RFP_FINAL.pdf

MALIA M. COHEN

CALIFORNIA STATE CONTROLLER

July 31, 2026

REQUEST FOR PROPOSAL (RFP) (Primary) NUMBER EDIS90126 Electronic Payment Services

Notice to Prospective Proposers

You are invited to review and respond to this Request for Proposal (RFP) Number EDIS90126. 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://www.caleprocure.ca.gov and the information in the herein RFP, the information in the attached RFP shall take precedence.

Note that all IT agreements entered into with the State of California will include by reference Information Technology General Provisions Non-Cloud Goods & Services DGS PD 403-ITGP Non-Cloud (Rev. 02/2025) that may be viewed and downloaded at internet site https://www.dgs.ca.gov/- /media/Divisions/PD/Acquisitions/Solicitation-Document-Attachments/IT-General-Provisions-NonCloud-DGS- PD-403ITGP-Revised-02202025.pdf 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.

State Controller’s Office RFP Number EDIS90126

Table of Contents

A. Purpose and Description of Services

Background Agreement Term Agreement Amount

B. Proposer Minimum Qualifications C. Proposal Requirements and Information

1. Key Action Dates

2. Mandatory Intent to Bid

3. Mandatory Proposers' Conference

4. Written Questions & Answers

5. Security Assessment Questionnaire

6. Technical Proposal

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

1. Security Assessment

2. Proposer Desirable Qualifications

3. Narrative Response

4. Firm’s Organizational and Operational Background

5. PowerPoint for Pre-Paid Card Services and Customer Portal Functions

6. Work Plan / Methodology

7. Total Score

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

1. Small Business Preference Program

3. Disabled Veteran Business Enterprise (DVBE) Program Participation

4. DVBE Incentive

5. Ties between Certified SB/MB and DVBE Businesses

6. Target Area Contract Preference Act

K. 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, Bidder Declaration (Written) (GSPD-05-105) Attachment 6, California Civil Rights Laws Certification (DGS OLS 04) Attachment 7, Iran Contracting Act Verification Form (DGS PD 3) Attachment 8, California Disabled Veteran Business Enterprise (DVBE) Declarations (STD 813)* Attachment 9, Secretary of State Certification Status* Attachment 10, Target Area Contract Preference Act (TACPA) (STD 830)* Attachment 11, Bidder’s Summary of Contract Activities and Labor Hours (DGS PD 526) * Attachment 12, Generative Artificial Intelligence (GenAI) Disclosure Attachment 13, Mandatory Intent to Bid Attachment 14, Acknowledgement of Agreement Exhibits and Policies Attachment 15, Proposal Requirements and Incentives

- Attachment 16, Contractor/Consultant Organization Information Security Agreement (ISO-004c) Attachment 17, Contractor/Consultant Confidentiality and Non-Disclosure Acknowledgement (ISO-004b)..39 Attachment 18, Firm Minimum and Desirable Qualifications Attachment 19, Narrative Response Attachment 20, Cost Worksheet

Standard Agreement Exhibit A – Scope of Work Exhibit A, Attachment 1- Annual Payment Volumes Exhibit A, Attachment 2 – Deliverable Expectations Document Exhibit A, Attachment 3 – Deliverable Acceptance Document Exhibit A, Attachment 4, Work Authorization Form Exhibit A, Attachment 5- Small Business Subcontractor Report Exhibit B – Budget Detail and Payment Provisions Exhibit B, Attachment 1 - Cost Worksheet Exhibit C – Information Technology General Provisions Non-Cloud Goods & Services DGS PD 403-ITGP Non- Cloud (Rev. 02/2025)** Exhibit D – Special Terms and Conditions Exhibit E – Information Technology, Data, and Security Provisions

These documents are not required with the Proposal package but are required upon award of the Agreement.

*Submit only if applicable.

**Incorporated by reference only.

A. Purpose and Description of Services

The State Controller’s Office (SCO) Disbursements Bureau is seeking a Contractor to provide Electronic Payment Services.

Background

SCO is constitutionally responsible for the prompt and accurate payment of the State’s bills and for payments to state employees and retirees. To meet this obligation, SCO prepares and issues all payments from the State Treasury on behalf of issuing agencies. SCO presently offers most state agency payment programs the ability to make payments electronically, commonly known as direct deposit or Electronic Funds Transfer (EFT).

SCO cannot move funds outside of the State Treasury without a warrant (under Article XVI, Section 7 of the California Constitution), therefore SCO must contract with a depository financial institution bank (“Contractor”). A depository financial institution is an ‘eligible bank’ or Originating Depository Financial Institution (ODFI) as defined by California Government Code (GC) Section 16500, a service that is not available within civil service (under GC 19130).

As used in this chapter, "eligible bank" means a state or national bank located in California, selected by the Treasurer for the safekeeping of money belonging to or in the custody of the state, that has received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of the bank's record of meeting the credit needs of the state's communities, including low- and moderate-income neighborhoods, pursuant to Section 2906 of Title 12 of the United States Code.

For applicable payments, SCO creates Automated Clearing House (ACH) transactions and transmits files to the Contractor, which the Contractor will send through the ACH network, operated pursuant to the National Automated Clearing House Association (NACHA) Operating Rules and Guidelines. The Contractor will have established business processes with the State Treasurer’s Office (STO) for funding and shall act as the SCO’s ODFI to distribute state payments by planning, implementing, and offering the following services, in this priority order:

1. Direct Deposit/EFT Payments – traditional bank to bank ACH payments.

2. Global (International) Digital Payments – the electronic transfer of funds to payees outside of the United

States.

3. Customer Portal – a secure, network-based portal for SCO and agencies to view payment reports, and for customers to select their preferred digital payment method, view payment status, and access statements.

4. Physical Pay Cards – physical prepaid debit card issued to recipients as an alternative to paper checks or traditional bank direct deposits.

5. Digital Disbursement Platforms – the electronic transfer of funds directly to a specialized application, such as PayPal, Venmo, or CashApp.

6. Digital Check – electronic versions of traditional paper checks processed electronically via the ACH network.

7. Push-to-Card Payments – digital disbursement method that allows agencies to send funds directly to a recipient’s debit or credit card in real-time using card networks.

All services will include the planning and implementation methods, and approaches used for modern payment services to meet the diverse needs of California state departments, agencies, and the broader California constituents.

A Zero Balance Account (ZBA) is required for each state agency participating in the SCO EFT program.

For purposes of this agreement, ZBAs are used as a pass-through account in which the returned/rejected/reversed monies from deposits will be moved by STO, to the originating state agency.

ZBAs are NOT used to fund files. Funding will be released to the STO by 1:00 p.m. Pacific Time (PT) the day before settlement.

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

Agreement Term

The term of this Agreement shall be for six years, with the options to execute up to two, two-year optional extensions and add funds to the Agreement at the originally agreed upon rates specified in Attachment 20, Cost Worksheet as deemed necessary by SCO and adjust projected payment volumes. 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 SCO with a 30-day written notice to the Contractor.

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

Agreement Amount

This Agreement will not exceed eight million dollars ($8,000,000.00) during the initial term of the Agreement. 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.

B. Proposer Minimum Qualifications

Proposers must meet all 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 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.

The Proposing Firm (Proposer) is expected to have a proven record of success providing Electronic Payment Services and be responsible for all aspects of the service, including any subcontractors.

The Proposer must complete Attachment 18, Firm Qualifications Workbook, Firm Minimum Qualifications (FMQ) tab, and provide documentation, if applicable, to confirm that the Proposer experience meets all the qualifications indicated below.

1. Experience and Compliance

a. The Proposer has been in business at least five years, performing the type of services as those outlined in this RFP for private, state, or California governmental agencies.

b. The Proposer has provided large volume, defined as more than five million annually, pre-paid card services for a governmental agency, municipality, or entity within the last five years.

For the below Minimum Compliance Qualifications, the Proposer shall check the box on Attachment 18, Firm Qualifications certifying that they are currently in compliance with the following:

c. All rules and regulations set by National Automated Clearing House Association (NACHA) and the Federal Reserve.

d. California Information Practices Act Civil Code Sections 1798 et seq.; the moderate security impact level privacy and security control guidelines specified in the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-53 (Rev. 5); and privacy provisions of the Federal Privacy Act of 1974.

e. Any other Federal and/or State of California laws governing these services.

2. Financial

The Proposer must:

a. Be an OFDI with a minimum of five years’ experience performing ODFI processes in all services listed in Exhibit A, Scope of Work.

b. Have at least five years of experience, originating at least five million direct deposit transactions monthly.

c. Provide proof via system generated logs that they maintained a 98 percent turnaround rate in providing their customers with returned items within 24 hours of receiving transactions from the ACH from January 2025 through December 2025.

For the below Minimum Compliance Qualifications, the Proposer shall check the box on Attachment 18, Firm Qualifications certifying that they are currently in compliance with the following:

d. Have an established bank account with the California State Treasurer as a Demand Bank or is eligible to become a Demand Bank by the execution date of this agreement.

e. Maintain a 99 percent accuracy level in disbursing payment transactions through the ACH in time for the intended “effective entry date” from January 2025 through December 2025.

f. Maintain a rolling three-day minimum dollar threshold of $15 billion, with a possible 20 percent increase during peak payment times that may occur up to four times per year.

g. Accept direct deposit payment transactions currently in process without a prenote.

h. Ensure that the direct deposit process is enacted on a timely schedule based on industry standards.

3. Data Transmission

The Proposer:

a. Must be capable of receiving files from SCO via File Transfer Protocol Secure (FTPS) with

Transport Layer Security (TLS) 1.2 encryption.

b. Must have a backup process using the internet with Secure File Transfer Protocol (SFTP) in the event the primary data transmission process (i.e. connection) fails or is unavailable.

C. Proposal Requirements and Information

1. Key Action Dates

ACTION DATE

RFP Available to Prospective Proposers July 31, 2026

Attachment 13, Mandatory Intent to Bid and Attachment 17, Confidentiality and Non- Disclosure Acknowledgement (ISO -

004b) Submittal Deadline

August 7, 2026 by 2:00 p.m. PT*

Security Assessment Questionnaire Available to Prospective Proposers

August 10, 2026

Mandatory Proposer’s Conference August 18, 2026

Written Questions Submittal Deadline August 24, 2026 by 2:00 p.m. PT*

Written Questions & Answers Released August 28, 2026

Security Assessment Questionnaire Submittal Deadline

September 3, 2026 by 2:00 p.m. PT*

Final Date for Proposal Submission September 9, 2026 by 2:00 p.m. PT*

Evaluation of Proposals** September 16, 2026 – September 23, 2026

Interview and PowerPoint Presentations September 28, 2026- October 2, 2026

Notice of Intent to Award October 6, 2026

Proposed Award Date October 14, 2026

Agreement Begins November 1, 2026

*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. Mandatory Intent to Bid

a. Proposers must complete, sign, and submit Attachment 13, Mandatory Intent to Bid and Attachment

17, Confidentiality and Non-Disclosure Acknowledgement (ISO-004b) to SCObids@sco.ca.gov prior to the submittal deadline listed in Section C. Proposal Requirement and Information, Item 1. Key Action Dates.

b. Proposers must list their authorized representative or corporate officer identified on Attachment 13, Mandatory Intent to Bid who will act as the primary point of contact (POC) and any Secondary users to be invited to the Proposers’ Conference.

c. Proposers must identify, on Attachment 13, Mandatory Intent to Bid, line one, an authorized representative or corporate officer who will serve as the primary point of contact (POC) for the Security Assessment Questionnaire (SAQ) and attend the Mandatory Proposers’ Conference.

d. Proposers may identify, on Attachment 13, Mandatory Intent to Bid, lines two through five, additional secondary users to assist responding to SAQ questions and/or attend the Mandatory Proposers’ Conference.

3. Mandatory Proposers' Conference

a. Firms intending to submit a proposal are required to attend a one-hour Mandatory Proposers’

Conference to be held on the date specified in Section C. Proposal Requirement and Information, Item 1. Key Action Dates. SCO will send the invitation the next business day after Attachment 13, Mandatory Intent to Bid is received. During the conference, proposers will have the opportunity to virtually meet with SCO personnel who will explain the contents of this RFP and the solicitation process.

b. Oral questions will not be accepted or answered during the conference. All questions must be submitted to SCObids@sco.ca.gov after the Mandatory Proposers’ Conference and prior to the Written Questions Submittal Deadline listed in Section C. Proposal Requirements and Information, Item 1. Key Action Dates.

c. If translation services are needed, an email request describing what services are being requested need to be sent to SCObids@sco.ca.gov when submitting Attachment 13, Mandatory Intent to Bid.

4. Written Questions & Answers

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

SCObids@sco.ca.gov. Questions must be submitted after the Mandatory Proposers’ Conference and prior to the Written Questions Submittal Deadline date listed in Section C, Proposal Requirements and Information, 1. Key Action Dates.

b. Any questions or proposed changes to the RFP or Standard Agreement must be submitted prior to the Written Questions Submittal Deadline date listed 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 counter offer and will not be considered. The State’s General Provisions are not negotiable.

c. The subject line of the email should read, RFP EDIS90126 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 listed in Section C, Proposal Requirements and Information, 1. Key Action Dates.

5. Security Assessment Questionnaire

The security requirements for this business process are based on the Moderate Security Controls baseline defined by the National Institute of Standards and Technology (NIST), Special Publication (SP) 800-53 (Rev. 5) Control Catalog. To help SCO evaluate the Proposer’s security posture and cybersecurity risk, proposers are required to complete a Security Assessment Questionnaire (SAQ).

Although Federal Risk and Authorization Management Program (FedRAMP) and StateRAMP Moderate are based on a subset of the NIST SP 800- 53 (Rev. 4) controls, the SAQ will be used to assess alignment with the newer NIST SP 800-53 (Rev. 5) Moderate control baseline. The SAQ is a self-reporting tool to help identify whether adequate security controls are in place, reducing the risk of security incidents, data breaches, and compliance violations.

a. To obtain access to the SAQ, proposers must sign and submit Attachment 13, Mandatory Intent to Bid and Attachment 17, Confidentiality and Non-Disclosure Acknowledgement (ISO-004b) to SCObids@sco.ca.gov prior to the date listed in Section C. Proposal Requirements and Information, Item 1. Key Action Dates and attend the Mandatory Pre- Bid Conference.

b. The Proposer’s primary POC is responsible for completing and submitting the SAQ prior to the submittal deadline listed in Section C. Proposal Requirement and Information, Item 1. Key Action Dates.

1) Email Requirements

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

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

c) Do not imbed links within the PDF—all documents must be contained within the PDF and/or Excel workbook. SCO cannot access links to external sources. Proposals containing links to external sources will be rejected.

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

e) Proposal submissions that are sent from unrecognized email servers may be blocked by SCO security filters and be flagged as spam, thereby rendering them not submitted.

f) 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.

g) LATE SUBMISSIONS RECEIVED AFTER THE SUBMITTAL DEADLINE DATE AND TIME

IN THE KEY ACTION DATES WILL NOT BE ACCEPTED—NO EXCEPTIONS.

c. The SAQ and supporting security documentation submitted in response to the security requirements will be treated as confidential and are intended to be exempt from public disclosure to the extent permitted by applicable law. Proposers must clearly label these materials as "CONFIDENTIAL" when submitting them.

d. The SAQ will be comprised of three steps:

1) Initiation:

a) SCO will email the SAQ Excel workbook to the Proposer’s single primary point of contact by the date listed in Section C. Proposal Requirements and Information, Item 1. Key Action Dates.

b) The SAQ Excel workbook will include an instructions tab.

2) Response:

Proposers shall provide a detailed explanation of the proposing firm’s control status.

a) The SAQ allows “Yes,” “No,” or “Not Applicable (N/A)” responses only.

i. Yes – The control is implemented and operating within your organization. You should be prepared to provide supporting documentation or evidence if requested.

ii. No – The control is not implemented, is only partially implemented, or cannot be demonstrated. A "No" response may increase the assessed security risk and could require additional explanation, remediation plans, or compensating controls.

iii. Not Applicable (N/A) – The control does not apply to the services, systems, data, or business process being assessed. You should be able to justify why the control is not applicable.

b) For a NIST SP 800-53 Moderate assessment, evaluators generally expect:

i. Yes only when the control is fully in place.

ii. N/A only when there is a clear, defensible reason the control does not apply.

iii. No when the control applies but is not fully implemented.

c) When completing the questionnaire, avoid selecting N/A simply because the control is difficult to implement or has not yet been implemented. If the control applies to your environment, the appropriate response is usually No until the control is fully implemented.

d) Proposer’s shall attach supporting evidence documentation to demonstrate that the control is in place. Evidence documentation may include but not be limited to screenshots, policies, procedures, reports, configurations, audit results, or other evidence supporting the control.

i. If a common document will be utilized to provide evidence for multiple questions, it is not necessary to upload the document multiple times. Attach the document to the first related question and reference the document name in the comment section for the subsequent questions.

ii. Proposer’s must provide adequate evidence. SCO will not assume that a security control is implemented based solely on the Proposer’s assertion. If adequate evidence is not provided, the control will be assessed as not demonstrated.

iii. If the Proposer claims the control exists, but the evidence is incomplete or unclear, SCO may, at its sole discretion, request clarification or additional documentation during the evaluation.

3) Validation of Proposer Responses:

Proposers may be required to participate in up to four validation sessions, each lasting up to eight hours, with representatives from the SCO Information Security Office (ISO). These sessions are intended to review and verify the accuracy and completeness of the information provided in the SAQ and any supporting documentation.

6. 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. A Technical Proposal must include all the following items:

a. Security Assessment Questionnaire

b. 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.

c. Firm Desirable Qualifications (100 points)

The Proposer must complete Attachment 18, Firm Minimum and Desirable Qualifications, FDQs tab to qualify for additional points.

1) Proposer has more than five years’ experience, within the last 20 years, providing ACH Services with the State of California.

2) Proposer has provided pay card services for state agencies in the State of California.

d. Narrative Response

Proposers shall provide narrative responses only for the items identified in Attachment 19, Narrative Response. Responses must be single spaced, use Arial 12-point font, and not exceed 100 pages. Any content beyond the 100-page limit, will not be reviewed, evaluated, or scored.

Proposers shall not input narrative responses within the RFP document, nor should narrative responses be included for items not identified in Attachment 19, Narrative Response.

e. Firm’s Organizational and Operational Background

1) Organizational Structure

Provide an Organization Chart and List the classification of staff members that 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 the overall responsibility for the firm’s operations?

ii. Identify subcontractors (if applicable). Include qualifications, reporting responsibility of each firm and/or person assigned to each task and method of monitoring performance.

iii. List the number of years the firm has provided the services listed in the RFP.

f. Work Plan / Methodology

Proposers shall provide a detailed work plan 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 Work Plan/Methodology must be single spaced, Arial font 12, and be no more than 70 pages. If a response is longer than 70 pages, only the first 70 pages will be reviewed, evaluated, and scored.

The Work Plan/ Methodology will be scored based on the comprehensiveness and detail provided.

The detailed plan and schedule of when and how digital payments services will be provided shall be listed in priority order and include:

1) Direct Deposit/EFT Payments

2) Global (International) Digital Payments

3) Customer Portal

4) Physical Pay Cards that use Europay, MasterCard, and Visa (EMV) chip

5) Digital Disbursement Platforms

6) Digital Check

7) Push-to-Card Payments

Proposers not achieving a minimum of 680 points on items c. through f. above will not be considered for further evaluation.

g. PowerPoint Presentation and Interview

Proposers achieving a minimum of 680 will be invited to a 120-minute in-person interview at 300 Capitol Mall, 6th Floor, Suite 635 with the SCO evaluation team. Proposers may bring no more than four total attendees with at least two being key personnel for this Agreement. The purpose of the in-person Interview and Presentation is to provide proposers with the opportunity to address interview questions in detail, provide a detailed presentation, and share examples of their solution relating to the services described in this RFP on the following:

1. Payee Portal Experience

Present the payee’s customer experience accessing the portal including the following:

a) Account creation and account management life cycle

b) Receipt of funds

c) Customer service if funds are not received

d) Visual walkthrough of accessing and using customer portal for functionality for the services listed in this RFP.

e) Accessing or updating customer profile

f) Adding new and updating payment method

g) Troubleshooting customer issues

h) Various customer service communication options and response times

i) How the payment recipients view payments, status information and access statements.

2. Global Digital Payments

a) Explain in detail and present the proposed solutions for Global Digital Payments Services.

b) Account Verification, Validation, and Fraud Prevention

c) Currency conversion for payments and returned payment issues.

d) What currency and countries are supported

e) Challenges, issues, and solutions for Global Digital Payment Services

3. Onboarding Experience

a) Examples from other states, public, or private entities utilizing similar services including monthly volume.

b) Including the implementation phases and activation timeline for services listed in this RFP.

c) Results achieved by the contracting entity, including key wins, challenges, resolutions, and efficiencies.

4. Fraud Prevention

a) The Proposer’s fraud prevention and account verification capabilities.

b) Monitor and address suspicious activity

c) Success rate of capturing fraudulent activity and recouping fraudulent payments

5. Pre-paid card features

a) Card Registration Process.

b) Funding of pre-paid Card.

c) Reporting Issues.

d) Inventory Management.

e) Customer Services and Support options.

f) Disclosures and Fee Schedule.

D. Submission of Proposal

1. Proposals must be submitted as set forth below.

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

b. Subject line must include the RFP EDIS90126 – Digital Payment Services.

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, executable files, password protections, or macros, which may make their emails undeliverable.

3) Do not imbed links within the PDF—all documents must be contained within the PDF and/or Excel workbook. 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 not submitted.

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 RECEIVED AFTER THE SUBMITTAL DEADLINE DATE

AND TIME IN THE KEY ACTION DATES WILL NOT BE ACCEPTED—NO EXCEPTIONS.

c. Proposals not marked as indicated may be rejected.

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

e. 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.

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

g. 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.

h. 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.

i. 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.

j. 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.

k. 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.

l. 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.

m. 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.

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

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

p. Any questions or proposed changes to the RFP or Standard Agreement must be received prior to the Written Questions Submittal Deadline 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 counter offer and will not be considered.

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 Information Technology General Provisions Non-Cloud Goods & Services DGS PD 403-ITGP Non-Cloud (Rev.

02/20/2025) are not negotiable.

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

E. Evaluation Process

1. If the State determines that offers from all Respondents contain material deviations, the State may declare the offers to be draft offers. If offers are declared drafts, the State will issue an addendum to the solicitation document and confidential discussions may be held with the Respondents who wish to continue in the response process. Notifying the Respondent of defects is intended to minimize the risk that the final offers will be deemed non-compliant; however, the State will not provide any warranty that all defects in the draft offers have been detected. Notification of defects in the draft offer will not preclude rejection of the final offer, if undiscovered defects contained in the declared draft offer are later found in the final offer. Oral statements made by either party during confidential discussions shall not be binding.

2. The evaluation process complies with the requirements for competitive bidding in California Public Contract Code (PCC) 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. During the evaluation and selection process, SCO may wish to interview a proposer for clarification only. SCO also 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.

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

4. 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.

5. 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) Proposals shall be date/time stamped upon receipt.

2) Proposals will be reviewed to verify that submission is in PDF, PowerPoint, and Excel workbook, properly identified, and received prior to the final submittal 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) Proposals 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 Section F, Evaluation Worksheet.

2) Each proposal shall be awarded up to the maximum points available in each category for a maximum of 920 points available with an emphasis on the experience and qualifications of the Proposer. The Technical Proposal should provide the detail, clarity, completeness, relevance, and appropriateness of the experience as it relates to the needs of SCO as stated in this RFP.

3) The Technical Proposal should provide the detail, 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.

5) For Proposals that score a minimum of 680 points, the Proposer will be invited to the In-person

Interview and PowerPoint Presentation.

d. Interview and Presentation

1) If there is only one proposal that is considered responsive and responsible and has advanced to the Interview Stage phase, SCO reserves the right, at its sole discretion, to forgo the interview and presentation process. If SCO elects not to conduct interviews and presentations, all responsive and responsible proposals that advance to the Interview and presentation stage will receive the maximum points allocated for the interview component.

2) Interviews and presentations will be conducted with the Proposers that pass all Pass/Fail evaluation and meet the minimum technical evaluation score.

3) All proposed staff will be required to appear and participate in an In-Person team interview and presentation with SCO. Proposers will be notified in advance and provided the date, time, and requirements for the interview and presentation.

4) 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.

Table 1 – PowerPoint Presentation Score Example:

A B C D

Services Assigned Rating Value Maximum Possible Score

Score (B X C = D)*

1 75% 60 75% x 60 = 45

2 100% 60 100% x 60 = 60

3 100% 60 100% x 60 = 60

4 50% 60 50% x 60 = 30

5 100% 60 100% x 60 = 60

Total Presentation Score (Sum of Points Scored) 255

Table 2 - Interview Score Example:

A B C D

Q# Assigned Rating Value Maximum Possible Score

Score (B X C = D)*

1 50% 50 50% x 50 = 25

2 0% 50 0% x 50 = 0

3 75% 50 75% x 50 = 37.5

4 100% 50 100% x 50 = 40

5 100% 50 100% x 50 = 50

Total Interview Score (Sum of Points Scores) 152.50

*Standard rounding rules apply.

Table 2 - Interview and PowerPoint Presentation 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.

5. Cost Opening

Only Proposers that obtain a total points score of 1130 will have their Cost Worksheet Opened.

6. Selection

Award will be made to the responsive, responsible proposal with the lowest cost.

7. 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: ________________

A. Administrative Evaluation

Description Pass/Fail

Mandatory Intent to Bid

Security Assessment completed

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.

Narrative Response included in proposal package as specified in RFP.

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

Firm’s Work Plan / Methodology included in the proposal package as specified in the

RFP.

B. Proposer Minimum Qualifications Evaluation

Proposer Experience and Compliance

The Proposer has been in business for at least the last five years performing the type of services as those outlined in this RFP for other private, state, or governmental agencies.

The Proposer has provided large volume, defined as more than five million annually, pre-paid card services for a governmental agency, municipality, or entity within the last five years.

The Proposer is compliant with all rules and regulations set by National Automated Clearing House Association (NACHA) and the Federal Reserve

The Proposer is compliant with California Information Practices Act Civil Code Sections 1798 et seq.; the moderate security impact level privacy and security control guidelines specified in the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-53 (Rev. 5); and privacy provisions of the Federal Privacy Act of 1974.

The Proposer is compliant with any other Federal and/or State of California laws governing these services.

Financial

The Proposer is an OFDI with a minimum of five years’ experience performing ODFI processes in all services listed in Exhibit A, Scope of Work.

The Proposer has at least five years of experience originating at least five million direct deposit transactions monthly.

Provide proof via system generated logs that they maintained a 98 percent turnaround rate in providing their customers with returned items within 24 hours of receiving transactions from the ACH from January 2025 through December 2025.

The Proposer has an established bank account with the California State Treasurer as a Demand Bank or is eligible to become a Demand Bank by the execution date of this agreement.

Maintaining a 99 percent accuracy level in disbursing payment transactions through the ACH in time for the intended “effective entry date” from January 2025 through December 2025.

Maintains a rolling three-day minimum dollar threshold of $15 billion, with a possible 20 percent increase during peak payment times that may occur up to four times per year.

Accept direct deposit payment transactions currently in process without a prenote

Ensure that the direct deposit process is enacted on a timely schedule based on industry standards.

Data Transmission

The Proposer must be capable of receiving files from SCO via File Transfer Protocol Secure (FTPS) with Transport Layer Security (TLS) 1.2 encryption.

The Proposer must have a backup process using the internet with Secure File Protocol (SFTP) in the event the primary data transmission process (i.e. connection) fails or is unavailable.

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.

F. Technical Proposal Evaluation and Scoring

1. Security Assessment

Scoring will be based on the determination of the Security Assessment Determination

Information Proposer Provided Indicates Maximum

Points Points Scored

Red Flagged Security Issues - Disqualified Disqualified

Yellow Flagged Security Issues 100

Green Flagged Security Issues 200

Total Points 200

2. Firm Desirable Qualifications

Firm Desirable Qualifications (FDQs) is optional and if submitted, will be assessed and scored up to a maximum score of 100 points (FDQs will be assessed and scored only for proposals that pass the Pass/Fail components). Each FDQ met will be awarded a maximum of 50 points for qualifying experience. Awarded scores will be summed to become the FDQ Score. FDQs are not required to be met to continue in the assessment process.

Firm Desirable Qualifications Scoring Example:

Description

Points Points Scored

The Proposer has more than five years’ experience, within the last 20 years, providing ACH Services with the State of California.

The Proposer has provided pay card services for agencies within the State of California

Total Points 100

3. Narrative Response

Questions

Points

Per Question

22 Questions Points Scored

Insufficient Information Provided 0

Sufficient Information but no examples or Detailed Information Provided

Detailed Comprehensive Information Provided

Total Points 25 550

4. Firm’s Organizational and Operational Background

Information Proposer Provided Indicates Maximum Points

Points Scored

Insufficient Information Provided 0 Sufficient Information Provided 10 Detailed Comprehensive Information Provided 20

Total Points 20

5. Work Plan / Methodology

Information Proposer Provided Indicates Maximum Points

Points Scored

Insufficient Information Provided 0 Sufficient Information Provided 25

Detailed Information for all 7 items Provided 50

Total Points 50

6. Total Score

Description

Possible Points

Points Scored

1. Security Assessment 200

2. Firm Desirable Qualifications 100

3. Narrative Response 550

4. Firm’s Organizational and Operational Background 20

5. Work Plan / Methodology 50

Technical Proposal Score (Minimum Points to proceed to the Interview and

Presentation Phase 680)

Interview and Presentation Score 550

Total Technical Proposal Score (Minimum Points needed for Cost Opening 1130)

Incentives and Preferences, as applicable TBD

Lowest Evaluated Cost TBD N/A

COMMENTS:

► End of Evaluation Worksheet ◄

G. Protest

1. Any bidder’s issues regarding solicitation requirements must be resolved (or attempts to resolve them must have been made) before a protest may be submitted according to the procedure below. These issues will first be resolved by the contact for the solicitation or if they result in a protest, the protest will be submitted to DGS Procurement Division Deputy Director to hear and resolve issues and whose decision will be final.

2. If a bidder has submitted a bid which it believes to be responsive to the requirements of the RFP and to be the bid that should have been selected according to the evaluation procedures in the solicitation and the bidder believes the State has incorrectly selected another bidder for award, the bidder may submit a protest of the selection as described below. Protests regarding selection of the “successful bidder” will be heard and resolved by the Victim Compensation and Government Claims Board whose decision will be final.

3. All protests of award must be made in writing, signed by an individual authorized to bind the bidder contractually and financially, and contain a statement of the reason(s) for protest; citing the law, rule, regulation or procedure on which the protest is based. The protester must provide facts and evidence to support the claim. Protests must be mailed or delivered to:

Street and Mailing Address:

Deputy Director Procurement Division 707 Third Street, Second Floor South West Sacramento, CA 95605 Facsimile No.: (916) 375-4611

4. All protests to the RFP or protests concerning the evaluation, recommendation, or other aspects of the…