STATE 0000000596SL.docx

State of Missouri Office of Administration, Division of Purchasing

Request for Proposal (RFP) for Insurance Broker Services

PROPOSAL DUE NO LATER THAN: 10/20/2026 AT 2:00 PM CENTRAL TIME

Proposal response must be submitted electronically through MissouriBUYS, powered by MOVERS, at https://missouribuys.mo.gov.

E-mailed, mailed, courier, or hand-delivered proposal responses will not be accepted.

RFP CONTACT INFORMATION:

BUYER: Nicolle Backes

PHONE NO.: (573) 751-5341

EMAIL: nicolle.backes@oa.mo.gov See “RFP Questions” in Section 1 for appropriate communications during the procurement process.

DELIVER SUPPLIES/SERVICES FREE ON BOARD (FOB) DESTINATION TO THE FOLLOWING ADDRESS:

Office of Administration Division of General Services Risk Management Section 301 West High Street, Room 760 Jefferson City, MO 65101

ATTENTION:

1. After reviewing the Request for Proposal (RFP), the vendor must complete and return Exhibit A, Proposal Signature Page and all other necessary exhibits.

2. Due to lead times for obtaining the information needed to complete the various Business Compliance Exhibits herein as explained in the RFP’s Vendor Response Exhibits, vendors are encouraged to IMMEDIATELY begin securing these verifications.

3. The vendor must be registered in MissouriBUYS, powered by MOVERS in a “Prospective” or “Spend Authorized” registration status to submit a proposal. The vendor must achieve “Approved” registration status in MissouriBUYS (WebProcure/Proactis) and “Spend Authorized” registration status in MissouriBUYS, powered by MOVERS to be considered for a contract award. Reference Section 5.

RFP Organization:

RFP Vendor Response Exhibits (Return these exhibits with the proposal)

BUSINESS COMPLIANCE EXHIBITS

INTRODUCTION AND BACKGROUND INFORMATION SECTION

Introduction:

Purpose: This document constitutes a request for competitive, sealed proposals for the provision of insurance broker services as set forth herein for Office of Administration, Division of General Services, Risk Management Section (hereinafter referred to as “state agency”).

Minimum Experience Qualifications: There are minimum experience qualifications in the RFP (See Section 2.2, Minimum Experience Requirements in Section 2: Scope of Work).

Titles: Titles of paragraphs used herein are for the purpose of facilitating reference only and shall not be construed to infer a contractual construction of language.

Background and Historical Usage Information:

Risk Management’s mission is to protect the assets of the State of Missouri against losses that might adversely affect its operation and continuity of services through identifying and assessing hazards and lost exposures and by selecting the best techniques to avoid, control, assume or transfer risk.

A complete list of current policies and premiums are below:

Aircraft – Liability Premium $29,444.00; Hull Premium $195,365.00;

Auto Physical Damage – Deposit Premium $821,286.00, Minimum Annual Premium $739,157.00;

Property – $220,694.00;

Inland Marine – Premium $17,200.00;

Statewide Crime – $32,394.00;

Public Officials – Premium $9,800.00; and

State Fair – $55,840.00.

Current Contract Information:

A current contract exists for the products and/or services being obtained via this RFP. A copy of the contract can be viewed and printed from the Division of Purchasing Awarded Bid & Contract Document Search System located on the Internet at: https://purch.oa.mo.gov/bidding-contracts/awarded-bid-contract-document-search. In addition, all proposal and evaluation documentation leading to the award of that contract may also be viewed and printed from the Division of Purchasing’s Awarded Bid & Contract Document Search System. Please reference the Bid number RFPS30034902300156 or the contract number(s) CS230156001 when searching for these documents.

State Expenditures: The Missouri Accountability Portal (MAP) located on the Internet at: http://mapyourtaxes.mo.gov/MAP/Expenditures/ provides financial data related to the purchase of the services under the contract. Be sure to read the information provided in the site information and disclaimer links: https://mapyourtaxes.mo.gov/MAP/Help/MapExpendituresHelp.htm and https://mapyourtaxes.mo.gov/MAP/Help/MapExpendituresHelp.htm#disclaimer. Then search by the contract numbers shown above when searching for the financial information.

RFP Questions:

Buyer is Single Point of Contact for Solicitation: Vendors and their agents (including subcontractors, employees, consultants, or anyone else acting on their behalf) must direct all of their questions or comments regarding the RFP, the evaluation, etc., to the buyer indicated on the first page of this RFP. It is preferred that questions be emailed to the buyer.

Except as noted herein, vendors and their agents are instructed not to contact any other state employee regarding any of these matters during the solicitation and evaluation process. Inappropriate contacts are grounds for suspension and/or exclusion from specific procurements. Vendors can be sanctioned for unauthorized contact with any evaluator under 1 Code of State Regulation (CSR) 40-1.060(8)(G) and (H) available at http://www.sos.mo.gov/adrules/csr/csr.asp.

Vendor is Responsible for Asking Questions About the RFP: It is the vendor’s responsibility to ask questions, request changes or clarifications, or otherwise advise the Division of Purchasing if the vendor believes that any language, specifications, or requirements are: (1) ambiguous, (2) contradictory or arbitrary, (3) violate any state or federal law or regulation, (4) restrict or limit the requirements to a single source, or (5) restrict or limit the vendor’s ability to submit a proposal.

Vendor Question Deadline: Every attempt shall be made to ensure that the vendor receives an adequate and prompt response. However, in order to maintain a fair and equitable procurement process, all vendors will be advised, via the issuance of an amendment to the RFP, of any relevant or pertinent information related to the procurement. All questions and issues should be submitted no later than ten (10) calendar days prior to the proposal closing date and time of the proposals. If not received prior to ten (10) calendar days before the proposal closing date and time, the Division of Purchasing may not be able to fully research and consider the respective questions or issues.

State’s Response to Vendor Questions: Upon the Division of Purchasing’s consideration of questions and issues, if the Division of Purchasing determines that changes are necessary, the resulting changes will be included in a subsequently issued RFP amendment(s); absence of such response indicates that the questions and issues were considered but deemed unnecessary for an RFP amendment. All vendors will be advised of any change to the RFP’s language, specifications, or requirements by a formal amendment to the RFP. There will be no posted written records of the questions/communications (i.e., formal question/answer document).

RFP is State’s Only Official Position: The only official position of the State of Missouri shall be that which is contained in the RFP and any amendments thereto.

Amendments:

If the Division of Purchasing determines that changes to the RFP are necessary, the resulting changes will be included in a subsequently issued RFP amendment(s) prior to the proposal closing date and time.

Glossary of Terms and Acronyms:

Whenever the following terms and acronyms appear in the RFP document or any amendment thereto, the definitions or meanings described below shall apply.

General Glossary, Acronyms, and Abbreviations:

Agency and/or State Agency means the statutory unit of state government in the State of Missouri for which the equipment, supplies, and/or services are being purchased by the Division of Purchasing (Purchasing). The agency is also responsible for payment, unless otherwise specified herein.

Amendment means a written, official modification to a solicitation or contract.

Attachment applies to all documents which are included with an RFP to incorporate any informational data or requirements related to the performance requirements and/or specifications.

Buyer means the procurement staff member of Purchasing.

Code of State Regulation (CSR) contains the current administrative rules of executive agencies of Missouri government. The regulations are arranged by agency rather than by subject.

Contract means a legal and binding agreement between two or more competent parties, for a consideration for the procurement of equipment, supplies, and/or services.

Contractor means a supplier, offeror, person, or organization who is a successful vendor as a result of an RFP and who enters into a contract.

Exhibit applies to forms which are included with an RFP for the vendor to complete and submit with their proposal prior to the specified closing date and time.

May means that a certain feature, component, or action is permissible, but not required.

Must means that a certain feature, component, or action is a mandatory condition.

Party refers to either the State of Missouri or the contractor as an entity that may enter into a contract pursuant to the terms herein.

Pricing Page(s) applies to the form(s) on which the vendor must state the price(s) applicable for the equipment, supplies, and/or services required in the RFP. The pricing pages must be completed and submitted by the vendor with the proposal prior to the specified proposal closing date and time.

Proposal Closing Date and Time and similar expressions mean the exact deadline required by the RFP for the receipt of sealed proposals.

Purchase Order means the authorized document issued by the state agency to the contractor indicating descriptions, quantities, and agreed prices for products and/or services.

Reasonable, Necessary or Proper as used herein shall be interpreted solely by the State of Missouri.

Request for Proposal (RFP) means the solicitation document issued by Purchasing to potential vendors for the purchase of equipment, supplies, and/or services as described in the document. The definition includes the following sections: Introduction and Background Information; Scope of Work; Terms and Conditions (“terms and conditions” and “Terms and Conditions” are used interchangeably throughout the RFP); General Contractual Requirements; and Vendor Submission, Evaluation, and Award Information; and the RFP Vendor Response Exhibits, Attachments, and Amendments of the RFP.

RSMo (Revised Statutes of Missouri) refers to the body of laws enacted by the Legislature which govern the operations of all agencies of the State of Missouri. Chapter 34 of the statutes is the primary chapter governing the operations of Purchasing.

Shall has the same meaning as the word must.

Should means that a certain feature, component and/or action is desirable but not mandatory.

State collectively referring to the state government and/or the agencies thereof.

Supplier has the same meaning as the word, vendor.

Vendor means the supplier, offeror, person, or organization that responds to an RFP by submitting a proposal with prices to provide the equipment, supplies, and/or services as required in the RFP document.

0. Artificial Intelligence (AI) Definitions:

0. Artificial Intelligence (AI): A machine-based system or service that can generate outputs such as content, predictions, recommendations, or decisions (i.e. virtual or real environments) influencing the environments they interact with.

0. Generative AI: Artificial intelligence (AI) service that generates new content, such as text, images, audio, code, synthetic data, or other content based on learned patterns from large data sets, including but not limited to Large Language Models (LLMs).

0. Machine Learning (ML): A type of Artificial Intelligence (AI) that helps computers and machines learn like humans, to perform tasks, and to improve their performance and accuracy through experience and exposure to more data.

0. AI Training: The computational process by which an artificial intelligence or machine learning model ingests and processes data to develop, adjust, or optimize its internal parameters, weights, or algorithms for the purpose of enabling the model to perform specified tasks, generate outputs, or make predictions. Training includes initial pre-training on large datasets, fine-tuning on domain-specific data, and any reinforcement or feedback-based optimization processes applied to the model.

0. Automated Decision-Making (ADM) Technology: Any system, software, or algorithmic process—utilizing either artificial intelligence, machine learning, or advanced rule-based logic—that automates the evaluation of data to make a decision, issue a score, or recommend a specific course of action with minimal or no human intervention.

0. AI Model: A component of an information system that implements AI technology and uses computational, statistical, or machine-learning techniques to produce outputs from a given set of inputs.

0. AI Prompt: The input, instruction, or command that a user provides to an Artificial Intelligence (AI) model to elicit a specific AI generated output, which can be in the form of text, code, images, audio, automated task or function.

0. Agentic AI: Artificial Intelligence (AI) service that exhibits a level of autonomy, proactivity, and decision-making capability, often acting as agents that can pursue goals, initiate actions, and adapt based on context without direct human prompting.

0. Data Poisoning: A type of cyberattack in which an adversary intentionally compromises a training dataset used by an AI or Machine Learning (ML) model to influence or manipulate the operation of that model.

0. Drift: A phenomenon where an AI model's performance degrades over time due to changes in the data it is exposed to, causing its predictions or outputs to become less accurate or relevant.

0. Hallucination: When an Artificial Intelligence (AI) service generates inaccurate or nonsensical information.

0. Model Bias: When an Artificial Intelligence (AI) service makes systematic errors or shows favor to certain groups, leading to unfair or discriminatory outcomes.

0. Prompt Injection: An attack that forces a generative model to produce unexpected output by manipulating the structure, instructions, or information contained in its prompt.

0. Deterministic AI: A machine-based system that operates on predefined rules to produce consistent, predictable outputs for a given input, without the variability typically found in generative models.

0. Open-Weight AI: Artificial intelligence systems where the underlying source code, model weights, and training data are made publicly accessible for review, use, and community development.

0. Closed AI: Proprietary artificial intelligence systems where the technology, code, training data, and model weights remain private and are strictly controlled by the developer or vendor.

0. AI Token: A basic unit of text that Generative Artificial Intelligence (AI) uses to understand and generate language. A token may be an entire word or parts of a word. This is often how vendors will charge you "by the token" for use of their AI services.

0. AI Tuning: The process of adjusting and refining an existing artificial intelligence model to make it more accurate, efficient, or skilled at a specific job.

0. Algorithm: An algorithm is simply a specific set of step-by-step instructions that a computer follows to solve a problem or complete a task. Common algorithms include classification, regression, and clustering.

0. Artificial Neural Network: A type of artificial intelligence (AI) designed with a deep learning technique modeled after the structure of the human brain, requiring large datasets to perform complex calculations and generate outputs - enabling capabilities such as speech and image recognition.

0. Chatbot: Software application that is designed to imitate human conversation through text or voice commands. See also Generative Artificial Intelligence or GenAI.

0. Deep Learning: A subfield of machine learning that focuses on training neural networks with many layers, enabling learning of complex patterns.

0. Domain Language Model: A domain language model is a type of artificial intelligence trained to understand and write about a highly specific subject, rather than general, everyday topics. For example, the state might use one specifically trained on Missouri legal codes or public health regulations so it can accurately help staff search specialized documents or answer complex policy questions.

0. Embedded AI: The Artificial Intelligence (AI) capabilities are part of an existing application as an additional feature of that application

0. Fine-tuned Model: An Artificial Intelligence (AI) program that has already learned general information, but is then given extra training and is focused on a specific context or category of information so it becomes an expert in that area.

0. Input Transformation: A data processing technique where raw input is systematically altered, rephrased, or sanitized before being passed to a downstream system.

0. Large Language Model: A type of artificial intelligence model designed to process and generate human-like text by leveraging deep learning techniques, typically trained on vast amounts of data to understand and produce language-based outputs.

0. Local-Side Secret Scanning: Is a security process where data is analyzed for sensitive information (passwords, API keys, tokens) on the user’s device before it is ever transmitted over the network. (sometimes known as client-side secret scanning)

0. Model Context Protocol: An open-source framework designed to standardize how Artificial Intelligence (AI) systems, particularly Large Language Models (LLMs), integrate with and share data with external tools, systems, and data sources.

0. Multimodal AI Model: An AI model capable of processing and integrating multiple data types - such as text, images, and audio - simultaneously. By combining information from these different modalities, the model can generate more accurate and context-aware responses to user queries or tasks.

0. Natural Language Processing: A term for a machine’s ability to perform conversational tasks, such as recognizing what is said to it, understanding the intended meaning and responding intelligibly.

0. Neural Network: AI technology mimics human brain function to process data and create patterns for decision making.

0. Non-Deterministic Noise: Refers to variability in system behavior that cannot be predicted or reproduced reliably from the same inputs. In coding, it manifests as outputs or states that differ across runs despite identical code, configuration, and initial conditions.

0. Power User (AI): A Power user (AI) primary use goes beyond the limits of the standard AI tool and uses it for deep research, coding, or analyzing massive datasets.

0. Pretrained Model: An Artificial Intelligence (AI) program that has already been taught to understand basic language, images, or patterns by analyzing massive amounts of general information. A pretrained model can be used as a starting point to create a fine-tuned contextualized version of a model, thus applying transfer learning.

0. Private AI Model: An Artificial Intelligence (AI) system that trained on the state's internal data and is used in a single tenant environment available only to the state.

0. Prompt Engineering: Prompt engineering is the practice of carefully writing the instructions or questions (the "prompts") given to an artificial intelligence tool to get the best and most accurate response. Think of it like giving highly specific, step-by-step directions to a new assistant so they understand exactly what you need them to do without getting confused.

0. Public AI Model: An Artificial Intelligence (AI) system trained on publicly available data from across the internet—such as text articles, images, and videos—and used in a multi-tenant environment, where it is accessible to multiple organizations. This means that, as a customer, your data may not be completely private, and some of these models may use your input to improve their algorithms.

0. Red Teaming: An exercise where human testers (or automated adversarial agents) attempt to force an AI model to produce harmful, illegal, or unethical outputs that violate its own safety guardrails.

0. Retrieval Augmented Generation: An AI technique for improving the quality of Generative AI (GenAI) responses by including trusted sources of knowledge, outside of the original training set, to improve the accuracy of the GenAI’s output. Implementing Retrieval Augmented Generation (RAG) in Generative AI question answering system has benefits: 1) assurance that the service has access to the most current, reliable facts, 2) reduce hallucinations rates, and 3) provide source attribution to increase user trust in the output.

0. Standard User (AI): A Standard User that uses AI for "General Productivity." They primarily use the service to help with administrative tasks, drafting emails, and summarizing documents.

0. Sub-Agent: An Artificial Intelligence (AI) agent that receives a bounded task from an orchestrator and executes it within defined constraints. Sub-agents may themselves further delegate to other agents.

0. Vibe Coding: A software development practice that shifts your role from writing code line-by-line to guiding an Artificial Intelligence (AI) assistant through a conversational process. Instead of manual syntax and precision, you describe what you want in plain language, and agentic AI systems turn that intent into working code.

Accuracy of Background Information:

Although an attempt has been made to provide accurate and up-to-date information, the State of Missouri does not warrant or represent that the background information provided herein reflects all relationships or existing conditions related to this RFP.

****END OF INTRODUCTION AND BACKGROUND INFORMATION SECTION****

SCOPE OF WORK SECTION

General Requirements:

The contractor shall provide insurance broker services for the Office of Administration, Division of General Services, Risk Management Section (herein referred to as state agency) in accordance with the provisions and requirements stated herein and to the sole satisfaction of the state agency.

Contractor’s Obligation: Unless otherwise specified herein, the contractor shall furnish all material, labor, facilities, equipment, and supplies necessary to perform the services required herein.

Minimum Experience Requirements:

The contractor must meet or exceed the following minimum experience requirements at the time of proposal submission and for the duration of the contract:

Must have a minimum of three (3), but should have five (5) years of experience with public entity insurance brokerage services.

Team/Personnel Qualifications:

The contractor shall include the following team members/personnel to administer and perform the contract requirements:

Leadership Team: The personnel on the leadership team shall have the following experience:

Must have five (5), but should have seven (7) years of experience with real and personel property; and

Must have five (5), but should have seven (7) years of experience with risk management.

Account Personnel Team: The contractor shall have a minimum of three (3) personnel on the account personnel team. The personnel on the account personnel team shall have the following experience:

Must have three (3), but should have five (5) years of experience with real and personel property; and

Must have three (3), but should have five (5) years of experience with risk management.

The contractor shall understand and agree that the state agency reserves the right to request any of the contractor’s personnel assigned to provide the services be removed without just cause. The contractor shall understand and agree that the state agency will allow the contractor a reasonable time to find a replacement. The state agency shall approve all replacement personnel. The state agency reserves the right to require background checks and non-disclosure agreements (NDA) of selected contractor personnel, at the contractor’s expense.

Contact Person: The contractor shall designate a contact person who shall serve as the contractor’s contact and shall be the liaison between the contractor and the state agency by no later than five (5) business days after authorization to proceed.

Performance Requirements:

The contractor shall follow the schedule listed below for submitting bids for those policies listed in herein.

Within ten (10) calendar days after the state agency authorizes the contractor to proceed with services, the contractor shall submit insurance market requests to the state agency in order of the contractor’s preference.

The state agency will evaluate the bids based on cost and insuring approach and determine the bid for award of the coverage.

The state agency intends, but does not guarantee, to allow the contractor which wins the bid for a policy to continue to place that policy for at least three (3) years if cost, coverage, and service remain satisfactory to the State of Missouri. The state agency will work with the contractor to develop a schedule for renewing policies which are not subject to the bid process.

As required by the state agency, the contractor shall obtain bids from insurance markets not listed in paragraph 1.2.2. The state agency will work with the contractor to develop a schedule for renewing policies which are not subject to the bid process described above.

The contractor shall provide the following services:

Provide the state agency with unbiased information regarding the most advantageous insurance markets from the standpoint of cost, service, coverage, and security.

By no later than sixty (60) calendar days prior to each insurance policy renewal, the contractor shall prepare a market analysis and forecast by insurance line and provide such to the state agency. Such analysis must advise the state agency about pricing and service trends, availability of markets, and the longer-term direction of the market.

Assist the state agency in the analysis and design of the policy needed.

Market required insurance coverages.

Verify the accuracy and adequacy of all binders, policies, policy endorsements, invoices, claim runs, and other insurance-related documents prior to delivery.

Issue certificates of insurance.

Assist the state agency in the preparation of underwriting data, statements of values, specifications, loss summaries, and other data required by insurers.

Assist the state agency in preparing proofs of loss or claims reports, assist in obtaining loss settlements from insurers, and update five (5) year loss history each year.

Prepare and present an annual report to the state agency describing the contractor’s post year’s activities, future plans, goals for reducing costs, and income received on the account.

Required to attend an annual in person meeting when requested by the state agency. Unless otherwise specified by the state agency, the meetings shall be located in Jefferson City, Missouri.

Obtain answers to coverage questions from insurers.

Respond to questions from the state agency regarding claims, insurance coverages, and related issues.

Be available afterhours for urgent claim situations.

The contractor shall provide training to State of Missouri employees as requested by the state agency. Training topics, locations and method (in-person/virtual) shall be mutually agreed upon by the contractor and state agency.

The contractor shall provide driver safety training at each quarterly fleet meeting for between fifty (50) and one-hundered (100) people.

The contractor may perform a risk assessment survery if the contractor deems it necessary.

If requested by the state agency, the contract must conduct a risk assessment survery and provide documentation to the state agency.

0. Artificial Intelligence (AI) Requirements:

1. The contractor shall disclose in writing whether any service, or deliverable provided under this contract incorporates or relies upon Artificial Intelligence (AI), Machine Learning, or Automated Decision-Making Technologies. Such disclosure must occur prior to implementation or use in the performance of state business and must be approved by the state, in writing, before the contractor may proceed. The state reserves the right to request additional technical and risk documentation prior to granting approval. Failure to disclose such utilization shall constitute a material breach of contract.

0. Initial disclosure of the intent to use AI shall be provided by the contractor in their proposal response prior to contract execution.

0. If any AI, Machine Learning, or Automated Decision-Making Technology is introduced after initial disclosure prior to contract award, the contractor shall provide the state with a minimum of 20 business days' advance written notice to state designated contract manager, who will coordinate technical and risk review with the Information Technology Services Division, prior to utilizing any new, previously undisclosed, or third-party AI (including Generative AI), Machine Learning, or Automated Decision-Making Technologies in the performance of its obligations under this contract. The state retains sole discretion to approve or deny the contractor's use or integration of these technologies into the contract work. The contractor shall not proceed with the integration or use of these technologies unless and until written approval is granted by the state. Failure to respond by the state shall not be construed as approval.

1. If AI is used to develop or perform any services under the contract, the contractor must not transmit, process, analyze, store, train, fine-tune, or otherwise use any State Data in any Artificial Intelligence (AI) system—including Generative AI (GenAI), Large Language Models (LLMs), Machine Learning models, external analytics services, or Automated Decision-Making Technologies—without prior written authorization from the state.

1. Notwithstanding any authorization granted by the previous statement, the contractor shall not use State Data, or any derivative data, to train, fine-tune, or enhance any proprietary or third-party AI models.

1. The contractor shall ensure that its employees, agents, subcontractors, affiliates, and any third parties acting on its behalf strictly comply with all AI provisions set forth in this contract. The contractor shall be fully responsible and strictly liable for any acts, omissions, or violations of these requirements by such parties. The contractor shall agree to defend, indemnify, and hold harmless the state from any claims, damages, liabilities, or expenses (including legal fees) arising out of or related to the unauthorized or non-compliant use of AI technologies by the contractor or any party acting on its behalf.

1. The state reserves the right to deny the use of any AI system for any reason, or to rescind previous approval, at its sole discretion.

1. The state reserves the right to amend the contract, without additional cost, to incorporate updated AI terms, conditions, and security protocols. Furthermore, the state may cancel this Contract immediately, without penalty, if it determines in its sole discretion that the contractor’s use or integration of AI, Machine Learning, or Automated Decision Making Technologies, pose unacceptable risk(s) to state data, operations, or cybersecurity.

1. If AI is used to provide the services required herein, the contractor must comply with NIST AI Risk Management Framework 1.0, or newer versions, as required to satisfy an audit from a federal agency, state agency, or other regulatory body, including framework revisions adopted by these entities.

1. The contractor must provide the state the information identified in subparagraphs a, b, and c below for any Machine Learning, AI models, or Automated Decision-Making Technologies used to provide the services required in the contract. Additionally, the state reserves the right to request the information identified in subparagraphs d through l from the contractor after a risk assessment has been completed regarding the information provided in subparagraphs a, b, and c.

6. A detailed description of the Machine Learning, AI model, or Automated Decision-Making Technologies to be used (e.g., model name, provider);

6. The specific purpose and scope of its use;

6. A description of the data inputs to be used and the outputs to be generated;

6. A summary of the contractor’s risk assessment, including how the contractor plans to mitigates risks of inaccuracy, bias, and data privacy violations;

6. Process workflow;

6. Network diagrams;

6. Large Language Model (LLM) frameworks and related services;

6. LLM data sources during training and ongoing;

6. Information security procedures;

6. Governance related to the LLM and infrastructure;

6. Audit procedures; and

6. Any other additional documentation or technical specifications regarding the technology that the state may request to evaluate compliance with state policies or assess and mitigate risk.

1. The state reserves the right to audit the Machine Learning solution, AI solution, and Automated Decision-Making Technologies used within the service. This audit may evaluate data usage, compliance, and the ethics and accuracy of the system's calculations and outputs.

1. The contractor shall be solely and fully responsible for the factual accuracy, completeness, and quality of all deliverables, regardless of whether AI was used in the preparation of the deliverable.

1. The contractor must warrant that all content, data, analysis, and recommendations generated by an AI system have been independently reviewed, fact-checked, and verified for accuracy and appropriateness by contractor qualified human experts prior to its submission of the content, data, analysis, and recommendations to the state.

1. The contractor warrants that all deliverables, data, and outputs provided under this contract shall be accurate, complete, and compliant, regardless of whether AI or Generative AI technologies were used to produce them. The contractor acknowledges that third-party AI provider disclaimers shall not shield the contractor from liability. The contractor shall indemnify, defend, and hold harmless the state against any third-party claims, losses, or damages resulting from AI-generated errors, omissions, systemic defects, or "hallucinations," and shall bear all costs associated with remediating such errors.

1. Data Isolation: The contractor must ensure that any approved use of an AI system is conducted in a secure, isolated environment (e.g., an enterprise-level instance) where "opt-out" from model training is enabled and enforced, and where no State Data is retained, logged, or used by the AI provider for any purpose other than to fulfil contractor’s obligations under this contract.

Financial Records and Document Retention:

The contractor must maintain financial and accounting records and evidence pertaining to the contract in accordance with generally accepted accounting principles.

The contractor shall maintain all financial records, supporting documentation, and all other records pertinent to the contract for a period of five (5) years from the date of the final payment by the policy holding state agency or the completion of an audit, whichever is later, or as otherwise stated in the contract.

If any litigation, claim, negotiation, audit, investigation, or other action involving the records has been started before the expiration of the five (5) year period, the contractor shall retain the records until completion of such action and resolutions of all issues that arise from it or until the end of the regular five (5) year period, whichever is later.

If the state agency is subject to any litigation, claim, negotiation, audit, or other action involving the records, the state agency will notify the contractor in writing to extend the contractor’s retention period.

Electronic Funds Transfer, Invoicing, and Payment Requirements:

Electronic Funds Transfer (EFT): The State of Missouri will submit contract payments to the contractor at the remittance address listed in the contractor’s MissouriBUYS (WebProcure/Proactis) vendor registration. However, the contractor understands and agrees the state reserves the right to make contract payments to the contractor through EFT. Therefore, prior to any payments becoming due under the contract, the contractor must verify and update, if applicable, their vendor registration with their current remittance address and ACH-EFT payment information at https://MissouriBUYS.mo.gov.

Invoicing: The contractor shall submit invoices annually.

The contractor must submit invoices to each policy holding state agency as directed by the state agency. The contractor shall be paid the premium and commission or the premium and fee. If the contractor plans to charge a fee, the contractor shall clearly identify the amount of the premium and the amount of the fee within the bid(s) submitted to the state agency as required herein.

The contractor shall understand and agree that each state agency utilizing the contractor’s services shall be solely responsible for payment for only those services requested by the state agency.

The contractor shall use uniquely identifiable invoice numbers to distinguish an invoice from a previously submitted invoice and shall include on the invoice the remittance address listed in the contractor’s MissouriBUYS (WebProcure/Proactis) vendor registration.

Each contractor invoice must be on the contractor’s original descriptive business invoice form and must contain a unique invoice number and the remittance address included in the contractor’s MissouriBUYS (WebProcure/Proactis) vendor registration. The invoice number will be listed on the state’s EFT addendum record to enable the contractor to properly apply state payments to invoices. The contractor must comply with all other invoicing requirements stated in the RFP.

The statewide financial management system has been designed to capture certain receipt and payment information. For each purchase order received, an invoice must be submitted that references the purchase order number and should be itemized in accordance with items listed on the purchase order. Failure to comply with this requirement may delay processing of invoices for payment.

The contractor shall not invoice federal or state taxes unless otherwise required under law or regulation.

Other than the payments and reimbursements specified in the contract, no other payments or reimbursements shall be made to the contractor.

****END OF SCOPE OF WORK SECTION****

TERMS AND CONDITIONS SECTION

Applicable Laws and Regulations:

The contract shall be construed according to the laws of the State of Missouri. The contractor and the State of Missouri must follow all applicable federal, state, and local laws and regulations that apply to the performance of the contract. To the extent that a provision of the contract is contrary to the Constitution or laws of the State of Missouri or of the United States, the provisions shall be void and unenforceable. However, the balance of the contract shall remain in force between the parties unless terminated by consent of both the contractor and Purchasing.

Non-Discrimination and Affirmative Action:

The contractor must comply with applicable federal and state laws and regulations addressing discrimination in employment.

Americans with Disabilities Act:

In connection with the furnishing of equipment, supplies, and/or services under the contract, the contractor and all subcontractors shall comply with all applicable requirements and provisions of the Americans with Disabilities Act (ADA), ADA is 42 U.S.C. section 1201, et seq.

Anti-Discrimination Against Israel Act Contractor Requirements:

If the contractor meets the definition of a company as defined in section 34.600, RSMo, and has ten or more employees, the contractor shall not engage in a boycott of goods or services from the State of Israel; from companies doing business in or with Israel or authorized by, licensed by, or organized under the laws of the State of Israel; or from persons or entities doing business in the State of Israel as defined in section 34.600, RSMo.

If during the life of the contract, the contractor’s business status changes according to section 34.600, RSMo, then the contractor shall comply with, complete, and submit to the Division of Purchasing an updated Exhibit H, Anti-Discrimination Against Israel Act Certification.

Authorized Personnel/E-Verify:

For work performed under the contract, the contractor shall only employ personnel authorized to work in the United States in accordance with applicable federal and state laws, including section 285.530, RSMo and Executive Order 07-13. If the contractor employs personnel not authorized to work in the United States, the state shall have the right to cancel the contract immediately without penalty or recourse, and to pursue any other remedies permitted by the contract or by applicable state or federal law.

Prior to the performance of any services, a contractor meeting the definition of a business entity in section 285.525, RSMo, shall maintain enrollment and participation in the E-Verify Federal work authorization program with respect to the employees hired after enrollment in the program for work in connection with the contracted services included herein. If the contractor’s business status changes during the life of the contract to become a business entity as defined in section 285.525, RSMo, pertaining to section 285.530, RSMo, then the contractor shall enroll and participate in the E-Verify program.

The contractor shall only be required to provide the affidavits required in section 285.530.2, RSMo, to the state on an annual basis. https://purch.oa.mo.gov/vendor-information/affidavit-work-authorization-annual-renewal

The contractor shall ensure that its subcontractors comply with section 285.530, RSMo.

Business Registration:

The contractor must meet the requirements for conducting business in the State of Missouri, prior to performance of services under the contract, and for the duration of the contract. The contractor must be registered and maintain good standing with the Secretary of State of the State of Missouri and other regulatory agencies, as may be required by law or regulations. Such business requirements for formation and operation include, but are not limited to, those in Chapters 347-359, RSMo.

Data Breach:

If a data breach impacting the State of Missouri’s data requires the state to comply with section 407.1500, RSMo, the contractor shall assist the state by providing to the state any requested information held by the contractor concerning the breach and the state’s data stored in the software and services being provided as a result of the contract.

Elected or Appointed Officials and Employees:

Elected or appointed officials or employees of the State of Missouri or any political subdivision thereof, serving in an executive or administrative capacity, must comply with sections 105.452 and 105.454, RSMo, regarding conflict of interest.

Indemnification:

Unless expressly provided by Missouri law to the contrary, pursuant to the Constitution of the State of Missouri, Article III, section 39, subsections 2 and 5, the state shall not indemnify, hold harmless, or agree in advance to defend, any person or entity.

Legal Proceedings:

For any legal action or other proceedings, per section 27.050 and section 27.060, RSMo, the Missouri Attorney General is given the authority to represent the State of Missouri’s interests. The venue for any legal proceeding relating to or arising out of the RFP or resulting contract shall be in circuit court for Cole County, Missouri or the United States District Court for the Western District of Missouri, Central Division.

The contractor and the state agree that if a dispute concerning the contract arises that the parties shall make an attempt to resolve the dispute through informal methods before initiating litigation.

The State of Missouri does not agree to any arbitration. The State of Missouri does not voluntarily agree to the payment of attorneys’ fees. The state may, but is not required to, mediate any dispute arising under the contract, and any vendor provisions requiring mediation or dispute resolution processes shall not be binding upon the state.

Negotiations:

The State of Missouri does not negotiate contracts after award. Any competitive negotiation, if conducted by the state, must have occurred prior to contract award in accordance with Chapter 34, RSMo, 1 CSR 40-1.050 and as stated in this RFP.

Invoicing and Payment:

Invoicing and payments must follow section 33.120, section 34.055, and section 8.960, RSMo. All payments shall be made in arrears, unless the requirements of 1 CSR 10-3.010 allow for advance payment of goods or services.

Non-Appropriation of Funds:

The contractor understands and agrees that funds required to fund the contract must be appropriated by the General Assembly of the State of Missouri for each fiscal year included within the contract period. The contract shall not be binding upon the state for any period in which funds have not been appropriated, have been withheld, or have been restricted, and the state shall not be liable for any costs associated with termination caused by lack of appropriations or authority to spend. This includes, but is not limited to, the provisions of the Mo. Const. Article IV, sections 23, 27, 28 and in sections 33.030 and 33.065, RSMo and 1 CSR 10-3.010 (1)(B).

To the extent that federal funding is used for the contract, the contract shall not be binding upon the state for any period in which such funding is reduced, terminated, withheld, restricted, or is frozen or paused.

Work Outside the United States:

Unless work outside the United States is prohibited by the RFP, any work performed outside of the United States for the contract must comply with Executive Order 04-09.

Open Records:

Pursuant to section 610.021, RSMo, the contract and related documents are available for public review. Pursuant to section 610.021, RSMo, proposals and related documents shall not be available for public review until after a contract is executed or all proposals are rejected.

Protests:

Any proposal award protest must be received within ten (10) state business days after the date of award in accordance with the requirements of 1 CSR 40-1.050.

Record Access:

The contractor shall grant the State Auditor access to records/items as stated in section 29.235, RSMo.

State Preferences:

If the contractor’s awarded proposal included state preferences, the contractor must comply with the rules applicable to those preferences including:

Section 34.070 and section 34.073 RSMo for Missouri business preferences.

Taxes:

The contractor must timely file and pay all Missouri sales, withholding, corporate and any other required Missouri tax returns and taxes, including interest and additions to tax. No contract shall be awarded to a vendor that does not meet the conditions of section 34.040.7, RSMo.

*****END OF TERMS AND CONDITIONS SECTION*****

GENERAL Contractual REQUIREMENTS SECTION

Contract Definition:

A binding contract shall consist of the following documents:

The most current version of the RFP (including all Exhibits and Attachments included in the RFP) as amended by: RFP amendment(s) issued prior to bid closing, Best and Final Offer (BAFO) requests, and contract amendment(s);

The most current version of the contractor’s proposal, including the contractor’s BAFO responses, state-requested clarification responses, and contract amendment responses, and the contractor’s documentation, including, but not limited to, the cloud service providers’ cloud services end user terms); and

The Division of Purchasing’s acceptance of the proposal by “notice of award”.

The contract expresses the complete agreement of the parties and performance shall be governed solely by the specifications and requirements contained therein.

The vendor’s response, whether responding to a mandatory requirement or a desired attribute, will be binding upon the contractor in the event the vendor’s response is accepted by the state and a contract is awarded.

The contractor further agrees that the language of the RFP shall govern in the event of a conflict with the contractor’s proposal.

The contractor shall agree to furnish all awarded services specified in the contract, at the prices quoted therein.

A notice of award issued by the State of Missouri does not constitute an authorization for shipment of equipment or supplies or a directive to proceed with services. Before providing services for the State of Missouri, the contractor must receive a properly authorized purchase order or other form of written authorization to proceed from the state, such as an order form, (in addition to the Division of Purchasing’s “notice of award”).

The state agency may sign or “click-through” and accept agreements if required by the…