RFP No. VHQ26087S - IRP Audit Services-1.pdf

International Registration Plan (IRP) Audit Services

Solicitation No.: V-HQ-26087-S RFP Document

Audit Services RFP for Maryland Motor Vehicle Administration Page 1 of 68

STATE OF MARYLAND

MOTOR VEHICLE ADMINISTRATION (MVA)

REQUEST FOR PROPOSALS (RFP)

INTERNATIONAL REGISTRATION PLAN (IRP)

AUDIT SERVICES

RFP NUMBER V-HQ-26087-S

ISSUE DATE: JUNE 26, 2026

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

NOTICE TO OFFERORS

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

(eMMA) https://procurement.maryland.gov should register on eMMA https://emma.maryland.gov/

SMALL BUSINESS RESERVE PROCUREMENT

This is a Small Business Reserve Procurement for which the award will be limited to certified small businesses. Only businesses that meet the statutory requirements set forth in State Finance and Procurement Article, §§14-501—14-

505, Annotated Code of Maryland, and that are certified by the Governor’s Office of Small, Minority & Women

Business Affairs (GOSBA) Small Business Reserve Program are eligible for award of a contract. Before awarding a contract under a procurement designated as a small business reserve procurement, the Procurement Officer shall verify that the apparent awardee is certified by the GOSBA as a small business through eMMA. However, if small businesses do not show interest in this solicitation, the Procurement Officer has the right to remove the SBR designation via an Amendment on eMMA.

Minority Business Enterprises Are Encouraged to Respond to this Solicitation.

https://procurement.maryland.gov/ https://emma.maryland.gov/ https://procurement.maryland.gov/ https://emma.maryland.gov/ https://gomdsmallbiz.maryland.gov/Pages/sbr-program.aspx https://gomdsmallbiz.maryland.gov/Pages/sbr-program.aspx

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NO BID/PROPOSAL NOTICE/VENDOR FEEDBACK FORM

Solicitation Title: International Registration Plan (IRP) Audit Services

Solicitation Number: V-HQ-26087-S

Name of Company/Firm

(Bidder/Offeror):

To help us improve the quality of State solicitations, and to make our procurement process more responsive and business friendly, please provide comments and suggestions regarding this solicitation. Please return your comments with your response. If you have chosen not to respond to this solicitation, please email or fax this completed form to the attention of the Procurement

Officer (see Key Information Summary Sheet below for contact information).

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

Other commitments preclude our participation at this time

The subject of the solicitation is not something we ordinarily provide

We are inexperienced in the work/commodities required

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

The scope of work is beyond our present capacity

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

We cannot be competitive. (Explain in REMARKS section)

Time allotted for completion of the Bid/Proposal is insufficient

Start-up time is insufficient

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

Bid/Proposal requirements (other than specifications) are unreasonable or too risky

(Explain in REMARKS section)

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

(Explain in REMARKS section)

Payment schedule too slow

Other:

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

REMARKS:

Vendor Name: Date:

Contact Person: Phone: ( ) -

Address:

E-mail Address:

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STATE OF MARYLAND

MOTOR VEHICLE ADMINISTRATION (MVA)

KEY INFORMATION SUMMARY SHEET

Request for Proposals Services - International Registration Plan (IRP) Audit Services

Solicitation Number: V-HQ-25069-S

RFP Issue Date: June 26, 2026

RFP Issuing Office: Motor Vehicle Administration (MVA)

Procurement Officer:

Adeyemi Adenle

6601 Ritchie Highway, NE, Room 223

Glen Burnie, Maryland 20162

Email:

Phone Number:

aadenle@mdot.maryland.gov

(410-768-7635)

Proposals are to be sent to:

Submit on emma.maryland.gov under Solicitation Number V-HQ-26087-S

To submit a proposal, offerors must first register on emma.maryland.gov.

We recommend registering in advance to become acquainted with the site.

No Bid/Proposal Notice

Feedback Form

*If you are not submitting a proposal for this solicitation, submit Page 2 of this RFP with your reasons why.

Pre-Proposal

Conference:

July 08, 2026 at 1:00 PM (ET) Local Time, via Microsoft Teams

*See Pre-Proposal Conference Response Form to RSVP by July

06, 2026 by 2:00 PM (ET) to Attend

Questions Due Date and

Time:

July 14, 2026 by 2:00 PM (ET)

Submit via email to aadenle@mdot.maryland.gov

Proposal Due (Closing)

Date and Time:

July 30, 2026 by 2:00 PM (ET)

Offerors are reminded that a completed Feedback Form is requested if a no-bid/proposal decision is made (see Page 2 - No Bid Notice/Vendor

Feedback Form).

Oral Presentation/and

Interviews

September 24, 2026. Time: TBD

September 25, 2026. Time: TBD

Location: 6601 Ritchie Highway, NE, Room 223

Glen Burnie, Maryland 20162 mailto:aadenle@mdot.maryland.gov mailto:nhumphries@mdot.maryland.gov

Audit Services RFP for Maryland Motor Vehicle Administration Page 4 of 68

Procurement Method: A Contract will be awarded in accordance with the Competitive Sealed

Proposals method under COMAR 21.05.03.

Multiple or Alternate

Proposals:

Multiple or alternate Proposals will not be accepted.

Contract Type: Indefinite Quantity Contract with Firm Fixed Unit Prices.

Contract Duration: Three (3) year base period with one (1) two-year option period.

Primary Place of

Performance:

Motor Vehicle Administration (MVA) Headquarters

6601 Ritchie Highway, Glen Burnie, MD 21062

SBR Designation: Yes

Federal Funding: No

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1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.2 Background and Purpose

2.3 Contractor Responsibilities and Tasks

2.4 Experience and Personnel

2.5 Substitution of Personnel

2.6 Deliverable Submission

2.7 Additional Clauses

3 Standard Terms and Conditions

3.1 Contract Initiation Requirements

3.2 End of Contract Transition

3.3 Invoicing

3.4 Liquidated Damages

3.5 Data Export/Import…………………………………………………………………………….30

3.6 Problem Escalation Procedure

3.7 Payments by Electronic Funds Transfer

3.8 Living Wage

3.9 Department of Human Services (DHS) Hiring Agreement

3.10 Conflict of Interest Affidavit and Disclosure

3.11 Non-Disclosure Agreement (Contractor)

3.12 Bonds

3.13 Maryland Healthy Working Families Act Requirements

3.14 The State of Maryland’s Commitment to Purchasing Environmentally Preferred Products and

Services (EPPs)

3.15 Insurance Requirements

3.16 Subcontractor Insurance ……………………………………………………………………….37

3.17 Security Requirements

3.18 Employee Identification

3.19 Security Clearance/Criminal Background

3.20 Non-Compete Clause Prohibition……………………………………………………………...43

4 Proposal Submission Information and Instructions

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4.1 eMaryland Marketplace Advantage (eMMA)

4.2 Electronic Means

4.3 Pre-Proposal Conference

4.4 Questions

4.5 Procurement Method

4.6 Proposal Due (Closing) Date and Time

4.7 Multiple or Alternate Proposals

4.8 Economy of Preparation

4.9 Public Information Act Notice

4.10 Award Basis

4.11 Oral Presentation

4.12 Duration of Proposals

4.13 Revisions to the RFP

4.14 Cancellations

4.15 Incurred Expenses

4.16 Protest/Disputes

4.17 Offeror Responsibilities

4.18 Acceptance of Terms and Conditions

4.19 Compliance with Laws/Arrearages

4.20 Verification of Registration and Tax Payment

4.21 False Statements

5 Proposal Submission Information and Instructions

5.1 Two Part Submission

5.2 Proposal Delivery and Packaging

5.3 Volume I - Technical Proposal

5.4 Volume II – Financial Proposal

6 Evaluation and Selection Process

6.1 Evaluation Committee

6.2 Technical Proposal Evaluation Criteria

6.2.4 Past Performance Evaluation Criteria

6.2.5 References

6.2.6 Delivery Schedule

6.3 Financial Proposal Evaluation Criteria

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6.4 Reciprocal Preference

6.5 Selection Procedures

6.6 Documents Required upon Notice of Recommendation for Contract Award

7 RFP ATTACHMENTS AND APPENDICES

TABLE OF CONTENTS – RFP

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1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

The Offeror must provide proof with its Contract Package that the qualifications as specified in

Section 2.4 - Offeror and Personnel Experience have been met.

1.1.1 As proof of meeting this requirement, Offeror shall provide a copy of its current license or permit to practice Certified Public Accountancy issued by the Maryland Board of Public

Accountancy.

1.1.2 An Offeror must hold a current permit to practice Certified Public Accountancy in accordance with Title 2 of the Annotated Code of Maryland, Business Occupations and

Professions Article, Section 2-401.

1.1.3 If the Offeror is a licensed out-of-state accountant whose principal place of business is outside the

State, it shall provide such information as required under Title 2 of the Annotated Code of

Maryland, Business Occupations and Professions Article, Section 2-321.

1.1.4 The Offeror shall have a minimum of three (3) years of experience within the last five (5) years performing International Registration Plan (IRP) audits for a state, provincial, or governmental jurisdiction participating in the International Registration Plan

1.1.5 The Offeror shall provide, as part of its Technical Proposal, references for the IRP audit engagements identified above, including:

a. Client name;

b. Contract Period;

c. Description of Service Performed;

d. Contact Person; and

e. Current telephone number and email address.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

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2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.1.1 The Maryland Motor Vehicle Administration (MVA or the “Administration”) is issuing this Request for Proposal (RFP) to procure International Registration Plan

(IRP) Audit Services. The purpose of this solicitation is to procure an Audit Contract to obtain audit services that will determine whether IRP registrants are in compliance with the terms of the IRP and Maryland laws and regulations, including authentication and verification of distance figures derived from operational fleet records, registrations, and asset records of registrants in the Maryland apportioned registration system and verify that proper revenues are being collected. The audits shall result in final reports with findings, conclusions and recommendations, including any improvements to internal controls. This is a single award. For a clearer understanding of the concepts, requirements, and terminology associated with the

Maryland Apportioned Vehicle Registration Program and the International

Registration Plan (IRP), Offerors are encouraged to review the following resources:

a. The International Registration Plan (IRP) and the Audit Procedure Manual

(APM).

b. The International Registration Plan (IRP) official documentation

c. The Maryland Motor Vehicle Administration IRP Manual

These resources provide comprehensive guidance on program structure, compliance requirements, and audit standards applicable to this solicitation.

2.1.2 This is a single award. See RFP Selection Procedures for more Contract award information.

2.2 Background and Purpose

2.2.1 Purpose

The overall purpose of this procurement is to maintain an audit program used to perform distance audits of registrants of the Maryland Apportioned Registration Program.

Registrants of this program are Maryland-based trucking companies operating fleet vehicles traveling across state lines. These companies report to MVA the miles their vehicles travel, and this information is used to calculate and distribute fees to other states in which the trucking companies operate. This data is audited to ensure that defined objectives established by law and/or regulation are met. The major goal of the audit program is to help protect the integrity of apportioned registrations in Maryland, for the sake of its citizens and for the sake of all other member jurisdictions in the IRP.

2.2.2 Background

The MVA’s Motor Carrier and Electronic Services Division is responsible for administration of Maryland’s IRP for the apportioned fleet vehicles that have interstate operations. Maryland, as a member of IRP, operates an apportioned registration system, based on distance, for commercial vehicles engaged in interstate operations. The audit applies to Maryland-based carriers who operate in Maryland and travel to one or more IRP member jurisdictions. Maryland’s participation in the International Registration Plan

(IRP) requires the State to conduct audits annually on a minimum of three percent (3%) of

Audit Services RFP for Maryland Motor Vehicle Administration Page 10 of 68 the fleets whose registrations are renewed under the IRP program. This requirement is established by the International Registration Plan, Inc. and applies uniformly to all member jurisdictions, including U.S. states, the District of Columbia, and Canadian provinces.

This audit requirement is critical to maintaining the integrity of the IRP system, under which a fleet’s base jurisdiction collects and distributes apportioned registration fees on behalf of all jurisdictions in which the fleet operates. The total number of audits conducted each year may fluctuate based on the number of fleets that renewed registrations in the preceding year. As a result, the required audit volume is subject to annual variation.

Recent audit activity is summarized below for illustrative purposes:

Calendar Year Total Audits Completed

2025 222

2024 233

2023 477

2022 156

These figures demonstrate the variability in audit volumes while maintaining compliance with the minimum three percent (3%) audit requirement.

Estimated Quantities for Evaluation Purposes Only

Contract Year Estimated Full IRP Audits

Year 2027 230

Year 2028 235

Year 2029 240

Option Year 1-2029 245

Option Year 2-2030 250

Total (5 Years) 1,200

The above Projected quantities identified are estimates developed for proposal evaluation purposes only. They are based on historical audit volumes, anticipated operational needs, and projected IRP program activity. The estimates do not represent a guarantee of work, minimum purchase commitment, or maximum quantity. Actual quantities may increase or decrease during the Contract term based on annual fleet renewal volumes, audit selection criteria, operational priorities, and applicable IRP requirements.

2.2.3 Audit Goals

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To implement a scalable, compliant, and effective IRP Distance Audit Program that fulfills mandated audit requirements, protects the integrity of the apportioned registration system, maximizes deterrence, and ensures equitable fee distribution across IRP member jurisdictions. The goals of this audit program are:

A. To ensure compliance with provisions of IRP and all related Maryland laws and regulations, including verifying the accuracy of fleet ownership/leasing records and the accuracy of the fleet’s distance records.

B. Verify the accuracy of registration fees collected based on fleet records and fleet travel in order to prevent apportioned-registered fleet errors and omissions.

C. Complete audits on three percent (3%) of the number of IRP, Maryland-registered fleets renewed annually in each year of the audit contract.

1. A Records Review is a thorough evaluation of the Registrant’s distance accounting system and internal controls to ensure compliance with the Plan. The purpose of performing a Records Review is to mitigate potential record keeping compliance issues.

2. If a Records Review becomes part of the Plan, a Records Review may be conducted on a Registrant’s distance accounting system to ensure compliance with the Plan.

3. The primary difference between an Audit and a Records Review is a Records

Review:

i. Focuses only on the adequacy of the internal controls and compliance of the distance accounting system;

ii. May be limited in scope to less than a full Reporting Period;

iii. May be conducted before the first renewal; and,

iv. Does not result in any fee adjustments

v. Record Reviews are calculated towards the 3% IRP audit requirement, as three record reviews is the equivalent of one audit.

Record reviews cannot exceed 25% of the total audits required.

vi. The type of audits performed will be prescribed by the

Administration at the beginning of each contract year.

D. A list of registrants to be audited shall be presented prior to the beginning of each contract. The Contract Manager or designee must approve any and all subsequent adjustments to the List of Registrants selected for Audit, as well as future List of

Registrants to be audited, prior to the commencement of such work.

E. The Audit Contractor shall prepare and maintain an audit schedule for the Contract

Manager, which provides for the current status of audits in progress and a periodic review of progress an accomplishment. This schedule will be submitted to the Contract Manager on a monthly basis. The format of the report shall be determined at the initiation meeting.

F. The majority of the work shall be completed at the Audit Contractor’s office(s) or approved MVA location. The entity being audited will provide the documents to be audited, and the Audit Contractor can complete the audits at its office or approved MVA location. In certain circumstances, travel may be determined necessary to undertake or complete an audit. All travel must be pre-approved by MVA Contract Manager or designee prior to commencement of the audit.

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G. Joint Audits – An audit may be conducted jointly by more than one jurisdiction. In a joint audit where Maryland is the base jurisdiction of the registrant under audit, Maryland shall provide the other jurisdictions participating in the audit with adequate information concerning the registrant. Upon the completion of a joint audit where Maryland is the base jurisdiction, the Audit Contractor shall submit the audit findings agreed upon by the participating jurisdictions to MVA for approval. MVA shall be responsible for distributing audit findings to the participating jurisdictions.

H. Auditor expenses incurred for joint audits conducted by an audit contractor who is representing two or more jurisdictions under the attached Rider Clause shall share audit expenses. A registrant with operations in multiple jurisdictions where the jurisdiction is utilizing an auditor under the same Rider Clause, expense shall be shared by the jurisdictions.

State Staff and Roles

In addition to the Procurement Officer and Contract Manager, the State project team for this

Contract shall consist of the following personnel and functional roles. The State reserves the right to modify staffing assignments during the term of the Contract as necessary to support operational and program requirements.

A. IRP Program Manager / MVA’s Motor Carrier Services Division Representative –

The IRP Program Manager or designated representative from the MVA Motor Carrier and

Electronic Services Division shall provide subject matter expertise regarding Maryland’s

International Registration Plan (IRP) program operations and compliance requirements.

Responsibilities may include:

i. Providing registrant account information and historical audit data;

ii. Assisting with interpretation of IRP policies, procedures, and operational requirements;

iii. Coordinating access to IRP system data and supporting documentation;

iv. Assisting in the resolution of technical or programmatic audit issues; and

v. Participating in audit review meetings and discussions regarding audit findings.

vi. Reviewing and approving audit schedule, work plans, deliverables, and reports;

vii. Direction regarding audit priorities and selection

viii. Resolving operational issues associated with Contract performance

The IRP Program Manager or designee will provide:

1. Electronic registrant and fleet data;

2. Relevant IRP manuals, procedures, and operational guidance;

3. Access to applicable records maintained by the Administration; and

4. Coordination with other participating jurisdictions, when applicable

B. Contract Monitor-

i. Monitoring Contractor performance and compliance with Contract requirements;

ii. Resolving all Contract administration issues i.e Invoices, Contract

C. Procurement Officer-

The Procurement Officer is responsible for the overall administration of the procurement process and shall serve as the State’s authorized representative for procurement-related matters. The

Procurement Officer shall be responsible for:

i. Issuing solicitation amendments and official procurement communications;

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ii. Managing the procurement process in accordance with COMAR and Maryland procurement law;

iii. Coordinating Contract execution and approvals;

iv. Reviewing and processing Contract modifications, when applicable; and

v. Resolving procurement-related issues arising during Contract administration.

vi. Maintaining Contract records and documentation;

2.3 Contractor Responsibilities and Tasks

General Requirements

Perform audits to ensure registrants comply with provisions of the IRP and applicable Maryland laws and regulations and verify that proper revenues are being collected. The general purpose of the audits is to protect the integrity of the vehicle registrations laws of all IRP member jurisdictions. In addition to audits conducted by the Audit Contract, the MVA at its discretion may conduct audits on its own or jointly with other jurisdictions.

2.3.1 The Contractor shall conduct audits to meet MVA’s minimum audit objectives for the

International Registration Plan (IRP).

The minimum audits required to meet this objective is three percent (3%) of the number of

Maryland-registered apportioned fleets renewed annually. The audits shall result in final reports that provide findings, conclusions and recommendations, including improvements to the registrant’s internal control. The final report audits must be submitted to the MVA between January 1 and December 31 generally, unless the MVA approved another schedule. The audits should accomplish the following objectives:

A. Assure the accuracy of the ownership/lease records of vehicles as identified on registration and supplemental applications.

B. Confirm the accuracy and completeness of the MVA’s vehicle information with company’s (registrant) information.

C. Assure the registrants proper use of the MVA’s issued 60-day temporary authorizations.

D. Assure compliance with state laws and the MVA’s regulations for the IRP.

E. Compare distance reported to other jurisdictions with distance reported for IRP registration (when applicable).

2.3.2 The Contractor must review applicable statutes, regulations, agreements and programs such as, but not limited to:

A. The Maryland Annotated Code and Code of Maryland Regulations, Code of Maryland

Regulations (COMAR) Title 11, Subtitle 15 Chapter 22 Section .04 and .05 (Apportioned

Registration of Fleet Vehicles) -http://www.dsd.state.md.us/comar/SubtitleSearch.aspx?search= or https://regs.maryland.gov/us/md/exec/comar/11.15.22.05

B. Maryland Apportioned Registration Manual https://mva.maryland.gov/media/249/downloadC. International Registration Plan with

Official Commentary Incorporated https://mva.maryland.gov/media/249/download

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C. International Registration Plan Audit Procedures Manual

2.3.3 The staff assigned to conduct Audits must possess adequate professional proficiency for the tasks required. The contractor must ensure its staff maintains proficiency in IRP auditing by providing training opportunities through internal or external training sources. i.e., IRP

Annual Audit Workshop.

2.3.4 The Audit shall be conducted under the guidelines of the IRP agreement and IRP Audit

Procedures Manual and must be performed in accordance with generally accepted accounting and auditing standards, with adequate planning, independence in mental attitude and due professional care. The audits shall result in final reports with findings, conclusions and recommendations, including improvements to the registrant’s internal control. The

Contractor must comply with any updates to the IRP Plan and/or Audit Procedures Manual at no cost to Maryland.

2.3.5 The Contractor shall accomplish the work under this Contract in the following phases:

Phase I: Develop a comprehensive and detailed Work Plan

Phase II: Prepare Audit Schedule and Selection of Registrants for Audit

Phase III: Execute the Work Plan developed in Phase I

Phase IV: Draft Reports

Phase V: Final Reports and Presentations

2.3.6 Phase I: Develop a comprehensive and detailed Work Plan

The Offeror shall develop a written, comprehensive, detailed Work Plan to perform the audits. Executing the Work Plan shall result in final reports with findings, conclusions and recommendations on improvements to the registrant’s internal control.

The Work Plan shall include the schedule of audits to be performed and estimated task hours of effort.

2.3.6.1 The Work Plan shall be submitted to the Contract Manager for review and

Approval and shall include the following tasks:

2.3.6.1.1 Pre-Audit Procedures:

A. Notify registrants in writing that they have been selected for audit

B. After contact with registrant, complete the determination of auditability form to be included in the final report

C. Determine if the registrant’s records are maintained in the jurisdiction of Maryland.

D. Approximately 30-days before the audit is scheduled to commence contact selected registrants by telephone and/or email.

2.3.6.1.2 Advise the registrant of the purpose of the audit.

2.3.6.1.3 Make arrangements for the records to be delivered to the selected Audit

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Contractor via registered mail, electronic submission, or for a field visit either at registrant’s facility or at a facility agreed to by the registrant and the selected contractor.

2.3.6.1.4 Make requested records available,

2.3.6.1.5 Dates of the audit,

2.3.6.1.6 Individuals to be contacted at jurisdiction levels regarding any questions.

a. Ascertain if the registrant’s records are manually based or computer generated.

b. Send a confirmation-of-audit letter to registrant, verifying the subjects discussed during the telephone conversation or email.

c. Confirm arrangements for audit approximately ten (10) business days prior to the delivery date of the information.

d. Obtain an understanding of the registrant’s system for obtaining and accumulating information.

e. Advise registrant in writing (if records are unavailable) that thirty (30) days will be given to make records accessible, after which registrant will be assessed fees in accordance with the Maryland Code –

2.3.6.1.7. Conducting the Audit-Basic Procedures:

Generally, audits are to be conducted on a sampling basis. However, a complete audit of the registrant’s distance records for the twelve-month period or actual months of operation may be necessary if test of internal controls reveal major weaknesses in the registrant’s reporting system, or if there is an absence of distance summaries.

A. Prepare a Vehicle Listing

In determining a registrant’s fleet of proportionally registered vehicles subject to the audit, the Audit Contractor must first review the registrant’s registration file reported to MVA. From these files, a list of vehicles that were proportionally registered during the audit year should be prepared for each fleet. Notations should be made indicating the period of time the vehicles were in service. (This list will provide the Audit Contractor with a reference from which records of specific vehicles may be randomly selected for audit. The vehicle listing must be included in the registrant’s audit report.)

B. Review of Registrant’s Application

The Audit Contractor shall:

1. Request the registrant to supply the records to support the application filed. These would be the same records previously discussed during the initial contact with the registrant person(s) responsible for such records.

2. Sum the twelve (12) monthly fleet recaps (or actual months of operation if less than twelve months), comparing totals with the registrant’s yearly recap and application or each fleet.

3. Ascertain that all vehicles owned, rented, or maintained have been apportion registered (if they travel into another member jurisdiction), using IRP Schedule A.

4. If any vehicles are not included in the registrant’s schedules, determine that they are exempt from the IRP, such as government owned vehicles, city pick-up and delivery vehicles and buses used

Audit Services RFP for Maryland Motor Vehicle Administration Page 16 of 68 in transportation of chartered parties; or if such vehicles had purchased trip permits for each trip.

5. Determine whether errors exist in duplication of vehicles and/or fees that have been paid twice.

6. Verify that if the registrant is deleting a vehicle from an existing

IRP fleet and adding a comparable vehicle using the IRP Schedule

A, registration fees have been transferred by every IRP member

(Except those that do not provide for transfer.)

C. Verification of Distance and the Individual Vehicle Distance Reports

(IVDR) Since the concept of the Plan is to pay fees based on the percentage of jurisdictional miles traveled, it is essential that the Audit Contractor verify the integrity of the IVDR or source document operation transaction, for accurate computation, payment and assessment for deficiencies or allowance for credits. The Audit Contractor shall randomly select three (3) months' worth of data within the last reporting period to verify the registrant’s distance reports.

However, if any major discrepancies have been revealed, this would indicate the necessity to conduct a more thorough, or, possibly, a complete audit of the registrant’s distance records for the twelve (12) month period (or actual months of operation if less than twelve (12) months).

The Audit Contractor shall examine supporting documentation for the

IVDR. Documentation shall be inspected to ensure that each registrant has established and practiced adequate procedures for controlling, recording and reporting trip distance, to include:

• Date of trip (starting and ending)

• Trip origin and destination

• Route of travel and/or beginning and ending odometer or barometer reading of the trip

• Total trip miles

• Distance by jurisdiction (can be collected by odometer readings, state maps, or household goods distance. The important point is that it is accurate and consistent.)

• Unit or vehicle identification number

• Vehicle fleet number

• Registrant’s account number

• Trailer number

• Driver’s signature and/or name

• Actual distance of the apportioned vehicle

• All movements (interstate and intrastate), loaded, empty, deadhead and/or bobtail miles, miles generated under a trip permit, and miles in a trip lease (if registrant is the lessor)

• Distance reports filed for appropriate jurisdictions

• Accurate and reasonable weights which can be supported by evidence

The Audit Contractor must be satisfied that the registrant has not incurred significant

Audit Services RFP for Maryland Motor Vehicle Administration Page 17 of 68 unrecorded distance through failure to comply with laws and regulations. If, for example, in the Audit Contractor’s judgment, the IVDRs have not been properly maintained, the Audit Contractor shall examine the adequate support documentation to verify reasonableness of registrant’s distance (e.g., matching household goods distance guide with adequacy of trip and registrant employee records.)

NOTE: If the registrant has apportioned for a second or subsequent registration year based on estimated miles in a member jurisdiction, the base jurisdiction adjusts the

100% Apportionment distribution formula to exclude such miles. This will in effect, cause the estimated fees to be calculated in excess of 100%.

If the Audit Contractor is satisfied that the distance has been properly reported, the schedule B of miles may be prepared.

D. Review of Registrant’s Temporary Apportioned Registration

The Audit Contractor shall examine Temporary Apportioned Registration authorizations, if applicable, to ensure the proper use of forms and verify the numerical sequence. Determine when the last Temporary Authorization was filed with a Temporary Authorization Agent (TA Agent).

E. Registrant’s Records

The Audit Contractor shall ascertain that the registrant has maintained the appropriate records for the required three-year registration period following the close of the most recent registration year.

If inadequacies exist in the registrant’s records, explain the limitations to the registrant and provide recommendations to correct inadequacies in future records.

Include a summary of the recommendations on the audit report.

F. Completion of Schedule B

Distance on Maryland IRP Schedule B relating to jurisdictions that are not members of the IRP should be aggregated and reported on Schedule B as nonmember jurisdiction miles.

Estimated distance must be identified with an “E” for estimated.

If a new jurisdiction is added for the first time, estimated distance should be treated in the same manner as for the first-year applicants.

If a second-year application has been filed, distance must be computed on the basis of actual operations. The exception to these procedures for second estimates is when a new carrier begins operation late in a registration year such that no distance is accrued for at least a three (3) month span of time during the period used for reporting in the subsequent year.

If the registrant continues to report estimated distance, the procedures performed by the Audit Contractor to complete Schedule B should be as follows:

i. Reported Distance B: Enter the original distance, percents and totals and identify with a “D” for 2nd year estimates.

ii. Audited Distance B:

• Any miles in the same jurisdiction which are estimated for a second year are to be placed in the Double Estimate column on Schedule B.

• Compute the increases/decreases in percents. Note that these amounts will not equal each other when estimates are used for a second year.

• Compute billing/refund. Take original fees paid by registrant and divide by the original percent. This will be the fee used to calculate any billing/refund.

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Subtract audited percent from original percent to determine the percent difference.

• Enter amounts in the appropriate blocks on Schedule B. Take fee amount and multiply it by the percent difference. This total will equal the refund or billing due.

iii. Completion of Schedule A/C

Schedule A/C must be completed if there has been a vehicle(s), for the registration year under audit, which:

a. Did not engage in interstate commerce with other member jurisdictions;

b. Traveled only in Maryland and non-member jurisdictions; or

c. Traveled into member jurisdictions using trip permits.

2.3.6.1.8 Conclusion of Audit

The Audit Contractor shall document all exceptions identified during the audit and notify the registrant of these exceptions prior to the completion of the audit.

Note that the Audit Contractor may require Contract Manager assistance to resolve large or technical exceptions. All exceptions are to be listed on the

Audit Summary.

NOTE: The Audit Contractor must be alert to situations that could be indicative of fraud, abuse, and illegal acts, and if such evidence exists, extend audit steps to identify the effect on the registrant’s records.

Upon completion of an audit, the Audit Contractor shall obtain the registrant’s signature on the Audit Summary.

The Audit Contractor shall complete the Audit Schedule, along with signing and dating the schedule to verify it is complete.

2.3.7 Post-Audit Basic Procedures

Conduct a supervisory review of each completed audit to determine whether:

a. Conformance with audit standards and the Audit is obtained.

b. The audit programs are followed, unless deviation is justified and authorized.

c. The working papers adequately support the findings and conclusions of the audit and provide sufficient data to prepare a meaningful report.

d. Computer programs have calculated amounts correctly; and

e. The audit objectives have been met.

The Work Plan shall include a description of the planned audit activities; a description of the auditors approach for conducting reviews and for testing; and each area and function to be audited based on a preliminary review conducted by the Audit Contractor.

2.3.8 Phase II: Selection of Registrants for Audit

MVA will:

a. Provide the Audit Contractor with a listing of apportioned accounts;

b. Identify a range of apportioned account numbers the Audit Contractor may choose to audit.

The Audit Contractor:

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a. Will use the list of account numbers provided by the MVA to select accounts that will be audited.

b. Once the companies are selected, provide MVA representative with the names of the selected companies

The Audit Contract Manager:

a. May request a meeting with the Audit Contractor to review the accounts selected to be audited; and

b. Must obtain approval by MVA prior to the commencement of the audits.

Upon notice of the selected registrants, MVA will provide the Audit Contractor with all pertinent information relative to the registrants to be audited, via an electronic format, i.e., fees paid to each jurisdiction, distance traveled and vehicles registered. The data elements will be provided electronically.

2.3.9 Phase III: Execution of Work Plan developed by Phase I

For the registrants selected in Phase II, the Audit Contractor shall execute the authorized Work Plan developed in Phase I. The Execution of Phase III is solely dependent upon Audit Contractor’s satisfactory completion of Phase I and approval of a list of registrants to be audited, as determined during Phase II.

Phase III shall not begin until the Audit Manager has issued a written notice to proceed. The Audit Program Manager or designee must approve any and all subsequent adjustments to the work plan (developed in Phase I) and the list of registrants to be) prior to the commencement of such work.

During this phase, periodic meeting will be held with the Contract Manager or a designee in order to notify MVA of any issues, concerns or problems encountered. The initial schedule of these meetings may be established at the

Initiation (Kick-Off) Meeting. Additional meetings may be required, as deemed necessary.

2.4 Experience and Personnel

2.4.1 Preferred Offeror Experience

The MVA prefers an Offeror with demonstrated experience performing transportation-related audits, regulatory compliance audits, and public-sector audit services. The Offeror should possess sufficient organizational capability, technical expertise, and staffing resources necessary to successfully perform the requirements of this Contract. At a minimum, the Offeror should possess the following experience:

a. Experience conducting audits for public-sector agencies, governmental entities, or transportation-related organizations.

b. A minimum of three (3) years of direct experience performing International Registration Plan

(IRP) audits or substantially similar motor carrier distance and registration compliance audits.

c. Demonstrated knowledge of:

1. The International Registration Plan (IRP);

2. The IRP Audit Procedures Manual (APM);

3. Apportioned registration systems and fleet operations;

4. Motor carrier operational records and mileage reporting systems; and

5. Applicable Maryland laws and regulations governing apportioned registration.

d. Demonstrated experience preparing detailed audit findings, recommendations, and corrective

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e. Experience performing audits involving:

1. Fleet registration and leasing records;

2. Mileage and distance reporting verification;

3. Internal control assessments;

4. Compliance testing; and

5. Financial and operational data analysis.

f. Demonstrated ability to manage multiple audits simultaneously while meeting required schedules and reporting deadlines.

g. Experience conducting joint audits or multi-jurisdictional audits involving multiple governmental entities is preferred.

The following information shall be included in the Technical Proposal and may be used during evaluation:

i. Description of similar audit engagements completed within the last five (5) years;

ii. client references for comparable services;

iii. Description of audit methodologies and quality assurance procedures;

iv. Organizational structure and staffing capacity; and

v. Experience with electronic records review and remote audit execution.

2.4.2 Personnel Experience

The Offeror shall provide qualified personnel with the professional experience, technical knowledge, and audit proficiency necessary to perform all services required under this Contract.

All personnel assigned to perform IRP audits shall possess:

i. Knowledge of generally accepted accounting and auditing standards;

ii. Experience reviewing operational, financial, and mileage reporting records;

iii. Experience conducting compliance and internal control assessments; and

iv. Familiarity with IRP requirements, transportation compliance programs, or motor carrier operations.

Personnel assigned to this Contract should possess experience in one or more of the following areas:

1. IRP auditing;

2. Transportation or motor carrier compliance auditing;

3. Government auditing;

4. Financial auditing;

5. Operational auditing; or

6. Regulatory compliance reviews.

The Offeror shall ensure that assigned personnel maintain professional proficiency through continuing education, industry training, workshops, seminars, or professional development activities related to:

i. IRP audit requirements;

ii. Transportation compliance;

iii. Government auditing standards; and

iv. Audit methodology and reporting practices.

Participation in IRP-sponsored audit workshops, training programs, or related industry conferences is preferred.

2.4.3 Key Personnel

The following personnel positions shall be considered Key Personnel under this Contract:

a. Engagement Manager / Project Manager

b. Lead IRP Auditor

c. Senior Audit Staff / Audit Supervisor

Key Personnel proposed in response to this RFP shall:

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i. Be available as of the Notice to Proceed (NTP) date;

ii. Remain assigned to the Contract unless substitution is approved by the Contract

Manager; and

iii. Possess qualifications and experience appropriate for their assigned responsibilities.

2.4.4 Engagement Manager / Project Manager Qualifications

The Engagement Manager or Project Manager shall:

1. Serve as the primary management contact for the Contract;

2. Oversee scheduling, staffing, quality control, and deliverable management; and

3. Coordinate all communications with the Administration.

Preferred qualifications include:

a) Minimum five (5) years of experience managing audit engagements;

b) Experience supervising governmental or transportation-related audits;

c) Strong project management and reporting skills; and

d) Experience managing multi-resource audit teams.

2.4.5 Lead IRP Auditor Qualifications

The Lead IRP Auditor shall:

i.Direct audit fieldwork activities;

ii.Supervise audit staff;

iii.Review audit findings and supporting documentation; and iv.Ensure compliance with IRP Audit Procedures Manual requirements.

Preferred qualifications include:

1) Minimum three (3) years of direct IRP audit experience;

2) Experience evaluating fleet distance records and apportioned registration compliance;

3) Strong analytical and report-writing skills; and

4) Experience conducting joint or multi-jurisdictional audits.

2.4.6 Contractor Personnel Maintain Certifications

Any professional certifications, licenses, or permits required for personnel assigned to this

Contract shall be maintained in good standing throughout the duration of the Contract.

The Offeror shall ensure that personnel performing services under this Contract comply with all applicable professional standards, licensing requirements, and continuing education obligations.

2.5 Substitution of Personnel

2.5.1 Continuous Performance of Key Personnel

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

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

B. Key Personnel shall perform continuously for the duration of the Contract, or such lesser duration as specified in the Technical Proposal. Key Personnel may not be removed by the

Contractor from working under the Contract without the prior written approval of the Contract

Monitor.

C. The provisions of this section apply to Key Personnel identified in any Task Order proposal and agreement, if issued, and any Work Order Request and Work Order, if issued.

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2.5.2 Definitions

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

A. Extraordinary Personal Event – means any of: leave under the Family Medical Leave Act; an

Incapacitating injury or Incapacitating illness; or other circumstances that in the sole discretion of the State warrant an extended leave of absence, such as extended jury duty or extended military service that precludes the individual from performing his/her job duties under the

Contract.

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

Contractor’s Technical Proposal.

2.5.3 Contractor Personnel General Substitution Provisions

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

Section 2.5.4.

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

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

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

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

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

4. Evidence of any required credentials.

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

D. The Contract Monitor will notify the Contractor in writing of: (i) the acceptance or denial, or (ii) contingent or temporary approval for a specified time limit, of the requested substitution. The

Contract Monitor will not unreasonably withhold approval of a proposed Contractor Personnel replacement.

2.5.4 Replacement Circumstances

A. Directed Personnel Replacement

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

2. If deemed appropriate in the discretion of the Contract Manager, Contract monitor may give written notice of any Contractor Personnel performance issues to the Contractor, describing the problem and delineating the remediation requirement(s). The Contractor shall provide a written response to the remediation requirements in a Remediation Plan within ten (10) days of the date of the notice and shall immediately implement the

Remediation Plan upon written acceptance by the Contract Manager. If the Contract

Monitor rejects the Remediation Plan, the Contractor shall revise and resubmit the plan to the Contract Monitor within five (5) days, or in the timeframe set forth by the

Contract Monitor in writing.

3. Should performance issues persist despite an approved Remediation Plan, the Contract

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Monitor may give written notice of the continuing performance issues and either request a new Remediation Plan within a specified time limit or direct the substitution of

Contractor Personnel whose performance is at issue with a qualified substitute, including requiring the immediate removal of the Contractor Personnel at issue.

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

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

However, if the Contract Monitor deems it…