RFP_II_10219132_Financial_Advisory_Services.pdf

STATE OF CALIFORNIA – CALIFORNIA NATURAL RESOURCES AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF WATER RESOURCES

715 P STREET, 7th FLOOR P.O. BOX 942836

SACRAMENTO, CA 94236-0001

Rev. 3-6-2026

REQUEST FOR PROPOSAL

SECONDARY

Notice to Prospective Firms

May 7, 2026

You are invited to review and respond to this Request for Proposal Secondary (RFP) number 10219132 for Financial Advisory Services. The anticipated term of this agreement is three (3) years with the option to renew for two additional one-year terms. In submitting your proposal, you must comply with these instructions.

Note that all agreements entered into with the Department of Water Resources, hereinafter referred to as the “State”, incorporates, by reference, the State’s General Terms and Conditions (GTC) and Contractor Certification Clauses (CCC) that may be viewed and downloaded at the Department of General Services (DGS) website:

https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List- Folder/Standard-Contract-Language

If you do not have Internet access, a hard copy can be provided by contacting the person listed below.

The CCC package contains clauses and conditions that may apply to your Agreement and to anyone doing business with the State of California. The Certification will be kept on file in a central location.

Inquiries regarding the processing of this proposal should be referred to Annie Cho at (916) 902-6108.

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

Sincerely, Jesse Cason Manager, California Energy Bond Office

Attachment(s) https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language

RFP No. 10219132

TABLE OF CONTENTS

Page Purpose and Description of Services 4 Proposing Firm Minimum Qualifications 4 Proposal Requirements and Information 4 Proposal Key Action Dates 4 Questions and Answers 5 Work Plan and Work Schedule/Technical Proposal 5 Cost Proposal Format and Requirements 5 Submission of Proposal 5 Proposal Evaluation and Selection Process 8 Tax Delinquent Status Verification 15 Generative Artificial Intelligence (GenAI) Disclosure 15 Notice of Intent to Award and Protest 16 Disposition of Proposals 16 Standard Conditions of Service 17 Payee Data Record (Std. 204) 17 Key Employee Policies and Guidelines Notice Acknowledgment (Consultants and Contractors) (DWR 9524a) 17

Economic Incentive Program 17 Small Business Program 18 Disabled Veteran Business Enterprise Program 20 Pending Small Business or Disabled Veteran Business Enterprise Certification Application 23 Proposal Checklist 24 Attachment I – Cost Proposal Worksheet 25 Attachment II – Proposal/Proposing Firm Certification Sheet 31 Proposal/Proposing firm Certification Sheet Instructions 32 Attachment III – Proposing firm References 33 Attachment IV – Darfur Contracting Act Certification 34 Attachment V – Generative Artificial Intelligence (Gen AI) Disclosure (DWR 9834) 35 Attachment VI – Bidder Certification of DVBE Participation (DWR 9526) 36 Attachment VII – DVBE Declaration (DGS PD 843) 37 Attachment VIII – Bidder Declaration (DGS PD 05-105) 38 Attachment IX – California Civil Rights Laws Attachment 39 Attachment X – Iran Contracting Act 40 Sample Contract – Standard Agreement (Std. 213) 41 Exhibit A – Scope of Work 42 Attachment 1 – Resumes 45

Exhibit B – Budget Detail and Payment Provisions 46 Exhibit C – General Terms and Conditions 47 Exhibit D – Special Terms and Conditions for Department of Water Resources – Over

$10,000 Standard Payable (DWR 9544) 48

Attachment 1 – Recycled Content Certification Form (DWR 9557) 51 Exhibit E – Additional Provisions 53 Attachment 1 – Travel and Per Diem (DWR 9580) 58

Attachment 2 – Standard Contract Provisions Regarding Political Reform Act Compliance 60

Attachment 3 – Protection of Confidential and Sensitive Information 61 Attachment 4 – Non-disclosure Certificate 63 Attachment 5 – Small Business Subcontractor Payment Certification (DWR 9683) 64

A. Purpose and Description of Services

The Contractor will provide financial advisory services to the Department of Water Resources (Department) in connection with the Department of Water Resources Electric Power Fund (EPF) program.

The EPF program, formerly the California Energy Resources Scheduling (CERS) program, was established January 17, 2001, when then-Governor Gray Davis issued an Emergency Proclamation in response to California’s 2000-2001 energy crisis. The Department was authorized to purchase power on behalf of the State’s three largest Investor-Owned Utilities’ (IOUs) customers to prevent rolling blackouts in the IOUs’ service territories. The Department immediately began purchasing power to meet the needs of the IOU customers. Assembly Bill 1X added Division 27 to the California Water Code, authorizing CERS to enter into long-term power contracts for IOU customers through December 31, 2002. In late 2002, the Department issued bonds totaling $11.3 billion to pay for the power it previously purchased and to establish operating and bond reserves to support the ongoing program.

Annual revenue requirements for allocation to the IOU's customers, with bond and power charges, were put in place to pay for bond and power costs. In 2015, the final power contract ended. In 2020, the remaining bonds were legally defeased. The EPF program is in the final wind-down with the focus on collecting amounts through litigation related to the 2000-2001 power crisis and returning excess cash to the IOU’s ratepayers.

The Contractor will assist the Department with the management, coordination and monitoring of all aspects of the Bond Portfolio and wind-down of the EPF program, including any regulatory or reporting requirements. The Contractor will assist the Department as necessary on any litigation related to the EPF program and/or Power Supply Bonds.

B. Proposing Firm Minimum Qualifications

1. Proposers and principal(s) assigned to the Department of Water Resources account shall have a minimum of five (5) years' experience providing financial advisory services to Government entities.

2. Staff assigned to the Department of Water Resources account shall have a minimum of three (3) years' experience providing financial advisory services to Government entities.

3. Proposers and principal(s) assigned to the Department of Water Resources account shall have a minimum of three (3) years' experience providing financial advisory services to power municipal issuers.

4. Proposers and principal(s) assigned to the Department of Water Resources account shall have a minimum of three (3) years' experience in support of regulatory rate filings at the California Public Utilities Commission (CPUC).

5. Proposers and principal(s) assigned to the Department of Water Resources account shall have a minimum of five (5) years' experience in preparing exhibits and presentations to government regulators and/or oversight bodies.

C. Proposal Requirements and Information

1. PROPOSAL KEY ACTION DATES

All proposing firms must adhere to the following time schedule.

RFP available to prospective proposing firms on Thursday, May 7, 2026 Technical questions must be submitted by Monday, May 18, 2026 at 8:00 AM

Answers to technical questions will be disseminated by Friday, May 22, 2026 at 8:00 AM Proposals must be received by Wednesday, June 3, 2026 at 1:00 PM Anticipated start date of agreement is August 2026

2. LOCATION WHERE WORK WILL BE PERFORMED:

Department of Water Resources

California Energy Bond Office 2033 Howe Avenue, Suite 220 Sacramento, California 95825

And

715 P Street, 6th Floor Sacramento, California 95814

Contractor’s Office

Teleworking is acceptable

3. QUESTIONS AND ANSWERS

Technical questions must be submitted in writing to annie.cho@water.ca.gov and received by DWR on or before 8:00 AM on Monday, May 18, 2026. DWR will provide answers in writing to all potential proposing firms by 8:00 AM on Friday, May 22, 2026.

4. WORK PLAN AND WORK SCHEDULE/TECHNICAL PROPOSAL REQUIREMENTS

The proposing firm will provide a work plan/work schedule describing the firm's qualifications and experience that demonstrate its capacity to provide the Scope of Work described in Exhibit A. The proposer will also provide resumes for all personnel which explain their titles, roles, responsibilities, and qualifications, assigned to the Department of Water Resources account.

5. COST PROPOSAL FORMAT AND REQUIREMENTS

The proposing firm will use the attached Cost Proposal Worksheet (Attachment 1) to provide their cost proposal. The Cost Proposal Worksheet will be submitted in the same envelope as the proposal.

6. SUBMISSION OF PROPOSAL

a. Proposals must be submitted by United States Postal Services (USPS) mail, hand delivery, United Parcel Service (UPS), express mail, or Federal Express to:

i. Proposals by USPS must be submitted to:

Attn: Annie Cho P.O. Box 942836

715 P Street Sacramento, California 94236-0001

ii. Proposals by hand delivery, must be submitted to Contract Specialist Annie Cho on or before Wednesday, June 3, 2026 at 1:00 PM. Please coordinate a day and time via phone

(916) 902-6108 or e-mail annie.cho@water.ca.gov.

iii. Proposals submitted by UPS, express mail, or Federal Express must be addressed to:

Contract Services Attn: Annie Cho

715 P Street

b. Proposals should provide straightforward and concise descriptions of the proposing firm’s ability to satisfy the requirements of this RFP.

c. If the proposal is made under a fictitious name or business title, the actual legal name of the proposing firm must be provided.

d. Due to limited storage space, the proposal package should be prepared using the least expensive method (i.e. cover page with staple in upper left-hand corner, no fancy bindings).

e. All proposals must include original signatures on the following documents: Proposal/Proposing firm Certification Sheet and any other documents specified in the Proposal Checklist.

f. Proposals not including the documents identified in the Proposal Checklist shall be deemed non-responsive and will be rejected.

g. All proposals are to be sent to DWR within the time frame indicated in the Time Schedule.

Proposals received after the due date and time will be returned unopened to the prospective proposing firm.

h. All proposals must be submitted under sealed cover. The sealed cover must contain all documents listed in the Proposal Checklist. The outside of the sealed cover must be plainly marked with the RFP title and number, must show your firm’s name and address, and must be marked with “DO NOT OPEN.”

i. Proposals not submitted under sealed cover will be rejected. A minimum of two signed proposals must be submitted. One proposal must be submitted in hardcopy. One proposal must be submitted in an electronic format (Word and/or PDF File) on a USB Drive. Both proposals must be signed and submitted in the same envelope. USB Drives can be returned at the request of the proposing firm once the solicitation is concluded.

j. Proposals not submitted under sealed cover will be rejected. A minimum of two original signed proposals must be submitted. Both proposals must be submitted in the same envelope.

k. Proposals must be submitted for the entire service described within the Scope of Work.

Deviations from the specifications will not be considered and will be cause for rejection of the proposal.

l. The State does not accept alternate language from a proposing firm. A proposal with such language will be considered a counter proposal and will be rejected. The State’s General Terms and Conditions (GTC) are not negotiable.

m. A proposal may be rejected if conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. The State may waive any immaterial deviation in a proposal.

The State's waiver of immaterial defect shall in no way modify the RFP document or excuse the proposing firm from full compliance with the objectives if awarded the Agreement.

n. Costs for developing proposals and preparation of award of the Agreement are entirely the responsibility of the proposing firm and shall not be chargeable to the State of California.

o. This RFP must be signed by an individual who is authorized to bind the proposing firm contractually. The signature must indicate the title or position that the individual holds in the firm. An unsigned proposal will be rejected.

p. A proposing firm may modify a proposal after its submission by withdrawal and resubmission before the proposal due date. Modification of a proposal offered in any other manner, oral or written, will not be considered.

q. A proposing firm may withdraw their proposal by submitting a written request to the State for its withdrawal, signed by the proposing firm or an agent authorized in accordance with paragraph p above. A proposing firm may thereafter submit a new proposal before the proposal submission deadline. Proposals may not be withdrawn after the proposal due date. Proposals received after the due date and time will be returned unopened to the prospective proposing firm.

r. DWR may modify the RFP prior to the date fixed for submission of proposals by the issuance of an Addendum to all parties who received a proposal package. This Addendum will also be posted on the State’s eProcurement website found at www.Cal eProcure.com.

s. If all proposals are too high, DWR is not required to award an Agreement.

t. The State may reject all proposals if deemed necessary.

u. The proposals submitted, including costs, will become public when DWR has completed its evaluation and announces the responsible proposer who has been given the highest score.

v. Proposing firms are cautioned not to rely on the State during the evaluation to discover and report all defects and errors in the proposal documents. Proposing firms should carefully proof read documents for errors and adherence to the RFP requirements prior to proposal submittal.

w. Where applicable, the proposing firm should carefully examine the worksite and specifications.

Proposing firm shall investigate the conditions, character, quality of surface, subsurface materials, or obstacles to be encountered. No additions to the Agreement amount will be made because of failure to thoroughly examine the worksite and specifications.

x. More than one 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 proposing firm has submitted more than one proposal for the work contemplated herein will cause the rejection of all proposals submitted by that proposing firm. If there is reason for believing that collusion exists among the proposing firm, none of the participants in such collusion will be considered in this or future procurements.

7. EVALUATION AND SELECTION PROCESS

a. The State will put each proposal through a process of evaluation to determine the responsiveness of proposing firms to the State's needs. The final selection will be made on the basis of the highest scoring proposal meeting the specifications.

http://www.bidsync.com/

b. Proposals containing false or misleading statements or providing references that do not support an attribute or condition claimed by the proposing firm may be rejected. If, in the opinion of the State, information was intended to mislead the State 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.

c. If there are tied proposals, DWR will draw straws to pick the winning proposing firm. The drawing will be witnessed and documented by two or more DWR employees.

d. The evaluation process will consist of three phases.

i. In Phase One, proposals are reviewed to ensure that all documentation has been submitted in compliance with the requirements of this RFP. DWR will review all of the following documents to determine that each is enclosed and properly completed. Failure to meet these administrative requirements shall cause a proposal to be deemed non-responsive and therefore ineligible for the next step of the RFP evaluation process.

1. Cost Proposal Worksheet (Attachment I)

2. Proposal/Proposer Certification Sheet (Attachment II)

3. References (Attachment III)

4. Darfur Contracting Certification (Attachment IV)

5. GenAI Disclosure (DWR 9834, Attachment V)

6. Bidder Declaration (GSPD 05-105, Attachment VIII)

7. California Civil Rights Laws (Attachment IX)

8. Iran Contracting Act (Attachment X)

9. Work Plan and Work Schedule/Technical Proposal

10. Resume for all Principals, Seniors, and Associates

11. Small Business Certification (when applicable)

12. Completion of DVBE compliance documentation or Completion of DVBE

Incentive documentation DWR 9526 (Attachment VI)

a) Bidder Certification of DVBE Participation-Page 2 of DWR 9526

(Attachment VI)

b) DVBE Declaration – DGS PD 843 (Attachment VII)

c) Bidder Declaration – DGS PD 05-105 (Attachment VIII)

d) DVBE Certification from DGS/OSDS

e) DWR SB/DVBE Program Manager’s Notification of Compliance (if obtained in advance)

ii. Phase Two will consist of an evaluation of the Work Plan and Work Schedule/Technical Proposal and Cost Proposal based on the criteria below.

Final Awarded Points for all Sections:

Points

Awarded Possible Points

70% Total Awarded for Written RFP (Part 1) 55 30% of

Cumulative Total Cost Proposal (Part 2)

CUMULATIVE TOTAL 79

Awarded Amounts

Section Points Awarded

Possible Points

55% Firm’s Qualifications and Experience 30

27% Staff Qualifications and Experience 15

18% Proposal Requirements 10

100%

Total Awarded for Written RFP

Phase Two Part 1 Evaluation Worksheet Firm’s Qualifications and Experience

Category Rating Criteria Points Awarded

Possible Points

Internal Organization, Size and Location

5-4 Demonstrates excellent reliability and availability of resources required to perform the scope of work

3-0 Demonstrates minimal reliability and availability of resources required to perform the scope of work

Utility Experience

5-4 Demonstrates extensive knowledge, and understanding in providing financial advisory services for utilities

3-2 Demonstrates significant knowledge, and

1-0 Demonstrates minimal knowledge, and

Financial Analysis and Advisory Services 5

5-4 Demonstrates extensive financial advisory experience and specialized knowledge for State of California Agencies

3-2 Demonstrates significant financial advisory experience and knowledge for State of California Agencies

1-0 Demonstrates minimal financial advisory experience and knowledge for State of California Agencies

Municipal Bond Issuance and Management Experience 5

5-4 Demonstrates extensive knowledge, ability, and resourcefulness in their ability to plan and execute a municipal bond issuance

3-2 Demonstrates significant knowledge, ability, and resourcefulness in their ability to plan and execute a municipal bond issuance

1-0 Demonstrates minimal knowledge, ability, and resourcefulness in their ability to plan and execute a municipal bond issuance

Experience in preparing exhibits and presentations to government regulators 5

5-4 Has extensive experience working with, and understanding of preparing exhibits and presentations to government regulators

3-2 Has significant experience working with, and

1-0 Has minimal experience working with, and

References 5

5-4 Provides required number of references and all references are excellent

3-2 Provides references and references are good to excellent

1-0 Provides references and references are satisfactory to good

Awarded 30

Staff’s Qualifications and Experience

Category Rating Criteria Points Awarded

Possible Points

Qualifications and Experience of Principal Staff

5-4 12 or more years providing services and analysis as detailed in the Scope of Work.

Significant experience working with CA State Agencies, Bond Rating Agencies and Financial Institutions

3-2 Between 10 and 12 years experience providing services and analysis as detailed in the Scope of Work. Some experience working with CA State Agencies, Bond Rating Agencies and Financial Institutions

1-0 Less than 10 years experience in providing services and analysis as detailed in the Scope of Work. Little to no experience in working with CA

Qualifications and Experience of Senior Staff 5

5-4 More than 7 years providing services and analysis as detailed in the Scope of Work.

Significant experience working with CA State

3-2 Between 7 and 5 years experience in providing

Work. Some experience working with CA State

1-0 Less than 5 years experience in providing

Work. Little to no experience in working with CA

Qualifications and Experience of Associate Staff 5

5-1 1 point per year of experience, up to 5, in providing services and analysis as detailed in the Scope of Work

Awarded 15

Proposal Requirements

Category Rating Criteria Points Awarded

Possible Points

Clarity and Organization of Proposal 5

5-4 Proposal is highly organized and information is unambiguous

3-2 Proposal is significantly organized and information is moderately ambiguous

1-0 Proposal is minimally organized and lacks clarity

Understanding of Work to be Performed 5

5-4 Demonstrates extensive knowledge and understanding of applicable information and has allocated appropriate level staff to each task in the Scope of Work

3-2 Demonstrates significant knowledge and understanding of applicable information and has allocated appropriate level staff to each task in the Scope of Work

1-0 Demonstrates minimal knowledge and understanding of applicable information and/or has not allocated appropriate level staff to each task in the Scope of Work

Awarded 10

The DWR Evaluation Team will score the submittals based on percentages for levels of quality for each scoring criterion. The percentages will then be translated to points based upon the weight for each particular factor. For example, under “Effective Timeframes,” if a proposing firm’s response is considered “Excellent,” it will receive 9 points (0.9 x 10). The same approach will be used for all categories, except the scoring of the Cost Proposal.

Percentage of maximum points Description

Non-Compliant 0%

Fails to address the component or the proposing firm does not describe any experience related to the component.

Poor 30%

Minimally addresses the section, but one or more major considerations of the component are not addressed, or so limited that it results in a low degree of confidence in the proposing firm’s response.

Fair 70%

The response addresses the section, but minor considerations may not be addressed. Acceptable degree of confidence in the proposing firm’s response.

Good 80%

The response fully addresses the section and provides a good quality solution. Good degree of confidence in the proposing firm’s response.

Excellent 90%

All considerations of the section are addressed with a high degree of confidence in the proposing firm’s response.

Outstanding 100%

All considerations of the section are addressed with the highest degree of confidence in the firm’s response or proposed solution. The response exceeds the requirements in providing a superior experience and creative approach.

Phase Two Part 2 Cost Proposal

Proposing firms shall submit their Cost Proposals on the attached Cost Proposal Worksheet (Attachment I). If no proposal contains a Cost Proposal, which in the opinion of DWR is a reasonable price, DWR is not required to award a contract (Public Contract Code section 10344(d)). Each firm’s Cost Proposal score will be based on the ratio of its total cost to the total cost associated with the lowest responsive proposal multiplied by the maximum number of cost points. The Cost Proposal score will be rounded to the nearest whole integer. An example of this calculation is shown below:

Lowest Firm’s Total Cost x 24 = Firm’s Cost Score Firm’s Total Cost

Cost Score Sample

Firm Total Cost

Proposal Calculation Cost Proposal Score

A $175,000 $100,000 (Firm B) X 24 $175,000 (Firm A) 14

B $100,000 $100,000 (Firm B) X 24 $100,000 (Firm B) 24

C $150,000 $100,000 (Firm B) X 24 $150,000 (Firm C) 16

iii. In Phase Three, Small Business (SB) Preferences and DVBE Incentive calculations will be completed as necessary prior to contract award. The application of the SB Preference and DVBE Incentives may result in the displacement of a previously high scoring firm.

1. Proposing firms that are SB certified by DGS/OSDS may receive a five percent (5.0%) preference calculation. The SB Preference will be calculated by factoring five percent (5.0%) of the highest scored points and adding those points to that of the certified SB.

Example: High Score: 95 points SB Score: 91 points

95 x 0.05 SB preference = 4.75 points

SB Score: 91 points SB Points: 4.75 points

95.75 points

In the example above, the SB would achieve a high point score and be in line for contract award.

2. The DVBE Program Incentive is applied during Phase Three and may result in the increase of a firm’s total points, placing them in line for award. Application of the DVBE Incentive is based on the number of total possible points specified.

The following example is based on 100 total possible points:

Confirmed DVBE Participation Possible Points Calculation

5.0% and Over 5.0% X 100 = 5 Points 4.0% - 4.99% inclusive 4.0% x 100 = 4 Points 3.0% - 3.99% inclusive 3.0% x 100 = 3 Points 2.0% - 2.99% inclusive 2.0% x 100 = 2 Points 1.0% - 1.99% inclusive 1.0% x 100 = 1 Point

a) Once all proposals are evaluated for the factors indicated under the

Rating/Scoring Criteria above, the DVBE Incentive will be calculated and those points will be factored into the total points of those firms with lower scores that have identified DVBE participation levels as outlined in the above table. The points applied may result in a firm achieving high points placing them in line for the solicitation award.

b) A SB firm may be displaced by another firm achieving higher points as a result of the DVBE Incentive application.

c) An Evaluation Committee shall conduct the scoring and review the results submitted.

d) Only firms that are certified as an SB by DGS/OSDS, receive a five percent

(5.0%) preference. The preference is applied by the Department before the contract is awarded.

3. DVBE Incentive Application – Allowable Incentive Amounts

a) When the DVBE program is a required component of the solicitation, the minimum acceptable commitment level is three percent (3.0%). Incentive amounts applied begin at three percent (3.0%) and will not exceed five percent (5.0%).

b) When the Department waives DVBE program compliance from a solicitation, a responding firm’s DVBE participation is optional. Firms proposing DVBE participation are eligible to receive a DVBE incentive calculation from one (1) to five percent (5.0%). The incentive applied will be at the level of proposed DVBE commitment.

Example scale using high score method:

Available points example using sliding scale:

Administrative: 200 points Technical proposal: 400 points Cost proposal: 600 points Total: 1200 points

In the example above, there are 60 maximum DVBE Incentive points possible.

Example results using high score method:

Proposing Firm A B C Responsive/Responsible Yes Yes Yes

Total Points 1050 1155 1125

Eligible Preference SB None SB SB Preference points achieved 57.75 0 57.75

Points Subtotal 1107.75 1155 1182.75

Rank 3 2 1

DVBE Participation No (0%) Yes (5.0%) Yes (2.0%)

Incentive Points Applied None 60 24

Adjusted Points 1107.75 1215 1206.75

New Rank 3 1 2

4. Order of Evaluation

a) SB Preference is calculated by multiplying the highest total points achieved by 5% and adding the resulting calculation to the total points of the SB firm.

Confirmed DVBE Participation Possible Points Calculation:

1.0% - 1.99% inclusive 1.0% X 1200 = 12 2.0% - 2.99% inclusive 2.0.0% X 1200 = 24 3.0% - 3.99% inclusive 3.0% X 1200 = 36 4.0% - 4.99% inclusive 4.0% X 1200 = 48 5.0% and Higher 5.0% X 1200 = 60

In this sample the calculation was based on 1155 points x .05 resulting in

57.75 additional points added to the certified SBs (A and C).

b) DVBE Incentive Points are factored by multiplying the DVBE participation (%) identified by the total possible points that could be awarded (1200). This amount is then added to the firm’s total points. In the sample above, Firm B had 60 additional points added (.05% x 1200 total points available) to their total points placing them first for award. Firm C received 24 Incentive points, but this was not enough to place them first for award.

c) Under the High Score Method, it is possible to displace a high point Certified

SB with the Application of the DVBE Incentive.

8. TAX DELINQUENT STATUS VERIFICATION

a. Effective July 1, 2012 Public Contract Code 10295.4, requires state agencies to verify the tax delinquent status of bidders responding to state solicitations.

b. At the time of bid evaluation, prior to contract award and execution, the State will verify all proposing firms and identified subcontractors as not listed as tax delinquent by the Franchise Tax Board and the California Department of Tax and Fee Administration. Any proposing firms or subcontractor listed as tax delinquent shall result in a proposal rejection and will not be considered for contract award. Proposing firms wanting further clarification can refer to the statute above or to the web sites listed below for additional information.

California Department of Tax and Fee Administration – Top 500 Sales Tax and Use Delinquencies in California https://www.cdtfa.ca.gov/taxes-and-fees/top500.htm Franchise Tax Board – Top 500 Delinquent Tax Payers https://www.ftb.ca.gov/about-ftb/newsroom/top-500-past-due-balances/index.html

9. GENERATIVE ARTIFICIAL INTELLIGENCE (GEN AI) DISCLOSURE

a. The State of California seeks to realize the potential benefits of GenAI, through the development and deployment of GenAI tools, while balancing the risks of these new technologies.

b. Proposer / Offeror must notify the State in writing if it: (1) intends to provide GenAI as a deliverable to the State; or (2), intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (i) functionality of a State system, (ii) risk to the State, or (iii) Contract performance. For avoidance of doubt, the term “materially impacts” shall have the meaning set forth in State Administrative Manual (SAM) §

4986.2 Definitions for GenAI.

c. Failure to report GenAI to the State may result in disqualification. The State reserves the right to seek any and all relief to which it may be entitled to as a result of such non-disclosure.

d. Upon notification by a Proposer / Offeror of GenAI as required, the State reserves the right to incorporate GenAI Special Provisions into the final contract or reject bids/offers that present an unacceptable level of risk to the State.

e. Government Code 11549.64 defines “Generative Artificial Intelligence (GenAI)” as an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system’s training data.

http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=10295.4.&lawCode=PCC https://www.cdtfa.ca.gov/taxes-and-fees/top500.htm https://www.ftb.ca.gov/about-ftb/newsroom/top-500-past-due-balances/index.html

10. NOTICE OF INTENT TO AWARD AND PROTEST

a. A Notice of Intent to Award will be posted on Cal eProcure for five (5) business days. All proposing entities will be officially notified via Cal eProcure that the Notice of Intent to Award is posted.

b. Public inspection of all proposals and score sheets will be allowed after the Notice of Intent to Award has been posted.

c. Contracts shall be awarded only after a Notice of Intent to Award has been posted in a place accessible by the general public, including any internet site identified in this RFP, for five (5) business days.

d. Prior to the award, a proposing firm who claims he/she would have been eligible for the award of the contract, may protest the proposed award if DWR had scored his or her proposal correctly or if DWR had correctly followed the procedures specified in the Public Contract Code.

e. A protestant must meet the burden of proof that DWR has committed a material error in the conduct of the proposal award process.

f. Within five business days of filing the protest, the protestant must submit a detailed written statement of protest if the original protest did not contain the complete grounds for the protest.

g. Both the original protest and/or the detailed statement of protest, if any, must include the RFP number, the name of the State Agency involved, agency contact person, and protestant’s fax number, if any.

h. The protest documents may be sent by regular mail, email, courier, or personal delivery to:

Department of General Services Office of Legal Services

Attention: Bid Protest Coordinator 707 Third Street, 7th Floor, Suite 7-330

West Sacramento, CA 95605 Bid Protest Coordinator Email address: OLSProtests@dgs.ca.gov

AND

Contract Specialist Email Address: annie.cho@water.ca.gov

Upon receipt of the protest, Department of General Services (DGS) shall send the protestant an acknowledgement letter and thereafter communicate with the parties regarding further disposition of the protest.

11. DISPOSITION OF PROPOSALS

Upon proposal opening, all documents submitted in response to this RFP will become the property of the State of California and will be regarded as public records under the California Public Records Act (Government Code Section 7920 et seq.) and are subject to review by the public. The State cannot prevent the disclosure of public documents. However, the contents of all proposals, draft proposals, correspondence, agenda, memoranda, working papers, or any other medium that discloses any aspect of a proposing firm’s proposal, shall be held in the strictest confidence until the Notice of Intent to Award is posted. Proposals may be returned at the request and expense of the proposing firm.

mailto:OLSProtests@dgs.ca.gov

D. Standard Conditions of Service

1. Service(s) shall not commence until the Agreement is fully executed and all approvals have been obtained.

2. All performance under the Agreement shall be completed on or before the termination date of the Agreement unless this Agreement is amended to extend the term.

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

E. Payee Data Record

1. The Contractor awarded this Agreement must have completed and submitted form STD 204, Payee Data Record, to determine if the Contractor is subject to a seven percent (7.0%) State Income Tax withholding pursuant to California Revenue and Taxation Code Sections 18662, 18805, and 26131.

2. No payment shall be made unless the Payee Data Record form has been completed and returned to DWR.

F. Key Employee Policies and Guidelines Notice Acknowledgment (Consultants and Contactors)

The selected contractor awarded this Agreement must complete and submit the form DWR 9524a, Key Employee Policies and Guidelines Notice Acknowledgment, These policies and guidelines communicate expectations for contractors. Every contractor or subcontractors employee is expected to read and understand the material contained within. Primary contractor/subcontractors are responsible to ensure that their employees are aware of and adhere to the policies and guidelines.

G. Economic Incentive Program

Proposing firms may be eligible for additional preferences when their place of business is located within certain economic regions and when they hire persons living and working within those economic regions. Please access the following links to read information about this economic incentive program.

CONTRACT PREFERENCE

This solicitation contains Target Area Contract Preference Act (TACPA) preference request forms.

Please carefully review the forms and requirements. Proposers are not required to apply for these preferences. Denial of the TACPA preference request is not a basis for rejection of the bid.

The State as part of its evaluation process reserves the right to verify, validate, and clarify all information contained in the bid. This may include, but is not limited to, information from proposers, manufacturers, subcontractors and any other sources available at the time of the bid evaluation. Bidder refusal to agree to and/or comply with these terms, or failure to provide additional supporting information at the State's request may result in denial of preference requested.

Contracts awarded with applied preferences will be monitored throughout the life of the contract for compliance with statutory, regulatory, and contractual requirements. The State will take appropriate corrective action and apply sanctions as necessary to enforce preference programs. Links to forms and contact information are below.

• TACPA Preference Request (STD 830)

• Manufacturer’s Summary of Contract Activities and Labor Hours (DGS PD 525) https://www.dgs.ca.gov/PD/Search-Results?search=830&topicCategoryFilters=&divisionid=7bce8ca3ed8a4aedbdeaf52f5e77df36&audienceCategoryFilters=&contenttype=&sort=relevance&eventCategoryFilters=&resourceCategoryFilters=&serviceCategoryFilters=&activeFilters=&page=1 https://www.dgs.ca.gov/PD/Search-Results?search=525&topicCategoryFilters=&divisionid=7bce8ca3ed8a4aedbdeaf52f5e77df36&audienceCategoryFilters=&contenttype=&sort=relevance&eventCategoryFilters=&resourceCategoryFilters=&serviceCategoryFilters=&activeFilters=&page=1

• Bidder’s Summary of Contract Activities and Labor (DGS PD 526)

Any questions regarding the TACPA preference should be directed to DGS, Procurement Division at

(916) 375-4609 or TACPA@dgs.ca.gov.

H. Small Business Preference Programs

1. The Small Business Procurement and Contract Act (Government Code (GC) Section 14838 et.

seq.) requires that a fair share of the State’s purchases and contracts for goods, information technology services and construction be placed with a certified SB or micro-business (MB). The Act mandates that state agencies:

a. Establish participation goals,

b. Provide a five percent (5.0%) SB calculation preference, and

c. Provide the opportunity for proposing firms to receive a five percent (5.0%) non-small business (NSB) calculation preference when achieving tenty-five percent (25.0%) SB participation through subcontracted efforts.

Proposing firm which is awarded the contract is committed to paying the stated percentage of the total contract amount (including contract amendments) to the SB subcontractor as declared on form DGS PD 05-105. SB proposers and subcontractors must be certified by DGS/OSDS to participate in SB Preference program.

2. SMALL BUSINESS PREFERENCE

The SB Preference provides certified SBs and MBs a calculation preference in the amount of five percent (5%) of the highest scored responsible and responsive proposal submitted by a proposing firm who is not a certified SB. The SB Preference is used as a calculation for determining the highest score and does not affect the actual price proposed.

The awarding department grants a certified SB a five percent (5%) SB Preference on a proposal evaluation when a responsible NSB has submitted the highest scored, responsive proposal pursuant to the evaluation solicitation method identified in a the proposal and the certified SB:

a. Includes in its bid a notification to the awarding department that it is a SB or that it has submitted to the DGS OSDS a complete application no later than 5:00 p.m. on the bid due date, and is subsequently certified by the Department of General Services as an SB; and

b. Submits a timely, responsive bid; and

c. Has been determined to be a responsible proposer.

3. NON-SMALL BUSINESS PREFERENCE

The NSB Preference calculation may be applied when:

a. A responsible NSB has agreed to subcontract a minimum of 25% of the net price proposed with a certified SB,

b. The NSB firm is not the highest scored firm, and

c. The firm has submitted a responsive proposal.

NSB firms will be granted a five percent (5%) NSB Preference on a proposal evaluation by the awarding department if a responsible NSB has been ranked as the highest scored proposal pursuant to the evaluation of the solicitation under the following conditions:

https://www.dgs.ca.gov/PD/Search-Results?search=526&topicCategoryFilters=&divisionid=7bce8ca3ed8a4aedbdeaf52f5e77df36&audienceCategoryFilters=&contenttype=&sort=relevance&eventCategoryFilters=&resourceCategoryFilters=&serviceCategoryFilters=&activeFilters=&page=1 mailto:TACPA@dgs.ca.gov https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=14838.&lawCode=GOV https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=14838.&lawCode=GOV

a. The NSB firm has included in its bid a notification to the awarding department that it commits to subcontract at least twenty-five percent (25%) of its net bid price with one or more DGS/OSDS certified SBs; and

b. The NSB firm has submitted a timely, responsive bid; and

c. The NSB firm is determined to be a responsible proposer; and

d. The NSB firm identifies DGS/OSDS certified SBs it commits to subcontract with on required form DGS PD 05-105, Attachment VIII, of the DGS/OSDS certified SB subcontractor(s) with which it commits to subcontract a total of at least twenty-five percent (25.0%) of its net proposal price with one or more OSDS certified SB(s).

4. NON-SMALL BUSINESS PREFERENCE CALCULATION

The NSB calculation preference five percent (5.0%) is used for bid evaluation purposes when there is at least one competing NSB subcontracting at least twenty-five percent (25.0%) of its net price proposed to one or more certified SBs, and award of the contract is made on the basis of the highest scored responsive, responsible bidder. The preference shall be computed as follows:

Firm A - High Score: 1250 Points – Not a certified small business firm Firm B - Non-SB Proposal: 1195 Points – Prime firm includes 25% to certified

SB subcontractor participation

Preference Calculation: 1250 x .05 (5%) = 62.50

Firm B Non-SB Bidder Bid: 1195.00 Calculated preference +62.50

1257.50 points

Award is made to Firm B as the highest scored firm with 1257.50 points.

5. TIES BETWEEN CERTIFIED SMALL BUSINESSES AND DVBE BUSINESSES

In the event of a precise tie between the proposal score of an SB and the proposal score of a DVBE, the award shall go to the DVBE that is also an SB.

6. MAXIMUM ALLOWABLE PREFERENCES

In no event shall the amount of the SB or NSB subcontractor preferences awarded on a single proposal exceed $50,000, and in no event shall the combined cost of the SB or NSB subcontractor preference and preferences awarded pursuant to any other provision of law exceed $100,000. The five percent (5.0%) calculation preference is used for computation purposes only and does not alter or affect the actual proposal price or the amount of the executed contract. When a certified SB is responsive, responsible, and the highest scored firm, there is no need to compute the SB Preference as the SB is already the highest scoring firm.

7. COMMERCIALLY USEFUL FUNCTION (SBs) (Government Code (GC) section 14837(d) (4))

A certified SB, micro-business (MB) contractor, subcontractor or supplier, must meet commercially useful function (CUF) requirements under Government Code (GC) section 14837(d) (4). Selected firms must perform a CUF relevant to this contract.

The term “small business contractor, subcontractor or supplier” means any person or entity that satisfies the ownership (or management) and control requirements in accordance with GC section 14837(d) (4) and provides services or goods that contribute to the fulfillment of the contract https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=14837.&lawCode=GOV https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=14837.&lawCode=GOV https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=14837.&lawCode=GOV https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=14837.&lawCode=GOV requirements by performing a CUF. A person or an entity is deemed to perform a CUF if that person or entity does all of the following:

a. Is responsible for the execution of a distinct element of the work of the contract.

b. Carries out contractual obligations by actually performing, managing, or supervising the work involved.

c. Performs work that is normal for its business services and functions.

d. Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.

e. Is responsible, with respect to produces, inventories, materials, and supplies required for the contract, for negotiating price, determining quality and quantity, ordering, installing, and, if applicable, making payment

f. Its role is not an extra participant in the transaction, contract or project through which funds are passed in order to obtain the appearance of DVBE participation.

8. PROPOSING FIRM CUF REQUIREMENTS

The Department will determine, to the best of its ability, that your firm meets the criteria above for CUF. In responding to this solicitation, you are confirming that, under GC 14837 (d)(4) above, your business provides goods and/or services meet the definition of CUF. All proposing firms are required to provide CUF documentation using Attachment VIII, Bidder Declaration form DGS PD 05- 105, included in the solicitation document. When completing the declaration, proposing firms must identify all subcontractors proposed for participation in the contract. Any proposing firm awarded a contract is contractually obligated to use the subcontractor for the corresponding work defined unless the State agrees to a substitution.

I. Disabled Veteran Business Enterprise Program

Solicitation is Exempt from DVBE Program Participation The Department of Water Resources has exempted DVBE Program requirements for this solicitation.

However, for those firms voluntarily utilizing DVBE subcontractors, California Code of Regulations (CCR) 1896.99.100, the California DVBE Incentive provides responsive/responsible firms the opportunity to receive additional incentive calculations which DWR has determined to be a minimum participation commitment of three percent (3.0%). The incentive is applied at the time of solicitation cost evaluation when a bidder has identified a California-certified DVBE subcontractor to provide services or commodities in support of the overall contract effort. Application of the DVBE Incentive may not displace a certified small business low proposer.

Please refer to the following forms for program documentation and compliance:

1. DWR 9526, Attachment VI (Bidder Certification of DVBE Participation)

2. DGS PD 843, Attachment VII (DVBE Declarations)

3. DGS PD 05-105, Attachment VIII (Bidder Declaration)

4. DGS/OSDS Certification(s) for bidder and/or subcontractor(s). Proposer and/or subcontractors must be certified by DGS/OSDS to apply for DVBE incentive DVBE Incentive is as follows:

DVBE Participation Incentive Percentage (%) 5.0% or over 5.0%

4.0% to 4.99% 4.0% 3.0% to 3.99% 3.0% 2.0% to 2.99% 2.0% https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=14837&lawCode=GOV https://govt.westlaw.com/calregs/Document/IB12922901BF311EE8DA6DAFA82226BB2?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)&bhcp=1 https://govt.westlaw.com/calregs/Document/IB12922901BF311EE8DA6DAFA82226BB2?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)&bhcp=1

1.0% to 1.99% 1.0%

If you need assistance with finding a certified DVBE subcontractor, you can contact California Department of Veterans Affairs (CalVet) DVBE Program

- https://www.calvet.ca.gov/contact o Phone Number: 800-952-5626 o Email: DVBE@calvet.ca.gov

You can also do a certified vendor search on Cal eProcure:

https://caleprocure.ca.gov/pages/PublicSearch/supplier-search.aspx?psNewWin=true

1. DWR SB/DVBE PROGRAM MANAGER PRE-REVIEW OF DVBE DOCUMENTATION

The Department’s SB/DVBE Program Manager offers a pre-review of a proposing firm’s DVBE documentation prior to proposal submission. Since non-compliance with the DVBE program is immediate cause for rejection, the State strongly recommends firms interested in submitting a proposal, take advantage of this opportunity to ensure they are fully compliant with DVBE Program participation requirements.

Proposing firms should allow at least five (5) working days for pre-review of their DVBE documentation and submit them to the following:

SB/DVBE Program Manager Email: SB.DVBE@water.ca.gov

Upon satisfactory review of the proposing firm’s DVBE documentation, the DWR SB/DVBE Program Manager issues a Notification of Compliance which the proposing firm will submit with their proposal submittal.

2. DVBE INCENTIVE PROGRAM FOR RFP SECONDARY

Under CCR 1896.99.100, the California DVBE Incentive provides responsive and responsible firms the opportunity to receive additional incentive calculations. The incentive is applied at the time of solicitation evaluation when a proposing firm selects a California-certified DVBE subcontractor to provide services or commodities in support of the overall contract effort. Application of the DVBE Incentive may place the proposing firm in line for contract award.

The following are key elements of the DVBE Incentive Program:

a. The DVBE Incentive is applied during the evaluation process and is only applied to responsive proposals from responsible firms proposing the percentage(s) of DVBE participation for the incentive(s) specified in the solicitation.

b. DVBE Incentive participation is at the discretion of the proposing firm and is optional when overall DVBE Program requirements are exempt by the Department for that solicitation.

c. When requesting the DVBE Incentive application, proposing firms must complete and return the DVBE Incentive Application Request included within this solicitation…