RFP 271 200000001072.pdf

STATE OF MICHIGAN

Department of Treasury

Address Updating, Direct Mail and Bulk Distribution Services Request for Proposal No. 271 200000001072

Solicitation Manager Name: Adam Zanetti

Direct Phone: 517-636-6817 Email: zanettia@michigan.gov

This is a Request for Proposal (RFP) for:

Address Updating & Direct Mail and Bulk Distribution of Income Tax Forms

RFP Timeline

Event Time Date

RFP issue date N/A 5/4/2020

Deadline for bidders to submit questions about this RFP

3:00 p.m. Eastern 5/11/2020

Anticipated date State will post answers to bidder questions on www.michigan.gov/SIGMAVSS

5:00 PM Eastern 5/15/2020

Proposal deadline* 3:00 p.m. Eastern 6/4/2020

Anticipated contract begin date N/A 9/1/2020

*A bidder’s proposal received at 3:00:01 p.m. Eastern is late and subject to disqualification.

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

http://www.michigan.gov/SIGMAVSS

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PROPOSAL INSTRUCTIONS

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

Document Description Bidder Response Instructions

Cover Page Provides RFP title and number, important dates, and contact information for Solicitation Manager

Informational

Proposal Instructions Provides RFP instructions to bidders

Informational

Confidential Treatment Form Required verification on whether bidder’s proposal contains confidential information

Bidder to complete and submit by proposal deadline

Vendor Questions Worksheet Questions to bidders on background and experience

Bidder to complete and submit by proposal deadline

Schedule A – Statement of Work

Statement of work Bidder to complete and submit by proposal deadline

Schedule B – Pricing Pricing for goods and services sought by the State through this

RFP

Bidder to complete and submit by proposal deadline

Attachment A – Safeguard Requirements of Confidential Tax Data

Safeguard requirements for handling, storage, and processing of confidential tax information for a Contractor and their subcontractor(s)

Bidder to review and acknowledge

Exhibit 1 – Security Requirements

State and Federal statutory and regulatory requirements and rules

Bidder to review and acknowledge

Exhibit 2 – Form 4621, What is an Incident?

Brochure detailing Incidents and Security Breaches, outlining the reporting process of such events.

Bidder to review

Contract Terms Provides legal terms for a contract awarded through this RFP

Deemed accepted by bidder unless information required in Section 8, Evaluation Process is submitted by proposal deadline

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.

3. RESERVED.

4. 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.

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5. QUESTIONS. Bidder questions about this RFP must be emailed to the Solicitation Manager Adam Zanetti (zanettia@michigan.gov) 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.

Q # Document and Section Page # Bidder Question

6. 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 VSS 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.

7. RESERVED.

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

Technical Evaluation Criteria Weight

1. Service Capabilities - Schedule A – Statement of Work (excluding Section 1.A.6)

2. Vendor Question Worksheet – Section 5 - State of Michigan Experience and Prior Experience

3. Vendor Question Worksheet – Excluding Section 5 5

4. Acceptance of Schedule A - Section 1.A.6 – Confidentiality and Data File Destruction

Total 100

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: https://www.michigan.gov/dtmb/0,5552,7-358-82550_85746_48677- 412612--,00.html.

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 mailto:zanettia@michigan.gov http://www.michigan.gov/SIGMAVSS http://www.michigan.gov/SIGMAVSS http://www.legislature.mi.gov/(S(12rtpbjmznw1mn4opquus2gz))/mileg.aspx?page=getObject&objectName=mcl-18-1261 https://www.michigan.gov/dtmb/0,5552,7-358-82550_85746_48677-412612--,00.html https://www.michigan.gov/dtmb/0,5552,7-358-82550_85746_48677-412612--,00.html

Version 8 (11/2019) 4 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.

9. 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.

10. 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.

11. 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 Section 8, Evaluation Process, if the State receives only one proposal.

12. 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 Section 8, Evaluation Process, and price, as demonstrated by the proposal. The State will post an Award Recommendation and Evaluation Synopsis on www.michigan.gov/SIGMAVSS .

13. 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 to HansesB@michigan.gov (Cc zanettia@michigan.gov) no later than 5:00 PM EST, 5 calendar days after posting the Award Recommendation and Evaluation Synopsis or by 5:00 PM EST 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 on the SIGMA VSS system.

http://www.michigan.gov/SIGMAVSS http://www.michigan.gov/SIGMAVSS mailto:HansesB@michigan.gov mailto:zanettia@michigan.gov

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

14. 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.

15. 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.

16. 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.

a. 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.

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

ii. 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.

http://www.michigan.gov/micontractconnect

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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.

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CONFIDENTIAL TREATMENT FORM (CT 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 Section Error! Reference source not found. 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 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 the proposal is not requested.

RFP Number RFP Title

Signature Date

[Printed Name] [Title] [Company]

Section 2. Confidential Treatment Is Requested

The 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 whether the material is a trade secret (TS), financial information (FI), or proprietary information (PI); (2) explains the specific legal grounds that support treatment of the material as TS, FI, or PI; and (3) provides the contact information for the person at bidder’s organization authorized to respond to inquiries by the State concerning the material. Bidders must not simply cite to an applicable act or case name; rather, bidders must provide a complete justification as to how the material falls within the scope of an applicable act or relevant case law.

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CONFIDENTIAL TREATMENT FORM (CT FORM)

RFP page #, paragraph #, and section #

State whether the material is a trade secret (TS), financial information (FI), or proprietary information

(PI)

Explain the specific grounds in State or other applicable law which supports treatment of the material as TS, FI, or PI. Do not simply cite to the applicable act. Provide a complete justification as to how the material falls within the scope of the applicable act or relevant case law.

Provide the bidder contact information

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

RFP Number RFP Title

Signature Date

[Printed Name] [Title] [Company]

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VENDOR QUESTIONS WORKSHEET

Provide a detailed response to each question. “You” and “company” refers to the bidder.

Information Sought Bidder Response

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 there been a recent change in organizational structure (e.g., management team) or control (e.g., merger or acquisition) of your company? If the answer is yes: (a) explain why the change occurred and (b) how this change has affected your company.

Discuss your company’s history. Has growth been organic, through mergers and acquisitions, or both?

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.

State your gross annual sales for each of the last 5 years.

If receiving a contract under this RFP will increase your gross revenue by more than 25% from last year’s sales, explain how the company will scale-up to manage this increase.

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

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Under MCL 18.1261, a “qualified disabled veteran” means a business entity that is 51% or more owned by 1 or more veterans with a service-connected disability. A “service-connected disability” means a disability incurred or aggravated in the line of duty in the active military, naval, or air service as described in 38 USC 101(16).

Are you a qualified disabled veteran?

Enter YES or NO.

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

Did your company, an employee, agent, or representative of your company, or any affiliated entity participate in developing any component of this solicitation? For purposes of this question, business concerns, organizations, or individuals are affiliates of each other if, directly or indirectly: (1) either one controls or has power to control the other or (2) a third-party controls or has the power to control both. Indicia of control include, but are not limited to, interlocking management or ownership, identity of interests among family members, shared facilities or equipment, and common use of employees.

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

If you are awarded a contract under this solicitation, in order to provide the goods or services required under a resulting contract, do you intend to partner or subcontract with a person or entity that assisted in the development of this solicitation?

If you entered “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.

Will your company, or an employee, agent, or representative of your company, participate in the evaluation of the proposals received in response to this

RFP?

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

5. State of Michigan Experience and Prior Experience

Does your company have experience working with the State of Michigan? If so, please provide a list (including the contract number) of the contracts you hold or have held with the State for the last 10 years.

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 http://www.legislature.mi.gov/(S(b2idoibk3wwdcrok5bm0s021))/mileg.aspx?page=getObject&objectName=mcl-18-1261

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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 name Contact role at time of project

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

2. What role did your company play?

Status (completed, live, other – specify phase)

Results obtained

Experience 3

Company name Contact name Contact role at time of project

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

2. What role did your company play?

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

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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

Average wage paid to employees employed at locations

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

8. Other

Abusive Labor Practices. The Contractor certifies that it will not furnish any Deliverable that was produced fully or partially by forced labor, forced or indentured child labor, or indentured servitude.

Enter YES or NO.

Certification of Michigan Business- Public Act 431 of 1984, Sec. 268. I certify that the company has, pursuant to the provisions of Sec 268 of Public Act 431 of 1984, filed a Michigan Business Tax Corporate Income Tax Return. I certify that the company has, pursuant to the provisions of Sec 268 of Public Act 431 of 1984, filed a Michigan Income Tax return showing income generated in, or attributed to the State of Michigan. I certify that the company has, pursuant to the provisions of Sec 268 of Public Act 431 of 1984, withheld Michigan Income Tax from compensation paid to the company’s owners and remitted the tax to the Michigan Department of Treasury.

Enter YES or NO.

Iran Linked Business- Public Act 517 of 2012. I certify that the Company is not an Iran-Linked business as defined by Public Act 517 of 2012.

Enter YES or NO.

Clean Corporate Citizen. I certify that the Company is a Clean Corporate Citizen as defined by the Environmental Protection Act, 1994 PA 451.

Enter YES or NO.

Convict Labor. The Contractor certifies that if using convict labor, it is complying with all applicable state and federal laws and policies.

Enter YES or NO.

SOM Debt/Tax Payment. All SOM tax/debts. I certify that all applicable State of Michigan taxes are paid, and that no outstanding debt is owed to the State of Michigan.

Enter YES or NO.

Authorization to Verify Information provided by Vendor. I authorize the State to verify that all information provided in this registration, in bidding and contracting documents, and any attachments or supplement documents and processes are accurate.

Enter YES or NO.

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Request For Proposal No.

271 200000001072

SCHEDULE A

STATEMENT OF WORK

CONTRACT ACTIVITIES

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.

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

BACKGROUND

The Department of Treasury is responsible for administration of the Individual and Corporate Income Tax which includes address standardizing and cleansing, direct mailing and bulk distribution of tax forms and books.

SCOPE

The Contractor will process approximately 4.5 million taxpayer addresses through the Coding Accuracy Support System (CASS) or a similar application that standardizes the addresses and return the file to Department of Treasury (Treasury). The Contractor will also provide direct mail and bulk distribution fulfillment services necessary to complete the mailing and distribution of State of Michigan (State) and City of Detroit (City) tax forms and booklets.

1. REQUIREMENTS

A. General Requirements

1. Plant Inspection The State reserves the right to visit the plant in which the work is produced at any time during the life of any contract deriving from this Request for Proposal. The Contractor must accommodate the State in examining facilities and equipment. The Program Manager will coordinate visitation details with the Contractor prior to any visit.

Bidder shall check only 1 box below, and identify exception(s)

I have reviewed the above requirement and agree with no exception.

I have reviewed the above requirement and have noted all exception(s) in column to the right.

List all exception(s)

2. Overtime Requests for overtime payment for any item on this Contract will not be paid unless the Program Manager specifically requests overtime and Treasury authorizes via a purchase order before work is performed in overtime status.

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3. Legislative or Treasury Delays The Program Manager cannot authorize printing or mailing until legislation is complete. If pending legislation delays the Program Manager’s ability to authorize printing or mailing, the Contractor is not relieved of the obligation to provide service in the number of days originally estimated for each item.

Treasury is not liable for the cost of any downtime incurred if legislative delays make it impossible for the Program Manager to authorize printing or mailing.

4. Lack of Need of Service At any time, Treasury may determine that an item is no longer needed. Treasury is not obligated to pay for any services that it does not authorize via a Purchase Order (PO) or Delivery Order (DO).

5. Quality Assurance Contractor must maintain and demonstrate a thorough quality assurance program. Any damaged, mutilated, illegibly addressed or incorrectly addressed mailings due to Contractor error MUST be corrected and new mailings processed at Contractor's expense (including printing costs). Provide a copy of procedures used to ensure quality standards with the bid response.

The Bidder has supplied a copy of their quality standards and procedures.

A copy of Bidder’s quality standards and procedures has not been supplied with their bid response. .

6. Confidentiality and Data File Destruction

a. To preserve the confidentiality of the data provided by Treasury, all data must remain in the Contractor's plant or in a Subcontractor's plant. Subcontractors are subject to the same safeguard requirements of confidentiality provisions as the Contractor (Attachment A). Contractor and Subcontractor personnel handling or that have access to confidential data will be required to sign a Vendor, Contractor, Subcontractor Confidentiality Agreement (Form 3337) provided by Treasury (Attachment A).

All agency data must be protected from unauthorized release. All electronic data must be kept under reasonable security to prevent their release to any unauthorized person (see Attachment A). UNDER NO

CIRCUMSTANCES SHOULD ANY DATA BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL

FROM TREASURY.

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b. All electronic data files, including original duplicated files, must be erased/destroyed three (3) business days following the Program Manager’s written request. After the destruction of the requested file(s), the Contractor must provide a Certificate of Destruction to the Program Manager verifying the data was erased/destroyed five (5) business days after the original written request. The Certificate of Destruction must include the data file name(s), date of destruction and the person who certified the destruction.

Within 60 days of execution of the contract, the State requires the Contractor sends a draft Certificate of Destruction for review and approval by the Program Manager.

See Safeguard Requirements of Confidential Tax Data (Attachment A).

B. Address Updating

1. Annually, Treasury provides approximately 4.6 million taxpayer address records in an electronic file for address updating.

a. Treasury will provide a data file for address updating. Contractor must process the data file through

CASS, or a similar application that standardizes addresses to USPS standards, and parse out the standardized address.

If Bidder does not use CASS, Bidder must name and describe the address standardizing application employed.

Bidder Response:

b. Treasury will need the file returned in the same format provided to the Contractor. Each taxpayer record must include the parsed standardized address information in each designated field of the file layout, as long as CASS, or similar application, provided a standardized address. If CASS, or similar application, doesn’t work on the address Treasury provided, the fields should be returned space filled. This file must be formatted to ANSI69DEFAULT, which is an ANSI69 format and a standard file name

c. Contractor must have an SFTP or SSL Connection to transmit the returned file (TC06702Q02) to Treasury. File must be transmitted no later than December 15 or no more than ten business days after the Contractor receives the production file.

d. Contractor must name the returned file TC06702Q02 and the returned file should not be zipped.

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2. Tentative Address Updating Schedule

Treasury sends test data file to Contractor .................................................................................. November 15 Contractor confirms test file receipt and record counts in file ....................................................... November 16 Contractor provides test return file * ............................................................................................ November 26 Treasury approves update test file; releases production file to Contractor .................................... December 1 Contractor confirms production file receipt and record counts in file .............................................. December 2 Contractor provides production return file .................................................................................... December 12

* A test update file must be returned to Treasury for approval before the final production file is released to the Contractor

C. Direct Mailing of Forms

Treasury requires the mailing of three tax booklets directly to taxpayers for their use in filing taxes.

1. Booklet Specifications

All books are 8.5” x 11” with a self-cover. All books are either bound by glue or stitched.

2. Quantity Estimate

Book Name Annual Estimated Quantity Number of Pages

MI1040 Book 75,000 64

MI1040 CR7 Book 240,000 20

City Corp Book 4,000 16

*Quantities are estimates and subject to change.

3. Tentative Direct Mailing Schedule

Treasury sends test direct mail data file to Contractor ................................................................. November 15 Contractor confirms test file receipt and record counts in file ....................................................... November 16 Contractor provides sample test PDFs of addresses from test data file ...................................... November 26 Treasury approves sample test PDFs .......................................................................................... November 30 Treasury releases production direct mail data files to Contractor .................................................. December 1 Contractor confirms production file receipt and record counts in file .............................................. December 2 Contractor provides production PDFs of addresses from production data file ............................. December 12 Printers begin delivering tax materials to Contractor .............................................................. December 12-22 Treasury approves production PDFs ........................................................................................... December 15 Contractor provides a list of undeliverable addresses to Program Manager ................................ December 15

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Contractor completes sorts and processes files for mailing ......................................................... December 20 Addressing of tax materials begins .............................................................................................. December 22 First tax materials delivered to post offices .................................................................................. December 27 Contractor provides final inventory report of materials ................................................................. December 30

The print vendors are scheduled to begin delivering tax materials between December 12 and December 22.

Legislative action could delay this delivery. Treasury’s Program Manager will keep the Contractor apprised of when to expect material.

4. Cleansing of Addresses

a. Treasury will provide separate files for each booklet to be mailed. Contractor must process each data file through the National Change of Address (NCOA) application.

b. The NCOA application must update addresses when address changes have occurred after May 1st of the mailing tax year.

c. The NCOA application must use the “individual” (vs. “family” or “business”) move type match logic.

d. Following the NCOA process, the Contractor must provide a file of undeliverable addresses to the

Program Manager. The Contractor must not mail materials to these addresses unless otherwise instructed by the Program Manager.

e. Contractor must have the ability to provide standard NCOA move reports to the Program Manager if requested by the Program Manager

5. Postal Sorting

a. The Contractor must match the mailing lists with the USPS Delivery Sequence File (DSF) and sort the file to maximize postal discounts. For these items, Treasury anticipates the file to sort as follows:

Item 1 (MI-1040 Book) Standard Enhanced Carrier Route High Density rate

Item 2 (MI-1040 CR7 Book) Standard Enhanced Carrier Route High Density rate

Item 3 (City Corp Book) Standard 3/5-Digit rate

b. All records must be processed through CASS to determine postal discount eligibility.

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c. Currently, Enhanced Carrier Route sorting provides the lowest postal rates for this type of mail. It is possible that during the Contract, the USPS will introduce a lower postal rate for pre-barcoded carrier-route mail. The Contractor must have the ability to provide this service, if requested, and must notify the Program Manager of current postal rates.

6. Postage Payment

Contractor must be able to accommodate USPS verification of mail in the Contractor’s facility. All mail must be verified at the facility before being trucked to the Bulk Mail Centers (BMCs) or Sectional Center

Facilities (SCFs). All postage will be paid from a single State postal permit. Permits established by

Treasury at USPS offices may be used for Treasury mail only. Any unauthorized use of these permits will be considered a breach of contract, resulting in repayment of funds and contract cancellation.

7. Production Records

Contractor must provide the Program Manager with a copy of each U.S. Postal Service Form 3602 as soon as delivery of each item is complete. Each USPS form 3602 is to contain no more than one item clearly identified with the name of the book being mailed. Contractor must record daily product received from the print Contractors and provide to the program Manager upon request.

8. Addressing

The direct mail addresses must accommodate six lines (four lines of address, one line of variable data

(as requested), and one line of postal information. Address information must be printed in a 10 – 12-point font range and meet USPS Postal Addressing Standards. The Program Manager must be provided a test sample for approval before use.

a. Addressing Standards Reference

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The Bidder is encouraged to use link below to review USPS Postal Addressing Standards:

https://pe.usps.com/text/pub28/welcome.htm

9. Production

The target date for first mail drop to the post office is December 27. Treasury is not bound to this date, but it is highly unlikely mailing will begin before this date.

Contractor may receive several tax materials at the same time from Treasury’s print Contractors.

Items must be prepared for mailing at a rate of 100,000 books/day as they are received from the printer.

Delivery must be complete within seven days of receiving the first shipment of books. It is possible that books could be delivered from the printer early; in this situation, the Contractor may have more than the estimated time to complete addressing and may need to hold the addressed books a before mailing.

If approval to print tax materials is delayed past December 31, the Contractor must work with Treasury to find a suitable solution such that mailing can be increased to a rate of 200,000/day.

10. Delivery

Contractor is responsible for arrangement of materials to be delivered to USPS.

11. Storage

The Contractor must store tax materials from the time materials are received through completion of direct mail and bulk distribution. In April, the Program Manager will instruct the Contractor to either destroy or ship excess tax materials to the State.

https://pe.usps.com/text/pub28/welcome.htm

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D. Bulk Distribution of Forms

In early December, Treasury will forward to the Contractor a customer database and a list of the forms.

Forms will be delivered directly to the Contractor in mid-December and early January. All quantity estimates are subject to change.

1. Quantity Estimate

Form ID Form Name Page Count

Distribution Quantity

# Forms/Box

00 MI1040 Book 64 156,000 100

02 MI1040 CR7 Book 20 90,000 200

05 MI1040 CR Form 4 44,000 1,250

07 MI1040 CR7 Form 2 4,100 2,500

51 MI1040 and Schedule W Form 4 73,000 1,250

52 Schedule 1 and 4884 Form 4 32,000 1,250

55 Identity Theft Brochure 1 26,000 25/pkt

80 City Instruction Book 32 9,000 100

81 City Resident Return Form 2 3,200 2,500

82 City Non-Resident Return Form 4 1,500 2,500

TOTAL 438,800

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2. Site Breakdown

Libraries Post

Offices

Dept. of Health & Human

Services Offices

Treasury Field

Offices

Volunteer Sites

Number of Sites 523 165 75 10 231

MI1040 Book X X X X X

MI1040 CR7 Book X X X

MI1040/Sch W Form X X X X

MI1040 CR Form X X X X

Schedule 1/4884 Form X X X X

MI1040 CR7 Form X X

Identity Theft Brochure X X X X

City Instruction Book X X

City Resident Return Form X X

City Non-Resident Return Form X X

Estimate of Total Forms Distributed = 438,800

3. Tentative Distribution Schedule

Treasury releases customer data to Contractor ............................................................................. December 5 Treasury releases draft mailing sample/packing slip to Contractor .............................................. December 12 Contractor submits test mailing sample/packing slip to Treasury ................................................ December 19 Printers begin delivery of booklets to Contractor ......................................................................... December 21 Contractor notifies Treasury’s Program Manager of received tax materials ...................... December – January Mailing address/packing slip approved; production authorized .......................................................... January 5 Contractor fulfills all initial orders .................................................................................. January 15-January 21 Contractor fulfills reorders as needed ............................................................................. February 1 – April 10 Contractor provides report of undeliverable deliveries .......................................................................... March 1 Contractor provides final inventory report of materials ........................................................................... April 15 Contractor recycles and/or ships remaining materials to Treasury ........................................................ April 22

An order must be defined as one delivery to a specified location. One delivery may include several different tax materials.

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4. Receipt and Storage of Inventory

The print vendor will begin delivering printed tax materials to the Contractor’s warehouse/distribution center on or about December 21 and continue through early January. Note: Printing vendors are instructed to label boxes with the form name, tax year, Treasury contract release number, and quantity contained in the box (box weight is not to exceed 40# per box).

Contractor must inventory forms as received and notify Treasury of form quantity and receipt date.

5. Order Fulfillment/Process

Bulk distribution must begin when tax materials begin to be delivered and must be completed six business days after all materials have arrived. Treasury may elect to have the Contractor begin order fulfillment earlier than stated and advanced notice will be provided.

Subsequent orders must be processed within one business day of receiving the order from Treasury.

6. Initial Orders/Data Transmission

Initial orders will be communicated to the Contractor via an electronic file provided by Treasury. The Program Manager will work with the Contractor to define the contents and format of the data file.

Contractor must generate test orders to be approved by the Program Manager prior to actual production.

7. Packing/Shipping

The Contractor must assure boxes are fully packed for shipping. Form quantities may be commingled to create a full box to a single customer and the Contractor may commingle with other customer mailing pieces to benefit from presort discounts (commingled boxes must be labeled as such).

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8. Packing Slip/Mailing Address Contractor must provide to the Program Manager a sample of addresses and packing slips that will accompany the shipments. The Program Manager may request that a specific message be printed with an address and/or packing slip. For multiple boxes to a single customer, Contractor must identify on the outside of the shipment which box/envelope contains the packing slip. Treasury may request an additional flyer (8.5” x 11”) be inserted in addition to the packing slip.

9. Subsequent Orders

Subsequent orders may be submitted to the Contractor by Treasury; however, the majority of the distribution volume is the result of the initial order.

10. Mailing/Shipping

Shipments to U.S. Post Offices must be shipped parcel post.

Contractor must use The State of Michigan’s United Parcel Service (UPS) account to fund UPS shipments, eliminating the need for the Contractor to fund UPS shipments. Should Contractor neglect to use the State of Michigan’s UPS account for UPS shipments, the State reserves the right to deny payment for said charges.

11. Back Order Processing

It is anticipated that no back-order processing…