RFP 24-00006 Amd 1.pdf

WASHINGTON DEPARTMENT OF FISH AND WILDLIFE

REQUEST FOR PROPOSALS AMENDMENT

RFP No.: 24-00006 Date Issued: December 20, 2024

Title: Electronic Licensing System Amendment No.: 1

Amendment Date: December 20, 2024

Purpose: Amendment to RFP Attachment B Compensation Model

Change: The non-negotiable compensation model will remain valid until June 2032. After this date, the Monthly Payment Schedule will be subject to negotiation for each of the three optional 2-year contract extensions. The percentage increase in the Monthly Payment Schedule may not exceed the percentage increase in the US Consumer Price Index (CPI), calculated from a June 2032 base.

Amend to: See Attachment B Compensation Model (Amended) beginning on page 3.

Background: WDFW has received inquiries regarding how the Compensation Model was determined.

Following is a brief overview of the decision-making process.

The WILD system vendor has historically been compensated using a transaction fee-based model, with annual payments fluctuating in relation to total sales. During previous RFPs, vendors submitted bids specifying the percentage of the transaction fee they were willing to accept as payment. This approach made the vendor’s compensation bid a key factor in the agency’s final selection. For this RFP, WDFW decided to remove compensation from the scoring criteria to focus the evaluation on the quality of the proposed solutions, including the vendor's experience, technical capabilities, and ability to meet the project requirements.

The total annual compensation of $1,800,000 was determined by analyzing historical vendor payouts under the transaction fee model (see below) and adjusting slightly to reflect reduced vendor operating costs due to the removal of POC hardware, licensing paper, and support hardware. The initial hardware cost under the current contract was $2,243,150, and the annual cost for licensing paper is currently around $200,000 per year.

Annual Transaction Fee Payments:

• FY17: $1,217,364.12

• FY18: $1,978,187.54

• FY19: $1,920,586.22

• FY20: $2,230,800.13

• FY21: $2,204,384.62

• FY22: $1,979,226.75

• FY23: $2,033,417.91

• FY24: $2,026,393.07

In addition to the $1,800,000 fixed price, vendors may have an opportunity to generate additional revenue through WDFW-requested system enhancements. Since 2019, WDFW has paid its current vendor nearly $1,000,000 in additional revenue due to system enhancements and legislative mandates.

ATTACHMENT B

COMPENSATION MODEL (Amended)

1 REQUIRED MODEL – FIXED MONTHLY PAYMENT

The Washington Department of Fish and Wildlife (WDFW) is seeking a vendor to partner with us in providing an optimal solution for our internal and external customers. After a thorough review of past sales and trends in hunting and fishing participation, WDFW has decided to implement a monthly compensation model contingent upon the selected vendor meeting all Service Level Agreements (SLAs) each month. The monthly payments will commence after initial deployment of the system.

This arrangement safeguards the vendor from potential impacts of decisions made by the Washington State Legislature and WDFW Commission that may affect sales and participation. The monthly payments shown in the table below will be your only source of compensation and must cover all costs associated with all the services, including staff costs and any non-labor expenses necessary to accomplish the work.

No additional charges for tax, overhead, travel, lodging, meals, or other expenses shall be allowed.

Tax Liability: The vendor shall comply with the Washington State law requiring registrations and shall be responsible for payment of all taxes due.

This non-negotiable compensation model will remain in effect for the initial six years of the contract, excluding any extensions.

Monthly Payment Schedule

Month Payment January $100,000 February $100,000 March $100,000 April $300,000 May $300,000 June $150,000 July $150,000 August $150,000 September $150,000 October $100,000 November $100,000 December $100,000 Total Annual Compensation $1,800,000

The Monthly Payment Schedule remains valid until June 2032. Annual rate increases beyond that date will be subject to negotiation, but the percentage increase may not exceed the percentage increase in the US Consumer Price Index (CPI) for All Items, as calculated from a June 2032 base.

The Monthly Payment Schedule is firm and fixed for six years from the effective date of the contract.

Beginning seventy-two (72) months after the effective date of the contract, and for every twenty-four-month anniversary thereafter, the Contractor may request a price adjustment. Requests for price adjustments must be made in writing and received at least sixty (60) calendar days prior to the adjustment date (the seventy-second month anniversary of the effective date of the contract). In the event the Contractor fails to timely request a price adjustment, WDFW, at its sole discretion, may allow an untimely adjustment; provided, however, that such adjustment will not be effective for any time prior to WDFW’s price adjustment.

Price adjustments will be made in accordance with the percentage change in the United States Department of Labor, Bureau of Labor Statistics (BLS) Producer Price Index (PPI), PCU5416--5416--issued for Management and Technical Consulting Services of each contract term. The percentage difference between the PPI issued for PCU5416--5416--, Management and Technical Consulting Services 2020, and the PPI issued for each subsequent year will determine the maximum allowable adjustment of original contract prices.

No retroactive contract price adjustments will be allowed. The economic adjustment shall be calculated as follows:

New Price = Old Price x (Current Period Index/Base Period Index)

Changes occur due to legislation and business opportunities that enhance our sales and enforcement.

These changes often require system modification. Identify in the table below the number of hours annually that are included at no additional charge to address this need (development hours). Any additional hours would be billed according to the Hourly Rate Schedule section below.

Sample Pricing Table

I n it ial Co n t rac t

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Development Hours

Th ree Op t io n al 2 -Year Ex t en sio n s

Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Development Hours

2 HOURLY RATE SCHEDULE

WDFW requires the vendor to develop a highly flexible and manageable system that will provide WDFW with the ability to create, modify, and otherwise manage the items sold through the proposed system, without any intervention by the vendor. This high degree of flexibility should minimize the need to change the proposed system during the contract period. However, during this project, conditions may change, or WDFW or the vendor may uncover new requirements for the system that it was not possible to discover during the design and development phase of the initial system. A cooperative approach is required to effect such changes in a cost- neutral manner. Your response should include confirmation of this understanding.

It is understood that any system defects will be corrected by the vendor as part of a contract and will not be counted against any pool of hours or cost added changes.

The following basic changes are expected to be provided either by the requested administrative tools or programmer time included as part of the contract and will not be counted against any pool of hours or cost added. The detailed list of maintenance items to be covered at no additional cost will be determined after gaining a comprehensive understanding of the system.

a. Addition or deletion of Hunt Choices

b. Changes to start and stop dates

c. New licensing combinations

d. Small (10 – 15 question) surveys

e. Changes to the cost of licenses and other recreational license documents

f. Addition of new license categories, licenses, and recreational license documents

g. Creation of additional printed documents provided they follow an existing template

h. Changes to Internet sales web pages

i. Addition or deletion of purchase prerequisites using existing data fields

In the event authorized users cannot manage one or multiple items above, the vendor must be able to make the change by 5:00 AM of the fifth business day following the request for change. Example: A request made at 12:00 noon on a Monday would have to be available by 5:00 AM on Friday of the same week.

Sample Hourly Rate Table

Position Rate Weight Extended Rate Project Manager $ 13% $ System Analyst $ 23% $ Lead Analyst/Programmer $ 19% $ Data Architect $ 5% $ Programmer $ 15% $ Partner/Senior Executive $ 2% $ Test Analyst $ 18% $ Technician $ 3% $ Documentation Specialist $ 2% $ Combined Rate 100% $

Work needed outside the contractual statement of work will use the Hourly Rates Table. Projects will follow the process outlined in the Contract. Each of these performance-based amendments will be for actual hours worked with a not-to-exceed fixed price.

The hourly rate proposed remains valid until June 2032. Annual rate increases beyond that date will be subject to negotiation, but the percentage increase may not exceed the percentage increase in the US Consumer Price Index (CPI) for All Items, as calculated from a June 2032 base.

The hourly rates proposed are firm and fixed for two years from the effective date of the contract.

Beginning twenty-four (24) months after the effective date of the contract, and for every twenty-four-month anniversary thereafter, the Contractor may request a price adjustment. Requests for price adjustments must be made in writing and received at least sixty (60) calendar days prior to the adjustment date (the twenty-four-month anniversary of the effective date of the contract). In the event the Contractor fails to timely request a price adjustment, WDFW, at its sole discretion, may allow an untimely adjustment; provided, however, that such adjustment will not be effective for any time prior to WDFW’s price adjustment.

Price adjustments will be made in accordance with the percentage change in the United States Department of Labor, Bureau of Labor Statistics (BLS) Producer Price Index (PPI), PCU5416--5416--issued for Management and Technical Consulting Services of each contract term. The percentage difference between the PPI issued for PCU5416--5416--, Management and Technical Consulting Services 2020, and the PPI issued for each subsequent year will determine the maximum allowable adjustment of original contract prices.

No retroactive contract price adjustments will be allowed. The economic adjustment shall be calculated as follows:

New Price = Old Price x (Current Period Index/Base Period Index)