S00B6600041 - HFA Financial Audit Services - TORFP.pdf

STATE OF MARYLAND

DEPARTMENT OF HOUSING AND COMMUNITY

DEVELOPMENT (DHCD)

AUDIT SERVICES CONTRACT (ASC) TORFP

HOUSING FINANCE AGENCY (HFA) FINANCIAL AUDIT

SERVICES

TORFP NUMBER S00B6600041

ISSUE DATE: JUNE 22, 2026

HFA Financial Audit Services

Solicitation #: S00B6600041 TORFP Document

Audit Services TORFP for DHCD Page ii of 60

STATE OF MARYLAND

DEPARTMENT OF HOUSING AND COMMUNITY

DEVELOPMENT (DHCD)

KEY INFORMATION SUMMARY SHEET

ASC TORFP HFA Financial Audit Services

TORFP Number: S00B6600041

TORFP Issue Date: June 22, 2026

TORFP Issuing Office: Department of Housing and Community Development (e

"Department")

Procurement Officer: Paul Dickman

7800 Harkins Road

Lanham, MD 20706 e-mail:

Office Phone:

paul.dickman@maryland.gov

301-429-7697

TOPs are to be sent to: Task Order Proposals will be accepted through the State's eMaryland

Marketplace Advantage (eMMA) e-Procurement system. Instructions on how to submit proposals electronically can be found at:

https://procurement.maryland.gov/wp-content/uploads/sites/12/2019/08/5-eMMA-QRG-Responding-to-

Solicitations-Double-Envelope-v2.pdf.

Pre-TORFP Conference: July 14, 2026 at 1 PM Local Time via Google Meet virtual

Teleconference.

See Attachment A for instructions.

Virtual Conference, by Calendar Invitation from Procurement Officer Only

For invitation, email paul.dickman@maryland.gov

TOP Due (Closing) Date and

Time:

August 3, 2026 at 5 PM Local Time

Master Contractors are reminded that a completed Feedback Form is requested if a no-bid decision is made.

MBE Subcontracting Goal: 15% with no subgoals.

VSBE Subcontracting Goal: 0%

Task Order Duration: Two Years and 6 Months base period

Primary Place of

Performance:

7800 Harkins Road

Lanham, MD 20706

SBR Designation: No

Federal Funding: No

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Non-Routine Travel Allowed: No

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TABLE OF CONTENTS – ASC TORFP

1 Contractor Requirements: Scope of Work

1.2 Background

1.3 Goal of Audit

1.4 Requirements

1.5 Deliverables

1.6 Additional Requirements

1.7 Term of Task Order

1.8 State Facilities Provided

2 General TOP Requirements

2.1 Task Order Manager (TOM)

2.2 Reporting and Presentations under the ASC for the TORFP

2.3 Auditing Standards

2.4 Detailed Work Plan

2.5 Kick-Off Meeting and Final Detailed Work Plan

2.6 Written Progress/Status Reports

2.7 Not-To-Exceed Ceiling Amount

2.8 Staffing

2.9 Terms and Conditions

2.10 Master Contractor’s Invoicing and Invoicing Report(s)

2.11 Travel

2.12 DGS Contract Management

2.13 Security

3 Procurement Instructions

3.1 Pre-TOP Virtual Conference

3.2 eMaryland Marketplace Advantage (eMMA)

3.3 Questions

3.4 Procurement Method

3.5 TOP Due (Closing) Date and Time

3.6 Public Information Act Notice

3.7 Award Basis

3.8 Oral Presentation

3.9 Duration of TOP

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3.10 Revisions to the TORFP

3.11 Cancellations

3.12 Incurred Expenses

3.13 Protest/Disputes

3.14 False Statements

3.15 MBE Participation Goal

3.16 VSBE Goal

3.17 Living Wage Requirements

3.18 Federal Funding Acknowledgement

3.19 Conflict of Interest Affidavit and Disclosure

3.20 Non-Disclosure Agreement

3.21 HIPAA - Business Associate Agreement

3.22 Location of the Performance of Services Disclosure

3.23 Department of Human Services (DHS) Hiring Agreement

3.24 TO Proposal Affidavit

3.25 TO Contract Affidavit

3.26 Small Business Reserve (SBR) Procurement

4 Technical and Financial Format and Submission Requirements

4.1 General

4.2 Format for Technical TOP

4.3 Technical Submission

4.4 Financial Submission

5 Evaluation and Award

5.1 Evaluation Criteria for this TORFP

5.2 Reciprocal Preference

5.3 Selection Process

5.4 Award Determination

5.5 Execution of the TOA and Initial Notice-To-Proceed

6 TORFP ATTACHMENTS AND APPENDICES

Attachment A. Pre-TOP Teleconference Response Form

Attachment B. Financial TOP Instructions & Form

Attachment C. TO Proposal Affidavit

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Attachment D. Minority Business Enterprise (MBE) Forms

Attachment E. Veteran-Owned Small Business Enterprise (VSBE) Forms

Attachment F. Maryland Living Wage Affidavit of Agreement for Service Contracts

Attachment G. Federal Funds Attachments

Attachment H. Conflict of Interest Affidavit and Disclosure

Attachment I. Non-Disclosure Agreement (Contractor)

Attachment J. HIPAA Business Associate Agreement

Attachment K. N/A

Attachment L. Location of the Performance of Services Disclosure

Attachment M. Sample Task Order Agreement

Attachment N. TO Contract Affidavit

Attachment O. DHS Hiring Agreement

Appendix 2. – Master Contractor Information Sheet

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1 Contractor Requirements: Scope of Work

1.1 Purpose

The Department of Housing and Community Development ("Department") is issuing this Task

Order Request for Proposals (“TORFP”) in order to procure the services defined in this Section 2, as specified in this TORFP, from a task order between the successful master contractor(s) and the

Department of Housing and Community Development: to perform Housing Finance Agency Audit

Services for the Department.

1.1.1 It is the State’s intention to obtain goods and services, as specified in this TORFP, from a Task Order between the selected Master Contractor and the State.

1.1.2 The Department intends to make a single award for the work under this RFP. See ASC Master

Contract RFP No. 001B0600234 Section 3.7 Award Basis for more Contract award information.

1.1.3 A Master Contractor, either directly or through its subcontractor(s), must be able to provide all goods and services and meet all of the requirements requested in this solicitation and the successful Offeror

(the Contractor) shall remain responsible for performance regardless of subcontractor participation in the work.

1.2 Background

Community Development Administration (CDA)

CDA is a unit of the Division of Development Finance in the Department, a principal department of the

State. CDA was created to meet the shortage of adequate, safe and sanitary housing in the State, particularly for persons or families of limited income. See Section 4-101 through 4-255 of the Housing and Community

Development Article of the Annotated Code of Maryland (“HCD Article”). CDA, pursuant to Sections 4-

101 through 4-255, is authorized to meet any project development costs through, among other things, the issuance of bonds, notes or other evidences of indebtedness for that purpose. Notes and bonds are issued primarily to provide CDA with monies to be used by it in the making of, or participation in, construction mortgage loans and permanent mortgage loans. In general, single family and multifamily mortgage loans made or purchased by CDA and financed with bond proceeds are secured by mortgages. The mortgages may be credit-enhanced in accordance with the terms of the bond documents. CDA also has purchased mortgage-backed securities and other forms of credit-enhanced pass-through financing.

Bonds are also issued to provide a mechanism for financing the infrastructure needs of local governments.

Infrastructure bonds are used to provide funds for construction and permanent financing to local governments for public facilities.

In conjunction with the refunding of certain multi-family revenue bonds with 1993 Series D multi-family revenue bonds, CDA and the United States Department of Housing and Urban Development (“HUD”) signed a Financing Adjustment Factor (“FAF”) Refunding Agreement dated March 26, 1993. This refunding reduced interest rates and permitted HUD to recapture Section 8 Funds used to subsidize FAF

Projects financed by the bonds. HUD also made available to CDA 50% of the net recaptured funds attributable to this refunding to provide decent, safe and sanitary housing affordable to very low-income families or persons.

Maryland Housing Fund (MHF)

MHF is a unit in the Division of Credit Assurance in the Department. MHF is the State of Maryland’s mortgage insurance agency. MHF was established in 1971 and is administered in accordance with Sections

3-201 through 3-208 of the HCD Article, to encourage the flow of private investment capital into multiple-unit and single-family housing by insuring qualified lenders against certain monetary losses incurred on

Audit Services TORFP for DHCD Page 2 of 60 mortgage loans as a result of nonpayment of principal or interest, or certain other events of borrower default not including property, casualty or title losses. MHF’s authority has been expanded to cover the insurance of rehabilitation or energy conservation loans for both single family homes and multifamily projects and also to the credit enhancement of business loans.

Each program has different premium schedules, loss exposures, reserves and insurance-to-reserve ratios.

For example, through its Single Family Programs, MHF insures mortgage loans on one- to four-family structures. These programs insure as little as two percent and up to 100 percent of the original or outstanding loan amount, depending on the program. Acceptable loan-to-collateral value ratios also vary by program and credit enhancement product. The Fund closely tracks loan payment delinquency rates to anticipate potential insurance claims.

1.3 Goal of Audit

The Agency’s goals for this financial audit service for an independent auditor to conduct annual audits of the Department’s CDA and MHF in accordance with auditing standards generally accepted in the United

States of America and the standards applicable to financial audits contained in Government Auditing

Standards, issued by the Comptroller General of the United States.

1.4 Requirements

The Master Contractor will complete the requirements as indicated to meet the Agency’s goals through the following objectives:

1.4.1 Scope of Services for CDA:

1.4.1.1 Audit and Audited Reports. For Fiscal Years 2027 and 2028 the Contractor shall:

1. Conduct an examination of CDA's financial statements sufficient in scope to allow the

Contractor to express its opinion that the financial statements are in accordance with generally accepted accounting principles, consistently applied, and present fairly the financial position as of June 30 and the results of operations and cash flows for the year then ended as required by Generally Accepted Auditing Standards. Prepare the Independent Auditor’s Report on

Compliance and on Internal Control Over Financial Reporting based on an audit of financial statements performed in accordance with Government Auditing Standards;

2. Conduct an examination sufficient in scope of the books and records of CDA to allow the

Contractor to state that no knowledge of any CDA default in the fulfillment of any of the terms, covenants or provisions of the bond indentures or insurance agreements between CDA and

MHF was evident. If knowledge of any such default was evident, the Contractor shall prepare a statement regarding the default and notify the Secretary and Chief Financial Officer of the

Department;

3. Issue management letters, if applicable, suggesting improvements in CDA’s conduct of its fiscal affairs. Management letters shall be issued within thirty days of the Auditor’s report on

CDA’s financial statements;

4. Apprise CDA of modifications to Generally Accepted Accounting Principles (“GAAP”) promulgated by authoritative bodies, principally the Governmental Accounting Standards

Board , during the period of the engagement and help CDA design procedures to implement such changes since CDA’s financial statements are required to be in accordance with GAAP.

All statements will provide for comparative years’ presentation unless otherwise instructed by

CDA;

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5. Conduct an “Entrance Conference” within 10 working days of notification by CDA, but no later than June 30 of each audit period with representatives of CDA to discuss the current year engagement;

6. Conduct an “Exit Conference” within 10 working days of notification by CDA with representatives of CDA to discuss the audited statements and related reports;

7. Coordinate with the auditing firm undertaking the State of Maryland Comprehensive Annual

Financial Report audit to resolve any issues regarding the segment information required;

8. As part of the annual audit, confirm with the servicers’ depository banks that custodial accounts held for CDA are in existence and are properly titled; and

9. Review FAF proceeds as described in Section 1.2 above and prepare reports required by HUD:

a) Provide CDA with such additional information as may be reasonably requested of CDA by

HUD, including an audit of funds expended or received by CDA.

b) Prepare triennially a programmatic review, including a review of the assistance provided and the families and persons assisted. The next triennial review is due for the fiscal year ending June 30, 2027 and should be performed as part of the audited report for the year ending June 30, 2027.

10. Prepare contract deliverables a – m below, submit the appropriate number of bound copies to

CDA, and transmit one copy of each in electronic format to CDA. All deliverables must be compliant with all applicable Americans with Disabilities Act (ADA) laws, regulations, and standards.

a) As requested by the Department, up to twenty (20) bound copies of the "Audited Financial

Statements" of the Community Development Administration Revenue Obligation Funds.

As of June 30, 2025, the Revenue Obligation Funds includes Housing Revenue Bonds, Residential Revenue Bonds and the General Bond Reserve Fund. Beginning with June 30, 2010, two new indentures were added outside of the existing CDA Revenue Obligation

Funds: Single Family Housing Revenue Bonds and the Multi-Family Mortgage Revenue

Bonds;

b) As requested by the Department, up to ten (10) bound copies of the "Audited Financial

Statements" of the Community Development Administration Housing Revenue Bonds;

c) As requested by the Department, up to ten (10) bound copies of the "Audited Financial

Statements" of the Community Development Administration Residential Revenue Bonds;

d) As requested by the Department, up to ten (10) bound copies of the "Audited Financial

Statements" of the Community Development Administration Multi-Family Mortgage

Revenue Bonds;

e) As requested by the Department, up to ten (10) bound copies of the "Audited Financial

Statements" of the Community Development Administration Single Family Housing

Revenue Bonds;

f) As requested by the Department, up to ten (5) bound copies of the "Audited Financial

Statements" of the Community Development Administration Local Government

Infrastructure Bonds (resolution adopted August 1, 2010).

g) As requested by the Department, up to ten (10) bound copies of the “Audited Financial

Statements” for any new bond programs of CDA added during the contract period;

h) As requested by the Department, up to five (5) copies of the "FAF Report” for CDA;

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i) As requested by the Department, up to five (5) copies each of "The Independent Auditor’s

Report on Compliance and on Internal Control over Financial Reporting” for CDA; and

j) As requested by the Department, up to five (5) management letters as described in Section

1.4.1.1 (3) above for CDA.

The electronic format, which is currently Portable Document Format (PDF) (unlocked) with appropriate bookmarks and Microsoft Word, shall be as directed by CDA. The Department may post any and all deliverables under this contract to the Department’s website, www.dhcd.state.md.us.

1.4.1.2 Underwriter Inclusion Letters. Provide the necessary Underwriter Inclusion Letters for the public issuance of tax-exempt or taxable bonds. The Contractor shall, for the fifteen (15) months succeeding the period of the CDA audits, conduct the necessary reviews, including the review of interim unaudited financial statements prepared by CDA, to provide CDA's underwriters and their counsel with underwriter Inclusion Letters for CDA, when required, in a form acceptable to CDA as directed by the Director of CDA Finance in connection with the issuance of bonds and notes.

Each bond issuance requires two (2) Inclusion Letters for CDA. One letter is required at the time the preliminary official statement is issued; the second letter is required at the time of bond closing.

1.4.1.3 Unaudited Reports. Provide Unaudited Reports prepared by the Contractor as directed by the

Director of CDA Finance for the fifteen (15) months succeeding each period of audit. In addition, the Contractor shall perform necessary procedures to provide a Contractor prepared Letter of

Consent for CDA for publication in any financial disclosures or Underwriter Inclusion Letter for

CDA in connection with the issuance of bonds or notes.

1.4.2 Scope of Services for MHF:

1.4.2.1 Audit and Audited Reports. For Fiscal Years 2027 and 2028, Contractor shall:

1. Conduct an examination of MHF’s financial statements sufficient in scope to allow the

Contractor to express its opinion that the financial statements are in accordance with generally accepted accounting principles, consistently applied, and present fairly the financial position as of June 30 and the results of operations and cash flows for the year then ended as required by Generally Accepted Auditing Standards. Prepare the Independent Auditor’s Report on

Compliance and on Internal Control Over Financial Reporting based on an audit of financial statements performed in accordance with Government Auditing Standards;

2. Conduct an examination sufficient in scope of the books and records of MHF to allow the

Contractor to state that no knowledge of any MHF default in the fulfillment of any of the terms, covenants or provisions of the bond indentures or insurance agreements between CDA and

MHF was evident. If knowledge of any such default was evident, the Contractor shall prepare a statement regarding the default and notify the Secretary and Chief Financial Officer of the

Department;

3. Issue a management letter suggesting improvements in MHF’s conduct of its fiscal affairs.

Management letters shall be issued within thirty days of the Auditor’s report on MHF’s financial statements;

4. Apprise MHF of modifications to GAAP promulgated by authoritative bodies, principally the

Governmental Accounting Standards Board (GASB), during the period of the engagement and help MHF design procedures to implement such changes since MHF‘s financial statements are

Audit Services TORFP for DHCD Page 5 of 60 required to be in accordance with GAAP. All statements will provide for comparative years’ presentation unless otherwise instructed by MHF;

5. Conduct an “Entrance Conference” within 10 working days of notification by MHF, but no later than June 30 of each audit period with representatives of MHF to discuss the current year engagement. At this time MHF should get a listing of all supplemental schedules required to be done by MHF;

6. Conduct an “Exit Conference” within 10 working days of notification by MHF with representatives of MHF to discuss the audited statements and related reports;

7. Coordinate with the auditing firm undertaking the State of Maryland Comprehensive Annual

Financial Report audit to resolve any issues regarding the segment information required; and

8. Prepare contract deliverables a – c below, submit the appropriate number of bound copies to

MHF, in the quantity requested by MHF, and transmit one copy of each in electronic format to

MHF. All deliverables must be compliant with all applicable Americans with Disabilities

Act (ADA) laws, regulations, and standards.

a) As requested by the Department, up p to fifteen (15) bound copies of the “Audited Financial

Statements" of the Maryland Housing Fund;

b) As requested by the Department, up to three (3) copies each of "The Independent Auditor’s

Report on Compliance and on Internal Control over Financial Reporting” for MHF; and

c) As requested by the Department, up to three (3) management letters as described in Section

1.4.2.1 (3) above for MHF.

The electronic format, which is currently Portable Document Format (PDF) (unlocked) with appropriate bookmarks and Microsoft Word shall be as directed by MHF. The Department may post any and all deliverables under this contract to the Department’s website, www.

dhcd.maryland.gov.

1.4.2.2 Underwriter Inclusion Letters. Provide the necessary Underwriter Inclusion Letters for the public issuance by CDA of tax-exempt or taxable bonds. The Contractor shall, for the fifteen (15) months succeeding the period of the MHF audits, conduct the necessary reviews, including the review of interim unaudited financial statements prepared by MHF, to provide CDA’s underwriters and their counsel with underwriter Inclusion letters for MHF, when required, in a form acceptable to MHF as directed by the Director of MHF Finance in connection with the issuance of bonds and notes by CDA.

Each bond issuance requires two (2) Inclusion Letters for MHF. One letter is required at the time the preliminary official statement is issued; the second letter is required at the time of bond closing.

1.4.2.3 Unaudited Reports. Provide Unaudited Reports prepared by the Contractor as directed by the

Director of MHF Finance for the fifteen (15) months succeeding each period of audit. In addition, the Contractor shall perform necessary procedures to provide a Contractor prepared Letter of

Consent for MHF for publication in any financial disclosures or Underwriter Inclusion Letter for

MHF in connection with the issuance of bonds or notes by CDA.

1.5 Deliverables

The contract deliverables shall be submitted to CDA and MHF for each audit period by the following due dates:

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DUE DATE PERIOD COVERED BY AUDIT REPORT

September 30, 2027 July 1, 2026 – June 30, 2027 (FY27)

September 30, 2028 July 1, 2027 – June 30, 2028 (FY28)

Deliverables related to Underwriter Inclusion Letters; Consent Letters; Unaudited Reports; and Related

Audit Services will be provided on an as-needed basis. Upon delivery and after the Department acceptance of the final deliverable, the term of the Agreement will end September 30, 2029.

1.6 Additional Requirements

In addition to the General Requirements documented in Section 1 of the TORFP and above, the Master

Contractor must perform:

1.6.1.1 Consulting Services. Under the terms of this contract, CDA and MHF shall have the right to request of the Contractor consulting services of an accounting, auditing, and tax nature as such needs may arise (examples of these services may include consultation with the auditor regarding new GASB pronouncements, Sarbanes Oxley compliance or IRS requirements).

For assignment of additional services, the Task Order Manager will email a request to the Contractor to provide services. The request shall include at a minimum the due date and time for submitting a response to the request, a detailed description of the services, and any maximum timeframe for assignment completion. The Contractor shall respond within the required time by submitting via email an estimate of hours to be expended, at the compensation rate defined in the Task Order Financial Proposal Form, Attachment B-1. The estimate must be approved by the Contract Manager before any work on the additional services assignment has begun.

1.7 Term of Task Order

The term of the task order agreement will begin upon receipt of a fully executed Task Order Agreement in conjunction with an initial Notice-To-Proceed issued by the Department of Housing and Community

Development. Upon delivery and after State acceptance of the final deliverable, the term of the Task Order

Agreement will end September 30, 2029.

1.8 State Facilities Provided

This Section is inapplicable to this TORFP. All services may be performed remotely.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

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2 General TOP Requirements

The TORFP and any subsequent Task Order Agreement (TOA) are fully subject to the ASC Master

Contract’s terms and conditions, which are generally not repeated herein except for clarification.

The requirements noted in this Section are general TORFP requirements. See also Section 1, Contractor Requirements: Scope of Work.

2.1 Task Order Manager (TOM)

The assigned TOM to assure compliance with the TOA is:

Kristen Musallam

Deputy Director, CDA-Finance

410-570-7134 kristen.musallam@maryland.gov

After TOA award, the TOM is the focal point for all correspondence and discussions with the contractor concerning technical directions and issues, and all technical direction that provides specific details and milestones. All deliverables must be submitted to and through the TOM. The TOM acknowledges receipt of the deliverables, but this does not constitute approval for the deliverables. Approval for acceptance of the deliverables shall only be through the TOM. For any deliverable that does not receive acceptance, the

TOM will provide written notification of what is required to complete the deliverable to the State’s satisfaction. The TOA Contractor must correct the deliverable to the State TOM’s satisfaction and resubmit the deliverable for review and approval. Any deviation from this will result in the TOA Contractor performing at risk of non-payment for any unapproved services. Any change to this TOM position will be communicated in writing.

2.2 Reporting and Presentations under the ASC for the TORFP

For specific reports and presentations required by the TORFP noted in Section 2, and any subsequent TOA, at a minimum each time a report is required as a deliverable, the following procedure will be followed and accounted for in the Master Contractor’s Work Plan. Unless directed otherwise by the TOM at the Kick-

Off meeting, the TOA Contractor shall prepare the documents in Microsoft products such as MS Word, MS

Excel, MS PowerPoint, etc.:

2.2.1 Draft Reports. The TOA Contractor shall prepare and present as requested a written Draft

Report(s) that includes as applicable, findings, conclusions, anomalies (such as questioned costs, etc.) and recommendation(s). The State agency is especially interested in those recommendations that will improve their records and internal controls for themselves and each applicable stakeholder as directed by the TORFP.

2.2.2 Final Reports. The Draft Report(s) shall reference and include all backup materials. The Draft

Report(s) must be provided and presented to the TOM. Unless required otherwise by the SOW, the TOA Contractor must plan within their Work Plan to incorporate the TOM’s recommended edits into a Final Report (for each contract) due within ten (10) working days of the delivery and presentation to the TOM of the Draft Report(s).

2.2.3 Summary Report. The TOA Contractor shall provide a Summary Report that summarizes the

Final Report(s) in an Executive Summary that includes summaries for each category for: Findings, Conclusions, Anomalies, and Recommendations.

2.2.4 Presentations. After delivery of the Final Report(s) and the Summary Report, the TOA Contractor shall support up to eight presentations to stakeholders and/or management entities as directed by the TOM, and at times and places as approved by the TOM. Support includes the written

Audit Services TORFP for DHCD Page 8 of 60 determination, presentation materials, media (hardware and software), and staff. See the specific requirements within Section 2 as it may alter the number and times presentations are required.

2.3 Auditing Standards

The TOA Contractor shall conduct the audit using generally accepted auditing standards and accordingly, include such tests of the accounting records and such other auditing procedures as are considered necessary, and documenting the standards utilized in their reports.

2.4 Detailed Work Plan

2.4.1 As a general guideline, the Master Contractor as the TOA Contractor will accomplish the work under the TORFP/TOA in the following phases:

Phase I: Kick-Off Meeting and Finalize the Detailed Work Plan

Phase II: Execution of the Final Detailed Work Plan Finalized in Phase I

Phase III: Draft Reports

Phase IV: Final Reports and Summary Report

Phase V: Presentations

2.4.2 The Detailed Work Plan must give a detailed description of the planned audit activities and a description of the audit approach/methodology for conducting reviews and for testing. The

Detailed Work Plan is based upon the successful TOA Contractor’s proposed TOP solution that will be utilized as the Draft Work Plan.

2.4.3 The Draft and Final Detailed Work Plans must include the schedule of audits to be performed and estimate task hours of effort. The price in-total for all work effort shall not exceed the total Not-

To-Exceed price in the TOA contractor’s approved Task Order Proposal. Hours utilized must be aligned by the approved Labor Categories as proposed, unless a variation in the use of the hours has received prior approval from the TOM. However, even with a variation in the use of hours, the price shall not exceed the total price approved for the Task Order Agreement.

2.4.4 The Final Detailed Work Plan is a living document and the TOA Contractor has the responsibility to keep it up-to-date. All requested changes must have prior approval in writing from the TOM before their incorporation.

2.5 Kick-Off Meeting and Final Detailed Work Plan

2.5.1 The TOA Contractor shall attend and support the initial Kick-Off Meeting that is to be held (unless there is prior approval for another time by the TOM) within approximately 15 working days after

TOA Award and the initial Notice To Proceed. The TOA Contractor will provide the Draft Work

Plan at the initial Kick-Off Meeting for discussion and input.

2.5.2 The Final Detailed Work Plan shall actually be a summary plan that is made up of individual components specific to the audit services work as required by Section 2. The Final Detailed Work

Plan and its components must demonstrate the timeline, resources, and effort for completing each audit, the Draft Reports, Final Reports, and any presentations. The timeline and resources must acknowledge access to the State’s resources as well. Unless pre-approved otherwise by the TOM in writing, the Final Detailed Work Plan is due within 5 working days of the Kick-Off Meeting.

2.5.3 During Phase II execution, periodic meetings will be held with the TOM or a designee in order to notify the Agency of any issues, concerns, or problems encountered. The initial schedule of these meetings and timing/format of status reports will be established at the initial Kick-Off Meeting.

Although the TOM directs the timing and format of the status meetings, it is anticipated that initial meetings between the State TOM/team and the TOA Contractor will be approximately weekly.

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2.6 Written Progress/Status Reports

The TOA Contractor is responsible for preparing written progress/status reports. The format and content of the weekly reports will be established at the initial Kick-Off Meeting.

2.7 Not-To-Exceed Ceiling Amount

The TOA will establish an NTE ceiling dollar amount. The TOA Contractor must monitor invoiced amounts under the TOA. When a TOA is projected to reach 75% and 90% of the NTE ceiling dollar amount while performing a TOA, the TOA Contractor shall give notice to the TOM and the DGS Contract Manager that the TOA has reached or is projected to reach the 75% and 90% levels respectively. Each notice will also include an analysis of the TOA Contractor’s ability to complete the project within the NTE ceiling amount. If the analysis concludes that the project cannot be completed within the NTE ceiling amount, the rationale for this conclusion must be provided, along with a projection of the amount that would be needed to complete the project. However, providing such a projection shall not obligate the State to change the

NTE ceiling dollar amount. If a TOA Contractor reaches the TOA’s NTE ceiling dollar amount, the TOA

Contractor must stop performing any services for which it would seek payment beyond the NTE ceiling dollar amount. See again ASC Master Contract RFP No. 001B0600234 Section 2.4 for additional information.

2.8 Staffing

As with all Master Contracts and subsequent TOA requirements, staffing by the Master Contractor is governed by the ASC Master Contract. This includes its own staffing and those staff utilized through subcontractors.

2.8.1 The Master Contractor shall communicate with and manage its commitments to its subcontractor(s) and the State. See also ASC Master Contract RFP No. 001B0600234 Section 4.24, Prompt

Payment Policy.

2.8.2 For any subcontractors proposed on a TOA, the Master Contractor shall provide documentation upon the State’s request of the written, signed and dated commitment between the Master

Contractor and the subcontractor, and the specific agreed for scope of work and commitment. The commitment must be in-place before the Master Contractor uses such subcontractor in a TOP. If at any point during the TORFP/TOP process that the Master Contractor becomes aware of a subcontractor’s inability to perform the services as committed to and indicated in its TOP, the

Master Contractor shall promptly document this in writing to the DGS Contract Manager. As this may affect the Master Contractor’s ability to complete the applicable TOA, or receive a subsequent applicable TOA award, the DGS Contract Manager will provide written direction on any further process required to remedy the issue.

2.8.3 In response to each TORFP, the Master Contractor shall propose staff that is available at the time of the Master Contractor’s TOP for the time period specified in the applicable TORFP. The staff that is proposed by the Master Contractor shall be the staff utilized if awarded the TOA. From the date that a TOP is received by the DGS Contract Manager (or designee), any subsequent changes to personnel requested by the Master Contractor must be done per the procedures outlined in the

ASC Master Contract RFP No. 001B0600234 Section 3.11, Substitution of Personnel.

2.8.4 On a monthly basis, even if there is zero work effort performed or zero invoicing, the Master

Contractor will give status reports for the prior month’s activity per the TOA requirements until final deliverables and invoicing have been accepted and reported. In addition, the Master

Contractor and their MBE subcontractor(s) must provide the TOM respectively, MBE D-4A and/or

D-4B forms for Master Contractor activity and MBE form D-5 directly from the MBE subcontractor to the TOM for their activity. Further, the Master Contractor and their VSBE

Audit Services TORFP for DHCD Page 10 of 60 subcontractor(s) must provide the TOM respectively, VSBE E-3 form for Master Contractor activity and VSBE E-4A directly from the VSBE subcontractor to the TOM for their activity.

2.9 Terms and Conditions

2.9.1 The Master Contract terms and conditions are fully applicable to this TORFP and are not usually repeated within the TORFP except for clarification. Please refer to the Master Contract’s RFP for details.

2.9.2 The sole contact for the ASC Master Contractors at release of the TORFP and until after Task Order

Agreement (TOA) award is the DGS Contract Manager (See TORFP Key Information Summary

Sheet.) During the term of the TOA Award, the Agency TOM is the point of contact (see Scope of

Work).

2.10 Master Contractor’s Invoicing and Invoicing Report(s)

2.10.1 Invoices with applicable backup documentation are due to the TOM no later than the 10th of the calendar month for the proceeding month’s expended Task Order Agreement activity, unless there is a prior written approval by the TOM for another submission date for the specific month. For example, for the month of May 1 through May 31, 2020, all invoicing, MBE reports, and any monthly status reports as requested by the TOM are due to be submitted no later than June 10, 2020. Invoices shall be only for actual time worked during the reporting period.

2.10.2 Invoices shall include but not be limited to the following information:

• Name and address of the TOA’s applicable State agency;

• Contractor’s name, remittance address, and federal taxpayer identification;

• Invoice Period, Date, and Number;

• Total Amount Due; and

• Master Contractor’s BPO Number/User agency’s PO number(s).

2.10.3 The Total Amount Due for a TOA’s invoice will be derived from the information detailed on the invoice. Invoices submitted without the required backup information will not be approved or processed for payment until the TOA Contractor provides the required information. Information required to be included:

• The Labor Categories being billed and each applicable personnel’s name; and

• The personnel’s total hours for the month and his/her applicable Hourly Rate.

2.10.4 For each invoice, the Contractor shall provide documentation that all the direct hours invoiced for its employees and subcontractors have actually been expended as documented, totally and productively, in the performance of the TOA. The employee time sheets or electronic time keeping records shall be certified by the Contractor to be the actual time worked by the employees and its subcontractors. The Master Contractor shall provide the invoice and its applicable documentation to the applicable TOM.

2.10.5 After the first invoice, subsequent invoices should document cumulative hours worked by Labor

Category and cumulative dollars involved in order to coincide with the information reported on the

NTE.

2.10.6 If Non-Routine Travel is approved in the TORFP/TOA, the Non-Routine Travel must be billed by the Contractor on a separate line item from the Labor Hours being invoiced. The TOA Contractor

Audit Services TORFP for DHCD Page 11 of 60 shall provide a separate line item, or separate invoice for any State agency that requests a separate invoice for invoiced travel due to its accounting practices.

2.10.7 Only expended direct hours and expended dollars for Non-Routine Travel may be invoiced and may not exceed those applicable NTE prices as indicated in the TOA. Any unexpended dollars for labor or Non-Routine Travel at the conclusion of the TOA are not invoiced and are considered forfeited.

2.11 Travel

The TOM shall determine the applicability of Routine Travel versus Non-Routine Travel for a particular

TOA, if it was originally a requirement of the TORFP. See the Key Information Summary Sheet for travel requirements.

2.12 DGS Contract Management

The TOM manages the day-to-day operations of the TOA. However, neither the TOA Master Contractor nor the agency TOM is authorized to make contractual changes to the TOA regarding over all period of performance, scope, labor categories, the Not-To-Exceed pricing, or MBE. Any questions concerning these types of issues must be addressed to the DGS Contract Manager.

2.13 Security

2.13.1 Security Regarding Contractor-owned Computer Equipment. The TOA Contractor shall not connect any of its own equipment to an agency’s and State agent’s LAN/WAN without prior written approval by the State. The State will provide equipment as necessary for support that entails connection to the State LAN/WAN, or give prior written approval as necessary for connection.

2.13.2 The TOA Contractor shall provide and fill-out any necessary paperwork for security access to sign on at the State’s site if access is needed to the State’s LAN/WAN, as directed and coordinated with the State’s IT personnel through and by the TOM.

2.13.3 At all times at any facility, the TOA Contractor’s personnel shall ensure cooperation with State site requirements which include: being prepared to be escorted at all times, any specific security for that particular site, and providing information for badging and wearing the badge in a visual location at all times.

Audit Services TORFP for DHCD Page 12 of 60

3 Procurement Instructions

3.1 Pre-TOP Virtual Conference

3.1.1 A pre-TOP Virtual Conference (Conference) will be held at the date and time as indicated on the

Key Information Summary Sheet. Participation in the Conference shall be permitted upon receipt of an email and meeting invitation from the Procurement Officer only.

3.1.2 Participation in the Conference is not mandatory, but all interested parties are encouraged to attend in order to facilitate better preparation of their TOP.

3.1.3 Following the Conference, the participation/sign-in record (consisting of the list of all calendar invitees) and summary of the Conference will be distributed via the same mechanism described for amendments and questions (see ASC Master Contract RFP No. 001B0600234 Section 4.2.1 eMMA).

3.1.4 In order to participate in the Conference, all interested parties shall e-mail the Pre-Proposal

Virtual Conference Response Form (Attachment A) to the Procurement Officer no later than two

(2) Business Days prior to the Conference date.

If there is a need for closed captioning or other special accommodations due to a disability, please notify the Procurement Officer at least twenty-four (24) hours prior to the Conference date. The

Department will make a reasonable effort to provide such special accommodation.

3.2 eMaryland Marketplace Advantage (eMMA)

3.2.1 eMMA is the electronic commerce system for the State of Maryland. Release of the TORFP, Conference summary and attendance sheet, Master Contractor’s questions and the Procurement

Officer’s responses, addenda, and other solicitation-related information will be made available solely via eMMA.

3.3 Questions

3.3.1 All questions, including concerns regarding any applicable MBE or VSBE participation goals, shall identify in the subject line the Solicitation Number and Title (S00B6600041 – HFA Financial Audit

Services), and shall be submitted in writing via e-mail to the Procurement Officer or via eMMA:

at least five (5) days prior to the TOP due date and time as specified on the Key Information

Summary Sheet. The Procurement Officer, based on the availability of time to research and communicate an answer, shall decide whether an answer can be given before the TOP due date.

3.3.2 Answers to all questions that are not clearly specific only to the requestor will be distributed via the same mechanism as for TOP amendments.

3.3.3 The statements and interpretations contained in responses to any questions, whether responded to verbally or in writing, are not binding on the Department unless it issues an amendment in writing via eMMA.

3.4 Procurement Method

A task order agreement will be awarded in accordance with the Competitive Sealed Proposals method under

COMAR 21.05.03.

Audit Services TORFP for DHCD Page 13 of 60

3.5 TOP Due (Closing) Date and Time

3.5.1 TOP, in the number and form set forth in Section 4 Technical and Financial Format and

Submission Requirements, must be received by the Procurement Officer no later than the TOP due date and time indicated on the Key Information Summary Sheet in order to be considered.

3.5.2 Requests for extension of this date or time shall not be granted.

3.5.3 Master Contractors submitting TOP should allow sufficient delivery time to ensure timely receipt by the Procurement Officer. Except as provided in COMAR 21.05.02.10, TOP received after the due date and time listed in the Key Information Summary Sheet will not be considered.

3.5.4 The date and time of an e-mail submission is determined by the date and time of arrival in the e-mail address indicated on the Key Information Summary Sheet.

3.5.5 TOP may be modified or withdrawn by written notice received by the Procurement Officer before the time and date set forth in the Key Information Summary Sheet for receipt of TOP.

3.5.6 TOP may not be submitted by e-mail or facsimile.

3.5.7 Master Contractors not responding to this solicitation are requested to submit the “No Bid

Notice/Vendor Feedback” form, which includes company information and the reason for not responding (e.g., too busy, cannot meet mandatory requirements).

3.6 Public Information Act Notice

3.6.1 The Master Contractor should give specific attention to the clear identification of those portions of its TOP that it considers confidential and/or proprietary commercial information or trade secrets, and provide justification why such materials, upon request, should not be disclosed by the State under the Public Information Act, Md. Code Ann., General Provisions Article, Title 4. This information should be identified by page number and placed in the Transmittal Letter with the Bid.

For requests for information made under the PIA, the Public Information Officer shall examine the TOP to determine the validity of any requests for nondisclosure of trade secrets and other proprietary data identified in writing. Nondisclosure is permissible only if approved by the Office of the Attorney

General.

3.7 Award Basis

3.7.1 A Task Order shall be awarded to the responsible Master Contractor submitting the TOP that has been determined to be the most advantageous to the State, considering price and evaluation factors set forth in this TORFP (see COMAR 21.05.03.03F), for providing the goods and services as specified in this TORFP. See TORFP Section 5 for further award information.

3.7.2 Award of this TOA will not be final and complete until after: (1) the Master Contractor submits complete and satisfactory documentation required under the TOA and/or documentation required by the Procurement Officer; and (2) the TOA is signed by the Department following any required approvals of the TOA, including approval by the Board of Public Works, if such approval is required.

3.8 Oral Presentation

Master Contractors may be required to make virtual oral presentations to State representatives via. Virtual oral presentations are considered part of the Technical TOP. Master Contractors must confirm in writing any substantive oral clarification of, or change in, their TOP made in the course of discussions. Any such

Audit Services TORFP for DHCD Page 14 of 60 written clarifications or changes then become part of the Master Contractor’s TOP. The Procurement

Officer will notify Master Contractors of the date and time of virtual oral presentations via email and calendar invitation. The Procurement Officer will also provide Master Contractors with an opportunity to

“test” the virtual environment by sending a one (1) hour “practice” calendar invite within two (2) Business

Days of the Master Contractors oral presentation date.

3.9 Duration of TOP

TOP submitted in response to this TORFP are irrevocable for the latest of the following: 120 days following the TORFP due date and time, best and final offers if requested, or the date any protest concerning this

TORFP is finally resolved. This period may be extended at the Procurement Officer’s request only with the Master Contractor’s written agreement.

3.10 Revisions to the TORFP

3.10.1 If the TORFP is revised before the due date for TOP, the Department shall post any addenda to the

TOP on eMMA. It remains the responsibility of all Master Contractors to check eMMA for any addenda issued prior to the submission of TOP.

3.10.2 Master Contractors shall acknowledge the receipt of all addenda to this TORFP issued before the

TOP due date.

3.10.3 Failure to acknowledge receipt of an addendum does not relieve the Master Contractor from complying with the terms, additions, deletions, or corrections set forth in the addendum, and may cause the TOP to be deemed not responsive.

3.11 Cancellations

3.11.1 The State reserves the right to cancel this TORFP, accept or reject any and all TOP, in whole or in part, received in response to this TORFP and to waive or permit the cure of minor irregularities.

3.12 Incurred Expenses

The State will not be responsible for any costs incurred by any Master Contractor in preparing and submitting a TOP or performing any other activities related to submitting a TOP in response to this solicitation.

3.13 Protest/Disputes

Any protest or dispute related to this solicitation or the TOA award shall be subject to the provisions of

COMAR 21.10 (Administrative and Civil Remedies).

3.14 False Statements

Master Contractors are advised that Md. Code Ann., State Finance and Procurement Article, § 11-205.1 provides as follows:

3.14.1 In connection with a procurement contract a person may not willfully:

3.14.1.1 Falsify, conceal, or suppress a material fact by any scheme or device.

3.14.1.2 Make a false or fraudulent statement or representation of a material fact.

Audit Services TORFP for DHCD Page 15 of 60

3.14.1.3 Use a false writing or document that contains a false or fraudulent statement or entry of a material fact.

3.14.2 A person may not aid or conspire with another person to commit an act under Section 3.14.1.

3.14.3 A person who violates any provision of this section is guilty of a felony and on conviction is subject to a fine not exceeding $20,000 or imprisonment not exceeding five (5) years or both.

3.15 MBE Participation Goal

3.15.1 Establishment of Goal and Subgoals

The MBE goal for this Audit TORFP is 15%. Each Master Contractor responding to this TORFP must complete and submit the MBE forms as described below.

A Master Contractor that does not commit to meeting the entire MBE participation goal outlined in this Section 3.15 must submit a request for waiver with its TOP submission that is supported by good faith efforts documentation to meet the MBE goal made prior to submission of its TOP as outlined in

Attachment D-1B, Waiver Guidance. Failure of a Master Contractor to properly complete, sign, and submit Attachment D-1A at the time it submits its TOP(s) to the TORFP will result in the State’s rejection of the Master Contractor’s TOP for the applicable Service Category. This failure is not curable.

3.15.2 Attachments.

3.15.2.1 D-1 to D-5 – The following Minority Business Enterprise participation instructions, and forms are provided to assist Master Contractors:

1. Attachment D-1A MBE Utilization and Fair Solicitation Affidavit & MBE Participation

Schedule (must be submitted with Bid)

2. Attachment D-1B Waiver Guidance

3. Attachment D-1C Good Faith Efforts Documentation to Support Waiver Request

4. Attachment D-2 Outreach Efforts Compliance Statement

5. Attachment D-3A MBE Subcontractor Project Participation Certification

6. Attachment D-3B MBE Prime Project Participation Certification

7. Attachment D-4A Prime Contractor Paid/Unpaid MBE Invoice Report

8. Attachment D-4B MBE Prime Contractor Report

9. Attachment D-5 Subcontractor Paid/Unpaid MBE Invoice Report

The Master…