RFP_EEOS90326.pdf

MALIA M. COHEN

CALIFORNIA STATE CONTROLLER

September 3, 2026

REQUEST FOR PROPOSAL (RFP) (Secondary) NUMBER EEOS90326

Accounting Auditing Expertise and Technical Advisory Services

Notice to Prospective Proposers

You are invited to review and respond to this Request for Proposal (RFP) (Secondary) Number EEOS90326.

In submitting your proposal, you must comply with these instructions.

Read the attached document carefully. Please submit all required forms and documents with your proposal response as indicated in this RFP. Any response received after the date and time indicated in this RFP will not be considered for review.

Proposers are advised to check the Cal eProcure website for addendums, modifications, and updates to the Proposal documents. The State Controller's Office (SCO) is not responsible for failure of the prospective proposer to check for any proposal document updates, changes, or answers to questions posted on Cal eProcure. Failure to periodically check the website will be at the Proposer’s sole risk.

If a discrepancy occurs between the information in the advertisement appearing on the Department of General Services, California State Contracts Register (CSCR) on the Cal eProcure website:

https://caleprocure.ca.gov/pages/Events-BS3/event-search.aspx and the information in the herein RFP, the information in the attached RFP shall take precedence.

Note that all contracts entered into with the State of California will include by reference General Terms and Conditions and Contractor Certification Clauses that may be viewed and downloaded at Internet site https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List- Folder/Standard-Contract-Language. If you do not have Internet access, a hard copy can be provided.

In the opinion of SCO, this RFP is complete and without need of explanation. However, if you have questions, or should you need any clarifying information, please email SCOBids@sco.ca.gov.

Please note that no verbal information given will be binding upon the State unless such information is issued in writing as an official addendum.

https://caleprocure.ca.gov/pages/Events-BS3/event-search.aspx https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language mailto:SCOBids@sco.ca.gov

State Controller’s Office RFP Number EEOS90326

TABLE OF CONTENTS

A. RFP Information B. Purpose and Description of Services C. Minimum Qualifications

1. Proposer Firm Minimum Qualifications

2. Key Staff Minimum Qualifications

3. Background Check

D. Proposal Requirements and Information

1. Key Action Dates

2. Written Questions & Answers

3. Technical Proposal

E. Submission of Proposal F. Evaluation Process G. Technical Proposal Evaluation and Scoring

1. Proposer Guarantee……………………………………………………………………………………………..16

2. Firm’s Organizational and Operational Background

3. Approach/Methodology

4. Metrics

5. Firm References

6. Key Staff Reference

7. Interview

8. Score Total

H. Award and Protest I. Disposition of Proposals J. Agreement Execution and Performance K. Incentive and Requirement Programs

1. Disabled Veteran Business Enterprise (DVBE) Program Participation

2. DVBE Incentive

3. Small Business Requirement

L. Required Attachments Attachment 1, Required Attachment Checklist Attachment 2, Proposal/Proposer Certification Sheet Attachment 3, Contractor Point of Contact Attachment 4, Payee Data Record (STD 204) and Supplement (STD 205)* Attachment 5, Contractor Certification Clauses (CCC 04/2017) Attachment 6, Bidder Declaration (Written) (GSPD-05-105) Attachment 7, California Civil Rights Laws Certification (DGS OLS 04) Attachment 8, Darfur Contracting Act Certification (DGS PD 1)* Attachment 9, California Disabled Veteran Business Enterprise (DVBE) Declarations (STD 843)* Attachment 10, Secretary of State Certification Status* Attachment 11, Generative Artificial Intelligence (GenAI) Disclosure Attachment 12, Acknowledgement of Agreement Exhibits and Policies Attachment 13, Proposal Requirements and Incentives Attachment 14, Contractor/Consultant Organization Information Security Agreement (ISO-004c) Attachment 15, Contractor/Consultant Confidentiality and Non-Disclosure Acknowledgement (ISO-004b) Attachment 16, Firm Minimum Qualifications Attachment 17, Key Staff Minimum Qualifications Attachment 18, Firm References Attachment 19, Key Staff References Attachment 20, Cost Worksheet

Standard Agreement Exhibit A – Scope of Work Exhibit A, Attachment 1, Sample Deliverable Expectation Document Exhibit A, Attachment 2, Sample Deliverable Acceptance Document Exhibit A, Attachment 3, Key Staff Change Request Form Exhibit A, Attachment 4, Key Staff Change Reference Form Exhibit A, Attachment 5, Work Authorization Form Exhibit A, Attachment 6, Small Business Subcontractor Report Exhibit B, Budget Detail and Payment Provisions Exhibit B Attachment 1, Cost Worksheet Exhibit C, General Terms and Conditions (GTC 02/2025)** Exhibit D, Special Terms and Conditions Exhibit E, Information Technology, Data, and Security Provisions Exhibit F, Resumes

*Submit only if applicable.

**Incorporated by reference only.

A. RFP Information

This RFP contains the instructions governing the requirements for interested Proposers. The format in which an offer is to be submitted and the material to be included therein is set forth below. This RFP also addresses the requirements that the Proposers must meet to be eligible for consideration. Additionally, it addresses the Proposer’s responsibilities before and after award.

B. Purpose and Description of Services

The State Controller’s Office (SCO) is seeking a contractor to provide accounting auditing expertise and technical advisory services to re-imagine and provide a best-in-class external audit function.

These services will include an assessment of the Division of Audits in compliance with the California (CA) Constitution and Generally Accepted Government Auditing Standards (GAGAS) whenever applicable and shall include recommendations for organizational structure, staffing levels and classifications, training needs, and audit approach including risk-based audits. Recommendations should ensure that SCO adheres to the rigorous compliance standards of the CA Constitution and fulfills the GAGAS requirements, meets best-in-class quality standards, employs best practice models, and uses relevant benchmarks to assess performance.

See the Standard Agreement, Exhibit A, Scope of Work for a complete description of services.

Agreement Term

The term of this agreement will be for two years with the options to extend the term for an additional year to complete the deliverables as deemed necessary by SCO. The rates in Attachment 20, Cost Worksheet will not increase as a result of any amendment to this agreement. This agreement may be terminated by either party with 30 days’ written notice.

Contractors are cautioned that no work will begin until the Agreement has been fully executed. If work is performed prior to the agreement approval, and the Agreement for any reason is not approved, all previous work performed by the Contractor is considered donated to the SCO and no payment shall be made for that work.

Agreement Amount

The Contractor and the SCO Contract Manager are responsible for monitoring the Agreement cost to ensure it does not exceed the maximum amount of the Agreement without an executed amendment.

The total budget for this agreement is $350,000.00.

C. Minimum Qualifications

Proposers must meet all of the following Minimum Qualifications (MQ) and submit the required attachments and any documents (i.e., organizational charts, resumes, licenses, and degrees, etc.) that clearly explain and substantiate how the particular Minimum Qualification is met to be considered responsive. A responsive proposal is one that meets or exceeds all the requirements stated in this RFP. Any proposal that does not meet the MQs and does not submit the required documents may be considered non-responsive and may be disqualified.

1. Proposer Firm Minimum Qualifications

The Proposer Firm (Proposer) is expected to have a proven record of success providing accounting auditing expertise and technical advisory services, and be responsible for all aspects of the services, including any subcontractors and the project team/proposed key staff.

The Proposer must complete and submit as part of the Proposal, Attachment 16, Firm Minimum Qualifications (FMQs) Workbook, to confirm that the Proposer experience meets all of the qualifications indicated below.

a) The Proposer must be a professional public accounting firm that provides audit and other attest services with experience in establishing or enhancing external auditing functions. The Proposer shall provide a copy of its current active Certified Public Accountant (CPA) license issued by the California Board of Accountancy (CBA), or current active license, registration, permit, or other authorization to practice public accountancy issued in another U.S. state or jurisdiction and, if required by California law, a current Out-of-State Firm Registration (OFR) issued by the CBA.

b) The Proposer shall have at least 10 years of experience, performing attest services in establishing or enhancing auditing functions using GAGAS requirements for state government accounting or auditing.

2. Key Staff Minimum Qualifications

The Proposer must identify at least one, but no more than three, key staff who will be assigned to perform services for this agreement, including subcontractor key staff (when applicable). The Proposer must complete Attachment 17, Key Minimum Staff Qualifications (KSMQ) Workbook and provide resumes and/or certifications (if applicable) for Key Staff to validate staff qualifications. For the purpose of assessing KSMQs, one year of experience is defined as 52 weeks of full-time work (40 hours per week).

Each key staff member must have the following:

a) At least 10 years of experience performing leadership roles and responsibilities in conducting audits that comply with GAGAS promulgated by the U.S. Government Accountability Office.

b) At least 10 years of experience in developing training plans and other training materials for agencies and personnel on accounting, auditing, and the GAGAS requirements.

c) At least 10 years of experience with managing an external audit function.

d) Possession of a current active license or certification as a Certified Public Accountant (CPA). The

Proposer shall provide a copy(ies) of the current active CPA license(s) or certification(s) for each proposed key staff member.

3. Background Check

This agreement requires the proposed key staff performing the services of this RFP to pass a Live Scan background check. Upon notice of agreement award, SCO will provide the Contractor with all necessary forms and locations for each proposed key staff to complete the background check process.

a. If proposed key staff are located in the Sacramento area, they must be fingerprinted at SCO.

b. If proposed key staff are located outside the Sacramento area, but in Northern California, they may go to a Live Scan location of their choosing.

c. If proposed key staff are located in Southern California or outside of California, they must go to a local law enforcement agency or other entity licensed to roll fingerprints to request completion of a standard FBI applicant fingerprint card (FD-258) provided by SCO and mail [i.e., United States Postal Service (USPS)] the completed forms and FD-258 back to SCO.

Key staff background checks must be completed and passed prior to execution of the Agreement. If a Contractor’s proposed key staff does not pass the Live Scan background check process, the Contractor must replace the offered individual with a new candidate within seven business days that meets or exceeds all requirements stated in Section C, Minimum Qualifications, Item 2, Key Staff Minimum Qualifications. At SCO discretion, SCO may cancel award of the Agreement subject to failed background checks. Contractors and the proposed key staff will be held to the same background check standards as SCO employees.

The Proposer shall ensure that each proposed key staff under the Agreement are made aware of, understand, and comply with the provisions of SCO Live Scan background checks. Any additional or replacement individuals added to the Agreement will be subject to the same terms.

D. Proposal Requirements and Information

1. Key Action Dates

ACTION DATE

RFP Available to Prospective Proposers September 3, 2026

Written Questions Submittal Deadline September 14, 2026, prior to 2:00 p.m.

PT*

Written Questions & Answers Released September 21, 2026, by 5:00 p.m. PT*

Final Date for Proposal Submission September 30, 2026, prior to 2:00 p.m.

PT*

Evaluation of Proposals** September 30, 2026, through October 7, Interviews October 8, 2026, through October 9, 2026 Notice of Intent to Award October 9, 2026 Proposed Award Date October 19, 2026

Agreement Begins November 2, 2026, or upon DGS approval, whichever is later

*Pacific Time (PT)

**Dates after Proposal Submission are estimates only and may be subject to change. SCO will adhere to the listed dates as strictly as possible, but will not be held accountable for changes due to unforeseen circumstances.

2. Written Questions & Answers

a. Proposers may submit questions for clarification of the content of this RFP to

SCObids@sco.ca.gov. Questions must be submitted on or before the Written Questions Submittal Deadline date as stated in Section C, Proposal Requirements and Information, 1.

Key Action Dates.

b. Any questions or proposed changes to the RFP or Standard Agreement and the reason for the modification request must be submitted on or before the Written Questions Submittal Deadline date as stated in Section C, Proposal Requirements and Information, 1. Key Action Dates. A proposal submitted with alternate agreement language, that was not accepted through an addendum to the RFP, will be considered a counteroffer and will not be considered. The State’s General Terms and Conditions (GTC 02/2025) are not negotiable.

mailto:SCObids@sco.ca.gov

c. The subject line of the email should read, RFP EEOS90326 Questions – Company Name.

d. The Proposer must reference the section and page number about which they are inquiring.

e. Written Questions and Answers will be provided without identifying the submitter. SCO may paraphrase questions, at its sole discretion, for clarity.

f. Questions and Answers will be posted to Cal eProcure on or before the Written Questions & Answers Released date specified in Section C, Proposal Requirements and Information, 1.

Key Action Dates.

3. Technical Proposal

Proposals must describe the Proposer’s qualifications and expertise in the format outlined in this RFP. A Proposal will not be considered complete unless it contains all the items described below. Technical Proposal includes all the following items:

a. Attachment 1, Required Attachment Checklist

The Proposer shall submit all applicable attachments identified on Attachment 1, Required Attachment Checklist. Proposers are not to alter or modify the forms other than by providing the required information; please note, adding your firm’s logo or letterhead to the form is not considered a modification or alteration of the form.

b. Licenses and Certifications

1) The Proposer must provide copies of the licenses and certifications required to meet the

Proposer’s minimum qualifications.

2) The Proposer must provide copy of a valid California city or county business license (if applicable); or, if a corporation located within the State of California, incorporation documents; or, letter from the Secretary of State or, if not a California business, an affidavit that the business is in good standing with the state, province, or country in which business is headquartered.

3) Proposers shall obtain, at their expense, all license(s) or permit(s) required by law for accomplishing any work required in connection with this agreement.

4) All licenses must remain valid for the term of the Agreement. In the event that any license or certification expires at any time during the term of this agreement, the Contractor agrees to provide SCO a copy of the renewed license within 30 days following the expiration date. In the event the Contractor fails to keep in effect at all times all required licenses, SCO may, in addition to any other remedies it may have, terminate this agreement upon occurrence of such event.

c. Proposer Guarantee (Five Points)

The Proposer shall provide a Letter of Guarantee explaining their ability to perform the services identified in Standard Agreement, Exhibit A, Scope of Work and includes:

1) A statement expressing the Proposer’s availability of staff and other required resources to successfully complete all deliverables and to perform all necessary tasks described in this RFP in a remote environment.

2) A statement expressing the Proposer’s strong commitment to establishing, maintaining, and supporting diversity in its ownership and professional staff members.

3) A statement expressing the Proposer’s willingness to comply with the terms and conditions of this agreement.

4) A signature from an individual who is authorized to bind the Proposer contractually to certify that the Proposer guarantees their ability to perform the services as identified in this RFP.

d. Firm’s Organizational and Operational Background (15 points)

1) Organizational Structure

List the name and classification of the proposed key staff member and identify who will be assigned to each of the tasks and deliverables identified in Standard Agreement, Exhibit A, Scope of Work.

2) Operational Structure

i. Describe the usual process for interface with the client and the communication plan for completing the tasks and deliverables under this agreement including:

• The firm’s chain of command

• Who is the individual with overall responsibility for the firm’s operations?

• What will be the role of each proposed key staff member?

• What will be the role of the support staff?

ii. Describe experience in working with Executive (C-Suite) government entities relative to external control assessments (private governmental).

e. Approach/Methodology (200 Points)

1) The Proposer shall provide a detailed approach including a summary of the work to be completed as understood, the goals and objectives to complete the requisite tasks, the resources necessary to achieve these outputs, the actions to be taken or strategy to be utilized to achieve these outcomes, and a timeline or schedule to complete the Agreement requirements as identified in this RFP. The Approach/Methodology will be scored based on the comprehensiveness and detail provided. The detailed plan and schedule of when and how the audit services will be provided shall include:

i. A list of standard services provided in a best-in-class external audits office of a large financial or governmental entity.

ii. A list of similar types of agreements that were successfully concluded, with a sample of such work.

iii. A description of the Proposer Firm’s outreach efforts relative to diversity, equity and inclusion as well as to disadvantaged communities.

iv. A description of internal quality control policy and procedures, including independent review of work before or after releasing the final product to the client.

v. A description of safeguards in place to protect clients’ confidential and sensitive data.

vi. Identification of subcontractors (if applicable). Include subcontractor’s qualifications, reporting responsibility of each firm (prime contractor and subcontractors) and/or the person assigned to each task and method of monitoring performance.

f. Metrics (10 points)

The Proposer shall provide a detailed summary of the basis and/or criteria for selecting best practice models.

g. Firm References (25 Points)

1) The Proposer shall provide three current references for similar type of services performed within the last 10 years on Attachment 18, Firm References. Attachment 18, Firm References must be completed in its entirety. At least one reference must be from experience used to meet the Firm Minimum Qualifications.

2) References will be contacted to validate ratings. SCO will make up to three attempts via phone/email to validate references. Failure to reach a listed reference will result in the ratings being scored zero and the Proposal may be deemed non-compliant and disqualified in its entirety.

References will be scored based on the accumulative average score provided by the three references listed on Attachment 18, Firm References.

h. Key Staff References (45 Points)

1) The Proposer shall provide one current reference for each proposed key staff for similar types of services performed within the last 10 years on Attachment 19, Key Staff References. Attachment 19, Key Staff Reference must be completed in its entirety. The reference must be from experience used to meet Key Staff Minimum Qualifications.

References will be contacted to validate ratings. SCO will make up to three attempts via phone/email to validate each reference. Failure to reach the listed reference will result in the ratings being scored at zero and the Proposal may be deemed non-compliant and disqualified in its entirety. The Key Staff References will be scored based on the accumulative average score provided by the three references listed on Attachment 19, Key Staff References.

E. Submission of Proposal

1. Proposals must be submitted as set forth below.

a. Proposers must submit their proposal (Technical Proposal) in Portable Document Format (PDF) and Minimum Qualifications in Excel attached to an email to SCOBids@sco.ca.gov by the date and time specified in Section C, Proposal Requirements and Information, Item 1. Key Action Dates.

b. All proposals must be submitted in at least two (2) separate emails.

1) Email #1 (Proposal) must include the Proposer’s submission with the subject line identifying the submission as RFP EEOS90326 - PROPOSAL—Company Name. Bids must be formatted for 8 1/2” x 11” paper with all pages consecutively numbered, each required element clearly identified, and in the sequence presented in this RFP.

2) Email #2 (Attachment 20, Cost Worksheet) must include the Proposer’s cost with the subject line identifying the submission as RFP EEOS90326 - COST—DO NOT OPEN. The Cost email shall remain unopened and separate from the sealed proposal email until the public cost opening.

mailto:SCOBids@sco.ca.gov

c. Email Requirements

1) Proposers must ensure that emails do not exceed a file size of 20 megabytes.

2) Proposers must ensure that emails do not contain scripts, password protections, executable files, or macros, which may make their emails undeliverable.

3) Do not imbed links within the PDF—all documents must be contained within the PDF. SCO cannot access links to external sources. Proposals containing links to external sources will be rejected.

4) If the email should exceed acceptable file size, the Proposer shall split the email into multiple emails to ensure delivery.

5) Proposal submissions that are sent from unrecognized email servers may be blocked by SCO security filters and be flagged as spam, thereby rendering them unsubmitted.

6) An automatic reply from SCOBids@sco.ca.gov confirms receipt of proposers’ emails. Automatic replies only confirm receipt of emails and do not assess proposers’ responsiveness to the RFP requirements in the email content or in any attachments therein.

7) LATE PROPOSAL SUBMISSIONS WILL NOT BE ACCEPTED—NO EXCEPTIONS.

d. Proposals not marked as indicated may be rejected.

e. If the Proposal is made under a fictitious name or business title, the actual legal name of the Proposer must be provided.

f. All proposals shall include the documents identified in Attachment 1, Required Attachment Checklist. Proposals not including the proper "required attachments" may be deemed non-responsive. A non-responsive proposal is one that does not meet the basic proposal requirements.

g. All documents requiring a signature must bear the signature of a person authorized to bind the proposing firm.

h. Proposals must be submitted for the performance of all the services described herein. Any deviation from the work specifications will not be considered and will cause a proposal to be rejected.

i. SCO may reject any or all proposals. A proposal may be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind.

j. SCO may waive an immaterial deviation in a proposal. SCO waiver of an immaterial deviation shall in no way modify the RFP document or excuse the Proposer from full compliance with all requirements if awarded the Agreement.

k. Costs incurred for developing proposals and in anticipation of award of the Agreement are entirely the responsibility of the Proposer and shall not be charged to the State of California.

l. An individual who is authorized to bind the Proposer contractually shall sign Attachment 2, Proposal/Proposer Certification Sheet. The signature should indicate the title or position that the individual holds in the firm. An unsigned proposal shall be rejected.

m. A proposer may modify a proposal after its submission by withdrawing its original proposal and resubmitting a new proposal prior to the Final Date for Proposal Submissions. A proposer’s modification offered in any other manner, oral or written, will not be considered.

mailto:SCObids@sco.ca.gov

n. A proposer may withdraw its proposal by submitting a written withdrawal request to SCO, signed by the Proposer or an authorized agent. A proposer may thereafter submit a new proposal prior to the Final Date for Proposal Submission. Proposals may not be withdrawn without cause subsequent to the Final Date for Proposal Submission.

o. SCO may modify the RFP prior to the Final Date for Proposal Submission by issuing an addendum that shall be posted to Cal eProcure.

p. SCO reserves the right to reject all proposals. SCO is not required to award an agreement.

q. SCO does not accept alternate agreement language from a prospective contractor. A proposal with such language will be considered a counterproposal and will be rejected. The State’s General Terms and Conditions (GTC 02/2025) are not negotiable.

r. No oral understanding or agreement shall be binding on either party.

F. Evaluation Process

1. The evaluation process complies with the requirements for competitive bidding in California Public

Contract Code Section 10344. Each proposal will be evaluated to determine responsiveness to the requirements and standards described in this RFP. SCO cannot assume nor infer qualifications, skill, experience, or competence not specifically and expressly addressed in the Proposal. SCO reserves the right, at its sole discretion, to forgo the interview process. If SCO elects not to conduct interviews, all responsive and responsible proposals that advance to the technical evaluation stage shall receive the maximum points allocated for the interview component.

2. Proposals cannot be changed after the time and date designated for receipt.

3. Proposals that contain false or misleading statements, or which provide references, which do not support an attribute or condition claimed by the Proposer, may be rejected.

4. A responsive proposal is one which meets or exceeds the requirements stated in this RFP. At the time of proposal opening, each proposal will be checked for the presence or absence of required information in conformance with the submission requirements of this RFP, proposals that meet the minimum qualifications will be evaluated and scored according to the criteria indicated in the following process:

a. Preliminary Review

1) Proposal submission emails shall be date/time stamped upon receipt.

2) Proposals will be reviewed to verify that submission is in a single PDF and separate Excel workbooks, when applicable, are properly identified, and received on or before the final filing date and time specified in Section C. Proposal Requirements and Information, 1. Key Action Dates.

3) Proposals shall remain sealed until after the Final Date for Proposal Submission.

4) Proposal will be reviewed to determine completeness of required documentation and compliance as identified in this RFP. SCO staff will use the Attachment 1, Required Attachments Checklist, submitted by the Proposer to confirm receipt of all required documents.

5) Proposal requirements will be evaluated on a “pass/fail” basis for all criteria and information.

6) SCO may reject any or all Proposals that fail to meet these requirements.

b. Minimum Qualification Evaluation

Upon satisfactory Preliminary Review, the Technical Proposal will be reviewed to determine the Proposer’s satisfaction of the Minimum Qualifications requirements. For Proposals that satisfy the Minimum Qualifications, the Technical Proposal will be evaluated by a team of SCO Staff (Evaluation Team).

c. Technical Proposal Evaluation and Scoring

1) The Evaluation Team will independently evaluate each Proposer’s Technical Proposal using the

Proposal evaluation criteria as stated in RFP Section 4, Evaluation Worksheet.

2) Each proposal shall be awarded up to the maximum points available in each category for a maximum of 300 points available with an emphasis on the experience, qualifications and the references of the Proposer, as well as the experience and qualifications of the key staff assigned to SCO.

3) The Technical Proposal should provide the details, clarity, completeness, relevance, and appropriateness of the experience as it relates to the needs of SCO as stated in this RFP.

4) Once individual scoring has been completed, team members will determine a single score for each Proposers Technical Proposal upon consensus of the Evaluation Team.

d. Interviews

1) Interviews will be conducted with the three highest scoring Proposals that pass all Pass/Fail evaluation and technical evaluation components.

2) All proposed staff will be required to appear and participate in a virtual team interview with SCO.

Proposers will be notified in advance and provided with the date, time, and requirements for the interview.

3) Each Proposer’s Interview Score will be calculated by multiplying the assigned rating value percentage for each interview questions by the maximum possible score for each interview question, then adding the resulting score of all interview questions together to obtain a Total Interview Score.

4) SCO reserves the right, at its sole discretion, to forgo the interview process. If SCO elects not to conduct interviews, all responsive and responsible proposals that advance to the technical evaluation stage shall receive the maximum points allocated for the interview component.

Table 1 - Interview Score Example:

A B C D Q# Assigned Rating Value Maximum Possible

Score Score (B X C = D)

1 100% 80 100% x 90 = 80 2 100% 80 100% x 90 = 80 3 100% 80 100% x 90 = 80 4 100% 80 100% x 90 = 80 5 100% 80 1100% x 90 = 80

Total Interview Score (Sum all Scores) 400

*Standard rounding rules apply.

Table 2 - Interview Rating Values and Criteria:

Rating Values

Rating Criteria

100% Excellent: All components are addressed with the highest degree of confidence.

75% Good: The response addressed almost all of the components with an above average degree of confidence.

50% Fair: The response addressed most of the components with an average degree of confidence.

25% Poor: The response minimally addressed the components with a below average degree of confidence.

0 No Value: The response failed to address the topic with no degree of confidence.

e. Cost Assessment and Scoring

1) The Evaluation Team will review the Cost Proposal Worksheets to verify mathematical accuracy and determine if there are any deviations in the proposal. If a deviation is material, it may be cause for rejection. Immaterial deviations will be processed as if no deviation had occurred.

2) Cost Proposal Worksheets shall be evaluated and scored based on the total proposal cost for the term of the Agreement.

3) The Proposer with the lowest cost Proposal will be awarded the maximum number of points available (300 points), which is 30 percent of the total points available.

4) The Proposer’s cost score will be based on a proportional number of points as it relates to the total costs associated with the lowest responsive proposal multiplied by the maximum number of cost points.

5) The following formula shall be used to determine cost points:

Lowest Proposer’s Cost ($600,000) X maximum cost points (300) divided by other Proposer’s Cost = cost points awarded to the other Proposer.

LOWEST COST PROPOSAL ($600,000) X 300 COST POINTS AVAILABLE

OTHER PROPOSAL COST

COST POINTS AWARDED TO OTHER PROPOSAL

Table 1. Sample Cost Assessment

Proposer Proposal Cost Calculation POINTS

AWARDED

A $675,000 $600,000 (Proposer B) X 300 (weight) / $675,000 (Proposer A) 267

B $600,000 $600,000 (Proposer B) X 300(weight) / $600,000 (Proposer B) 300 C $650,000 $600,000 (Proposer B) X 300 (weight) / $650,000 (Proposer C) 278

5. Selection

Award will be made to the highest scoring, responsive, responsible proposer.

6. Evaluation Worksheet

The Evaluation Worksheet details the evaluation and scoring criteria. The Evaluation Worksheet will be found on the following pages for your reference.

EVALUATION WORKSHEET

Name of Proposer: ______________________________________________

Evaluator: ________________________________ Date: ________________

1. Administrative Evaluation

Description Pass/Fail

Proposal received by the date and time specified in the RFP.

All applicable attachments identified on Attachment 1, Required Attachment Checklist were completed and submitted.

Proposer Guarantee included in proposal package as specified in RFP.

Firm’s Organizational and Operational Structure included in the proposal package as specified in the RFP.

Approach/Methodology included in proposal package as specified in RFP.

References included in the proposal package as specified in the

RFP.

2. Minimum Qualification Evaluation

Proposer Firm

The Proposer must be a professional public accounting firm that provides audit and other attest services with experience in establishing or enhancing external auditing functions. The Proposer shall provide a copy of its current active Certified Public Accountant (CPA) license issued by the California Board of Accountancy (CBA), or current active license registration, permit, or other authorization to practice public accountancy issued in another U.S. state or jurisdiction and, if required by California law, a current Out-of-State Firm Registration (OFR) issued by the

CBA.

The Proposer shall have at least 10 years of experience, performing attest services in establishing or enhancing auditing functions using GAGAS requirements for state government accounting or auditing.

Proposer Key Staff

Each key staff member must have at least 10 years of experience performing leadership roles and responsibilities in conducting audits that comply with GAGAS promulgated by the U.S. Government Accountability Office.

Each key staff member must have at least 10 years of experience in developing training plans and other training materials for agencies and personnel on accounting, auditing, and the GAGAS requirements.

Each key staff member must have at least 10 years of experience with managing an external audit function.

Each key staff member must have possession of a current active license or certification as a Certified Public Accountant (CPA).

The Proposer shall provide a copy(ies) of the current active CPA license(s) or certification(s) for each proposed key staff member.

Proposers must receive a “Pass” for the Minimum Qualifications to have the remaining Technical Proposal evaluated. If the Proposer did not receive a “Pass” for the Minimum Qualifications the Proposal is considered non-responsive and is therefore disqualified.

G. Technical Proposal Evaluation and Scoring

1. Proposer Guarantee

The Proposer shall provide a Letter of Guarantee explaining their ability to perform the services identified in Standard Agreement, Exhibit A, Scope of Work and includes:

a. A statement expressing the Proposer’s availability of staff and other required resources to successfully complete all deliverables and to perform all necessary tasks described in this RFP in a remote environment.

b. A statement expressing the Proposer’s strong commitment to establishing, maintaining, and supporting diversity in its ownership and professional staff members.

c. A statement expressing the Proposer’s willingness to comply with the terms and conditions of this agreement.

d. A signature from an individual who is authorized to bind the Proposer contractually to certify that the Proposer guarantees their ability to perform the services as identified in this RFP.

Information Proposer Provided Indicates Maximum Points Points Scored

Insufficient information provided 0 Sufficient information provided 3 Comprehensive information provided 5

Total Points 5

2. Firm’s Organizational and Operational Background

a. List the name and classification of the proposed key staff member(s) and identify who will be assigned to each of the tasks and deliverables identified in Standard Agreement, Exhibit A, Scope of Work.

Indicates Maximum Points Points Scored

Insufficient information provided 0 Sufficient information provided 3

Comprehensive information

Total Points 5

b. Describe the usual process for interface with the client and the communication plan for completing the tasks and deliverables under this agreement including:

• The firm’s chain of command

• Who is the individual with overall responsibility for the firm’s operations?

• What will be the role of each proposed key staff member:

• What will be the role of the support staff?

c. Describe experience in working with Executive (C-Suite) government entities relative to external audit organization assessments (private or governmental).

Indicates Maximum Points Points Scored

Insufficient information provided 0 Sufficient information provided 5 Comprehensive information

Total Points 10

Total Points for Firm’s Organizational and Operational

Background

Maximum Points Points Scored

a. 5

b. and c. 10

Total Points 15

3. Approach/Methodology

The Proposer shall provide a detailed approach including a summary of the work to be completed as understood, the goals and objectives to complete the requisite tasks, the resources necessary to achieve these outputs, the actions to be taken or strategy to be utilized to achieve these outcomes, and a timeline or schedule to complete the Agreement requirements as identified in this RFP. The Approach/Methodology will be scored based on the comprehensiveness and detail provided. The detailed plan and schedule of when and how the audit services will be provided shall include:

a. A list of standard services provided in a best-in-class external audits office of a large financial or governmental entity.

b. A list of similar types of agreements that were successfully concluded, with a sample of such work.

c. A description of the Proposer Firm’s outreach efforts relative to diversity, equity and inclusion as well as to disadvantaged communities.

d. A description of internal quality control policy and procedures, including independent review of work before or after releasing the final product to the client.

e. A description of safeguards in place to protect clients’ confidential and sensitive data.

f. Identification of subcontractors (if applicable). Include subcontractor’s qualifications, reporting responsibility of each firm (prime contractor and subcontractors) and/or the person assigned to each task and method of monitoring performance.

Approach/Methodology Categories Maximum Points Points Scored

No list of standard services provided in a best-in-class external audits office of a large financial or governmental entity.

Partial list of standard services provided in a best-in-class external audits office of a large financial or governmental entity.

Comprehensive list of standard services provided in a best-in-class external audits office of a large financial or governmental entity.

No list of similar types of agreements that were successfully concluded, with a sample of such work.

Partial list of similar types of agreements that were successfully concluded, with a sample of such work

Comprehensive list of similar types of agreements that were successfully concluded, with a sample of such work

No description of your firm’s outreach efforts relative to diversity, equity and inclusion as well as to disadvantaged communities.

Partial description of your firm’s outreach efforts relative to diversity, equity and inclusion as well as to disadvantaged communities.

Comprehensive list description of your firm’s outreach efforts relative to diversity, equity and inclusion as well as to disadvantaged communities.

No description of your firm’s internal quality control policy and procedures, including independent review of work before or after releasing the final product to your client.

Partial description of your firm’s internal quality control policy and procedures, including independent review of work before or after releasing the final product to your client.

Comprehensive description of your firm’s internal quality control policy and procedures, including independent review of work before or after releasing the final product to your client.

No description of your firm’s safeguards in place to protect clients’ confidential and sensitive data.

Partial description of your firm’s safeguards in place to protect client’s confidential and sensitive data.

Comprehensive description of your firm’s safeguards in place to protect clients’ confidential and sensitive data.

No identification of subcontractors (if applicable) that includes qualifications, reporting responsibility of each firm (prime contractor and subcontractors) and/or the person assigned to each task and method of monitoring performance.

Partial identification of subcontractors (if applicable) that includes qualifications, reporting responsibility of each firm (prime contractor and subcontractors) and/or the person assigned to each task and method of monitoring performance.

Comprehensive identification of subcontractors (if applicable) that includes qualifications, reporting responsibility of each firm (prime contractor and subcontractors) and/or the person assigned to each task and method of monitoring performance.

Total Points 200

4. Metrics

The Proposer shall provide a detailed summary of the basis and/or criteria for selecting best practice models.

Metrics Maximum Points Points Scored

No detailed summary of the basis and/or criteria for selecting best practice models.

Partial detailed summary of the basis and/or criteria for selecting best practice models.

Comprehensive detailed summary of the basis and/or criteria for selecting best practice models.

Total Points 10

5. Firm References

a. The Proposer shall provide three current references for similar type of services performed within the last 10 years on Attachment 18, Firm References. Attachment 18, Firm References must be completed in their entirety At least one reference must be from experience used to meet the Firm Minimum Qualifications.

b. References will be contacted to validate ratings. SCO will make up to three attempts via phone/email to validate references. Failure to reach a listed reference will result in the ratings being scored zero and the Proposal may be deemed non-compliant and disqualified in its entirety.

References will be scored based on the accumulative average score provided by the three references listed on Attachment 18, Firm References.

Description Maximum Points Points Scored

References do not substantiate expertise or experience and/or the Contractor received an accumulative average* rating of “1-4”.

References substantiate expertise and experience satisfactorily and/or the Contractor received an accumulative average* rating of “5-8”.

References substantiate expertise and experience excellently and/or the Contractor received an accumulative average* rating of “9-10”.

Total Points 25

*Average ratings resulting in a decimal will be rounded to the nearest whole number.

6. Key Staff Reference

a. The Proposer shall provide one current reference for each proposed key staff for similar types of services performed within the last 10 years on Attachment 19, Key Staff References. Attachment 19, Key Staff Reference must be completed in its entirety. The reference must be from experience used to meet Key Staff Minimum Qualifications.

b. References will be contacted to validate ratings. SCO will make up to three attempts via phone/email to validate each reference. Failure to reach the listed reference will result in the ratings being scored zero and the Proposal may be deemed non-compliant and disqualified in its entirety.

The Key Staff References will be scored based on the accumulative average score provided by the three references listed on Attachment 19, Key Staff References.

Key Staff Reference Form Scoring Example

Reference does not substantiate expertise or experience and/or the Key Staff received an accumulative average* rating of “1-4”.

References substantiate expertise and experience satisfactorily and/or the Key Staff received an accumulative average* rating of “5-8”.

References substantiate expertise and experience excellently and/or the Key Staff received an accumulative average* rating of “9-10”.

Total Points 45

*Average ratings resulting in a decimal will be rounded to the nearest whole number.

7. Interview

Proposer’s key staff who will exercise a significant role under the Agreement will be required to appear for an interview with SCO via Microsoft Teams.

Interview

8. Score Total

Total Points Maximum Points Points Scored

1. Proposer Guarantee 5

2. Firm’s Organizational and Operational Background 15

3. Approach/Methodology 200

4. Metrics 10

5. Firm References 25

6. Key Staff Reference 45

Proposer’s Technical Score 300 Proposer’s Interview Score 400

Proposer’s Cost Score 300 Incentives and Preferences, as applicable TBD

Proposer’s Total Score 1000

COMMENTS:

► End of Evaluation Worksheet ◄

H. Award and Protest

1. Notice of the Proposed award shall be posted for five working days prior to awarding the Agreement in a public place in the SCO, 300 Capitol Mall, 15th Floor; Sacramento, CA and on the Small Business and

Disabled Veteran Business Enterprises Advocate and Liaison page on the SCO website under Notice of Intent to Award Agreement at: https://www.sco.ca.gov/sco_sb_dvbe_advocate.html

2. If any proposer, prior to the award of the Agreement, files a protest with the SCO and the Department of General Services (DGS), Office of Legal Services (OLS), 707 Third Street, 7th Floor, Suite 7-330, West Sacramento, CA 95605, on the grounds that the (protesting) proposer would have been awarded the Agreement had the SCO correctly applied the evaluation standard in the RFP, or if the SCO followed the evaluation and scoring methods in the RFP, the Agreement shall not be awarded until either the protest has been withdrawn or the DGS has decided the matter. It is suggested that you submit any protest by certified or registered mail.

3. Within five days after filing the protest, the protesting proposer shall file with the DGS, OLS and the

SCO, a detailed statement specifying the grounds for the protest. The written protest must be sent to DGS OLS, 707 Third Street, 7th Floor, Suite 7-330, West Sacramento, CA 95605. A copy of the detailed written statement must be emailed to SCO, at SCOBids@sco.ca.gov, Attention: Contracts Office

I. Disposition of Proposals

1. Upon proposal opening, all documents submitted in response to this RFP will become the property of the State of California and will be regarded as public records under the California Public Records Act (GC Section 6250 et seq.) and subject to review by the public.

J. Agreement Execution and Performance

1. The Agreement will be executed only upon SCO acceptance of all documents required by this RFP.

The Agreement is attached and by virtue of submitting a proposal, the Proposer agrees to the terms and conditions stated herein.

2. Service shall start no sooner than the Agreement start date specified in Section C, Proposal Requirements and Information, 1. Key Action Dates, or on the express date set by SCO and the Contractor, after all approvals have been obtained and the Agreement is fully executed. Should the Contractor fail to commence work at the agreed upon time, SCO, upon five days written notice to the Contractor, reserves the right to terminate the Agreement. Commencement of work prior to final approval of the Agreement is at the risk of the Contractor. The Contractor may not receive any payment for work performed prior to final approval of the Agreement.

3. All performance under the Agreement shall be completed on or before the termination date of the

Agreement.

K. Incentive and Requirement Programs

A Small Business (SB)/Microbusiness (MB) and/or a Disabled Veteran Business Enterprise (DVBE) must have current and valid certification through DGS, Office of Small Business and Disabled Veteran Business Enterprise Certification Services (OSDS). Completed certification applications and required support documents must be submitted to OSDS no later than 5:00 p.m. PT on the Final Date for Proposal Submission and OSDS must be able to approve the application as submitted.

For certification and preference approval process information, contact OSDS by telephone at

(916) 375-4940 or access OSDS Internet website at https://www.dgs.ca.gov/PD/About/Page-Content/PD- Branch-Intro-Accordion-List/OSDS/OSDS

In compliance with GC Section 14837 and Military & Veterans Code (M&VC) Section 999, certified SB/MB and DVBE contractors must perform a commercially useful function (CUF). A Contractor, subcontractor, or supplier is not considered to perform a CUF if their role is limited to that of an extra participant through which funds are passed in order to obtain the appearance of participation.

https://www.sco.ca.gov/sco_sb_dvbe_advocate.html mailto:SCOBids@sco.ca.gov…