SOW_-_Final.pdf

RECOMMENDED MINIMUM REQUIREMENTS TO BID BY THE PROPOSER

EXHIBIT 1: MINIMUM REQUIREMENTS FOR PROPOSER

1. CURRENT ERP AND ENTERPRISE SYSTEMS ENVIRONMENT

1.1 Key Drivers, Challenges, and Opportunities

1.2 Organizational Size and Operating Context

1.3 Summary Takeaways for Proposers

2. ERP SAAS PROVIDER SCOPE

2.1 ERP SaaS Objectives

2.2 ERP SaaS Functional Scope

2.2.1 ERP Functional and Technical Requirements

2.2.2 ERP Functionality and Vision Narratives

2.3 SaaS Non-Functional Requirements (Service Level Requirements)

2.4 SaaS Provider Reporting and Deliverables

ERP Software Replacement

Request for Proposal (RFP) - RFP # 126DT039 Page 1

Recommended Minimum Requirements to Bid by the Proposer Proposer shall review the following minimum requirements as guidance in making the decision to bid on this RFP. These requirements apply to the ERP Software licensor, regardless of whether its product is proposed by the licensor, a distributor, or a value reseller, are outlined in Exhibit 1.

Exhibit 1: Minimum Requirements for Proposer

Category Requirement Description / Expectation Submission Requirement

Corporate Eligibility

Authorized to Provide Solution

Proposer must be the ERP software manufacturer (OEM) or an authorized reseller/partner.

Documentation confirming OEM status or authorization letter from software manufacturer.

Financial Stability

Demonstrated Financial Viability

Proposer (or OEM) must demonstrate financial stability to support long-term SaaS delivery.

Audited financial statements (3 years), public filings, or equivalent evidence.

Product Maturity

Commercially Available SaaS Solution

Proposed ERP must be a fully developed, production-ready SaaS platform with an established customer base.

Description of product maturity, release history, and number of active customers.

Client References

Comparable Implementations

Minimum of three (3) client references of similar size, complexity, or industry (public sector preferred).

Reference details including organization, scope, and contact information.

SaaS Delivery Model

Cloud-Based ERP Platform

Solution must be delivered as a SaaS offering with defined service levels, updates, and support.

Description of SaaS model, SLAs, update cycles, and support structure.

Support & Viability

Long-Term Product Support

Demonstrated ability to provide ongoing product support, maintenance, and roadmap evolution.

Description of support model, customer success structure, and product roadmap.

Security & Compliance

Industry Standards Compliance

Solution must meet standard security and compliance requirements (e.g., SOC 2 or equivalent).

Documentation of certifications, security controls, and compliance practices.

Request for Proposal (RFP) - RFP # 126DT039 Page 2

1. Current ERP and Enterprise Systems Environment RTD’s current enterprise systems environment has evolved over time through the implementation of multiple platforms supporting distinct business functions. While these systems individually meet specific operational needs, they operate largely independently, resulting in a fragmented application landscape with limited integration and constrained enterprise visibility

Exhibit 2 below provides a high-level view of RTD’s current enterprise systems architecture, including core ERP platforms and supporting applications across functional domains. As illustrated in Exhibit 2, RTD’s core ERP-related capabilities are distributed across multiple systems, including Oracle E-Business Suite (EBS) for financials, Workday for human capital management and talent development, and other platforms supporting operational and customer functions. These systems are not unified under a single enterprise architecture and rely on a combination of point-to-point integrations, batch interfaces, and manual processes to exchange data.

In addition to the core systems shown, several critical business functions are supported through supplemental or “shadow” systems, including tools such as OpenGov and Microsoft Excel. These tools are used to address gaps in core system capabilities, particularly in areas such as budgeting, treasury and cash management, reporting, and operational tracking, resulting in fragmented processes, duplicate data entry, and increased reliance on manual reconciliation.

Financials Management Business Function(s):

RTD’s financial management environment is anchored in Oracle E-Business Suite (EBS), which serves as the system of record for core financial transactions and controls. Over time, the platform has been extended (as outlined below), Request for Proposal (RFP) - RFP # 126DT039 Page 3

Exhibit 2: Current State ERP Environment and Other Systems and supplemented to meet evolving business needs, resulting in a hybrid operating model where certain processes are executed within the ERP while others are performed through external tools and manual methods (e.g. person records, such as number, name, job, position, and supervisor, are sent from Workday to EBS, excluding pay and benefits) . This distributed approach has enabled continuity of operations but has introduced challenges related to process consistency, data integrity, and end-to-end visibility. Financial activities such as budgeting, forecasting, treasury management, and reporting often span multiple systems, requiring reconciliation and coordination across platforms. As a result, the current environment limits RTD’s ability to achieve fully integrated financial operations and real-time insights. Core functions include:

• General Ledger and Financial Reporting

• Accounts Payable and Accounts Receivable

• Budgeting and Financial Planning

• Treasury and Cash Management (partially supported through spreadsheets and manual processes)

• Grants and Project Accounting

• Fixed Asset Accounting

Request for Proposal (RFP) - RFP # 126DT039 Page 4

While Oracle EBS supports core transaction processing, several financial processes extend beyond the system into supplemental tools. These conditions introduce challenges in data consistency, auditability, and real-time financial visibility.

Procurement and Supply Chain Business Function(s):

RTD’s procurement and supply chain functions are primarily supported within Oracle E-Business Suite (EBS), forming the backbone of the agency’s procure-to-pay operations. While the platform provides foundational capabilities, the overall process landscape includes a mix of system-based and manual activities. Procurement workflows often extend beyond the ERP into external communication channels and supplemental tracking mechanisms, reflecting gaps in end-to-end automation and integration. This distributed execution model has enabled operational continuity but has limited visibility into procurement status, supplier performance, and spend analytics. As a result, procurement activities require coordination across multiple stakeholders and systems, impacting efficiency and cycle times. Core functions include:

• Requisitioning and purchasing

• Procure-to-Pay lifecycle (requisition, approval, purchase order, receiving, invoicing)

• Vendor and supplier management

• Contract tracking and spend management

While Oracle EBS supports core procurement transactions, many processes are not fully automated end-to-end. Approval workflows frequently occur outside the system through email or other informal methods, and procurement tracking may rely on external tools to supplement system limitations. Integration with financial and inventory functions is not fully optimized, requiring manual coordination and reconciliation across teams. In addition, supplier onboarding, contract management, and spend visibility involve multiple systems and touchpoints. These conditions limit RTD’s ability to enforce standardized procurement practices, improve sourcing efficiency, and gain timely, actionable insights into procurement performance.

Inventory Management Business Function(s):

RTD’s inventory management capabilities are supported within Oracle E-Business Suite (EBS) and are closely linked to procurement and financial processes. The system provides core functionality for tracking materials and managing inventory transactions; however, the broader inventory management landscape includes a combination of system-based and manual processes. This hybrid approach reflects the need to address operational requirements that extend beyond the current capabilities of the ERP platform and limits overall visibility and control. Core functions include:

• Materials and parts inventory tracking

• Warehouse and stock management (non-EAM scope)

• Inventory transactions integrated with procurement and finance

While Oracle EBS provides foundational inventory functionality, certain tracking and reconciliation activities are supplemented through external tools and manual processes, particularly where real-time visibility or operational coordination is required. As a result, inventory data often requires periodic reconciliation, increasing the risk of inconsistencies and delays in reflecting accurate inventory positions.

Integration between inventory, procurement, and financial systems is also limited, affecting the timeliness and accuracy of inventory valuation and reporting. Additionally, the current environment constrains RTD’s ability to perform advanced inventory planning, demand forecasting, and optimization of stock levels. A

Request for Proposal (RFP) - RFP # 126DT039 Page 5 more unified and integrated ERP solution would enable improved inventory control, real-time visibility, and alignment with broader financial and operational processes.

Human Resources Business Function(s):

RTD’s Human Resources management capabilities are supported within Workday. The current system has limited integration with the financials system and multiple timekeeping solutions continue to exist (UKG, TIES, Workday), requiring complex integration(s), data review/validation, and reliance on external support.

Core functions include:

• Human Resources / Personnel

• Payroll Processing

• Benefits Administration

• Learning Management System (LMS)

• Talent Acquisition and Recruiting

• Onboarding

• Timekeeping

• Employee Administration

• Performance Management

• Workforce and Data Analytics

While the HR system provides a centralized platform, several processes remain manual, fragmented, or overly reliant on external tools and system support providers. As configured, Workday’s functionality often requires manual workarounds (e.g., Excel, Microsoft forms, etc.) while certain modules such as Learning and Performance Management lack the flexibility and functional depth expected by business users.

Additionally, RTD relies heavily on external consultants to support system configurations and modifications.

A more unified and integrated ERP solution should better align HR technology to organizational needs.

1.1 Key Drivers, Challenges, and Opportunities

RTD’s initiative to modernize its ERP environment is driven by the need to better align its enterprise systems with current and future business requirements. As the agency continues to manage a complex and growing transit network, the ability to operate efficiently, leverage data effectively, and support cross-functional coordination has become increasingly critical. The current systems landscape, while functional, was not designed to support the level of integration, scalability, and agility now required to meet evolving operational and strategic demands.

A primary driver for this effort is the aging nature of RTD’s core financial system, and the increasing effort required to sustain it. Over time, the reliance on supplemental tools and manual processes to address functional gaps has introduced inefficiencies and operational complexity. These conditions impact key business processes such as financial close, budgeting, procurement execution, and inventory management, where activities often span multiple systems and require reconciliation across disparate data sources. As a result, RTD faces challenges in achieving streamlined, end-to-end business processes and consistent, real-time visibility into financial and operational performance.

In addition, the current environment limits RTD’s ability to fully leverage its data as a strategic asset. Data is distributed across multiple platforms, with varying structures and levels of accessibility, making it difficult

Request for Proposal (RFP) - RFP # 126DT039 Page 6 to generate timely, enterprise-wide insights. Reporting often requires manual aggregation and validation, reducing the speed and reliability of decision-making. These challenges are further compounded by limited integration across systems, which constrains the agency’s ability to establish a cohesive and unified enterprise architecture.

From an operational perspective, the existing environment also presents challenges in standardizing processes, enforcing controls, and improving user experience. Variability in workflows, reliance on external tools, and inconsistent system interactions create additional administrative burden for staff and limit opportunities for automation. This affects not only efficiency but also the ability to adapt processes in response to changing business needs, regulatory requirements, and service demands.

At the same time, RTD has an opportunity to transform its enterprise systems environment by adopting a modern, cloud-based ERP platform that enables integrated, end-to-end business processes. A unified ERP solution would provide a foundation for improved data consistency, enhanced reporting and analytics, and more efficient process execution across finance, procurement, inventory, and potentially other enterprise functions. It would also support greater standardization, reduce reliance on manual workarounds, and enable scalability to meet future growth and operational complexity.

This effort also presents an opportunity for RTD to establish a more cohesive enterprise architecture, with improved integration across systems and a clearer alignment between technological capabilities and business objectives. By modernizing its ERP platform, RTD can position itself to enhance operational transparency, strengthen financial and operational controls, and enable more proactive, data-driven decision-making. Ultimately, this initiative is intended to support RTD’s long-term vision of delivering efficient, reliable, and high-quality transit services through a modern, integrated, and sustainable technology foundation.

1.2 Organizational Size and Operating Context

This section provides selected information regarding RTD’s organizational scale, structure, and operating environment to support proposers in developing appropriately sized and structured SaaS ERP software proposals. The information is intended to provide context on the size, complexity, and distribution of RTD’s workforce and business functions as they relate to the use of an ERP platform.

Proposers should use this information to inform assumptions related to software licensing, user role definitions, access levels, and subscription models. This includes consideration of different user types (e.g., full users, approvers, requesters, self-service users, and reporting users), as well as anticipated usage patterns across finance, procurement, inventory, human resources, and other relevant functional areas.

Proposers should clearly describe their proposed licensing structure and any assumptions used in determining user counts, role classifications, and module utilization.

In addition, proposers should consider how organizational scale may influence other SaaS-related components of the solution, including environment sizing, data storage, reporting and analytics usage, workflow volumes, and integration activity. Where applicable, proposers may also include assumptions related to vendor-provided enablement services—such as training subscriptions, learning content, or training credits—that support system adoption and ongoing use of the platform.

Exhibit 3 summarizes information on organizational divisions and budgeted positions. Proposers should consider both the overall size of the organization and the distribution of users across key functional areas when developing their proposals. Any assumptions regarding growth, scalability, or future expansion of the user base should be clearly identified.

Request for Proposal (RFP) - RFP # 126DT039 Page 7

Exhibit 3: RTD Organizational Positions

DIVISION FY 2026 POSITIONS (BUDGETED)

Bus Operations 1,738

Capital Programs 247

Civil Rights 21

Contracting & Procurement 53

COO 2

Deputy CEO 3

Finance 121

General Counsel 26

Human Resources 70

Information Technology 148

Paratransit Operations 11

Planning 15

Rail Operations 760

Safety and Environmental 25

Service Development 27

Transit Police and Emergency Management 233

Other 145

Total 3,645

1.3 Summary Takeaways for Proposers

RTD operates as a special district enterprise fund subject to GASB pronouncements, FTA Circulars, 2 CFR Part 200, and Colorado statute applicable to public transit special districts. Proposers should demonstrate native solution support for public-sector accounting standards, industry best practices for human resources, federal grant compliance, and the supporting reports required for the Annual Comprehensive Financial Report, the Schedule of Expenditures of Federal Awards, the National Transit Database, and Colorado unclaimed property reporting.

The following considerations are intended to help proposers align their responses with RTD’s priorities and objectives for this procurement. Proposers are encouraged to clearly demonstrate how their solutions address RTD’s current challenges while supporting a modern, integrated, and scalable enterprise environment. In addition to meeting functional requirements, RTD is interested in understanding each proposer’s ability to deliver long-term value and support future business needs. Responses should reflect both the depth of functional capabilities and the strength of the overall platform. Proposers should consider the following in preparing their responses:

Request for Proposal (RFP) - RFP # 126DT039 Page 8

• RTD is seeking a solution that modernizes and replaces its current Oracle EBS-based financial environment, including procurement and inventory management functions.

• Solutions should demonstrate the ability to enable integrated end-to-end business processes across finance, human resources, procurement, and inventory domains.

• Proposers should address opportunities to reduce reliance on supplemental and “shadow” systems (e.g., bidding, treasury, reporting) through a unified ERP platform.

• The proposed solution should support improved data consistency, enhanced reporting, and real-time visibility to enable more effective decision-making.

• RTD values solutions that offer robust integration capabilities and a scalable architecture to support evolving business and operational needs.

• Proposers should use the provided organizational and operating context to develop appropriate licensing models and clearly articulate assumptions related to user roles, access levels, and anticipated system usage.

• While financial functionality is the primary focus, proposers may differentiate by demonstrating a unified ERP platform strategy, including the ability to support additional ERP and other enterprise functions over time.

Request for Proposal (RFP) - RFP # 126DT039 Page 9

2. ERP SaaS Provider Scope The proposed ERP SaaS shall be inclusive of any third-party software, integration platforms, utilities, mobile, and with analytics capabilities. The solution shall enable RTD to fully automate all ERP business practices and retire as many current ERP and related software products/platforms – inclusive of shadow systems, databases, and spreadsheets. The SaaS solution and environments must be served through a FedRamp certified or equivalent security certified hosting facilities (e.g., SOC2 Type II Requirements). The SaaS solution must be hosted and supported from U.S. hosting facilities (for both primary and secondary/disaster recovery).

2.1 ERP SaaS Objectives

The proposed solution must enable RTD to transition to a modern, cloud-based ERP environment aligned with the agency’s strategic priorities, operational needs, and long-term technology vision. The ERP software shall support integrated, efficient, and scalable business processes across finance, procurement, human resources and inventory management, while providing a foundation for future expansion into additional enterprise capabilities. The solution must meet the following objectives:

Functional and Business Objectives:

• Provide a complete, accurate, and timely system of record for financial data in accordance with applicable accounting standards, including Government Accounting Standards Board (GASB), Federal Transit Administration (FTA), and other regulatory requirements.

• Ensure internal controls over financial reporting are audit-ready and compliant with COSO, the GAO Green Book, and all standards required for RTD’s external and federal Single Audit processes.

• Deliver integrated and flexible financial management capabilities, including general ledger, accounts payable/receivable, fixed assets, grants, and project accounting, aligned with RTD’s policies, controls, and reporting needs.

• Support end-to-end procurement and supply chain processes, including sourcing, requisitioning, purchasing, contract management, and vendor management, in compliance with public sector and transit procurement requirements.

• Provide inventory management capabilities that support accurate tracking, valuation, and control of materials and supplies, with integration to procurement and financial processes.

• Deliver integrated core HR capabilities that support the full employee lifecycle, including workforce planning, recruitment, onboarding, employee administration, performance management, learning and development, compensation, benefits administration, and employee offboarding. The solution must provide a centralized system of record for workforce data, enabling access to accurate, timely, and secure information through intuitive self-service capabilities and role-based workflows.

• Enable enterprise-wide budgeting, forecasting, and financial planning, supporting both operating and capital budgets with appropriate controls, approvals, and versioning.

• Support the full lifecycle management of capital projects, including planning, budgeting, funding/grant tracking, expenditure management, and financial closeout.

• Provide self-service capabilities for internal users and external stakeholders (e.g., vendors) to improve efficiency and reduce administrative effort.

• Deliver robust reporting and analytics, including real-time access to financial and operational data, standard and ad hoc reporting, and support for data-driven decision-making.

Request for Proposal (RFP) - RFP # 126DT039 Page 10

• Comply with federal record-retention rules under 2 CFR 200.334, including required extensions, and provide a federal-records flag to prevent early deletion.

• Natively produce all required public-sector financial reports, including the SEFA by Assistance Listing Number, National Transit Database reporting, ACFR-supporting data under GASB 34/44, and Colorado unclaimed-property reports.

Integration, Data, and Platform Objectives:

• Provide a unified platform that minimizes reliance on external tools and “shadow systems” by consolidating core financial, procurement, HR, and inventory functions.

• Support seamless integration with existing and future enterprise systems through modern frameworks (e.g., APIs, event-based integration), reducing dependency on point-to-point interfaces.

• Enable consistent data management and governance, including standardized data structures, improved data quality, and support for enterprise reporting and analytics.

• Support high transaction volumes and scalability to accommodate RTD’s operational complexity and future growth.

• (Optional) Where applicable, describe how a common data model and platform architecture can support both financial and human capital management domains, improving data consistency and reducing integration complexity.

Technical and SaaS Delivery Objectives:

• Deliver a secure, cloud-based (SaaS) solution with high availability, reliability, and performance, supported by defined service level agreements (SLAs).

• Provide regular system updates and enhancements with minimal disruption, ensuring the platform remains current with industry capabilities and regulatory requirements.

• Support configurable workflows, business rules, and role-based access controls, enabling RTD to enforce policies and streamline operations without extensive customization.

• Ensure compliance with industry-standard security and privacy requirements, including audit capabilities, data protection, and access controls.

• Provide extensibility and flexibility to support evolving business needs, including the ability to add functionality, integrate new systems, and adapt to organizational changes.

• (Optional) Describe how the platform supports enterprise-wide scalability across additional functional domains, including potential efficiencies, reduced integration overhead, and long-term cost benefits associated with a consolidated ERP platform.

Request for Proposal (RFP) - RFP # 126DT039 Page 11

Artificial Intelligence (AI) Objectives:

RTD recognizes the growing role of artificial intelligence (AI) and advanced automation in transforming enterprise systems. RTD is interested in understanding how proposers leverage AI and emerging technologies within their ERP platforms to enhance efficiency, improve decision-making, and enable more proactive operations. Proposers should describe current and planned AI-enabled capabilities, including but not limited to:

• Intelligent automation of business processes (e.g., invoice processing, expense validation, reconciliations, procurement workflows) to reduce manual effort and improve accuracy.

• AI-assisted analytics and insights, including predictive forecasting, anomaly detection, and trend analysis to support proactive decision-making.

• Embedded AI-driven recommendations, such as next-best actions, policy compliance guidance, and workflow optimization.

• Natural language capabilities, including conversational interfaces, search, and query tools that enable intuitive user interaction.

• AI agents or autonomous capabilities, where applicable, that can execute defined tasks, monitor conditions, and trigger actions within finance, procurement, and inventory processes under appropriate governance controls.

• Data-driven continuous improvement, leveraging machine learning to refine processes based on usage patterns and historical data.

• Responsible and secure use of AI, including the following principles:

o Proposers shall demonstrate that the AI system and its usage, deployment, and maintenance as it pertains to the services being proposed do not conflict with RTD’s AI Principles as listed below:

o Human-Centered Design: AI systems are developed and deployed with a human-centered approach that evaluates AI powered services for their impact on the public.

o Security & Safety: AI systems maintain confidentiality, integrity, and availability through safeguards that prevent unauthorized access and use. Implementation of AI systems is reliable and safe, and minimizes risks to individuals, society, and the environment.

o Privacy: Privacy is preserved in all AI systems by safeguarding personally identifiable information (PII) and sensitive data from unauthorized access, disclosure, and manipulation.

o Transparency: The purpose and use of AI systems is proactively communicated and disclosed to the public. An AI system, its data sources, operational model, and policies that govern its use are understandable and documented.

o Equity: AI systems support equitable outcomes for everyone. Bias in AI systems is effectively managed with the intention of reducing harm for anyone impacted by its use.

o Accountability: Roles and responsibilities govern the deployment and maintenance of AI systems, and human oversight ensures adherence to relevant laws and regulations o Effectiveness: AI systems are reliable, meet their objectives, and deliver precise and dependable outcomes for the utility and contexts in which they are deployed.

Request for Proposal (RFP) - RFP # 126DT039 Page 12 o Workforce Empowerment: Staff are empowered to use AI in their roles through education, training, and collaborations that promote participation and opportunity.

Proposers should also describe their AI product roadmap and strategy, including how capabilities will evolve over time and how customers can adopt these features without significant customization or disruption.

2.2 ERP SaaS Functional Scope

RTD expects the ERP SaaS solution to provide comprehensive, integrated functionality that aligns with its business requirements and supports a modern, efficient, and scalable operating environment. The solution must meet the detailed requirements outlined in the ERP Functional and Technical Requirements (Attachment E), while also supporting future growth and evolving business needs. RTD seeks to implement a best-practice, industry-aligned ERP platform that reduces reliance on manual processes and supplemental systems, improves data integrity, and enables real-time visibility across financial, procurement, and inventory functions.

2.2.1 ERP Functional and Technical Requirements

The ERP functional and technical requirements are published in the “Attachment E: Technical Submittal:

ERP Functional and Technical Requirements”. The published requirements, termed as “Baseline Requirements” represent the required and desired features and functions as available in the ERP software.

The “Baseline Requirements” shall guide RTD to ”trace” the implementation of these requirements. RTD encourages SaaS provider to be 100% accurate in its response (and not self-interpret differently from RTD’s view – vendor must seek clarifications upfront prior to submission) – this is critical, as RTD intends to fully bind the SaaS Provider’s response (as proposed/sold functionality) not only under the SaaS Contract; but this will also be incorporated into the subsequent software implementor (SI) procurement – the future SI will be expected to enforce the SaaS Provider’s product capabilities during the system implementation. The requirements, in Submittal F, are classified into the following functional areas:

a) General Finance/Chart of Accounts

b) Accounts Receivable

c) Accounts Payable

d) Budgeting & Financial Planning

e) Fixed Financial Assets

f) Projects

g) Grants and Projects Accounting

h) Purchasing

i) Inventory and Storage Locations

j) Inventory Transactions

k) Treasury Management

l) Recruiting and Talent Acquisition

m) Human Resources

n) Benefits Administration

o) Position Control

p) Time and Attendance

q) Leave Management

r) Payroll Processing

s) Performance Management

Request for Proposal (RFP) - RFP # 126DT039 Page 13

t) Workforce Development

u) Technical Requirements

2.2.2 ERP Functionality and Vision Narratives

The following sections describe RTD’s vision and expectations for key functional areas:

General Finance

RTD seeks to modernize its General Finance function through the implementation of an integrated, automated, and scalable ERP platform that enhances financial stewardship, transparency, and operational efficiency. The solution must support public sector accounting standards, including GASB 87 and 96 and FTA requirements, while enabling real-time financial insight and strong internal controls. The future-state environment must support a flexible and multidimensional chart of accounts (COA) capable of reporting across funds, programs, projects, grants, and organizational units. The future-state environment must support a flexible and multidimensional chart of accounts (COA) capable of reporting across funds, programs, projects, grants, and organizational units

• The solution must provide a multidimensional chart of accounts capable of supporting reporting across funds, programs, projects, grants, organizational units, and any additional defined segments. It must be able to extract financial data in the FTA National Transit Database Uniform System of Accounts format required under 49 U.S.C. § 5335. Governance of the chart of accounts must occur through a controlled change process that includes segment-level versioning, preservation of historical segment integrity through organizational changes, and complete audit traceability for all segment definitions and mapping modifications.

• The solution must distinguish account deactivation from deletion by preserving deactivated accounts and segment values with full historical transaction integrity. These values must remain available for prior-period reporting and audit inquiry while being blocked from new postings without affecting the ability to regenerate any historical trial balance. Deactivation must require position-based approval with the responsible role captured in the audit trail and must follow a controlled sequence ensuring all open transactions are posted, all sub-ledger reconciliations are cleared, and the relevant accounting period is in the appropriate control state before deactivation is finalized.

• The solution must maintain strong duplicate-prevention controls, including system validation against duplicate account numbers, duplicate segment values within a segment, and configurable controls that flag near-duplicate account descriptions for review before activation. It must also support periodic chart-of-accounts review workflows that identify redundant, dormant, or unused accounts for evaluation and potential deactivation, along with reporting capabilities for the position responsible for chart-of-accounts governance.

General ledger processes, including journal entries, allocations, intercompany transactions, encumbrance accounting, and must be standardized and automated, with embedded controls to ensure auditability and compliance.

• The solution must support journal entry preparation, review, approval, and posting; recurring journal entries with configurable templates; allocations across multiple methodologies; intercompany and interfund transactions.

Request for Proposal (RFP) - RFP # 126DT039 Page 14

• All general ledger processing must enforce position-based separation of duties such that no single position can complete an end-to-end financial transaction without independent review.

• The solution must enforce all approval authority—including journal entry approval, vendor master changes, payment authorization, write-offs, expense-policy exceptions, capital asset disposition, and contract execution—in strict alignment with RTD’s Delegation of Authority. Authority matrices must be configurable at the position level, with dollar thresholds, transaction-type scope, and approval-chain depth matching the Delegation of Authority as updated over time. The system must also maintain change control over the authority-matrix configuration itself, ensuring every modification routes through position-based approval, is captured in an immutable audit trail, and is traceable to the specific version of the Delegation of Authority in effect when the change was made.

Period-end Close Requirements

• The solution must support a quantified close calendar enforced through controlled period lock and re-open. Every period re-open must route through position-based approval and must be captured in an immutable audit trail.

• The solution must support sub-ledger to general ledger reconciliation as a native system function, with variance reporting, break aging, and exception routing to position-based reconciliation review.

RTD expects improved financial close efficiency, reduced manual reconciliations, and real-time visibility into financial position. The system must support integrated financial reporting and analytics, enabling both operational users and executive leadership to access timely and accurate financial data.

• The solution must natively generate all required financial reports, including basic financial statements under GASB 34 and 44 as amended by GASB 103, statistical section data, MD&A supporting schedules, and all Annual Comprehensive Financial Report content consistent with GFOA Certificate of Achievement standards.

• It must also support cost-efficiency reporting under C.R.S. § 32-9-119.7 - producing all required performance metrics, including cost per passenger trip, cost per vehicle revenue mile, cost per vehicle revenue hour, operating ratio, and farebox recovery ratio, calculated both by mode and in total. Operating cost data and derived metrics must reconcile to audited financial statements and NTD annual submissions, with reconciliation supported natively.

• Additionally, the solution must retain operating-cost category data and mode-level ridership data for at least ten years to support historical cost-efficiency ratio reporting consistent with State Auditor performance audit recommendations.

Integration with procurement, inventory, projects, and other enterprise systems is essential to ensure a single source of truth and consistent financial data across the organization. RTD is interested in capabilities that leverage advanced analytics and AI to enhance financial insights, improve anomaly detection, and support more proactive financial management.

• The solution must function as the system of record for all payroll-related accounting impacts originating from external Human Capital Management and workforce-management systems, with integration at a level of detail sufficient for federal grant compliance and audit defensibility.

• Payroll cost distribution must post to the general ledger at the employee, position, grant, Assistance Listing Number, and full chart-of-accounts segment level, with complete traceability from each journal entry back to the originating payroll detail; summarized postings are not acceptable.

Time-and-effort certification for personnel costs charged to federal awards must align with the

Request for Proposal (RFP) - RFP # 126DT039 Page 15 requirements defined in the Grants Management section, with the payroll integration providing all necessary employee, position, grant, and Assistance Listing Number detail to the certification workflow.

• The solution must also automate posting of payroll-related accruals, including compensated absences under GASB 101, OPEB under GASB 75, and pension accounting under GASB 68, each with full audit trail, position-based approval routing, and reconciliation to actuarial source records.

The integration must be fully auditable end-to-end, with every general ledger payroll posting reconcilable to its originating records in the upstream HCM and timekeeping systems, supported by native reconciliation tools, breakage tracking, and exception routing to position-based payroll accounting review.

Accounts Receivable

RTD seeks to establish a modern, automated Accounts Receivable (AR) function that improves financial control, transparency, and customer engagement. The proposed solution must support a fully integrated Accounts Receivable function operating as the system of record for revenue recognition, customer billing, cash application, and collections, across RTD's diverse revenue streams. The solution functionality should encompass:

• Revenue Stream Coverage: The solution must support fare revenue, intergovernmental agreements, lease revenue under GASB 87, federal and state grant reimbursement, advertising contracts, parking, charter services, and other transit-related revenue sources within an integrated AR function.

• Fare Revenue Accounting: The solution must support fare media liability tracking, breakage methodology consistent with GASB guidance, and automated reconciliation between external fare collection systems and the general ledger.

• Multi-Period Revenue Recognition: The solution must support contract-level revenue recognition schedules with configurable methodology, including daily-rate, milestone-based, and straight-line recognition. The recognition base must be configurable to support contract execution date or service start date as the rate base. Recognition must reconcile to total contract value at the contract level, with no residual or unallocated balance permitted at contract closeout. The solution must support audit-defensible reconciliation between recognition schedules and the underlying contract terms, between recognized revenue and cash receipts at the contract and customer level, and between sub-ledger and general ledger as a native system function.

• Contract and Document Repository: The solution must function as the authoritative repository for all AR source documents—including executed contracts, amendments, statements of work, intergovernmental agreements, leases, advertising and concession contracts, billing schedules, correspondence, and dispute records—with structured metadata linking each document to its customer, contract, recognition schedule, invoice, and chart-of-accounts segments. It must preserve the executed contract as the definitive basis for revenue recognition and directly link contract data to the recognition schedule so key terms are retrievable without external reconciliation, while also supporting native audit confirmations with contract attachments. The system must provide full version control for amended contracts, retaining prior versions and recording the responsible position for each change. It must support fast search and retrieval across metadata and document content for audit and Colorado Open Records Act requests and include redaction capabilities for confidential or proprietary information prior to public release.

Request for Proposal (RFP) - RFP # 126DT039 Page 16

• Deferred and Unearned Revenue: The solution must support deferred revenue, unearned revenue, contract liability, and accrued revenue accounting with automated reclassification at daily and monthly recognition triggers.

• Collections: The solution must support configurable collections workflows with position-based escalation authority, position-based write-off authority enforced through dollar-threshold matrices aligned to RTD's Delegation of Authority, and separation of duties between invoicing, cash application, adjustment, and write-off. The solution must produce aging analysis, collections performance reporting, and bad debt reserve calculations as native system outputs.

• Unclaimed Property and Escheatment: The solution must support unclaimed property tracking under the Colorado Revised Uniform Unclaimed Property Act, C.R.S. § 38-13-201 et seq., with a configurable dormancy period — required to be set to three years for Colorado compliance — automated dormancy aging, due diligence letter generation workflow, and Colorado Treasury escheat report extraction in the required format. Stale-dated check workflow must operate on the same dormancy logic.

The system must enable efficient invoicing, customer account management, and receivables processing through configurable, automated workflows. Support for multiple billing arrangements and payment methods is required, along with real-time application of receipts and balance tracking. Collections management must include standardized processes, escalation workflows, and audit tracking. RTD expects robust aging analysis and reporting capabilities to monitor receivables performance and financial exposure.

The AR function must be fully integrated with general ledger and financial reporting to ensure accurate and timely recognition of revenue and reconciliation of accounts. RTD is also interested in AI-enabled capabilities that support receivables forecasting, collections prioritization, and identification of potential revenue risks.

Accounts Payable

RTD envisions a highly automated and efficient Accounts Payable (AP) function that improves automated and streamlined review and processing, strengthens financial controls, and enhances vendor relationships.

The solution must support centralized vendor management, including vendor onboarding, validation, and maintenance of vendor master data.

• Vendor Master File Governance: The solution must enforce vendor master file controls including dual control on bank account additions and changes, a configurable cooling-off period before first payment following any banking change, SAM.gov suspended-and-debarred screening at vendor adds and at every payment cycle, and dormant vendor deactivation prior to period lock. All vendor master changes must be captured in an immutable audit trail with before-and-after values and the responsible position recorded at every step.

o The solution must enforce IRS TIN matching as a system-enforced precondition for vendor activation, executed at vendor onboarding and at every W-9 update, with periodic recertification on a configurable cadence consistent with IRS Publication 2108A guidance on TIN matching program use.

o The system must not permit vendor activation, payment, or 1099 processing for vendors that have not passed TIN matching.

o The TIN matching control must not be capable of being disabled, bypassed, or globally overridden at the system configuration level.

Request for Proposal (RFP) - RFP # 126DT039 Page 17

Invoice processing must be streamlined through electronic capture, automated workflow routing, and configurable approval hierarchies.

• Invoice Processing: The solution must support electronic invoice capture, configurable two-way and three-way matching against purchase orders and receipts, exception routing for matching discrepancies, and position-based approval routing tied to dollar-threshold authority matrices aligned to RTD's Delegation of Authority.

o The solution must support invoice processing for both purchase-order-backed and non-purchase-order transactions, with separate approval routing for each.

A robust matching engine must support 2-way and 3-way matching against purchase orders and receipts, identifying discrepancies early and reducing delays. Payment processing must support multiple disbursement methods, scheduling, and automated remittance.

• Payment Terms Enforcement: The solution must enforce contract-defined payment terms at the vendor and invoice level, calculate days payable outstanding at the vendor and portfolio level, and flag payment terms violations for position-based review. The solution must support payment scheduling consistent with documented payment terms policy and must support payment terms compliance reporting as a native system output.

o For construction contracts subject to C.R.S. § 24-91-101 et seq., the solution must support contract classification distinguishing construction contracts over the statutory threshold from non-construction contracts, with statutory payment terms applied at the contract level. Required functionality includes monthly partial payment scheduling, retainage calculation and accumulation at the configurable percentage permitted under C.R.S. § 24- 91-103, retainage release workflow tied to substantial completion and final acceptance events, and final settlement processing within the sixty-day window required under C.R.S.

§ 38-26-107.

o The solution must calculate and post interest accrual when statutory or contract-defined payment deadlines are missed, with interest calculated at the rate specified in the contract or the statutory default rate, whichever is higher. Prompt payment violations must be reported to position-based review with full traceability to the underlying contract, payment record, and statutory deadline.

• Payment Processing: The solution must support multiple disbursement methods including check, ACH, and wire transfer, with position-based authorization chains for high-value disbursements operating on configurable dollar-threshold matrices aligned to RTD's Delegation of Authority.

o The solution must integrate with bank positive pay, support ACH and wire return handling, route stale-dated check workflow to configurable dormancy logic consistent with the unclaimed property requirements stated in the Accounts Receivable section, and support void-and-reissue workflow with full audit trail.

o Separation of duties must be enforced between invoice approval, payment authorization, and payment release such that no single position can complete an end-to-end disbursement.

RTD expects real-time visibility into liabilities, invoice status, and payment activity, supported by dashboards and reporting.

Request for Proposal (RFP) - RFP # 126DT039 Page 18

• 1099 Tax Reporting: The solution must support 1099 reporting end-to-end, including W-9 capture at vendor onboarding, automated 1099 classification at the transaction and vendor level, Year-end 1099 generation, correction filing, and recipient delivery must be native system functions.

o The solution must support inbound import of Form 1099-K filings received from third-party payment processors, merchant banks, and payment settlement entities reporting transactions processed on RTD's behalf.

o Imported 1099-K data must be retained at the processor and tax-year level and must be available for reconciliation against RTD's recorded transaction data. Reconciliation between imported 1099-K filings and RTD's records must route to position-based manual review, with exceptions, variances, and unmatched amounts flagged for escalation and review by manager/position with tax-reporting authority.

A vendor self-service portal is highly desirable to improve transparency and reduce administrative effort.

• Vendor Self-Service Portal: The solution must support, through a native vendor self-service portal, AP-relevant vendor capabilities including electronic W-9 submission, banking information submission under dual control with cooling-off enforcement before first payment, invoice submission with structured data capture, real-time invoice and payment status visibility, payment remittance retrieval, year-end 1099 retrieval, and self-service updates to AP-relevant vendor profile fields routed through position-based vendor master review before posting.

o…