RFP Document.pdf

Dated 10/16/23

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 FRIDAY, NOVEMBER 7, 2025

RFP #: 25rfp17862 State POC: Bureau of Human Resources and Administration - Peggy Canter

EMAIL: Peggy.Canter@state.sd.us

READ CAREFULLY

FIRM NAME: AUTHORIZED SIGNATURE:

ADDRESS: TYPE OR PRINT NAME:

CITY/STATE: TELEPHONE NO:

ZIP (9 DIGIT): FAX NO:

E-MAIL:

PRIMARY CONTACT INFORMATION

CONTACT NAME: Peggy Canter TELEPHONE NO: 605.773.4099

FAX NO: 605.773.6947 E-MAIL: Peggy.Canter@state.sd.us

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 #25RFP17862. 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)

RFP Publication October 9, 2025

Offeror Questions Due October 17, 2025

Responses to Offeror Questions October 24, 2025

Proposal Submission Due November 7, 2025 5:00 p.m. CDT

Oral Presentations/discussions (if required) November 10, 2025 – Dec 5, 2025

Final Vendor Selection December 5, 2025

Anticipated Award Decision/Contract Negotiation December 2025

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

All proposals must be signed, in ink, by an officer of the responder, legally authorized to bind the responder to the proposal, and sealed in the form intended by the respondent. 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 bidder 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, 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, 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 #25RFP17862”.

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

mailto:Peggy.Canter@state.sd.us

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.

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, 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

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 bidder 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 https://www.sd.gov/bhra

3.2 The bidder 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.

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

3.4 The bidder 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.

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

3.6 The bidder must provide access to the tool as part of the RFP process for the State.

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

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

3.9 The bidder 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

If the offeror is hosting the solution, provide a diagram giving an overview of the proposed system. It is preferred that this diagram be provided as a separate document or attachment. The file must be named “(Your Name) Hosted System Diagram”. If the offeror elects to make the diagram part of the proposal, then the location of the diagram must be clearly indicated in the Table of Contents.

The offeror should state whether its proposed solution will operate in a virtualized environment. Offeror also should 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 solution diagram for the offeror hosted solution.

This section identifies tasks and deliverables of the project as described in Section 3 above. The selected offeror is responsible for providing the required deliverables. These deliverables will be the basis against which the offeror’s performance will be evaluated.

The offeror is required to include a test system for its application. This test system will be used at the discretion of BIT. All resource costs associated with keeping the test system available must be borne by the project owner or the offeror. Any licensing costs for the test system must be included with the costs.

At BIT’s discretion, any code changes made by the offeror, either during this project or thereafter, will be placed in the above test system first. It is at BIT’s discretion if the code changes are applied by BIT or the offeror. If the code testing delays a project’s timeline, a change management process should be followed, and the State will not be charged for this project change. If the test and production systems are to be hosted by the State, the schedule for the testing of the code changes is to be decided by BIT. Testing of emergency code changes will be scheduled by BIT based on the severity and resource availability.

The test system will be maintained by the offeror as a mirror image of the production system code base. At BIT’s discretion, updates to the production system will be made by copying code from the test system after the test system passes BIT certification requirements.

If BIT determines that the application must be shut down on the production system, for any reason, the offeror will, unless approved otherwise by BIT, diagnosis the problem on and make all fixes on the test system. The offeror is expected to provide proof, to BIT, of the actions taken to remediate the problem that led to the application being denied access to the production system before the application can go back into production. This proof can be required by BIT even if the fix passes all BIT certification criteria. BIT is willing to sign a non-disclosure agreement with the offeror if the offeror feels that revealing the fix will put the offeror’s intellectual property at risk.

All solutions acquired by the State that are hosted by the offeror, including Software as a Service, or hosted by a third-party for the offeror will be subjected to security scans by BIT or preapproved detailed security scan report provided by the offeror. The scan report sent in with the proposal can be redacted by the offeror. The State’s goal at this point is to see if the contents of the report will be acceptable, not to review the contents themselves. If the offeror will be providing a security scan report, one must be sent with the proposal for approval. Approval is not guaranteed. If the scan report is not acceptable, the State must scan the offeror’s solution. The actual scanning by the State or the submission of a security scan report will be done if the proposal is considered for further review. A detailed security report must consist of at least:

• The system that was evaluated (URL if possible, but mask it if needed).

• The categories that were evaluated (example: SQL injection, cross site scripting, etc.)

• What were the general findings, (meaning how many SQL injection issues were found, what was the count per category)

• Technical detail of each issue found. (where was it found – web address, what was found, the http response if possible)

The cost of any scans done by the offeror or the offeror’s costs associated with the State’s scans must be part of the offeror’s bid. If the offeror is sending a security scan report, it should price the product both as if the State was to do the security scan or if the offeror was to do the security scan.

Unless expressly indicated in writing, the State assumes all price estimates and bids are for the delivery and support of applications and systems that will pass security and performance testing. If the State determines the hardware, website(s), software, and or cloud services have 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 product(s) does not pass the initial security scan, additional security scans may be required to reach an acceptable level of security. The offeror must pass a final follow-up security scan for the website(s), software or cloud services for the product(s) to be acceptable products to the State. The State may suspend or cancel payments for hardware, website(s), software, or cloud services that do not pass a final security scan.

Any website or web application hosted by the offeror that generates email cannot use “@state.sd.us” as the originating domain name per state security policy.

As part of this project, the offeror will provide a monitoring tool the State can utilize to monitor the operation of the proposed solution as well as all systems and all subcomponents and connections. It is required that this tool be easy to use and provide a dashboard of the health of the proposed solution. The effectiveness of this monitoring tool will be a component of the acceptance testing for this project.

As part of the project plan, the offeror will include development of an implementation plan that includes a back out component. Approval of the implementation plan by BIT should be a project milestone. Should the implementation encounter problems that cannot be resolved and the implementation cannot proceed to a successful conclusion, the back out plan will be implemented. The Implementation and back out documentation will be included in the project documentation.

The successful offeror will use the approved BIT processes and procedures when planning its project, including BIT’s change management process. Work with the respective agency’s BIT Point of Contact on this form. The Change Management form is viewable only to BIT employees. The purpose of this form is to alert 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 resources and systems to schedule the:

• Movement of individual source code from test to production for production systems

• Implementation of a new system

• A major enhancement to a current system or infrastructure changes that impact clients

• Upgrades to existing development platforms

If as part of the project the state will be acquiring software the proposal should clearly state if the software license is perpetual or a lease. If both are options, the proposal should clearly say so and state the costs of both items separately.

Include in your submission details on your:

• Data loss prevention methodology;

• Identity and access management;

• Security intelligence;

• Annual security training and awareness;

• Manual procedures and controls for security;

• Perimeter controls;

• Security certifications and audits.

If the offeror will have State data on its system(s) or on a third-party’s system and the data cannot be sanitized at the end of the project, the offeror’s proposal must indicate this and give the reason why the data cannot be sanitized as per the methods in NIST 800-88.

The offeror’s solution 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 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.

If the offeror’s solution requires 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 solution. If the offeror later requires accounts that exceed the number of accounts that was originally indicated, the costs of those accounts will be borne by the offeror and not passed onto the State. All State security policies can be found in the Information Technology Security Policy (ITSP) attached to this RFP. The offeror should review the State’s security policies regarding authorization, authentication, and, if relevant, remote access (See ITSP 230.67, 230.76, and 610.1). Use of Remote Access Devices (RAD) by contractors to access the State’s system must be requested when an account is requested. The offeror should be aware that access accounts given to non-state employees, Non-State (NS) accounts, will be disabled if not used within 90 days. A NS account may be deleted after 30 days if it is not used.

The following tests may be required:

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.

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).

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.

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.

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.

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.

The State, at its sole discretion, may consider a solution that does include all or any of these deliverables or consider deliverables not originally listed. An offeror must highlight any deliverable it does not meet and give any suggested “work-around” or future date that it will be able to provide the deliverable.

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.

http://searchnetworking.techtarget.com/definition/response-time http://searchdatacenter.techtarget.com/definition/MIPS http://whatis.techtarget.com/definition/reliability http://searchdatacenter.techtarget.com/definition/scalability http://searchsoa.techtarget.com/definition/interoperability http://searchsoftwarequality.techtarget.com/definition/stress-testing http://searchnetworking.techtarget.com/definition/availability http://searchsoftwarequality.techtarget.com/definition/performance-testing

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 Cost Proposal. Cost will be evaluated independently from the technical proposal. Offerors may submit multiple cost proposals. All costs related to the provision of the required services must be included in each cost proposal offered.

6.3.4.1 A per hour rate for consulting services is desirable for the primary consultant.

6.3.4.2 It is expected that the firm will provide the Scope of Services as described in Section 3.0-

3.4 for an all-inclusive not to exceed lump sum price which shall include labor, mileage, insurance, travel expenses, lodging, office supplies, office equipment, photocopying, overhead and profit and all other expenses necessary to complete the referenced project according to “normal” industry standards per the specifications, exclusive of all taxes.

Overhead shall include all costs associated with project management, corporate accounting, invoice preparation, and all other expenses indirectly associated with the project. Include this all-inclusive lump sum in the proposal. The State requests the services in 3.5 be provided as an individual item so the state may review it separately.

6.3.4.3 The State recognizes that at times various projects and services may develop that are not part of the proposed Scope of Services. State the current hourly billing rates and position title for each level of employee that may be involved in conducting additional services. The hourly rates are to be all inclusive of labor, mileage, insurance, travel expenses, lodging, office supplies, office equipment, photocopying, overhead and profit and all other expenses necessary to complete the referenced project according to “normal” industry standards per the specifications, exclusive of all taxes. Overhead shall include all costs associated with project management, corporate accounting, invoice preparation, and all other expenses indirectly associated with the project.

6.3.4.4 Describe additional costs, if any, which may be charged for minor requests/questions that require minimal research time.

6.3.4.5 See section 7.0 for more information related to the cost proposal.

7.0 PROPOSAL EVALUATION AND AWARD PROCESS

7.1 After determining that a proposal satisfies the mandatory requirements stated in the Request for Proposal, the evaluator(s) shall use subjective judgment in conducting a comparative assessment of the proposal by considering each of the following criteria:

7.1.1 Specialized expertise, capabilities, and technical competence as demonstrated by the proposed approach and methodology to meet the project requirements (200 points);

7.1.2 Resources available to perform the work, including any specialized services, within the specified time limits for the project (150 points);

7.1.3 Record of past performance, including price and cost data from previous projects, quality of work, ability to meet schedules, cost control, and contract administration (150 points);

7.1.4 Availability to the project locale (50 points);

7.1.5 Familiarity with the project locale (100 points);

7.1.6 Proposed project management techniques (100 points);

7.1.7 Ability and proven history in handling special project constraints (50 points); and

7.1.8 Cost (200 points).

7.2 Experience and reliability of the offeror's organization are considered subjectively in the evaluation process.

Therefore, the offeror is advised to submit any information which documents successful and reliable experience in past performances, especially those performances related to the requirements of this RFP.

7.3 The qualifications of the personnel proposed by the offeror to perform the requirements of this RFP, whether from the offeror's organization or from a proposed subcontractor, will be subjectively evaluated. Therefore, the offeror should submit detailed information related to the experience and qualifications, including education and training, of proposed personnel.

7.4 The State reserves the right to reject any or all proposals, waive technicalities, and make award(s) as deemed to be in the best interest of the State of South Dakota.

7.5 Award: The requesting agency and the highest ranked offeror shall mutually discuss and refine the scope of services for the project and shall negotiate terms, including compensation and performance schedule.

7.5.1 If the agency and the highest ranked offeror are unable for any reason to negotiate a contract at a compensation level that is reasonable and fair to the agency, the agency shall, either orally or in writing, terminate negotiations with the contractor. The agency may then negotiate with the next highest ranked contractor.

7.5.2 The negotiation process…