Schedule A - Statement of Work_.docx

Enter your company name Schedule A – Statement of Work Request for Proposal No.260000001628 Strengthening Enforcement Capacity in Housing & Lending Practices and Impact of Artificial Intelligence (AI) This schedule identifies the anticipated requirements of any Contract resulting from this RFP. The term “Contractor” in this document refers to a bidder responding to this RFP, as well as the Contractor who is awarded the contract. The term “bidder” is used to identify where specific responses to the RFP are required. Yellow fields are also used to identify areas where a bidder response is required.

The Contractor must respond to each requirement or question and explain how it will fulfill each requirement. Attach any supplemental information and reference it appropriately within your response.

Background Michigan Department of Civil Rights (MDCR) is an administrative agency with investigative and enforcement authority. The Enforcement Process includes all the tasks performed when a person interacts with MDCR about a civil rights-related need or concern, including investigation and resolution of complaints of unlawful discrimination, outreach and education, and community engagement.

Pursuant to civil rights laws, including but not limited to fair housing laws on both State and Federal level, discrimination is prohibited based on, race, color, religion, familial status, national origin, sex, sexual orientation, gender identity or expression, disability, age, marital status, and source of income. More specifically, fair housing laws protect a person engaging in a real estate transaction at any point during the process in which the individual views or purchases a home, views or rents an apartment or other living facility, obtains financing, such as a mortgage or home improvement loan. State and Federal laws also prohibit steering which is described as directing renters or home buyers to neighborhoods based on race and prohibit predatory lending which associates marketing less favorable home loans with people based on a protected characteristic.

AI is significantly transforming civil rights laws, including but not limited to fair housing laws by creating new risks for discrimination while prompting regulators to modernize enforcement. While AI offers efficiencies in marketing, tenant screening, and property management, its reliance on historical data can perpetuate bias against protected classes, leading to "disparate impact" claims even when discrimination is unintentional.

Scope MDCR is seeking a vendor who will develop a curriculum to enhance the current enforcement process related to Housing and Lending practices. This curriculum will strengthen MDCR mission and its enforcement capacity in the Housing and Lending practices and will provide guidelines and best practices used to address the recent increased impact of AI in the Housing and Lending field. The selected bidder will provide the MDCR staff with the necessary training and tools to use in their daily work that will help them recognize and act strategically towards their coordinated efforts to effectively address discrimination patterns, develop complex investigations, and provide public education and awareness to help communities recognize and act on such type of discrimination practices.

General Requirements MDCR is inviting proposals from qualified and experienced vendors that can provide assistance to the Department in effort to strengthen its Enforcement Division’s capacity in housing & lending practices and address the latest developments related to the impact of AI in this sector. The work should concentrate on the two main topics provided below, and both topics must be supported by vendor provided training:

Strengthening MDCR Enforcement Capacity in Housing and Lending Practices:

Bidder must develop and/ or demonstrate the ability to provide document review, current tools enhancement, training, workshops, case development and coordination processes that focus on the following:

a) Assess MDCR Enforcement Division internal and external processes.

i) MDCR will provide a sample of few policies currently used for internal and external processes.

ii) Bidder must evaluate all processes provided by the department.

b) Identify discrimination practices and provide practical tools, structured frameworks, and sustained advisory support to the Division’s ongoing investigation and enforcement mission.

c) Integrate the coordination between investigators and attorneys in both individual and more complex multi-party matters into the existing workflows.

d) Support public education and awareness efforts that reinforce enforcement priorities and help communities recognize unlawful discrimination concerns.

e) Strengthen evidentiary development and documentary practices that support legally sound enforcement decision-making.

f) Identify effective use of disparate impact frameworks and related legal theories in housing cases.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Bidder must describe how they comply with the above requirement(s). (Use the space provided below for requested description):

Document review: Can you provide your step-by-step document review process done most recently for an agency or an internal client team?

Document review: Can you provide the methods and techniques you use to develop customized process improvements that will align with our specific enforcement workflow and data systems?

Work implementation: Can you provide 2-3 examples where your structured approach helped integrate coordination between investigators and attorneys into seamless communication, data security and evidentiary integrity into the existing workflows?

Impact of AI in Housing & Responsive AI use in MDCR Enforcement Investigations:

Bidder must develop and/ or demonstrate its ability to provide AI related tools, training and workshops that focus on the following:

(1) Provide a list of tools and/ or information on how potential tools will help the Enforcement Division identify and investigate unlawful discrimination where automated or AI-enabled systems may be involved.

(2) Provide support that will address thoughtful internal decision-making around the use of AI tools in Enforcement’s Division workflow.

(a) Bidder must note that MDCR will not be purchasing any AI related software or tools as a part of this RFP.

(3) Provide structured approaches to developing complex investigations in which multiple actors, policies, or decision points may be involved.

(4) Address updates in the law pertaining to the areas of jurisdiction predominantly in housing, artificial intelligence and disparate impact.

(5) Support outreach and education efforts aimed to housing providers and landlords to promote awareness of civil rights risks associated with AI tools and encourage voluntary compliance.

(6) Improve housing seekers understanding on how automated systems may affect housing access and when they should seek assistance.

(a) Impacts of AI and automated systems and how to identify when the technology may be a contributing factor in a complaint.

(b) Criteria and best practices to consider if AI technologies are implemented in the department’s internal processes, including considerations related to bias, transparency, documentation, accountability, and civil rights risk.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Bidder must describe how they comply with the above requirement(s). (Use the space provided below for requested description):

AI related tools: Can you provide documented validation studies or references proving that your tools used to identify automated or AI-enabled systems are free of bias and allow investigators to detect changes in those systems over time across different levels of external, known-fair datasets?

Training and workshops:

Bidder must provide the following training:

(1) Educate MDCR staff on how AI and automated systems may result in discrimination and how to identify when the technology may be a contributing factor in a complaint.

(2) Training guides, tools and resources on investigating cases where tenant screening platforms, algorithmic risk scoring tools, digital advertising systems, or other automated decision-making systems may be involved.

(3) Structural guidance for reviewing AI technologies considered for internal MDCR use, including considerations related to bias, transparency, documentation, accountability, and civil rights risk.

(4) Best practices on conducting evaluation of disparate impact and artificial intelligence on processing and investigating complaints related to housing and lending practices.

(5) Enhancement in investigative skills and professional development at all Enforcement Division’s staffing levels pertaining to disparate impact and artificial intelligence.

(6) Enhancement in Enforcement Division’s ability to assess and triage housing complaints across a range of complexities, from individual allegations to matters that may involve broader patterns or practices.

i) Bidder must provide training materials and documentation.

ii) Training must be provided in person and/or virtually as needed.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Bidder must describe how they comply with the above requirement(s). (Use the space provided below for requested description):

Training and workshops: Can you share 2-3 examples where your training specifically prepared an internal team or an agency to handle major redlining, underwriting bias, or predatory lending enforcement action?

Training and workshops: How does your training and workshops explicitly teach staff to bridge the gap between evaluating data trends and building a legally defensible case?

Training and workshops: Can you provide 2-3 examples of historical datasets that were used to develop your training and workshop models, and how do you ensure those models themselves are not tainted by historic housing or lending discrimination?

Training and workshops: What post-training technical support models do you offer if our enforcement division experiences a roadblock during a complex housing investigation?

Project Plan The Contractor will carry out this project under the direction and control of the Program Manager.

Upon Contract Award: A final project plan must be submitted for final approval within 30 calendar days of the Effective Date. The plan must also include:

1) The project breakdown showing sub-projects, tasks, timeline, milestones and resources required.

2) Calendar of suggested progress updates and reviews;

a) Vendor must provide bi-weekly written status reports for tasks completed in the current bi-weekly period

b) Vendor must provide written tasks planned for the upcoming bi-weekly period

3) Process for addressing issues and changes;

a) Minor schedule changes that affect a 3-day business window can be approved by the project manager

b) Changes and/or issues affecting cost, legal compliance, or core training deliverables, will require Change Notice approved & signed by the department director

4) Individuals responsible for receiving/responding to the requested information.

a) Sensitive data and source information must be always safeguarded against unauthorized disclosure

b) Requested information must be delivered to the designated person without delay, ensuring the response aligns with all formal solicitation requirements Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

ADA Compliance The State is required to comply with the Americans with Disabilities Act of 1990 (ADA), including its accessibility standard for websites, applications, content and documents. All Contract Activities created, provided, or made available by Contractor under this Contract in a digital format, including but not limited to, websites, applications, software, mobile applications, text, images, sounds, videos, controls, animations, links, and documents (including files in the following formats: PDF, word processing, presentation, and spreadsheet) must comply with the accessibility standards provided in the Digital Accessibility Standards, located at SOM Digital Standards.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Timeframes All Contract Activities must be delivered within one year from the beginning of the contract. The receipt of order date is pursuant to the Notices section of the Standard Contract Terms.

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Reporting The Contractor must submit to the Program Manager, the following written reports:

A final report on processes used for education, training, and implementation. The final report shall also include next steps, recommendations, and findings per established Strengthening MDCR Enforcement Capacity in Housing and Lending Practices requirements, A final report on processes used for education, training, and implementation. The report should also include next steps and recommendations regarding the established Impact of AI in Housing & Responsive AI use in MDCR Enforcement Investigations requirements.

A final user resource manual, which includes but is not limited to the resources, tools, and processes addressed in the two written reports above.

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Bidder Response

Explain your reporting capabilities, any reporting that is included in your proposal, and any additional reporting capabilities.

Describe how you will comply with the requirement(s)

Meetings The Contractor must attend the following meetings:

a. Weekly meetings The State may request other meetings, as it deems appropriate.

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Contractor Representative The Contractor must appoint one individual specifically assigned to State of Michigan accounts, who will respond to State inquiries regarding the Contract Activities, answer questions related to ordering and delivery, etc. (the “Contractor Representative”).

Bidder must identify its Contractor Representative. The Contractor must notify the Contract Administrator at least 30 calendar days before removing or assigning a new Contractor Representative. Removal or assigning a new Contractor Representative must be approved by the State of Michigan.

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Bidder must identify its Contractor Representative: Enter name here

Key Personnel The Contractor must appoint two individuals, one in Legal, Civil Rights & Regulatory specialized expertise, and one in Housing Data Engineering specialized expertise who will be directly responsible for the day-to-day operations of the Contract (“Key Personnel”). Key Personnel must be specifically assigned to the State account, be knowledgeable about the contractual requirements, and respond to State inquiries within 24 hours.

The State has the right to recommend and approve in writing the initial assignment, as well as any proposed reassignment or replacement, of any Key Personnel. Before assigning an individual to any Key Personnel position, Contractor will notify the State of the proposed assignment, introduce the individual to the State’s Project Manager, and provide the State with a resume and any other information about the individual reasonably requested by the State. The State reserves the right to interview the individual before granting written approval. In the event the State finds a proposed individual unacceptable, the State will provide a written explanation including reasonable detail outlining the reasons for the rejection. The State may require a 30-calendar day training period for replacement personnel.

Contractor will not remove any Key Personnel from their assigned roles on this Contract without the prior written consent of the State. The Contractor’s removal of Key Personnel without the prior written consent of the State is an unauthorized removal (“Unauthorized Removal”). An Unauthorized Removal does not include replacing Key Personnel for reasons beyond the reasonable control of Contractor, including illness, disability, leave of absence, personal emergency circumstances, resignation, or for cause termination of the Key Personnel’s employment. Any Unauthorized Removal may be considered by the State to be a material breach of this Contract, in respect of which the State may elect to terminate this Contract for cause under the Termination for Cause section of the Standard Contract Terms. It is further acknowledged that an Unauthorized Removal will interfere with the timely and proper completion of this Contract, to the loss and damage of the State, and that it would be impracticable and extremely difficult to fix the actual damage sustained by the State as a result of any Unauthorized Removal. Therefore, Contractor and the State agree that in the case of any Unauthorized Removal in respect of which the State does not elect to exercise its rights under Termination for Cause, Contractor will issue to the State the corresponding credits set forth below (each, an “Unauthorized Removal Credit”):

For the Unauthorized Removal of any Key Personnel designated in the applicable Statement of Work, the credit amount will be $5,000.00 per individual if Contractor identifies a replacement approved by the State and assigns the replacement to shadow the Key Personnel who is leaving for a period of at least 30-calendar days before the Key Personnel’s removal.

If Contractor fails to assign a replacement to shadow the removed Key Personnel for at least 30-calendar days, in addition to the $5,000.00 credit specified above, Contractor will credit the State $100.00 per calendar day for each day of the 30-calendar day shadow period that the replacement Key Personnel does not shadow the removed Key Personnel, up to $3,000.00 maximum per individual. The total Unauthorized Removal Credits that may be assessed per Unauthorized Removal and failure to provide 30-calendar days of shadowing will not exceed $3,000.00 per individual.

Contractor acknowledges and agrees that each of the Unauthorized Removal Credits assessed above: (i) is a reasonable estimate of and compensation for the anticipated or actual harm to the State that may arise from the Unauthorized Removal, which would be impossible or very difficult to accurately estimate; and (ii) may, at the State’s option, be credited or set off against any fees or other charges payable to Contractor under this Contract.

The Contractor must identify the Key Personnel, indicate where they will be physically located, describe the functions they will perform, and provide current chronological résumés.

The Contractor must identify all Key Personnel that will be assigned to this contract and include the following:

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Name and title of staff that will be designated as Key Personnel.

Key Personnel years of experience in the current classification.

Identify which of the required key personnel positions they are fulfilling.

Key Personnel’s roles and responsibilities, as they relate to this RFP, if the Contractor is successful in being awarded the Contract. Descriptions of roles should be functional and not just by title.

Identify if each Key Personnel is a direct, subcontract, or contract employee.

Identify if each Key Personnel staff member is employed full-time (FT), part-time (PT) or temporary (T), including consultants used for the purpose of providing information for the proposal.

List each Key Personnel staff member’s length of employment or affiliation with the Contractor’s organization.

Identify each Key Personnel’s percentage of work time devoted to this Contract.

Identify where each Key Personnel staff member will be physically located (city and state) during the Contract performance.

The Contractor must provide detailed, chronological resumes of all proposed Key Personnel, including a description of their work experience relevant to their purposed role as it relates to the RFP.

Qualifications will be measured by education and experience with reference to experience on projects similar to that described in the RFP.

Bidder Response

Bidder must provide the resumes and information as required above – either in this response box or identified here as an attachment to this RFP labelled as Key Personnel.

Organizational Chart Bidder Response

Provide an overall organizational chart that details staff members, by name and title, and subcontractors.

Add your org chart here or insert the label or filename if you are adding it as a separate attachment.

Work Hours and Technical Support Bidder Response

The Contractor must provide Contract Activities during the State’s normal working hours Monday – Friday, 8:00 am to 5:00 pm EST and possible night and weekend hours depending on the requirements of the project.

The Contractor must specify its technical support number for the State to contact the Contractor for technical support.

Insert technical support number and availability

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Disclosure of Subcontractors If the Contractor intends to utilize subcontractors, the Contractor must disclose the following:

The legal business name; address; telephone number; a description of subcontractor’s organization and the services it will provide; and information concerning subcontractor’s ability to provide the Contract Activities.

The relationship of the subcontractor to the Contractor.

Of the total bid, the price of the subcontractor’s work.

Whether the Contractor has previous working experience with the subcontractor. If yes, provide the details of that previous relationship.

A complete description of the Contract Activities that will be performed or provided by the subcontractor.

Required Subcontractor information. Bidders must complete the table below for each anticipated subcontractor. Copy the table as many times as needed for each subcontractor. Complete the second table with the percentage of work that will be completed by all subcontractors involved.

The legal business name, address, telephone number of the subcontractor(s).

A description of subcontractor’s organization and the services it will provide and information concerning subcontractor’s ability to provide the Contract Activities.

The relationship of the subcontractor to the Bidder.

Is the subcontractor a GDBE?

Whether the Bidder has previous working experience with the subcontractor.

A complete description of the Contract Activities that will be performed or provided by the subcontractor.

Of the total bid, the price of the subcontractor’s work.

Work performed by subcontractors

Total percentage of work that will be performed by subcontractors: Insert %

Total percentage of subcontracted work that will be performed by GDBE subcontractors: Insert %

Security The State may require the Contractor’s personnel to wear State issued identification badges. The Contractor’s staff may be required to make deliveries to or enter State facilities.

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Bidder Response

The Contractor must explain any security measures in place to ensure the security of State facilities.

Explain your security measures.

Price Term Pricing is firm for the entire length of the Contract.

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Payment Methods The State will make payment for Contract Activities via EFT once invoices have been approved and within the parameters of any milestone payment schedules.

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Procedure All invoices must be submitted to program manager for approval prior to processing.

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Authorizing Document The appropriate authorizing document for the Contract will be delivery order.

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Acceptance, Inspection, and Testing The State’s acceptance of the Contractors’ work will be based on the Contractors’ completing agreed upon milestones, if any, as determined by the Program Manager for the specific project.

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Final Acceptance The project will be considered final and accepted when all milestones are completed and have been acknowledged as completed, in writing, by the Program Manager.

Bidder Response

☐ I confirm the above requirement(s) and agree with no exception(s)

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Required Functionality Relating to Data Retention, Disposal, and Retrieval The State has legal obligations to retain, dispose, and retrieve State Data along with obligations to manage and secure State Data. To meet these obligations, the Solution must allow the State to:

retain all data for the entire length of the Contract.

delete its data or request the deletion of its data, even data that may be stored offline or in backups.

transfer its data back to the State or to a new vendor or new solution.

transfer its data to the Archives of Michigan as may be required by a retention and disposal schedule.

retrieve data, even data that may be stored offline or in backups.

Except as otherwise stated in the Contract, Contractor will not dispose of, delete, or destroy State Data without the prior written approval of the State.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Bidder must review and explain how the data retention, disposal, and retrieval requirements will be met by the solution and describe its data management capabilities (storage limitations, duration, etc.). If the Solution does not allow the State to perform these activities itself, the bidder must explain how it will support the State’s compliance with these requirements.

Describe how you will comply with the requirement(s)

Liquidated Damages Late or improper completion of the Contract Activities will cause loss and damage to the State, and it would be impracticable and extremely difficult to fix the actual damage sustained by the State. Therefore, if there is late or improper completion of the Contract Activities the State is entitled to collect liquidated damages in the amount of $1,000.00 and an additional $100.00 per day for each day Contractor fails to remedy the late or improper completion of the Work.

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