RFP Doc2246180914 Project Information Packet.docx

RFP Number Doc2246180914 Goods + Services June 3, 2026 Request for Proposals (RFP) for Merchant Services and Payment Gateway Services Project Information Packet Section 1: Opportunity Overview Section 2: How Your Proposal Will Be Evaluated Section 3: Scope of Work Section 4: Appendix and Attachments Section 5: Sample Contract Section 6: RFP Terms and Conditions

RFP at a Glance Proposals Due:

August 17, 2026 by 4:00 p.m. Pacific Time Summary:

Mandatory Pre-Proposal Meeting:

There will be a pre-proposal meeting scheduled for this RFP on June 17, 2026 at 10:00 am Pacific Time via Microsoft Teams.

Attendance is mandatory; Proposal submission will be contingent upon attendance at this meeting. You must RSVP to Mark Ariza via email at mark.ariza@portlandoregon.gov to receive confirmation and meeting login information.

Please disable all AI note taking apps before joining the meeting as they will not be allowed.

Refer to Section 1.6: Mandatory Pre-Proposal Meeting for details.

Submit Your Proposal:

City of Portland Bid Portal: https://service.ariba.com/Discovery.aw/ad/profile?key=AN11181807487

Refer to the Proposal Response Packet: Section 7: Submission Instructions for details.

Have Questions or Need Help? Single Point of Contact:

Send questions, requests for clarification, or requests for assistance by seven (7) calendar days before August 17, 2026, by 4:00 p.m. Pacific Time. Any questions received after this date may not be answered. Only the Single Point of Contact can answer questions about this RFP.

Mark Ariza, OPBC Procurement Analyst Procurement Services

(503) 823-1885 Mark.Ariza@portlandoregon.gov

Section 1: Opportunity Overview

1.1 Background

The City of Portland, Office of the Chief Financial Officer, Treasury Division Overview The City of Portland, Oregon (hereinafter “the City”) with an estimated population of 650,000, comprises an area of 145 square miles in northwestern Oregon. Located astride the Willamette River at its confluence with the Columbia River, the City is the center of commerce, industry, transportation, finance and services for a metropolitan area of 2.5 million residents. The City provides services through its bureaus, including the Water Bureau, Bureau of Environment Services, Parks & Recreation, Portland Permitting & Development, and Bureau of Transportation. In delivering essential services to Portlanders, these bureaus accept payments for utilities, permits, taxes, licenses, fines, parking, program registrations and more.

The Treasury Division (Treasury) in the Office of the Chief Financial Officer provides banking, cash management, and merchant (credit/debit card) services to City bureaus and is the central office through which all banking, cash management, and investment management services are provided.

Merchant Services and Payment Gateway Overview Treasury requests proposals for Merchant and Payment Gateway Services from qualified proposers with demonstrated experience providing these services to customers similar to the City in scope and complexity. Treasury Division is responsible for this contract’s procurement and management, but multiple bureaus will utilize the services at locations throughout the City. The scope of this contract does not include Procurement Card (P-card) services. City is the merchant of record for all transactions. Title to all City funds must remain in the possession of City at all times and be managed so that the funds are either fully insured by the FDIC or collateralized in accordance with Oregon Revised Statute 295. Because these payments are funded by residents and businesses, the City requires competitive and transparent pricing and a solution that meets security, compliance, and reporting obligations. The goal is to select a single vendor that provides Merchant and Payment Gateway services that support multiple channels, reduces operational risk, streamlines reconciliation, and improves constituent experience.

The City is a PCI DSS compliant, Level I merchant and uses end-to-end encrypted point-of-sale terminals (including cellular wireless) and a number of payment applications to process payments over the phone (IVR), through point-of-sale (POS) for in-person transactions, e-commerce payment gateway, virtual terminals, mobile payments (App & Text), recurring payments and third-party web interfaces for a myriad of City services. The City accepts all major credit card networks that includes Visa, Mastercard, Discover and American Express and debit cards (processed as credit) through approximately sixty-four (64) merchant accounts (Merchant IDs) that process approximately 11 million transactions count and $550 million annually for all services including utilities bureaus, Water and Sewer (reference RFP Attachment 1 - Merchant Services Description).

The City processes payments for a variety of services, including but not limited to:

· Water and sewer billing

· Parking Meters, permits and tickets

· Building permits and inspections

· Fire and rescue inspection and permit

· Police alarms permitting

· Business licenses and taxes

· Parks and Recreation classes

· Golf Course Fees and Restaurant Services

· Public records requests

· Neighborhood and community programs

· Miscellaneous fees, permits, and taxes Current payments acceptance:

· Online portals

· Mobile applications

· Point-of-sale (POS) terminals

· Interactive Voice Response (IVR)/phone payments

· Recurring billing arrangements

The City’s current payment processor / acquiring bank is Elavon / US Bank National Association. The City’s current third-party gateway provider is NIC Services, LLC / Tyler Technologies. The City’s current Qualified Security Assessor is RSI Systems Inc. The City’s Enterprise Resource and Planning (ERP) system is SAP. The City currently owns all its bank-issued point-of-sale terminals, which are a combination of Ingenico models (reference RFP Attachment 4 – Total Overall Cost, Part II).

1) The City’s existing third-party vendor systems and software:

The City uses SAP ERP 6.0 as its on-premise ERP System. Bureaus use the following Software Solutions:

2) Revenue Bureau:

a) FAST Enterprises (Integrated Tax System) - Business License and Taxes

3) Portland Bureau of Transportation (PBOT):

a) Passport Inc (Parking Kitty) - Parking Meter App

b) Flowbird (Recently acquired by Arrive) - presently using the following solutions:

i) Cale America Inc. – Parking Pay Stations

ii) Passport Labs, Inc. - Hosted Mobile Parking Payment System

4) Parks & Recreation Bureau:

a) ActiveNet

b) Lightspeed – Golf Courses (Kemper Sports)

5) Portland Permitting and Development (PPD):

a) Accela Citizen Access – Liquor Licensing, Building Permits and Code Compliance

6) Fire Bureau:

a) Fire2000 and Permits2000

7) Police Bureau:

a) CryWolf Services – Police Alarms Permits

b) U-TURN180 via STRIPE - Traffic Safety Training

8) Water Bureau:

a) Customer Portal (Cayenta migrating to VertexOne )

b) Infosend - Bill Print and Presentment vendor

c) Customer Information System, Cayenta

1.2 Essential Qualifications

1. For a detailed list of the requirements, see Appendix A - Requirements

a. Proposer must have at least five (5) years’ relevant merchant services experience with other Level 1 and other public sector clients.

b. Proposer must confirm that they are an acquiring bank that is a Qualified Depository for Public Funds as prescribed in ORS 295 and as identified by the Oregon State Treasurer at Public Funds Collateralization Program, OR a processor that is partnered with an acquiring bank that is a Qualified Depository for Public Funds as prescribed in ORS 295 and as identified by the Oregon State Treasurer at Qualified Depositories.

c. Proposer must be able to integrate and process transactions from City applications and/or third-party vendors on behalf of the City as detailed in RFP Attachment 1 - Merchant Services Description. Note: Attachment 1 - Merchant Services Description reflects City data from July 2024 through June 2025; these are not guarantees of future service levels.

d. Proposer must be PCI/PA-DSS compliant and must include a copy of current Attestation of Compliance.

1.3 Outcome Goals and Requirements

Outcome Goals for the City:

The City may, but is not obligated to, award more than one provider, if it is determined to be advantageous to the City. City requires that Proposer’s pricing for services remain fixed for the contract term of five (5) years. The successful contractor will be expected to enter into a not-to-exceed Services Contract with the City.

Best Value for the City:

Merchant services pricing and fee structures are often complex and layered. Because the City operates using taxpayer funds, we have a responsibility to ensure transparency and accountability. Understanding these pricing models is essential for the Treasury Division and the City as a whole. Our goal is to secure merchant and payment gateway services that offer not only competitive rates but also clear and transparent pricing.

Increase Financial Transparency:

The successful proposer shall provide easy access to data for analysis for accountability, smooth data downloading, and automated downloading system. This shall include the following;

Pricing and Fee Transparency

a. Commercial Card Optimization program (revenue share)

b. Transaction fees (credit, debit, ACH, etc.)

c. Equipment fees (purchase, lease, maintenance)

d. Monthly or annual service fees

e. Integration/setup costs

f. Any other applicable charges

g. Pricing must be transparent, with no hidden fees, and compliant with government cost regulations.

Service & Support:

A vendor led, qualified professional team of people who will be responsive to the City’s needs and provide consultation when needed (local support is preferred).

Constituent Experience:

Provide the City efficient ways to accept payments (user friendly experience) including modern service acceptance methods, QR Codes, fraud prevention tools etc.

Implementation & Transition Plan:

Recognizing that there is a cost to the City for the time Treasury, Bureaus, and Technology Services (BTS) staff need to carry out the implementation, the successful proposer should provide a clear plan and resources to assist with this complex project.

1.4 Contract Details

Duration of the contract: Five (5) years, with the option to renew for up to an additional five (5) years for a total contractual period of not more than ten (10) years.

Number/term of renewal options: Optional renewal period(s) of up to 5 years.

Contract type: City Technology Contract The scope of this contract will include payment card processing for the Portland Water Bureau’s sewer, stormwater, and water bill payments. Please note that the City of Portland presently qualifies for the special Utility Interchange Rate program.

This contract will include transactions for the City owned parking facilities and on-street metered parking. These transactions are presently processed under a special “Small Ticket” program using a Merchant Category Code for Parking Lots and Garages.

1.5 Estimated RFP Timeline

The timeline below is an estimate for the RFP and Contracting process.

The City will adjust the schedule as necessary.

1.6 Mandatory Pre-Proposal Meeting

There will be a MANDATORY pre-proposal meeting scheduled for this RFP on June 17, 2026, at 10:00 am Pacific Time via Microsoft Teams.

This meeting is mandatory. You must attend if you intend to submit a proposal.

You must RSVP to Mark Ariza via email at mark.ariza@portlandoregon.gov to receive confirmation and meeting login information.

Please disable AI note taking apps before joining meeting as they will not be admitted.

The City of Portland will make reasonable accommodation for people with disabilities. Please notify the Official RFP Contact at least two (2) Business Days prior to the event, by the City’s TTY at 503-823-6868, or by the Oregon Relay Service at 1-800-735-2900.

1.7 Addenda

The City will share more information about this RFP if something is missing or unclear. The City will share this information as an addendum (or addenda, if more than one). The City will post addenda on City of Portland Bid Portal.

Addenda issued seventy-two (72) hours or more before the due date are binding. The seventy-two (72) hour window excludes Saturdays, Sundays, and City-observed holidays.

You are responsible for complying with the addenda, even if you do not see it.

Section 2: How Your Proposal Will Be Evaluated

2.1 Proposal Review and Selection

Evaluation Overview The City will appoint an Evaluation Committee (Committee) to evaluate the proposals received. To score proposals, the Committee will evaluate each proposal using the criteria below. The Committee may seek outside expertise. The Committee will require at least ten (10) Business Days to evaluate and score the proposals.

The City will decide how or when to proceed through the evaluation process. The City will also decide if additional clarifications are needed, when to begin or end negotiations, reasonable timelines, and whether to open negotiations with a lower scoring proposer.

The City can also decide to cancel the solicitation or reject all proposals.

Evaluation Process Each proposal is evaluated using these criteria:

Responsiveness, Responsibility, and Mandatory Criteria The City will determine if you are a Responsible Proposer who has submitted a Responsive Proposal (ORS 279B.005).

Refer to Portland Public Contracting Rules for details.

Requirements are attached as Appendix A - Requirements. Proposers must turn in a filled-in spreadsheet checking off each requirement in order to be considered for scoring.

Evaluation Phase 1–Written Scoring Proposals that meet responsiveness, responsibility, and mandatory requirements will be evaluated in Evaluation Phase 1. The Committee will conduct a detailed review of the written proposals:

Phase 1 Evaluation Criteria

i. Organization

ii. Client Support and Communication

i. Service Level and Performance Measures

ii. Strategic Vision

iii. Operational Capacity and Capability

iv. Reporting

v. PCI DSS Compliance

vi. Disaster Recovery and System Security

RFP Attachment 4 - Total Overall Cost includes:

PART I - Rates, Fees, and Services PART II - Hardware Purchase and/or Lease

ii. Interchange Management

iii. Transition / Retention Incentives

Short Listing At the end of any evaluation phase, the Evaluation Committee may focus on only a limited number of proposals by developing a “short list” based on the scores. The number of proposals on the short list depends on the number of proposals the Committee believes have a reasonable chance of leading to a contract award. If you are eliminated from further consideration, you will be notified by a Notice of Shortlisting posted on the City of Portland Bid Portal.

Subsequent Evaluation Phases The City will proceed with subsequent evaluation phases as needed. These phases may include oral interviews, demonstrations, presentations, site visits, clarification of the proposals, or other activities.

If you are invited to participate in subsequent evaluation phases, the City will share additional information and instructions a reasonable amount of time before any further evaluation is held.

Evaluation Phase 2 – Interviews, Demonstrations, or Presentations The scoring of Phase 2 generally will be as follows.

Phase 2 Evaluation Criteria

Content of Phase 2 Evaluation To be determined

Additional Optional Evaluation Phases and Methods In addition to the evaluation phases above, the City can use other methods like best and final offers, serial negotiations, and competitive simultaneous negotiations.

Proposers eliminated at any stage of the evaluation process will be notified.

Total Overall Score At the end of each evaluation phase, the points from that phase will be added to your cumulative score to determine your Total Overall Score. The proposer with the highest Total Overall Score may be identified as the finalist.

The selection of the finalist may also be based on negotiated costs and agreeing to the City’s terms and conditions within the City’s Sample Contract.

Negotiations will follow with the finalist. If successful, negotiations may result in a final award and Contract for the work. If the Contract with the finalist cannot be reached within a time that is reasonable to the City, the City may elevate the proposer with the next highest Total Overall Score to be the finalist.

2.2 Award Review and Protest

Review The City will post a Notice of Intent to Negotiate and Award on the City of Portland Bid Portal. The Notice will identify the proposer(s) to which the City intends to award a contract.

Following the Notice of Intent to Negotiate and Award, the public may view proposal documents, in accordance with the Oregon Public Records Act.

If you were not awarded the Contract, you can ask for clarification or debriefing, request time to review the selection procedures, or discuss the scoring methods used by the Evaluation Committee.

Protests Proposers can challenge the City’s decision to exclude the proposer from the next step in the evaluation process, and to award a contract. If you wish to protest your elimination, you must submit a protest within seven (7) Calendar Days of the City’s posting of the Notice of Short List or Notice of Intent to Award.

Proposers can read Portland Public Contracting Rules regarding protest procedures, all of which may be found online: https://www.portland.gov/policies/public-contracting-rules. Proposers may also learn more about protests by reviewing ORS 279B.405 and ORS 279B.410.

Protesters may not use judicial appeal rights unless all protest and appeal rights are exhausted.

Section 3: Scope of Work The selected contractor(s) shall provide services including, but not limited to:

3.1 Merchant Acquiring Services

· Accept and process all major credit and debit cards (e.g., Visa, MasterCard, Discover, American Express).

· Support for contactless payments (e.g., Apple Pay, Google Pay, EMV, tap-to-pay).

· Pay-by-text or QR code payments.

· Capability for recurring and installment payments.

· Support for ACH/e-check processing (optional or as requested).

· Debit card acceptance with PIN and signature support.

· Support for Level 2 or 3 processing requirements where applicable.

· Settlement, funding, and chargeback management.

· Interchange optimization.

· One-Day settlement.

· Same-Day and Next-business-day - funding options.

3.2 Channels of Payment Acceptance

· In-person/Point-of-Sale (POS).

· Online/Web-based portals.

· Mobile devices include digital wallets Apple Pay and Google Pay.

· IVR/Phone payments.

· PCI-compliant devices.

· EMV chip card acceptance.

· Contactless payments.

· Kiosk payments.

3.3 Equipment & Integration

· Provide, install, and maintain necessary equipment (e.g., card readers, terminals).

· Integration with existing government systems and software platforms (see Section 1.1 Background for a listing of the City’s existing third-party vendor systems and software.

· APIs or SDKs for web and mobile payment processing.

· Integration with third-party payment processors or gateways.

3.4 Payment Gateway Services

· Hosted payment pages and API-based integration.

· Support for multiple City payment applications.

· Tokenization and secure card-on-file functionality.

· Omnichannel transaction support.

· Fraud prevention tools and configurable rules.

· Ability and flexibility for payment gateway processor agnostic.

3.5 Security & Compliance

· Full Payment Card Industry Data Security Standards (PCI-DSS) compliance and certification.

· Fraud detection and prevention tools.

· Tokenization and encryption of cardholder data.

· Regular system updates and vulnerability patching.

· Compliance with all federal and state financial regulations.

· Regularly test for vulnerabilities.

3.6 Reporting and Reconciliation

· Real-time transaction monitoring.

· Daily, weekly, and monthly transaction reports.

· Transaction reporting by bureau, department, and location.

· Customizable reporting capabilities.

· Automated reconciliation tools to match deposits to payments.

· Integration with City’s ERP/accounting systems.

· Custom reporting and dashboard functionality.

· User-accessible portal for reporting and analytics.

3.7 Customer Support and Account Management

· Dedicated account manager.

· 24/7 technical support U.S.-based, dedicated customer service and technical support.

· Dispute resolution and chargeback assistance.

· Implementation and onboarding support/training.

· SLA for issue response and resolution times.

· Semiannual/annual review meetings with the City’s Treasury team.

3.8 Deliverables

· Project plan with implementation timeline.

· PCI Attestation of Compliance (AOC) and documentation – provided annually.

· Merchant account setup and configuration documentation.

· Installation and configuration of payment devices or systems.

· Training materials and user guides for City staff.

· Access credentials to reporting tools and customer support contacts.

· Regular performance and service level reports.

· Monthly interchange optimization performance reports.

· Provide recommendations for ongoing improvements.

3.9 Merchant Account Services

· Establish and maintain merchant accounts for various City bureaus and locations.

· Provide flexibility to open and close accounts as needed.

· Support multiple MID/TID configurations with hierarchical or consolidated reporting options.

· Capability to implement and manage Visa Interchange Optimization Program.

3.10 Technical or Required Services

The selected contractor will perform the tasks listed below for this project:

a. Authorization, processing, and settlement of credit card and debit card transactions (processed as credit) for Visa, MasterCard, Discover and American Express

b. Establish new merchant accounts as requested by Treasury on behalf of City locations.

c. Provide daily gross settlement and monthly auto-debiting of fees for each merchant account.

i. No later than one-day settlement for all transaction proceeds.

ii. Transactions taking place on a Saturday, Sunday or holiday must settle on the next business day.

iii. Merchant IDs must be identified in the addenda information provided in the ACH and passed through to the City on its bank statement so City can identify settlements by individual merchant locations.

iv. Each merchant account must be able to set different settlement times to coincide with business processes.

d. Provide “interchange-plus” pricing with a flat per-transaction processing fee regardless of actual volume processed.

e. Monitor City’s interchange charges. Provide assistance resolving transaction downgrades and identifying ways to minimize interchange costs.

f. Provide a secure online reporting platform with timely and comprehensive monthly and transaction-level reporting.

g. Provide the ability to export transaction daily data and reports in multiple file formats (BAI2, .xls, .csv, .txt, .pdf) for analysis and upload into SAP.

h. Provide EMV-compliant point-of-sale terminals with activated point-to-point encryption.

i. Assign a dedicated and experienced client relationship manager, preferably in Pacific Time zone, as City’s principal contact who will meet with the City at least semi-annually for a Business Review.

j. Provide operational support so Treasury can advise and support City bureaus and their end customers.

k. Provide timely communication regarding system upgrades, service interruptions, and Card Association pricing and service changes.

l. Advise City regarding PCI DSS compliance matters and represent City to the Card Associations regarding PCI DSS compliance.

m. Advise City on the applicability of convenience fee and surcharge programs, as permitted by each card scheme’s operating regulations, on an individual merchant account basis.

n. Advise city regarding each payment card scheme’s operating regulations, bylaws, rules, programs, specifications, and manuals, as needed.

2.1 Payment Processing

a. Process major card brands including Visa, MasterCard, American Express, and Discover.

b. Support debit card transactions with or without PIN.

c. Provide support for additional payment methods, such as mobile wallets (e.g., Apple Pay, Google Pay) and ACH/eCheck.

d. Ensure real-time transaction processing with 24/7 system availability.

2.2 Equipment & Integration

a. Provide and support point-of-sale (POS) devices, payment terminals, and mobile payment options.

b. Ensure seamless integration with existing City systems and third-party platforms (Reference Section 1 above).

c. Support both hosted payment pages and APIs for e-commerce and custom integrations.

d. Ensure all hardware is EMV, NFC, and PCI-compliant.

2.3 Security & Compliance

a. Ensure full compliance with Payment Card Industry Data Security Standards (PCI DSS) and provide annual Attestation of Compliance (AOC).

b. Provide tools and support for PCI scope reduction, tokenization, and point-to-point encryption (P2PE).

c. Support fraud prevention and chargeback management tools.

2.4 Reporting & Reconciliation

a. Provide comprehensive, user-friendly reporting tools accessible via a secure web portal.

b. Enable real-time and batch reporting, customizable exports, and reconciliation support.

c. Allow access for multiple bureaus/departments with configurable permissions.

2.5 Customer Support & Training

a. Provide U.S.-based, dedicated customer service and technical support.

b. Offer onboarding assistance and training for City staff.

c. Provide resources for ongoing education and updates on systems, features, or compliance requirements.

Section 4: Appendix and Attachments

Attachment 1 - Merchant Services Description (to be released after the City receives a signed NDA, which will be provided at the mandatory pre-proposal meeting)

Attachment 2 - Sample Contract (separately attached)

Attachment 3 - Respond to Bid Opportunity (RFX) On SAP Business Network (separately attached)

Attachment 4 - Total Overall Cost (separately attached)

Appendix A - Requirements (separately attached)

Section 5: Sample Contract Please see Attachment 2 – Sample Contract (separately attached)

Section 6: RFP Terms and Conditions [Link to RFP Terms and Conditions: https://www.portland.gov/business-opportunities/documents/terms-and-conditions-rfp-sample-v2/download

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