RFP_FIS for VDC.pdf

MARYLAND DEPARTMENT OF AGING (MDOA)

REQUEST FOR PROPOSALS (RFP)

FISCAL INTERMEDIARY SERVICES FOR THE VETERAN

DIRECTED CARE PROGRAM

RFP NUMBER BPM025056

ISSUE DATE: SEPTEMBER 23, 2021

NOTICE

A Prospective Offeror that has received this document from a source other than eMarylandMarketplace

(eMMA) https://procurement.maryland.gov should register on eMMA. See Section 4.2.

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO

RESPOND TO THIS SOLICITATION.

Fiscal Intermediary Services for the Veteran Directed Care Program Solicitation #: BPM025056

RFP Document

RFP for Maryland Department of Aging ii S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

VENDOR FEEDBACK FORM

To help us improve the quality of State solicitations, and to make our procurement process more responsive and business friendly, please provide comments and suggestions regarding this solicitation.

Please return your comments with your response. If you have chosen not to respond to this solicitation, please email or fax this completed form to the attention of the Procurement Officer (see Key Information Summary Sheet below for contact information).

Title: Fiscal Intermediary Services for the Veteran Directed Care Program Solicitation No: BPM025056

1. If you have chosen not to respond to this solicitation, please indicate the reason(s) below:

� Other commitments preclude our participation at this time

� The subject of the solicitation is not something we ordinarily provide

� We are inexperienced in the work/commodities required

� Specifications are unclear, too restrictive, etc. (Explain in REMARKS section)

� The scope of work is beyond our present capacity

� Doing business with the State is simply too complicated. (Explain in REMARKS section)

� We cannot be competitive. (Explain in REMARKS section)

� Time allotted for completion of the Proposal is insufficient

� Start-up time is insufficient

� Bonding/Insurance requirements are restrictive (Explain in REMARKS section)

� Proposal requirements (other than specifications) are unreasonable or too risky (Explain in REMARKS section)

� MBE or VSBE requirements (Explain in REMARKS section)

� Prior State of Maryland contract experience was unprofitable or otherwise unsatisfactory.

(Explain in REMARKS section)

� Payment schedule too slow

� Other: __________________________________________________________________

2. If you have submitted a response to this solicitation, but wish to offer suggestions or express concerns, please use the REMARKS section below. (Attach additional pages as needed.)

REMARKS:

Vendor Name: ________________________________ Date: _______________________

Contact Person: _________________________________ Phone (____) _____ - _________________

Address: ______________________________________________________________________

E-mail Address: ________________________________________________________________

RFP for Maryland Department of Aging iii S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

STATE OF MARYLAND

MARYLAND DEPARTMENT OF AGING (MDOA)

KEY INFORMATION SUMMARY SHEET

Request for Proposals Services - Fiscal Intermediary Services for Veteran Directed Care

Program

Solicitation Number: BPM025056

RFP Issue Date: September 23, 2021

RFP Issuing Office: Maryland Department of Aging (“MDoA” or the “Department”)

Procurement Officer: Linda Weaver 301 West Preston Street, Suite 1007 Baltimore, Maryland 21201 e-mail:

Office Phone:

linda.weaver2@maryland.gov (410)767-1112

Proposals are to be submitted: Submit via eMMA. See Section 5.2.5 for how to submit via eMMA

Pre-Proposal Conference: October 15, 2021, 1:00 p.m. Local Time Web conference see Section 4.1.5 to register

Questions Due Date and Time November 15, 2021 4:00 p.m. Local Time

Proposal Due (Closing) Date and Time:

November 29, 2021, 4:00 p.m. Local Time Offerors are reminded that a completed Feedback Form is requested if a no-bid decision is made (see page iv).

MBE Subcontracting Goal: One (1)% with no subgoals.

VSBE Subcontracting Goal: None

Contract Type: The Contract resulting from this solicitation shall be an indefinite quantity contract with firm fixed unit prices as defined in COMAR 21.06.03.02(A)(1) and 21.06.03.06(A)(2)

Contract Duration: Two (2) year base period with One (1) one-year option period.

SBR Designation: No

Federal Funding: Yes

RFP for Maryland Department of Aging iv S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

TABLE OF CONTENTS – RFP

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.2 Background, Purpose and Goals

2.3 Responsibilities and Tasks

2.4 Deliverables

2.5 Service Level Agreement (SLA)

3 Contractor Requirements: General

3.1 Contract Initiation Requirements

3.2 End of Contract Transition

3.3 Invoicing

3.4 Liquidated Damages

3.5 Disaster Recovery and Data

3.6 Insurance Requirements

3.7 Security Requirements

3.8 Problem Escalation Procedure

3.9 Independent Assessment of Security Controls

3.10 Experience and Personnel

3.11 Substitution of Personnel

3.12 Minority Business Enterprise (MBE) Reports

3.13 Veteran Small Business Enterprise (VSBE) Reports

3.14 Work Orders

3.15 Additional Clauses

4 Procurement Instructions

4.1 Pre-Proposal Conference

4.2 eMaryland Marketplace Advantage (eMMA)

4.3 Questions

4.4 Procurement Method

4.5 Proposal Due (Closing) Date and Time

4.6 Multiple or Alternate Proposals

RFP for Maryland Department of Aging v S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

4.7 Economy of Preparation

4.8 Public Information Act Notice

4.9 Award Basis

4.10 Oral Presentation

4.11 Duration of Proposal

4.12 Revisions to the RFP

4.13 Cancellations

4.14 Incurred Expenses

4.15 Protest/Disputes

4.16 Offeror Responsibilities

4.17 Acceptance of Terms and Conditions

4.18 Proposal Affidavit

4.19 Contract Affidavit

4.20 Compliance with Laws/Arrearages

4.21 Verification of Registration and Tax Payment

4.22 False Statements

4.23 Payments by Electronic Funds Transfer

4.24 Prompt Payment Policy

4.25 Electronic Procurements Authorized

4.26 MBE Participation Goal

4.27 VSBE Goal

4.28 Living Wage Requirements

4.29 Federal Funding Acknowledgement

4.30 Conflict of Interest Affidavit and Disclosure

4.31 Non-Disclosure Agreement

4.32 HIPAA – Sub-Business Associate Agreement

4.33 Nonvisual Access

4.34 Mercury and Products That Contain Mercury

4.35 Location of the Performance of Services Disclosure

4.36 Department of Human Services (DHS) Hiring Agreement

4.37 Small Business Reserve (SBR) Procurement

4.38 Maryland Healthy Working Families Act Requirements

5 Proposal Format

5.1 Two Part Submission

RFP for Maryland Department of Aging vi S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

5.2 Proposal Delivery and Packaging

5.3 Volume I - Technical Proposal

5.4 Volume II – Financial Proposal

6 Evaluation and Selection Process

6.1 Evaluation Committee

6.2 Technical Proposal Evaluation Criteria

6.3 Financial Proposal Evaluation Criteria

6.4 Reciprocal Preference

6.5 Selection Procedures

6.6 Documents Required upon Notice of Recommendation for Contract Award

7 RFP ATTACHMENTS AND APPENDICES

Attachment A. Pre-Proposal Conference Response Form

Attachment B. Financial Proposal Instructions & Form

Attachment C. Proposal Affidavit

Attachment D. Minority Business Enterprise (MBE) Forms

Attachment E. Veteran-Owned Small Business Enterprise (VSBE) Forms

Attachment F. Maryland Living Wage Affidavit of Agreement for Service Contracts

Attachment G. Federal Funds Attachments

Attachment H. Conflict of Interest Affidavit and Disclosure

Attachment I. Non-Disclosure Agreement (Contractor)

Attachment J. HIPAA Sub-Business Associate Agreement

Attachment K. Mercury Affidavit

Attachment L. Location of Performance of Services Disclosure

Attachment M. Contract

Attachment N. Contract Affidavit

Attachment O. DHS Hiring Agreement

Appendix 1. – Abbreviations and Definitions

Appendix 2. – Offeror Information Sheet

RFP for Maryland Department of Aging 1 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

As part of the determination to be considered reasonably susceptible of being selected for award, the Offeror must document in its Proposal that the following Minimum Qualifications have been met:

1.1.1 The Offeror shall have a separate Federal Employer Identification Number (FEIN) for the sole purpose of filing certain federal tax forms (e.g., IRS Forms 2678, 8821, 940, 941, 941, W-2 and W-3) and paying certain federal taxes (e.g., federal income tax withholding, FICA, and FUTA) for Participants they represent as a Fiscal Intermediary. As proof of meeting this requirement, the Offeror shall provide with its Proposal proof of a separate FEIN as specified above.

1.1.2 The Contractor shall have at least two years’ experience, within the past five years, in providing Fiscal Intermediary Services (e.g., managing the payroll and bill paying functions) to participants and families in a Veteran Directed Care Program, in accordance with generally accepted accounting principles (GAAP) and in accordance with the following laws and regulations:

Section 3504 of the IRS code, IRS Revenue Procedure 2013-39, federal income tax withholding, Medicare and Social Security taxes (FICA), unemployment (FUTA) tax, state income tax (SIT), state unemployment tax (SUTA), state gross receipts tax, and federal and state labor laws related to household employment. As proof of meeting this requirement, the Offeror shall provide with its Proposal one or more references from the past five years that collectively attest to the Offeror’s required years of experience in providing the required Fiscal Intermediary Services.

1.1.3 The Contractor shall have at least two years’ experience, within the past five years, in using and maintaining an electronic tracking and reporting system(s) to provide Fiscal Intermediary Services. As proof of meeting this requirement, the Offeror shall provide with its Proposal one or more references from the past five years that collectively attest to the Offeror’s required years of experience in providing electronic tracking and reporting system(s).

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

RFP for Maryland Department of Aging 2 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.1.1 The Maryland Department of Aging (MDoA or the “Department”) is issuing this Request for

Proposals (RFP) to provide Fiscal Intermediary Services to provide: (a) payroll processing, tax withholding services, fiscal accounting, and the required Federal and State reporting for independent Attendant Services Providers employed by Participants under the Veterans Directed Care (VDC) Program, (b) submission of electronic claims through an electronic healthcare billing clearinghouse service, using the Department’s NPI number, (c) management of resubmissions or appeals for denied or rejected claims, (d) payment processing for equipment or other items or services, which are not Attendant Services, but are authorized in the Participant’s VDC budget, i.e., Vendor Goods or Services, and (e) training to Participants on their responsibilities as an employer. This is a general list. The full list of services the Fiscal Intermediary will have to provide is in the remainder of this RFP.

2.1.2 It is the State’s intention to obtain services, as specified in this RFP, from a Contract between the selected Offeror and the State. The anticipated duration of services to be provided under this Contract is two years with an additional one-year option that can be exercised by the Department in its sole discretion.

2.1.3 The Department intends to make a single award as a result of this RFP.

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

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

2.2 Background, Purpose and Goals

The State is issuing this solicitation for the purposes of obtaining a contractor to provide Fiscal Intermediary Services in Maryland for the federal Veterans Health Administrations’ Veteran Directed Care (VDC) Program, which the Maryland Department of Aging is helping to administer as a grantee under the Administration for Community Living’s Enhanced Aging and Disability Resource Center (ADRC) initiative.

The VDC Program provides certain Veterans Health Administration (VHA) beneficiaries with benefits that provide the Veteran the opportunity to self-direct long-term supports and services, such as an aide to assist with activities of daily living that enable the Veteran to live independently at home (and avoid institutionalization). The current contract is expiring so this is a solicitation for a follow-on contractor.

The incumbent contractor is eligible to submit a proposal under this solicitation. The incumbent contractor is Acumen Fiscal Agent, Inc.

The follow-on contractor (hereinafter “Contractor” or “follow-on contractor”) must be prepared to begin transition activities as soon as March 15, 2022, and prepared to begin handling the payments for Attendant Services and Vendor Goods or Services that are delivered on or after a date on or about June 1, 2022, which final date will be established by MDoA, in consultation with Contractor and the current vendor.

VDC Program includes Attendant Services and Vendor Goods or Services. For Participants who are not able to direct their own Attendant Services, a representative is also eligible to act on the Participant’s

RFP for Maryland Department of Aging 3 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx behalf with regard to hiring, training, supervising, and firing the Participant’s Attendant Service Providers. An Attendant Service Provider cannot be a guardian or representative of the Participant.

The VDC Program identifies VHA beneficiaries living in the community who are at high risk of placement in a nursing home and spending down their financial resources, which would make them eligible for Medicaid, and who appear to be a good fit for the Program. A Veteran cannot apply for the Program directly. If the VHA identifies a potential Candidate, it forwards the name to the Department, which in turn forwards it to the local Aging and Disability Resource Center or Center for Independent Living, which will interview the Veteran to see if he or she wants to enroll in the Program.

Veterans enrolled in VDC have the opportunity to manage their own flexible budgets, to decide for themselves what mix of goods and services best meet their needs, and to hire and supervise their own workers. To assist an enrolled Participant with these tasks, the federal Veterans Health Administration requires the Department to provide VDC Supports Planners to the Participants. The Department has grant agreements with various Aging and Disability Resource Centers and Centers for Independent Living to provide VDC Supports Planners. The VDC Supports Planner assists a Candidate to become a Participant by helping, as needed, to develop an individualized Spending Plan that addresses the Candidate’s needs at home, work, and/or in the community. A Candidate who successfully enrolls in the program by having his or her Spending Plan approved by all required parties becomes a Participant.

Supervision of Attendant Service Providers is conducted by the Participant (or the Participant’s Representative) as specified in the Participant’s Spending Plan. To provide a Participant with assistance in the financial complexities of being an employer, the Department arranges for a Fiscal Intermediary to support the Participant.

A participant in the program can receive up to $3,400.00 in monthly flexible benefits, based on the assessment of the Veteran, for the duration of their participation in the Program. The approved Spending Plan will determine how that funding will be spent. Participants receiving Attendant Services will be able to hire, fire, and supervise their Attendant Services Provider. The Participant will be the employer of the Participant’s Attendant Services Provider(s). Attendant Services Providers will be subject to federal and state tax employment withholdings as domestic workers working for household employers.

Therefore, the Department is seeking the services of a Fiscal Intermediary to provide: (a) payroll processing, tax withholding services, fiscal accounting, and the required Federal and State reporting for independent Attendant Services Providers employed by Participants under the Veterans Directed Care (VDC) Program, (b) submission of electronic claims through an electronic healthcare billing clearinghouse service, using the Department’s NPI number, (c) management of resubmissions or appeals for denied or rejected claims, (d) payment processing for equipment or other items or services, which are not Attendant Services, but are authorized in the Participant’s VDC budget, i.e., Vendor Goods or Services, and (e) training to Participants on their responsibilities as an employer

Note that Candidates and Participants will receive training in their role as a common-law employer from the Fiscal Intermediary Services provider; i.e. the Contractor. The Fiscal Intermediary shall involve the VDC Supports Planners in the training. A Veteran-Directed Program Handbook has been developed for the Program. The Handbook is to be updated by the Contractor to comport with the new Contract. The current Handbook is available upon request. The Department will have final editorial control over the content of the Handbook.

The program currently operates in Anne Arundel, Baltimore City, Baltimore County, Carroll, Cecil, Harford, Howard, Montgomery, Prince Georges, Somerset, Wicomico, Worcester, and Dorchester counties. The Department is working with the Veterans Health Administration and Veterans Health Administration Medical Centers that serve Maryland Veterans to expand the Program to other Maryland counties during the Contract period.

RFP for Maryland Department of Aging 4 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

The Fiscal Intermediary Services provider (i.e. Contractor) will be required to register with the IRS as an Employer Agent for those Participants who will require an Employer Agent.

2.2.1 General Requirements

The Contractor must:

A. Provide pre-service provision start-up activities and transition services needed to transition the records and data maintained by the current contractor (See Section 3.1.) beginning on or about March 15, 2022, B. Provide the other services that are not start-up or transition services in accordance with the requirements set forth in this document beginning on or about June 1, 2022, C. Provide services in accordance with GAAP, D. Maintain tracking and reporting systems electronically, and

E. Provide transition services needed to transition the Contract to a new contractor at the end of any Contract awarded under this RFP (See Section 3.2).

2.2.2 State Responsibilities

The State is responsible for providing required information, data, and documentation to facilitate the Contractor’s performance of the work, and will provide such additional assistance and services as is specifically set forth herein.

2.3 Responsibilities and Tasks

2.3.1 Required Services—The Fiscal Intermediary Services provider, i.e., Contractor, will:

2.3.1.1 Provide no service, other than the services under this Contract, to a Participant.

2.3.1.2 Provide instruction materials and training to a Candidate on what he or she needs to do to set up services and ensure payment for approved services and supports, beginning with the development of an individualized Spending Plan for submission to the VHA with the aid of a Supports Planner as described above in Section 2.2.

2.3.1.3 Serve as the Employer Agent for Participants with employees.

2.3.1.4 Assist Candidates in completing, and Participants in submitting, the necessary forms to secure a Federal Employer Identification Number (FEIN) and establish themselves as the employer of record with the State and federal government.

2.3.1.5 Ensure that each new Participant has appointed the Contractor as the Participant’s Employer Agent by completing the Employer Appointment of Agent form, IRS Form 2678. For Participants in the Program at the point of transition, ensure they have revoked the appointment of the incumbent contractor, using IRS Form 2678, and appointed the Contractor, using a separate IRS Form 2678.

2.3.1.6 Obtain a separate FEIN to be used only in filing employment tax returns in the Fiscal Intermediary’s capacity as an Employer Agent.

2.3.1.7 Obtain approval from the IRS to become the Participant’s Employer Agent, as described in

2.3.1.5 above.

RFP for Maryland Department of Aging 5 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

2.3.1.8 While acting as Employer Agent, submit all required reports, withholding and payment actions according to federal and State tax laws and regulations—including all required federal and state year-end tax reports. The Contractor will be responsible for all late payments, penalties, and/or interest incurred.

2.3.1.9 Receive and post invoices for authorized services, compare the invoices against the Participant’s Spending Plan budget, and, if authorized by the Spending Plan, process and issue payment within 30 days of receipt, except for Participant’s employee payroll as noted in 2.3.1.10. It is important to verify expenditures are authorized in the Participant’s Spending Plans’ budget before making any payment.

2.3.1.10 Process and issue payment for Participant’s employee payroll within the appropriate payroll schedule, except when a hold has been requested by MDoA. Holds for individual employees of one or more Participants may be requested when MDoA has information indicating a timesheet may be erroneous, e.g. time claimed for a period when the Participant was in the hospital.

2.3.1.11 Advance the funds necessary to issue payments of any Veteran-Directed Benefits without any markup. The Contractor will be reimbursed for the advance, if, and only if, the payments are authorized in the Participants Spending Plan and the Veterans Health Administration approves and provides payment. See Attachment B - Financial Proposal.

For example, if a Participant’s aide is paid $15/hour and authorized to work 42 hours during the month of August, the Contractor would have to advance the funds necessary to cover all the payments necessary for the aide’s employment, totaling $630, during the month of August.

2.3.1.12 Monitor Participant budgets and provide detailed monthly statements of account activity (see requirements in Report Section 2.3.3 below).

2.3.1.13 Participate in calls with Department staff to review outstanding issues.

2.3.1.14 Provide and manage a digital/electronic timekeeping system so that Participants and Participants’ employees can submit timesheets electronically. Contractor shall also permit Participants to submit approved time sheets via paper and Contractor shall input the data from those paper timesheets into the digital system. The digital/electronic system must allow Participant’s employees, Participants, and MDoA administrators to enter, review, and/or edit timesheet submissions at applicable points in the process as appropriate. Provide accessible training and technical assistance on the timesheet submission process to Participants, Participant employees, and up to two members of MDoA staff, as needed.

2.3.1.15 Secure criminal background checks for prospective employees of a Candidate or Participant, if requested by the Candidate or Participant.

2.3.1.16 Assist Participants in obtaining and maintaining workers compensation, unemployment insurance, and other necessary employer-related insurance coverage, ensuring compliance with all State of Maryland and IRS rules for household employees.

2.3.1.17 Directly purchase Vendor Goods or Services authorized by the Participant’s Spending Plan and the Supports Planner and provide invoices for the purchases to MDoA. (See Section 3.3).

RFP for Maryland Department of Aging 6 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

2.3.1.18 Submit all claims, including claims by MDoA for full or partial assessments to be billed as Service Assessment or Plan of Care Development, as an electronic 873 claim through an electronic healthcare billing clearinghouse service, using the Department’s NPI number and the Veterans Health Administration’s payer identification number for the Veteran Directed Care Program, 12115. The clearinghouse service may be provided directly by Contractor or by sub-contracting with a clearinghouse service provider approved by the Department, whose approval shall not be withheld except for good cause.

2.3.1.19 Catalogue and address all submissions that are rejected by the Veterans Health Administration through a resubmission or appeal until successfully resolved. Resubmissions and appeals can be completed directly or through an approved clearinghouse.

2.3.1.20 Provide the Department access to approval and rejection status updates, at least weekly, for all submissions through either reporting or view-only access to the clearinghouse.

2.3.1.21 Provide all documents and data underlying an electronic 837 claim submitted to the Veterans Health Administration to the Department electronically in Excel within 24 hours of the claim’s submission. The documents and data shall include all the information necessary to submit a successful claim, including but not limited to, person-level data with dates and type of service, total administration fees/costs for each participant, as well as a summary total of all types of costs—service and administrative—for both each participant and all participants.

2.3.1.22 Establish and maintain a toll-free number for Candidates or Participants to call for assistance. A representative shall be available between the hours of 9 a.m. and 5 p.m.

Monday through Friday, with the exception of State Holidays, to take calls. When a representative is unavailable, the Fiscal Intermediary shall maintain a voice messaging system. The Contractor must comply with ADA requirements and have its phone numbers, including a TTY line, posted clearly on the Fiscal Intermediary service’s website (See 2.3.1.23). The Fiscal Intermediary service shall have available a language interpreter service (e.g., Language Line) for phone calls from English as a Second Language Candidates or Participants or their family members. Calls must be returned within one business day.

2.3.1.23 Maintain a website that will host, at a minimum, the Veteran Directed Care Program Handbook (see Section 2.2 and 2.3.2.31), as well as the instructional materials, directions, and forms referenced above.

2.3.1.24 Upon request of MDoA, the Fiscal Intermediary shall make available all written instructional materials for clients in alternative formats (to meet ADA requirements) and the following languages: Spanish and Russian.

2.3.1.25 Verify a Participant’s employees’ citizenship or legal alien status as required by the Department of Justice and U.S. Citizenship and Immigration Services.

2.3.1.26 Report a Participant’s employees’ income annually to the IRS with distribution of all appropriate copies to the appropriate individuals, e.g. the Participant and the Attendant Service Providers that qualified as employees of the Participant. See also Section 2.3.1.32 below.

2.3.1.27 Provide written information to a Participant’s employees that provide Attendant Services concerning the Federal Earned Income Credit (EIC) according to Federal requirements.

RFP for Maryland Department of Aging 7 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

2.3.1.28 Consult with IRS personnel to resolve any questions about IRS procedures or requirements pertaining to the reporting of household employees.

2.3.1.29 Comply with all federal and State laws for the payment of household employees.

2.3.1.30 Establish and maintain a continuing operations plan that will allow the service to maintain operations in the event of an emergency.

2.3.1.31 Update the program’s Veteran Directed Care Program Handbook to comport with the new names and processes the Contractor will be using.

2.3.1.32 Take those actions necessary to submit all required reports, including year-end tax reports, when a tax year is split between Contractor and the contractor that preceded or succeeds Contractor, as will be the case with the initial year and end year of any contractor awarded under this solicitation. The additional duties and actions required because of a split or bi-furcated tax year are specified in Appendix 3.

2.3.1.33 Complete, with data input from MDoA, the Readiness Review form found in Appendix 4 and receive approval of the responses before beginning the provision of services to Participants.

2.3.1.34 Take all actions necessary to submit FICA refunds that may be due because a Participant or Participant’s employee left the program or because of a bifurcated tax year. See Appendix 5.

2.3.2 Required Safeguards—The Fiscal Intermediary Services provider, i.e., the Contractor, will:

2.3.2.1 Cooperate with all State and federal auditors.

2.3.2.2 Cooperate with appeal hearings in response to any appeal filed by a Veteran regarding any action taken by MDOA, the Supports Planner, or VHA.

2.3.2.3 Provide additional information upon request from the State or federal representatives.

Information requests may stem from, but not be limited to, unusual or unexpected circumstances related to an enrolled Veteran.

2.3.2.4 Assist with the gathering of information requested (as part of 2.3.2.3).

2.3.2.5 Obtain a criminal background investigation on all employees of the Fiscal Intermediary who handle deposits, disbursements, or oversight of these functions. See Section 3.7.2 (C).

2.3.2.6 Provide the names of four (4) employees authorized to issue checks on behalf of the Fiscal Intermediary within five (5) Business Days upon receipt of the Notice to Proceed. The Contractor shall provide verbal or written notification when any of the aforementioned names are internally changed.

2.3.2.7 Establish a payment processing system that includes the endorsement of all checks by two

(2) employees of the Fiscal Intermediary.

RFP for Maryland Department of Aging 8 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

2.3.2.8 Establish a payment processing system that assures that staff members responsible for endorsements do not handle deposits.

2.3.2.9 Transmit data to the Department utilizing Microsoft Office Excel 2010 (or a more recent version as agreed upon by the parties), in the form and format approved by the Department.

2.3.2.10 Provide consumer-friendly, i.e., 10th grade or lower reading level and 12 point or greater font, materials and directions to assist Candidates and Participants to understand the financial documents and forms required to participate in the Program. The material(s) may be used by Supports Planners, the Department, and any entity authorized by the Department to assist Candidates and Participants.

2.3.2.11 Have in place a quality assurance system to identify and report to the State potential instances of fraud and abuse. (See also Section 3.8, Problem Escalation Procedure).

2.3.2.12 Have a notification system in place to alert MDoA of situations identified as potential misuse of authorized funds immediately upon discovery. (See Section 3.8).

2.3.2.13 Comply with all applicable HIPAA Privacy and Security requirements. See the required Sub-Business Associate Agreement in Attachment J, which Contractor is obligated to execute and honor.

2.3.3 Reports—With regard to reports required by the State, the Fiscal Intermediary, i.e., the Contractor, will submit to the Contract Monitor:

2.3.3.1 Its annual audited financial statement, within four months of the close of the Contractor’s fiscal year.

2.3.3.2 Monthly service utilization statements and budget reports. These monthly reports will detail by each Participant the monthly budgeted amount, monthly expenses, the amount approved and disbursed for each service compared to the amount billed, the year budgeted amount (by service), year to date expenses (by service), and projected expenditures for the remainder of the fiscal year. Each Participant report shall be sent monthly to the Participant, with copies forwarded to the Contract Monitor and the Supports Planner. The reports must be completed on the basis of the federal fiscal year, October 1 to September 30. The reports will be submitted with the invoices required by section 3.3. If requested by a Participant or the Department, reports must also be provided on a calendar year basis and State fiscal year basis—July 1 to June 30. Reports must be completed using the required templates provided by the Department.

2.3.3.3 A hard copy of any IRS notification of late payment, penalty and/or interest within 5 days of receipt.

2.3.4 Contractor-Supplied Hardware, Software, and Materials

A. By responding to this RFP and accepting a Contract award, the Offeror specifically agrees that for any software, hardware or hosting service that it proposes, the State will have the right to purchase such item(s) from another source, instead of from the selected Offeror.

B. SaaS applications shall be accessible from various client devices through a thin client interface such as a Web browser (e.g., Web-based email) or a program interface.

RFP for Maryland Department of Aging 9 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

C. The State shall be permitted limited user-specific application configuration settings.

D. The Contractor is responsible for the acquisition and operation of all hardware, software and network support related to the services being provided, and shall keep all software current.

E. All Upgrades and regulatory updates shall be provided at no additional cost.

F. The State also requires that the Offeror provide fully functional, generally available software and multiple-user licenses for purchase as needed throughout the life of the Contract.

2.3.5 Required Project Policies, Guidelines and Methodologies

The Contractor shall be required to comply with all applicable laws, regulations, policies, standards and guidelines affecting Information Technology projects, which may be created or changed periodically.

Offeror is required to review all applicable links provided below and state compliance in its response.

It is the responsibility of the Contractor to ensure adherence and to remain abreast of new or revised laws, regulations, policies, standards and guidelines affecting project execution. These include, but are not limited to:

A. The State of Maryland System Development Life Cycle (SDLC) methodology at:

http://doit.maryland.gov/SDLC/Pages/agile-sdlc.aspx ;

B. The State of Maryland Information Technology Security Policy and Standards at:

http://www.DoIT.maryland.gov- keyword: Security Policy; and

C. The State of Maryland Information Technology Non-Visual Standards at:

http://doit.maryland.gov/policies/Pages/ContractPolicies.aspx;

2.3.6 Product Requirements

No international processing for State Data: As described in Section 3.7 Security Requirements, Offerors are advised that any processing or storage of data outside of the continental U.S. is prohibited.

2.3.7 Maintenance and Support

2.3.7.1 Contractor shall maintain and support the website, database(s), and other applications necessary to perform all the requirements of the Contract. The maintenance and support requirements shall commence once Contractor’s start up activities have reached the point that Contractor can begin accepting, and processing requests for payments for Attendant Services and Vendor Goods or Services.

2.3.7.2 Backup

The Contractor shall:

A. Perform backups of the website, applications, and databases on a regular basis as necessary to provide all the information and services called for by this RFP in the event of a loss. This shall include daily incremental backups and full weekly backups;

B. Retain daily backups for at least one (1) month and weekly backups shall be retained for at least one (1) year;

http://www.doit.maryland.gov/

RFP for Maryland Department of Aging 10 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

C. Store backups off-site; and

D. Perform a backup recovery at least semi-annually.

2.4 Deliverables

2.4.1 Deliverable Submission

A. For every deliverable, the Contractor shall request the Contract Monitor confirm receipt of that deliverable by sending an e-mail identifying the deliverable name and date of receipt.

B. Unless specified otherwise, written deliverables shall be compatible with Microsoft Office, Microsoft Project or Microsoft Visio within two (2) versions of the current version. At the Contract Monitor’s discretion, the Contract Monitor may request one hard copy of a written deliverable.

C. A standard deliverable review cycle will be elaborated and agreed-upon between the State and the Contractor. This review process is entered into when the Contractor completes a deliverable.

D. For any written deliverable, the Contract Monitor may request a draft version of the deliverable, to comply with the minimum deliverable quality criteria listed in Section 2.4.3 Minimum Deliverable Quality. Drafts of each final deliverable, except status reports, are required at least two weeks in advance of when the final deliverables are due (with the exception of deliverables due at the beginning of the project where this lead time is not possible, or where draft delivery date is explicitly specified). Draft versions of a deliverable shall comply with the minimum deliverable quality criteria listed in Section 2.4.3 Minimum Deliverable Quality.

2.4.2 Deliverable Acceptance

A. A final deliverable shall satisfy the scope and requirements of this RFP for that deliverable, including the quality and acceptance criteria for a final deliverable as defined in Section

2.4.4 Deliverable Descriptions/Acceptance Criteria.

B. The Contract Monitor shall review a final deliverable to determine compliance with the acceptance criteria as defined for that deliverable. The Contract Monitor is responsible for coordinating comments and input from various team members and stakeholders. The Contract Monitor is responsible for providing clear guidance and direction to the Contractor in the event of divergent feedback from various team members.

C. The Contract Monitor will issue to the Contractor a notice of acceptance or rejection of the deliverable.

D. In the event of rejection, the Contract Monitor will formally communicate in writing any deliverable deficiencies or non-conformities to the Contractor, describing in those deficiencies what shall be corrected prior to acceptance of the deliverable in sufficient detail for the Contractor to address the deficiencies. The Contractor shall correct deficiencies and resubmit the corrected deliverable for acceptance within the agreed-upon time period for correction.

2.4.3 Minimum Deliverable Quality

The Contractor shall subject each deliverable to its internal quality-control process prior to submitting the deliverable to the State.

RFP for Maryland Department of Aging 11 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

Each deliverable shall meet the following minimum acceptance criteria:

A. Be presented in a format appropriate for the subject matter and depth of discussion.

B. Be organized in a manner that presents a logical flow of the deliverable’s content.

C. Represent factual information reasonably expected to have been known at the time of submittal.

D. In each section of the deliverable, include only information relevant to that section of the deliverable.

E. Contain content and presentation consistent with industry best practices in terms of deliverable completeness, clarity, and quality.

F. Meets the acceptance criteria applicable to that deliverable, including any State policies, functional or non-functional requirements, or industry standards.

G. Contains no structural errors such as poor grammar, misspellings or incorrect punctuation.

H. Must contain the date, author, and page numbers. When applicable for a deliverable, a revision table must be included.

I. A draft written deliverable may contain limited structural errors such as incorrect punctuation, and shall represent a significant level of completeness toward the associated final written deliverable. The draft written deliverable shall otherwise comply with minimum deliverable quality criteria above.

2.4.4 Deliverable Descriptions/Acceptance Criteria

In addition to the items identified in the table below, the Contractor may suggest other subtasks, artifacts, or deliverables to improve the quality and success of the assigned tasks.

Deliverables Summary Table*

ID # Deliverable Description

Acceptance Criteria Due Date / Frequency

Sections 2.2 and 2.3.1.31

Updated Handbook See Section 2.4.3 30 days after contract award

Section 2.3.1.2 Instruction Materials See Section 2.4.3 30 days after contract award

*The deliverables summary table may not list every contractually-required deliverable. Offerors and Contractors should read the RFP thoroughly for all Contract requirements and deliverables.

2.5 Service Level Agreement (SLA)

THIS SECTION IS INAPPLICABLE TO THIS RFP.

RFP for Maryland Department of Aging 12 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

3 Contractor Requirements: General

3.1 Contract Initiation Requirements

A. The Contractor shall cooperate in the orderly transition of services from the current contractor to the awarded Contractor before the conclusion of the current contract in accordance with the Notice to Proceed.

B. Contractor shall schedule and hold a kickoff meeting within 10 Business Days of NTP Date.

At the kickoff, the Contractor shall furnish an updated Project Schedule describing the activities for the Contractor, the State, and any third parties for fully transitioning to the Contractor’s Solution.

C. The awarded Contractor will be required to meet with the current contractor to review and transition all records and data of all current and past Participants. Records and data to be transferred will include, but not be limited to, a listing of all past and current Participants and their Attendants; each Participant’s budget, Spending Plan, and authorized services; and each Attendant’s employment and tax withholding information. Specific details of document retention and document transfer shall be discussed with the Contract Monitor, the Contractor, and current contractor. Data to be transferred will be in an Excel format.

D. If there are any disputes about what information will be transferred or how, or both, the Department will make the final determination, which will be binding. For Participants with an Employer Agent, transition services will include completing the number IRS 2678 Forms necessary to transition the Employer Agent authorization from the incumbent contractor to the subsequent contractor.

E. Transition shall be provided in a prompt and timely manner, and shall proceed in accordance with the directions and schedule provided to the Contractor by the State in a Notice to Proceed.

3.2 End of Contract Transition

3.2.1 The Contractor shall provide transition assistance as requested by the State to facilitate the orderly transfer of services to the State or a follow-on contractor, for a period up to 60 days prior to Contract end date, or the termination thereof. Such transition efforts shall consist, not by way of limitation, of:

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

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

C. Provide current operating procedures (as appropriate).

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

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

RFP for Maryland Department of Aging 13 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

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

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

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

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

2) Communications and reporting process between the Contractor, the Department and the Contract Monitor;

3) Security and system access review and closeout;

4) Any final training/orientation of Department staff;

5) Connectivity services provided, activities and approximate timelines required for Transition-Out;

6) Knowledge transfer, to include:

a) A working knowledge of the current system environments as well as the general business practices of the Department;

b) Review with the Department the procedures and practices that support the business process and current system environments;

c) Working knowledge of all technical and functional matters ,data file structure, interfaces, any batch programs, and any hardware or software tools utilized in the performance of the Contract;

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

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

7) Plans to complete tasks and any unfinished work items (including open change requests, and known issues); and

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

C. The Contractor will be required to meet with the future or “follow-on” contractor to review and transition all records and data of all current and past Participants.

Records and data to be transferred will include, but not be limited to, a listing of all past and current Participants and their Attendants; each Participant’s budget, Spending Plan, and authorized services; and each Attendant’s employment and tax withholding information. Specific details of document retention and document transfer shall be discussed with the Contract Monitor, the Contractor, and current contractor. If there are any disputes about what information will be transferred or how, or both, the Department will make the final determination, which will be binding. For Participants with an Employer Agent, transition services will include completing the number IRS 2678 Forms necessary to transition the Employer Agent authorization from the incumbent contractor to the subsequent contractor.

Data to be transferred shall be available in at least an Excel and csv format. The

RFP for Maryland Department of Aging 14 S:\COMMON\PROCUREMENT\2022\BPM025056_VDC_Fiscal Intermediary Services\1_Solicitation\RFP\RFP_FIS for VDC_Final.docx

Contractor shall ensure all documentation and data is current and complete with a hard and soft copy in a format prescribed by the Contract Monitor.

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

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

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

3.2.5 Return and Maintenance of State Data

A. Upon termination or the expiration of the Contract Term, the Contractor shall: (a) return to the State all State data in either the form it was provided to the Contractor or in a mutually agreed format along with the schema necessary to read such data;

(b) preserve, maintain, and protect all State data until the earlier of a direction by the State to delete such data or the expiration of 90 days (“the retention period”) from the date of termination or expiration of the Contract term; (c) after the retention period, the Contractor shall securely dispose of and permanently delete all State data in all of its forms, such as disk, CD/DVD, backup tape and paper such that it is not recoverable, according to National Institute of Standards and Technology (NIST)-approved methods with certificates of destruction to be provided to the…