RFP Benefit Decision Support Tool BIT Revisions 10.31.25.docx

STATE OF SOUTH DAKOTA

BUREAU OF HUMAN RESOURCES AND ADMINISTRATION

500 EAST CAPITOL AVENUE

PIERRE, SOUTH DAKOTA 57501-3182

State of South Dakota Benefit Decision Support Tool PROPOSALS ARE DUE NO LATER THAN 5:00 PM, CDT ON MONDAY, December 15, 2025

Peggy Canter EMAIL: Peggy.Canter@state.sd.us

READ CAREFULLY

PRIMARY CONTACT INFORMATION

Dated 10/16/23

1.0 GENERAL INFORMATION

1.1 PURPOSE OF REQUEST FOR PROPOSAL (RFP)

The South Dakota State Employee Benefits Program offers self-funded Medical Benefits to Active employees and COBRA participants. In addition, we offer an array of flexible benefits which currently include Basic and Supplemental Life Insurance, Dental Insurance, Vision Insurance, Hospital Indemnity, Accident Insurance, Critical Illness, Short Term Disability, Employee Assistance Plan, and a comprehensive Wellness program. We are issuing this RFP for a Benefits Decision Support Tool that leverages claims data to better assist employees. This tool must be available to support our Fiscal Year 2027 Annual Enrollment period, starting on or around April 15, 2026.

1.2 ISSUING OFFICE AND RFP REFERENCE NUMBER

The Bureau of Human Resources and Administration is the issuing office for this document and all subsequent addenda relating to it, on behalf of the State of South Dakota, Bureau of Human Resources and Administration. The reference number for the transaction is RFP #25RFP18343. This number must be referred to on all proposals, correspondence, and documentation relating to the RFP.

1.3 LETTER OF INTENT

A Letter of Intent is not required. Intent shall be expressed by submission of a proposal.

1.4 SCHEDULE OF ACTIVITIES (SUBJECT TO CHANGE)

Technical Review Final Vendor Selection January 5. 2026 – January 12, 2026 January 16, 2026

There will be a determination made based on the proposal whether finalist interviews will be required. The finalist interviews, if needed, could be either requested in person or virtually. The prospective Contractor will be required to participate in all interviews.

1.5 SITE VISITS

The State may require site visits for offerors. Site visits if desired will be arranged by Peggy Canter.

1.6 SUBMITTING YOUR PROPOSAL

All proposals must be completed and received by the Bureau of Human Resources and Administration by the date and time indicated in the Schedule of Activities.

Proposals received after the deadline will be late and ineligible for consideration.

The offeror must provide one (1) copy of their entire proposal, including all attachments, in Microsoft Word, EXCEL or PDF electronic format by email to Peggy.Canter@state.sd.us. The email, including attachments, must be limited to 20MB in size. The State will only accept electronic porposals via email.

All proposals must be signed, in ink or electronically, by an officer of the responder, legally authorized to bind the responder to the proposal. Proposals that are not properly signed may be rejected.

No proposal shall be accepted from, or no contract or purchase order shall be awarded to any person, firm or corporation that is in arrears upon any obligations to the State of South Dakota, or that otherwise may be deemed irresponsible or unreliable by the State of South Dakota.

1.7 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION – LOWER TIER COVERED TRANSACTIONS

By signing and submitting this proposal, the offeror certifies that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation, by any Federal department or agency, from transactions involving the use of Federal funds. Where the offeror is unable to certify to any of the statements in this certification, the offeror shall attach an explanation to their offer.

1.8 NON-DISCRIMINATION STATEMENT

The State of South Dakota requires that all contractors, vendors, and suppliers doing business with any State agency, department, or institution, provide a statement of non-discrimination. By signing and submitting their proposal, the offeror certifies they do not discriminate in their employment practices with regard to race, color, creed, religion, age, sex, ancestry, national origin or disability.

1.9 CERTIFICATION RELATING TO PROHIBITED ENTITY

For contractors, vendors, suppliers, or subcontractors who enter into a contract with the State of South Dakota by submitting a response to this solicitation or agreeing to contract with the State, or offeror certifies and agrees that the following information is correct:

The offeror, in preparing its response or offer or in considering proposals submitted from qualified, potential vendors, suppliers, and subcontractors, or in the solicitation, selection, or commercial treatment of any vendor, supplier, or subcontractor, is not an entity, regardless of its principal place of business, that is ultimately owned or controlled, directly or indirectly, by a foreign national, a foreign parent entity, or foreign government from China, Iran, North Korea, Russia, Cuba, or Venezuela, as defined by SDCL 5-18A. It is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to reject the bid or response submitted by the bidder or offeror on this project and terminate any contract awarded based on the bid or response. The successful bidder or offeror further agrees to provide immediate written notice to the contracting executive branch agency if during the term of the contract it no longer complies with this certification and agrees such noncompliance may be grounds for contract termination.

1.10 RESTRICTION OF BOYCOTT OF ISRAEL

For contractors, vendors, suppliers, or subcontractors with five (5) or more employees who enter into a contract with the State of South Dakota that involves the expenditure of one hundred thousand dollars ($100,000) or more, by submitting a response to this solicitation or agreeing to contract with the State, the bidder or offeror certifies and agrees that the following information is correct:

The bidder or offeror, in preparing its response or offer or in considering proposals submitted from qualified, potential vendors, suppliers, and subcontractors, or in the solicitation, selection, or commercial treatment of any vendor, supplier, or subcontractor, has not refused to transact business activities, has not terminated business activities, and has not taken other similar actions intended to limit its commercial relations, related to the subject matter of the bid or offer, with a person or entity on the basis of Israeli national origin, or residence or incorporation in Israel or its territories, with the specific intent to accomplish a boycott or divestment of Israel in a discriminatory manner. It is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to reject the bid or response submitted by the bidder or offeror on this project and terminate any contract awarded based on the bid or response. The successful bidder or offeror further agrees to provide immediate written notice to the contracting executive branch agency if during the term of the contract it no longer complies with this certification and agrees such noncompliance may be grounds for contract termination.

1.11 CERTIFICATION OF NO STATE LEGISLATOR INTEREST

Offeror (i) understands neither a state legislator nor a business in which a state legislator has an ownership interest may be directly or indirectly interested in any contract with the State that was authorized by any law passed during the term for which that legislator was elected, or within one year thereafter, and (ii) has read South Dakota Constitution Article 3, Section 12 and has had the opportunity to seek independent legal advice on the applicability of that provision to any Agreement entered into as a result of this RFP. By signing an Agreement pursuant to this RFP, Offeror hereby certifies that the Agreement is not made in violation of the South Dakota Constitution Article 3, Section 12.

1.12 MODIFICATION OR WITHDRAWAL OF PROPOSALS

Proposals may be modified or withdrawn by the offeror prior to the established due date and time.

No oral, telephonic, telegraphic or facsimile responses or modifications to informal, formal bids, or Request for Proposals will be considered.

1.13 OFFEROR INQUIRIES

Offerors may email inquiries concerning this RFP to obtain clarification of requirements. No inquiries will be accepted after the date and time indicated in the Schedule of Activities. Inquiries must be emailed to Peggy Canter at Peggy.Canter@state.sd.us with the subject line “RFP #25RFP18343”.

The State will respond to offeror’s inquiries (if required) via e-mail. In addition, all inquiries and the State’s response will be posted on the state’s e-procurement system. Offerors may not rely on any other statements, either of a written or oral nature, that alter any specification or other term or condition of this RFP. Offerors will be notified in the same manner as indicated above regarding any modifications to this RFP.

1.14 PROPRIETARY INFORMATION

The proposal of the successful offeror(s) becomes public information. Proprietary information can be protected under limited circumstances such as client lists and non-public financial statements. An entire proposal may not be marked as proprietary. Offerors must clearly identify in the Executive Summary and mark in the body of the proposal any specific proprietary information they are requesting to be protected. The Executive Summary must contain specific justification explaining why the information is to be protected. Proposals may be reviewed and evaluated by any person at the discretion of the State. All materials submitted become the property of the State of South Dakota and may be returned only at the State's option.

1.15 LENGTH OF CONTRACT

The State is requesting proposals for a contract period of three years effective April 1, 2026, through April 30, 2029, with the State having the option of two (2) one-year extensions for a total of 5 years maximum. A maximum fee guarantee is required for the initial three-year term of contract. Renewal extensions are not guaranteed to occur.

1.16 GOVERNING LAW

Venue for any and all legal action regarding or arising out of the transaction covered herein shall be solely in the State of South Dakota. The laws of South Dakota shall govern this transaction.

1.17 DISCUSSIONS WITH OFFERORS (ORAL PRESENTATION/NEGOTIATIONS)

An oral presentation by an offeror to clarify a proposal may be required at the sole discretion of the State. However, the State may award a contract based on the initial proposals received without discussion with the Offeror. If oral presentations are required, they will be scheduled after the submission of proposals. Oral presentations will be made at the offeror’s expense.

This process is a Request for Proposal/Competitive Negotiation process. Each Proposal shall be evaluated, and each respondent shall be available for negotiation meetings at the State’s request. The State reserves the right to negotiate on any and/or all components of every proposal submitted. From the time the proposals are submitted until the formal award of a contract, each proposal is considered a working document and as such, will be kept confidential. The negotiation discussions will also be held as confidential until such time as the award is completed.

1.18 Technical Review

At the State’s discretion, the State may require a technical review of the offeror based on the offeror’s proposal and response to the Security and Vendor Questionnaire.

2.0 STANDARD CONTRACT TERMS AND CONDITIONS

Any contract or agreement resulting from this RFP will include the State’s standard terms and conditions as listed below, the State’s standard Information Technology (“IT”) contract terms listed in Appendix A, along with any additional terms and conditions as negotiated by the parties:

2.1 The Contractor will perform those services described in the Scope of Work, attached hereto as Section 3 of the RFP and by this reference incorporated herein. The Contractor’s response to this RFP shall be considered part of the Work Plan.

2.2 The Contractor’s services under this Agreement shall commence on April 1, 2026 and end on April 30, 2029, unless sooner terminated pursuant to the terms hereof. The State will have the option to renew this Agreement for two (2) additional one (1) year periods as mutually agreed upon by all parties.

Renewal Options: At a minimum, renewal is contingent upon satisfactory performance of the contract by the Contractor as determined by the State. The Parties agree that the State may renew this Agreement at its option under the same terms and conditions, unless otherwise modified by a special contract term, condition, specification, or amendment. Notice of intent to renew will be given by the State to the Contractor at least 90 days prior to the end of the current contract term. If the notice of intent to renew is given, the Agreement will renew unless terminated by either party pursuant to the Termination provision of this Agreement.

2.3 The Contractor will not use State equipment, supplies or facilities. The Contractor will provide the State with its Employer Identification Number, Federal Tax Identification Number or Social Security Number upon execution of this Agreement.

2.4 The State will make payment for services upon satisfactory completion of the services. The TOTAL CONTRACT AMOUNT is an amount not to exceed $________________. The State will not pay Contractor's expenses as a separate item. Payment will be made pursuant to itemized invoices submitted with a signed state voucher. Payment will be made consistent with SDCL ch. 5-26.

2.5 The Contractor agrees to indemnify and hold the State of South Dakota, its officers, agents and employees, harmless from and against any and all actions, suits, damages, liability or other proceedings that may arise as the result of performing services hereunder. This section does not require the Contractor to be responsible for or defend against claims or damages arising solely from errors or omissions of the State, its officers, agents or employees.

2.6 The Contractor, at all times during the term of this Agreement, shall obtain and maintain in force insurance coverage of the types and with the limits as follows:

A. Commercial General Liability Insurance:

The Contractor shall maintain occurrence based commercial general liability insurance or equivalent form with a limit of not less than $1,000,000.00 for each occurrence. If such insurance contains a general aggregate limit it shall apply separately to this Agreement or be no less than two times the occurrence limit.

B. Professional Liability Insurance or Miscellaneous Professional Liability Insurance:

The Contractor agrees to procure and maintain professional liability insurance or miscellaneous professional liability insurance with a limit not less than $1,000,000.00.

C. Business Automobile Liability Insurance:

The Contractor shall maintain business automobile liability insurance or equivalent form with a limit of not less than $1,000,000.00 for each accident. Such insurance shall include coverage for owned, hired and non-owned vehicles.

D. Worker’s Compensation Insurance:

The Contractor shall procure and maintain workers’ compensation and employers’ liability insurance as required by South Dakota law.

Before beginning work under this Agreement, Contractor shall furnish the State with properly executed Certificates of Insurance which shall clearly evidence all insurance required in this Agreement. In the event a substantial change in insurance, issuance of a new policy, cancellation or nonrenewal of the policy, the Contractor agrees to provide immediate notice to the State and provide a new certificate of insurance showing continuous coverage in the amounts required. Contractor shall furnish copies of insurance policies if requested by the State.

2.7 While performing services hereunder, the Contractor is an independent contractor and not an officer, agent, or employee of the State of South Dakota.

2.8 Contractor agrees to report to the State any event encountered in the course of performance of this Agreement which results in injury to the person or property of third parties, or which may otherwise subject Contractor or the State to liability. Contractor shall report any such event to the State immediately upon discovery.

Contractor's obligation under this section shall only be to report the occurrence of any event to the State and to make any other report provided for by their duties or applicable law. Contractor's obligation to report shall not require disclosure of any information subject to privilege or confidentiality under law (e.g., attorney-client communications). Reporting to the State under this section shall not excuse or satisfy any obligation of Contractor to report any event to law enforcement or other entities under the requirements of any applicable law.

2.9 This Agreement may be terminated by either party hereto upon thirty (30) days written notice. In the event the Contractor breaches any of the terms or conditions hereof, this Agreement may be terminated by the State at any time with or without notice. If termination for such a default is effected by the State, any payments due to Contractor at the time of termination may be adjusted to cover any additional costs to the State because of Contractor's default. Upon termination the State may take over the work and may award another party an agreement to complete the work under this Agreement. If after the State terminates for a default by Contractor it is determined that Contractor was not at fault, then the Contractor shall be paid for eligible services rendered and expenses incurred up to the date of termination.

2.10 This Agreement depends upon the continued availability of appropriated funds and expenditure authority from the Legislature for this purpose. If for any reason the Legislature fails to appropriate funds or grant expenditure authority, or funds become unavailable by operation of law or federal funds reductions, this Agreement will be terminated by the State. Termination for any of these reasons is not a default by the State nor does it give rise to a claim against the State.

2.11 This Agreement may not be assigned without the express prior written consent of the State. This Agreement may not be amended except in writing, which writing shall be expressly identified as a part hereof, and be signed by an authorized representative of each of the parties hereto.

2.12 This Agreement shall be governed by and construed in accordance with the laws of the State of South Dakota. Any lawsuit pertaining to or affecting this Agreement shall be venued in Circuit Court, Sixth Judicial Circuit, Hughes County, South Dakota.

2.13 The Contractor will comply with all federal, state and local laws, regulations, ordinances, guidelines, permits and requirements applicable to providing services pursuant to this Agreement, and will be solely responsible for obtaining current information on such requirements.

2.14 The Contractor may not use subcontractors to perform the services described herein without the express prior written consent of the State. The Contractor will include provisions in its subcontracts requiring its subcontractors to comply with the applicable provisions of this Agreement, to indemnify the State, and to provide insurance coverage for the benefit of the State in a manner consistent with this Agreement. The Contractor will cause its subcontractors, agents, and employees to comply, with applicable federal, state and local laws, regulations, ordinances, guidelines, permits and requirements and will adopt such review and inspection procedures as are necessary to assure such compliance.

2.15 Contractor hereby acknowledges and agrees that all reports, plans, specifications, technical data, miscellaneous drawings, software system programs and documentation, procedures, or files, operating instructions and procedures, source code(s) and documentation, including those necessary to upgrade and maintain the software program, and all information contained therein provided to the State by the Contractor in connection with its performance of services under this Agreement shall belong to and is the property of the State and will not be used in any way by the Contractor without the written consent of the State. Papers, reports, forms, software programs, source code(s) and other material which are a part of the work under this Agreement will not be copyrighted without written approval of the State.

2.16 The Contractor certifies that neither Contractor nor its principals are presently debarred, suspended, proposed for debarment or suspension, or declared ineligible from participating in transactions by the federal government or any state or local government department or agency. Contractor further agrees that it will immediately notify the State if during the term of this Agreement Contractor or its principals become subject to debarment, suspension or ineligibility from participating in transactions by the federal government, or by any state or local government department or agency.

2.17 Any notice or other communication required under this Agreement shall be in writing and sent to the address set forth above. Notices shall be given by and to Peggy Canter, Director of Total Rewards on behalf of the State, and by ________________, on behalf of the Contractor, or such authorized designees as either party may from time to time designate in writing. Notices or communications to or between the parties shall be deemed to have been delivered when mailed by first class mail, provided that notice of default or termination shall be sent by registered or certified mail, or, if personally delivered, when received by such party.

2.18 In the event that any court of competent jurisdiction shall hold any provision of this Agreement unenforceable or invalid, such holding shall not invalidate or render unenforceable any other provision hereof.

2.19 All other prior discussions, communications and representations concerning the subject matter of this Agreement are superseded by the terms of this Agreement, and except as specifically provided herein, this Agreement constitutes the entire agreement with respect to the subject matter hereof.

3.0 SCOPE OF WORK

The State of South Dakota (the State) is issuing this request for proposal for all services related to a web-based decision support tool for the State’s employee benefits plan. The decision support tool will be required to provide guidance to employees through decision tree logic based on their specific benefit needs to enable them to make the best plan selection decisions possible. The decision logic will take into consideration plan design including out-of-pocket expenses, claims data from health plan, and employee contributions to the plans. This RFP is designed to allow the State to assess the core decision support services offered by bidders, as well as ancillary services offered by the vendor, if selected by the State as additional services. The decision support tool needs to be operational by no later than April 15, 2026, prior to the FY27 open enrollment (July 1, 2026-June 30,2027), which typically starts May 1.

The State of South Dakota sponsors a self-funded health plan for its employees. Eligible State employees and their families will have access to four options including a zero deductible health plan, a low deductible health plan, and two high deductible health plans. There are four tiers of coverage and premiums for the health plans and flexible benefits. • Employee only • Employee + child(ren) • Employee + spouse • Family (employee + spouse + child(ren). The South Dakota State Employee Benefits Program has partnered with Wellmark Blue Cross Blue Shield of South Dakota as the state’s third-party administrator for health and prescription drug claims. Additionally, telehealth benefits are offered through Doctor on Demand.

The following information is available online on the State’s employee benefits website https://www.sd.gov/bhra:

1. FY26 Benefit Guide;

2. FY26 Health Plan Summary Plan Descriptions;

3. LiveWell Program;

4. Employee Assistance Program;

5. Health Savings Accounts; and

6. Flexible Spending Accounts

7. Flexible Benefit Plan offerings (Dental Insurance, Vision Insurance, Supplemental Life Insurance, Accident Insurance, Critical Illness, Hospital Indemnity Insurance, Short Term Disability)

Plan Information The offeror must acknowledge that the benefits to be included in the decision support tool include:

1. Health Insurance

2. Dental Insurance

3. Vision Insurance

4. Short-term Disability Insurance

5. Accident Insurance Plan

6. Hospital Indemnity Plan

7. Critical Illness

8. Health Savings Accounts

9. Medical Flexible Spending Accounts

10. Dependent Care Flexible Spending Accounts

11. Health Reimbursement Accounts

12. Life Insurance

3.1 The offeror must acknowledge that access to the decision support tool will be provided 24 hours a day/7 days a week. Our intention is to have this tool available throughout the year to help new hires make benefit enrollment decisions as well as provide benefits education for our employees.

3.2 The offeror must clearly distinguish between the core product offering and additional services that are optional for the State’s consideration.

3.3 The offeror must describe the process for developing the client-specific aspects of the tool, including data required, timeline for development for implementation prior to May 1, 2026, and time requirements of State personnel based on the benefits to be included in the tool listed in Section 3.1.

3.4 The offeror must be able to provide utilization reports to the State on a periodic and ad hoc basis. Please provide sample reports.

3.5 The offeror must provide access to the tool as part of the RFP process for the State.

3.6 The offeror must describe the communication materials that will be developed for the State to promote the use of the tool among State employees and dependents.

3.7 The offeror must describe the technology available for access to the tool (i.e., computer, mobile technology, etc.).

3.9 The offeror must disclose subcontractors that are providing services included in the decision support tool and describe the specific services provided by the subcontractor.

4.0 PROPOSAL REQUIREMENTS AND COMPANY QUALIFICATIONS

4.1 The offeror is cautioned that it is the offeror's sole responsibility to submit information related to the evaluation categories and that the State of South Dakota is under no obligation to solicit such information if it is not included with the proposal. The offeror's failure to submit such information may cause an adverse impact on the evaluation of the proposal.

4.2 Offeror's Contacts: Offerors and their agents (including subcontractors, employees, consultants, or anyone else acting on their behalf) must direct all of their questions or comments regarding the RFP, the evaluation, etc. to the buyer of record indicated on the first page of this RFP. Offerors and their agents may not contact any state employee other than the buyer of record regarding any of these matters during the solicitation and evaluation process. Inappropriate contacts are grounds for suspension and/or exclusion from specific procurements. Offerors and their agents who have questions regarding this matter should contact the buyer of record.

4.3 Provide the following information related to at least three previous and current service/contracts, performed by the offeror’s organization, which are similar to the requirements of this RFP.

4.3.1 Name, address and telephone number of client/contracting agency and a representative of that agency who may be contacted for verification of all information submitted;

4.3.2 Dates of the service/contract; and

4.3.3 A brief, written description of the specific prior services performed and requirements thereof.

4.4 Describe the offeror’s firm’s history, size, locations and number of employees.

4.5 Location of the office from where consulting services would be provided.

4.6 Provide information on principal consultant who would be responsible for the State of South Dakota’s account, their professional background and experience. Specifically include individual’s experience dealing with public and private employers. If you expect to utilize other personnel to accomplish the duties specified in this RFP, provide the same information requested above for each of the personnel listed.

4.7 Address the principal consultant's experience with remuneration surveys (specifically public sector surveys)

4.8 Please provide a minimum of five references, including at least one that is a previous client and one that is a State or company of a similar size if available. The references need to include: reference name, contact name, address, phone number, e-mail address and length of time associated with your organization.

4.9 List other remuneration surveys for which the Consultant has completed. Provide name of client, contact name, address, telephone number and number of employees.

4.10 Describe any other facets of the offeror’s organization and the offeror’s firm’s experience that are relevant to this proposal that have not been previously described and that the offeror feels warrant consideration.

4.11 Proposals must list staff members, qualifications, and experience.

5 PROJECT DELIVERABLES/APPROACH/METHODOLOGY

The offeror must describe in detail how its proposed deliverables will meet the needs of the State as described in Section 3. At its sole discretion, the State may consider a solution that includes any of these deliverables or consider deliverables not originally listed.

An offeror must highlight any requirement in Section 3 or Section 5 that the offeror’s proposed deliverables cannot comply with, and the offeror must provide any suggested “work-around” to the requirement in question or a future date that the offeror will be able to comply with the requirement.

5.1 The offeror’s proposal must include a:

· Project Management Plan

· Project Schedule

· Risk Management Plan

· Data Conversion Plan, if applicable

· Requirements Traceability Matrix

· Communication Plan

· Testing Plan

· Training Plan

· Go-Live/Cutover Plan

· Post-Implementation Support (or Maintenance and Operations Plan)

In addition, the offeror’s proposal must include how its proposed deliverables will meet the following IT requirements (General, State Hosted, and Vendor Hosted). If the offeror’s proposal includes an option for a state hosted solution and an option for a vendor hosted solution, the offeror must provide a separate response for each proposed solution and how each solution will meet the requirements in Sections 3 and 5.

5.2 GENERAL IT REQUIREMENTS

5.2.1 Hosting and Data Access Requirements

The State will own all data tables created as a result of the Agreement. The State must have the ability to manipulate data, run reports as needed, pull code tables, access raw data, and develop dashboards as needed through Microsoft Power BI, ESRI, Tableau, and associated platforms.

The offeror’s proposal must describe how the State can access data housed within the proposed solution for ingestion into a state data repository, encompassing available methodologies (e.g., application programming interface (API), flat file), data formatting, frequency of updates, and any inherent constraints. Additionally, the offeror’s proposal must provide a high-level architecture diagram, as part of the solution diagram as required by Section 6.3.5, explaining the proposed solution's data provision mechanism.

If available, the offeror must provide separate, complete proposals for the offeror’s proposed solution to be hosted by the offeror, by the State on its internal infrastructure, and on the State’s Azure cloud hosted tenant as a PaaS solution. If any of the hosting options is not available, the offeror must clearly state that in the offeror’s proposal and provide an explanation as to why the hosting option is not available.

5.2.2 Single Sign-On Requirements

If the offeror’s proposal includes a deliverable with a login component, the proposal must describe how the deliverable will integrate with the State’s standard identity management service single sign-on (SSO).

The State’s SSO supports the industry standard OAuth 2.0 protocol. This identity management will handle password recovery and multi-factor authentication (MFA). MFA is required for all application Administrators and may be required for other users. The State’s SSO requirement and links to Microsoft’s official documentation can be found at:

https://www.sd.gov/bit?id=bit_standards_single_sign_on.

5.2.3 SSO Logout Initiation Requirements

· The offeror’s deliverable must provide users with a clear and easily accessible logout mechanism (e.g., a “Logout” button/link).

· The logout functionality of the offeror’s deliverable must trigger a session-based logout process utilizing the sign-out endpoint found in the metadata document provided during implementation.

5.2.4 Session Timeout Requirements

· The offeror’s deliverables must allow for a customizable, State-defined inactive user session timeout period.

· The offeror’s deliverables must notify users of impending session expiration five minutes before the timeout occurs, providing users with the option to extend the session.

5.2.5 Session Termination on Browser Close Requirement

The offeror’s deliverables must clearly notify users that closing the browser window or tab is not a valid logout because the SSO session may remain active. The notice must further notify users that they are responsible for explicitly logging out to ensure complete session termination.

5.2.6 Onboarding/Provisioning of Users Requirement

The offeror’s proposal must describe how new users are onboarded or provisioned into the deliverable. The offeror must provide an automated process for onboarding and offboarding users or must provide a process that requires minimal manual steps.

5.2.7 Interfaces and Integration Requirements

The offeror’s proposal must describe how the deliverables can adapt to business necessary interfaces using widely adopted open APIs and standards. Additionally, the offeror must make available or expose software services that would enable third-party developers to interface other business applications. The offeror must publish documentation for the software services in question. The offeror’s proposal must include a detailed description of system capability.

5.2.8 Web Application Vulnerability Scan Requirements

Any web-based deliverable must undergo a web application vulnerability scan (“Vulnerability Scan”). The Vulnerability Scan must identify misconfigurations or vulnerabilities such as those found in the OWASP Top Ten and must detail the certainty level of each finding.

Unless expressly indicated in writing, the State assumes all price estimates and bids are for the delivery and support of deliverables that will pass Vulnerability Scans. If the State determines that any aspect of the deliverable has security vulnerabilities that must be corrected, the State will inform the offeror of the nature of the issue and the offeror will be required to respond in writing regarding mitigation plans for the security vulnerabilities. If the deliverable does not pass the initial Vulnerability Scan or the offeror cannot provide a satisfactory Vulnerability Scan report, additional scans may be required to confirm the deliverable is secure.

State Hosted: For state hosted web-based deliverables, the Vulnerability Scan will be performed by the State and the offeror’s proposal should take that into consideration when responding to this RFP. As a condition of the resulting contract, the state hosted web-based deliverable will have to successfully pass the Vulnerability Scan prior to the deliverable being allowed to go in a production environment. Any offeror who responds to this RFP must accept such a contract term and must factor this security requirement into the offeror’s proposal.

Vendor Hosted: For vendor hosted web-based deliverables, any offeror who makes it to the “Tech Review” stage of the RFP process must provide the State a copy of the full report of the deliverable’s most recent Vulnerability Scan, a summary will not be accepted. The offeror should mark the vulnerability report as “Confidential” if it treats such a report as confidential information. If the offeror requires a Non-Disclosure Agreement (NDA) to be in place before the State may review the Vulnerability Scan report, the offeror must notify the State of such a requirement and resolve the signing of an NDA with enough time to respond to this RFP within the timeframe.

The offeror’s Vulnerability Scan report must consist of, at a minimum:

1. The system that was evaluated,

1. The categories that were evaluated (examples: SQLi, XSS, or RCE),

1. What were the general findings,

1. Technical detail of each issue found,

1. Remediation status of enumerated issues (if any).

The cost of any Vulnerability Scans done by the offeror or the offeror’s costs associated with the State performing Vulnerability Scans must be part of the offeror’s cost proposal. Failure of a deliverable to satisfactorily pass a Vulnerability Scan may result in the offeror’s proposal being rejected.

5.2.9 Test System Requirement

The offeror must include a test system for its application deliverables to be used at the discretion of the State. All resource costs, including licensing costs, associated with keeping the test system available must be detailed in the offeror’s cost proposal. If the offeror does not include the test system costs in the offeror’s proposal, then the offeror will bear the costs. The offeror will maintain the test system as a mirror image of the production system code base.

5.2.10 Internal Processes and Procedures Requirement

The offeror must use industry standard processes and procedures, such as a software development lifecycle, when planning the development, configuration, implementation, and support of a proposed deliverable. The offeror must outline their internal processes and procedures in their proposal, including, but not limited to, alerting key stake holders (such as: Operations, Systems Support staff, Desktop Support staff, Administrators, Help Desk personnel, Client Representatives, and others) of changes that will be occurring within State or offeror resources or systems.

5.2.11 Email Domain Name Requirement

If the offeror’s proposal includes a website or a web application that generates email and is hosted by the offeror or in the State’s cloud, the proposed website or web application cannot use state email domains as the originating domain name.

5.2.12 Banned Entity Requirement

The offeror’s proposed deliverables cannot include any hardware or hardware components manufactured by Huawei Technologies Company, Nuctech, or ZTE Corporation or any subsidiary or affiliate of such entities. This includes hardware going on the State’s network as well as the offeror’s network if the offeror’s network is accessing the State’s network or accessing State data. This includes Infrastructure as a Service, Platform as a Service, or Software as a Service situations. Any company that is considered to be a security risk by the government of the United States of America under the International Emergency Economic Powers Act, in a United States appropriation bill, an Executive Order, or listed on the US Department of Commerce’s Entity List will be included in this ban.

5.2.13 Access Management Requirement

If the offeror’s proposed deliverables require accounts allowing access to State systems, then the offeror must indicate the number of the offeror’s staff or subcontractors that will require access, the level of access needed, and if these accounts will be used for remote access. These individuals will be required to use Multi-Factor Authentication (MFA). The State’s costs in providing these accounts will be a consideration when assessing the cost of the offeror’s proposal. All costs associated with providing an account to the offeror will be borne by the agency.

5.2.14 Testing Requirements

The following testing may be required:

5.2.14.1 Regression Testing – Regression testing is the process of testing changes to computer programs to make sure that the older programming still works with the new changes.

5.2.14.2 Integration Testing – Integration testing is a software development process which program units are combined and tested as groups in multiple ways. In this context, a unit is defined as the smallest testable part of an application. Integration testing can expose problems with the interfaces among program components before trouble occurs in real-world program execution. Integration testing is also known as integration and testing (I&T).

5.2.14.3 Functional Testing – Functional testing is primarily used to verify that a piece of software is meeting the output requirements of the end-user or business. Typically, functional testing involves evaluating and comparing each software function with the business requirements. Software is tested by providing it with some related input so that the output can be evaluated to see how it conforms, relates or varies compared to its base requirements. Moreover, functional testing also checks the software for usability, such as ensuring that the navigational functions are working as required. Some functional testing techniques include smoke testing, white box testing, black box testing, and unit testing.

5.2.14.4 Performance Testing – Performance testing is the process of determining the speed or throughput of an application. This process can involve quantitative tests such as measuring the response time or the number of MIPS (millions of instructions per second) at which a system functions. Qualitative attributes such as reliability, scalability and interoperability may also be evaluated. Performance testing is often done in conjunction with load testing.

5.2.14.5 Load Testing – Load testing is the process of determining the ability of an application to maintain a certain level of effectiveness under unfavorable conditions. The process can involve tests such as ramping up the number of users and transactions until the breaking point is reached or measuring the frequency of errors at your required load. The term also refers to qualitative evaluation of factors such as availability or resistance to denial-of-service (DoS) attacks. Load testing is often done in conjunction with the more general process of performance testing. Load testing is also known as stress testing.

5.2.14.6 User Acceptance Testing – User acceptance testing (UAT) is the last phase of the software testing process. During UAT, actual software users test the software to make sure it can handle required tasks in real-world scenarios, according to specifications. UAT is one of the final and critical software project procedures that must occur before newly developed or customized software is rolled out. UAT is also known as beta testing, application testing or end user testing. In some cases, UAT may include piloting of the software.

5.3 STATE HOSTED SOLUTIONS (ON-PREM OR STATE CLOUD) REQUIREMENTS

5.3.1 Virtualized Environment Requirement

The offeror should state whether its proposed solution will operate in a virtualized environment. The offeror must identify and describe all differences, restrictions, or limitations of its proposed solution with respect to operation, licensing, support, certification, warranties, and any other details that may impact its proposed solution when hosted in a virtualized environment. This information must be included with the system diagram.

5.3.2 Network Vulnerability Scan Requirement

All deliverables hosted by the State will be subject to a network vulnerability scan by the State.

5.3.3 Load Balancing Requirement

The offeror must state if its proposed deliverables can be load balanced across multiple servers, which is a requirement for an application to operate within the State’s computing environment.

5.3.4 Use of Abstraction Technologies Requirement

The offeror must describe how its proposed deliverables use abstraction technologies, which is defined as the removal of the network control and forwarding functions that allows the network control to become directly programmable and the underlying infrastructure to be separated for applications and network services.

In addition, the offeror must affirmatively state that its proposed deliverables do not use hard-coded references.

5.3.5 Non-Standard Hardware and Software Requirement

State standard hardware and software should be utilized unless there is a reason not to. If the offeror’s proposal recommends using non-standard hardware or software, the proposal must very clearly indicate what non-standard hardware or software is being proposed and why it is necessary to use non-standard hardware or software to complete the project requirements. The costs of such non-standard hardware or software should be reflected in the offeror’s cost proposal. See https://bit.sd.gov/bit?id=bit_standards_overview, for lists of the State’s standard hardware and software. The offeror’s proposal must include a link to the offeror’s hardware and software specifications if one is available or explain why a link is not available. BIT must approve the use of any non-standard hardware or software before a contract can be awarded.

5.3.6 Vendor to State Hosted Transition

If, as part of the proposed project plan, the offeror intends to set up or configure a deliverable outside of State’s IT infrastructure, even in part, and then move said deliverable to the State’s infrastructure, then the offeror must provide a complete and detailed project plan on how that transition will occur. The offeror’s proposal should include any additional time and money considerations for the transition.

5.4 VENDOR HOSTED SOLUTION REQUIREMENTS

6.3.5 General Vendor Hosted Requirements

In the offeror’s proposal, the offeror must describe its:

· Data loss prevention methodology;

· Data sanitization methodology and procedures;

· Identity and access management;

· Security intelligence;

· Annual security training and awareness;

· Manual procedures and controls for security;

· Perimeter controls;

· Security certifications and audits.

6.3.5 Import and Export of Data Requirement

The offeror’s proposed deliverables must allow the State the ability to import or export the State’s data piecemeal or in its entirety at the State’s discretion without interference from the offeror. The data must be able to be exported in a non-proprietary format and must include information such as metadata (data structure descriptions, data dictionary, and data). The offeror’s proposal must describe how this functionality works within its deliverables.

6.0 PROPOSAL RESPONSE FORMAT

6.1 The offeror should provide one (1) copy of their entire proposal, including all attachments, in Microsoft Word or PDF electronic format by email to Peggy.Canter@state.sd.us.

6.2 The proposal should be page numbered and should have an index and/or a table of contents referencing the appropriate page number.

6.3 All proposals must be organized and tabbed with labels for the following headings:

6.3.1 RFP Form. The State’s Request for Proposal form (1st page of RFP) completed and signed.

6.3.2 Executive Summary. The one-to-two-page executive summary is to briefly describe the offeror's proposal. This summary should highlight the major features of the proposal. It must indicate any requirements that cannot be met by the offeror. The reader should be able to determine the essence of the proposal by reading the executive summary. Proprietary information requests should be identified in this section.

6.3.3 Detailed Response. This section should constitute the major portion of the proposal and must contain at least the following information:

6.3.3.1 A complete narrative of the offeror's assessment of the work to be performed, the offeror’s ability and approach, and the resources necessary to fulfill the requirements. This should demonstrate the offeror's understanding of the desired overall performance expectations.

6.3.3.2 A specific point-by-point response, in the order listed, to each requirement in the RFP. The response should identify each requirement being addressed as enumerated in the RFP.

6.3.3.3 A clear description of any options or alternatives proposed.

6.3.4 IT Requirements

The offeror’s proposal must highlight any requirement in Section 5 that the offeror’s proposed deliverables cannot comply with, and the offeror must provide any suggested “work-around” to the requirement in question or a future date that the offeror will be able to comply with the requirement.

6.3.5 Required Diagrams

6.3.5.1 System Diagram. The offeror’s proposal must include a system diagram which must provide specific details so that the State can understand the components, the system flow, and system requirements. The offeror must provide a system diagram for each hosting option. It is preferred that the diagram be provided as a separate document or attachment. The file must be named “(Your Name) System Diagram and Requirements”.