RFP for Specialty Financial Examination Auditing Services - Published 1.7.26.pdf

Specialty Financial Examination & Auditing Services

Solicitation #: MIA/FR-25-001 eMMA#:BPM054787 RFP Document

RFP for Maryland Insurance Administration Page 1 of 49

STATE OF MARYLAND

MARYLAND INSURANCE ADMINISTRATION (MIA)

REQUEST FOR PROPOSALS (RFP)

SPECIALTY FINANCIAL EXAMINATION & AUDITING SERVICES

RFP NUMBER MIA/FR-25-001 EMMA#: BPM054787

ISSUE DATE: 01/07/2026

A Prospective Offeror that has received this document from a source other than eMaryland Marketplace Advantage (eMMA) https://procurement.maryland.gov should register on eMMA https://emma.maryland.gov/

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO RESPOND TO THIS SOLICITATION.

https://procurement.maryland.gov/ https://emma.maryland.gov/

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STATE OF MARYLAND

MARYLAND INSURANCE ADMINISTRATION (MIA)

KEY INFORMATION SUMMARY SHEET

Request for Proposals Services, - Specialty Financial Examination & Auditing Services

Solicitation Number: MIA/FR-25-001 eMMA#:BPM054787

RFP Issue Date: Wednesday, January 07, 2025.

RFP Issuing Office: Maryland Insurance Administration (MIA or the "Administration")

Procurement Officer: Anthonia Chuku Maryland Insurance Administration 200 St. Paul Place, Suite 2700 Baltimore, MD 21202

Email:

Phone Number:

Anthonia.chuku3@maryland.gov cc: Procurement.mia@maryland.gov

(410) 468-2374 (Office)

(443) 615-4741 (Cell)

Proposals are to be sent to:

Proposals will be accepted through the State's eMaryland Marketplace Advantage (eMMA) e-Procurement system. Instructions on how to submit proposals electronically can be found at:

https://procurement.maryland.gov/wp-content/uploads/sites/12/2019/08/5-eMMA-QRG-Responding-to-Solicitations-Double-Envelope-v2.pdf Submit on emma.maryland.gov under Solicitation Number MIA/FR-25- 001 eMMA#:BPM054787.

No Bid/Proposal Notice Feedback Form

*If you are not submitting a proposal for this solicitation, submit Attachment 1 with your reasons why.

Pre-Proposal Conference:

Thursday, January 22, 2026 Local Time, at 10:00 am. EST (Google Hangouts Virtual Teleconference by Calendar Invitation from Procurement Officer Only.)

See Section 4.3 for additional details.

See Attachment 2 to RSVP by Tuesday, January 20, 2026 to Attend

Questions Due Date and Time:

Wednesday, February 11, 2026, by 4:00 PM Local Time https://procurement.maryland.gov/wp-content/uploads/sites/12/2019/08/5-eMMA-QRG-Responding-to-Solicitations-Double-Envelope-v2.pdf https://procurement.maryland.gov/wp-content/uploads/sites/12/2019/08/5-eMMA-QRG-Responding-to-Solicitations-Double-Envelope-v2.pdf

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Proposal Due (Closing) Date and Time:

Wednesday, March 11, 2026, by 3:00PM Local Time Offerors are reminded that a completed Feedback Form is requested if a no-bid/proposal decision is made (see Attachment 1 - No Bid Notice/Vendor Feedback Form).

MBE Subcontracting Goal:

An overall Minority Business Enterprise (MBE) or Disadvantaged Business Enterprise (DBE) subcontract participation goal of 0 percent of the total contract dollar amount, including all renewal option terms, if any, has been established for this procurement. The overall MBE or DBE subcontract participation goal includes the following subgoals, which have been established for this procurement:

0 % for African-American MBEs;

0 % for Asian-American MBEs;

0 % for Hispanic-American MBEs; and 0 % for Woman-Owned MBEs.

N/A

VSBE Subcontracting Goal:

This solicitation includes a VSBE participation Goal of 0 % N/A

Procurement Method: A Contract will be awarded in accordance with the Competitive Sealed Proposals method under COMAR 21.05.03.

Multiple or Alternate Bids:

1 Multiple or alternate Proposals will not be accepted. See Section 2.7 “Multiple Functional Areas in a Single Proposal” for additional information.

Contract Type: Indefinite Quantity with Fully Loaded Fixed Hourly Rates.

Contract Duration: Five (5) year base period with no renewal option.

Primary Place of Performance:

Varies based on location of company subject to examination

SBR Designation: No

Federal Funding: No

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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 and Purpose

2.3 Contractor Responsibilities and Tasks

2.4 Offeror Experience and Personnel Requirements

2.5 Substitution of Personnel

2.6 Supplemental Category of Work Requirements and Responsibilities

3 Standard Terms and Conditions

3.1 Contract Initiation Requirements

3.2 End of Contract Transition

3.3 Payment and Invoicing

3.4 Liquidated Damages

3.5 Problem Escalation Procedure

3.6 Work Orders

3.7 Assignment of Work Under the Contract

3.8 Prompt Payment Policy

3.9 Federal Funding Acknowledgement

3.10 Conflict of Interest Affidavit and Disclosure

3.11 Non-Disclosure Agreement

3.12 Maryland Healthy Working Families Act Requirements

3.13 The State of Maryland’s Commitment to Purchasing Environmentally Preferred Products and Services (EPPs)

3.14 Insurance Requirements

3.15 Non-Compete Clause Prohibition

4 Proposal Submission Information and Instructions

4.1 eMaryland Marketplace Advantage (eMMA)

4.2 Electronic Means

4.3 Pre-Proposal Conference

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4.4 Questions

4.5 Proposal Due (Closing) Date and Time

4.6 Economy of Preparation

4.7 Public Information Act Notice

4.8 Oral Presentation

4.9 Duration of Proposals

4.10 Revisions to the RFP

4.11 Cancellations

4.12 Incurred Expenses

4.13 Protest/Disputes

4.14 Offeror Responsibilities

4.15 Acceptance of Terms and Conditions

4.16 Compliance with Laws/Arrearages

4.17 Verification of Registration and Tax Payment

4.18 False Statements

5 Proposal Submission Information and Instructions

5.1 Two Part Submission

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 RFP Attachments (Table B)

7 RFP Appendices and Exhibits

7.1 Appendices (Table C)

7.2 Exhibits (Table D)

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1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

The Offeror must document in its Proposal that it satisfies the following Minimum Qualifications:

A. The Offeror shall have performed at least five (5) Risk Focused Examinations as outlined in the National Association of Insurance Commissioner’s (NAIC)’s Financial Condition Examiners Handbook 2024 within the three (3) years preceding the date of its Proposal submission to this RFP.

As proof of meeting this requirement, the Offeror shall provide the following information for each examination:

1. Name of the entity examined and date of examination;

2. Name, title, email address and telephone number of point of contact for the organization who can verify that examinations were performed; and

3. The type of work performed on the examination, the dollar value, type, timeframe and duration of contract(s) for examination services for the client organization.

B. The Offeror must have completed at least two (2) Coordinated Risk Focused Examinations as outlined in the National Association of Insurance Commissioner’s (NAIC)’s Financial Condition Examiners Handbook 2024 within three (3) years preceding the date of its Proposal submission to the RFP.

As proof of meeting this requirement, the Offeror shall provide the following information.

1. Name of the entity examined and date of examination; and

2. Name, title, email address and telephone number of point of contact for the organization who can verify that examinations were performed; and

3. List the Offeror’s participation level on each coordinated exam (Lead State/Participating State) and the number of other States involved in the examination.

The Offeror shall provide with its Proposal "Attachment L Reference Checks" with at least three (3) references filled out.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

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2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.1.1 This Request for Proposals (RFP) is issued to procure the goods or services, as specified in this Section 2, from a contract between the selected offeror(s) and the State of Maryland (“State”). The Maryland Insurance Administration (MIA) is issuing this Request for Proposals (RFP) in order to obtain specialty financial examination and auditing consulting services.

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 MIA intends to make up to ten (10) contract awards – one (1) primary contract and, at the discretion of the MIA, (1) backup contract for each of the following five (5) functional areas:

Actuarial Services Property & Casualty; Reinsurance Services; Information Technology Services (IT), Actuarial Services Life & Health; and Investment Services. Selected Contractor(s) shall be able to provide services in one or more of the five (5) primary functional areas. See RFP Section 6.5 Selection Procedures for more Contract award information.

A successful Offeror, either directly or through its Subcontractors, must be able to provide all goods and services and meet all of the requirements requested in this solicitation. The successful Offeror (the Contractor) shall remain responsible for Contract performance regardless of Subcontractor participation in the work.

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

2.1.2 Maryland State and local entities as defined in Annotated Code of Maryland, State Finance and Procurement Article Section 13-110(a)(5)(i), and not-for-profit entities within the State of Maryland may purchase from the Contractor services covered by the Contract at the same prices chargeable to the State. All such purchases by non-executive branch entities, non-State governments, government agencies or not-for-profit entities:

A. shall constitute Contracts between the Contractor and that government, agency or not-for-profit entity;

B. shall not constitute purchases by the State or State agencies under the Contract;

C. shall not be binding or enforceable against the State; and

D. may be subject to other terms and conditions agreed to by the Contractor and the purchaser.

All Contract prices, terms, and conditions must be provided to any Maryland local government or not-for-profit entity requesting services under the Contract. The Contractor bears the risk of determining whether or not a government, agency or organization with which the Contractor is dealing is a State entity.

2.2 Background and Purpose

2.2.1 Background and Purpose

The MIA is the independent state agency that regulates the insurance industry. Maryland law authorizes the MIA to conduct a financial examination of authorized insurers, the management company of an authorized insurer, a subsidiary owned or controlled by an authorized insurer, a rating

RFP for Maryland Insurance Administration Page 8 of 49 organization, dental plan organization, nonprofit health service organization, or an authorized health maintenance organization. See Ins. Art. §§ 2-205, 14-125 and 14-411. See also Health General Art. § 15-102.3. The MIA is also authorized to conduct a financial examination of domestic insurers, health maintenance organizations, and managed care organizations at least once every five years. See Ins.

Art. §§ 2-205. See also Health General Art. § 15-102.3. The MIA’s Financial Regulation (FR) Unit is responsible for carrying out these examinations, and there are approximately fifty-three (53) such companies domiciled in the State of Maryland. The purpose of these examinations is to ensure the continued financial solvency of insurers authorized to do business in Maryland and ensuring compliance with NAIC requirements and Maryland law. The MIA's FR Unit also performs target examinations as a result of specific concerns. 226

Additionally, the FR Unit performs analyses of such companies and the transactions entered into or proposed to be entered into by such companies, including, but not limited to proposed transactions submitted by such companies under the Maryland Insurance Acquisitions Disclosure and Control Act set forth at Md. Code Ann. Ins. § 7-101 et seq.

The MIA does not have sufficient personnel to perform these examinations and analyses, and is seeking Contractor(s) who can provide staffing assistance, as more fully described in this RFP, for specialty financial examinations and analyses on an as-needed basis.

2.2.2 Historical Information

The following is an estimate of the total hours expended by previous contractors collectively for the five-year period October, 2018 through September, 2023:

Functional Area Expended Actuarial Services Property& Casualty 1,500 hours Reinsurance Services 240 hours Information Technology Services (IT) 3,600 hours Actuarial Services Life & Health 1,500 hours Investment Services 0 hours

These numbers are provided for informational purposes only, and are not a guarantee of the minimum or maximum number of hours of work under the Contract(s).

2.2.3 State Staff and Roles

In addition to the Procurement Officer and Contract Monitor, the State project team consists of the following:

A. State Project Manager. The State Contract Monitor is responsible for continuous contract oversight, including:

1. Contact with the Contractor to resolve any work related issues.

2. Primary contact for Performance Escalation Procedures (PEP), if needed and as appropriate.

3. Contract Compliance Monitoring as needed and as appropriate.

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2.3 Contractor Responsibilities and Tasks

Offerors, either exclusively or in combination with Subcontractors, must be able to provide all of the services requested and meet all of the requirements set forth in this solicitation, as described more fully below and in Section 3 of this RFP.

2.3.1 Technical Requirements

A. Scope of Services by Each Functional Area.

The services to be performed by the selected Contractors encompass five (5) primary Functional Areas, as follows:

1. Functional Area: Actuarial Services Property and Casualty

Description – Conduct actuarial evaluation and opinion of loss reserves and loss adjustment expenses, prepare KFA Risk Matrices/Account Analysis, claims, identify and accesses inherent risk and identify/evaluate risk, and possibly other actuarial related items. Such work may be in conjunction with on-site examinations of companies under the day-to-day supervision of a MIA examiner-in-charge and/or Assistant Chief Examiner. Based on the work performed, prepare a report and/or working papers, in a format accepted by the MIA to document and support the work done, as well as any findings and conclusions. The FR Section also performs analyses of such companies and the transactions entered into or proposed to be entered into by such companies. The FR Unit may need assistance in reviewing proposed transactions submitted by such companies under the Maryland Insurance Acquisitions Disclosure and Control Act.

2. Functional Area: Reinsurance Services

Description – Provide assistance in the review and evaluation of complex reinsurance treaties, transactions and programs, including cash flow analysis to determine risk transfer, where appropriate. This work may also be performed in conjunction with on-site examinations of companies under the day-to-day supervision of an MIA examiner in-charge and/or Assistant Chief Examiner. Based on the work performed, prepare a report and/or working papers, in a format accepted by the MIA to document and support the work done, as well as any findings and conclusions. The FR Unit also performs analyses of such companies and the transactions entered into or proposed to be entered into by such companies. The FR Unit may need assistance in reviewing proposed transactions submitted by such companies under the Maryland Insurance Acquisitions Disclosure and Control Act.

3. Functional Area: Information Technology Services (I.T.)

Description – The evaluation of controls in information technology (I.T.) is a critical element of the examination process. Conduct I.T. general and security software control review of computer environments in accordance with the General Information Technology Review guidance described within Section 1, Part III of the

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“Exhibit C” titled “Evaluation of Controls In Information Technology (IT)” in the most current version of the National Association of Insurance Commissioner’s Financial Condition Examiners Handbook available at the time of the examination, for the purpose of assessing controls and identifying exception conditions. In addition, conduct a review of the insurer’s compliance with Title 33 of the Insurance Article as directed by the MIA examiner in-charge and/or Assistant Chief Examiner.

This work may also be performed in conjunction with on-site examinations of companies under the day-to-day supervision of an MIA examiner in-charge and/or Assistant Chief Examiner. The automation tools used during the financial examinations are also referenced in the National Association of Insurance Commissioner’s Financial Condition Examiners Handbook and includes tools such as TeamMate+ (an electronic document organizer software package). These tools must be the same version utilized by the MIA at the time of the examination. Based on the work performed, prepare a report and/or working papers, in a format accepted by the MIA to document and support the work done, as well as any findings and conclusions.

4. Functional Area: Actuarial Services Life and Health

Description - Provide an actuarial evaluation and opinion of life and health reserves, prepare KFA Risk Matrices/Account Analysis, claims, identify and accesses inherent risk and identify/evaluate risk, and possibly other actuarial items. Review and evaluate companies’ actuarial memorandum, cash flow analysis and asset/liability matching for reasonableness. Work may be in conjunction with on-site examinations of companies under the day-to-day supervision of an MIA examiner-in-charge and/or Assistant Chief Examiner. Based on the work performed, prepare a report and/or working papers, in a format accepted by the MIA to document and support the work done, as well as any findings and conclusions. The FR Unit also performs analyses of such companies and the transactions entered into or proposed to be entered into by such companies. The FR Unit may need assistance in reviewing proposed transactions submitted by such companies under the Maryland Insurance Acquisitions Disclosure and Control Act.

5. Functional Area: Investment Services

Description - Provide supervision of, and/or assistance in, the review, analysis, and evaluation of companies’ investment portfolios, investment policies and strategies, agreements, etc. This work may also be performed in conjunction with on-site examinations of companies under the day-to-day supervision of an MIA examiner-in-charge and/or Assistant Chief Examiner. Procedures to be performed may include, but are not limited to, reviews of procedures and controls regarding investment accounts, performance of procedures to verify or establish existence, ownership, and valuation of investment accounts, tests of compliance with Maryland laws, rules and regulations, research and conclusions on investments, and review and evaluation of investment related agreements, including custodial account agreements. Analysis of complex transactions (such as hedging programs) and/or investments, including structured securities and derivatives, may also be required.

Analysis of the relationship of investment vehicles and/or strategies to the liability

RFP for Maryland Insurance Administration Page 11 of 49 portfolio as well as their impact on the financial condition and solvency of the company may be required. Based on the work performed, prepare a report and/or working papers, in a format accepted by the MIA to document and support the work done, as well as any findings and conclusions. The FR Unit also performs analyses of such companies and the transactions entered into or proposed to be entered into by such companies. The FR Unit may need assistance in reviewing proposed transactions submitted by such companies under the Maryland Insurance Acquisitions Disclosure and Control Act.

B. Staffing Requirements.

The Contractor shall provide staff on an as needed basis, and as requested by the MIA, for the Functional Area covered by the State Contract, and shall ensure that the staff meets at least the minimum acceptable standards set out in Section 2.4 (Offer Experience and Personnel Requirements) of this RFP.

Assigned Contractor Personnel must use TeamMate+ platform project management system to house all of the examination work papers.

For each proposed Functional Area, the Contractor must be able to provide personnel up to the anticipated annual hours below, as applicable:

C. Deliverables Under the direction of the MIA or Contractor’s Examiner-In-Charge and the assigned Assistant Chief Examiner, Contractor’s personnel, which includes the Contractor’s employees and Subcontractors, will be required to prepare examination work papers and documents, including but not limited to, narratives, analysis of accounts, flowcharts, risk matrix, and other documentation to provide evidence of actual work performed including examination testing and its results.

These documents must:

1. be created utilizing a word processing program, spreadsheet software, or other software approved in writing by the State Contract Monitor, that meets the minimum requirements set out in Section 2.5; and

Functional Area Anticipated (hours/year)

Actuarial Services Property and Casualty 1,500

Reinsurance Services 500

I.T. Services 4,000

Actuarial Services Life and Health 1,600

Investment Services 500

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2. the examination work papers and documentation must meet the requirements for Accreditation included in both the NAIC Administrative Policies Manual of the Financial Regulation Standards and Accreditation Program and the MIA's Financial Examination Manual in effect at the time the examination commences.

D. Contractor shall provide Contractor Personnel with all required equipment (including but not limited to laptop computers), software licenses (including, but not limited to, licenses through Wolther Klowers and the NAIC for TeamMate+ cloud based software), and supplies required to perform Contractual services. See Information Technology Supplemental for additional information related to Information Technology requirements.

2.4 Offeror Experience and Personnel Requirements

2.4.1 Preferred Offeror Personnel Experience

In addition to the minimum qualifications set forth in Section 1 of this RFP, the Offeror’s Personnel must have a minimum of ten (10) years of experience (cumulatively) providing services of the type required under this RFP. Offeror must demonstrate an understanding of and experience in the Risk Focused Examination approach.

2.4.2 General Personnel Requirements

A. Contractor shall ensure that assigned personnel is able to perform the services required for the applicable functional area, as described in Section 2.3, and Contractor Personnel meet or exceed these general personnel requirements, and the minimum requirements for the specified functional area, as described in Sections 2.4.3 through 2.4.7 below.

B. The Offeror’s personnel selected to participate in the financial examinations must:

i. be knowledgeable about all related professional financial examination standards in effect at the time of the examination including, but not limited to, Generally Accepted Accounting Principles for United States Companies and U.S. Generally Accepted Auditing Standards (“GAAS”).

ii. possess a working knowledge of NAIC’s solvency regulatory requirements as included in statutory accounting principles codified in the NAIC Accounting Practices and Procedures Manual and the Financial Condition Examiners Handbook;

and

iii. be able to research Maryland laws and regulations as they relate to the company under examination; and

iv. be able to utilize TeamMate+ platform.

C. All required licenses and certifications for Contractor Personnel must be valid and in good standing at the time the Contractor submits its Proposal.

D. All experience required must have occurred within the most recent ten (10) years.

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2.4.3 Actuarial Services Property and Casualty; Personnel Requirements.

A. Designation and Qualifications: The actuary must be:

1. a member in good standing of the American Academy of Actuaries

(M.A.A.A.) and a Fellow of the Casualty Actuarial Society (F.C.A.S.); and

2. qualified to sign actuarial opinions for property and casualty companies.

B. Experience: The actuary must have at least five (5) years of experience setting or evaluating property and casualty loss reserves. At least one year of this experience must be within three years of the date of the issuance of this RFP.

2.4.4 Reinsurance Services; Personnel Requirements.

A. Designations: None required. Preference will be granted for personnel who hold Associate, Reinsurance Administration™ (ARA™), Associate in Reinsurance (ARe) Designations.

B. Experience: Contractor Personnel must have at least five (5) years experience in the evaluation of reinsurance treaties and transactions, and have demonstrated knowledge of and experience using the current NAIC Accounting Practices and Procedures Manual regarding reinsurance and the current NAIC Financial Condition Examiners Handbook regarding reinsurance. At least one year of this experience must be within three years of the date of the issuance of this RFP.

2.4.5 I.T. Audits Services; Personnel Requirements.

A. Designations: Contractor Personnel must be a Certified Information Systems Auditor (CISA) certification or certified Automated Examination Specialist (AES).

B. Experience: Contractor Personnel must have:

1. at least five (5) years experience conducting general control and security reviews and in performing computer-assisted audit techniques.

2. Demonstrated knowledge and experience using the Exhibit C questionnaire in the NAIC Financial Condition Examiner’s Handbook and TeamMate+ Software. At least two years of this experience must be within three years of the date of the issuance of this RFP.

2.4.6 Actuarial Services Life and Health; Personnel Requirements.

A. Designation and Qualifications: The actuary must be:

1. a member in good standing of the American Academy of Actuaries (M.A.A.A.) and a Fellow of the Society of Actuaries (F.S.A.); and

2. qualified to sign actuarial opinions for life and health companies.

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B. Experience: The actuary must have at least five (5) years of experience setting or evaluating life and health loss reserves, and performing or evaluating life insurer’s cash flow analysis and asset/liability matching. At least one year of this experience must be within three years of the date of the issuance of this RFP.

2.4.7 Investment Services; Personnel Requirements.

A. Designations: None. IPIR, FRM, CIMA, or CFA

B. Experience: Contractor Personnel must:

1. have at least 5 years experience reviewing investments in a Risk Focused

Examination. At least one year of this experience must be within three years of the date of the issuance of this RFP;

2. be able to demonstrate knowledge of and experience using NAIC Annual Statement Blank, Accounting Practices and Procedures, Purposes and Procedure Manual of NAIC Securities Valuation Office and other guidelines regarding investments; and

3. be able to demonstrate understanding of complex investment transactions and products; and have performed relevant investment review of a Company for Maryland and/or other regulatory state or jurisdiction.

2.4.8 Contractor Personnel Maintain Certifications

Any Contractor Personnel provided under this RFP shall maintain in good standing any required professional certifications for the duration of the Contract.

2.4.9 Work Hours

Unless otherwise specified, the following work hours requirements are applicable:

A. Business Hours Support: Contractor shall assign Contractor Personnel to support Normal State Business Hours (see definition in Appendix 1) (8.00 AM to 5.00 PM), Monday through Friday except for State holidays.

B. Contractor Personnel may also be required to provide occasional support outside of normal State Business Hours, including evenings, overnight, and weekends, to support specific efforts and emergencies, such as to resolve system repair or restoration. Hours performing activities must be billed on an actual time worked basis at the rates proposed.

C. State-Mandated Closings: Contractor Personnel shall be required to participate in any State-mandated closings. In this event, the Contractor will be notified in writing by the Contract Monitor of these details.

D. Minimum and Maximum Hours: Full-time Contractor Personnel shall work 40 hours per week with starting and ending times as approved by the Contract Monitor. A flexible work schedule may be used with Contract Monitor approval, including time to support any efforts outside core business hours. Contractor personnel may also be requested to restrict the number of hours Contractor personnel can work within a given period of time that may result in less than an eight-hour day or less than a 40-hour work week.

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E. Vacation Hours: Requests for leave shall be submitted to the Contract Monitor at least two weeks in advance. The Contract Monitor reserves the right to request a temporary replacement if leave extends longer than one consecutive week. In cases where there is insufficient coverage, a leave request may be denied.

2.5 Substitution of Personnel

2.5.1 Continuous Performance of Key Personnel

When Key Personnel are identified for the Contract, the following apply:

A. Key Personnel shall be available to perform Contract requirements as of the Notice to Proceed (NTP) Date. Unless explicitly authorized by the Contract Monitor or specified in the Contract, Key Personnel shall be assigned to the State of Maryland as a dedicated resource.

B. Key Personnel shall perform continuously for the duration of the Contract, or such lesser duration as specified in the Technical Proposal. Key Personnel may not be removed by the Contractor from working under the Contract without the prior written approval of the Contract Monitor.

C. The provisions of this section apply to Key Personnel identified in any response to a NTP for a specific examination.

2.5.2 Definitions

For the purposes of this section, the following definitions apply:

A. Extraordinary Personal Event – means any of: leave under the Family Medical Leave Act; an Incapacitating injury or Incapacitating illness; or other circumstances that in the sole discretion of the State warrant an extended leave of absence, such as extended jury duty or extended military service that precludes the individual from performing his/her job duties under the Contract.

B. Incapacitating – means any health circumstance that substantially impairs the ability of an individual to perform the job duties described for that individual’s position in the RFP or the Contractor’s Technical Proposal.

2.5.3 Contractor Personnel General Substitution Provisions

The following provisions apply to all of the circumstances of Contractor Personnel substitution described in Section 2.5.4.

A. The Contractor shall demonstrate to the Contract Monitor’s satisfaction that the proposed substitute has qualifications at least equal to those of the Contractor Personnel proposed to be replaced.

B. The Contractor shall provide the Contract Monitor with a substitution request that shall include:

1. A detailed explanation of the reason(s) for the substitution request;

2. The resume of the proposed substitute, signed by the substituting individual and his/her formal supervisor;

3. The official resume of the current personnel for comparison purposes; and

4. Evidence of any required credentials.

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C. The Contract Monitor may request additional information concerning the proposed substitution and may interview the proposed substitute personnel prior to deciding whether to approve the substitution request.

D. The Contract Monitor will notify the Contractor in writing of: (i) the acceptance or denial, or (ii) contingent or temporary approval for a specified time limit, of the requested substitution. The Contract Monitor will not unreasonably withhold approval of a proposed Contractor Personnel replacement.

2.5.4 Replacement Circumstances

A. Directed Personnel Replacement

1. The Contract Monitor may direct the Contractor to replace any Contractor Personnel who, in the sole discretion of the Contract Monitor, are perceived as being unqualified, non-productive, unable to fully perform the job duties, disruptive, or known, or reasonably believed, to have committed a major infraction(s) of law, MIA’s policies, or Contract requirements. Normally, a directed personnel replacement will occur only after prior notification of problems with requested remediation, as described in paragraph 2.5.4.A.2.

2. If deemed appropriate in the discretion of the Contract Monitor, the Contract Monitor may give written notice of any Contractor Personnel performance issues to the Contractor, describing the problem and delineating the remediation requirement(s). The Contractor shall provide a written response to the remediation requirements in a Remediation Plan within ten (10) days of the date of the notice and shall immediately implement the Remediation Plan upon written acceptance by the Contract Monitor. If the Contract Monitor rejects the Remediation Plan, the Contractor shall revise and resubmit the plan to the Contract Monitor within five (5) days, or in the timeframe set forth by the Contract Monitor in writing.

3. Should performance issues persist despite an approved Remediation Plan, the Contract Monitor may give written notice of the continuing performance issues and either request a new Remediation Plan within a specified time limit or direct the substitution of Contractor Personnel whose performance is at issue with a qualified substitute, including requiring the immediate removal of the Contractor Personnel at issue.

4. Replacement or substitution of Contractor Personnel under this section shall be in addition to, and not in lieu of, the State’s remedies under the Contract or which otherwise may be available at law or in equity.

5. If the Contract Monitor determines to direct substitution under 2.5.4.A.1, if at all possible, at least fifteen (15) days advance notice shall be given to the Contractor.

However, if the Contract Monitor deems it necessary and in the State’s best interests to remove the Contractor Personnel with less than fifteen (15) days’ notice, the Contract Monitor may direct the removal in a timeframe of less than fifteen (15) days, including immediate removal.

6. In circumstances of directed removal, the Contractor shall, in accordance with paragraph 2.5.4.A.1 of this section, provide a suitable replacement for approval within fifteen (15) days of the notification of the need for removal, or the actual removal, whichever occurs first.

B. Key Personnel Replacement

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To replace any Key Personnel in a circumstance other than as described in 2.5.4.C, including transfers and promotions, the Contractor shall submit a substitution request as described in Section 2.5.3 to the Contract Monitor at least fifteen (15) days prior to the intended date of change. A substitution may not occur unless and until the Contract Monitor approves the substitution in writing.

C. Key Personnel Replacement Due to Sudden Vacancy

1. The Contractor shall replace Key Personnel whenever a sudden vacancy occurs (e.g., Extraordinary Personal Event, death, resignation, termination). A termination or resignation with thirty (30) days or more advance notice shall be treated as a replacement under Section 2.5.4.B.

2. Under any of the circumstances set forth in this paragraph B, the Contractor shall identify a suitable replacement and provide the same information and items required under Section 2.5.3 within fifteen (15) days of the actual vacancy occurrence or from when the Contractor first knew or should have known that the vacancy would be occurring, whichever is earlier.

D. Key Personnel Replacement Due to an Indeterminate Absence

1. If any Key Personnel has been absent from his/her job for a period of ten (10) days and it is not known or reasonably anticipated that the individual will be returning to work within the next twenty (20) days to fully resume all job duties, before the 25th day of continuous absence, the Contractor shall identify a suitable replacement and provide the same information and items to the Contract Monitor as required under Section 2.5.3.

2. However, if this person is available to return to work and fully perform all job duties before a replacement has been authorized by the Contract Monitor the Contract Monitor may, at his/her sole discretion, authorize the original personnel to continue to work under the Contract, or authorize the replacement personnel to replace the original personnel, notwithstanding the original personnel’s ability to return.

2.5.5 Substitution Prior to and Within 30 Days After Contract Execution

Prior to Contract execution or within thirty (30) days after Contract execution, the Offeror may not substitute proposed Key Personnel except under the following circumstances (a) for actual full-time personnel employed directly by the Offeror: the vacancy occurs due to the sudden termination, resignation, or approved leave of absence due to an Extraordinary Personal Event, or the death of such personnel; and (b) for any temporary staff, Subcontractors or 1099 contractors:

the vacancy occurs due to an Incapacitating event or the death of such personnel. To qualify for such substitution, the Offeror must demonstrate to the State's satisfaction the event necessitating substitution. Proposed substitutions shall be of equal caliber or higher, in the State's sole discretion. Proposed substitutes deemed by the State to be less qualified than the originally proposed individual may be grounds for pre-award disqualification or post-award termination

2.6 Supplemental Category of Work Requirements and Responsibilities See the attached Information Technology (IT) Supplemental and Professional Services Supplemental incorporated by reference in this Solicitation.

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2.7 Multiple Functional Areas in a Single Proposal

An Offeror may propose to perform services in one or more functional areas, but should make sure to address the requirements of each functional area in its proposal. A proposal that includes more than one functional area will be deemed a single proposal, and will not be treated as a multiple or alternative proposal. Submission of more than one proposal for a single Functional Area, however, is not permitted, and the proposals will be determined to be not reasonably susceptible of being selected for award and rejected.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.

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3 Standard Terms and Conditions

3.1 Contract Initiation Requirements

THIS SECTION IS INAPPLICABLE TO THIS RFP.

3.2 End of Contract Transition

The Contractor shall cooperate in the orderly transition of services from it to a subsequent contractor at the end of the contract term or upon receipt of a Notice of Termination from the State. Transition shall be provided in a prompt and timely manner and shall proceed in accordance with the schedule provided to the Contractor by the State in the Notice of Transition. Additional instructions regarding transition services may be provided in the event of a Notice of Termination issued by the State.

3.3 Payment and Invoicing

3.3.1 General

A. The Contractor will be paid at the fully loaded fixed hourly rate specified in its Financial Proposal, or Best and Final Offer, if any, and Contract year in the Financial Proposal. Payment will be made for up to two hours labor time spent traveling. Reimbursement will be made for qualified travel-related expenses subject to the provisions of the State of Maryland’s Travel Regulations in effect at the time of the review.

B. The Contractor, unless directed otherwise by the State Contract Monitor, shall exercise the following method of payment and invoicing:

C. All contract fees, including travel-related reimbursement, will be paid directly by the company that is the subject of examination (“Examinee”). Payment by the Examinee shall be made based upon the actual amount of work satisfactorily performed by the Contractor, such invoices having been submitted to and approved by the State Contract Monitor, or her delegate. Whether performance is satisfactory will be determined in the sole discretion of the State Contract Monitor.

D. Contractor shall submit an invoice that meets the requirements of Section 3.3 to the Examinee and the MIA as follows:

i. The Contractor shall e-mail the original of each invoice and signed authorization to invoice to the Contract Monitor;

ii. The Contract Monitor will review the Contractor Invoice and, once approved, email an “OK TO PAY Approval” to the Contractor; and

iii. The Contractor will then send the approved invoice, along with the Contract Monitors “OK TO PAY Approval” email, to the Examinee using the contact information provided for invoicing at the time the examination NTP is issued.

E. The Contractor agrees that the State of Maryland shall not be liable, in any manner, for the payment of any fees, costs, or expenses under the Contract(s) resulting from this Solicitation.

F. As permitted by law, the MIA will take appropriate action to ensure that the Examinee pays the approved invoices under this Contract.

3.3.2 Invoicing

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Submission of an invoice constitutes the Contractor’s verification that the information in the invoice is accurate as of the time of submission.

An invoice not satisfying the requirements of a Proper Invoice (as defined in COMAR 21.06.09) cannot be processed for payment. To be considered a Proper Invoice, invoices must include the following information, without error:

A. Contractor name and address;

B. Remittance address;

C. Federal taxpayer identification (FEIN) number, social security number, as appropriate;

D. Invoice period (i.e. time period during which services covered by invoice were performed);

E. Invoice date;

F. Invoice number;

G. State assigned Contract number;

H. State assigned (Blanket) Purchase Order number(s);

I. Goods or services provided; including individual staff member’s name, applicable functional area, type of work (including, for example, if for travel), and number of hours, or portion thereof, worked by employee, and for all employees in the aggregate;

J. The applicable Fully Loaded Fixed Hourly Rate;

K. Travel and expense reimbursement information, which is listed on a separate line from labor hours being invoiced. Supporting documentation such as itemized receipts must accompany the invoice for all eligible expenses;

L. The name of the company that is the subject of review (Examinee), and the SERFF filing number assigned by the MIA;

M. Amount due; and N. Any additional documentation required by regulation or the Contract.

After the first invoice, subsequent invoices should document cumulative hours worked and cumulative dollars invoiced by Contractor for all work under the NTP as of date of invoice in order to ensure compliance with the NTE stated in the NTP for the examination or analyses.

The State reserves the right to reduce or withhold approval for Contract payment in the event the Contractor does not provide all required deliverables within the time frame specified in the Contract or otherwise fails to satisfy the terms and conditions of the Contract until such time as the Contractor brings itself into full compliance with the Contract. Also, see the “Living Wage” provision of the Contract, if applicable, which allows for withholding of payment under certain circumstances. Any action on the part of the MIA, or dispute of action by the Contractor, shall be in accordance with the provisions of Md. Code Ann., State Finance and Procurement Article §§ 15-215 through 15-223 and with COMAR 21.10.04.

The State is generally exempt from federal excise taxes, Maryland sales and use taxes, District of Columbia sales taxes and transportation taxes. The Contractor, however, is not exempt from such sales and use taxes and may be liable for the same.

Invoices for final payment shall be clearly marked as “FINAL” and submitted when all work requirements have been completed and no further charges are to be incurred under the Contract. In no event shall any invoice be submitted later than 60 calendar days from the Contract termination date.

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3.3.3 Amounts Due and Payable.

For the purposes of the Contract, an amount will not be deemed due and payable if:

A. The amount invoiced is inconsistent with the Contract;

B. Either the State Contract Monitor and/or Examinee has not received a Proper Invoice;

C. The Proper Invoice has not been approved by the State Contract Monitor;

D. The invoice or performance is in dispute, or the Contractor has failed to otherwise comply with the provisions of the Contract;

E. The services specified (including all hours or portions thereof) have not been rendered or accepted;

F. The services do not meet the quality requirements of the Contract; or the Contractor has not submitted satisfactory documentation or other evidence reasonably required by the Procurement Officer or by the Contract concerning performance under the Contract and compliance with its provisions.

3.3.4 Invoice Submission Schedule

Invoices shall be issued on a monthly basis. The Contractor shall submit invoices on or before the 15th business day of the month following the end of the invoice period. For example, work performed January 1, 2026 through January 31, 2026 shall be billed by February 15, 2026.

3.3.5 Travel Reimbursement

A. Reimbursement will be made for qualified travel-related expenses subject to the provisions of the State of Maryland’s Travel Regulations in effect at the time of the examination or analyses. Payment will be made for up to two (2) hours of labor time spent traveling.

B. Contractors will be reimbursed in accordance with the State of Maryland’s Standard Travel Regulations, COMAR 23.02.01 et seq., for qualified travel expenses incurred in connection with any travel necessary to meet with MIA staff or perform work under the Contract. An official copy of these regulations may be downloaded on the website of the Maryland Division of State Documents, http://www.dsd.state.md.us. Contractor will be reimbursed for expenses incurred to travel to the offices of the MIA and for lodging expenses incurred in the Baltimore area. Reimbursement will be made for out-of- pocket expenses (e.g., mileage, tolls, parking), including those out of pocket expenses incurred while performing work in the Baltimore area. A per diem allowance will not be paid.

Unless directed otherwise by the State Contract Monitor, travel-related expenses shall be specified in the monthly invoice and original receipts for such expenses attached to the invoice submitted to the MIA, with copies of same receipts to the Examinee.

C. For purposes of computing travel-related expenses, the assigned office for all individuals performing services under these Contracts will be the Contractors’ offices or the Contractors’ employee’s home, whichever is closer to the location of the financial examination. If the Contractor has more than one office, the location that shall be used for purposes of calculating travel-related expenses shall be the Contractors’ office to which the majority of employees who are performing services under the Contract are regularly assigned.

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3.4 Liquidated Damages

3.4.1 MBE Liquidated Damages

Inapplicable because there is no MBE goal for this RFP.

3.4.2 Liquidated Damages other than MBE

This section is inapplicable to this RFP.

3.5 Problem Escalation Procedure

No later than ten (10) Business Days after notice of recommended award or after the date of the Notice to Proceed, whichever is earlier, the Contractor must provide, and thereafter, maintain a Problem Escalation Procedure (PEP) for both routine and emergency situations. The PEP must state how the Contractor will address problem situations as they occur during the performance of the Contract, especially problems that are not resolved to the satisfaction of the State within appropriate timeframes and must include:

A. Contact information B. The process for establishing the existence of a problem;

C. Names, titles, and contact information for progressively higher levels of personnel in the

Contractor’s organization who would become involved in resolving a problem;

D. For each individual listed in the Contractor’s PEP, the maximum amount of time a problem will remain unresolved with that individual before the problem escalates to the next contact person listed in the Contractor’s PEP;

E. Expedited escalation procedures and any circumstances that would trigger expediting them;

F. The method of providing feedback on resolution progress, including the frequency of feedback to be provided to the State;

G. Contact information for persons responsible for resolving issues after normal business hours (e.g., evenings, weekends,…