RFP_###_-_Internal_Audit_Services_-_Draft_03.27.2025.docx

Ontario International Airport flyontario.com

REQUEST FOR PROPOSALS (RFP #210012)

INTERNAL AUDIT SERVICES

ONTARIO INTERNATIONAL AIRPORT AUTHORITY

RFP publication date: September 29, 2021TBD

Non-Mandatory Pre-Proposal Meeting: Monday, October 4, 2021, 10:00 a.m. (PDT)TBD

Last day to submit questions: Wednesday, October 6, 2021, 5:00 p.m. (PDT)TBD

RFPs due: Tuesday, October 12, 2021, 5:00 p.m. (PDT)TBD

SECTION 1 – INTRODUCTION

1.1. Invitation

The Ontario International Airport Authority (OIAA or Authority) invites firms to prepare and submit qualifications that respond to this Request for Proposal (RFP) for internal audit services.

The Authority requires the services of a qualified certified public accounting firm licensed in the state of California to conduct internal audits of accounting and financial management; revenue and contract management; construction management; procurement and contract administration; information technology (IT) management operations and governance to include information security; physical security; and other functions essential to Airports Authority business.

The Internal Audit Department is an independent and objective assurance and consulting function that is guided by a philosophy of adding value and improving the operations of the Authority. The Internal Audit Department reports functionally to the Finance and Audit Committee of the Board of Directors and administratively to the Chief Executive Officer (CEO) and Senior Vice President and Chief Financial Officer (CFO). The Internal Audit Department assists the Authority in accomplishing its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the Airports Authority's governance, risk management, and internal controls.

The Authority's business arrangements with airlines and other revenue producers are complex. The quality and reliability of internal controls and financial reports of these businesses influences the ability of the Authority to be assured that correct revenues are received on time and that other contractual obligations are appropriately addressed. The Authority also relies on contractors to provide services including design and construction of new facilities and transit infrastructure; parking and concession operations; information technology services; security; facilities maintenance, public safety, and airfield operations. Periodic assessments of the quality and reliability of internal controls over revenue, equipment operators, and contract compliance and monitoring for suppliers and customers, are essential for effective Board and management oversight.

1.2. Procurement

The Authority intends to execute one professional services agreement with the firm that best demonstrates their qualifications and approach to providing the requested internal audit services that will be most able and available to serve OIAA in a consistent and efficient manner, as determined by a selection panel of OIAA representatives.

1.3. Contract Term

This agreement is for a partial year ending June 30, 20262, with two five 1-year extensions at the Authority’s option. Maximum annual amounts will be established based on organizational needs. The maximum annual amount for the partial year ending June 30, 20262, is $2100,000. For each Authority option year, an annual maximum will be established and authorized by the Board of Commissioners. Comment by Burnham, Stephanie: Celeste to confirm date and extension period.

The OIAA does not warrant or guarantee that the total contract amount will be reached or that any specific amount of work will be authorized during the term of the contract.

1.4. Non-Mandatory Pre-Proposal Meeting

A non-mandatory pre-proposal meeting will be held online using MS Teams on the date/time shown on the cover page of this RFP. Proposers may join by dialing +1 (747) 292-3087_________. The PIN to access the meeting is 457334101#.______. Proposers may also join through the following link: ___________ https://teams.microsoft.com/l/meetup-join/19%3ameeting_ZjQzZWI2ZGMtZTI2YS00M2I0LTliMTctODVlZjZhM2Q3OWIw%40thread.v2/0?context=%7b%22Tid%22%3a%22726bed49-7011-47d7-8024-49cdc0e9cae8%22%2c%22Oid%22%3a%2269be5406-019a-4aec-abad-7bfe2aa2f80d%22%7d

Upon entering the meeting, proposers must email 210012@flyONTario.com ________ to provide the attendee’s name, company name, telephone number and email address. This information will be used to create the pre-proposal meeting sign-in sheet.

SECTION 2 – BACKGROUND INFORMATION

The Ontario International Airport Authority (OIAA) is a joint-powers authority (JPA) formed between the City of Ontario and San Bernardino County in Southern California. The OIAA Commission consists of five appointed members. The OIAA is the owner and operator of Ontario International Airport (ONT).

ONT is a medium hub airport serving more than 7.15.5 million passengers per year and is a major air-cargo facility in Southern California, with more than 750,000793,000 tons being carried to and from the airport each year.

ONT currently has nonstop commercial jet service to 264 major airports in the U.S., Mexico, and Taiwan, and connecting service to many domestic and international destinations. There is with an average of 72 81 peak daily departures offered by nine air carriers. Starting this summer, ONT will be offering 29 nonstop destinations with 93 peak day departures.

FINANCE AND AUDIT COMMITTEE

In July of 2021 the Board of Commissioners established the standing committees of the Board, which included the Finance and Audit Committee. This committee is responsible for overseeing the annual financial statement audits, development and implementation of internal control policies and procedure, and the internal audit function. The Committee is managed by two authorized members of the Board of Commissioners.

INTERNAL AUDIT DEPARTMENT

The Internal Audit Department reports to the Finance and Audit Committee and is functionally independent of management. The Authority established the Internal Audit Department in July 2019 and suspended internal audit department services in January of 2020, with the intent to outsource the internal audit function for an unspecified period of time. As a consequence of the COVID-19 Pandemic, which began in March 2020, these outsourcing efforts were deferred. Recent OIAA operational and financial performance of the organization and the airport industry has allowed the Authority to begin reestablishing pre-pandemic functions and service levels, therefore Management has decided to reinstate plans to outsource the internal audit function.

In addition, the Authority has established a draft Internal Audit Charter which was prepared by the OIAA Finance Division and reviewed with the Committee in August 2021. The draft charter is attached to this proposal as Part D – Exhibits, D1 – OIAA Internal Audit Charter Draft.

ANNUAL AUDITS

The Authority engages a Certified Public Accounting firm licensed in the state of California to perform an annual audit of the Authority’s financial statements in accordance with Government Auditing Standards. In addition, the CPA firm issues separate reports on:

· Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

· Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by Uniform Guidance

· Compliance with Requirements Applicable to the Passenger Facility Charge Program, Internal Control Over Compliance in Accordance with the Passenger Facility Charge Audit Guide for Public Agencies and the Schedule of Passenger Facility Charge Revenues and Expenditures

· Compliance with Requirements Applicable to the Customer Facility Charge Program and Internal Control Over Compliance and Schedule of Customer Facility Charge Revenues and Expenditures Copies of the most recent audits are attached as Part D – Exhibits:

· D2 – OIAA Single Audit Reporting Package Final 6-30-21

· D3 – Ontario International Airport Authority CFC Report Final 3-31-21

· D4 – Ontario International Airport Authority PFC Report Final 03-31-21

ORGANIZATIONAL STRUCTURE

The Authority employees approximately 55 employees. Substantially all airfield operations, public safety and facility maintenance and repairs are performed through third-party contracts, including airfield management, land and facility maintenance and repairs, fuel farm operations, public safety (police, ARFF and dispatch) and auto parking operations. Land and facility management and fuel farm operations are performed by a Consortium of airlines that operate from the Ontario International Airport. Public safety and information technology are provided under a contract with the City of Ontario. A current organizational chart is attached as Part D – Exhibits, D5 – OIAA Organization Chart, which includes the relationship of third-party suppliers.

FINANCE DIVISION

In the absence of Internal Audit Department staffing, the Finance Division will work directly with the selected Firm to provide and or obtain information or access to OIAA staff, airlines, customers, tenants, suppliers, and contractors necessary to conduct each audit engagement. The Authority recognizes the inherent conflict in having the Finance Division take this lead role in facilitating the internal audit process. However, Finance Division management includes two Certified Public Accountants, with over 25 years of combined audit experience. The Authority deems this experience as the most critical factor in the absence of independent OIAA Internal Audit Department staff in facilitating Firm’s successful completion of each audit engagement. Any conflicts that arise from Finance Division’s relationship to the Firm’s internal audit services may be immediately directed to the Deputy Chief Executive Officer, a member of the Finance and Audit Committee or a member of the Board of Commissioners as the firm deems appropriate under the circumstances and as may be necessary to comply with the Firm’s professional standards.

The Finance Division includes the following functional departments, Financial Accounting and Reporting, Budget and Finance, Procurement, and Information Technology. The Division currently has ten employees. Information Technology services are contracted for through the City of Ontario, which provides four full-time staff and additional IT resources as necessary.

POLICIES AND PROCEDURES

The Authority has a limited number of Board adopted policies and procedures, many of which were instated during or shortly after the transfer of ONT from LAWA. It is the expectation, that internal audit work results and recommendations will lead to the amendment of, or establishment of policies and procedures consistent with these results and recommendations.

AVIATION AND BUSINESS ACTIVITIES

A myriad of complex business arrangements with the airlines, parking and ground transportation services, concessionaires and service contractors requires substantial review and monitoring to ensure that finance and business strategies are achieved. The Authority relies on these businesses to remit accurate revenue and expense data when due and to produce timely and accurate information about earnings and other contractual matters. Commercial carriers and concessionaires self-report activity-based data on a monthly basis. Some of this data is required to invoice customers, e.g., as landed weights for invoicing landing fees or gross sales to calculate commissions or privilege fees. In addition, certain statistical data is required to monitor operational performance and to complete required regulatory reporting obligations, e.g., passenger enplanement and landed weight data.

AIRLINE OPERATING USE AND LEASE AGREEMENT

Commercial passenger and cargo carrier operations at the Ontario International Airport are covered under an Operating Use and Lease Agreement (ULA) which, expires September 30, 2024. Airline carriers that participate in the agreement are referred to as Signatory Airlines. The agreement establishes financial commitments and responsibilities for Signatory Airlines to the Authority through the expiration of the agreement. This is a residual based agreement, which transfers financial risk for airport operations to the airlines and establishes formulas for the calculation of landing fees and terminal rents to support airside and terminal cost centers, respectively, as outlined in the agreement. In addition, the agreement establishes funding for financial reserves and authorization requirements for capital projects.

REVENUE

OPERATING REVENUES

AUTHORITY operating revenues fall into two major categories: Aeronautical and Nonaeronautical.

Aeronautical revenues include landing fees, land and facility rents and aviation fees. Landing fee rates are calculated annually on a residual basis in accordance with the ULA. Landing fees are charged to airlines for each landing at ONT based on the gross weight of the aircraft (in 1,000 lb. units) times the landing fee rate. Terminal rents are charged to commercial passenger carriers for terminal leased and common use space. Terminal rents are established on a residual basis in accordance with the ULA. Airline leased space is charged on a square footage basis. Common use space is calculated using an 80/20 formula that allocates common use space based on lease square footage and passenger deplanements.

Nonterminal rents and aviation fees (other than landing fees) are charged based on Rates and Charges schedule that is approved by the Board of Commissioners annually. Nonterminal aeronautical rents include land and facilities, e.g., aprons and hangars. Other aviation fees include per use fees for space and equipment, e.g., plane parking and jet bridge use.

Nonaeronautical revenues include land and facility rents and concessions. Nonaeronautical rents are for land and facilities that are not utilized for aviation activities, which includes rental cars and truck parking. Concession revenues are business related activities that are charged directly by the airport to the end-user or commission/privilege fees charged to third-parties that operate various businesses on airport. The largest end-user fee charged directly by the airport is for auto parking. Commission and privilege fees are based on contractually established percentages or per unit fees. Percentage based revenues are calculated on gross sales net of sales taxes, including rental cars, food and beverage and news and gifts, Ground transportation and advertising are examples of unit- based revenues, e.g., a pickup and drop off fee for transportation network companies like Lyft that operate at ONT.

Activity based revenues are calculated using customer self-reported data, including landed weights and gross sales.

GRANT AND OTHER TRANSACTION AGREEMENT REVENUES

The Authority receives federal funding for operations and capital projects through grants and Other Transaction Agreements (OTA). Prior to the COVID-19 Pandemic, federal funding for operations was limited to a small OTA for the TSA security checkpoint Law Enforcement Officer Reimbursement Program (LEORP). However, as part of various legislative funding authorized by the United States Government and passed through the Federal Aviation Administration the Authority received in excess of $50 million, that could be used for operational costs, approved capital expenditures and concessionaire rent relief. The Authority receives funding for Capital projects primarily through grants from the Federal Aviation Administration under the Airport Improvement Program (AIP). Funding is established through entitlement formulas and discretionary awards for approved projects.

INVESTMENTS

The Authority has a conservative investment policy, and currently is invested only in Local Area Investment Funds (LAIF) through the state of California.

CAPITAL EXPENDITURES

The Authority has a five-year Capital Improvement Plan (CIP) that provides for planning, design and construction for new and existing facilities and infrastructure, machinery and equipment and information technology. The program is funded from bond proceeds, passenger facility charges and grants. Completing construction projects on time and on budget is dependent on several factors including, but not limited to, the economy, financial soundness of the airlines using the Ontario International Airport, environmental site conditions, and the ability of management to coordinate interrelated contracts for design and construction as well as the availability of specialty contractors, supplies, and equipment. Capital projects are budgeted and approved annually in the year that project expenditures are first expected to be incurred.

DEBT

The authority issues debt periodically to finance capital projects at the airport. Most of this debt is in the form of Revenue Bonds issued through public offerings. The bonds may be taxable or tax-exempt depending on the underlying project. This debt requires the establishment of certain reserves and compliance with covenants in the Master and Supplemental Bond Indenture, the most substantive of which is the Debt Service Coverage Ratio.

EMPLOYEE BENEFIT PLANS

The Authority does not have any defined benefit plans but offers various defined contribution plans that have different employee and employer contribution rates. OIAA participates in the California Public Employees Retirement System health insurance plan, which has certain post-employment (OPEB) requirements to fund small post-employment insurance subsidies. These amounts are not currently material to the financial statements of the Authority.

SECTION 3 – SCOPE OF WORK

3.1. Resources

The selected firms or individuals will be expected to be available to complete internal audit services for the OIAA. Firm assignments will be developed individually (Task Order based) by OIAA in conjunction with the selected audit Firm. Individual task orders will be structured for the Firm to conduct internal audit work selected from areas identified in the Authority’s annual risk assessment. Each task order is a separate audit engagement.

DELIVERABLES

Task order deliverables will be negotiated at the start of each task order and will likely include:

1) Entrance and exit conferences with the Authority.

2) Detailed Audit Programs that conform with IIA Standards. These will be submitted to the Authority for approval as specified in each Task Order.

3) Estimated number of hours for each audit engagement.

4) Progress meetings or audit status reports as necessary to summarize preliminary results.

5) Draft and final audit reports with appropriate opinion, conclusions, and recommendations.

6) Copies of work papers and other work products necessary for the specific engagement. Originals may be retained by the selected Firm. Work papers will be printed at the firm's expense and delivered to the Internal Audit Department or other designee identified by the Finance and Audit Committee for retention by the Authority.

The selected firm will report to the Audit and Finance Committee at a minimum on a quarterly basis, although it is expected that initially more frequent reporting will be required given the absence of previous and current internal audit activities.

3.2. Anticipated Functions

When and as directed by the OIAA, the Firm’s services shall include, without limitations, the following scope of work:

The Authority requires the services of a qualified certified public accounting firm licensed in the State of California to conduct internal audits of accounting and financial management; construction management; procurement and contract administration; information technology (IT) management operations and governance to include information security; physical security; and other functions essential to the Authority’s business capabilities.

1) Assist in finalizing the draft Internal Audit Charter.

2) Conduct and prepare an annual organization risk assessment.

3) Preparation of an annual audit plan based on the annual risk assessment and priorities established by the Finance and Audit Committee.

4) Preparation of an audit program for each task order, as appropriate under the circumstances.

5) Perform audit tests, make inquiries and observations, and obtain sufficient evidence to meet the objectives of the task order.

6) Develop and implement transferrable internal audit policies, practices, and tools to facilitate transfer of some or all internal audit work to OIAA staff at a future date.

7) Coordinate internal audit services with the CPA firm performing the audit of the Authority’s financial statements.

8) Coordinate Authority tenants, customers and suppliers will be coordinated with individual companies.

The Authority reserves the right to amend the scope of work, as described above, and award select portions of the scope as the Authority desires. Any modifications to the scope, as described, will be negotiated prior to award of the OIAA agreement.

3.3. Project Delivery Method

OIAA anticipates entering into a contract with a minimum of one qualified firm(s) seeking the delivery schedule and number of hours (based on fixed loaded hourly rates in Section 5, 5.1, Overview, Subsection 4 – Proposed Fees) will be negotiated at the start of each task order engagement and will be included at the beginning of each fiscal year engagement letter to be signed by the audit firm and the Office of Audit. Once agreed, at the beginning of each fiscal year engagement letter will be incorporated into a task order issued by the contracting officer.

All Deliverables, data, findings, or information in any form prepared or provided by Contractor or provided to Contractor by the Authority under this Contract are property of the Authority, including all copyrights inherent in them or their preparation.

PROFESSIONAL STANDARDS

AUDITING STANDARDS TO BE FOLLOWED

Audits shall be performed using standards relevant to the specific audit engagement including:

· Generally Accepted Auditing Standards.

· Generally Accepted Governmental Auditing Standards as set forth by the Government Accountability Office.

ASSISTANCE TO BE PROVIDED TO THE FIRMS

Authority staff will be available during each engagement to assist firms by providing information and documents and by resolving any delays in acquiring documents from revenue producers and contractors. The Airport Authority will provide the firm with reasonable workspace, desks, chairs and access to a telephone line, photocopying, and a fax machine as necessary.

3.4. Key Staffing

The Firm shall provide qualified staffing. OIAA has identified the following likely services/team roles. However, the Proposal shall include a staffing organization chart identifying roles and responsibilities as recommended by the respondent.

SECTION 4 – QUALIFICATIONS

4.1. Organization Experience and Skill

a.) The selected Firm will be engaged in audits of OIAA, transactions, policies and procedures and internal controls. In addition, the Firm will be requested to perform audits of the Authority’s, airlines, tenants, and contractors in accordance with the provisions established in Authority contracts with these respective entities. An example of contract-imposed reporting, record keeping, and audit language has been included as Part D – Exhibits, D6 – Airline and Concessionaire Record Keeping and Audit Requirements.

Firms should have demonstrated experience in performing internal audits, in complex business environments within heavily regulated industries, preferably with an understanding of the complex nature of airports, airlines, terminals, amenities, concessions and more. The discussion of this experience should delineate between internal audit work directly related to client business transactions, processes, policies and compliance and audit work conducted on customers, suppliers, and contractors of the client.

4.2. Previous Performance

This RFP does not establish minimum experience requirements. However, the Authority is seeking firms that have airport industry and internal audit experience. Previous experience will be considered based on depth of experience, years, and quantity of internal audit work performance as well as similarity of work described in this RFP, including airport industry and audit areas previously performed.

4.3. Responsiveness

The firm must be prepared to mobilize staff and resources on short notice with tight timelines. As noted previously the Internal Audit Department has been vacant since January 2020 and there are significant audit areas that require immediate attention. Firms should demonstrate how they will service ONT in a responsive and dedicated manner, prioritizing time at ONT for various internal auditing efforts.

SECTION 5 – RFP CONTENT

5.1. Overview

The RFP shall consist of the following sections in the following order:

1) Cover Letter (1 Page)

The cover letter shall be signed by an officer of the Firm, should include the contact information including phone number and email address for the contact person, introduce the Firm and state any other information deemed essential by the respondent within the single page allotted. Also, include an acknowledgement that the Firm has reviewed the OIAA SBE program document on the airport website at www.flyONTario.com, and included as Part C, C1 – Small Business Element (SBE) Program, and will comply with all established policies as it relates to this solicitation.

2) Subsection 1 – Firm Overview (6 Pages)

The Firm overview section shall identify the lead firm and clarify the role and services provided. The section should describe prior experience working on similar assignments by the firm. This section should focus on recent experience relevant to this specific assignment at the Ontario International Airport.

The Respondent shall provide the following information:

A description of the Firm, including the number of Firm personnel, number of offices, local office locations and number of personnel, a breakdown of major areas of focus for the Firm, licensing and professional accreditations currently held by the Firm.

A copy of the Firm’s most recent report on System of Quality Control report should be included as an attachment to the respondent’s proposal.

A statement of the Firm’s Independence from the Ontario International Airport Authority.

3) Subsection 2 – Primary Staff (8 Pages)

The first page of this subsection shall provide information about how staff will be assigned to perform the work identified in this RFP and should include an explanation of how staff continuity will be maintained. Proposing firms will identify team leadership and key staff that will be most able and available to serve OIAA in a consistent and efficient manner.

Up to six additional pages shall be used to present brief biographies for each individual assigned to perform the work identified in the RFP, that includes the following information in the following format. Information provided should exclude staff photos and personal information.

· Name (employee name, assigned office city, state)

· Licensing and credentialing

· Assigned role(s)

· Years of professional experience

· Years with employer

· Education

· Other relevant experience and qualifications

4) Subsection 3 – Work Plan (10 Pages)

This section should focus on how work will be tailored to and impacted by airport industry business practices, regulatory compliance, current economic conditions, and the impact of COVID-19. An emphasis should be placed on the unique characteristics of the Ontario International Airport, including but not limited to the length of time that OIAA has operated ONT, the Strategic Plan adopted by the Board of Commissioners, organizational structure, and the results of recent audits.

The Authority wants to have a confident and thorough understanding of the respondent’s knowledge and experience.

5) Subsection 4 – Proposed Fees

Respondents to this RFP must submit a fixed loaded hourly rate schedule that establishes hourly rates for various levels of staff assigned for services performed.

The successful Proposer’s fixed, all-inclusive hourly rates will be included as an attachment to the Professional Services Agreement, Exhibit B – Compensation & Payment Schedule, (Part C, C2B). Fees are based on actual work performed. Subconsultant hourly rates, if applicable, will be requested prior to award of contract and shall not exceed the Prime Consultant’s hourly fees.

6) Subsection 5 – Subject Matter Competence (10 pages)

Respondents should demonstrate the Firm’s subject matter competence through a detailed discussion of how the firm intends to achieve the Core Principles for the Professional Practice of Internal Auditing promulgated by the Institute of Internal Auditors, as set forth below:

· Demonstrates integrity.

· Demonstrates competence and due professional care.

· Is objective and free from undue influence (independent).

· Aligns with the strategies, objectives, and risks of the organization.

· Is appropriately positioned and adequately resourced.

· Demonstrates quality and continuous improvement.

· Communicates effectively.

· Provides risk-based assurance.

· Is insightful, proactive, and future-focused.

· Promotes organizational improvement.

The Firm’s response should include and discuss possible difficulties and limitations to achieving these Principles in light of OIAA resources constraints, including the current absence of OIAA staff involved in internal audit activities and the limited number of hours available to the Firm to address the current risk assessment portfolio of the Authority.

Also, the Firm should discuss how the firm conforms to and balances the standards established by the Institute of Internal Auditors and the American Institute of Certified Public Accountants.

7) Subsection 6 – References

(References will not be weighted but will be used to verify information provided in the proposal). Provide the names and current contact information of three (3) references having direct knowledge of the Proposer’s work related to this RFP.

8) Administrative Requirements b.) Part A – Administrative Requirements to be returned with the Proposal:

· A1 - Checklist

· A2 - Affidavit of Non-Collusion (notarized and signed by the Consultant)

· A3 - Conflict of Interest Disclosure Form (signed by the Consultant)

· A4 - Supplier Information Form

· A5 - W-9 Form

· A6 – SBE Affidavit

· Written acknowledgement in the cover letter that the responding party has reviewed and will comply with the OIAA SBE program (the OIAA SBE program is available for review at www.flyontario.com.)

c.) Part B – Administrative Requirements due prior to award of contract:

· B1 - Certificate of Insurance (COI) – Non-AOA $2Mil with $4Mil Aggregate and $2Mil Professional Liability Insurance

· B2 – Confidentiality and Non-Disclosure Agreement

· City of Ontario Business License d.) Part C – Other Administrative Requirements/Attachments:

· C1 – Small Business Enterprise (SBE) Program

· C2 – Sample Professional Services Agreement including:

C2A – Exhibit “A” Scope of Work C2A-1 – Exhibit “A-1” Task Order Assignment (TOA) C2B - Exhibit “B” Compensation and Rate Schedule

· C3 – Invoice Instructions e.) Part D – Exhibits

· D1 – OIAA Internal Audit Charter Draft

· D2 – OIAA Single Audit Reporting Package Final 6/30/2021

· D3 – Ontario International Airport Authority CFC Report Final 03/31/2021

· D4 – Ontario International Airport Authority PFC Report Final 03/31/2021

· D5 – OIAA Organizational Chart June 2021 6/25/2021 Final

· D6 – Airline and Concessionaire Record Keeping and Audit Requirements

SECTION 6 – SUBMITTAL AND FORMATTING INSTRUCTIONS

The Proposal must be submitted as instructed in this RFP and as instructed in any addenda posted to this RFP. OIAA may deem RFPs non-responsive if Proposals are not submitted according to the instructions in this RFP.

6.1. Delivery of Proposals to OIAA

Proposals shall be submitted electronically using OIAA’s Planet Bids portal. Hard copies of proposals will not be accepted.

6.2. Proposal Format

· Portable Document File (PDF)

· Please keep digital files to less than 10 MBs if possible but larger files will NOT be disqualified.

· Printing: OIAA may choose to print RFPs on 8.5-inch by 11-inch white paper

· The main body fonts must be a minimum of 12 points, figure captions and callouts may use smaller fonts.

· A one-page cover must state: “RFP for Internal Audit Services” and include the Firm’s name, contact person name, direct telephone or mobile phone number, and email address (failure to include this information on the cover may result in disqualification).

SECTION 7 – PROPOSAL EVALUATION CRITERIA

7.1. Initial Review

Upon receipt of Proposals, OIAA will review and evaluate Proposals that are deemed responsive in accordance with the criteria set forth in this RFP. If a Proposal is received and deemed non-responsive (e.g., submitted after the due date and time) the Proposal will be noted as non-responsive and will not be scored.

7.2. Evaluation of Proposals

Each Proposal will be reviewed and evaluated by each member of a selection panel established by the OIAA. The panel may consist of members from within and/or outside the Authority. The Panel may short-list Respondents for this RFP in an effort to identify the highest ranked Respondents, who may then be requested to interview with the panel.

Each reviewer will use the evaluation criteria set forth in this RFP and score each Proposal accordingly. Each reviewer will complete his/her review of Proposals independently. The selection panel’s evaluations will be combined to determine a numerical ranking of each responsive Proposal. The highest-ranking Proposers may be invited to OIAA for interviews with the selection panel if a selection cannot be made based on the Proposals received.

The OIAA reserves the right to select/award the most qualified Proposal without conducting interviews.

7.3. Evaluation of Interviews

The OIAA may determine that it is necessary to conduct interviews prior to final selection. In the event interviews are necessary, Firms that submit the highest-ranked Proposals will be invited to make presentations to the Finance and Audit Committee members of the selection panel and answer questions. Each member of the selection panel will evaluate the interviews and the final scores will be established based on criteria and instructions provided prior to the interview taking place.

The OIAA reserves the right to select/award the most qualified Proposal without conducting interviews.

7.4. Selection

OIAA intends on awarding the highest-ranking Proposer team based on the evaluation of proposals and, if necessary, interviews.

OIAA reserves the right to make final decisions regarding the selected firm based on the quantity and quality of the Proposals received. This right extends to modifying the selection process to eliminate interviews if an insufficient number of qualified firms/teams submits a Proposal.

Note: The evaluation worksheets, panelist names, individual scoring, comments, and overall evaluation scores, are not open records. Non-selected Proposers will receive a notification letter and an offer for a debriefing to be scheduled after the OIAA Commission approves an award of contract.

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7.5. Evaluation Criteria

The following criteria will be used by the OIAA selection panel to determine the most qualified firm to provide internal audit services.

Responsiveness

Qualifications

Depth and relevance of internal audit experience.

Experience with airports or other industries similar to the organizational and business structures of airports

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SECTION 8 – INTERPRETATIONS AND CLARIFICATIONS

8.1. Requests in Writing

The proposer may submit questions regarding the content of this RFP. Questions must be submitted using Planet Bids. In the event there is technical difficulty using Planet Bids, contact: Planet Bids at (818) 992-1771 x0 for support or select the headset icon for the Help Center to submit a support ticket.

8.2. Deadline for Questions

All questions must be submitted via Planet Bids by the Date and Time shown on the Cover Page of this RFP.

8.3. Oral Inquiries Prohibited

OIAA will not accept or respond to oral inquiries. The OIAA is not responsible for responding to any questions not published on the Planet Bids website.

8.4. Responses to Requests for Information (RFI)

If OIAA determines that a decision or interpretation requires that an addendum to the RFP document be issued, an addendum will be prepared and posted on Planet Bids and notice will be sent to registered RFP holders. Bidders/Proposers are cautioned that subsequent responses or addenda will become part of the Bid/RFP and may affect or vary a response previously provided. Each Bidder/Proposer is solely responsible for reviewing any and all addenda before submitting its Bid/Proposal.

Investigation of all RFIs will be pursued; however, it may be impractical to post responses to certain inquiries. Therefore, the OIAA, at its sole discretion, reserves the right to waive posting a response to RFIs, including RFIs that are unrelated to the Bid/RFP requirements, scope, specifications or other provisions; involve requests for methods, material, or equipment approvals; contain requests for contract deviations; refer to or comment on previous contract practices; are of minimal or limited cost implication; if the project schedule is of high importance or involves material time constraints; or if the RFIs are otherwise deemed inappropriate.

8.5. Prohibited Communications

Proposers may not directly contact or communicate with an OIAA employee or member of the OIAA Commission in relation to the selection process at any time prior to the notification that a contract has been awarded. The only exception to this prohibition is the submittal of questions as described in Sections 8.1 and 8.2 of this RFP.

8.6. Information Requested and Not Furnished

The information requested and the manner of submission is essential to permit prompt evaluation of all proposals. Accordingly, OIAA reserves the right to declare as non-responsive and reject any proposals in which information is requested and is not furnished or when a direct or complete answer is not provided.

8.7. Right to Verify Information

OIAA reserves the right to verify all submitted information, including contacting the referenced clients. All information stated in the proposal shall be factual, truthful and shall not be misrepresented in any manner. Any information stated in the proposal found to be a misrepresentation of past experiences shall be considered grounds for disqualification of the proposal.

8.8. Incorrect Proposal Information

If OIAA determines that a proposer has provided incorrect information for consideration in the evaluation process, which the proposer knew or should have known was materially incorrect, that bidder may be deemed non-responsive and the proposal may be rejected. OIAA is the sole judge in determining responsiveness of proposals.

8.9. Waiver of Minor Administrative Irregularities

OIAA reserves the right, at its sole discretion, to waive minor administrative irregularities contained in any proposal submitted for this RFP.

SECTION 9 – ADDENDA

9.1. Right to Revise RFP

OIAA reserves the right to revise the RFP documents at any time. Any such revisions(s) shall be done exclusively through, and described in, addenda to the RFP which shall be published on Planet Bids.

9.2. Postponing Due Date

OIAA reserves the right to postpone the due date and time for bids/proposals related to this RFP. Postponements may be considered if an addendum or revision to this RFP is sufficient to necessitate, at OIAA’s discretion, additional time to prepare BIDs/PROPOSALS. Any new submittal deadline date for delivering bids/proposals to OIAA will be communicated via an Addendum and published on Planet Bids.

9.3. Respondent’s Responsibility

Each respondent is responsible for monitoring OIAA’s procurement process through Planet Bids including addendums, emails, and other notifications related to the bids/proposals. OIAA reserves the right to deem a bid/proposal non-responsive if the bid/proposal does not clearly acknowledge posted addenda to this RFP.

Bidders/Proposers are responsible for the timely submission of their bid/proposal and assume the risk of potential delays in the delivery of paper or electronic bids/proposals including traffic, system glitches, uploads, or other unforeseen circumstances. Bid submission after the designated bid due date or time are late, will be deemed unresponsive, and will not be considered.

SECTION 10 – OIAA POLICIES AND AGREEMENTS

10.1. Validity Period of BID

Bids/proposals submitted to OIAA in response to this RFP are considered valid for one year from the due date and time of submittal or until OIAA executes a contract with a selected respondent, whichever occurs first.

10.2. Administrative Requirements

Proposers shall complete all the Administrative Requirements Forms, and shall initial all interlineations, alterations or erasures in its submissions. Proposers shall not delete, modify or supplement the printed matter on the Administrative Requirement Forms, or make substitutions thereon.

The evaluation of the Administrative Requirement is conducted on a Pass/Fail basis. The submission will be reviewed by OIAA to determine if it is complete. The Proposer’s failure to comply with the instructions or to submit complete and fully executed forms may result in the RFP being deemed non-responsive.

The OIAA Administrative Requirements include the following:

10.2.1. Affidavit to Accompany Bids or Proposals (must be signed and notarized) (A2)

Each bid/proposal/qualification must include the attached affidavit of the bidder/proposer that the bid/proposal/qualification is genuine, and not a sham or collusive, or made in the interest or on behalf of any person, and that the Bidder/Proposer has not directly or indirectly induced or solicited any other Bidder/Proposer to submit a sham bid, or any other person, firms, or corporation to refrain from bidding, and that the Bidder/Proposer has not sought by collusion to secure for himself/herself an advantage over any other Bidder/Proposer.

Proposers must complete, notarize, and submit the Affidavit to Accompany Proposals or Bids with the bid/proposal. Failure to include an Affidavit with the bid/proposal will render the submission non-responsive and will result in its rejection.

Note: Proposers are required to submit the original signed and notarized Affidavit to Accompany Bids/Proposals to the OIAA within five (5) calendar days from bid/proposal submittal to: Ontario International Airport Authority, Attn: Procurement Services, 1923 East Avion Street, Room 253, Ontario, CA 91761.

10.2.2. Conflict of Interest Disclosure (A3)

Each bid/proposal must include a Conflict of Interest Disclosure Form. This requirement applies to the Prime Contractor. Failure to include a Conflict of Interest Disclosure Form with the bid/proposal will render the submission non-responsive and will result in its rejection.

Note: Proposers are required to submit the original signed Conflict of Interest Disclosure Form to the OIAA within five (5) calendar days from bid/proposal submittal to: Ontario International Airport Authority, Attn: Procurement Services, 1923 East Avion Street, Room 253, Ontario, CA 91761.

10.2.3. Supplier Information Form (A4)

The Supplier Information Form requires general information about a bidder/proposer’s business as well as the Seller’s Permit, City of Ontario Business License, Payment Terms, and data on the firm’s other OIAA contracts (if applicable).

10.2.4. City of Ontario Business License (required upon notification of award of contract)

After notification from the OIAA, and prior to the establishment of the contract, the successful bidder/proposer/contractor conducting business within the City’s limits are required to apply for, obtain, and maintain a City of Ontario Business License. To apply, submit an application online at www.ontarioca.gov/business-license or contact the Business License Department directly at (909) 395-2022. Enter your company’s City of Ontario Business License on the Vendor Information Form and include a copy of either the business license or online application with your bid/proposal submittal.

10.2.5. W-9 Form (A5)

OIAA requires all bidders/proposers to submit Form W-9 for taxpayer identification and certification. A W-9 Form must be on-file with the OIAA to receive payment under this project.

10.2.6. SBE Affidavit (A6)

Each bid/proposal shall include a signed SBE Affidavit that certifies the bidder/proposer, company/firm, understands the SBE Program Rules and Regulations (located at www.flyontario.com/corporate/business-opportunities) and further certifies that, if awarded a Contract, the company/firm shall fully comply with the OIAA’s SBE Program. Failure to include the SBE Affidavit with the bid/proposal will render the submission non-responsive and will result in its rejection.

10.2.7. Insurance Requirements / PINSAdvantage

Non-AOA Insurance Requirement $2,000,000 with $4,000,000 Aggregate and $2,000,000 Professional Liability Insurance.

Contractor/Firm/Supplier shall procure at its own expense and keep in effect at all times during the term of this agreement, the types and amounts of insurance specified herein. After notification from the OIAA, and prior to the establishment of the contract, the successful bidder/proposer will be required to submit certification paperwork to OIAA in accordance with the Administrative Requirements stated in the Insurance Requirements. Contractor/Firm/Supplier shall submit/upload Certification of Insurance, Schedules, and Endorsements via OIAA’s PINSAdvantage.

10.2.8. Failure to Meet Post Notification Requirements

Failure of Proposer to meet post notification requirements established by this request for proposal, proposal addendum and/or to execute a contract with the Authority may result in OIAA’s determination that the bid/proposal are non-responsive and therefore withdraw its Notification of Intent to Award to the Proposer. The Authority may then provide a Notification of Intent to Award to the next highest-ranking Proposer.

10.2.9. Reserved.

10.2.10. Reserved.

10.2.11. Reserved

10.2.12. Reserved.

10.2.13. Addition of Products or Services to Contract

Should the OIAA have a need for an item, product, brand, commodity or service or a combination of the same, that could not be anticipated at the time of drafting the specification or scope of work for the bid/proposal, but is related to the performance of the contract, bidder/proposer/contractor understands and agrees to source the item, product, commodity or research the cost of the service in question and submit in writing fixed price quotation, total lump sum quotation, fixed discount/mark-up from/over price list/invoice to the OIAA contract manager.

The OIAA reserves the right to accept the offer, reject the offer and obtain the item, product, commodity or service or a combination of the same by other means. Accepted bidder/proposer/contractor offer including background documentation will become part of the contract. Price adjustment provisions in the bid shall apply to any item, product, brand, commodity or service or a combination of the same added to the contract.

10.2.14. Invoice Instructions

Bidder/proposer/contractor agrees to adhere to the invoice instructions provided upon award of contract. OIAA payment terms are Net 30 Days.

10.3. Reserved

10.3.1. Small Business Element (SBE) Program

The OIAA is committed to creating an environment that provides all individuals and businesses open access to the business opportunities available at the Ontario International Airport (ONT). The OIAA SBE Program requires Prime Contractors/Consultants who receive contracts from the OIAA to utilize certified small businesses at the levels promised. Disadvantaged Business Enterprise (DBE) can qualify as SBE as well. SBE participation is encouraged for this project but is not a required part of this agreement.

10.4. Reserved

10.5. Reserved

10.6. Reserved

10.7. Right to Reject Bids/Proposals

OIAA reserves the right to reject any or all Bids; to waive any informality in the Bids when doing so would be to the advantage of OIAA; to reject any unapproved alternative Bid(s); and to reject the Bid of any proposer who has previously failed to perform competently in any prior business relations with the OIAA. The receipt of Bids/Proposals shall not in any way obligate the OIAA to enter into any agreement or any other contract of any kind with any prospective proposer.

The OIAA is the sole judge of the merits of the respective proposals received and reserves the right to reject any or all proposals, reissue the proposal, perform the work in-house, or maintain the operation with existing contracts.

10.8. Proposer Disqualification for Attempted Improper Influence

Any attempt by a respondent to improperly influence an OIAA employee, executive staff/management, a member of the selection panel, or an OIAA Commission member, directly or indirectly during the RFP process or the SOQ evaluation and scoring process, will result in the elimination of that respondent from consideration.

SECTION 11 – PROPERTY OF OIAA / PROPRIETARY MATERIAL

11.1. Confidentiality / Public Records Act

All correspondence with the Authority including responses to this RFP will become the exclusive property of the Authority and will become public records under the California Public Records Act.