S000000391 Cost Allocation Financial Examination Auditing and Consulting Services~1.pdf

Rev 11/2023

STATE OF ARKANSAS

DEPARTMENT OF TRANSFORMATION AND SHARED SERVICES

OFFICE OF STATE PROCUREMENT

501 Woodlane St., Ste. 220

Little Rock, Arkansas 72201-1023

REQUEST FOR QUALIFICATION

SOLICITATION DOCUMENT

SOLICITATION INFORMATION

Solicitation Number: S000000391 Solicitation Issued: February 11, 2025

Description: Cost Allocation Financial Examination, Auditing, and Consulting Services

Department: Transformation and Shared Services Division of Information Services

SUBMISSION DEADLINE AND DELIVERY OF RESPONSE DOCUMENTS

Response Opening Date: March 13, 2025 Response Opening Time: 10:00 AM CST

Responses for this Request for Qualification must be submitted through ARBuy, the State’s eProcurement system. It can be accessed at arbuy.arkansas.gov. Responses received after the submission deadline may be rejected as untimely.

LIVE RESPONSE OPENING INFORMATION

Teams Meeting Link: Join the meeting now

Meeting ID: 249 071 081 597

Passcode: id7HN3Dh

Call in (audio only): (501) 244-3310 or find a local number

Phone conference ID: 168 731 549#

TSS OFFICE OF STATE PROCUREMENT CONTACT INFORMATION

TSS OSP Procurement Specialist:

Julie Robnolt Procurement Specialist’s Direct Phone Number:

(501) 371-6070

Email Address: julie.robnolt@arkansas.gov TSS OSP’s Main Number: (501) 324-9316

TSS OSP Website: transform.ar.gov/procurement/ https://arbuy.arkansas.gov/ https://teams.microsoft.com/l/meetup-join/19%3ameeting_NDY4M2NmODUtMjJlOC00MmQyLTk4OTEtOThhMDFkOWFhNzBi%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%22a5e9cf20-c478-4e36-8fed-351f1ae086e2%22%7d https://dialin.teams.microsoft.com/6b6513dc-a034-48d2-8d06-7e711c4ecc0b?id=719036839 mailto:julie.robnolt@arkansas.gov https://www.transform.ar.gov/procurement/

Rev 10/2024

SECTION 1 – INFORMATION AND INSTRUCTIONS

1.1 INTRODUCTION

This Request for Qualifications (RFQ) is issued by the TSS Office of State Procurement (TSS OSP) for the TSS Division of Information Systems (“TSS DIS” or “Department”) to obtain a contract for Cost Allocation Financial Examination, Auditing, and Consulting Services.

1.2 TYPE OF CONTRACT

A. As a result of this RFQ, TSS OSP intends to award a contract to a single Contractor.

B. The anticipated starting date for any contract is May 1, 2025, except that the actual contract start date may be adjusted unilaterally by the State for up to three (3) calendar months. By submitting a signed response to the RFQ, the Prospective Contractor represents and warrants that it will honor its response as being held open as irrevocable for this period.

C. The initial term of a resulting contract will be for one (1) year. Upon mutual agreement by the Contractor and Department, the contract may be renewed by TSS OSP for up to six (6) additional one-year terms or portions thereof, not to exceed a total aggregate term of seven (7) consecutive years.

1.3 DEFINITION OF TERMS [Add specific terms, in alphabetical order, relevant to the Solicitation] A. Unless otherwise defined herein, all terms defined in Arkansas Procurement Law have the same meaning herein.

B. “Prospective Contractor” means a responsive and responsible vendor who submits a response that meets the Requirements and criteria set forth in this Solicitation.

C. The terms “Request for Qualifications,” “RFQ,” and “Solicitation” are used synonymously in this document.

D. “Requirement” means a term, condition, provision, deliverable, Specification, or a combination thereof, that is obligated under the Solicitation, resulting contract, or both.

E. “Shall” and “must” mean the imperative and are used to identify Requirements and Specifications.

F. “Specification” means any technical or purchase description or other description of the physical or functional characteristics, or of the nature, of a commodity or service. “Specification” may include a description of any Requirement for inspecting, testing, or preparing a commodity or service for delivery.

G. “State” means the State of Arkansas. When the term “State” is used herein to reference any obligation of the State under a contract that results from this Solicitation, that obligation is limited to the Department using such a contract.

1.4 SOLICITATION SCHEDULE

For informational purposes, TSS OSP is providing a Solicitation Schedule; however, dates listed and noted with an asterisk (*) are anticipated dates only and are subject to change at the discretion of the State. All times are listed in Central Time.

TABLE A: TENTATIVE SOLICITATION SCHEDULE

ACTIVITY DATE

RFQ Release to Prospective Contractors February 11, 2025

Deadline for Prospective Contractor Questions February 17, 2025, midnight CST

Answers to Questions Posted to ARBuy* February 19, 2025

Response Due Date March 13, 2025, 10 AM CST

Initial Response Evaluation* March 14, 2025

Interviews* March 18-19, 2025

Final Response Evaluation* March 19, 2025

Discussions Kick Off Meeting* March 21, 2025

Finalize Discussions* March 26, 2025

Post Anticipation to Award* March 26, 2025

Award Contract* May 1, 2025

1.5 CLARIFICATION OF SOLICITATION

A. Submit questions requesting clarification of information contained in this Solicitation via the Solicitation posting in ARBuy by the date and time listed in Table A.

1. For each question submitted, Prospective Contractor should reference the specific Solicitation item number to which the question refers, as applicable.

2. Prospective Contractors’ written questions will be consolidated and answered by the State as deemed appropriate. The State’s consolidated written response is anticipated to be posted to the Solicitation posting in ARBuy by the date and time specified in Table A. If Prospective Contractor questions are unclear or non-substantive in nature, the State may request clarification of a question(s) or decline to answer.

B. The Prospective Contractor should notify the TSS OSP Procurement Specialist of any Requirements that preclude the Prospective Contractor from submitting a response that meets the Requirements and criteria set forth in this Solicitation.

C. Prospective Contractors may contact the TSS OSP Procurement Specialist with non-substantive questions at any time prior to the response opening.

D. An oral statement by TSS OSP will not be part of any contract resulting from this Solicitation and may not reasonably be relied on by any Prospective Contractor as an aid to interpretation unless it is reduced to writing and expressly adopted by TSS OSP.

E. Only an addendum written and authorized by the State will modify the Solicitation.

1.6 RESPONSE DOCUMENTS

A. All responses must be submitted through ARBuy, the State’s eProcurement system. The system can be accessed at arbuy.arkansas.gov.

1. Prospective Contractors must be registered in ARBuy to submit responses.

B. Response Packet

1. Prospective Contractors shall utilize the Response Packet to submit their responses.

2. The following items are response submission Requirements and must be submitted as part of a Prospective Contractor’s response.

a. Signed Response Signature Page; signature may be ink or digital.

b. Response to the Information for Evaluation sections included in the Response Packet, which must be in the English language.

c. Copy of Prospective Contractor’s Equal Opportunity Policy

i. Pursuant to Arkansas Code Annotated § 19-11-104, OSP requires a Prospective Contractor responding to a Solicitation to submit a copy of the Prospective Contractor’s Equal Opportunity (EO) Policy.

https://arbuy.arkansas.gov/bso/view/login/login.xhtml

ii. Prospective Contractors not required by law to have an EO Policy must submit a written statement to that effect.

d. Proposed Subcontractors Form (see SRV-1, section 14)

e. Recommended Options Form

i. The Recommended Options form included in the Response Packet allows Prospective Contractors to identify any recommended options or optional service ideas that may benefit the State that were not included in the Requirements and the proposed solution.

3. The following items, which must be submitted prior to a contract award to the Prospective Contractor, may also be included with the Prospective Contractor’s response:

a. EO 98-04 Contract & Grant Disclosure Form (see SRV-1, section 11)

b. Voluntary Product Accessibility Template (VPAT), if applicable

4. Prospective Contractors should not include any other documents or ancillary information, such as a cover letter or promotional marketing information.

C. Prospective Contractors shall not include pricing in their responses.

1. Should the Prospective Contractor’s response contain any pricing, the response may be rejected.

D. Redacted Copy of the Response Packet

1. One (1) redacted (marked Redacted) copy of the Prospective Contractor’s response (see Proprietary Information), if applicable.

E. Prospective Contractors should not alter any language in Solicitation document(s) provided by the State.

F. As requested, Prospective Contractors shall provide clarification regarding Prospective Contractor’s response.

G. Prospective Contractors may submit multiple responses.

https://transform.ar.gov/procurement/forms-and-reporting/#:~:text=Services%20Contract%20(SRV%2D1)%20Fillable%20Form https://transform.ar.gov/procurement/forms-and-reporting/#:~:text=Services%20Contract%20(SRV%2D1)%20Fillable%20Form https://www.section508.gov/sell/vpat/

SECTION 2 –REQUIREMENTS

2.1 OBJECTIVES AND GOALS

In accordance with A.C.A. § 19-11-801 and the policies and procedures established by the Arkansas Office of State Procurement, the Arkansas Division of Information Systems (DIS) is issuing a Request for Qualifications to obtain a professional services contract for a qualified accounting firm to perform a limited examination of the agency’s cost allocation plan and express an opinion as to whether DIS has complied with criteria outlined in 2 CFR Part 200 and the Statewide Cost Allocation Plan (SWCAP), and to provide financial auditing and consulting services to the agency.

2.2 BACKGROUND AND CURRENT ENVIRONMENT

DIS operates as an internal service fund. All services provided to customers have to be charged back on a cost recovery basis in compliance with State and Federal regulations. To comply with the cost allocation guidelines established by 2 CFR Part 200 and the Statewide Cost Allocation Plan (SWCAP), DIS has developed a cost allocation plan. The plan is used to identify the actual costs for twenty-seven

(27) categories of service provided by DIS to its customers. All costs, both direct and indirect, are allocated to the appropriate category of service cost pools. DIS uses cost data, category of service revenue data, and service volume levels to establish appropriate service rates.

The DIS cost allocation plan was developed with the premise that all costs are either direct or indirect.

Direct costs are defined as costs that are directly identifiable to a category of service. Indirect costs are defined as costs that are not directly identifiable to a category of service. Indirect costs are allocated to specific categories of service based upon predetermined allocation criteria.

DIS corrects over recoveries of cost by category of service in accordance with guidelines established by the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards (Uniform Guidance). Rates are developed for each category of service provided by DIS to its customers.

Rates are reviewed and adjusted annually to reduce the magnitude of over and under recoveries of cost and to reduce any extra fund balances.

2.3 PROSPECTIVE CONTRACTOR MINIMUM QUALIFICATIONS

A. The Prospective Contractor shall have a minimum of ten (10) years of experience providing services of a similar size and scope as set forth in the requirements of this RFQ.

B. The Prospective Contractor shall have extensive experience and expertise regarding Uniform Guidance and related audit procedures, specifically in relation to criteria outlined in 2 CFR Part 200, Appendix XI Compliance Supplement.

C. The Prospective Contractor shall have a minimum of ten (10) years of experience performing audits and examinations of accounting systems, transactions, procedures, and controls in accordance with the standards established by the American Institute of Certified Public Accountants.

D. The Prospective Contractor shall have a minimum of ten (10) years of experience and skills regarding the following:

1. Government cost accounting

2. Negotiation and litigation

3. Rate setting and rate development

4. Financial reconciliation processes

5. Data analysis

6. Problem-solving

7. Oral and written communications

8. Microsoft Excel https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.dfa.arkansas.gov/office/intergovernmental-services/statewide-cost-allocation-plan-and-indirect-costs-swcap/ https://www.federalregister.gov/documents/2013/12/26/2013-30465/uniform-administrative-requirements-cost-principles-and-audit-requirements-for-federal-awards https://www.whitehouse.gov/wp-content/uploads/2024/05/2024-Compliance-Supplement-V1.pdf https://www.whitehouse.gov/wp-content/uploads/2024/05/2024-Compliance-Supplement-V1.pdf https://www.aicpa-cima.com/home

E. The Prospective Contractor shall have provided services of a similar size and scope as described in this RFQ to a minimum of three (3) organizations.

2.4 GENERAL REQUIREMENTS

A. The Contractor shall ascertain if fund balances are computed in accordance with applicable cost principles per 2 CFR Part 200.

B. The Contractor shall ascertain if working capital reserves are within the allowable range per 2 CFR Part 200.

C. The Contractor shall ascertain if adjustments to rates are made when there is a difference between revenue generated by each billed service and the actual allowable costs.

D. The Contractor shall perform a test of controls to ensure that all users of services are billed in a consistent manner.

E. The Contractor shall perform a test of controls to ensure that billing rates exclude unallowable costs in accordance with applicable cost principles per 2 CFR Part 200 and other applicable laws.

F. The Contractor shall make recommendations regarding controls, calculation methodologies, and treatment of over recoveries of cost in accordance with 2 CFR Part 200 and other applicable laws.

2.5 EXAMINATION REQUIREMENTS

A. The Contractor shall conduct the examination to test the DIS cost allocation plan, Section II, and must use the criteria specified in 2 CFR Part 200, Appendix XI, Part 3 of the U.S. OMB Compliance Supplement. The examination will not include a detailed inspection of every transaction.

B. The Contractor shall conduct the examination in accordance with attestation standards established by the American Institute of Certified Public Accountants and must include tests of records and procedures.

2.6 STAFFING PLAN REQUIREMENTS

A. The Contractor shall provide a Staffing Plan during the Discussions phase. The Staffing Plan must, at minimum, meet the requirements set forth in this section of the RFQ. The Contractor shall include in the Staffing Plan key personnel with sufficient experience to accomplish the requirements set forth in this RFQ.

B. The Contractor shall provide key personnel who are licensed Certified Public Accountants, have been employed by the Contractor for a minimum of six (6) months, and have been employed by no more than three (3) employers in the last five (5) years.

C. Prior to award, the Contractor shall submit proof of active licensure by the appropriate board having jurisdiction for each of the key personnel on the team.

D. The Contractor shall provide and maintain sufficient staffing resources to provide timely service for the life of any resulting contract.

E. Prior to award, the Contractor shall provide proof of background checks for all key personnel involved in any aspect of the services described in this RFQ at the Contractor’s expense as a requirement of any resulting contract.

F. DIS will have the right to refuse personnel based on the results of the background checks.

G. The Contractor may add or replace key personnel at any time during the term of any resulting contract, subject to new members being properly licensed and acceptable to DIS.

2.7 MANAGEMENT PLAN REQUIREMENTS

A. The Contractor shall provide a Management Plan during the Discussions phase. The Management

Plan must, at minimum, meet the requirements set forth in this section of the RFQ.

B. The Management Plan must include the objectives, scope of work, and key risks.

https://www.whitehouse.gov/wp-content/uploads/2024/05/2024-Compliance-Supplement-V1.pdf https://www.whitehouse.gov/wp-content/uploads/2024/05/2024-Compliance-Supplement-V1.pdf https://www.aicpa-cima.com/home

C. The Management Plan must include a timeline detailing important milestones such as the planning phase, fieldwork phase, reporting phase, etc.

D. The Management Plan must include resource allocation such as travel, software, tools, external expertise needed, etc.

E. The Management Plan must include risk assessment and controls, i.e., risks that may impact the audit process, the organization’s internal controls, etc.

F. The Management Plan must include the audit methodology, i.e., audit approach, outline of data collection, the system used to document audit procedures, findings, and evidence, etc.

G. The Management Plan must include a communication plan, i.e., the plan for keeping the agency updated throughout the process, exit meeting to review initial findings before audit report is issued, etc.

H. The Management Plan must include reporting and follow-up processes, i.e., structure and format of the audit report, post-audit review, etc.

I. The Management Plan must include quality assurance and review processes, i.e., the system used to review audit work for accuracy, thoroughness, and compliance, final review and approval of report by appropriate individuals, etc.

J. The Contractor shall document and track the engagement requirements using quality control methods that comply with all regulatory review agency submittal and approval requirements per 2 CFR Part 200.

K. The Contractor shall provide the format(s) that will be used to gather, document, distribute, and follow up on engagement requirements and milestones.

2.8 TRAVEL REQUIREMENTS

A. The Contractor shall be responsible for any travel expenses that may be required for any resulting contract.

2.9 PERFORMANCE STANDARDS

A. State law requires that contracts for services include Performance Standards for measuring the overall quality of services that a Contractor shall provide.

B. The State may be open to negotiations of Performance Standards prior to contract award, prior to the commencement of services, or at times throughout the contract duration.

C. Performance Standards shall not be amended unless they are agreed to in writing and signed by the parties.

D. Failure to meet the minimum Performance Standards as specified will result in the assessment of damages.

E. In the event a Performance Standard is not met, the Contractor will have the opportunity to defend or respond to the insufficiency. The State has the right to waive damages if it determines there were extenuating factors beyond the control of the Contractor that hindered the performance of services. In these instances, the State has final determination of the performance acceptability.

F. Should any compensation be owed to the Department due to the assessment of damages, the Contractor shall follow the direction of the Department regarding the required compensation process.

SECTION 3 – SELECTION

3.1 SELECTION PROCESS

A. TSS OSP will review each Response Packet to verify Submission Requirements have been met.

Response Packets that do not meet Submission Requirements will be rejected and will not be evaluated.

B. A Department-appointed Evaluation Committee will evaluate and score qualifying responses.

Evaluation will be based on Prospective Contractor’s response to the Information for Evaluation section included in the Response Packet.

1. Members of the Evaluation Committee (Evaluators) will individually review and evaluate responses and complete an Individual Score Worksheet for each response. Individual scoring for each Evaluation Criteria will be based on the following Scoring Description.

TABLE C: SCORING TABLE

SCORE DESCRIPTION

The response provides metrics clearly establishing that the Prospective Contractor is reliable and capable of fully performing the required services.

The response provides metrics suggesting that the Prospective Contractor’s level of performance may be acceptable, but it does not clearly establish that the Prospective Contractor is reliable and capable of fully performing the required services.

The response provides metrics clearly establishing that the Prospective Contractor is unreliable and incapable of fully performing the required services.

2. After initial individual evaluations are complete, the Evaluators will meet to discuss their individual scores. At the initial consensus meeting, each Evaluator will be afforded an opportunity to discuss his or her score for each evaluation criteria.

3. After Evaluators have had an opportunity to discuss their individual scores with the committee, the Evaluators will be given the opportunity to change their initial individual scores, if they feel that is appropriate.

4. The final individual scores of the Evaluators will be recorded on the Pre-Interview Consensus Scoresheets and averaged to determine the group or consensus score and rank for each response.

5. Other agencies, consultants, and experts may also examine documents at the discretion of the Department.

C. Prospective Contractors submitting responses will be contacted by TSS OSP to schedule an interview.

1. Prospective Contractors shall attend the interview as scheduled by TSS OSP.

2. Evaluators will complete an Individual Score Worksheet for each interview. Evaluation will be based on Prospective Contractor’s responses to questions presented during the interview Individual scoring for each interview will be based on the Scoring Descriptions in 3.1.B.1.

3. During a final consensus meeting, after all interviews are complete, Evaluators will have the opportunity to discuss the interviews and change their individual interview scores on the Consensus Scoresheet, if they feel that is appropriate.

4. The final individual scores of the Evaluators will be recorded on the Consensus Scoresheets and averaged to determine the group or consensus score and rank for each response.

D. Should the State request clarification and/or additional information Prospective Contractors’ responses, Prospective Contractors shall provide clarification and/or additional information as specified by the State.

E. TSS OSP will submit responses received from the interviewed Perspective Contractors, along with the Evaluation Committee’s recommendation, to the Department for review and approval to move into Discussions.

3.2 RESPONSE SCORE

A. The Information for Evaluation section has been divided into subsections.

1. Each subsection has been assigned a maximum point value of ten (10) points. The total point value for each subsection is reflected in the table below as the Maximum Raw Points Possible.

2. The Department has assigned Weighted Percentages to each subsection according to its significance.

INFORMATION FOR EVALUATION

SUBSECTIONS

MAXIMUM

RAW

POINTS

POSSIBLE

SUBSECTION’S

WEIGHTED

PERCENTAGE

* MAXIMUM

WEIGHTED

SCORE

POSSIBLE

Experience 10 20% 200

Solution 10 30% 300

Risk 10 20% 200

Interview 10 30% 300

Total Response Score 40 100% 1000

*Subsection’s Percentage Weight x Total Response Maximum Weighted Score = Maximum Weighted Score Possible for the subsection.

B. The response’s weighted score for each subsection will be determined using the following formula:

(A/B)*C =D

A = Actual Raw Points received for subsection in evaluation

B = Maximum Raw Points possible for subsection

C = Maximum Weighted Score possible for subsection

D = Weighted Score received for subsection

C. The response’s weighted scores for subsections will be added to determine the Total Weighted Score for the response.

3.3 EXPLANATION OF THE SUBSECTIONS OF THE RESPONSE

A. Experience

1. The Experience subsection included in the Response Packet allows Prospective Contractors to differentiate themselves based on their qualifications, experience, and understanding of the State’s specific needs.

2. Prospective Contractors should identify expertise in the form of a claim and provide relevant experience to support each claim.

3. Prospective Contractors should use verifiable metrics (number of accounts, size of accounts, years of experience, customer satisfaction ratings) to support each claim.

B. Solution

1. The Solution subsection included in the Response Packet allows Prospective Contractors to differentiate themselves based on their proposed solution and/or approach to solve the State’s specific needs.

2. Prospective Contractors should provide a high-level overview of the Prospective Contractor’s proposed solution and/or approach to services using the Requirements outlined in the RFQ.

3. Proposed solutions should be non-technical and include the Prospective Contractor’s recommendations for meeting the objectives and Requirements of the RFQ.

4. Additional service options and recommendations above and beyond those included in proposed solution should be included in the Recommended Options Form.

C. Risk

1. The Risk subsection included in the Response Packet allows Prospective Contractors to identify and prioritize major risks that they reasonably foresee could potentially prevent or impair the Prospective Contractor’s delivery of the service or solution as offered in the response or to otherwise fail to meet the State’s desired outcome, specifications, and performance standards, and how they will mitigate, manage, and/or minimize each risk listed.

a. Prospective Contractors should include sources, causes, or actions that are both within and beyond the control of the Prospective Contractors that they reasonably foresee may cause cost increases, delays, amendments, or dissatisfaction to the State.

b. Risks should be described in simple, clear, and non-technical terms.

c. Prospective Contractor should explain how the Prospective Contractor will mitigate, manage, and/or minimize each risk listed.

i. The Documented Performance cell should include details such as how many times any identified risk was previously mitigated and the impact on the Prospective Contractor’s performance in terms of time, cost, and client satisfaction.

D. Interview

1. The Interview will allow Prospective Contractors to further demonstrate their experience in providing the services outlined in the RFQ.

a. Each Prospective Contractor meeting the Submission Requirements will be contacted by TSS OSP to schedule an interview. Prospective Contractors shall attend the interview as scheduled by TSS OSP.

b. Prospective Contractors shall identify one (1) Project Lead at the time of interview confirmation who shall attend the interview as part of the evaluation process.

c. The Evaluation Committee will interview the Prospective Contractor’s identified Project Lead using a pre-determined set of interview questions. Follow up questions may be asked based on responses given by the Project Lead.

3.4 DISCUSSIONS

A. The State will move forward into Discussions with the responsible Prospective Contractor(s) whose response(s) have been determined to be reasonably susceptible to being selected for award.

B. Discussions may be conducted with the highest-ranking Prospective Contractor based on the Total Response Score for each response or with multiple Prospective Contractors reasonably susceptible of being awarded a contract.

C. Should the State choose to engage in Discussions with the highest-ranking Prospective Contractor, the Prospective Contractor invited to participate in Discussions shall provide all documents required during Discussions.

1. Should the Department determine, through the Discussions process, that the Prospective Contractor’s solution, approach, timelines, deliverables, expectations of the State, or a combination thereof make the Prospective Contractor no longer reasonably susceptible of being awarded a contract, the Department may abandon Discussions with that Prospective Contractor through a written justification to TSS OSP, and may proceed to additional rounds of Discussions with the next highest-ranking Prospective Contractor.

D. Should the State choose to engage in Discussions with multiple Prospective Contractors contemporaneously, each Prospective Contractor invited to participate in Discussions shall provide all documents required during Discussions.

1. Should a Prospective Contractor not provide the required documents within timeframes requested by TSS OSP or choose not to engage in the Discussions process, the Prospective Contractor’s proposal will be considered withdrawn and will not be subject to further consideration in the Solicitation process.

E. If Discussions necessitate material revisions of responses, each responsible Prospective Contractor reasonably susceptible of being awarded a contract will be provided an opportunity to revise its response for the purpose of submitting a best and final offer.

F. During the Discussions Kick Off Meeting, the Prospective Contractor shall provide the following documents to the State:

1. A detailed scope of work clearly identifying the Prospective Contractor’s understanding, implementation, and performance of services required in this RFQ, including all activities required by the Contractor and all activities expected by the State/Participating Entities

2. A Risk Management Plan intended to mitigate any risks, including but not necessarily limited to, the risks identified in the Risk Plan submitted in the Prospective Contractor’s Response Packet

3. A proposed financial summary, including:

a. The Prospective Contractor’s proposed pricing structure and the Recommended Options Form submitted in the Prospective Contractor’s Response Packet

b. A proposed payment schedule

4. Proposed project management and reporting templates

G. During the Discussions Kick Off Meeting, the Prospective Contractor shall address questions and/or concerns the State may have to the satisfaction of the State.

H. During Discussions, the Prospective Contractor shall revise the discussions documents until agreement is made and the State has provided final approval.

1. The Prospective Contractor shall attend follow up Discussions meeting as determined necessary by the State. Reasonable effort will be made to accommodate scheduling conflicts.

I. During Discussions, the Prospective Contractor shall present a final draft of the Discussions documents to the State, including, at minimum:

1. A summary of all plans and scope of work developed during the discussions process and mutually agreed upon by the State and the Prospective Contractor

2. A detailed scope of work clearly identifying the Prospective Contractor’s implementation and performance of services required in this RFQ, including all provisions negotiated and agreed upon by the State and the Prospective Contractor since the Discussions Kick Off Meeting

3. Description of deliverables in terms of simplified metrics

4. The Risk Management Plan

5. Project management and reporting templates

6. Financial summary, including:

a. Final negotiated pricing

b. A list of agreed upon and accepted recommended options (with impact to price)

c. A payment schedule

d. Contact information for the Prospective Contractor’s key personnel

J. During Discussions, the Prospective Contractor shall present the final drafts of the items and shall summarize the coordination and planning completed during the discussion process.

K. Once approved by the State, final drafted documents will become part of the resulting contract.

L. The Prospective Contractor may determine which key personnel will attend the Discussions meetings.

3.5 ANTICIPATION TO AWARD

A. Contract will be awarded to the highest-ranking, responsible Prospective Contractor.

B. Once an anticipated Contractor has been determined, the anticipated award will be posted to the Solicitation posting in ARBuy by the date and time listed in Section 1.4, Table A.

1. It is the responsibility of Prospective Contractors to check the ARBuy website for the posting of an anticipated award.

C. Anticipated awards will generally be posted for a period of fourteen (14) days prior to the issuance of a contract. These notices are anticipated awards only and are subject to protest.

D. A contract resulting from this Solicitation is subject to State review and approval processes prior to award, which may include Legislative review.

3.6 PROSPECTIVE CONTRACTOR ACCEPTANCE OF EVALUATION TECHNIQUE

The submission of a Response Packet signifies the Prospective Contractor’s understanding and agreement that some subjective value judgments will be made during the evaluation and scoring of the responses.

SECTION 4 – SOLICITATION TERMS AND CONDITIONS

4.1 ACCEPTANCE OF REQUIREMENTS

A. A Prospective Contractor’s past performance with the State may be used to determine if the

Prospective Contractor is responsible (OSP Rule R1:19-11-235).

1. Responses submitted by Prospective Contractors determined to be non-responsible will be rejected.

B. A single Prospective Contractor must be identified as the prime contractor.

1. The prime Contractor shall be responsible for the resulting contract and jointly and severally liable with any of its subcontractors, affiliates, or agents to the State for the performance thereof.

C. By submission of a response, the Prospective Contractor represents and warrants:

1. That any prices in the response have been arrived at independently, without any collusion with another competing Prospective Contractor.

a. Collusion violates Arkansas Procurement Law and can lead to suspension, debarment, and can be referred to the Attorney General’s officer for investigation and appropriate legal action (Arkansas Code Annotated § 19-11-240 and 19-11-245).

2. That the Prospective Contractor has not retained a person to solicit or secure the resulting contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except for retention of bona fide employees or bona fide established commercial selling agencies maintained by the Prospective Contractor for the purpose of securing business.

D. Prospective Contractor should not discuss the Solicitation or proposal response, issue statements or comments, or provide interviews to public media during the Solicitation and award process.

E. Qualifications, services, and commodities must meet or exceed the required Specifications as set forth in the Solicitation.

F. The State will not pay costs incurred in the preparation of a response.

4.2 GENERAL TERMS AND CONDITIONS

A. The Contractor must be registered as a vendor to receive payment and may register online by visiting ark.org/vendor/index and clicking the Start Here button.

B. All payments to the Contractor under a resulting contract shall be made exclusively through ACH (Automated Clearing House) direct deposit.

1. The Contractor shall provide the necessary banking information, including account number, routing number, and any other details required to facilitate ACH direct deposits.

2. The Contractor shall be responsible for ensuring that the provided banking information is accurate and up to date. Any delays or errors in payment caused by incorrect or outdated information provided by the Contractor shall not be the responsibility of the Department.

3. The Department will process payments according to the agreed payment schedule, and all payments made via ACH direct deposit shall be considered as duly received upon successful transmission to the Contractor’s designated bank account.

C. Pursuant to Arkansas State Procurement Law, the Contractor shall certify that, unless they offer to provide the goods or services for at least twenty percent (20%) less than the lowest certifying Prospective Contractor:

1. They are not engaged in and shall not, during the aggregate term of the resulting contract, engage in a boycott of Israel (Arkansas Code Annotated § 25-1-503), https://www.ark.org/vendor/index.html?_ga=2.231672543.1782009942.1693919943-292160598.1646079585

2. They are not engaged in and shall not, during the aggregate term of the resulting contract, engage in a boycott of an Energy, Fossil Fuel, Firearms, or Ammunition Industry (Arkansas Code Annotated § 25-1-1102).

D. Pursuant to Arkansas Procurement Law, the Contractor shall certify that the Contractor does not knowingly employ or contract with illegal immigrants and that the Contractor shall not knowingly employ or contract with illegal immigrants during the aggregate term of any contract with the State or any of its departments, institutions, or political subdivisions (Arkansas Code Annotated § 19-11-105).

E. Specifications, drawings, technical information, dies, cuts, negatives, positives, data, other such item furnished by the State to the Contractor, or a combination thereof hereunder or in contemplation hereof or developed by the Contractor for use hereunder shall:

1. Remain property of the State.

2. Be kept confidential as permitted or required by law.

3. Be used only as expressly authorized.

4. Be returned at the Contractor's expense to the F.O.B. destination point provided by the State, as requested by the State.

5. The Contractor shall properly identify items being returned.

F. The Contractor shall invoice the State as required by the Department and should not invoice the State in advance of delivery and acceptance of any commodities or services (Arkansas Code Annotated § 19-4-1206).

1. The Contractor should invoice the agency by an itemized list of charges. The Department’s purchase order number and/or the contract number should be referenced on each invoice.

2. Payment will be made in accordance with applicable State of Arkansas accounting procedures upon acceptance of commodities and services by the Department.

3. Payment will be made only after the Contractor has successfully satisfied the Department as to the reliability and effectiveness of the commodities or services purchased as a whole.

G. The Contractor should be able to accept the State’s authorized VISA Procurement Card (p-card) as a method of payment. Price changes or additional fee(s) must not be levied against the State when accepting the p-card as a form of payment.

H. The Prospective Contractor shall certify that they are not a company owned in whole or with a majority ownership by the government of the People's Republic of China (a “Scrutinized Company”) and that they do not and shall not during the aggregate term of the resulting contract employ a Scrutinized Company as a contractor (Arkansas Code Annotated § 25-1-1203).

I. This RFQ incorporates all terms of the Services Contract (SRV-1) Fillable Form (found here).

1. The contract template is attached to the Solicitation in ARBuy as a sample for your information only.

2. A Prospective Contractor’s response may be rejected if a Prospective Contractor takes exception to any terms, conditions, or Requirements in this RFQ.

J. Prospective Contractor agrees and shall adhere to all terms, conditions, and Requirements if selected as the Contractor.

1. Items may only be modified if the legal requirement is satisfied and approved by the State during negotiations.

4.3 MINORITY AND WOMEN-OWNED BUSINESS

https://transform.ar.gov/procurement/forms-and-reporting/#:~:text=Services%20Contract%20(SRV%2D1)%20Fillable%20Form

A. A minority-owned business is defined by Arkansas Code Annotated § 15-4-303 as a business owned by a lawful permanent resident of this State who is:

• African American

• American Indian

• Asian American

• Hispanic American

• Pacific Islander American

• A Service-Disabled Veteran as designated by the United States Department of Veteran Affairs

B. A women-owned business is defined by Act 1080 of the 91st General Assembly Regular Session 2017 as a business that is at least fifty-one percent (51%) owned by one (1) or more women who are lawful permanent residents of this State.

C. The Arkansas Economic Development Commission conducts a certification process for minority-owned and women-owned businesses. If certified, the Prospective Contractor’s Certification Number should be included on the Response Signature Page.

4.4 PROPRIETARY INFORMATION

A. The release of public records is governed by the Arkansas Freedom of Information Act (Arkansas

Code Annotated § 25-19-101 et. seq.).

B. Submission documents pertaining to the Solicitation become the property of the State and may be subject to the Arkansas Freedom of Information Act (FOIA).

C. In accordance with FOIA, and to promote maximum competition in the State competitive sealed bidding, the State may maintain the confidentiality of certain types of information described in FOIA.

Such information may include trade secrets and other information exempted from public disclosure pursuant to FOIA.

D. Under no circumstances will pricing information submitted in response to an invitation for sealed bids be designated as confidential after the sealed bids have been opened.

E. Consistent with and to the extent permitted under FOIA, any Prospective Contractor may designate appropriate portions of a response as confidential by submitting a redacted copy of the bid. By so redacting any information contained in the bid, the Prospective Contractor warrants that, after having received such necessary or proper review by counsel or other knowledgeable advisors, it has formed a good faith opinion that the portions redacted are not considered public records under FOIA.

F. If a Prospective Contractor deems part of the information contained in a response not to be a public record, the Prospective Contractor should submit one (1) complete copy of the submission documents from which any proprietary or confidential information has been redacted in their response. Except for the redacted information, the redacted copy must be identical to the original copy, reflecting the same pagination as the original and showing the space from which information was redacted.

G. The Prospective Contractor is responsible for identifying all proprietary information and for ensuring the electronic copy is protected against restoration of redacted data.

H. The redacted copy will be open to public inspection under the FOIA without further notice to the Prospective Contractor. If the State deems redacted information to be subject to a public record request under FOIA, the State will endeavor to notify the Prospective Contractor prior to release of the redacted record.

I. The State has no liability to a Prospective Contractor with respect to the disclosure of Prospective Contractor’s confidential or proprietary information ordered by a court of competent jurisdiction pursuant to FOIA or other applicable law.