S-DASOBO-00008678_OLCC DSSC RFP_12-05-2023 RELEASED~1.docx

Department of Administrative Services, Enterprise Goods and Services, Procurement Services on behalf of Oregon Liquor and Cannabis Commission Is issuing this Request For Proposals (RFP) under OregonBuys Bid Number S-DASOBO-00008678 for Distilled spirits supply chain (“DSSC”) solution Date of Issue: December 5, 2023 Opening Date: January 22, 2024

The State of Oregon promotes equal opportunity for all individuals without regard to age, color, disability, marital status, national origin, race, religion or creed, sex or gender, sexual orientation, or veteran status.

Table of Contents

LIST OF RFP ATTACHMENTS

Attachment A: SAMPLE CONTRACT Attachment B: DISCLOSURE EXEMPTION CERTIFICATION Attachment C: PROPOSER INFORMATION AND CERTIFICATION SHEET Attachment D: REFERENCE CHECK FORM Attachment E: PRICE PROPOSAL Attachment F: CERTIFIED DISADVANTAGED BUSINESS OUTREACH PLAN Attachment G: RESPONSIBILITY INQUIRY Attachment H: SOLUTION REQUIREMENTS Attachment I: SCOPE OF SERVICES Attachment J: STATEWIDE INFORMATION & CYBER SECURITY STANDARDS SPREADSHEET Attachment K: DELIVERABLE EXPECTATION DOCUMENT Attachment L: THIRD PARTY VENDOR INFORMATION Attachment M: ROUND 1 ADMINISTRATIVE PROPOSAL AND TECHNICAL PROPOSAL EVALUATION AND SCORING

GENERAL INFORMATION

INTRODUCTION

The Department of Administrative Services (“DAS”), Enterprise Goods and Services, Procurement Services (“DAS PS”), on behalf of the Oregon Liquor and Cannabis Commission (“OLCC” or “Agency”), is issuing this Request for Proposal (“RFP”) for an Integrated Distilled Spirits Supply Chain Solution for its Distilled Spirits Program.

OLCC is in a multi-phase, multi-year program of projects (Enterprise Modernization Program, or EMP) to procure multiple data systems to support core business needs. The procurement of the Distilled Spirits Supply Chain (DSSC) is one of the projects that will support critical business processes that are currently compromised by aging or insufficient data systems. The future state of OLCC’s DSSC management will consist of a Warehouse Management System (WMS), Point of Sale (POS) System and Enterprise Resource Planning (ERP) System as described in Section 2.3.2.

In addition to procuring the Distilled Spirits Supply Chain Integrated Solution, OLCC is also embarking on relocating the Warehouse and headquarters office. The new 350,000+ square foot warehouse building is planned to break ground in 2024 with an anticipated go-live in mid-2025. The Distilled Spirits Supply Chain Integrated Solution is required for the warehouse to be functional. The facility will feature increased shipping and receiving doors, and a new conveyor/material handling system which will require integration with the DSSC Integrated Solution. As of the release of this RFP, the conveyor system vendor has not been identified.

Access the following link for more information on the Distilled Spirits Program: https://www.oregon.gov/olcc/liquorstores/Pages/default.aspx OLCC seeks one or more web-based Software as a Service (SaaS) Solution(s) for its DSSC Integrated Solution, to be hosted by the successful Proposer. SaaS refers to a subscription-based licensing and software delivery model in which the vendor bears all responsibility for supporting the Integrated Solution. This is the preferred delivery model for related State systems to support strategic goals associated with sustainability. For this Procurement, Proposals involving software hosted on premise that are not subscription based may also be considered.

OLCC has received funding for the Project through Article XI-Q General Obligation Bonds (Article XI-Q of the Oregon Constitution and Oregon Revised Statutes Chapter 286A) during the 2021 legislative session. General Obligation debt can be incurred for capital costs, including costs associated with acquisition, development, licensing, and hosting. This does not include training, close-out, or ongoing costs such as maintenance or subscription fees, which will be funded by other Agency funds.

DAS PS and OLCC will evaluate Responsive Proposals through 2 or more evaluation rounds ( each a “Round”) but reserve the option to issue a Notice of Intent to Award after any Round depending upon scoring results from such Round. Round 1 Proposal submissions must include the following three components:

1. Administrative Proposal

2. Technical Proposal

3. Price Proposal See RFP Attachment M, Round 1 Administrative Proposal and Technical Proposal Evaluation, for Round 1 evaluation details.

Agency requires Proposers to have five years’ experience and have completed at least three successful implementations of projects with similar size, scope, and/or complexity as the system(s) sought in this RFP, with at least one of those projects being completed within the past three years.

DAS PS anticipates the award of one contract from this RFP to deliver the system, services, and any goods (e.g., hardware and equipment) necessary for Agency to meet the goals of the Project. The initial term of the Contract is negotiable, but DAS PS anticipates that the initial term of the Contract may be from one to five years, with options to renew. Additional details on the Scope of the goods or services or both are included in Section 2.4.

SCHEDULE

The table below represents a tentative schedule of events. All times are listed in Pacific Time (“PT”). All dates listed are subject to change. N/A denotes that event is not applicable to this RFP.

SINGLE POINT OF CONTACT (SPC)

The SPC for this RFP is identified on the Cover Page, along with the SPC’s contact information. Proposer shall direct all communications related to any provision of the RFP, whether about the technical requirements of the RFP, contractual requirements, the RFP process, or any other provision only to the SPC.

COMMITMENT TO DIVERSITY, EQUITY, AND INCLUSION

The State is committed to taking active steps toward increasing and promoting diversity, equity, and inclusion values across procurement processes for minority, women, emerging small, and service-disabled veteran owned businesses by reducing barriers to compete for and be awarded State contracts. All interested businesses are encouraged to submit proposals for this contracting opportunity.

AUTHORITY, OVERVIEW, AND SCOPE

AUTHORITY AND METHOD

DAS PS is issuing this RFP pursuant to its authority under ORS 279A.050 and OAR 125-246-0170(3)(B); and is using the Competitive Sealed Proposals method, pursuant to ORS 279B.060 and OAR 125-247-0260. DAS PS may use a combination of the methods for Competitive Sealed Proposals, including optional procedures: a) Competitive Range; b) Discussions and Revised Proposals; c) Revised Rounds of Negotiations; d) Negotiations; e) Best and Final Offers; and f) Multistep Sealed Proposals.

DEFINITION OF TERMS

For the purposes of this RFP, capitalized words refer to the definitions in OAR 125-246-0110 and this RFP, including all its attachments (such as the Sample Contract).

Project Specific Definitions.

Administration: OLCC staff including purchasing, financial services, auditors, Warehouse, and Retail Services.

Agent Compensation: Payments to contract Liquor Agents or Distillery Agents based on percent commission.

Bailment: Inventory owned by Distilled Spirits Suppliers and held in OLCC’s warehouse. This is a virtual designation within tracking systems (inventory is purchased by OLCC when it is picked for an outgoing order to a Liquor Store) Special Order: Customer order requests from Liquor Stores for a new item not currently listed by OLCC. Any item not currently stocked in the warehouse is a 'Specialty Item'. Specialty Items are requested through the Special Order process.

Distilled Spirits: Hard liquor such as whiskey, tequila, vodka, etc. sold only in contract Liquor Stores or at Distillery Retail Outlets.

Distilled Spirits Supplier: Any vendor, supplier or manufacturer who supplies distilled spirits to OLCC or requests spirits samples from OLCC.

Distilled Spirits Supply Chain (DSSC): The network of entities and sequence of processes involved in the production, distribution, and sale of distilled spirits in Oregon, for which OLCC intends to manage via the Services procured through this RFP: the Warehouse Management System (WMS), Enterprise Resource Planning (ERP), and Point of Sale (POS) system(s).

Distillery Agent: An individual or business entity with a Distillery License. A person or business entity with a license allowing production and bottling of distilled spirits.

Distillery Retail Outlet: A physical location used by a Distillery Agent to sell distilled spirits.

Enterprise Modernization Program (EMP): OLCC’s program of projects to increase the maturity of systems across multiple divisions including marijuana and liquor licensing and compliance and the distilled spirits supply chain. Modernization across the Agency will increase revenue returned, improve productivity and service levels, decrease paper usage, and improving stakeholder relations.

Freight Carrier: Inbound or outbound freight shipping company.

Inbound: Freight Carrier contracted/hired/managed by distilled spirits suppliers that delivers distilled spirits to the Warehouse.

Integrated or Integrated Solution: seamless tracking of processes and data for all distilled spirits transactions and movement within one or multiple Systems.

Licensee: A business entity or person with an OLCC liquor license. Licensee includes ALL OLCC license types: Brew pubs, wineries, on-premises, distilleries, off-premises, etc.

Liquor Agent: A person or business entity acting as an independent contractor authorized by OLCC to sell distilled spirits at a specific location. A Liquor Agent may or may not ALSO be a Licensee.

Liquor Store: A physical location (store front) used by a Liquor Agent for the sale of distilled spirits.

Listing(s): Products OLCC stocks in the warehouse. Various levels of listings include: regular, trial, limited, holiday, discontinued, vendor discontinued, closeout Special Order, vendor allocated, manufacture only, and seasonal.

Merchant Card Processing: An electronic payment transaction via a gateway or payment processor in which a business sends credit or debit card communications through an electronic terminal to the merchant acquiring bank. The merchant acquiring bank then contacts the branded card processor who contacts the card issuer. Oregon State Treasury administers the statewide master agreement for merchant card services with U.S. Bank/Elavon. This agreement includes acceptance of Visa, Mastercard, Discover, and American Express.

Ongoing Services: Maintenance, support, and call center/sser support Services for the Solution provided by the Contractor post go-live.

Outbound: Freight Carrier contracted by OLCC to pick up product from the Warehouse and deliver it to Liquor Agents.

Production Environment: the hardware, Software, including operating system software, and the system architecture and firmware necessary for the Subscription Services to operate.

Project: means the DSSC Project.

Real-time inventory management: Real-time systems record every transaction (both purchases of new stock as well as outbound orders and all of the associated costs) in real-time.

Retail Services: OLCC staff who provide oversight of contract Liquor Stores from onboarding through resignation/retirement.

Split Case/Repack: Split case picking involves individual products being picked from unique locations and placed directly into shippable cartons to be sent to Liquor Stores.

System(s): Applications or programs that perform a particular set of tasks that can be integrated to provide full Integrated Solution functionality.

Warehouse: OLCC’s physical and logical distribution center/warehouse operations and supply chain management functions including inventory tracking, order tracking, purchasing, distribution, order fulfilment and shipping.

OVERVIEW AND PURPOSE

Agency Overview and Background OLCC is the third largest revenue-generating agency in the state of Oregon. Distilled spirits sales account for approximately 95% of OLCC’s distributable revenue. The remaining 5% comes from license fees and taxes on beer and wine. In 2021-23, OLCC estimates $632 million in liquor revenue will be distributed to the general fund, cities, counties, and alcohol/drug abuse treatment. More than 4,800 Full On-Premises Sales Licensees purchase distilled spirits from one of the contracted Liquor Stores and/or sovereign nations and government institutions.

The Distilled Spirits Program oversees the distribution and sale of distilled spirits in the state. The Distilled Spirits Program division centrally purchases, warehouses and distributes distilled spirits to Oregon's independently operated contract Liquor Stores. As of July 2022, there are approximately 285 Liquor Stores in varying sizes and complexity across the state and nine sovereign nation/government institution accounts. OLCC plans to add 35 more stores within the next 5 years, bringing the total number of Liquor Stores to 320. OLCC manages Oregon’s distilled spirits industry by making spirits available for purchase in an efficient and professional business model through the operation of the Warehouse and oversight of contract liquor stores.

In 2021, the Warehouse shipped approximately four million cases. More than 3,300 stock-keeping units (SKU’s) are regularly stocked in the Warehouse with more than 6,700 total SKU’s being listed at one time in Oregon, including Special Orders and close-outs.

OLCC operates on a Bailment system, where the inventory is co-managed between OLCC’s staff and approximately 1,000 Distilled Spirits Suppliers. The $120+ million of inventory located in the Warehouse is owned by the Distilled Spirits Suppliers and OLCC pays the Distilled Spirits Suppliers for the Distilled Spirits inventory when it is shipped to Liquor Stores. OLCC owns the Distilled Spirits inventory in the Liquor Stores and pays each Liquor Agent base compensation plus commission amounting to approximately 10% of sales.

As identified in the chart below, there are ten different classifications of Liquor Stores on which base compensation formulas are based. Liquor Agents also receive a reduced amount of commission for distilled spirits sales to Licensees as compared to sales to consumers. Liquor Agent compensation is reviewed and updated annually consistent with the Consumer Price Index for all urban consumers, west region (all items), as published by the Bureau of labor Statistics of the United States Department of Labor.

Consumer Sales 8.38%

Licensee Sales 6.54%

Liquor Agents order inventory from the Warehouse and the Warehouse delivers the spirits to the Liquor Stores. OLCC uses about seven different private Freight Carriers to transport product to the contracted Liquor Stores.

Liquor Store orders are picked simultaneously and co-mingled on the conveyor belts until it is time to load onto a Freight Carrier. More than sixty Warehouse employees operate two shifts from 6:00 a.m. to 11:00 p.m. Monday through Friday and some Saturdays. There are currently 45 employees on day shift and 25 employees on swing shift. Agency anticipates a 20% growth in employees following the opening of the new Canby distribution center. The current combined size of the Milwaukie facilities is 224,000 sq ft, approximately 124,000 sq ft at the main warehouse and 100,000 sq ft at the Milport warehouse.

(a) Warehouse Managers: 3 employees

(b) Liquor Distribution Workers: 60+ employees

(c) Maintenance: 2 employees

(d) Warehouse Scheduler: 1 employee

(e) Office Support Staff: 4 employees (Transportation & Inventory Analysis, Freight & Claim Coordinator, Special Order Coordinator, Purchasing Coordinator)

(f) Retail Operations: 1 manager, 6 district managers, 2 administrative employees

(g) Financial Services: 4 managers, 5 auditors, 8 accountants The Distilled Spirits Program also oversees Oregon Distillery Agents who import, manufacture, distill, rectify, blend, or denature distilled spirits that they distribute through OLCC’s Warehouse or sell directly to customers who visit their tasting rooms. Many of the products manufactured by Oregon distilleries are available for order through the split case/repack area, enabling Liquor Stores to carry a sampling of Oregon-based products. There are approximately 70 distillery Licensees operating as Distillery Agents who collectively operate more than 100 Distillery Retail Outlets rooms where they sell their products directly to consumers. Unlike contracted Liquor Stores, OLCC does not own the inventory located in Distillery Retail Outlets. Instead, OLCC reconciles with the Distillery Agent after it is sold to consumers. After the sale, the Distillery Agent retains the cost of goods to OLCC plus a percentage for sales commission. The remainder of the sale is remitted to OLCC.

Project Overview and Background OLCC will procure the Integrated Solution through this RFP to replace the inefficient and disjointed legacy systems currently supporting DSSC. OLCC currently operates on many outdated and unsupported Information Technology (IT) systems, and a variety of paper-only processes in conjunction with hundreds of Excel spreadsheets. OLCC has multiple legacy and stand-alone IT systems. Maintaining and operating the existing disparate systems is time consuming, expensive, and subject to end-of-life issues. The legacy systems and processes are not only outdated but are also segregated, lacking a consistent data flow making the systems susceptible to errors, redundant data entry, and poor data quality. In order to support commerce and revenues generated for the State over the next 10 years, a major retooling of OLCC’s systems is required to achieve long-term goals for high performance service delivery. OLCC is in search of an Integrated Solution that meets the Agency’s current and future (at least over the next 10 years) needs.

OLCC expects the DSSC Project to improve Agency’s IT business systems deficiencies by improving productivity and efficiency by applying business logic, integration and system automation, eliminating manual and paper processes.

The DSSC Project is the second project within OLCC’s Enterprise Modernization Program. The Project will provide a modular software system for the Distilled Spirits Supply Chain. DSSC includes warehouse management, liquor store order and fulfillment, and liquor sales tracking, inventory tracking, purchasing, and distribution. OLCC is in search of a self-service option for both Administration and public users, which allows searching and querying of knowledge base, FAQ lists, and activity history encompassing the following services:

(a) Warehouse Management System (WMS)

(b) Enterprise Resource Planning (ERP)

(c) Point of Sale (POS) OLCC seeks a scalable architecture, one that quickly accommodates growth and adaptation to statutory and regulatory changes affecting the Agency’s operations. Such architecture must also provide automated workflow in and amongst work groups and easily customizable fields, screens, and other data entry points for each affected Agency division based on their unique needs. The preferred solution will offer robust analytics that will allow authorized users to view, aggregate, and report against all data while maintaining separation of data for those with a standard or other user login. Integration will be required among the new enterprise modernization projects (as determined by outcome of RFP), current internal OLCC-built applications, and third-party software systems. The DSSC implementation will require coordination with OLCC’s Warehouse relocation project to relocate Distribution services to property on the corner of 1st and Walnut in Canby, Oregon. The building is planned to be complete for occupation in mid-2025.

Warehouse Management System:

The WMS component of the Integrated Solution will be responsible for tracking inventory in the Warehouse from intake to product being loaded on a truck to be delivered to OLCC’s Liquor Agents. As described above, the Warehouse operates on a Bailment system wherein the product in the Warehouse is owned and managed by a vendor until such time as it is ordered and placed on trucks to be shipped to the Liquor Stores. At that time, OLCC has purchased the product. Because the Bailment inventory is vendor managed, the vendors will need visibility into sales as well as inventory on-hand. Additionally, OLCC needs visibility into what vendors plan to deliver to the Warehouse.

OLCC requires ongoing support services for the WMS for OLCC’s staff as well as support services for external customers (Liquor Agents, Distilled Spirits Suppliers) during all working hours, which are 6:00 a.m. to 11:00 p.m (Pacific Time) seven days per week, 365 days per year.

Enterprise Resource Planning System:

The selected ERP System will provide and maintain a centralized database for Liquor Stores and update official records in near real-time or real-time, including inventory updates, accounting processes, etc. The ERP System will monitor the changing market trends and conditions, which helps OLCC to strategize the launch of new products. This System must provide the ability to send periodic reminders, alarms, and messages to OLCC staff, Distilled Spirits Suppliers, and Liquor Agents to stay updated with the latest information. The anticipated ERP System must be one that seamlessly integrates with the WMS as well as the POS to provide integral business functions for the supply chain, including but not limited to financial, purchasing, inventories, and analytics. Agency seeks a highly intuitive system with minimal training from a user perspective to improve cross departmental performance and efficiency, eliminate or reduce the multiple in-house applications, and eliminate manual tracking of data on disconnected spreadsheets. The goal is to optimize system utilization for all users, improve response times, reduce errors, reduce manual efforts, improve analytical capabilities, and improve customer experience.

OLCC is seeking a highly Integrated Solution that will meet core requirements with minimal modifications. Mandatory modules for the ERP System include the following functionality:

1. Finance management- general ledger/accounting, procurement/purchasing, accounts payable, accounts receivable/miscellaneous billing etc.

1. Supply chain & inventory, management

1. Order and delivery management

1. Logistics management

1. Distilled Spirits Supplier, and Liquor Agent management OLCC requires ongoing support services for the ERP for its staff during business hours of 8:00 a.m. to 6 p.m. (Pacific Time), Monday through Friday.

Point of Sale System:

The selected POS System will be the main link between OLCC and Liquor Agents. This System will allow Liquor Agents to conduct sales transactions, manage inventory, order creation, receiving, etc. This enterprise wide System must allow OLCC to view sales and inventories across all 285 stores, as well as capture monthly sales reports used in calculating agent compensation. Agency is in search of a near real-time or real-time POS System. Although the distilled spirits inventory is owned by the State, the contract Liquor Stores sell other items as well such as lottery, gum, soda, etc. Each Liquor Agent may opt to use the POS System for their other items as well, in which case, OLCC would require only distilled spirits sales data to be segregated and transmitted to the State. All other sales data would remain the property of the Liquor Agent. Each Liquor Agent has the authority to choose which non-distilled spirits items they sell at their Retail Liquor Store. Distilled spirits pricing is set by the Distilled Spirits Suppliers on a monthly basis. The Liquor Agent sets prices for non-distilled spirits items.

Liquor Agents currently have a variety of privately contracted point-of-sale systems implemented in their stores. Presently, they report daily sales and inventory via a flat file transmission to OLCC. OLCC is seeking a modern POS System as an enterprise-wide system across contract Liquor Stores. In 2021, $589,589,051 in sales were run through State bank card machines by 258 stores which includes both distilled spirits and non-distilled spirits sales. This calculates to $1,615,312.47 daily in credit card transactions.

Elavon is the state of Oregon’s merchant card acquirer and currently processes merchant card transactions, credit/debit cards. Check, cash, and giftcard transactions are not processed through Elavon. Elavon acts as the card processor and currently provides INgenico countertop terminals to most Retail Liquor Stores but does not support a POS back-end inventory system or other payment options. There are approximately 15 million merchant card (credit/debit) transactions per year. Gift cards/cash/check are handled through a separate process outside of Elavon’s involvement.

Accepting ACH payments will reduce credit/debit card fees for e-commerce. Licensees receive a 5% discount on distilled spirits purchases and are not allowed to use credit or debit cards to purchase distilled spirits from Liquor Agents. Agency currently only allows Licensee ACH payment from Licensees to Liquor Agents through a third-party vendor. Licensees currently use Fintech as the third-party vendor for ACH payments to Liquor Agents (currently both the Licensee and Liquor Agent have a private agreement with Fintech).

The number of hardware installations at each store varies based on sales volume ranging from one to four. The Agency estimates three hardware installations each for 175 Retail Liquor Stores and 1 hardware installation each for 110 Retail Liquor Stores, however final device counts and prices will be negotiated.

OLCC requires ongoing support services for OLCC’s staff as well as support services for external customers (Liquor Agents, Distilled Spirits Suppliers) during all working hours of 6:00 a.m. to 11:00 p.m. (Pacific Time).

SOLUTION REQUIREMENT DESCRIPTION AND SCOPE OF SERVICES

Solution Requirements The proposed System(s) must address the high-level functional and non-functional requirements found in RFP Attachment H, Solution Requirements. Additionally, the proposed Solution must address requirements found in Section 3.2.7, Security Standards and Section 3.2.12, Statewide Security Standards Response.

Scope of Services The successful Proposer will deliver one Integrated Solution and related Services and hardware that meet OLCC’s needs for its Distilled Spirits Program as referenced in this RFP and its attachments. All systems proposed are required to integrate with each other as an Integrated Solution, in addition to future integration with the conveyor solution. The conveyor solution is not within scope of this RFP.

The awarded Solution is anticipated to include the Services described in RFP Attachment A, Sample Contract, RFP Attachment I, Scopes of Services, and OLCC’s requirements for the awarded Solution in RFP Attachment H, Solution Requirements.

PROCUREMENT REQUIREMENTS AND EVALUATION

MINIMUM REQUIREMENTS

Certified Point of Sale Payment Processing Proposer’s Solution must provide Merchant Card Processing that is Elavon-certified. Proposer’s Proposal must describe either how the proposed Solution’s Merchant Card Processing is certified directly with Elavon and/or TSYS to process cardholder data, or Proposer uses a PCI – compliant payment gateway to process through Elavon and/or TSYS. Proposer must complete and submit Third Party Vendor Information (Attachment L) with its Technical Proposal submission.

This requirement is typically met for merchant cards by using a merchant ID issued by the State’s merchant card services provider and depositing merchant card funds directly into a state account when they are settled after end-of-day processing. Proposer’s cardholder data processing flow diagram should further demonstrate compliance with this requirement.

Minimum Experience and Capabilities Proposer must demonstrate it has a minimum of five years of experience delivering projects comparable to the DSSC Project, i.e., projects with similar size, scope, and/or complexity as the Solution for which Proposer is responding in this RFP. Additionally, Proposer must have at least one comparable system successfully implemented in the past three years. As required in the context of the Administrative Proposal, Proposer must include examples of experience and capabilities of integrating the proposed Solution with other solutions and systems for purposes of data matching and cross-checking compliance.

ROUND 1 PROPOSAL SUBMISSION REQUIREMENTS

A Proposer responding to this RFP must provide one Proposal that must include all elements identified in Section 3.2.1.

Round 1 Proposal Submissions To be considered for evaluation, each Proposal must contain each of the following elements (further detailed in the Proposal Requirements section below):

2. Organization’s Profile

3. Organization’s Experience

a. Performance Narratives

4. Key Personnel Qualifications, Capabilities and Experience

5. Staffing and Management Plan and Organization Chart

a. Security Statement (Statement only, do NOT submit RFP Attachment J (Statewide Information & Cyber Security Standards Spreadsheet))

b. RFP Attachment B, Disclosure Exemption Certificate

c. RFP Attachment C, Proposer Information and Certification Sheet

d. RFP Attachment D, Reference Check Form

e. RFP Attachment F, Certified Disadvantaged Business Certification And Outreach Plan

f. RFP Attachment G, Responsibility Inquiry Form

2. Solution Requirements Spreadsheet (RFP Attachment H)

3. Point-of-Sale Hardware

a. RFP Attachment L, Third Party Vendor Information

b. Value Added Services (Optional)

c. Proposed Underlying Agreements (e.g., end user license agreements (EULA), hosting agreements, maintenance agreements, Service Level Agreements, etc.)

Volume 3:

PRICE PROPOSAL

Proposal Page Limits / Avoid Submitting Poorly Written Proposals There is no page limit on Proposal submissions, but poorly written Proposals will not score well. Poorly written Proposals are characterized by misspellings and grammatical errors, extraneous marketing materials and sales puffery, superfluous content, and other disconnected and irrelevant space filler. Moreover, the Proposal should not include extensive artwork, unusual printing or other materials not essential to the utility and clarity of the Proposal. A Proposer must comprehensively address Requirements with written submissions that are grammatically correct, concise, precise, and relevant. Each Proposal should be straightforward and appropriately address the requirements and requests of the RFP.

Proposal Format and Quantity A Proposal should follow the format and reference the sections listed in RFP Section 3.2, Round 1 Proposal Requirements. Responses to each section and subsection should be well organized, presented in an easy-to-read format, and labeled to indicate the item being addressed. Proposers must submit all volumes requested in compliance with each volume’s content requirements; failure to do so may result in the disqualification of the Proposal as non-responsive. Proposal should not be “poorly written” as defined in RFP Section 3.2.2.

Proposer must submit one copy of its Proposal and all required submissions therein electronically in compliance with the submission procedures outlined in Section 4.5 of this RFP, Proposal Delivery Options. Acceptable electronic formats include the following: Adobe Acrobat (.pdf), Microsoft Word (.doc or .docx), or Microsoft Excel (.xls or .xlsx). Proposer’s Authorized Representative must sign documentation as directed, e.g., RFP Attachment C, Proposer Information and Certification Sheet.

The completed Attachment E, Price Proposal, must be submitted as a separate, stand-alone electronic response file.

If Proposer believes any of its Proposal is exempt from disclosure under the Oregon Public Records Law (ORS 192.311 through 192.478), Proposer shall indicate such on its completed and submitted Disclosure Exemption Affidavit (Attachment B). Proposer shall also mark as “Confidential” in OregonBuys all attachments to its Proposal that Proposer believes are exempt from disclosure and provide a fully redacted version of its Proposal, clearly identified as the redacted version. Note that the final price amount is not exempt from public disclosure.

Authorized Representative Failure of the authorized representative to sign the Proposal may subject the Proposal to rejection by DAS PS as non-responsive.

ROUND 1 PROPOSAL REQUIREMENTS

The Proposal must address each of the items listed in this section and all other requirements set forth in this RFP. Proposer shall describe the Goods to be provided or the Services to be performed or both as in the example of the POS system for required hardware, software, and professional services. A Proposal that merely offers to provide the goods or services as stated in this RFP may be considered non-Responsive to this RFP and will not be considered further.

VOLUME 1: ADMINISTRATIVE PROPOSAL

(Mandatory / Unless otherwise stated in Section 3.3.1, Administrative Proposal components are scored. See, RFP Attachment M, Round 1 Administrative Proposal and Technical Proposal Evaluation.)

Executive Summary In the Executive Summary, briefly describe how the proposed Integrated Solution addresses the high-level requirements listed in this RFP. These requirements form the basis for a comprehensive yet succinct Executive Summary that summarizes the proposed solution, its distinctive features, and how it will fulfill the State’s requirements. In addition summarize:

1. The significant factors of Proposer’s management and technical approach.

2. Where comparable software projects and implementation services have been provided by Proposer.

3. The project management methodology Proposer will use to reduce risk and maximize the success of the Integrated Solution implementation, deployment, and operation.

4. Uniquely compelling features/functionalities offered in the proposed Integrated Solution.

5. If Proposer is planning to propose a subcontracting relationship to meet all Requirements, please describe the unique value of each relationship to the Project’s success.

Proposer’s Organization Profile Proposer must provide a profile of its organization. This is Proposer’s opportunity to give an overview of its organization, describe the structure of its business, and discuss how the organization can effectively deliver the Services described in this RFP. The profile must include at a minimum:

1. Ownership. If incorporated or otherwise organized and registered as a business entity under the laws of a state, the state in which the organization is incorporated or organized, and the date of the incorporation and initial registration;

2. Location of the organization’s offices (headquarters and branches);

3. Location of the office from which employees will be assigned to work on the Project for Agency;

4. Number of employees located in the Pacific Northwest, nationally, and internationally;

5. Established business relationships with proposed subcontractors (e.g., data conversion contractor); and

6. Organization’s client base.

This is Proposer’s opportunity to give an overview of its organization and its history; describe its manner of ownership, size, geographic presence (headquarters and branch office locations) and the structure of its business; depict its current fiscal stability and strategic plan for sustained operations into the future; and the scope of services provided. Such submissions will reveal Proposer’s maturity and operational longevity and discuss how the organization can effectively deliver the Services described in this RFP.

Proposer’s Organization Experience and Capabilities Proposer must demonstrate it has a minimum of five years of experience delivering comparable projects, i.e., projects with similar size, scope, and/or complexity as the Integrated Solution for which Proposer is responding in this RFP. For such demonstration, Proposer must provide at least three comparable experience narratives related to current or former client organizations for which Proposer provided or is providing Services on comparable projects within the last five years. At least one such experience must satisfy the requirement for a comparable system successfully implemented in the past three years. Proposer must include examples of experience and capabilities of integrating the proposed Solution with other solutions and systems for purposes of data matching and cross-checking compliance.

The comparable experience narratives must align with provided Reference Check Forms (RFP Attachment D) Proposer submits as part of this section. Proposer must complete the required Reference Check Forms (estimating what the client reference rating would be).

Proposer shall also send a blank Reference Check Form to each identified client reference asking them to complete and sign the form and submit it directly to the SPC for the procurement by the deadline for Proposal submission (Opening). DAS PS and the Evaluation Committee will assess the Proposer-provided and client reference provided forms, using the client reference provided forms to validate or correct the related Proposer-submitted forms. The client reference provided forms are not separately scored in Round 1. DAS PS may use references to obtain additional information, or verify any information needed. DAS PS may contact any reference (submitted or not) to verify Proposer’s qualifications.

Provided comparable experience narratives must at least include:

1. For each identified client organization, a completed Reference Check Form (RFP Attachment D);

2. Identity and Type of client organization;

3. Client point of contact name, title, email address, and phone number

4. Products/Services Provided to client organization;

5. Contract number;

6. Contract value;

7. Period of performance;

8. Status as prime or subcontractor on the implementation;

9. Summary of services delivered and their applicability to the requested Scope of Services and Requirements for this RFP;

10. Description of size and complexity of the services provided and status of the implementation, e.g., is Proposer still involved with such effort in some capacity; and

11. Any lessons learned that Proposer would apply to the requirements of the work described in this RFP.

Key Personnel Qualifications, Capabilities and Experience In Section 4, Proposer shall specify the proposed Key Persons to be assigned to perform the Services (including subcontractor staff if applicable) and include a current resume for each. Each required resume must demonstrate the individual’s qualifications in the context of the academic and professional certifications and credentials, as well as subject matter experience and expertise, needed to conduct the work described within this RFP. Key Person(s) Requirements and Preferences are:

Requirements:

1. Strong project management, business analysis, budgeting, and financial analysis experience and knowledge.

2. Recent experience, in last three years, and knowledge serving as key advisor and partner with business and IT executives in project management strategy and approaches with multi-million-dollar projects is required including experience in the following:

a. Reviewing, making recommendations, and drafting procedures to implement best practices,

b. Following mature project management practices, and

c. Meeting requirements.

3. Demonstrate Proposer has internal quality control practices for its Key Person(s) to use when reviewing, editing, and providing feedback on projects and project artifacts.

4. Recent experience, in last three years, developing, performing, and facilitating system testing activities.

5. Strong quality control experience and knowledge.

6. Demonstrated experience, within the last three years, in business analysis for complex information technology projects.

7. Demonstrated experience, in the last three years, in data conversion/migration, and system integration.

Preferences:

1. Current Project Management Institute’s Project Management Professional (“PMP”) Certification is required for project management.

2. Experience in Business Analysis Body of Knowledge, version 3 (“BABOK”) guidelines.

3. Bachelor’s degree or higher in computer science, public administration, business management or another relevant field.

4. Strong understanding of public sector environment.

Requirements and preferences may be met by a team of proposed Key Persons; not every indidivual needs to meet all elements. Due to the nature of services, Key Person(s) must be available for some work on-site as the parties deem necessary. Agency’s headquarters office in Milwaukie, Oregon is the designated facility for on-site work, if any.

Staffing and Management Plan and Organizational Chart Proposer shall submit a proposed staffing and management plan, inclusive of an organizational chart, that demonstrates:

1. Proposed team organization structure. Illustrate lines of authority as appropriate.

2. Total full-time equivalent (FTE) employees required to deliver the Scope of Services and a summary of staff skills and qualifications.

3. Affirmation that Proposer’s personnel are solely based in the continental United States and that work will not be performed, or data shared, outside of the continental United States.

4. Plan to propose qualified alternative candidates should a named key personnel position require replacement.

5. Plan to coordinate, direct, and manage the delivery team’s Task execution.

6. Methods to review and correct any quality issues arising from staff engaged on the effort.

7. Plans to regularly review personnel qualifications.

8. System to notify Agency of any changes to Proposer’s team structure.

If Proposer intends to work with subcontractor(s), Proposer shall include a statement detailing any subcontracting firms or individual subcontractors that may be engaged as part of the Proposal to this RFP, with those entities and the Services they will provide clearly identified.

Mandatory Submission of Non-scored Statements and RFP Attachments in Administrative Proposal.

Proposer shall complete and submit with its Administrative Proposal the following Statements and RFP Attachments:

1. Security Statement.

The Proposal must contain a statement pertaining to security checks as described below. This statement is not scored. The statement must demonstrate Proposer's agreement that if awarded a Contract, Proposer and Proposer's staff monitoring the systems who will have access to State systems, facilities, and confidential information will submit to all security checks requested by Agency, which may include fingerprinting and Oregon Law Enforcement Data Systems (LEDS) background checks, and comply with the following State of Oregon security standards:

a. Privileged Access Monitoring and Reporting viewable at: https://www.oregon.gov/das/Policies/107-004-140.pdf

b. Statewide Information and Cyber Security Standards viewable at:

https://www.oregon.gov/das/OSCIO/Documents/2019StatewideInformationAndCyberSecurityStandardsV1.0.pdf

c. Statewide Cloud Computing policy:

http://www.oregon.gov/das/policies/107-004-150.pdf Please see Attachment J, Statewide Information & Cyber Security Standards Spreadsheet at the Moderate Level for a spreadsheet version of the standards referenced in this section. Please note, Attachment J is NOT to be completed and submitted unless a Proposer is invited to a subsequent round.

In addition, in the Security Statement Proposer shall describe the security protections for its proposed Integrated Solution, addressing security for the following areas:

a. If the proposed Solution is for multi-tenant or single tenant hosting.

b. Data storage.

c. Data encryption (at rest and in transit).

d. Access to application layer, and to Agency Data.

e. Role Based Access Control (RBAC).

f. Development and hosting only within the continental United States.

2. Attachment B, Disclosure Exemption Certification.

Proposer shall complete and submit the Disclosure Exemption Certification (Attachment B) as part of the Proposal, even if Proposer is not identifying confidential or proprietary information and data for nondisclosure. If Proposer is identifying items for nondisclosure, Proposer must identify the item or portion of the Proposal that is exempt from disclosure and the basis for the exemption. Proposer must provide an appropriately redacted version of the Proposal (see section 3.2.3).

3. Attachment C, Proposer Information and Certification Sheet.

Proposer shall complete, sign, and submit the RFP Attachment C, Proposer Information and Certification Sheet. Failure to sign RFP Attachment C may result in Proposal rejection. Failure to demonstrate compliance with Oregon Tax Laws may result in an eventual finding of non-Responsibility.

4. Attachment F, Certified Disadvantaged Business Outreach Plan.

Proposer shall complete and submit Certified Disadvantaged Business Outreach Plan (RFP Attachment F).

5. Attachment G, Responsibility Inquiry.

Proposer shall complete and submit Responsibility Inquiry (RFP Attachment G). DAS PS and OLCC will conduct and complete a Responsibility Inquiry with the apparent successful Proposer. Such Proposer may be required to confirm or revised as appropriate its initial RFP Attachment G submission.

RFP Attachments for Reference Only; Not for Submission in Round 1 Administrative Proposal.

The following RFP Attachments are provided for reference, not for Round 1 submission.

1. Attachment A, Sample Contract. Attachment A depicts the contract provisions acceptable to the State. Proposer must closely review the document because it impacts its delivery of Services. With limited exceptions, DAS PS has opened the entire Sample Contract for negotiation with the Proposer selected for Contract Award. The exceptions (listed in RFP Section 5, Award and Negotiation) are matters related to law and regulation with which DAS PS and OLCC must comply and over which they have no authority to change in the context of the procurement. DAS PS may as part of a subsequent round require Competitive Range Proposers to submit redlines to the Sample Contract, which identify the provisions desired for negotiation and suggested insertions and deletions thereto.

2. Attachment J, Statewide Information & Cyber Security Standards…