S000000416 Financial Advisor Services ANRC RFP .pdf

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 PROPOSAL

SOLICITATION DOCUMENT

SOLICITATION INFORMATION

Solicitation Number: S000000416 Solicitation Issued: April 16, 2025

Description: Financial Advisor Services

Department: Department of Agriculture, Arkansas Natural Resources Commission (ANRC)

SUBMISSION DEADLINE AND DELIVERY OF RESPONSE DOCUMENTS

Proposal Opening Date: May 9, 2025 Proposal Opening Time: 3:00 PM, Central Time

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

LIVE PROPOSAL OPENING INFORMATION

Teams Meeting Link: Join the meeting now

Meeting ID: 250 686 079 672 8

Passcode: 5ox94NR3

Call in (audio only): 501.244.3310 or find a local number

TSS OFFICE OF STATE PROCUREMENT CONTACT INFORMATION

TSS OSP Procurement Specialist:

Hanan Malak Procurement Specialist’s Direct Phone Number:

501-324-9320

Email Address: Hanan.Malak@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_ZDQxMjFmYjktYWJjYy00OTk4LWIzNTUtYWI4NzA2MWRlNTJj%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%224953e672-c9b3-48de-b1c3-e255558b60b3%22%7d https://dialin.teams.microsoft.com/6b6513dc-a034-48d2-8d06-7e711c4ecc0b?id=719036839 mailto:Hanan.Malak@arkansas.gov https://www.transform.ar.gov/procurement/

Rev 12/2024

SECTION 1 – GENERAL INFORMATION AND INSTRUCTIONS

1.1 PURPOSE

This Request for Proposal (RFP) is issued by the TSS Office of State Procurement (TSS OSP) for the Department of Agriculture, Arkansas Natural Resources Commission (ANRC) to obtain proposals and a contract for a financial advisor to provide advice and assistance with the financial management of the G.O. Bond Program and assist with other related matters as needed.

Contract(s) will be awarded to the Prospective Contractor determined to have submitted the proposal that is the most advantageous to the State. Direct all questions, comments, or concerns regarding this solicitation to the TSS OSP, not the Department.

1.2 TYPE OF CONTRACT

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

B. The anticipated starting date for any resulting contract is July 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 proposal in response to the RFP, the Prospective Contractor represents and warrants that it will honor its proposal as being held open as irrevocable for this period.

C. The initial term of a resulting contract will be for three (3) years. Upon mutual agreement by the Contractor and Department, the contract may be renewed by TSS OSP for up to four (4) additional one-year terms or portions thereof, not to exceed a total aggregate contract term of seven (7) consecutive years.

1.3 DEFINITION OF TERMS

A. Unless otherwise defined herein, all terms defined in Arkansas Procurement Law have the same meaning herein.

B. “Prospective Contractor” means a responsible offeror who submits a proposal in response to this Solicitation.

C. The terms “Request for Proposal,” “RFP,” 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. “Responsive Proposal” means a proposal submitted in response to this Solicitation that conforms in all material respects to this RFP.

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

G. “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.

H. “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.

I. “Bond Issuance Team” means any or all of the following: underwriter, bond counsel, bond registrar, paying agent, trustee, rebate calculations firm, escrow agent, and any other professional relative to a related bond transaction.

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

RFP Release to Prospective Contractors April 16, 2025

Deadline for Prospective Contractor Questions April 22, 2025

Answers to Questions Posted to ARBuy* April 25, 2025

Proposal Due Date May 9, 2025

Initial Proposal Evaluation* May 12, 2025

Interviews* May 15 – May 16, 2025

Final Proposal Evaluation* May 16, 2025

Discussions Kick Off Meeting* May 21, 2025

Finalize Discussions* May 30, 2025

Post Anticipation to Award* May 30, 2025

Award Contract* July 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 responded to 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 close of business on the date provided 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 precludes the Prospective Contractor from submitting a Responsive Proposal.

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

B. Technical Proposal Packet

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

https://arbuy.arkansas.gov/

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

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

b. Technical Proposal response to the Information for Evaluation section included in the Technical Proposal Packet, which must be in the English language.

c. Completed Official Solicitation Price Sheet attached to the Solicitation in ARBuy.

i. Pricing must be proposed in U.S. dollars and cents.

ii. Quantities stated are estimates only and are not guaranteed. Prospective Contractor must submit unit price on the estimated quantity and unit of measure specified.

• The State may order more or less than the estimated quantity on term contracts, and the Contractor shall sell to the Department quantities ordered at no more than the submitted price.

iii. If pricing documents do not allow for accurate pricing, Prospective Contractor should notify the OSP Procurement Specialist at least seventy-two (72) hours before the proposal opening time.

iv. Prices must be firm offers and adjustments may be negotiated at the time of contract renewal.

• A request for a price increase must include supporting documentation demonstrating that the increase in contract price is based on an increased cost to the Contractor and that the proposed pricing is still competitive in the marketplace. The State has the right to approve or deny any request for a price adjustment.

v. Discount from list pricing is not acceptable unless requested elsewhere in the Solicitation.

vi. State or local sales taxes should not be included in the price. Trade discounts should be deducted from the unit price and the net price should be shown in the pricing response.

d. Recommended Options Form

i. The Recommended Options form included in the Technical Proposal 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.

e. Copy of Prospective Contractor’s Equal Opportunity Policy

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

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

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

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 proposal:

a. EO 98-04: Contract and 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.

https://transform.ar.gov/procurement/forms-and-reporting/#:%7E:text=Services%20Contract%20(SRV-1)%20Fillable%20Form:~:text=Services%20Contract%20(SRV%2D1)%20Fillable%20Form https://transform.ar.gov/procurement/forms-and-reporting/#:%7E:text=Services%20Contract%20(SRV-1)%20Fillable%20Form:~:text=Services%20Contract%20(SRV%2D1)%20Fillable%20Form https://www.section508.gov/sell/vpat/

C. Redacted copy of the Technical Proposal Packet

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

D. Prospective Contractors should not alter language in Solicitation document(s) or Official Solicitation Price Sheet provided by the State.

E. Prospective Contractor’s proposals cannot be altered or amended after the proposal opening except as permitted by law or rule.

F. Prospective Contractors may submit multiple proposals.

SECTION 2 – REQUIREMENTS

2.1 INTRODUCTION

The ANRC is responsible for administering the State of Arkansas Water, Waste Disposal and Pollution Abatement Facilities G.O. Bond Program. ANRC currently operates the G.O. Bond Program to provide capital for construction of water, wastewater, and solid waste infrastructure projects.

Over the previous seven (7) years, ANRC has closed an average of one (1) bond financing per year which has been either competitive or negotiated. The financings have an average of $30,000,000.00 per year over this time period.

2.2 PROSPECTIVE CONTRACTOR QUALIFICATIONS

A. The Prospective Contractor shall be authorized to do business in the State of Arkansas.

B. The Prospective Contractor shall be registered with the U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board as a Municipal Advisor.

C. The Prospective Contractor shall have Professional Liability Insurance in the minimum amount of $7.5 million.

D. The Prospective Contractor shall have a physical office located in the State of Arkansas where the dedicated Financial Advisor shall be positioned throughout the term of the contract and shall be the sole point of contact for ANRC.

E. The Prospective Contractor shall have a minimum of five (5) years’ experience as an underwriter.

F. The Prospective Contractor shall have a Price Expert with a minimum of eight (8) years’ experience working at a pricing desk on a daily basis.

G. The Prospective Contractor shall have a Computations Expert with at least one of the following:

1. A bachelor’s degree in finance, statistics, or mathematics and a minimum of four (4) years’ experience in calculations related to a municipal bond issue, or;

2. A master of business administration or finance, or;

3. A minimum of eight (8) years’ experience in calculations related to a municipal bond issue.

H. The Prospective Contractor shall have completed a minimum of four (4) infrastructure financings in the last (four) 4 years, two (2) of which must be refinancings, in which the Prospective Contractor provided financial advisory and/or structuring services, and two (2) general obligation sales. Of the four (4), two (2) for negotiated sales, and two (2) for competitive sales.

2.3 FINANCIAL ADVISOR FOR BOND TRANSACTIONS

A. The Contractor shall assist ANRC in the selection of a bond registrar, paying agent, trustee, rebate calculations firm, escrow agent, and any other professionals relative to a related bond transaction (Bond Issuance Team). Assistance must include, but not be limited to, the following:

1. Solicitation of the position

2. Reviewing qualifications

3. Making recommendations

B. The Contractor shall create a bond issuance schedule and coordinate the process with the Bond Issuance Team.

C. The Contractor shall meet all deadlines set forth in the bond issuance schedule.

D. The Contractor shall examine, evaluate, and formulate a sound and flexible bond financing program, including short-term financing options that takes into consideration at minimum the following:

1. ANRC objectives

2. Existing debt structure

3. Existing assets

4. Liquidity of the current program

5. Timing of capital projects

6. Tax regulations

7. Climate in the capital markets

E. The Contractor shall prepare or assist in the preparation of all documents relative to a bond financing program as determined by the Bond Issuance Team. Examples of these documents include but are not limited to:

1. Preliminary Official Statement

2. Official Statement

3. Notice of Sale

F. The Contractor shall provide financial analyses and expert advice to ANRC in all the areas of a financing program which must include but is not limited to the following:

1. Timing

2. Method of sales (competitive versus negotiated)

3. Strategies

4. Economic considerations

5. Market conditions

6. Maturity structures

7. Interest rates

8. Redemption provisions

9. Debt service requirements

10. Fees for other services (underwriter, trustee, paying agent, and bond counsel)

11. Evaluation of syndicate members

12. Settlement and post-settlement analyses, etc.

G. The Contractor shall review proposals from underwriters and make recommendations for negotiations.

H. The Contractor shall conduct information meetings with institutional investors, credit enhancement providers, rating analysts, underwriters, and other public presentations as requested by ANRC. The Contractor shall provide the following for these meetings:

1. Compilation of all the information that is needed.

2. Coordination of the Bond Issuance Team to ensure that all members that are required can attend.

3. Leadership during the meeting to ensure all information is provided.

I. The Contractor shall arrange for the distribution and marketing of any Official Statement, any Notice of Sale, or other financing document to underwriters and any interested parties through the Electronic Municipal Market Access (EMMA).

J. The Contractor shall provide pre-pricing books, pre-sale market analyses, pre-sale market updates, pricing recommendations, and assistance in pricing negotiations. These must be communicated in a method and timeframe approved by ANRC.

K. The Contractor shall prepare a final report, in a format approved by ANRC, on the Results of each negotiated bond sale including, but not limited to, the following:

1. Performance of each member of the underwriting syndicate (requests and allocations)

2. Distribution of bonds by geographical region and type of investor

3. Pricing and expense characteristics of comparable sales by other issuers, etc. (for negotiated sales only)

L. The Contactor shall review for appropriateness and make recommendations for the following:

1. Underwriter compensation proposals.

2. Underwriter compensation negotiations, as requested by ANRC.

3. Cost of issuance, including the following:

a. Credit enhancements

b. Bond Counsel fees

c. Underwriters counsel fees

d. Underwriter fees

4. Costs of issuance negotiations, as requested by ANRC.

M. The Contractor shall review bond allotments to ensure an appropriate deal is presented by an underwriter.

N. The Contractor shall prepare for and participate in the financial aspects of closings to ensure all documentation is accurate.

O. The Contractor shall generate post bond sale analyses and reports on financing in a format and timeframe approved by ANRC.

P. The Contractor shall assist with issues involving bond redemptions and other “after issuance” matters as they arise.

2.4 STRUCTURING AGENT FOR NEGOTIATED BOND TRANSACTIONS

A. The Contractor shall work with and communicate with underwriters to develop a marketable structure for bond issues.

B. The Contractor shall prepare and deliver the following to ANRC by a method and in a format approved by ANRC:

1. Preliminary and final cash flows

2. Bond redemption analyses

3. Yield analyses

4. Debt service reserve analyses

C. The Contractor shall prepare a yield memorandum for arbitrage certifications.

D. The Contractor shall assist the bond counsel in the preparation of the preliminary and final official statements, ensuring the bond documents properly reflect the structure of the transaction.

E. The Contractor shall prepare cash flows analysis for all bond issues.

F. The Contractor shall provide other advice and analysis in relation to the bond issue as requested by

ANRC.

G. The Contractor shall draft and evaluate responses to requests for specific financing proposals received from underwriters.

H. The Contractor shall review proposed interest rates and current market conditions and shall recommend any necessary changes to ensure ANRC will receive the lowest possible interest cost.

I. The Contractor shall review proposed interest rates and current market conditions and shall recommend any necessary changes to ensure ANRC will receive the lowest possible interest cost.

J. The Contractor shall perform all the mathematical computations associated with any bond transactions, including but not limited to the following:

1. Estimated savings

2. Bid verifications

3. Interest rates

4. Actual savings (present value and percentage)

5. Closing calculations

K. The Contactor shall communicate with past and potential bidders to provide them with a notice of sale and encourage them to bid.

L. The Contractor shall work with the Primary Financial Advisor and bond counsel to answer questions from potential bidders.

M. The Contractor shall provide any amended notice of sale to any potential bidders that received the original notice of sale.

2.5 ONGOING SERVICES

A. The Contractor shall examine, evaluate, and provide financial analyses and reports as requested by

ANRC.

B. The Contractor shall attend meetings as requested by ANRC and at a location approved by ANRC.

C. The Contractor shall at least semi-annually, provide an analysis of potential savings of refinancing the existing debt of the G.O. Bond program.

D. The Contractor shall assist with issues involving mandatory redemptions and other “after issuance” matters as they arise. ANRC does not expect any mandatory redemptions to occur during the life of the contract.

E. The Contractor shall provide other bond financial advisory services as requested by ANRC.

F. The Contractor shall provide any other services or products relative to this scope of work as mutually agreed upon by the ANRC and the Contractor.

2.6 STAFFING

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

Plan must at a minimum meet the requirements set forth in this section of the RFP.

B. The Contractor shall include, the Staffing Plan, individuals with sufficient technical expertise and experience to accomplish the Implantation Plan which must include but is not limited to the following positions:

1. Financial Advisor

2. Pricing Expert

3. Computations Expert

4. Marketing Expert

C. Each of these four (4) positions may be filled by individuals, or one individual may fill multiple positions

D. ANRC shall have the right to approve or reject proposed staff members prior to the finalization of the or after-Contract Award.

E. The Contractor shall include, in the Staffing Plan, a provision to address the vacancies of key staff members.

F. In the event of the vacancy a key person, the Contractor shall prove replacement candidates to ANRC for review within fifteen (15) calendar days of the Contractor learning of the vacancy. ANRC will have the right to approve or reject proposed replacements if they do not meet the minimum requirements set forth in the RFP.

G. The Contractor shall replace key personnel upon request by ANRC for justified reasons including, but not limited to, performance, behavior, and security.

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

I. The Contractor shall not propose resources who are currently engaged full time on other contracts with the State. A single resource shall not hold more than one full-time position with the State.

J. BACKGROUND CHECKS

1. At commencement of any resulting contract and prior to the hiring of staff, the Contractor shall provide proof of the background checks for all personnel involved in any aspect of the process described in this RFP at the Contractor’s expense as a requirement of any resulting contract.

2. The Contractor shall provide information necessary to conduct Criminal Background Checks on all key personnel and subcontractors who perform or supervise work on any resulting contract for purposes of auditing.

3. ANRC will have the right to refuse personnel based on the results of the criminal background checks.

2.7 PERFORMANCE STANDARDS

A. State law requires that all contracts for services include Performance Standards for measuring the overall quality of services provided that a Contractor shall meet in order to avoid assessment of damages.

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. TABLE 1: Performance Standards identifies expected deliverables, performance measures, or outcomes; and defines the acceptable standards.

C. The State has the right to modify, add, or delete Performance Standards throughout the term of the contract, should the State determine it is in its best interest to do so. Any changes or additions to performance standards will be made in good faith following acceptable industry standards and may include the input of the Contractor so as to establish standards that are reasonably achievable.

D. All changes made to the Performance Standards will become an official part of the contract.

E. Performance Standard will continue throughout the aggregate term of the contract.

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

G. 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.

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

SECTION 3 – SELECTION

3.2 SELECTION PROCESS

A. TSS OSP will review each Technical Proposal Packet to verify Submission Requirements have been met. Technical Proposal Packets that do not meet Submission Requirements will be rejected and will not be evaluated.

1. The State may conduct cost checks based on the cost submitted by each Prospective Contractor on the completed pricing response.

a. Prospective Contractors submitting Responsive Proposals with a proposed cost that falls twenty-five percent (25%) or more from the average submitted cost may be asked to justify their submitted cost.

b. Should TSS OSP request clarification and/or additional information regarding cost, Prospective Contractors shall provide clarification and/or additional information as specified by the request.

B. A Department-appointed Evaluation Committee will evaluate and score Responsive Proposals.

Evaluation will be based on Prospective Contractor’s response to the Information for Evaluation section included in the Technical Proposal Packet and the pricing submitted by the Prospective Contractor.

1. Cost information will be provided to the members of the Evaluation Committee (Evaluators) to allow them to determine which proposal(s) is the most advantageous to the State.

2. Evaluators will individually review and evaluate proposals and complete an Individual Score Worksheet for each proposal. Individual scoring for each Evaluation Criteria will be based on the scoring description in Table B: Scoring Table.

TABLE B: 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.

3. 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.

4. 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.

5. 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 proposal.

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

C. Prospective Contractors submitting Responsive Proposals 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.

a. 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 proposal.

4. Should the State receive only one (1) Responsive Proposal, the State may forgo the interview portion of the evaluation if the proposal has received the Maximum Weighted Score Possible for the Experience, Solution, and Risk subsections.

a. In this scenario, the proposal would automatically receive the maximum weighted score possible for the interview subsection.

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 and pricing received from the interviewed Perspective Contractors, along with the Evaluation Committee’s recommendation to the Department for review and approval to move into Discussions.

3.3 TECHNICAL PROPOSAL 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 25% 175

Solution 10 25% 175

Risk 10 20% 140

Interview 10 30% 210

Total Technical Score 40 100% 700

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

B. The proposal’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 proposal’s weighted scores for subsections will be added to determine the Total Technical Score for the proposal.

3.4 COST SCORE

A. When scores are applied to pricing, the maximum amount of cost points will be given to the proposal with the lowest annual cost as shown in Table One (1) on the completed Official Solicitation Price Sheet . (See Grand Total Score for maximum points possible for cost score.)

B. The amount of cost points given to the remaining proposals will be allocated by using the following formula:

(A/B)*C =D

A = Lowest estimated cost

B = Second (third, fourth, etc.) lowest estimated cost

C = Maximum Points for lowest estimated cost

D = Total price points received

3.5 GRAND TOTAL SCORE

The Technical Score and Cost Score will be added together to determine the Grand Total Score for the proposal. The State may move forward to Discussions with the Prospective Contractor determined reasonably susceptible of being selected for award.

MAXIMUM

POINTS

POSSIBLE

Technical Proposal 700

Cost 300

Maximum Possible Grand Total Score 1,000

3.6 EXPLANATION OF THE SUBSECTIONS OF THE TECHNICAL PROPOSAL

A. Experience

1. The Experience subsection included in the Technical Proposal Packet allows Prospective Contractors to differentiate themselves based on their experience, technical capability, 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 Technical Proposal 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 RFP.

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

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 Technical Proposal 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 solution as offered in the proposal 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 RFP.

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.

3.7 DISCUSSIONS

A. The State will move forward into Discussions with the responsible Prospective Contractor(s) whose proposal(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 Grand Total Score for each proposal 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 proposals, each responsible Prospective Contractor reasonably susceptible of being awarded a contract will be provided an opportunity to revise its proposal 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 RFP, 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 Technical Proposal Packet

3. A proposed financial summary, including:

a. The completed pricing response and Recommended Options Form submitted in the Prospective Contractor’s Technical Proposal 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 RFP, 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. The completed pricing response submitted in the Prospective Contractor’s Technical Proposal Packet

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.

3.8 ANTICIPATION TO AWARD

A. 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 Table A.

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

B. 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.

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

3.9 PROSPECTIVE CONTRACTOR ACCEPTANCE OF EVALUATION TECHNIQUE

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

SECTION 4 – SOLICITATON 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 R8:19-11-229).

1. Proposals 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 proposal, the Prospective Contractor represents and warrants:

1. That the prices in the proposal 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 and services 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 proposal.

4.2 GENERAL TERMS AND CONDITIONS

A. The Contractor must be registered as a vendor to receive payment and may register online by visiting https://www.ark.org/vendor/index.html 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

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.

a. 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 goods 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 goods 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 goods 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 RFP 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 proposal may be rejected if a Prospective Contractor takes exception to any terms, conditions, or Requirements in this RFP.

J. The 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 Discussions.

https://transform.ar.gov/procurement/forms-and-reporting/#:%7E:text=Services%20Contract%20(SRV-1)%20Fillable%20Form:~:text=Services%20Contract%20(SRV%2D1)%20Fillable%20Form

4.3 MINORITY AND WOMEN-OWNED BUSINESS

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 Proposal 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 are subject to the Arkansas Freedom of Information Act (FOIA).

C. In accordance with FOIA, and to promote maximum competition in the State competitive sealed proposals, 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. Consistent with and to the extent permitted under FOIA, any Prospective Contractor may designate appropriate portions of a proposal as confidential by submitting a redacted copy of the proposal. By so redacting any information contained in the proposal, 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.

E. 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 proposal 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.

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

G. 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.

H. 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.