Michigan.gov/MiProcurement proposal instructions Department of Health and Human Services Economic study on the cost of raising children Request for Proposal No. 210000001793 Amendment #1

Solicitation Manager: Nathaniel Oliver Direct Phone: (517) 241-0084 Email: OliverN@michigan.gov Main Phone: 1-855-MI-PURCH 1-855-647-8724 This is a Request for Proposal (RFP) for:

Economic study on the cost of raising children RFP Timeline

Amd 1: Tuesday, July 6, 2021

Amd 1: Monday, July 12, 2021

*A bidder’s proposal received at 1:59:01 p.m. Eastern is late and subject to disqualification.

This RFP is subject to change. Check www.michigan.gov/SIGMAVSS for current information.

1. PROPOSAL PREPARATION. The State recommends reading all RFP materials prior to preparing a proposal, particularly these Proposal Instructions and the Vendor Questions Worksheet. Bidders must follow these Proposal Instructions and provide a complete response to the items indicated in the table below. References and links to websites or external sources may not be used in lieu of providing the information requested in the RFP within the proposal. Include the bidder’s company name in the header of all documents submitted with your proposal.

RFP Structure and Documentation

Vendor, Contractor or Subcontractor Confidentiality Agreement Informational

2. CONTACT INFORMATION FOR THE STATE. The sole point of contact for the State concerning this RFP is listed on the Cover Page. Contacting any other State personnel, agent, consultant, or representative about this RFP may result in bidder disqualification.

OPTIONAL PRE-PROPOSAL MEETING. An optional pre-proposal meeting will be held as a video/teleconference meeting via Microsoft Teams on the date and time specified in the RFP timeline.

Those interested in participating can email the Solicitation Manager at OliverN@michigan.gov to request the meeting invitation.

The purpose of the pre-proposal meeting is to discuss the RFP and the work to be performed. Statements made by the Solicitation Manager or designee at a pre-proposal meeting are not considered modifications to the RFP. If, however, the Solicitation Manager determines modifications to the RFP are warranted after the meeting, modifications will be posted in writing on www.michigan.gov/SIGMAVSS as explained in the Modifications section of this document Accessibility requests for reasonable accommodations at the pre-proposal meeting should be made with the Solicitation Manager at least 10 business days before the date of the meeting. Accommodation requests received outside this time period cannot be guaranteed.

3. MODIFICATIONS. The State may modify this RFP at any time. Modifications will be posted on www.michigan.gov/SIGMAVSS. This is the only method by which the RFP may be modified.

4. QUESTIONS. Bidder questions about this RFP must be emailed to the Solicitation Manager no later than the time and date specified on the Cover Page. In the interest of transparency, only written questions are accepted. Answers to questions will be posted on www.michigan.gov/SIGMAVSS. Submit questions using the format below; a Microsoft Excel format or similar is suggested.

5. DELIVERY OF PROPOSAL.

Electronic – The bidder must submit its proposal, all attachments, and any modifications or withdrawals electronically through www.michigan.gov/SIGMAVSS. The price proposal should be saved separately from all other proposal documents. The bidder should submit all documents in a modifiable (native) format (examples include but are not limited to Microsoft Word or Excel and Google Docs or Sheets). In addition to submitting documents in a modifiable format, the bidder may also submit copies of documents in PDF. Attachment file size is limited to 6 MB per document. Bidder’s failure to submit a proposal as required may result in disqualification. The proposal and attachments must be fully uploaded and submitted prior to the proposal deadline. Do not wait until the last minute to submit a proposal, as the SIGMA OVSS system requires the creation of an account and entry of certain information, in addition to uploading and submitting the materials. The SIGMA VSS system will not allow a proposal to be submitted after the proposal deadline identified in the solicitation Closing On/Closing Date fields (Summary view/Detail view), even if a portion of the proposal has been uploaded.

Questions on how to submit information or how to navigate in the SIGMA VSS system can be answered by calling (517) 284-0540 or (888) 734-9749. The Solicitation Manager will not provide assistance related to the submittal of the proposal and all attachments on the day of the proposal deadline. Responsibility for a complete submission lies with the bidder.

6. EVALUATION PROCESS. The State will evaluate each proposal based on the following factors:

Proposals receiving 80 or more technical evaluation points will have pricing evaluated and considered for award.

The State may utilize all bidder information, without regard to a proposal’s technical score, to determine fair market value for goods or services sought. The State is not obligated to accept the lowest price proposal. If applicable, the State’s evaluation will include consideration of a bidder’s qualified disabled veterans/service-disabled veteran owned business(QDV/SDVOB) status under MCL 18.1261(8). Additional information on the SDVOB preference is available at: Michigan.gov/SDVOB.

The State strongly encourages strict adherence to the Contract Terms. The State reserves the right to deem a bid non-responsive for failure to accept the Contract Terms. Nevertheless, the bidder may submit proposed changes to the Contract Terms in track changes (i.e., visible edits) with an explanation of the bidder’s need for each proposed change. Failure to include track changes with an explanation of the bidder’s need for the proposed change constitutes the bidder’s acceptance of the Contract Terms. General statements, such as that the bidder reserves the right to negotiate the terms and conditions, may be considered non-responsive.

The State may but is not required to conduct an on-site visit to tour and inspect the bidder’s facilities; require an oral presentation of the bidder's proposal; conduct interviews, research, reference checks, and background checks; and request additional price concessions at any point during the evaluation process.

7. NOTICE OF DEFICIENCY. The State reserves the right to issue a Notice of Deficiency to bidders if the State determines after the proposal deadline that a portion of the RFP was deficient, unclear, or ambiguous. Failure to respond to a Notice of Deficiency timely may be cause for disqualification.

8. CLARIFICATION REQUEST. The State reserves the right to issue a Clarification Request to a bidder to clarify its proposal if the State determines the proposal is not clear. Failure to respond to a Clarification Request timely may be cause for disqualification.

9. RESERVATIONS. The State reserves the right to:

a. Disqualify a bidder for failure to follow these instructions.

b. Discontinue the RFP process at any time for any or no reason. The issuance of an RFP, your preparation and submission of a proposal, and the State’s subsequent receipt and evaluation of your proposal does not commit the State to award a contract to you or anyone, even if all the requirements in the RFP are met.

c. Consider late proposals if: (i) no other proposals are received; (ii) no complete proposals are received; (iii) the State received complete proposals, but the proposals did not meet mandatory minimum requirements or technical criteria; or (iv) the award process fails to result in an award.

d. Consider an otherwise disqualified proposal if no other proposals are received.

e. Disqualify a proposal based on: (i) information provided by the bidder in response to this RFP; (2) the bidder’s failure to complete registration on www.michigan.gov/SIGMAVSS ; or (3) if it is determined that a bidder purposely or willfully submitted false or misleading information in response to the RFP.

f. Consider prior performance with the State in making its award decision.

g. Consider overall economic impact to the State when evaluating proposal pricing and in the final award recommendation. This includes but is not limited to: considering principal place of performance, number of Michigan citizens employed or potentially employed, dollars paid to Michigan residents, Michigan capital investments, job creation, tax revenue implications, and economically disadvantaged businesses.

h. Consider total-cost-of-ownership factors (e.g., transition and training costs) when evaluating proposal pricing and in the final award recommendation.

i. Refuse to award a contract to any bidder that has failed to pay State taxes or has outstanding debt with the State.

j. Enter into negotiations with one or more bidders on price, terms, technical requirements, or other deliverables.

k. Award multiple, optional-use contracts, or award by Contract Activity.

l. Evaluate the proposal outside the scope identified in the Evaluation Process section of this document if the State receives only one proposal.

10. AWARD RECOMMENDATION. The contract will be awarded to the responsive and responsible bidder who offers the best value to the State, as determined by the State. Best value will be determined by the bidder meeting the minimum point threshold and offering the best combination of the factors stated in the Evaluation Process section of this document, and price, as demonstrated by the proposal. The State will post an Award Recommendation and Evaluation Synopsis on www.michigan.gov/SIGMAVSS or in the manner it was originally published

11. DEBRIEF MEETING AND BID PROTEST. The State will post an Award Recommendation and Evaluation Synopsis which will provide instructions on how to request a debrief meeting.

If you wish to initiate a protest of the award, you must submit your written protest via email to MDHHS-BGP@michigan.gov no later than 3:00 P.M, five (5) calendar days after posting the Award Recommendation and Evaluation Synopsis or by 3:00 P.M. the next business day if that date falls on a state holiday or weekend. The State reserves the right to adjust this timing and will publish any change.

Additional information about the protest process is available at www.michigan.gov/micontractconnect under the “Programs and Policies” link.

12. STATE ADMINISTRATIVE BOARD. Contracts equal to $250,000 or greater than require approval by the State Administrative Board. The State Administrative Board’s decision is final; however, its approval does not constitute a contract. The award process is not complete until the awarded contractor receives a contract fully executed by all parties.

13. GENERAL CONDITIONS. The State will not be liable for any costs, expenses, or damages incurred by a bidder participating in this solicitation. The bidder agrees that its proposal will be considered an offer to do business with the State in accordance with its proposal, including the Contract Terms, and that its proposal will be irrevocable and binding for a period of 180 calendar days from date of submission. If a contract is awarded to the bidder, the State may, at its option, incorporate any part of the bidder’s proposal into a contract. This RFP is not an offer to enter into a contract. This RFP may not provide a complete statement of the State’s environment or contain all matters upon which agreement must be reached. Other than verified trade secrets, proposals submitted via www.michigan.gov/SIGMAVSS are the State’s property.

14. CONFIDENTIAL TREATMENT FORM AND THE FREEDOM OF INFORMATION ACT. All portions of the bidder’s proposal and resulting contract are subject to disclosure as required under Michigan’s Freedom of Information Act (FOIA), MCL 15.231, et seq. However, some information may be exempt from disclosure. Under MCL 18.1261(13)(b), records containing “a trade secret as defined under section 2 of the uniform trade secrets act, 1998 PA 448, MCL 445.1902,” are exempt from disclosure under FOIA. In addition, “financial or proprietary information” submitted with a bidder’s proposal is exempt from disclosure under FOIA. A bidder’s failure to comply with this Section is grounds for rejecting a bidder’s proposal as non-responsive. As a part of its proposal, each bidder must follow the procedure below.

SUBMIT A COMPLETED “CONFIDENTIAL TREATMENT FORM” (CT FORM) WITH YOUR BID. Completion and submission of the CT Form is required regardless of whether the bidder seeks confidential treatment of information. Failure to submit a completed CT Form may be cause for disqualification from the solicitation process.

Complete and sign Section 1 of the CT Form if the bidder does NOT request confidential treatment of information contained in its proposal; or

i. Complete and sign Section 2 of the CT Form if the bidder requests confidential treatment of certain information. Bidder must also submit a “Public Copy” of the proposal with the trade secret, financial, and proprietary information redacted and clearly labeled as the “Public Copy.”

b. FOIA REQUESTS. If a FOIA request is made for a bidder’s proposal, the Public Copy may be distributed to the public along with the bidder’s CT Form. The CT Form is a public document and serves as an explanation for the redactions to the Public Copy. Do not put any trade secret, financial, or proprietary information in the CT Form. Do not redact the CT Form itself.

c. NO ADVICE. The State will not advise a bidder as to the nature or content of documents entitled to protection from disclosure under FOIA or other laws, as to the interpretation of such laws, or as to the definition of trade secret or financial or proprietary information. Nothing contained in this provision will modify or amend requirements and obligations imposed on the State by FOIA or other applicable law.

d. FAILURE TO REQUEST CONFIDENTIAL TREATMENT. Failure to request material be treated as confidential as specified herein relieves the State, its agencies, and personnel from any responsibility for maintaining material in confidence.

e. Bids containing a request to maintain an entire proposal as confidential may be rejected as non-responsive. Bidders may not request confidential treatment with respect to resumes, pricing, and marketing materials. The State reserves the right to determine whether material designated as exempt by a bidder falls under MCL 18.1261 or other applicable FOIA exemptions. If a FOIA request is made for materials that the bidder has identified as trade secret, financial, or proprietary information, the State has the final authority to determine whether the materials are exempt from disclosure under FOIA.

f. Bidder forever releases the State, its departments, subdivisions, officers, and employees from all claims, rights, actions, demands, damages, liabilities, expenses and fees, which arise out of or relate to the disclosure of all or a portion of bidder’s proposal submitted under this RFP. Bidder must defend, indemnify and hold the State, its departments, subdivisions, officers, and employees harmless, without limitation, from and against all actions, claims, losses, liabilities, damages, costs, attorney fees, and expenses (including those required to establish the right to indemnification), arising out of or relating to any FOIA request, including potential litigation and appeals, related to the portion of bidder’s proposal submitted under this RFP that bidder has identified as a trade secret, or financial or proprietary information. The State will notify bidder in writing if indemnification is sought. The State is entitled to: (i) regular updates on proceeding status; (ii) participate in the defense of the proceeding; (iii) employ its own counsel; and to (iv) retain control of the defense, or any portion thereof, if the State deems necessary. Bidder will not, without the State’s written consent (not to be unreasonably withheld), settle, compromise, or consent to the entry of any judgment in or otherwise seek to terminate any claim, action, or proceeding. If a State employee, official, or law is involved or challenged, the State may control the defense of that portion of the claim. Any litigation activity on behalf of the State, or any of its subdivisions under this Section, must be coordinated with the Department of Attorney General. An attorney designated to represent the State may not do so until approved by the Michigan Attorney General and appointed as a Special Assistant Attorney General.

confidential treatment form INSTRUCTIONS. Complete either Section 1 or Section 2 of this CT Form and sign where indicated. This CT Form must be signed by the individual who signed the bidder’s proposal. A completed CT Form must be submitted with your proposal, regardless of whether your proposal contains confidential information.

Failure to submit a completed CT Form with your bid is grounds for rejecting the proposal as non-responsive. See the Confidential Treatment Form and The Freedom of Information Act (FOIA) sections of the Proposal Instructions for additional information.

Section 1. CONFIDENTIAL TREATMENT IS NOT REQUESTED This section must be completed, signed, and submitted with the proposal if the bidder does not request confidential treatment of any material contained in the proposal.

By signing below, the bidder affirms that confidential treatment of material contained in their proposal is not requested.

210000001793 RFP Number

Economic Study on the Cost of Raising Children RFP Title

Signature

Date

Printed Name, Title, Company

Section 2. CONFIDENTIAL TREATMENT IS REQUESTED This section must be completed, signed, and submitted with the proposal if bidder requests confidential treatment of any material contained in the proposal. Submission of a completed CT Form is required to request confidential treatment.

Provide the information in the table below. Bidder may add rows or additional pages using the same format shown in the table. Bidder must specifically identify the information to be protected as confidential and state the reasons why protection is necessary.

The CT Form will not be considered fully complete unless, for each confidentiality request, the bidder: (1) Identifies the Proposal Page #, Section #, and Paragraph #, (2) Identifies whether the material is a Trade Secret (TS), Proprietary Financial Information (FI), or Proprietary Information (PI), (3) Explains the specific legal grounds that support treatment of the material as TS, FI, or PI. Bidders must provide a complete justification as to how the material falls within the scope of an applicable FOIA Exemption or relevant case law. Bidders must not simply cite to an applicable exemption or case name, and (4) Provides the contact information for the person at Bidder’s organization authorized to respond to inquiries by the State concerning the material.

(1) Proposal Page #, Section #, Paragraph # (2) Material is Trade Secret (TS), Proprietary Financial Information (FI), Proprietary Information (PI) (3) Applicable FOIA Exemption with Written Justification (4) Bidder Contact Information

By signing below, the bidder affirms that confidential treatment of material contained in their proposal is requested and has attached to this form a redacted “Public Copy” of the bidder’s proposal.

210000001793 RFP Number

Economic Study on the Cost of Raising Children RFP Title

Signature

Date

Printed Name, Title, Company vendor questions worksheet Provide a detailed response to each question. “You” and “company” refers to the bidder.

1. Contact Information

Bidder’s sole contact person during the RFP process. Include name, title, address, email, and phone number.

Person authorized to receive and sign a resulting contract. Include name, title, address, email, phone number and vendor customer code in SIGMA VSS.

2. Company Background Information

Legal business name and address. Include business entity designation, e.g., sole proprietor, Inc., LLC, or LLP.

What state was the company formed in?

Phone number.

Website address.

Number of years in business and number of employees.

Legal business name and address of parent company, if any.

Has bidder ever been debarred, suspended, or disqualified from bidding or contracting with any entity, including the State of Michigan? If yes, provide the date, the entity, and details about the situation.

Has your company been a party to litigation against the State of Michigan? If the answer is yes, then state the date of initial filing, case name and court number, and jurisdiction.

Within the last 5 years, has your company or any of its related business entities defaulted on a contract or had a contract terminated for cause? If yes, provide the date, contracting entity, type of contract, and details about the termination or default.

Describe partnerships and strategic relationships you think will bring significant value to the State.

State the physical address of the place of business that would have primary responsibility for this account if bidder is awarded a contract under this RFP.

3. Qualified Disabled Veteran/Service-Disabled Veteran-Owned Business Program

To demonstrate qualification as a qualified disabled veteran, you must provide:

(a) Proof of service and conditions of discharge (DD214 or equivalent);

(b) Proof of service-connected disability (DD214 if the disability was documented at discharge or Veterans Administration Rating Decision Letter or equivalent if the disability was documented after discharge); and

(c) Legal documents setting forth the ownership of the business entity.

In lieu of the documentation identified above, you may provide proof of certification by the National Veterans Business Development Council.

Enter the names of documents submitted with your proposal to demonstrate status as a qualified disabled veteran.

4. Participation in RFP Development or Evaluation

If you enter “YES”, you are not eligible for contract award or to work as a subcontractor for the awarded vendor.

If you enter “YES,” you are not eligible for contract award. An awarded vendor may not partner or subcontract with anyone to provide goods and services required under a resulting contract if that subcontractor or partner assisted in the development of this solicitation.

If you enter “YES”, you are not eligible for contract award or to work as a subcontractor for the awarded vendor.

5. Prior Experience

Describe at least 3 relevant experiences from the last 5 years supporting your ability to successfully manage a contract of similar size and scope for the work described in this RFP.

Experience 1

Company name.

Contact name.

Contact role at time of project.

Contact phone.

Contact email.

City.

State.

Zip.

1. Project name and description of the scope of the project.

2. What role did your company play?

3. How is this project experience relevant to the subject of this RFP?

Dollar value.

Start and end date (mm/yy – mm/yy)

Status (completed, live, other – specify phase)

Results obtained.

Experience 2

Company name.

Contact role at time of project.

City.

1. Project name and description of the scope of the project.

Dollar value.

Start and end date (mm/yy – mm/yy)

Status (completed, live, other – specify phase)

Results obtained.

Experience 3

Company name.

Contact role at time of project.

City.

1. Project name and description of the scope of the project.

Dollar value.

Start and end date (mm/yy – mm/yy)

Status (completed, live, other – specify phase)

Results obtained.

6. Standard Contract Terms

Bidder must affirm agreement with the attached Contract Terms. If not in agreement, written exceptions in accordance with the Evaluation Process section of the Proposal Instructions must be provided with Bidder’s proposal.

7. Michigan Economic Impact

Number of employees currently employed at locations within the State of Michigan.

Number of additional employees to be employed at locations within the State of Michigan if awarded this Contract (if any)

Minimum wage paid to employees employed at locations within the State of Michigan.

Average wage paid to employees employed at locations within the State of Michigan.

Percentage of employees employed at locations within the State of Michigan that are covered by employer-provided health insurance.

8. Other

Contractor must enter company name here.

Schedule A – statement of work contract activities Request for Proposal (RFP) No. 210000001793 Economic Study on the Cost of Raising Children This schedule identifies the anticipated requirements of any Contract resulting from this RFP. The term “Contractor” in this document refers to a bidder responding to this RFP, as well as the Contractor who is awarded the contract. The term “bidder” is used to identify where specific responses to the RFP are required.

The Contractor must respond to each requirement or question and explain how it will fulfill each requirement. Attach any supplemental information and appropriately reference within your response.

IMPORTANT NOTE TO CONTRACTORS/BIDDERS: There are specific requirements for which acceptance must be simply acknowledged through a checkbox(es), and others that require further explanation. Click one checkbox and complete the entries as identified.

BACKGROUND

The Friend of the Court Bureau (FOCB) within Michigan Supreme Court’s State Court Administrative Office (SCAO) provides guidelines for setting child support orders as part of the Title IV-D program administered by the Michigan Department of Health and Human Services’ Office of Child Support. Federal law requires states to review their formula for setting child support orders every four years and to use economic and other data as input into the development of the formula. Based on data collected and analyzed by the State, the FOCB is expected to revise the formula as needed to best serve Michigan’s families.

SCOPE

The underlying research on the economic numbers used to determine the cost of raising children are based on a study of family expenditures in intact families originally conducted in the early 1970s. The goal of this effort is to update the economic research on the needs of parents and children based on today’s family structures, including looking at costs when the parents live in separate households.

During the last quadrennial review, the State through its FOCB review committee, identified six objectives to study to allow the review committee to better conduct the next review.

Bidders are welcome to submit bids on any or all the following objectives.

1. Requirements

1.1. General Requirements

A. Objectives one through five must be completed by September 30, 2023. Objective six must be completed by September 30, 2022.

1. Objective 1: Economic Study. Analyze alternative methods and recent studies to determine the costs of raising children. Make recommendations on whether to update the economic assumptions in Michigan’s general care tables and ordinary medical amounts.

a. Such a study may use child-specific costs from surveys such as those conducted by the U.S. Department of Agriculture (USDA) calculating a fraction of family expenses attributable to the child(ren) using USDA or other data.

b. An alternative method may look at spending studies of childless households compared to those with children to determine costs at different income levels. This is the most frequently used method and is usually based on studies by Thomas Espenshade’s adaptation of earlier research by Ernst Engel or David Betson’s adaptation of earlier research by Erwin Rothbarth.

c. The bidder must review other adaptations of research and any new research on the costs of raising children, including studies based on non-intact families, and compare those with the most used methods. Based on those studies and any updates, the bidder must analyze the issues that support or do not support using the economic assumptions and recommend a method to update Michigan’s general care tables. The bidder is not confined to the existing studies that other state’s guidelines are based upon but must be able to discuss why other studies yield a better result.

d. The bidder must propose updates as necessary to adjust for current costs of living that have changed since the recommended method was last studied and any other changes necessary to adjust the amounts based on the parents’ incomes.

If the bidder intends to bid on Objective 1, bidder must describe how they comply with the requirements listed above:

Bidder Response:

List all exception(s):

2. Objective 2: Self-Support Reserve. Michigan allows a self-support reserve for low-income parents. Analyze methods used to provide separated parents with a self-support reserve. Provide a recommendation on the methods.

a. The bidder must review studies of basic subsistence levels necessary to support a person. Studies could address subsistence through levels at which a person is capable of having disposable income or savings, or at such level as a person is able to exercise some degree of discretion in paying living expenses.

b. The bidder must study the degree to which subsidies are able to raise the subsistence level income.

c. The bidder must also review studies concerning whether payment rates are positively or negatively impacted by lowering or raising support at certain percentages of income at subsistence levels.

If the bidder intends to bid on Objective 2, bidder must describe how they comply with the requirements listed above:

Bidder Response:

List all exception(s):

3. Objective 3: Parenting Time Costs. Analyze the duplicated and unduplicated child-related costs associated with parenting time for both the obligor and the obligee. Recommend methods to fairly address both costs. Recommend at how many days of parenting time or recommend an equation by which the formula should begin to address the costs of parenting time.

a. Michigan considers that payers of support will begin to assume more direct day-to-day costs of raising their children as parenting time days increase. At the same time, payees have certain residual costs even when they do not have their children. Child-related housing costs, food costs, transportation costs, and other costs may be duplicated in both parents’ homes.

b. The current formula addresses those costs by offsetting support each parent would pay to the other multiplied by the number of days each parent has the children. The formula uses an exponent of 2.5 for the number of days to create a gradual adjustment with a small adjustment when a parent has a smaller number of days and increasing more rapidly as the parents near equal time. In the past, the exponent of the calculation has been set at 2 for 128 overnights or more. An earlier adjustment reduced support by 50% for times when a payer had the children more than six consecutive overnights but less than 128 overnights in a year.

c. The bidder must examine studies to determine at what level of parenting time both parents begin to accumulate duplicated costs and the level of the duplicated costs. The bidder must recommend a formula to adjust child support for when and in an amount the costs are duplicated in two households.

If the bidder intends to bid on Objective 3, bidder must describe how they comply with the requirements listed above:

Bidder Response:

List all exception(s):

4. Objective 4: Health Care Costs. Analyze the costs of health care coverage, focusing on the gross and net costs of health care premiums and the percent of a family’s income used for health care (premiums and other standard costs - such as deductibles - to provide health care for a child in a given year). Also analyze the use of Health Reimbursement Arrangements (HRA), Flexible Spending Accounts (FSA), and Health Savings Accounts (HSA) and other similar health care financial arrangements, and their impact on the net cost to the parents’ health care costs. Provide recommendations on how to address health care in the formula.

a. The bidder must analyze how different health plans provide more coverage for children, provide more costs for parents, and reduce income available for support.

b. The bidder must recommend ways to maximize health care while still maintaining the maximum income to support the children.

c. The bidder must look at federal and other studies that determine the amount parents spend on their children and whether to include the amount in general care tables or as an add-on.

If the bidder intends to bid on Objective 4, bidder must describe how they comply with the requirements listed above:

Bidder Response:

List all exception(s):

5. Objective 5: Lifestyle Cost Study. Conduct a study or analyze recent studies concerning parental income and household expenditures of raising children in separate households. Provide child support formula recommendations based on the studies.

a. The study must include:

i. Lifestyle and societal perceptions of child support’s role in raising children post 2010.

ii. The role of parenting time in lifestyle and societal perceptions and how they influence the costs and need to account for them in a child support formula.

iii. The cost of “additional” children a parent supports in the parent’s household, and the impact of those costs on child support orders.

iv. How to fairly take into account a parent’s obligation to support all the parent’s children by adjusting the parent’s income, support order, creating a support reserve, or other methods.

v. Trends in costs of raising children in intact and separate households.

vi. Trends in income, expenses, and savings and their impact on families.

vii. Trends in childcare and their impact on supporting children.

b. Most child support guidelines are based on an attempt to determine how much parents spend on children. Generally, they try to determine the cost by examining the costs of adults without children and attempting to find at which point adults with children begin to spend the same for some aspect of their lives.

The difference is deemed to be the costs of raising children. The bidder must examine scholarly studies that address the role of child support in raising children and whether lifestyles of families call for a different treatment in determining the level of support parents contribute to their children’s support (e.g., food, savings, adult spending, or some other factor).

c. The bidder must look at the costs of raising children in non-intact families that are not part of the IV-D program and must look at changes in what is considered as part of the cost of raising children based on changes in households after 1975.

d. Historically, child support and parenting time have been deemed separate considerations. The bidder must examine scholarly studies to determine whether in-kind contributions by parents with parenting time, or the long-term health and societal value of parenting time merits adjustments in the contributions parents make to support their children.

e. Mixed families and second families make up more households than when the IV-D program started in 1976. The bidder must examine scholarly studies to determine whether the need to support new family structures merit some consideration in the base support amounts or their calculation.

f. The bidder must examine trends in income, expenses, and savings and whether they call into question assumptions in methods to determine the costs of raising children. The trends in childcare and its impact on a parent’s ability to support children should also be examined.

g. The bidder must compare any recent changes to the assumptions in the current child support formula (or formula assumptions generally in the IV-D programs nationally) and recommend how to modify the current Michigan Child Support Formula to begin to address these issues or additional studies to address issues discovered in this objective.

If the bidder intends to bid on Objective 5, bidder must describe how they comply with the requirements listed above:

Bidder Response:

List all exception(s):

6. Objective 6: Federal Data Elements. The following data elements were added to 45 CFR 302.56(h). Discuss how other states are gathering and analyzing these new data points. Recommend how to gather and use each data element.

a. Federally required data elements include:

i. Statewide labor market data (e.g. unemployment rates, employment rates, hours worked, and earnings) by occupation and skill level.

ii. Local labor market data by occupation and skill level.

iii. The impact of guideline policies on recipients and payers with family incomes below 200% of the federal poverty level.

iv. Factors that influence employment rates among non-custodial parents and compliance with child support orders.

v. Comparisons for payment based on case characteristics, including whether the order was entered by default, based on imputed income, or determined using the low-income adjustment for payer.

b. The bidder must compile information on how other states have begun to study the federally required data elements and recommend best practices for Michigan to study these elements.

If the bidder intends to bid on Objective 6, bidder must describe how they comply with the requirements listed above:

Bidder Response:

List all exception(s):

B. The State’s Program Manager will answer questions about the current formula. The State will supply the Contractor with available data in either Microsoft Excel or other mutually agreed format and a data definitions document that corresponds to the data elements in the file. The State will provide logistical support as necessary.

The State will meet with the selected Contractor to discuss the data elements in the files to ensure the Contractor has mastery of the data sets prior to analysis.

2. Staffing

2.1. Key Personnel

The Contractor must identify individuals who will be directly responsible for the day-to-day operations of the Contract (“Key Personnel”).

The State has the right to recommend and approve in writing the initial assignment, as well as any proposed reassignment or replacement, of any Key Personnel. Before assigning an individual to any Key Personnel position, Contractor will notify the State of the proposed assignment, introduce the individual to the State’s Project Manager, and provide the State with a resume and any other information about the individual reasonably requested by the State. The State reserves the right to interview the individual before granting written approval. In the event the State finds a proposed individual unacceptable, the State will provide a written explanation including reasonable detail outlining the reasons for the rejection. The State may require a 30-calendar day training period for replacement personnel.

Contractor will not remove any Key Personnel from their assigned roles on this Contract without the prior written consent of the State. The Contractor’s removal of Key Personnel without the prior written consent of the State is an unauthorized removal (“Unauthorized Removal”). An Unauthorized Removal does not include replacing Key Personnel for reasons beyond the reasonable control of Contractor, including illness, disability, leave of absence, personal emergency circumstances, resignation, or for cause termination of the Key Personnel’s employment. Any Unauthorized Removal may be considered by the State to be a material breach of this Contract, in respect of which the State may elect to terminate this Contract for cause under the Termination for Cause section of the Standard Contract Terms. It is further acknowledged that an Unauthorized Removal will interfere with the timely and proper completion of this Contract, to the loss and damage of the State, and that it would be impracticable and extremely difficult to fix the actual damage sustained by the State as a result of any Unauthorized Removal. Therefore, Contractor and the State agree that in the case of any Unauthorized Removal in respect of which the State does not elect to exercise its rights under Termination for Cause, Contractor will issue to the State the corresponding credits set forth below (each, an “Unauthorized Removal Credit”):

i. For the Unauthorized Removal of any Key Personnel designated in the applicable Statement of Work, the credit amount will be $10,000.00 per individual if Contractor identifies a replacement approved by the State and assigns the replacement to shadow the Key Personnel who is leaving for a period of at least 30-calendar days before the Key Personnel’s removal.

ii. If Contractor fails to assign a replacement to shadow the removed Key Personnel for at least 30-calendar days, in addition to the $10,000 credit specified above, Contractor will credit the State $100.00 per calendar day for each day of the 30-calendar day shadow period that the replacement Key Personnel does not shadow the removed Key Personnel, up to $10,000 maximum per individual. The total Unauthorized Removal Credits that may be assessed per Unauthorized Removal and failure to provide 30-calendar days of shadowing will not exceed $10,000 per individual.

Contractor acknowledges and agrees that each of the Unauthorized Removal Credits assessed above: (i) is a reasonable estimate of and compensation for the anticipated or actual harm to the State that may arise from the Unauthorized Removal, which would be impossible or very difficult to accurately estimate; and (ii) may, at the State’s option, be credited or set off against any fees or other charges payable to Contractor under this Contract.

The Contractor must identify the Key Personnel, indicate where they will be physically located, describe the functions they will perform, and provide current chronological résumés.

List all exception(s):

A. The Contractor must identify all Key Personnel that will be assigned to this contract in the table below which includes the following:

1. Name and title of staff that will be designated as Key Personnel.

2. Key Personnel years of experience in the current classification.

3. Key Personnel’s roles and responsibilities, as they relate to this RFP, if the Contractor is successful in being awarded the Contract. Descriptions of roles should be functional and not just by title.

4. Identify if each Key Personnel is a direct, subcontract, or contract employee.

5. Identify if each Key Personnel staff member is employed full-time (FT), part-time (PT) or temporary (T), including consultants used for the purpose of providing information for the proposal.

6. List each Key Personnel staff member’s length of employment or affiliation with the Contractor’s organization.

7. Identify each Key Personnel’s percentage of work time devoted to this Contract.

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B. The Contractor must provide detailed, chronological resumes of all proposed Key Personnel, including a description of their work experience relevant to their purposed role as it relates to the RFP.

Qualifications will be measured by education and experience with particular reference to experience on projects similar to that described in the RFP.

Bidder must provide the resumes and information as required above – either in this response box or identified here as an attachment to this RFP labelled as Key Personnel.

Bidder Response:

2.2. Organizational Chart

The Contractor must provide an overall organizational chart that details staff members, by name and title, and subcontractors.

Bidder must provide detailed information as required above – either in this response box or identified here as an attachment to this RFP labelled as Organizational Chart.

Bidder Response:

2.3. Disclosure of Subcontractors

If the Contractor intends to utilize subcontractors, the Contractor must disclose the following:

· The legal business name; address; telephone number; a description of subcontractor’s organization and the services it will provide; and information concerning subcontractor’s ability to…