RFP BPM DBM Billing and COBRA Administration 7.15.2026.pdf

DBM BILLING AND COBRA

ADMINISTRATION SYSTEM

Solicitation #: BPM057552

RFP Document

RFP for Department of Budget and Management Page 1 of 56

STATE OF MARYLAND

DEPARTMENT OF BUDGET AND MANAGEMENT (DBM)

REQUEST FOR PROPOSALS (RFP)

BILLING AND CONSOLIDATED OMNIBUS BUDGET RECONCILIATION

ACT (COBRA) ADMINISTRATION SYSTEM

RFP NUMBER BPM057552

ISSUE DATE: JULY 15, 2026

A Prospective Offeror that has received this document from a source other than eMarylandMarketplace Advantage (eMMA) https://procurement.maryland.gov should register on eMMA https://emma.maryland.gov/

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO RESPOND TO THIS SOLICITATION.

https://procurement.maryland.gov/ https://emma.maryland.gov/

Solicitation #: BPM057552

RFP Document

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STATE OF MARYLAND

DEPARTMENT OF BUDGET AND MANAGEMENT (DBM)

KEY INFORMATION SUMMARY SHEET

Request for Proposals IT- Billing and Consolidated Omnibus Budget Reconciliation Act (COBRA) Administration System

Solicitation Number: BPM057552

RFP Issue Date: July 15, 2026

RFP Issuing Office: Department of Budget and Management (DBM)

Procurement Officer: Cynthia Beres Procurement Manager, Lead Procurement Officer 45 Calvert St Annapolis, Maryland 21401 Cynthia.Beres@maryland.gov

(410) 260-6050

Tatyana Helm Procurement Officer 45 Calvert Street Annapolis, Maryland 21401

Tatyana.Helm@maryland.gov

(410) 260-7678

Proposals are to be sent to:

Submit on emma.maryland.gov under Solicitation Number BPM057552.

To submit a proposal, offerors must first register on emma.maryland.gov.

We recommend registering in advance to become acquainted with the site.

No Bid/Proposal Notice Feedback Form

*If you are not submitting a proposal for this solicitation, submit Attachment 1 with your reasons why.

mailto:Tatyana.Helm@maryland.gov

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Pre-Proposal Conference:

July 24, 2026, at 10:00 AM EST For virtual meetings: Google Meeting (RSVP to Procurement Officers to have an invite sent):

Meeting code meet.google.com/xpr-zqic-sjx Phone Numbers 262-427-6947

PIN: 436 434 053#

See Section 4.3 for additional details.

See Attachment 2 to RSVP by July 23, 2026 to Attend

Scheduled Site Visit N/A

Questions Due Date and Time:

July 30, 2026 at 2:00 PM EST

Proposal Due (Closing) Date and Time:

August 18, 2026 at 2:00 PM EST Offerors are reminded that a completed Feedback Form is requested if a no-bid/proposal decision is made (see Attachment 1 - No Bid Notice/Vendor Feedback Form).

MBE Subcontracting Goal:

An overall Minority Business Enterprise (MBE) or Disadvantaged Business Enterprise (DBE) subcontract participation goal of 5 percent of the total contract dollar amount, including all renewal option terms, if any, has been established for this procurement.

VSBE Subcontracting Goal:

This solicitation includes a VSBE participation Goal of 2 percent.

Procurement Method: A Contract will be awarded in accordance with the Competitive Sealed Proposals method under COMAR 21.05.03.

Multiple or Alternate Bids:

Multiple or alternate Proposals will not be accepted.

Contract Type: Firm Fixed Price

Contract Duration: Seven (7) year period and 1 two-year option

Primary Place of Performance:

Contractor’s Location

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SBR Designation: No

Federal Funding: No

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TABLE OF CONTENTS

1 Minimum Qualifications 8

1.1 Offeror Minimum Qualifications 8

2 Contractor Requirements: Scope of Work 9

2.1 Summary Statement 9

2.2 Background and Purpose 9

2.3 Contractor Responsibilities and Tasks 11

2.4 Experience and Personnel 16

2.5 Substitution of Personnel 18

2.6 Supplemental Category of Work Requirements and Responsibilities 21

3 Standard Terms and Conditions 22

3.1 Contract Initiation Requirements 22

3.2 End of Contract Transition 22

3.3 Invoicing 23

3.4 Liquidated Damages 25

3.5 Problem Escalation Procedure 26

3.6 Task Orders 26

3.7 Payments by Electronic Funds Transfer 27

3.8 Prompt Payment Policy 28

3.9 Federal Funding Acknowledgement 28

3.10 Conflict of Interest Affidavit and Disclosure 28

3.11 Non-Disclosure Agreement 28

3.12 Maryland Healthy Working Families Act Requirements 29

3.13 The State of Maryland’s Commitment to Purchasing Environmentally Preferred Products and Services (EPPs) 29

3.14 Insurance Requirements 29

3.15 Non-Compete Clause Prohibition 31

4 Proposal Submission Information and Instructions 32

4.1 eMaryland Marketplace Advantage (eMMA) 32

4.2 Electronic Means 32

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4.3 Pre-Proposal Conference 32

4.4 Questions 33

4.5 Proposal Due (Closing) Date and Time 33

4.6 Economy of Preparation 33

4.7 Public Information Act Notice 33

4.8 Oral Presentation 34

4.9 Duration of Proposals 34

4.10 Revisions to the RFP 34

4.11 Cancellations 34

4.12 Incurred Expenses 35

4.13 Protest/Disputes 35

4.14 Offeror Responsibilities 35

4.15 Acceptance of Terms and Conditions 36

4.16 Compliance with Laws/Arrearages 36

4.17 Verification of Registration and Tax Payment 36

4.18 False Statements 36

5 Proposal Format 38

5.1 Two Part Submission 38

5.2 Proposal Delivery and Packaging 38

5.3 Volume I - Technical Proposal 39

5.4 Volume II – Financial Proposal 48

6 Evaluation and Selection Process 49

6.1 Evaluation Committee 49

6.2 Technical Proposal Evaluation Criteria 49

6.3 Financial Proposal Evaluation Criteria 49

6.4 Reciprocal Preference 49

6.5 Selection Procedures 50

6.6 Documents Required upon Notice of Recommendation for Contract Award RFP Attachments (Table B) 51

7 RFP Appendices and Exhibits 53

7.1 Appendices (Table C) 53

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7.2 Exhibits (Table D) 54

Appendix 9 (page 56) inclusive of table for responses 56

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1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

The Offeror must document in its Proposal that it satisfies the following Minimum Qualifications:

A. The Offeror shall have ten (10) years of experience providing direct billing and COBRA administration services. As proof of meeting this requirement, the Offeror shall provide with its Proposal three (3) references from the last ten (10) years that are collectively able to attest to the Offeror's required years of experience providing:

a. Direct billing services and

b. COBRA administration services

Required Documentation: The Offeror shall provide with its Proposal evidence of the three

(3) largest clients (number of lives) that they have managed.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

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2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.1.1 This Request for Proposals (RFP) is issued to procure the goods or services, as specified in this Section 2, from a contract between the selected offeror and the State of Maryland (“State”).

This RFP is issued to procure a turnkey, cloud based direct billing and COBRA administration system. The system should be able to exchange state enrollment data with the State’s carriers, process direct billing, and produce various federal and State required notifications. It is the State’s intention to obtain goods and services, as specified in this RFP, from a contract between the selected Offeror and the State.

2.1.2 The department intends to make a single award as a result of this RFP.

2.1.3 An Offeror, either directly or through its subcontractor(s), shall be able to provide all goods and services and meet all of the requirements requested in this solicitation and the successful Offeror (the Contractor) shall remain responsible for Contract performance regardless of subcontractor participation in the work.

2.1.4. The purpose of this solicitation is to procure a state-of-the-art commercially available Software as a Service (SaaS) application to use as a billing and COBRA administration system.

2.1.5 The State does not wish to procure a software application still under development. The software utilized in the solution shall be operational (i.e., not under development) and generally available by the due date of the Proposal.

2.1.6 A Contract award does not ensure a Contractor will receive all or any State business under the Contract.

2.2 Background and Purpose

2.2.1 Project Goals

A. The State is issuing this solicitation for the purpose of acquiring a cloud-based, customer-facing billing and report-friendly system for the State’s Employee Benefits Division (EBD) of the Department of Budget and Management (DBM). This system shall be fully integrated with the State Personnel System (SPS) Workday. The Contractor shall provide required COBRA administration services (i.e. billing services and provider eligibility file exchange) for COBRA participants.

B. The State currently self-administers COBRA continuation and is utilizing an in-house server-based legacy system used by approximately 50 employees to create invoices and send notice letters to individuals and participants. The State will continue to determine COBRA eligibility from the SPS Workday. The State expects to continue to generate initial or termination COBRA notices

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Table 1 represents the average monthly volume by notice type.

Table 1 - Average Monthly Volume

Notice Type Average Monthly Volume

Initial COBRA Notice 650

18 Month COBRA Notice 650

36 Month COBRA Notice 220

COBRA Continuation Expiration Notice 15

2.2.2 State Staff and Roles

In addition to the Procurement Officer and Contract Manager, the State project team consists of the following:

A. State Project Manager.

1. The State will provide a State Project Manager who will be responsible for the oversight of the project to ensure, among other possible issues, that the project is on time, all targets are met, and the Procurement Officer and Contract Manager receive regular updates.

2. The State Project Manager performs day-to-day management of the project, identifies issues and risks and recommends possible issues and risk mitigation strategies associated with the project and ensures tasks are within scope and are consistent with requirements, identifying critical paths, tasks, dates, testing, and acceptance criteria

3. The State Project Manager also acts as a facilitator between a State agency and IT contractor and provides solutions to improve efficiency (e.g., reduce costs while maintaining or improving performance levels) while managing issues and providing resolution for up-to-date status reports.

B. The State Project Manager will provide the following:

1. Internal resources to work with the vendor during design, testing, and implementation; and

2. Reporting requirements to manage the project and ongoing status of the system.

2.2.3 Other State Responsibilities

A. The State will provide required information, data, documentation, and test data to facilitate the Contractor’s performance of the work, and limited additional assistance and services.

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2.3 Contractor Responsibilities and Tasks

2.3.1 General Services and Performance

A. The Contractor shall provide a member portal with capabilities for members to view coverage, payment history, and premium due dates that allows participants to update communication preferences and direct participants to the appropriate State provided portal to remit payments.

Instructions shall be provided in various forms, including the Contractor’s website, monthly invoices, and written notices.

B. The Contractor shall release monthly COBRA billing to participants by the 3rd Business Day of each month.

C. The Contractor shall create and assist with integrations required to facilitate movement of information from Workday benefits to a direct billing contractor.

D. The Contractor shall engage with the State to obtain and update health plans and approved rates by November 15 of each year for the following Plan Year.

E. The Contractor shall generate and provide participant-specific notices (e.g. late notices, invoices, COBRA notices) via a secured electronic format to the Employee Benefits Division Director by the agreed upon timeline between the Contractor and EBD Director for printing and distribution.

This operation should comply with PG-8 in Appendix 9 “Performance Guarantees”.

F. The Contractor shall generate and provide customized notices (e.g., COBRA notices for retirees) as specified in federal and state regulatory requirements that may be amended when specified by the State, with relevant contact information directing participants to the State for assistance.

G. The Contractor shall provide online employer-level account management with capabilities to access member data, view and download letters and enter new participants.

H. The Contractor shall provide online capabilities to access downloadable reports including, but not limited to a Generated Letters Summary, Member Status, Paid Through, Plan Rate Renewal, and Direct Bill Summary reports.

I. The Contractor shall manage flexible billing frequency for participants.

J. The Contractor shall provide monthly updates by the 15th of the month for updates performed in the previous month to the EBD Director regarding legislative changes and other pertinent plan information.

K. The Contractor will receive a daily payment file and shall review, analyze and update participant records within one (1) Business Day.

L. The Contractor shall conduct, test and provide system readiness, including all requirements as specified in section 2.3.1 for approval by the EBD Director 30 days prior to the Go Live Date.

M. The Contractor shall provide ongoing and continuous system testing services.

N. The Contractor shall provide continuous knowledge transfer to State staff regarding updates and functionality.

O. The Contractor shall assign a dedicated administrator to the State for direct billing questions and ongoing support

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P. The Contractor shall maintain and exchange enrollment data with the State’s carriers for COBRA participants at a minimum of two (2) times per week, as approved by the State. This operation should comply with PG-3 in Appendix 9 “Performance Guarantees”.

2.3.2 Project Schedule

The Contractor shall provide a detailed project schedule to include key milestones, timelines, and a detailed staffing plan to include assigned Contractor resources and resources required from the State to the Contract Manager, Contract Administrator and EBD Director.

2.3.3 Project Activity and Due Dates

The Contractor shall begin implementation activities including an implementation meeting with the State upon Contract commencement and complete all implementation activities as needed to be prepared to commence services 120 days after kick-off of the project. The Contractor shall work with the State to develop a program rollout and transition to a new Billing and COBRA Administration system.

Table 2 - Implementation Timeline

DATE ACTIVITY

Within five (5) Business Days of the Notice to Proceed (NTP) date

Kick off meeting with the Contract Manager, State Project Manager and other State representatives to begin project planning and to schedule weekly status meetings.

Within five (5) Business Days after the Kick-Off Meeting

Provide a draft Project Schedule to the Contract Manager and State Project Manager for review and approval.

Within ten (10) Business Days after the draft Project Schedule due date

Provide a final Project Schedule to the Contract Manager and State Project Manager for review and approval.

Within ten (10) Business Days of the Notice to Proceed (NTP) date

Begin implementation meetings with the Contract Manager and State Project Manager.

Within fifteen (15) Business Days after the Kick-Off Meeting

Provide all initial templates for notices, letters, invoices, and reporting (e.g., self-report card, Plan Rate Renewal, and Direct Bill Summary reports) to the Contract Manager and State Project Manager for review and approval.

Within five (5) Business Days after requested edits

Provide all final revised notices, letters, invoices, and reporting (e.g., self-report card, Plan Rate Renewal, and Direct Bill Summary reports) to the Contract Manager and State Project Manager for review and approval.

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DATE ACTIVITY

Within 30 calendar days of the

NTP

Provide methodologies and examples of supporting documentation for each Performance Guarantee to the Contract Manager. The methodologies and supporting documentation shall provide the State the ability to independently test each Performance Guarantee.

Within thirty (30) calendar days after the Kick-Off Meeting

Establish necessary accounts with the Comptroller’s Office to enable electronic funds transfer.

Within thirty (30) calendar days after the Kick-Off Meeting

IT System development and set-up to support program operations.

Within forty-five (45) days after the Kick-Off Meeting

Receive, load and audit data files to begin testing.

Within sixty (60) calendar days after the Kick-Off Meeting

All files loaded, positive file audits completed, data import and export transmission tested between Contractor, State, and State’s consultants, confirmation that all file data points shall successfully transmit to the aforementioned State and elected consultants and operational readiness completed.

Thirty (30) calendar days prior to Go Live Date.

The Contractor shall conduct, test and provide system readiness, including all requirements as specified in section

2.3.1 for approval by the EBD Director.

Within ninety (90) calendar days after the Kick-Off Meeting

Go Live Date - Commence Billing system and COBRA administration.

Thirty (30) calendar days after Go Live Date

Conduct weekly status meetings with the State concerning project development, status, and Contractor(s) performance.

2.3.4 Customer Service Requirements

A. The Contractor shall provide the following customer service requirements to eligible members (both in State and out of State):

a. A dedicated toll-free line staffed by live customer service representatives.

b. This operation should comply with PG-4 in Appendix 9 “Performance

Guarantees”.

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B. The Contractor shall provide the following customer service requirements to the Employee Benefits Division, Contract Manager, and stakeholders:

a. Plan representatives shall return all messages received from the State within one

(1) Business Day

b. This operation should comply with PG-5 in Appendix 9 “Performance Guarantees”.

C. The Contractor shall have a process for resolving complaints in place and operable on the date of contract commencement.

a. Contractor shall acknowledge receipt of the complaint (e.g. received via email, telephone, or help desk) within two (2) Business Days of receipt.

b. Contractor shall investigate and provide an e-mail response to the Participant within twenty-one (21) Business Days of receipt of the complaint.

c. This operation should comply with PG-6 in Appendix 9 “Performance Guarantees”.

2.3.5 HIPAA Privacy and Security Provision

A. The Contractor shall be a Business Associate of the State in connection with COBRA administration. COBRA administration is subject to the Health Insurance Portability and Accountability Act (HIPAA) of 1996 including all pertinent privacy regulations (45 C.F.R. Parts 160 and 164) and security regulations (45 C.F.R. Parts 160, 162, and 164), as amended from time to time, issued by the U.S. Department of Health and Human Services (DHHS) and full compliance with the HIPAA privacy and security provisions is required of the Contractor. The Contractor shall take equivalent steps to make sure that all personal information is protected in accordance with HIPAA as well as the Maryland Personal Information and Protection Act (PIPA).

B. The Contractor shall comply with the Health Information Technology for Economic and Clinical Health (HITECH) Act of 2009, as amended from time to time.

Pursuant to the HITECH Act, Business Associates are subject to additional compliance requirements and are liable for civil and criminal penalties for violations of certain HIPAA security and privacy provisions. In addition to those obligations imposed by federal law, the Contract (Sample - Exhibit 2) requires certain actions and performance by the Contractor in order for COBRA administration and the Department as sponsor of the COBRA administration to be fully compliant with HIPAA.

C. In connection with PHI held, created, maintained, or transmitted in connection with COBRA administration and personal data held, created, maintained, or transmitted in connection with billing, the Contractor shall:

1. Retain, maintain, create, transmit and destroy such PHI and personal data in a manner that renders such data and information unusable, unreadable, and indecipherable to unauthorized individuals;

2. Retain, maintain, create, transmit and destroy such PHI and personal data in a manner fully consistent and compliant with guidance, policies and regulations issued by the Department of Health and Human Services that apply to PHI, also applying such standards to personal data;

3. Notify the Department of any breach, as that term is defined in the HI-TECH Act, §13400, as soon as practicable, but in any event within twenty-four (24) hours;

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4. Provide, or pay to provide, notice to affected individuals in the form, content, manner, method, and timing to meet the provisions of the HI-TECH Act, §§13400 - 13402, in the event of a breach of personal information.

D. Breaches of Unsecured PHI

1. A breach shall be treated as discovered in the terms described in 45 CFR §164.410

2. Notice to the Department:

i. Contractor shall promptly notify the Contract Manager of a breach of unsecured PHI without unreasonable delay, and in no case, no later than ten (10) Business Days following discovery of the breach. For purposes of clarity, the Contractor shall notify the Contract Manager of an incident involving the acquisition, access, use, disclosure, or improper disposal of PHI within twenty-four (24) hours after discovery of an incident even if the Contractor reasonably believes but has not conclusively determined within that time that the incident constitutes a breach as defined by

HIPAA.

ii. The Contractor's notice to the Contract Manager pursuant to this section concerning breaches shall include, at a minimum, the information as required in the Business Associate Agreement (Attachment T).

E. Notice to Participants

1. The Contractor shall provide notice to affected Members and to the media in the form, content, manner, method, and timing required to meet the requirements of 45 CFR §§164.404 and 164.406, applied as if Contractor were a covered entity in connection with the group plan(s) administered by Contractor pursuant to the Business Associate Underlying Agreement.

2. The notice(s) required by this section may not be issued until the State has reviewed and approved the notice(s). Such approval may not be unreasonably delayed or withheld.

3. The Contractor may delay the notice(s) required pursuant to sections 164.404(b) and 164.406(b) only if permitted pursuant to 45 CFR §164.412.

F. Notices to DHHS

1. The Contractor shall comply with the regulations and guidance issued by the federal Department of Health and Human Services (DHHS) on or about August 24, 2009 (74 Federal Register 42740 (08/24/09), available online at https://www.federalregister.gov/), and any future regulations issued by the federal DHHS services pursuant to the HITECH Act, in complying with the HIPAA privacy and security provisions of the RFP and the Contract. The term ‘unsecured protected health information “or “unsecured PHI” shall be interpreted and applied consistent with such regulations.

2. The Contractor shall submit the required breach notices to the Secretary of DHHS on behalf of the Department, the State, the group plan(s), and the Program; and provide a copy of the notice to the Contract Manager.

G. The Contractor(s) shall review any guidance from DHHS specifying the technologies and methodologies that render PHI unusable, unreadable, or indecipherable to unauthorized individuals. Contractor further agrees, to the extent practical, appropriate and reasonable, RFP for Department of Budget and Management Page 16 of 56 to incorporate such guidance into its administrative, physical, and technical safeguards to protect the confidentiality, integrity, and availability of PHI.

H. The Contractor shall comply with the regulations and guidance issued by the federal DHHS on or about August 24, 2009 (74 Federal Register 42740 (08/24/09), available on –line at https://www.federalregister.gov/), and any other current and future regulations issued by the federal DHHS pursuant to the HI-TECH Act, in complying with the HIPAA privacy and security provisions of the RFP and the Contract. The term ‘unsecured protected health information “or “unsecured PHI” shall be interpreted and applied consistent with such regulations.

I. All electronic file transfers between the Department of Budget and Management and the Contractor shall exchange all electronic files using a point-to-point Virtual Private Network (VPN) or secure FTP connection approved by the State of Maryland, Department of Budget and Management and the Department of Information Technology (DOIT) and as described in this RFP.

2.3.6 Performance Guarantees

The Contractor shall provide the Contract Manager quarterly report cards which include, but are not limited to, performance guarantee descriptions, performance goals, actual performance measurement, variance details of each non-compliant component and detailed supporting documentation for each Performance Guarantee (“Report Cards”). See Appendix 9 Performance Guarantees.

The Contractor shall submit by secure transmission the Report Cards within thirty (30) calendar days following the end of each quarter

2.4 Experience and Personnel

2.4.1 Preferred Offeror Experience

The following experience is expected and will be evaluated as part of the Technical Proposal (see the Offeror experience, capability and references evaluation factor from Section 6.2):

A. Contractor shall have experience providing third party administration and services to government entities as demonstrated by the number of years the Contractor has provided similar services and the number of clients that the Contractor currently serves.

2.4.2 Personnel Experience

The following experience is expected and will be evaluated as part of the Technical Proposal (see the capability of proposed resources evaluation factor from Section 6.2):

A. Contractor Personnel, including any staff of proposed subcontractor (s), shall have experience and qualifications related to their specific responsibilities, as detailed in the Proposed Scope of Work.

2.4.3 Number of Personnel to Propose

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As part of the Proposal evaluation, Offerors shall propose exactly one (1) per Key Personnel who is expected to be available as of the start date specified in the Notice to Proceed (NTP Date).

Offerors shall describe in a Staffing Plan how additional resources shall be acquired to meet the needs of the Department. Offerors may generally describe planned positions in a Staffing Plan.

Such planned positions may not be used as evidence of fulfilling personnel minimum qualifications.

2.4.4 Key Personnel Identified

For the Contract, the following positions to be identified in the Technical Proposal will be considered Key Personnel and shall be required to meet the qualifications stated below.

A. Contractor Account Service Representative The Contractor shall have a day-to-day Contractor Account Service Representative assigned to the State account who shall act as a liaison between the Contractor and the State. The Contractor Account Service Representative shall be 100% dedicated to the State.

B. Contractor Billing Representative The Contractor shall have a day-to-day Contractor Billing Representative assigned to the State account who shall act as a liaison between the Contractor and the State.

The Contractor Billing Representative shall advise the State on billing management processes, accurate and timely invoicing capabilities, and overall system billing functionality and best practices. The Contractor Billing Representative shall have comprehensive and progressive experience to handle all billing duties, leveraging their extensive experience with billing functions, while ensuring an excellent customer service experience.

C. IT Support Representative The Contractor shall have an Information Technology (IT) Support Representative assigned to the State account who shall act as a liaison between the Contractor and the State. The IT Support Representative shall provide technical assistance to the State by troubleshooting, inclusive of diagnosing and solving problems, day-to-day system maintenance, and documenting all service requests and solutions. The IT Support Representative shall have extensive experience with communicating technical information to users with varying technical levels of expertise.

D. IT Integration Representative The Contractor shall have an Information Technology (IT) Integration Representative assigned to the State account who shall act as a liaison between the Contractor and the State for integration activities. The IT Integration Representative shall provide the State with services to design, implement, and maintain connections between different software and hardware systems. The IT Integration Representative shall have extensive experience with developing and implementing integration solutions, cross-functional team collaboration, and providing technical support to end-users.

2.4.5 Additional Personnel

The Contractor shall provide the following additional personnel as outlined below:

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A. Contractor Training Representative B. Two (2) Lead Service Representatives

2.4.6 Contractor Personnel Experience Equivalency (including Key Personnel submitted in response to this RFP)

A. Substitution of Education for Experience: A bachelor’s degree or higher may be substituted for the general and specialized experience for those labor categories requiring a high school diploma. A master’s degree may be substituted for two years of the general and specialized experience for those labor categories requiring a bachelor’s degree. Substitution shall be reviewed and approved by the State at its discretion.

B. Substitution of Experience for Education: Substitution of experience for education may be permitted at the discretion of the State.

C. Substitution of Professional Certificates for Experience: Professional certification (e.g., Microsoft Certified Solutions Expert, SQL Certified Database Administrator) may be substituted for up to two (2) years for general and specialized experience at the discretion of the State.

2.4.7 Contractor Personnel Maintain Certifications

Any Contractor Personnel provided under this RFP shall maintain in good standing any required professional certifications for the duration of the Contract.

2.4.8 Work Hours

Unless otherwise specified, the following work hours requirements are applicable:

A. Business Hours Support: Contractor shall assign Contractor Personnel to support Normal State Business Hours (see definition in Appendix 1) Monday through Friday except for State holidays.

B. State-Mandated Closings: Contractor Personnel shall be required to participate in any State-mandated closings. In this event, the Contractor will be notified in writing by the Contract Manager of these details.

C. Time-Off Requests: Requests for time-off shall be submitted to the Contract Manager at least two (2) weeks in advance. The Contract Manager reserves the right to request a temporary replacement if time-off extends longer than one (1) consecutive week. In cases where there is insufficient coverage, a time-off request may be denied.

2.5 Substitution of Personnel

2.5.1 Continuous Performance of Key Personnel

When Key Personnel are identified for the Contract, the following apply:

A. Key Personnel shall be available to perform Contract requirements as of the NTP Date.

Unless explicitly authorized by the Contract Manager or specified in the Contract, Key Personnel shall be assigned to the State of Maryland as a dedicated resource.

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B. Key Personnel shall perform continuously for the duration of the Contract, or such lesser duration as specified in the Technical Proposal. Key Personnel may not be removed by the Contractor from working under the Contract without the prior written approval of the Contract Manager.

2.5.2 Definitions

For the purposes of this section, the following definitions apply:

A. Extraordinary Personal Event – means any of: leave under the Family Medical Leave Act; an Incapacitating injury or Incapacitating illness; or other circumstances that in the sole discretion of the State warrant an extended leave of absence, such as extended jury duty or extended military service that precludes the individual from performing his/her job duties under the Contract.

B. Incapacitating – means any health circumstance that substantially impairs the ability of an individual to perform the job duties described for that individual’s position in the RFP or the Contractor’s Technical Proposal.

2.5.3 Contractor Personnel General Substitution Provisions

The following provisions apply to all of the circumstances of Contractor Personnel substitution described in Section 2.5.4.

A. The Contractor shall demonstrate to the Contract Manager’s satisfaction that the proposed substitute has qualifications at least equal to those of the Contractor Personnel proposed to be replaced.

B. The Contractor shall provide the Contract Manager with a substitution request that shall include:

1. A detailed explanation of the reason(s) for the substitution request;

2. The resume of the proposed substitute, signed by the substituting individual and his/her formal supervisor;

3. The official resume of the current personnel for comparison purposes; and

4. Evidence of any required credentials.

C. The Contract Manager may request additional information concerning the proposed substitution and may interview the proposed substitute personnel prior to deciding whether to approve the substitution request.

D. The Contract Manager will notify the Contractor in writing of: (i) the acceptance or denial, or (ii) contingent or temporary approval for a specified time limit, of the requested substitution. The Contract Manager will not unreasonably withhold approval of a proposed Contractor Personnel replacement.

2.5.4 Replacement Circumstances

A. Directed Personnel Replacement

1. The Contract Manager may direct the Contractor to replace any Contractor

Personnel who, in the sole discretion of the Contract Manager, are perceived as being unqualified, non-productive, unable to fully perform the job duties, disruptive, or known, or reasonably believed, to have committed a major infraction(s) of law, RFP for Department of Budget and Management Page 20 of 56

Department policies, or Contract requirements. Normally, a directed personnel replacement will occur only after prior notification of problems with requested remediation, as described in paragraph 2.5.4.A.2.

2. If deemed appropriate in the discretion of the Contract Manager, the Contract Manager may give written notice of any Contractor Personnel performance issues to the Contractor, describing the problem and delineating the remediation requirement(s). The Contractor shall provide a written response to the remediation requirements in a Remediation Plan within ten (10) days of the date of the notice and shall immediately implement the Remediation Plan upon written acceptance by the Contract Manager. If the Contract Manager rejects the Remediation Plan, the Contractor shall revise and resubmit the plan to the Contract Manager within five (5) days, or in the timeframe set forth by the Contract Manager in writing.

3. Should performance issues persist despite an approved Remediation Plan, the Contract Manager may give written notice of the continuing performance issues and either request a new Remediation Plan within a specified time limit or direct the substitution of Contractor Personnel whose performance is at issue with a qualified substitute, including requiring the immediate removal of the Contractor Personnel at issue.

4. Replacement or substitution of Contractor Personnel under this section shall be in addition to, and not in lieu of, the State’s remedies under the Contract or which otherwise may be available at law or in equity.

5. If the Contract Manager determines to direct substitution under 2.5.4.A.1, if at all possible, at least fifteen (15) days advance notice shall be given to the Contractor.

However, if the Contract Manager deems it necessary and in the State’s best interests to remove the Contractor Personnel with less than fifteen (15) days’ notice, the Contract Manager may direct the removal in a timeframe of less than fifteen (15) days, including immediate removal.

6. In circumstances of directed removal, the Contractor shall, in accordance with paragraph 2.5.4.A.1 of this section, provide a suitable replacement for approval within fifteen (15) days of the notification of the need for removal, or the actual removal, whichever occurs first.

B. Key Personnel Replacement To replace any Key Personnel in a circumstance other than as described in 2.5.4.C, including transfers and promotions, the Contractor shall submit a substitution request as described in Section 2.5.3 to the Contract Manager at least fifteen (15) days prior to the intended date of change. A substitution may not occur unless and until the Contract Manager approves the substitution in writing.

C. Key Personnel Replacement Due to Sudden Vacancy

1. The Contractor shall replace Key Personnel whenever a sudden vacancy occurs

(e.g., Extraordinary Personal Event, death, resignation, termination). A termination or resignation with thirty (30) days or more advance notice shall be treated as a replacement under Section 2.5.4.B.

2. Under any of the circumstances set forth in this paragraph B, the Contractor shall identify a suitable replacement and provide the same information and items required

RFP for Department of Budget and Management Page 21 of 56 under Section 2.5.3 within fifteen (15) days of the actual vacancy occurrence or from when the Contractor first knew or should have known that the vacancy would be occurring, whichever is earlier.

D. Key Personnel Replacement Due to an Indeterminate Absence

1. If any Key Personnel has been absent from his/her job for a period of ten (10) days and it is not known or reasonably anticipated that the individual will be returning to work within the next twenty (20) days to fully resume all job duties, before the 25th day of continuous absence, the Contractor shall identify a suitable replacement and provide the same information and items to the Contract Manager as required under Section 2.5.3.

2. However, if this person is available to return to work and fully perform all job duties before a replacement has been authorized by the Contract Manager the Contract Manager may, at his/her sole discretion, authorize the original personnel to continue to work under the Contract, or authorize the replacement personnel to replace the original personnel, notwithstanding the original personnel’s ability to return.

2.5.5 Substitution Prior to and Within 30 Days After Contract Execution

Prior to Contract execution or within thirty (30) days after Contract execution, the Offeror may not substitute proposed Key Personnel except under the following circumstances (a) for actual full-time personnel employed directly by the Offeror: the vacancy occurs due to the sudden termination, resignation, or approved leave of absence due to an Extraordinary Personal Event, or the death of such personnel; and (b) for any temporary staff, subcontractors or 1099 contractors:

the vacancy occurs due to an Incapacitating event or the death of such personnel. To qualify for such substitution, the Offeror must demonstrate to the State's satisfaction the event necessitating substitution. Proposed substitutions shall be of equal caliber or higher, in the State's sole discretion. Proposed substitutes deemed by the State to be less qualified than the originally proposed individual may be grounds for pre-award disqualification or post-award termination

2.6 Supplemental Category of Work Requirements and Responsibilities

See the attached IT Supplemental associated with this solicitation.

RFP for Department of Budget and Management Page 22 of 56

3 Standard Terms and Conditions

3.1 Contract Initiation Requirements

Once all approvals have been obtained and the Contract is fully executed, the Procurement Officer may schedule a kickoff meeting to be held prior to commencement of Contract performance within five (5) Business Days of NTP Date. At the kickoff, the Contractor shall furnish an updated Project Schedule describing the activities for the Contractor, the State, and any third parties for fully transitioning to the Contractor’s Solution. The meeting will be conducted virtually, upon notification of contract award and the Contract Manager will provide virtual meeting information at that time.

3.2 End of Contract Transition

3.2.1.If applicable, the Contractor shall cooperate in the orderly transition of services from it to a subsequent contractor at the end of the contract term or upon receipt of a Notice of Termination from the State. The Contractor shall provide transition assistance as requested by the State to facilitate the orderly transfer of services to the State or a follow-on contractor, for a period up to 120 days prior to Contract end date, or the termination thereof. Such transition efforts shall consist, not by way of limitation, of:

A. Provide additional services and support as requested to successfully complete the transition;

B. Maintain the services called for by the Contract at the required level of proficiency;

C. Provide updated System Documentation (see Appendix 1), as appropriate; and

D. Provide current operating procedures (as appropriate).

3.2.2 The Contractor shall work toward a prompt and timely transition, proceeding in accordance with the directions of the Contract Manager. The Contract Manager may provide the Contractor with additional instructions to meet specific transition requirements prior to the end of the Contract.

3.2.3 The Contractor shall ensure that all necessary knowledge and materials for the tasks completed are transferred to the custody of State personnel or a third party, as directed by the Contract Manager.

3.2.4 The Contractor shall support end-of-Contract transition efforts with technical and project support to include but not be limited to:

A. The Contractor shall provide a draft Transition-Out Plan 120 Business Days in advance of Contract end date.

B. The Transition-Out Plan shall address at a minimum the following areas:

1. Any staffing concerns/issues related to the closeout of the Contract;

2. Communications and reporting process between the Contractor, the Department and the Contract Manager;

3. Security and system access review and closeout;

4. Any hardware or software inventory or licensing including transfer of any point of contact for required software licenses to the Department or a designee;

5. Any final training and orientation of Department staff;

RFP for Department of Budget and Management Page 23 of 56

6. Connectivity services provided, activities and approximate timelines required for Transition-Out;

7. Knowledge transfer to include,

i. A working knowledge of the current system environments as well as the general business practices of the Department;

ii. Review with the Department the procedures and practices that support the business process and current system environments;

iii. Working knowledge of all technical and functional matters associated with the Solution, its architecture, data file structure, interfaces, any batch programs, and any hardware or software tools utilized in the performance of the Contract;

iv. Documentation that lists and describes all hardware and software tools utilized in the performance of the Contract;

v. A working knowledge of various utilities and corollary software products used in support and operation of the Solution;

8. Plans to complete tasks and any unfinished work items (including open change requests, and known bug/issues); and

9. Any risk factors with the timing and the Transition-Out schedule and transition process. The Contractor shall document any risk factors and suggested solutions.

i. The Contractor shall ensure all documentation and data including, but not limited to, System Documentation and current operating procedures, is current and complete with a hard and soft copy in a format prescribed by the Contract Manager.

ii. The Contractor shall provide copies of any current daily and weekly back-ups to the Department or a third party as directed by the Contract Manager as of the final date of transition, but no later than the final date of the Contract.

iii. Access to any data or configurations of the furnished product and services shall be available after the expiration of the Contract as described in Section 3.2.5.

3.3 Invoicing

Submission of an invoice constitutes the Contractor’s verification that the information in the invoice is accurate as of the time of submission.

An invoice not satisfying the requirements of a Proper Invoice (as defined in COMAR 21.06.09) will not be processed for payment. To be considered a Proper Invoice, invoices must include the following information, without error:

A. Identify the Department of Budget and Management;

B. Contractor name and address;

C. Remittance address;

RFP for Department of Budget and Management Page 24 of 56

D. Federal taxpayer identification (FEIN) number, social security number, as appropriate;

E. Invoice period (i.e. time period during which services covered by invoice were performed);

F. Invoice date;

G. Invoice number;

H. State assigned Contract number;

I. State assigned (Blanket) Purchase Order number(s);

J. Goods or services provided;

K. Amount due;

L. Signature of authorized signer; and M. Any additional documentation required by regulation or the Contract.

Invoices that contain both fixed price and labor hour or time and material items shall clearly identify each item as either fixed price, and labor hour, or time and material billing.

The State reserves the right to reduce or withhold Contract payment in the event the Contractor does not provide all required deliverables within the time frame specified in the Contract or otherwise fails to satisfy the terms and conditions of the Contract until such time as the Contractor brings itself into full compliance with the Contract.

The State is generally exempt from federal excise taxes, Maryland sales and use taxes, District of Columbia sales taxes and transportation taxes. The Contractor, however, is not exempt from such sales and use taxes and may be liable for the same.

Invoices for final payment shall be clearly marked as “FINAL” and submitted when all work requirements have been completed and no further charges are to be incurred under the Contract.

In no event shall any invoice be submitted later than 60 calendar days from the Contract termination date.

3.3.1 Payment and Invoice Specifications

A. The Contractor shall e-mail the original of each invoice (for services provided the previous month) and signed authorization by the Account Executive to the Contract Manager and the EBD Director.

B. All invoices for services shall be verified and signed by the Contractor as accurate at the time of submission.

C. The Contractor shall accept the payment procedures and parameters outlined in this RFP Section and Exhibit 2 for payments by the State. Invoices submitted without the required information will not be processed for payment until the Contractor provides the required information.

D. Any action on the part of the Department, or dispute of action by the Contractor, shall be in accordance with the provisions of Md. Code Ann., State Finance and Procurement Article §§ 15- 215 through 15-223 and with COMAR 21.10.04.

E. For any recoveries as a result of fraud or an audit, the Contractor shall pay the State any portion due it via a separate check payment and provide documented substantiation. Payments to the State of Maryland Department of Budget and Management shall be made no later than thirty (30) calendar days after the Contractor's receipt of invoice for Fraud or Audit recoveries. All

RFP for Department of Budget and Management Page 25 of 56 payments shall be submitted to: The Department of Budget and Management, Employee Benefits Division, P.O. Box 1516, Baltimore, Maryland, 21203.

3.3.2 Invoice Submission Schedule

The Contractor shall submit invoices in accordance with the following schedule:

A. Payment for deliverables will only be made upon completion and acceptance of a monthly invoice.

B. Invoices should be sent through secured, encrypted transmission to the State by 4:00 p.m. Local Time on the 15th of the month for the preceding month (or next State business day if it is a holiday).

C. Invoices for deliverables shall be submitted upon completion and acceptance of the deliverables as defined in Section 2 of the RFP.

3.3.3 Administrative Fees

The Contractor shall:

A. Accept monthly payments from the State for administrative fees based on the State’s eligibility data. Administrative fees are processed one month in arrears;

B. Accept payment from the State’s as processed through the normal State transmittal process as described in Exhibit 5-4: Compliance Checklist. Payment is anticipated to be made by the 15th day of each month for the preceding month; and

C. Administrative fees will be payable only for eligibility for a month of coverage. If an Account’s coverage in COBRA terminates during the Plan Year, the Contractor will be paid administrative fees only for those…