within the requisite Attachment 1 -RFR Response Template Section 3 (3.1-3.27) including the Bidder experience, expertise, resources, and capabilities to provide the necessary services to Commonwealth eligible entities with details of historical demonstrated performance. The Bidder must demonstrate that it meets the minimum qualifications listed or have a suitable alternative.

To promote competition and ensure the most cost effective and comprehensive availability of services, the Commonwealth intends to narrow the field of contractors to the most qualified and competitive firms. In Section 3 of the RFR Response Template, the Bidder must demonstrate U.S.A. presence; Supplier Diversity Plan participation; security, compliance, and privacy; commitment to partnership; qualifications of key personnel and other resources; experience in the government sector; references; and other robust qualifications.

U.S.A. Presence (Attachment 1 - RFR Response Template - 3.1) The Bidder must be a United States firm, with no services being provided outside the continental US. This includes support services like customer service and data management. Customer Data may not be managed through 3rd party applications, software, or subcontractors in such a way that data travels or is stored or at rest in networks, clouds or other applications outside the continental US. Bidder must also limit access to data from Bidder personnel, subcontractors, and applications that enable access from outside the US. It is preferred that contractors have an in-state (Massachusetts) presence, but this is not required for selection. Travel costs are not billable under this Statewide Contract.

Company Experience/Business Background /Years in the Industry of the Bid (Attachment 1 - RFR Response Template - 3.2) Bidders must have been in the business of providing Payment Solutions for government entities for at least the five most recent consecutive years prior to the RFR submission deadline (See RFR Section 1.2, Estimated Procurement Calendar).

In the case of companies formed fewer than five years prior to this date via merger, acquisition or some other means, the SST may consider the experience of all companies involved in the merger or acquisition.

Security, Compliance, and Privacy (Attachment 1 - RFR Response Template - 3.3) The BIDDER will be considered a holder of Commonwealth personal data under M.G.L. c. 66A and/or personal information under MGL c. 93H and M.G.L. c. 93I and 201 CMR 17.00. For purposes of this contract, electronic personal data and personal information includes data provided by the Commonwealth to the Bidder which may physically reside at a location owned and/or controlled by the Commonwealth or Bidder, or any subcontractor or 3rd party application, network, cloud etc. Bidder must provide all requested detail regarding protocols and safeguards for security, compliance, and privacy.

Partnership Commitment (Attachment 1 - RFR Response Template - 3.4) Bidders must demonstrate a significant commitment to partner with the Commonwealth and eligible entities to achieve the highest level of performance and compliance, and ensure that business methods prevent fraud, waste and abuse of Commonwealth funds and resources. Bidder should explain how it will demonstrate this commitment to the Statewide Contract, and why this partnership demonstrates a better value to the Commonwealth than competitors.

Qualifications – Key Personnel Assigned to Contract (Attachment 1 - RFR Response Template - 3.5) Key personnel designated or assigned to the Payment Solutions engagement must perform as designated in the absence of termination from the Bidder or other unavoidable circumstances. Bidders submitting a response to this RFR shall be considered to have accepted this condition. During the period of the Contract, key personnel assigned to the performance of the Contract services may be removed or replaced by the Contractor only upon the prior written approval of CTR. A significant change in the key personnel listed in the Response prior to, or after, the execution of the Contract, which is unsatisfactory to CTR shall be grounds for disqualification of the Response or termination of the Contract.

Other Specialists or Personnel Assigned to Contract (Attachment 1 - RFR Response Template - 3.6) Personnel designated or assigned to the Payment Solutions engagement with qualifications or specialized skill sets must perform as designated in the absence of termination from the Bidder or other unavoidable circumstances. Bidders submitting a response to this RFR shall be considered to have accepted this condition.

Subcontractors (Attachment 1 - RFR Response Template - 3.7) The selected Bidder will be responsible for and perform all the duties and requirements of Payment Solutions services. In this section, the Bidder must identify any subcontractors that will or may be used to conduct any of the work described in this RFR, including the names of subcontractors, summaries of their qualifications, experience and duties and responsibilities for performance.

Regulatory and Industry Compliance (Attachment 1 - RFR Response Template - 3.9 – 3.13, 3.16, and 3.17) Any solution provided by the Bidder must be Payment Card Industry (PCI) compliant and must adhere to Federal, state, and industry best practices, rules, regulations, and laws governing banking, electronic payments, consumer protection, and data security and related compliance and security audits.

Bankruptcy, litigation, and contract defaults (Attachment 1 - RFR Response Template - 1.5 and 1.6) Bidders must provide a list of any outstanding contingencies, such as lawsuits or other claims or charges, against the Bidder related to performance of the services sought under this RFR which would potentially affect the bidder’s ability to perform these services.

References (Attachment 1 - RFR Response Template - 3.26) Bidder must provide a minimum of three (3) references for Payment Solutions services for the Commonwealth. References must be for the most relevant, comparable work of the type requested in this RFR (e.g., a state, federal, or large local government entity). Bidder shall Provide all contact information, including contact name, title, address, phone number, and email address of each of their references.

SST reserves the right to verify references included in the response and to conduct other reference checks as appropriate.

MCC Code Processing (Attachment 1 - RFR Response Template - 3.27) The Bidder must be able to process all business for all eligible entities, including but not limited to the core existing MCC codes (9399 (Government Services), 9311 (Tax Payments), and 9211 (Court). In addition, the Bidder must state whether the proposed payment solution can support 7800 (Government-Owned Lotteries), and 7801 (Government Licensed Casinos).

Technical, SERVICE, ENVIRONMENTAL, AND COST SPECIFICATIONS (Attachment 1 - RFR Response Template - Section 4 and Subsections) The following is a high-level summary of the detailed technical specifications and requirements found in the RFR Response Template Part 4. Bidders must demonstrate detailed qualifications for meeting the Commonwealth of Massachusetts technical, integration, reporting, customer service, settlement and deposit, invoicing and billing, and other specific requirements in the RFR Response Template Part 4 subsections.

Additional business and technical specifications related to receivables processing and the XML Remit file appear in the Appendices to this RFR. All bids shall be reviewed for completeness and shall be evaluated in accordance with the criteria contained herein.

Payment Solutions and Features (Attachment 1 - RFR Response Template - 4.1) The Bidder will be responsible for developing and maintaining secure payment solutions that customers may access via the internet, over the telephone, by mobile device, web POS, or kiosk. Payment methods include credit, debit, electronic benefit transfer (EBT), and ACH transactions, as well as payment methods such as near field communication (NFC), contactless, e-wallets, and other methods. The Bidder solution must support Visa, Master-Card, debit, Discover, American Express (all card brands and BINs/card types). Bidders may present emerging payment methods and solutions not exhaustively listed here to expand the current service offering for the Commonwealth’s consideration.

Payment solution Bidders that currently certify, or are willing to certify, to the Commonwealth’s payment processing provider (Worldpay) are strongly preferred. The contractor must be able to convey transactions to American Express as required.

The Bidder must be capable of integrating their proposed payment solutions with a variety of the Commonwealth’s third-party software business solutions (e.g., license, permit, tax), the primary accounting and reporting system (MMARS), the receivables subsystem (BARS) and designated depository bank(s). Specifically, the Bidder must interface a daily remit file with the Commonwealth’s accounting system (MMARS), which is used to generate accounting transactions in the nightly MMARS cycle. This file contains transactions from some, not all, Commonwealth engagements. This interface requires the solution provider to pass governmental accounting data to the Office of the Comptroller for each transaction included in the MMARS remit file. See Appendix 4–Requirements for MMARS XML Remit File and Appendix 5 – Standard Web Payment Page and Daily Remittance File Specification. . These Appendices identify the file layouts and functionality used to populate the MMARS accounting system. Due to the structure of MMARS, the daily remit file may contain thousands of records. The bidder must also provide a control report to the Office of the Comptroller corresponding to the file transmission to facilitate internal controls.

Integrated payment solutions must support returning the customer to the initiating business solution session after payment and posting the successful payment accordingly. The Bidder solution must be capable of supporting shopping cart functionality for both integrated and standalone implementations.

Any solution provided must be Payment Card Industry (PCI) compliant and must adhere to Federal, state, and industry best practices, regulations, and laws governing banking, electronic payments, consumer protection, and data security.

Payment Processing (Authorization, Settlement, Remittance, Reporting, Funding, and Reconciliation) (Attachment 1 - RFR Response Template - 4.2) The payment solutions Bidder must be able to meet the requirements set forth in this document for the enterprise. All transactions require real time authorization and processing regardless of the access channel to the card issuing banks via the Commonwealth’s PRF81 Electronic Payments Processing vendor (Worldpay). Transaction types include sales, reversal, void, and returns at minimum. The Bidder must validate CVV, AVS, and CID (for American Express). The Bidder must work with Worldpay as required to validate bank routing numbers and originate ACH transactions in standard NACHA formats to the ACH network for processing.

The Bidder solution must support a variety of client-specific remittance and exception file and reporting requirements to support timely and accurate settlement and reconciliation to multiple eligible entity DDAs.

The Bidder solution must have a role-based online reporting portal for both eligible entities and the Office of the Comptroller (for oversight over the entire relationship). The reporting tool must be configurable by eligible entity and display real-time transaction date and time stamp, transaction identifier(s), payment method, and amount, at minimum.

The solution must include chargeback, refund, return, and dispute resolution processes and support.

Customer Experience (Attachment 1 - RFR Response Template - 4.3) The Bidder payment solution must be configurable to support customized functionality based on individual eligible entity requirements. The solution must provide payment verification to the customer in a variety of methods (i.e., email, text). The Bidder must describe any customer-facing support provided, including availability EST/DST.

Invoices (Attachment 1 - RFR Response Template - 4.4) The Bidder must comply with M.G.L. c. 30, § 27 which mandates that all revenues collected first be deposited and accounted for in the state accounting system prior to payment being made to the contractor (i.e., no “netting” of revenues and fees).

If specified and the implementation is client-paid, the payment solution must support separate monthly billing for electronic payment solutions by eligible entity, or by program, as specified and required.

The payment solution must support a convenience fee funding model if specified by the eligible entity.

Technology and Integration (Attachment 1 - RFR Response Template - 4.5) The Bidder must identify any minimum system requirements for Commonwealth payors to use the solution, including minimum browser requirements and settings. The Bidder must identify any hardware or software (including licenses or service subscriptions) that are required to run or communicate with the solution. The Bidder must describe all available and supported integration methods for the payment solution. The bidder must describe testing environment, resources, and support available. The Bidder must share the solution upgrade roadmap and identify any partnership dependencies impacting improvement plans or service delivery.

The Bidder must describe fraud detection capabilities.

Administrative Functions, Support, and System Maintenance (Attachment 1 - RFR Response Template - 4.6) The Bidder must identify administrative user access functionality to payment solution data based on role across one or many eligible entities.

The Bidder must describe capabilities related to incident and issue reporting, escalation, monitoring, and resolution, including whether or not the system is made available to eligible entities or is configurable for Comptroller oversight.

The Bidder must be capable of defining service level agreements.

System Availability, Disaster Recovery, and Continuity of Operations (Attachment 1 - RFR Response Template - 4.7) The Bidder solution must be available 365 days a year, 24 hours a day, seven days a week with limited exceptions (i.e., nominally disruptive scheduled maintenance during low volume hours/overnight). The Bidder must provide information on scheduled and unscheduled system availability (i.e., incidences of sporadic system connectivity, slow response time, complete outage). The Bidder must describe disaster recovery capabilities and/or continuity of operations protocols, including redundant access to the processor. The Bidder must provide information on service restoration in event of a disaster or emergency.

The Bidder must describe how they ensure consistent solution availability and handle increases or peak volumes. The Bidder must define operational constraints during holiday times of the year and potential impacts to implementation or development support.

Transition and Development (Attachment 1 - RFR Response Template - 4.8) The Bidder must provide a payment solution for standalone payment pages or from payment pages called by entity home pages or other third-party business applications. The selected Bidder must transition existing payment pages and IVRs to new payment pages and IVRs, establish connectivity to the existing Commonwealth entities’ business applications and banking relationships where existent, and develop a working interface to the Commonwealth’s Accounting system (MMARS) as required. The selected Bidder must also work with Worldpay to coordinate establishment of new merchant or sub merchant accounts for eligible entities as required. The selected Bidder must also establish and maintain a payment facilitator relationship with Worldpay to ensure convenience fees are managed for applicable eligible entities.

The contract with the current hosting solution provider ends on April 30, 2023. The Commonwealth anticipates that the current contract will be extended for six months to one year to facilitate a fully tested transition from the current providers to the selected Bidder(s), where required. The transition will utilize a grouped and phased approach.

The Bidder solution must be capable of accommodating both existing business and new business. The Bidder must be able to service both transitioning eligible entities (if required) and board new implementations.

The Commonwealth’s business systems and internet services are constantly undergoing upgrade and technology modernization initiatives that may involve moving additional entities to electronic commerce services. As a result, these changes could increase the volume of transactions and output handled through this engagement.

Additional Value-Added Services (Response Template Section 4.9)

In future years, continued expansion and growth of payment programs is certain across Commonwealth eligible entities. In addition to current operations, the Commonwealth seeks to expand its business or add additional capabilities that may result in the growth of payment solutions programs facilitated under this contract.

This section enables the Bidder to identify additional value-added services that may be of interest to the Commonwealth of Massachusetts. Please include any services, products, reporting, fees, fraud detection capabilities, and experience that demonstrate the Bidder value proposition.

Please note: The Commonwealth of Massachusetts will not pay any extra charge that is not made a part of the contract or a written amendment. Bidder acts at its own risk in incurring an extra expense before inclusion in a fully executed amendment. Bidder acknowledges that additional services may be requested under amendments and pricing will be negotiated at that time.

Cost Response Narrative (Cost Response - Attachment 2 – Section 4.10) The bidder must describe the configuration of convenience fee programs. The Bidder must acknowledge low risk and tax-exempt status of the Commonwealth. The Bidder must acknowledge that rate increases may not be passed to the Commonwealth without prior written approval. The Bidder must describe volume discounts, tier pricing, and rounding practices (if applicable). The bidder must describe fees associated with transition.

Cost Response Template (Cost Response - Attachment 2 – Section 4.11) Bidders must complete the Cost Response Templates found in Attachment 2 for a 4, 3, 3-year contract with consideration to all costs. The attachments are in Microsoft Excel. Please provide a listing of the fees for services that are not included in the transaction price as required. Ensure that this list is inclusive of all possible charges including monthly fees, credentialing, or access to merchant reporting portals. The Commonwealth will not pay any charges that are not contained in this schedule. Price adjustments may be considered after the initial four year term by contract amendment.

Ordering and Quotes Responding to Buyer’s quote requests is a requirement of this contract. Contractors choosing not to bid must respond to COMMBUYS quote requests with a “no bid” by selecting the “Is No Bid” checkbox on the General tab of the quote. Similarly, Contractors choosing not to bid on quote requests received outside of COMMBUYS must respond with a “no bid”.

Contractors must provide a quote that clearly identifies all commodities, materials, services and/or requirements which may incur costs for the Eligible Entity. All quotes must be for only products and/or services that Contractor is awarded to sell under this Statewide Contract. Furthermore, Contractors may not bill Eligible Entities for costs not identified in the quote, accepted by the SST, and agreed to by the Eligible Entity unless otherwise specified.

Environmental Specifications In 2009, Executive Order 515, establishing an Environmental Purchasing Policy for Executive Departments, was signed. View the Environmentally Preferable Products (EPPs) Procurement Program General Information, Requirements and Guidance for detailed information about the program at https://www.mass.gov/doc/epp-general-information-requirements-and-guidance/download.

Bidders should also be aware that in 2021, Senate Bill 9 - An Act Creating a Next Generation Roadmap for Massachusetts Climate Policy was signed to achieve Net Zero emissions in 2050 and furthers the Commonwealth’s efforts to combat climate change and protect vulnerable communities. The full Act may be viewed at https://malegislature.gov/Bills/192/S9. In 2021, Executive Order 594, Leading By Example: Decarbonizing and Minimizing Environmental Impacts of State Government, was signed. EO594 requires all eligible state agencies to assess and implement strategies to mitigate greenhouse gas emissions and other environmental impacts when planning for and executing projects related to the design, construction, operations, and maintenance of state facilities, and the procurement of goods and services, including vehicles. View EO594: Leading By Example requirements at https://www.mass.gov/executive-orders/no-594-leading-by-example-decarbonizing-and-minimizing-environmental-impacts-of-state-government.

Environmental Benefit Claims/Labeling Environmental benefit claims concerning products or services must be consistent with the Federal Trade Commissions’ Guides for the Use of Environmental Marketing Terms. Product environmental claims are to include the industry standard the product meets and certifier. Vendors must agree to offer and clearly label products with sustainability certifications and attributes, when available, within specific product categories. Documentation of the certification claimed by the vendor must be supplied upon request if it is not publicly available for verification (on either the vendor’s or certifier’s website).

Vendors claiming environmental benefits of their products shall list the appropriate benefits or industry standard it meets in the quarterly sales reports, if applicable, or on separate annual reports.

Required Environmental Specifications View the Environmentally Preferable Products (EPPs) Procurement Program General Information, Requirements and Guidance for detailed information about the program at:

https://www.mass.gov/doc/epp-general-information-requirements-and-guiance/dowload.

Bidder Current Environmental Practices Form All RFRs are required to include the Bidder Current Environmental Practices Form which may be found at https://www.mass.gov/service-details/epp-program-policies. The form requires editing prior to including in an RFR and depending on the products/service bid, editing, addition and deletions may be made] Bidders must complete this form, Attachment PRF84 EPP Form to this RFR, and submit it with their Quote. The form allows Bidders to communicate existing business practices that foster a sustainable approach to conducting their operations and reduce environment or public health impacts. Bidders may receive additional points in the evaluation phase of the RFR for the environmental initiatives they identify, however, bidders must substantiate all answers to receive additional points.

Environmental plan Awarded Bidders must agree to work with OSD and the SST to examine the feasibility of implementing an environmental plan throughout the life of the contract. Such a plan may include, but not be limited to, implementing energy initiatives, adopting, and implementing sustainability policies or third-party standards and/or certifications, or publicizing their environmental initiatives. The objective of this requirement is to actively encourage suppliers to incorporate sustainable practices throughout their business operations and further market such practices to Contract users. Bidders may include written proposals submitted as an attachment PRF84 EPP Form to their Quote detailing a commitment to action contingent upon receipt of a Contract award.

Compensation Structure/Pricing Bidders must submit a detailed rate attachment as part of the requisite Cost Response Templates (Attachment 2) document which demonstrate the most cost-effective pricing for the Commonwealth. Bidders must identify all costs or charges that can be billed under this Statewide Contract. Compensation will be based solely on the pricing submitted by the Bidder and accepted by the SST. Pricing must be submitted for all goods and services to be provided on this Statewide Contract. Pricing will be published on COMMBUYS.

Tiered discounts Contractors are encouraged to submit their most competitive pricing in the Cost Response Templates (Attachment 2) including any tiered discounts.

Invoicing Bidders must be capable of supporting the individual invoicing requirements outlined in the Response Template Section 4.4 for the Commonwealth.

Prompt Pay Discount The requirement to offer a PPD is waived by the SST for Electronic Payment Processing Services.

Authorized Price Changes Pricing changes must be agreed upon between the Commonwealth and the contractor and will be made through contract amendment.

SUPPLIER DIVERSITY PLAN (SDP)

Program Background Pursuant to Executive Order 565, the Commonwealth’s Supplier Diversity Program (SDP) promotes business-to-business relationships between awarded Contractors and diverse businesses and non-profit organizations (“SDP Partners”) certified or recognized by the Supplier Diversity Office (SDO).

Financial Commitment Requirements All Bidders responding to this solicitation are required to make a meaningful financial commitment (“SDP Commitment”) to partnering with one or more SDO-certified or recognized diverse business enterprise or non-profit organization. This SDP Commitment must be expressed as a percentage of any contract sales resulting from this solicitation that would be spent with the SDP Partner(s).

After contract award (if any), the Total SDP Commitment shall become a contractual requirement to be met annually on a Massachusetts fiscal year basis (July 1 – June 30) for the duration of the contract.

The minimum total SDP Commitment acceptable in responses to this solicitation shall be 1%. Bidders shall be awarded additional evaluation points for higher SDP Commitments.

No contract shall be awarded to a Bidder without an SDP Commitment that meets the requirements stated herein. This requirement extends to all Bidders regardless of their own supplier diversity certification.

Eligible SDP Partner Certification Categories SDP Partners must be business enterprises and/or non-profit organizations certified or recognized by the SDO in one or more of the following certification categories:

· Minority-Owned…