RFP_IAO-26-01_.pdf

BUSINESS AND CONSUMER SERVICES AGENCY• GAVIN NEWSOM, GOVERNOR

Department of Consumer Affairs 1625 N. Market Blvd., Suite S-103, Sacramento, CA 95834 www.dca.ca.gov

STATE OF CALIFORNIA

DEPARTMENT OF CONSUMER AFFAIRS

INTERNAL AUDIT OFFICE

REQUEST FOR PROPOSAL (Secondary)

RFP No. IAO-26-01

Audit Assurance Services

Notice to Prospective Proposers

July 31, 2026

You are invited to review and respond to this Request for Proposal (RFP), No. IAO-26-01 entitled “Audit Assurance Services.” Proposers must comply with the instructions found herein.

In submitting a proposal, Proposers agree that they have read, understood, and will comply with the instructions found herein. Failure to comply with any of the requirements may result in the rejection of a proposal. By submitting a response, Proposers agree to the terms and conditions stated in this solicitation and any resulting agreement.

All agreements entered into with the State of California will include, by reference, the state’s General Terms and Conditions (GTC 02/2025) and Contractor Certification Clauses (CCC 04/2017) that may be viewed and downloaded at: https://www.dgs.ca.gov/OLS/Resources/Page- Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract- Language#@ViewBag.JumpTo.

This solicitation is published online at the California State Contracts Register (CSCR) Cal eProcure web site at: https://caleprocure.ca.gov/pages/index.aspx. To ensure receipt of any addenda that may be issued, and answers to any questions posed, Proposers must register online at https://caleprocure.ca.gov/pages/. If a Proposer does not have Internet access, a hard copy can be obtained by contacting the person listed below.

In accordance with the California Government Code and Americans with Disabilities Act (ADA) requirements, this RFP can be made available in a text-only format on a compact disc as a disability-related reasonable accommodation.

In the opinion of the Department of Consumer Affairs (DCA), this RFP is complete and without need of explanation. However, if you have questions, or should you need any clarifying information, please contact:

Jennifer Martineau Contract Administrator jennifer.martineau@dca.ca.gov

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

The Disabled Veteran Business Enterprise (DVBE) participation requirement is exempt for this RFP. However, DVBE participation is highly encouraged through the use of a DVBE incentive.

DVBE information can be found on page 19-22.

https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language#@ViewBag.JumpTo https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language#@ViewBag.JumpTo https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language#@ViewBag.JumpTo https://caleprocure.ca.gov/pages/index.aspx https://caleprocure.ca.gov/pages/

TABLE OF CONTENTS

I. PURPOSE OF REQUEST FOR PROPOSAL

II. BACKGROUND ON THE DEPARTMENT OF CONSUMER AFFAIRS

III. BACKGROUND ON PREMIER HEALTH SERVICES, INC

IV. PROBLEM STATEMENT

V. NEEDS AND OBJECTIVES

VI. TERM OF AGREEMENT AND AVAILABILITY OF FUNDS

VII. MINIMUM QUALIFICATIONS FOR THE PROPOSER

VIII. PROPOSAL REQUIREMENTS AND INFORMATION

IX. FISCAL LIMITS

X. WRITTEN QUESTIONS REGARDING THE RFP

XI. ADDENDA

XII. SUBMISSION OF PROPOSAL

XIII. SCOPE OF PROJECT

XIV. EVALUATION PROCESS

XV. FINAL SELECTION AND AWARD PROCESS

XVI. PROTEST PROCEDURES

XVII. DISPOSITION OF PROPOSALS

XVIII. TAX DELINQUENCY DISCLAIMER:

XIX. METHOD OF PAYMENT

XX. PREFERENCE/INCENTIVE PROGRAMS

XXI. DARFUR CONTRACTING ACT CERTIFICATION

XXII. LOSS LEADER LANGUAGE

XXIII. GENAI………………………………………………………………………………………………………………..22

ATTACHMENTS

ATTACHMENT 1: Required Attachment Checklist ATTACHMENT 2: Proposer Certification Sheet ATTACHMENT 3: Technical Proposal ATTACHMENT 4: Proposer References ATTACHMENT 11: Cost Porposal ATTACHMENT 12: Sample Exhibit A through Exhibit E ATTACHMENT 13: Phase I Evaluation - Intake & Compliance Review (Pass/Fail) ATTACHMENT 14: Phase II Technical Proposal Evaluation Criteria ATTACHMENT 15: Phase II Technical Proposal Evaluation

California Department of Consumer Affairs

RFP IAO-26-01

I. Purpose of Request for Proposal

The Department of Consumer Affairs (DCA or Department) invites proposals to provide audit assurance (Auditor) services to ensure that the programs operated by the Department’s healing arts licensing boards for the monitoring and recovery of licensees with substance abuse issues comply with the Department’s Uniform Standards Regarding Substance Abusing Licensees (“Uniform Standards”). (See Business and Professions Code section 315, et seq.;

also see Senate Bill (SB) 1441 (Ridley-Thomas, Chapter 548, Statutes of 2008) (hereinafter referred to as SB 1441).) The healing arts licensing boards that operate such substance abuse recovery programs (also known as intervention programs, diversion program, wellness programs, etc.) include the Dental Board of California, the Board of Registered Nursing, the Physical Therapy Board of California, the Physician Assistant Board, the Osteopathic Medical Board of California, the California State Board of Pharmacy, the Veterinary Medical Board of California, and the Dental Hygiene Board of California (collectively hereinafter referred to as Healing Arts Boards). The purpose of SB 1441 is to ensure that public safety remains the paramount mission of the Healing Arts Boards within the DCA when dealing with licensees suffering from drug or alcohol abuse or dependency problems. Pursuant to SB 1441, 16 standards were identified and set forth in the Uniform Standards, which must be implemented by the Healing Arts Boards to ensure a comprehensive substance abuse recovery program.

The purpose of this proposal is to comply with Uniform Standard 15 which mandates that if the Healing Arts Boards use a private-sector vendor to provide monitoring services for their licensees, an external independent audit must be conducted at least once every three (3) years by a qualified, independent reviewer or review team from outside the department with no real or apparent conflict of interest with the vendor providing the monitoring services. In addition, the reviewer should not be a part of or under the control of the DCA. The independent reviewer or review team must consist of individuals who are competent in the professional practice of internal auditing and assessment processes and qualified to perform audits of monitoring programs. The audit must assess the private-sector vendor’s performance in adhering to the SB 1441 Uniform Standards 1-16 established by the Healing Arts Boards within the DCA.

The DCA and the Healing Arts Boards have contracted with a third-party vendor, Premier Health Group, LLC (Premier), for services in connection with Boards’ recovery programs via Department of General Services (DGS)-executed contract 110812. Therefore, this proposal is to obtain Audit Assurance Services which may include, but not be limited to, the following:

1. An audit to evaluate and identify Premier’s monitoring activities to identify the strengths and weaknesses of current operations and make recommendations for improvement where appropriate.

2. The Auditor shall monitor and evaluate Premier’s monitoring efforts with specific concentration on compliance with the approved contract, Uniform Standards, and monitoring of licensees required to participate in a monitoring program.

The selected Proposer will work with the DCA, DCA Internal Audit Office (IAO) and Healing Arts Boards in the performance of the audit of Premier to ensure compliance with the recovery program requirements and Uniform Standards 1-16 which are discussed in more detail in Article XIII., Scope of Project, of this proposal.

II. Background on the Department of Consumer Affairs

The Department is one of 8 entities overseen by the Business and Consumer Services Agency (Agency). DCA is comprised of 36 boards, which includes the Healing Arts Boards and other boards, bureaus, committees, commissions, and programs that issue and regulate more than

3.4 million licenses in approximately 280 license types including permits, certificates, approvals, and registrations. These licensing entities set and enforce minimum qualifications for the professionals, establishments, and businesses they regulate.

The Department is led by a Director, appointed by the Governor. The Department supports these entities through its staff of legal, technical, and administrative professionals. These professionals provide a wide range of support services, including human resources, budgeting, information technology, investigations, communications, professional examinations, training, and strategic planning.

For more information on DCA, visit its website at www.dca.ca.gov.

III. Background on Premier Health Group LLC

Premier, under the DGS contract 110812 agreed to provide the Department of Consumer Affairs and the Healing Art Boards, which includes Board of Registered Nursing, Dental Board of California, Board of Pharmacy, Physical Therapy Board of California, Physician Assistant Board, Veterinary Medical Board of California, Osteopathic Medical Board of California, and the Dental Hygiene Board of California with Recovery Program services to implement a Statewide Recovery Program for California. The services are performed at various locations designated by Premier, 24 hours per day, 7 days per week. Specifically, Premier is responsible for implementing a statewide comprehensive drug and substance abuse recovery program, involving treatment, rehabilitation, monitoring, compliance referrals, and recovery for health care professionals who are licensed or registered by each Board.

For more information on Premier, visit its website at www.premierhealthgroup.net/.

IV. Problem Statement

The Department seeks an entity to provide an independent unbiased audit of Premier’s operational and compliance performance with Uniform Standards 1-16 to ensure that public safety remains the paramount mission of the Healing Arts Boards within the DCA when dealing with licensees suffering from drug or alcohol abuse or dependency problems. The Proposer should be prepared to audit and evaluate the overall performance of Premier to manage the Healing Arts Boards’ diversion programs for substance-abusing licensees. The Proposer should make recommendations for audit findings and suggest improvements or reforms required to ensure that individuals participating in the programs are appropriately monitored, and the public is protected from health care practitioners who are impaired due to alcohol or drug abuse or mental or physical illness as prescribed in SB 1441.

V. Needs and Objectives

The Department seeks to satisfy the requirements of SB 1441 through this agreement.

Primarily, the Auditor will provide an independent assurance that Premier is performing and ensuring compliance with Uniform Standards 1-16 established by the DCA and the Healing Arts Boards.

http://www.dca.ca.gov/ http://www.premierhealthgroup.net/

The Auditor will be required to submit to the DCA IAO and the Healing Arts Boards a draft written report 45 days prior to the final report issue dates to solicit feedback and any corrections to the statement of facts contained in the audit report of the Auditor’s findings and recommendations. This report will subsequently be shared with the DCA, Legislature, and Healing Arts Boards no later than June 30, 2027. The Auditor will be required to present the report in person or via an electronic platform to the DCA, the Legislature, the IAO, and/or the Healing Arts Boards, as requested.

VI. Term of Agreement and Availability of Funds

The Department anticipates that this agreement will be executed October 15, 2026, for the term of October 15, 2026, through June 30, 2027, or sooner, whichever occurs first. The total amount projected to be available for this project is $280,000.00. Funding for this contract is contingent on the continued availability of annual appropriations under the Budget Act. If the funding for this program for any fiscal year is reduced or deleted by the Budget Act, the State shall have the option to cancel this agreement with no liability occurring to the State.

VII. Minimum Qualifications for the Proposer

A. Proposer Requirements

The proposer responding to this RFP must serve as the Prime Contractor and therefore must meet the Minimum Qualification for the Proposer as stated in this section.

The Prime Contractor must have the experience and qualifications to provide oversight to all proposed subcontractors and review and approve work products created by all proposed subcontractors.

The Proposer must provide resumes for all the individuals and/or job specifications that will be used during the term of this agreement and must meet the following qualifications:

1. Minimum one staff with Certified Public Accountant or Certified Internal Auditor certification in good standing to provide independent audit assurance(s).

2. Minimum five (5) years’ experience in conducting performance, operational and compliance audits of government contractor entities and their subcontractors.

3. Minimum five (5) years’ experience in staffing requirements analysis, including developing workload, service level, and quality measures.

4. Minimum five (5) years’ experience in the assessment and evaluation of government programs.

5. Minimum five (5) years’ knowledge and experience on the fundamentals of state licensure and regulation of professions.

6. Minimum five (5) years’ knowledge and experience in applying statistically valid sampling methodologies.

7. Must be certified by the Secretary of State, if applicable.

The Proposer’s response must identify any staff and/or subcontractors that it proposes to use as part of its audit of the DCA California Recovery Program.

The Proposer shall not have previously been employed by, under contract with, in any financial relationship with, or affiliated with an organization that represents patient or health care provider interests, including, but not limited to, a professional association, lobbyist employer, advocacy organization, or party that has appeared before the DCA, Healing Arts Boards or the Legislature.

VIII. Proposal Requirements and Information

A. Time Schedule

All Proposers are hereby advised of the following schedule and shall adhere to the required dates and times.

Activity Date

Request for Proposal Released July 31, 2026

Questions Due August 17, 2026, at 5:00pm

DCA Response Posted August 20, 2026

Proposals Due August 31, 2026, at 4:00pm

Review of the Proposals September 1 - 4, 2026 Five-day posting period of Intent to Award September 8 - 14, 2026

Contract Start Date October 15, 2026

It is the responsibility of the Proposer to ensure that their proposal is in the possession of the DCA Contracts Unit by August 31, 2026, at 4:00pm. All dates after proposal submission are approximate and may be adjusted as conditions arise, without addendum to this RFP.

* RFP is available to prospective Bidders via the eProcurement System webpage (formerly the California State Contracts Register) at https://caleprocure.ca.gov/pages/index.aspx.

Proposers must register with Cal eProcure to receive addendums that may be issued, or for submittal of questions and to receive answers.

IX. Fiscal Limits

The estimated dollar amount available to support this service for the entire time period is $280,000.

https://caleprocure.ca.gov/pages/index.aspx

X. Written Questions Regarding the RFP

Proposers requiring clarification of the intent or content relating to RFP No. IAO-26-01 or procedural matters regarding the competitive proposal process may request clarification by submitting questions in writing via email to jennifer.martineau@dca.ca.gov. To ensure a response, questions must be received in writing by the scheduled date(s) given in Article VII.A, Time Schedule. Inquiries received after the question submittal deadline will only be addressed at DCA’s discretion. ALL QUESTIONS MUST BE SUBMITTED IN WRITING BY

EMAIL AS INSTRUCTED.

On August 20, 2026, all these questions and their responses will be transmitted to Proposers by way of an addendum in Cal eProcure. The source of each question will not be indicated. Proposers should notify the Contract Administrator immediately if they need clarification about the services being sought or have questions about the RFP. Note: it is the responsibility of the proposer to check Cal eProcure for questions and/or changes within the RFP as all questions, answers, and addendums will be posted.

DCA/IAO will not be held responsible for inaccurate proposals due to proposer’s oversight in reviewing any and all information via Cal eProcure.

XI. Addenda

DCA may modify RFP No. IAO-26-01, prior to the deadline for bid submission, by the issuance of an addendum. Any modifications to the RFP will be provided in writing, via a formal addendum, and posted on the Cal eProcure website. All Proposers registered in Cal eProcure will have access to view and download the addendum. Addenda will be numbered consecutively.

XII. Submission of Proposal

Each Proposer must submit a Technical Proposal that contains all of the required items listed below. Also refer to Attachment 1 – Required Attachments Checklist for attachments that must accompany the Technical Proposal and Article XIII., Project Scope for submittal details.

A. All proposals shall include the documents identified on the Attachment Checklist

(Attachment 1). Proposals not including the proper "required attachments" shall be deemed non-responsive. A non-responsive proposal is one that does not meet the basic proposal requirements.

B. The proposals must include a cover letter on the Proposer’s letterhead, which shall be considered an integral part of the proposal. The cover letter must include a statement agreeing to the requirements of the RFP and Attachment 12 (Exhibits A, B, C, D, and E).

If the Proposer is a Certified Small Business (SB) and/or Disabled Veteran Business Enterprise (DVBE), as described on Internet web site – https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List- Folder/Apply-for-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise, the Proposer shall indicate that on the proposal cover letter and submit a copy of a current Office of Small Business and DVBE Services (OSDS) certification approval letter or have a completed application on file with the State OSDS by 1:00 p.m. on the deadline for submission of proposal, and be verified by that office as an approvable application. The Proposer should not include any limiting statements in the cover letter https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Apply-for-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Apply-for-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise that would preclude the proposal from being held as an irrevocable offer until the anticipated contract start date of October 15, 2027.

The cover letter must be signed by the prospective Proposer. It may be signed by an authorized agent of the Proposer only if the agent is properly authorized by a power of attorney or equivalent document. Such authorization must be submitted with the proposal. The name of the individual signing the proposal must be typed immediately below the signature.

C. Table of Contents that includes a listing of any attachments, samples and appendices.

The table of contents must display appropriate page numbers for each item listed.

D. Executive Summary of no more than four (4) pages that summarizes the following:

1. Major strategies proposed in addressing the RFP objectives, risks, and opportunities identified in Article I., Purpose of Request for Proposal.

2. How and when the Proposer intends to implement these strategies (provide a timeline).

3. How the proposed project staff and proposed subcontractors have the organization, management capability and expertise to perform the tasks identified in Article XIII., Project Scope.

4. Titles, qualifications and number of staff and subcontractors that will be used.

5. Specific examples of past reviews of governmental and/or private industry audits and successful reforms recommended and implemented.

6. A plan of how the Proposer will integrate the work described in the RFP with current activities.

E. Scope of Project refer to Article XIII. Scope of Project.

F. Proposer References listing three (3) references for whom projects of a similar scope or nature were performed. (See Attachment 4)

G. The Proposer shall complete and sign the Proposal/Proposer Certification Sheet

(Attachment 2). An unsigned proposal may be rejected.

H. Cost Proposal (Attachment 11). The proposer must provide an hourly rate for the work to be performed.

I. Proposals should provide straightforward and concise descriptions of the Proposer’s ability to satisfy the requirements of this RFP. The proposal must be complete and accurate. Omissions, inaccuracies or misstatements will be sufficient cause for rejection of a proposal.

J. The proposal package should be prepared in the least complicated method. Originals and copies should be bound with binder-clips or staples (no covers, no spiral bindings, etc.). All pages in the proposal must be standard 8.5" x 11" paper, except charts, diagrams, etc., which may be foldouts. If foldouts are used, the folded size must fit within the 8.5" x 11" format. Double-sided printing is preferred. It is recommended that proposers use tabs or some type of divider system to clearly separate out the different parts of the proposal. Page numbers must be in the same page position throughout the proposal. It is the proposer’s responsibility to ensure that their proposal is submitted in a manner that enables the DCA to easily locate all response descriptions and exhibits for each requirement of this RFP.

K. All proposals must be received in the DCA Contracts Unit by 4:00 p.m., August 31, 2026. Proposals received after this date and time will not be considered.

L. The Proposer must submit an original proposal labeled “MASTER PROPOSAL”, five (5) exact copies, and one (1) non-bound copy of the proposal without tabs/dividers which is suitable for easy scanning. Proposals not submitted in a sealed envelope may be rejected. This sealed envelope includes the Cost Proposal.

M. The original proposal must be marked "MASTER PROPOSAL." If discrepancies are found between two or more copies of the proposal, the “MASTER PROPOSAL” will prevail over all others.

N. If discrepancies between sections or other errors are found in the “MASTER

PROPOSAL,” the State may reject the proposal. However, if not so rejected, the “MASTER PROPOSAL” will provide the basis for resolving such discrepancies. No erasures shall be permitted. Errors may be crossed out and corrections printed in ink or typewritten adjacent and must be initialed in ink by the person signing the proposal.

O. Proposals not received by the date and time specified will be rejected. Incomplete or late proposals will not be considered. DCA reserves the right to refuse all proposals.

All copies of proposals must be sealed in an envelope, clearly labeled “Proposal for Audit Assurance Services, RFP No. IAO-26-01, Attention: Jennifer Martineau – DO

NOT OPEN.”

Proposals shall be submitted Jennifer Martineau, Contracts Analyst HAND DELIVERED or Department of Consumer Affairs MAILED/OVERNIGHTED to Business Services Office, Contracts Unit the DCA Contracts Unit at: 1625 N. Market Blvd., Suite S-103 Sacramento, CA 95834

Neither the postmark on the proposal envelope nor receipt in the DCA’s mail room will constitute timely delivery. Any proposal received in the Contracts Unit after the date and time specified in the Time Schedule identified in Article VIII.A, Time Schedule, will not be considered. It is the State’s policy to make every effort to ensure that all proposals have been received and properly time stamped; however, Proposers are ultimately responsible for ensuring timely receipt of their proposal. Proposers may verify receipt of their proposal by contacting the person identified in the cover letter of this RFP.

P. A proposal may be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. DCA may reject any or all proposals and may waive any immaterial deviation in a proposal. DCA’s waiver of immaterial defect shall in no way modify the RFP document or excuse the Proposer from full compliance with all requirements if awarded the agreement.

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

R. The Proposer may modify a proposal after its submission by withdrawing the original proposal and resubmitting a new proposal prior to the proposal submission deadline.

Proposal modifications offered in any other manner, oral or written, will not be considered.

S. The Proposer may withdraw a proposal by submitting a written withdrawal request to

DCA, signed by the Proposer. The Proposer may thereafter submit a new proposal prior to the proposal submission deadline. Proposals may not be withdrawn without cause subsequent to proposal submission deadline.

T. DCA may modify the RFP prior to the date fixed for submission of proposals by the issuance of an addendum on the Cal eProcure website.

U. DCA reserves the right to reject all proposals.

V. Proposers are cautioned to not rely on DCA during the evaluation to discover and report to the Proposer any defects and errors in the submitted documents. Before submitting their documents, Proposers should carefully proof them for errors and adherence to the RFP requirements. More than one (1) proposal from an individual, firm, partnership, corporation or association under the same or different names, will not be considered.

Reasonable grounds for believing that any Proposer has submitted more than one proposal for the work contemplated herein will cause the rejection of all proposals submitted by that Proposer. If there is reason for believing that collusion exists among the Proposers, none of the participants involved will be considered in this or future procurements.

XIII. Scope of Project

The Proposer must agree to the performance of all tasks described herein. Any deviation from the tasks described in Article XIII, Scope of Project, will not be considered and will cause a proposal to be rejected. This RFP seeks proposals addressing five (5) main tasks:

Task 1 – Management Plan, Coordination and Communication with the IAO Task 2 – Monthly Reports and Invoicing Task 3 – Project Activities and Deliverables Task 4 – Review and Evaluation Task 5 – Audit Report

Task 1 – Management Plan, Coordination and Communications with IAO This section of the Technical Proposal must acknowledge the Proposer’s commitment to completing all the requirements specified below in Task 1 and must provide a description of the approach and methodology by which the bidder will accomplish all the associated subtasks and activities. The Technical Proposal must contain sufficient detail to convey the bidder’s knowledge of the subjects and skills necessary to successfully complete the project as stated in Task 1.

The successful Proposer that is awarded the contract shall coordinate communications with the IAO during the entire contract period. The successful Proposer shall provide timely and accurate communication and coordination with IAO Audit Chief, attend and provide minutes for required meetings, and adhere to the IAO Approval Schedule Requirements (See Task

1. – IAO Approval Schedule Requirements) for project deliverables. The Proposer’s proposal must include the following information to address Task 1 activities, which include but are not limited to the following subtasks.

1.1 Orientation Meeting

The Technical Proposal must include a detailed plan for conducting an orientation meeting that will occur within the first two weeks of the commencement of this contract. The Technical Proposal must ensure that all key personnel of the prime contractor and any subcontractor(s) including the management team (Project Manager, Fiscal Manager, and any other key personnel) task leaders, and significant subcontractors will meet in person with the IAO and Healing Art Boards for up to two hours, at a location (virtual or in-person) that is to be determined by the IAO.

The Technical Proposal must acknowledge and ensure that during the orientation meeting, the successful Proposer will review each task and subtask(s), the detailed narrative schedule and timeline (see Task 3.1) and staffing regarding the proposed method(s) for implementation of the contract as contained in the bidder’s Technical Proposal. The successful bidder must develop the meeting agenda in coordination with the IAO, take minutes, and, within five (5) working days after the meeting, submit the meeting minutes to the IAO by email for review and approval. The orientation meeting must address all tasks, including timelines, questions, and concerns about the implementation of the contract. The proposer must budget for this meeting and include all costs in the Cost Proposal.

1.2 Management Meetings

The Technical Proposal must include a plan to hold quarterly management meetings between the IAO and the successful Proposer’s Project Manager to review and discuss task implementation and status. The Technical Proposal must acknowledge and ensure that the successful Proposer’s key personnel, including staff and any proposed subcontractors, will be present and must attend, at the request of the IAO, the meetings as appropriate to the task. The meetings may be held either in person at the IAO headquarters in Sacramento, California, other agreed upon location, or may be conducted via teleconference at the IAO’s request. The successful Proposer must develop the meeting agenda in coordination with the IAO, take minutes, and, within five working days after the meeting, submit the meeting minutes to the IAO by email for review and approval. The agenda must include but is not limited to the status of all pending activities along with deadline, status, issue(s), and person(s) assigned to each activity. The bidder must budget for these meetings and include all costs in the cost proposal.

Task 2 – Monthly Reports and Invoices This section of the Technical Proposal must acknowledge the Proposer’s commitment to completing all the requirements specified below in Task 2 and must provide a description of the approach and methodology by which the Proposer will accomplish all the associated subtasks and activities. The Technical Proposal must contain sufficient detail to convey the Proposer’s knowledge of the subjects and skills necessary to successfully complete the project as stated in Task 2.

The Technical Proposal must acknowledge and ensure that the successful Proposer shall be responsible for a variety of activities related to reports, invoices, and adherence to the relative timelines. The Technical Proposal must include the following information to address Task 2 activities, which include the following subtasks.

2.1 Monthly Written Progress Reports

The Technical Proposal must include a detailed process for providing monthly written progress reports to the IAO. The Technical Proposal must ensure that, at a minimum, each monthly progress report includes: (1) task number and title; (2) description of tasks; (3) a report of activities completed and deliverables produced during the prior month; (4) an update of current or ongoing activities and the progress noted for each; (5) unanticipated outcomes or problems (as applicable); (6) root cause analysis of the problems (as applicable); (7) tasks planned for completion the following month; and (8) a detailed list of activities. The Technical Proposal must ensure that the monthly progress report will be submitted to the IAO for review and approval on the last Friday of each month for the month prior. The IAO will not approve invoices for payments on this contract without an approved monthly progress report.

The Technical Proposal must acknowledge and ensure that if a problem occurs, the successful proposer must notify the DCA Project Coordinator within one (1) working day, and submit a Root Cause Analysis Report as part of the monthly progress report within 30 calendar days after the incident.

The Technical Proposal must acknowledge and ensure that at a minimum, the Root Cause Analysis Report must address the following:

1. Identify the problem;

2. Evaluate the significance and impact of the problem;

3. Identify the root cause of the problem and the responsible party;

4. Recommend actions to prevent recurrence of this or similar problems;

5. Assign responsibility for developing and implementing corrective action;

6. Implement new process or quality controls as necessary;

7. Determine what to do with failed items/deliverables; and

8. Record permanent changes in process documentation.

The Technical Proposal must specify that the monthly progress reports will note progress on all tasks and activities and will be used as a basis for tracking progress and making improvements. The monthly progress reports must reflect all tasks specified in the corresponding monthly invoice and each monthly progress report must be used to determine approval for payment of the corresponding monthly invoice. Additionally, the original IAO approved monthly progress report must be signed by the successful Proposer's Project Manager and submitted to the IAO with the monthly invoice.

Task 3 – Project Activities and Deliverables This section of the Technical Proposal must acknowledge the Proposer’s commitment to completing all the requirements specified below in Task 3 and must provide a description of the approach and methodology by which the Proposer will accomplish all the associated subtasks and activities. The Technical Proposal must contain sufficient detail to convey the Proposer’s knowledge of the subjects and skills necessary to successfully complete the project as stated in Task 3.

The Technical Proposal must include a narrative schedule and timeline. The timeline will be used as a monitoring document to ensure timely completion of tasks as proposed by the successful bidder; the narrative schedule and timeline must include the following information.

3.1 Narrative Schedule and Timeline

The Technical Proposal must include a comprehensive audit plan to address all activities described under Task 4.

This section of the Technical Proposal must include a detailed narrative schedule and timeline that outlines, for all fiscal years and parts thereof, both by task/subtask and chronology, each activity to be performed for the entire contract term. The schedule and timeline must list all tasks, subtasks, activities, and deliverables to be performed in each fiscal year, or part thereof, as set forth in the RFP, Article XIII., Scope of Project. The chronological schedule and timeline must include proposed task/subtask initiation dates, completion dates, effort required, dependencies between deliverables and activities, and person(s) assigned, for each fiscal year covered under the proposed contract, or part thereof. The schedule and timeline will also serve as a monitoring document to ensure timely completion of tasks as proposed by the successful Proposer. The Technical Proposal’s comprehensive plan and schedule must be updated and maintained throughout the term of the contract.

Task 4 – Review and Evaluation This section of the Technical Proposal must acknowledge the Proposer’s commitment to completing all requirements specified in Task 4 and must provide a description of the approach and methodology by which the Proposer will accomplish all the associated subtasks and activities. The Proposer is expected to complete Audit Assurance Services conducted in accordance with the appropriate auditing standards. The Technical Proposal must contain sufficient detail to convey the bidder’s knowledge of the subjects and skills necessary to successfully complete the project as stated in Task 4.

The Technical proposal must describe in detail how the bidder proposes to do the following:

the report shall identify any material inadequacies, deficiencies, irregularities, or other non-compliance with the terms of Premier’s monitoring services that would interfere with the Healing Arts Boards’ mandate of public protection.

Specifically, the Proposer should review, evaluate, and analyze the diversion program activities conducted by Premier Health Group, LLC, as specified in the terms and conditions of Contract No. 110812, approved by DGS on December 9, 2024.

Moreover, the Proposer should provide detailed audit plans for ensuring that each of the following Uniform Standards have been audited in sufficient detail to provide audit assurances of operational performance, compliance and/or non-compliance with the Uniform Standards, and identify audit issues and audit recommendations:

The Proposer should make recommendations regarding the continuation of the programs and any changes or reforms required to ensure that individuals participating in the programs are appropriately monitored, and the public is protected from health care practitioners who are impaired due to alcohol or drug abuse or mental health or physical illness.

The Proposer should follow a statistically valid sample methodology for the Healing Arts Boards to ensure that audit findings will be extrapolated to the audit universe for each Board.

The Technical Proposal should identify areas of improvement and provide recommendations for identified compliance issues. The following Uniform Standards 1-16 identified below provide specific audit assurance services required from the Proposer:

4.1 Uniform Standard 1

The Technical Proposal should include the audit process to be used to validate that clinical diagnostic evaluations are conducted by licensed practitioners as required by Uniform Standard 1. The Proposer will demonstrate how their audit process will provide clear audit sampling and testing methodology to be used to ensure that audit findings and recommendations are accurate and factual for the Healing Arts Boards.

4.2 Uniform Standard 2

The Proposer should document and analyze the specific process used by Premier to temporarily remove a licensee from practice, in order to enable the licensee to undergo a clinical diagnostic evaluation and determine if the treatment recommended by the Premier evaluator and approved by the respective Healing Arts Board(s) is appropriate and applicable before the licensee is permitted to return to practice on a full-time or part-time basis.

4.3 Uniform Standard 3

The Proposer should document and analyze the specific requirements that govern the ability of the Healing Arts Boards to communicate with the licensee’s employer about the licensee’s status or condition. Specifically, the licensee shall provide to the Healing Arts Boards the names, physical addresses, mailing addresses, and telephone numbers of all employers and supervisors and shall give specific, written consent that the licensee authorizes the Healing Arts Boards and the employers and supervisors to communicate regarding the licensee’s work status, performance, and monitoring.

4.4 Uniform Standard 4

The Proposer should determine if Premier has effectively and efficiently implemented the standards governing all aspects of required testing, including, but not limited to, frequency of testing, randomicity, method of notice to the licensee, number of hours between the provision of notice and the test, standards for specimen collectors, procedures used by specimen collectors, the permissible locations of testing, whether the collection process must be observed by the collector, backup testing requirements when the licensee is on vacation or otherwise unavailable for local testing, requirements for the laboratory that analyzes the specimens, and the required maximum timeframe from the test to the receipt of the result of the test.

4.5 Uniform Standard 5

The Proposer should determine if Premier has effectively and efficiently implemented the standards governing all aspects of group meeting attendance requirements, including, but not limited to, required qualifications for group meeting facilitators, frequency of required meeting attendance, and methods of documenting and reporting attendance or nonattendance by licensees.

4.6 Uniform Standard 6

The Proposer should determine if Premier has effectively and efficiently implemented the standards used in determining whether inpatient, outpatient, or other type of treatment is necessary.

4.7 Uniform Standard 7

The Proposer should determine if Premier has effectively and efficiently implemented the standards required for conducting worksite monitoring, including, but not limited to, required qualifications of worksite monitors, required methods of monitoring by worksite monitors, and required reporting by worksite monitors. The Proposer should determine if the licensee completes the required consent forms and signs an agreement with the worksite monitor and the Healing Arts Boards to allow the Healing Arts Boards to communicate with the worksite monitor.

4.8 Uniform Standard 8

The Proposer should determine if Premier has effectively and efficiently implemented the standard procedures to be followed when a licensee tests positive for a banned substance.

This should include a review of the process followed when a licensee tests positive for a banned substance.

4.9 Uniform Standard 9

The Proposer should determine if Premier has effectively and efficiently implemented standard procedures to be followed when a licensee is confirmed to have ingested a banned substance.

4.10 Uniform Standard 10

The Proposer should determine if Premier has effectively and efficiently implemented specific consequences for major and minor violations. This will include analyzing the proper use of a “deferred prosecution” stipulation described in Section 1000 of the Penal Code, in which the licensee admits to self-abuse of drugs or alcohol and surrenders his or her license. That agreement is deferred by the agency until or unless licensee commits a major violation, in which case it is revived, and license is surrendered.

4.11 Uniform Standard 11

The Proposer should determine if Premier ensures that standard criteria that a licensee must meet in order to petition for return to practice on a full time basis are appropriately enforced as mandated.

4.12 Uniform Standard 12

The Proposer should determine if Premier ensures that standard criteria that a licensee must meet in order to petition for reinstatement of a full and unrestricted license are enforced.

4.13 Uniform Standard 13

The Proposer should determine if Premier immediately reports to the Healing Arts Boards any and all noncompliant providers or contractors that provide diversion services, including, but not limited to, specimen collectors, group meeting facilitators, and worksite monitors.

This should include an audit of the process used by Premier to identify and discontinue the use of providers or contractors that fail to provide effective or timely diversion services.

4.14 Uniform Standard14

The Proposer should determine if Premier provides effective and efficient diversion services, and the extent to which licensee participation in that program is kept confidential from the public. The audit should identify whether any confidential information has been inappropriately disclosed in violation, which includes but is not limited to whether a program participant’s licensing restrictions are a result of the licensee’s participation in a diversion program.

4.15 Uniform Standard 15

The Proposer should provide written confirmation that no conflict of interest exists that would compromise their ability to provide an independent unbiased audit report and audit assurance services for the California Recovery Program.

4.16 Uniform Standard 16

The Proposer should determine if Premier has effectively and efficiently developed and implemented the relevant and reliable annual report to each Healing Arts Board to assist each Healing Arts Board in reporting annually measurable criteria and standards to determine whether each Healing Arts Board’s method of dealing with substance-abusing licensees protects patients from harm and is effective in assisting its licensees in recovering from substance abuse in the long term.

Task 5 – Audit Report

In addition to auditing the SB 1441 Uniform Standards 1-16, the Proposer should:

5.1 Prepare and submit an initial written report to the DCA, IAO and the Healing Arts

Boards regarding the draft Auditor’s findings and conclusions no later than April 1, 2027, and a final written report no later than June 15, 2027.

5.2 As applicable, make oral reports as requested by DCA, the IAO, Healing Arts Boards or the Legislature. DCA will notify the Proposer via email of the time and date for any necessary oral reports.

5.3 Provide additional information to either DCA or the Legislature at the IAO’s discretion or at the request of either DCA or the Legislature.

5.4 Provide the Healing Arts Boards with an opportunity to reply or provide supplemental information to any data, statistical information, background information, statement(s) of fact(s), findings, issues, recommendations, or conclusions made in their reports to DCA, IAO or the Legislature with which the Healing Arts Boards may disagree.

XIV. Evaluation Process

Upon opening, each proposal will be checked for the presence or absence of required information in conformance with the submission requirements of this RFP. DCA will put each proposal through a process of evaluation to determine its responsiveness to DCA’s needs.

Proposals that contain false or misleading statements which do not support an attribute or condition claimed by the Proposer may be rejected. If, in the opinion of DCA, such information was intended to mislead DCA in its evaluation of the proposal, and the attribute, condition, or capability is a requirement of this RFP, it will be the basis for rejection of the proposal. Those proposals meeting the RFP requirements (pass/fail) will undergo a scored technical proposal evaluation. A committee made up of DCA-selected representatives (hereinafter referred to as the Evaluation Committee) will evaluate the proposals and, through consensus, will arrive at a single score for each of the evaluation criteria.

A. First Phase Evaluation – Intake & Compliance Review (Pass/Fail)

A pass/fail evaluation will be completed by DCA staff for each proposal. To pass this Phase I review, each Proposer must include the items listed on the Phase I Required Attachment Checklist (Attachment 1) and the mandatory conditions spelled out in the RFP, Articles XII and XIII. Any material deviation from the checklist may result in a fail score and the proposal will not be evaluated for Phase II. Proposers who pass Phase I by meeting this standard shall qualify to move on to Phase II.

B. Second Phase Evaluation – Technical Proposal Evaluation (Total Possible Score

100 Points)

All proposals passing Phase I will be submitted to the Phase II Evaluation Committee. The Phase II Evaluation Committee of not more than five (5) members will be comprised of representatives from DCA. The Evaluation Committee will conduct the evaluation of the technical proposal and the accompanying literature. The Evaluation Committee will evaluate each proposal for the pieces of information identified in Attachment 14.

XV. Final Selection and Award Process

A contract will be awarded to the Proposer who accumulates the highest final score. DCA reserves the right to reject any and all proposals and to waive informalities and minor irregularities in proposals received. In the event of a tie in the highest final score, a tiebreaker will be decided by a coin toss observed by witnesses. Affected Proposers will be invited to witness the coin toss. In the event of a precise tie of the final score of a certified SB or microbusiness and the final score of a certified DVBE, the contract must be awarded to the DVBE. (Gov. Code, § 14838, subd. (f).)

After the evaluation process has determined the Proposer who scored the highest total points, a “Notice of Intent to Award” to the proposed Contractor will be posted in the DCA First Floor Lobby at 1625 North Market Blvd., Sacramento, CA 95834, and on Cal eProcure five (5) working days prior to awarding the agreement. If no protests are received after five (5) business days, the “Notice of Award” will be posted.

XVI. Protest Procedures

If any Proposer, prior to the award of agreement, files a protest with the Department of General Services (DGS), Office of Legal Services, 707 Third Street, 7th Floor, Suite 7-330, West

Sacramento, CA 95605, OLSProtests@dgs.ca.gov and the Department of Consumer Affairs, Business Services Office, Contracts Unit, Attention: Jennifer Martineau 1625 North Market Blvd., S-103, Sacramento, CA 95834 on the grounds that the protesting Proposer would have been awarded the agreement had the DCA correctly applied the evaluation standard in the RFP or followed the evaluation and scoring methods in the RFP, the agreement shall not be awarded until either the protest has been withdrawn or the DGS has decided the matter. It is suggested that any protest be submitted by certified or registered mail. All protests must be made in writing, signed by an officer of the company or individual authorized to do so and submitted within five (5) working days of the State’s posting of its intent to award.

Within five (5) calendar working days after filing the initial protest, the protesting Proposer must file with the DGS, Office of Legal Services,…