T1087 Bid Amendment 12 03.23.2021~2.docx

PHILIP D. MURPHY

Governor State of New Jersey

DEPARTMENT OF THE TREASURY

DIVISION OF PURCHASE AND PROPERTY

PROCUREMENT BUREAU

33 WEST STATE STREET

P. O. BOX 230

TRENTON, NEW JERSEY 08625-0230

ELIZABETH MAHER MUOIO

State Treasurer

SHEILA Y. OLIVER

Lt. Governor

MAURICE A. GRIFFIN

Acting Director https://www.njstart.gov

March 23, 2020 To: All Interested Vendors {Bidders}

Re: Bid Solicitation # 20DPP00468 T1087 – Supplemental Nutrition Assistance Program / Electronic Benefits Transfer

Revised Quote submission Due Date: April 16, 2021

NEW REVISED QUOTE SUBMISSION DUE DATE: MAY 24, 2021 (2:00PM EST)

Bid Amendment #12

The following constitutes Bid Amendment #12 to the above referenced Bid Solicitation:

· Answers to the remaining questions submitted by Vendors {Bidders} during the electronic Question and Answer (Q&A) period;

· Revised Bid Solicitation uploaded as T1087 Revised Bid Solicitation 03/23/2021;

· Revised State Supplied Price Sheet uploaded as T1087 Revised Price Sheet 03/23/2021. It has been restructured in its entirety using a Cost per Case per Month (CPCM) model. Additional prices lines have also been added. T1087 Revised Price Sheet 03/23/2021 MUST BE SUBMITTED WITH QUOTE SUBMISSION. Please see Section 4.4.5.2 for additional details;

· Revised Attachments 1 (one), three (3), four (4), and 6 (six); Additional Attachments 10, 11, 12, 13, 14, 15, 16, and 17. Please note that any and all values contained within the attachments are historical and or approximations, and do not represent or guarantee a volume of work to the awarded Vendor {Contractor}.

· Attachment 7 has been removed in its entirety. Vendors {Bidders} should not reference this document for information, deliverables, or requirements in any way related to this Bid Solicitation and Quote submission;

· T1087 SONJ Third Party Security Questionnaire.

The Bid Solicitation has been modified due to the COVID-19 virus outbreak and the declaration by the World Health Organization of a global pandemic and Governor Murphy’s Executive Orders declaring a Public Health Emergency and State of Emergency.

It is the sole responsibility of the Vendor {Bidder} to be knowledgeable of all of the additions, deletions, clarifications, and modifications to the Bid Solicitation and/or the New Jersey Standard Terms and Conditions relative to this Bid Solicitation as set forth in all Bid Amendments.

All other instructions, terms, and conditions of the Bid Solicitation shall remain the same.

Bid Solicitation # 20DPP00468 T1087 – Supplemental Nutrition Assistance Program / Electronic Benefits Transfer

Answers to Questions

Where applicable, each question references the appropriate Bid Solicitation section.

Section Reference Question (Bolded) and Answer

1) The Bid Solicitation specifies a number of draft documents that the Vendor {Bidder} is required to submit with their Technical Quote. Does the State want these documents to be included within this section or as separate documents (loaded as attachments in NJSTART)?

The Vendor {Bidder} may submit draft plans as required by the Bid Solicitation Section 4.4 Quote Content in Section 2 Technical Quote.

2) If the latter, then what other documents should be included in this section?

The Vendor {Bidder} should review Bid Solicitation Section 4 and submit all required documents. Any additional documents that the Vendor {Bidder} may wish to provide with its Quote to demonstrate its technical ability to State may be included in Section 4 of its Quote.

The State does not accept the proposed modification.

The Offer and Acceptance Page is signed by the State as the final step in the award process, commencing the Blanket P.O. effective date.

No, the State is unable to provide or share an anticipated date of award or announcement of an award at this time. The award date is dependent upon several factors, including the number and length of proposals received and the evaluation of those proposals.

The updated link is shown below:

https://www.state.nj.us/treasury/purchase/ethics.shtml

Please see the T1087 Revised Bid Solicitation 03/23/2021, Section 4.4.1.1.3.

The set-aside goal for this Bid Solicitation is Small Business Enterprise (SBE) and Disabled Veteran-Owned Business (DVOB) is for Subcontracting only. The State requests that any Vendor {Bidder} that intends to subcontract make a good faith effort to utilize SBE and/or DVOB companies.

Please see the cover page of T1087 Revised Bid Solicitation 03/23/2021, for this designation, and Section 4.4.1.6 for additional details on subcontracting.

Please see answer to question #45.

Questions: The Bid Solicitation asks for Vendors {Bidders} to describe their technical approach and plans to successfully complete the Bid Solicitation.

A. Is it the intent that Section 3.0 Scope of Work items be added under appropriate sub-sections of Sections 4.4.3, 4.4.3.1, and 4.4.3.2, with detailed descriptions of how the Vendor will deliver these tasks? Or does the State want an overview only of how the Vendor will manage the Blanket P.O.?

Yes, the Vendor’s {Bidder’s} submission for Bid Solicitation Section 4.4.3 and subsections should be directly related and or in response to Bid Solicitation Section 3.0 Scope of Work. The Vendor {Bidder} should include the level of detail it determines necessary to assist the evaluation committee in its review of the Vendor’s {Bidder’s} Quote. Mere reiterations of Bid Solicitation tasks and subtasks are strongly discouraged, as they do not provide insight into the Vendor’s {Bidder’s} approach to complete the Blanket P.O.

B. Does the State have a minimum set of sections from the Scope of Work that require a detailed response?

No, the State does not have a minimum set of Sections from Bid Solicitation Section 3.0 Scope of Work that require a detailed response. As per Bid Solicitation Section 4.4.3, the Vendor {Bidder} shall describe its approach and plans for accomplishing the work outlined Bid Solicitation Section 3.0. The Vendor {Bidder} must set forth its understanding of the requirements of this Bid Solicitation and its approach to successfully complete the Blanket P.O. with the level of detail it determines necessary to assist the evaluation committee in its review of the Vendor’s {Bidder’s} Quote.

Mere reiterations of Bid Solicitation tasks and subtasks are strongly discouraged, as they do not provide insight into the Vendor’s {Bidder’s} approach to complete the Blanket P.O.

Please see the answer to question #47.

Please see the answer to question #40.

For a Vendor’s {Bidder’s} Quote to be considered responsive and eligible for Blanket P.O. award, it must submit all plans required as per Bid Solicitation 4.4.3. Draft plans submitted with the Vendor’s {Bidder’s} Quote are not considered final plans. T1087 Revised Bid Solicitation 03/23/2021, Section 4.4.3.3 has been revised.

Proprietary and confidential information may be exempt from public disclosure as per the Open Public Records Act (OPRA) and/or the common law. If the Vendor {Bidder} believes any portion of its submitted draft plans, or Quote, to be confidential, trade secret, or proprietary, it may identify and request this information to be redacted by the State.

Please see Bid Solicitation Section 1.4.4 for additional details regarding confidential information and Quote redactions.

Draft plans will be scored as part of the entire technical Quote in accordance with Bid Solicitation Section 6.7.1.The State is unable to provide the specific weights of the criteria listed in Bid Solicitation Section 6.7.1 until after the evaluation is completed and the award has been determined.

The Project Management Plan should include specific and detailed information regarding goals and specific tasks pursuant to T1087 Revised Bid Solicitation 03/23/2021, Section 3.11.1. The Blanket P.O. Schedule as per T1087 Revised Bid Solicitation Section 4.4.3.3.1 is no longer required.

Please see the T1087 Revised Bid Solicitation 03/23/2021, Section 4.4.3.3.1.

“Transaction processing”. Is this a reconciliation plan, administrative user document, retailer manual or something different?

This requirement has been removed from T1087 Revised Bid Solicitation 03/23/2021, Section 4.4.3.3.5.

Please see the requirements for this plan as per T1087 Revised Bid Solicitation 03/23/2021.

The Work Plan is a component of the Project Management Plan. Reference to the Work Plan in T1087 Revised Bid Solicitation Section 4.4.3.3.5 B has been removed. All required components of the draft Work Plan as described in T1087 Revised Bid Solicitation 03/23/2021, Section 3.11.1 shall be submitted with the Vendor’s {Bidder’s} Quote as per Bid Solicitation Section 4.4.3.3.5.

Yes, the draft Work Plan shall consist of the 18 listed tasks and or draft plans and is now described in full in T1087 Revised Bid Solicitation 03/23/2021X, Section 3.11.1. All required components of the draft Work Plan as described in T1087 Revised Bid Solicitation 03/23/2021, Section 3.11.1 shall be submitted with the Vendor’s {Bidder’s} Quote as per Bid Solicitation Section 4.4.3.3.5.

7. Provision of access to Cash Assistance

8. business practices in meeting requirements for TPPs

10. Emergency stand-in processing

11. Case/Recipient setup and benefit authorization

12. Determining and maintaining account statuses

13. Access to Account information

15. Dispute processing

16. Data analysis tool

The Vendor {Bidder} should include its solution for accomplishing the above referenced tasks or deliverables as part of the draft Work Plan as per T1087 Revised Bid Solicitation 03/23/2021, Section 3.11.1. All required components of the draft Work Plan as described in T1087 Revised Bid Solicitation 03/23/2021, Section 3.11.1 shall be submitted with the Vendor’s {Bidder’s} Quote as per Bid Solicitation Section 4.4.3.3.5.

The financial agent is a federally insured financial institution capable of accepting credits and/or debits and transmitting them in ACH format. The Vendor {Bidder} is responsible for providing a certificate evidencing that the Vendor’s {Bidder’s} chosen financial institution is fully, federally insured. If the certificate is not provided with the Quote, the intended awardee shall have ten (10) business days from the date of issuance of the letter of Intent to Award to provide the certificate.

Examples of what the State considers labor categories could be, but are not limited to, IT, operations, or human resources.

The initial Blanket P.O. term of five (5) years includes the implementation period as well as all deliverables required in the Bid Solicitation.

Section 5.8 (A) of the Bid Solicitation has been modified. Please see the T1087 Revised Bid Solicitation 03/23/2021.

Please see the answer to question #60.

The State does not accept this proposed modification. Pursuant to relevant law, if the Vendor {Contractor} creates custom software for the State under contract as a work-for-hire, then the State owns the software that it paid the Vendor {Contractor} to create. The source of funds is not relevant to this analysis. Also, if the State goes to the expense of paying for custom software, it needs to have the benefit of that software beyond the term of this Blanket P.O.

“ All financial, statistical, personnel, customer and/or technical data supplied by the State to the Vendor {Contractor} are confidential (State Confidential Information). The Vendor {Contractor} must secure all data from manipulation, sabotage, theft or breach of confidentiality. The Vendor {Contractor} is prohibited from releasing any financial, statistical, personnel, customer and/or technical data supplied by the State that is deemed confidential. Any use (except in connection with providing the Services), sale, or offering of this data in any form by the Vendor {Contractor}, or any individual or entity in the Vendor’s {Contractor’s} charge or employ, will be considered a violation of this Blanket P.O. and may result in Blanket P.O. termination and the Vendor’s {Contractor’s} suspension or debarment from State contracting. In addition, such conduct may be reported to the State Attorney General for possible criminal prosecution. Subject to Section (Liability Cap) The Vendor {Contractor} shall be liable for any direct damages incurred by the State} associated with any breach of confidentiality which results from Vendor’s breach of its obligations under Section 5.9.3 (Data Security Standards) of the Agreement. The Vendor {Contractor} may be required to view yearly security awareness and confidentiality training modules provided by the State. Where required, it shall be the Vendor’s {Contractor’s} responsibility to ensure that any new staff agree to confidentiality provisions at least as protective as those in this Agreement and complete the security awareness and confidentiality training modules within one (1) month of the employees’ start date. Vendor shall perform (at the time of hire) a background check, as described herein, for each Vendor employee that is performing any Services under the Agreement Currently, the background check in the United States of America consists of, at a minimum, verification of the highest level of education completed, verification of employment (as allowed by Law), social security number trace and validation, and a check of U.S. Government Specially Designated National (OFAC) and other export denial lists. In addition, to the extent permitted by law, the background check may include a 9-panel drug test and criminal record search. Vendor complies with all applicable laws related to the background check, including required notices and applicable consents. Vendor will not assign any employee to perform Services for the State if his/her background check findings do not meet the standards established by Vendor. Vendor has formal disciplinary procedures in place to address policy violations. A terminated employee’s access to Vendor facilities and State Confidential Information is suspended immediately upon termination”

The State does not accept this proposed modification. Please see T1087 Revised Bid Solicitation Section 5.17.

The State does not accept this proposed modification. Vendor {Contractor} should identify which information it considers to be its own intellectual property (IP). If the Vendor {Contractor} fails to do so, but later contends that such IP would “reasonably be considered” to be confidential, and therefore should not have been disclosed, the situation is unmanageable and impractical. The parties should have some certainty as to which information is Vendor {Contractor} IP. Please refer to Section 5.9 Security and Confidentiality.

The State does not accept the proposed modification. The State is unaware of the specific features of the security policies of any particular EBT Processor. The Vendor {Contractor} should submit samples of such security policies as attachments to its Quote.

The language previously contained within Section 5.9.2 of the Bid Solicitation has been modified and moved to Bid Solicitation Section 3.37.6 of T1087 Revised Bid Solicitation 03/23/2021.

The language previously contained within Section 5.9.2 of the Bid Solicitation has been modified and moved to Bid Solicitation Section 3.37.6 of T1087 Revised Bid Solicitation 03/23/2021.

Please see the answer to question #66.

The Security language in Section 5.9 has been modified and moved to Section 3.37.6 of the T1087 Revised Bid Solicitation 03/23/2021.

Please see the answer to question #66 and 68.

Data Breach: Unauthorized Release Notification: The Contractor must comply with all applicable State and Federal laws applicable to Contractor as a provider of the Services that require the notification of individuals in the event of unauthorized release of personally identifiable information or other event requiring notification. In the event of a breach of any of the Contractor’s security obligations resulting in unauthorized access to or disclosure of Confidential Information (“Notification Event”), the Contractor shall assume responsibility for informing the State Contract Manager within 24 hours of its determination of any such unauthorized access or disclosure. Further , Contractor shall defend the State and its, employees, , in their individual capacities or otherwise (collectively, “State Indemnitees”), from and against any and all Claims (as defined in this Section) asserted by a third party against a State Indemnitee, and shall indemnify and hold harmless State Indemnitees from and against any damages, costs, and expenses of such third party awarded against a State Indemnitee by a final court judgment or an agreement settling such Claims in accordance with this Section. As used in this Section, the term “Claim” means any action, litigation, or claim by a third party alleging or based on a Notification Event to the extent the Notification event is a result of Contractor’s breach of its security obligations in this Section 5.9.3. . All communications must be coordinated with the State of New Jersey.?

The State does not accept the proposed modifications for the following reasons: First, the Contractor {Vendor} must comply with all applicable laws regarding notice, which is what the current language says. The State must also comply with all applicable laws, but it is not necessary to recite this in the Bid Solicitation. The State prefers to leave the definition of Notification Event in the broader form found in the original language because this area of law is rapidly changing, and it would be risky to define the term too closely. Second, the indemnity provision as written is approved by the New Jersey Department of Law and Public Safety and is not susceptible to alteration. The existing language is simpler and covers essentially the same subject matter as the proposed change.

Please also note language previously contained within Section 5.9.2 of the Bid Solicitation has been modified and moved to Section 3.37.6 of T1087 Revised Bid Solicitation 03/23/2021.

The State does not accept the proposed modifications. While it may not be likely that Tax Return Data will be accessed by the Vendor {Contractor}, in the event that such data does occur in the system, the protections afforded by law should remain part of the terms of the Blanket P.O.

Please also note language previously contained within Section 5.9.2 of the Bid Solicitation has been modified and moved to Section 3.37.6 of T1087 Revised Bid Solicitation 03/23/2021.

The State does not accept the proposed modification. While 45 days of time to cure may be reasonable with regard to some instances of non-compliance, it may constitute an unreasonable delay in other instances, and would unfairly prejudice the State. If the Vendor is making adequate process towards remedying the material non-compliance the State will work with the Vendor.

The State does not accept the proposed modification. The State is entitled to performance of the Blanket P.O. scope at the Blanket P.O. price. If Vendor {Contractor} breaches the Blanket P.O., and the State is forced to hire another entity to perform the Blanket P.O. scope, the State’s damages, which are the standard damages in a breach of contract matter, are the difference in price between the two (2) Vendors {Contractors}.

A. Retailers using EBT-only equipment can only receive equipment after correctly completing an EBT-only agreement. Industry standard for EBT system access is within two weeks of receiving a completed EBT-only contract rather than within two weeks of FNS authorization. Please amend the requirement to reflect the industry standard.

Correct, newly authorized Retailers must have access to the EBT system within two (2) weeks of the Vendor’s {Contractor’s} receipt of a signed agreement from the retailer.

B. For retailers that use a TPP, it is the TPP or credit/debit provider that determines the amount of time needed for the retailer to access the system. Since the selection of a TPP or credit/debit card provider is a business decision made by the retailer, EBT providers cannot be held responsible for business relationships that are outside of our control. Please revise or delete the requirement to reflect activities that are beyond any EBT provider’s control.

This requirement is not applicable to the awarded Vendor {Contractor} if they will be using a Third Party Provider (TPP). Bid Solicitation Section 5.14 has been modified. Please see the T1087 Revised Bid Solicitation 03/23/2021.

The State does not accept the proposed modification. The Liquidated Damages amounts are designed to be reasonable and not punitive in conformance with the current New Jersey Law. Also, the Limitation of Liability in Section 4.1.1, as modified by Bid Solicitation Section 5.17.1 of T1087 Revised Bid Solicitation 03/23/2021 will apply to limit the amount of Liquidated Damages that can be assessed.

There have been no liquidated damages assessed to the current SNAP EBT Vendor {Contractor}.

There has not been any non-performance issues, including formal filings or notifications, with the current Vendor {Contractor} during the current Blanket P.O. period.

Liquidated Damages will not be assessed when the abandon it is 3% or lower. Liquidated Damages will only be assessed when the abandon rate exceeds 3%. Please see Section 5.14 of T1087 Revised Bid Solicitation 03/23/2021 for additional details regarding Liquidated Damages.

Bid Solicitation Section 5.14 has been modified. Please see T1087 Revised Bid Solicitation 03/23/2021.

The State does not accept the proposed modification. The Liquidated Damages provision is intended to compensate the State for specific contract breaches listed in Section 5.14 of the Bid Solicitation. Other breaches of the agreement may not trigger liquidated damages but may cause the State to suffer damages. The Election of Remedies clause found in the third paragraph of Bid Solicitation Section 5.14 is meant to indicate that, should the State elect to seek liquidated damages for a specific incident or occurrence, that no other damages would be assessed for that incident or occurrence.

A base point is equal to one (1) percentage point. Bid Solicitation Section 5.14 has been modified. Please see the T1087 Revised Bid Solicitation 03/23/2021.

Any Liquidated Damages should cease as soon as the condition giving rise to such damages is corrected, and all appropriate parties are notified. However, the Director has discretion to assess liquidated damages, and if the Vendor’s {Contractor’s} communications are all with the SCM, then the SCM must communicate with the Director to inform him/her of the fact that the conditions have been corrected and that the assessment of liquidated damages should stop. Section 5.14.2 Paragraph C has been revised to reflect this need.

Please see the T1087 Revised Bid Solicitation 03/23/2021.

Bid Solicitation Section 5.14.4 has been modified. Please see the T1087 Revised Bid Solicitation 03/23/2021.

The State does not accept this proposed modification.

Please see T1087 Revised Bid Solicitation, Section 5.17.

“The insurance shall be in the amount of not less than $5,000,000 per occurrence and in the aggregate”?

The State does not accept the proposed modification. Omission of much of paragraph A is unacceptable. The State reserves the right to request copies of the Vendor’s {Contractor’s} insurance policy, to determine if the coverage meets industry standards, and is not an unusual manuscript policy that would provide insufficient coverage. Also, The instructions with regard to claims made policies are necessary to avoid a gap in insurance coverage.

The State does not accept the proposed modification. To the extent the Vendor {Contractor} is providing a pre-existing solution, or a customized version of a pre-existing solution, the warranties applicable to COTS and Customized Software are required.

The State does not accept the proposed modification. The remainder of the sentence states: “or if Vendor {Contractor} cannot substantially correct a breach in a commercially reasonable manner, the State may end the relevant Services and recover the fees paid to Vendor {Contractor} for the deficient Services.” This implies that the Vendor {Contractor} should attempt to re-perform the relevant services, but if it is unable to do so, the State may recover fees. The proposed modification is not necessary.

Bid Solicitation Section 9.7.3 has been modified. Please see Section 5.17.6 of T1087 Revised Bid Solicitation 03/23/2021.

Per Bid Solicitation Section 9.0, Subsection 6.2 Tax Charges, “The State of New Jersey is exempt from State sales or use taxes and Federal excise taxes. Therefore, price quotations must not include such taxes. The State's Federal Excise Tax Exemption number is 22-75-0050K”.

DPP cannot provide any guidance or advice regarding the tax status of transactions occurring under the terms of this contract, other than those already included in the solicitation (see, e.g., Subsections 2.1 and 6.2 of Bid Solicitation Section 9.0). The New Jersey Division of Taxation is the agency statutorily authorized to administer New Jersey State Sales and Use tax laws. Bidders should consult with the tax advisor(s) of their choice as to their specific circumstances.

The State cannot provide legal advice or statutory interpretation to Vendors {Bidders}. The State encourages each Vendor {Bidder} to analyze the NJ Prevailing Wage Act and other relevant law, and determine for itself whether the Scope of Work would trigger its application. In the event of questions the Vendor {Bidder} should reach out to the New Jersey Department of Labor and Workforce Development. Below please find a link where questions make be directed:

https://www.nj.gov/labor/aboutlwd/

N.J.S.A. 52:34-13.2 provides that all contracts which are primarily for services shall be performed within the United States. The State cannot provide legal advice or statutory interpretation for the Vendor {Bidder}, so Vendors {Bidders} are encouraged to seek their own legal counsel with regard to case law interpreting the statute and the specific requirements as they may relate to a Vendor’s {Bidder’s} business.