Employees Retirement System of Texas Request for Proposals for Transmission to Information Returns Intake System (IRIS) Services RFP No. 26-15697-001

Request for Proposals Summary

A.1. Introduction. The purpose of the RFP is to select an enterprise-grade tax compliance software vendor to implement a transmission to Information Return Intake System (IRIS) for validating, processing, and electronically filing IRS Form 1099-R (Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.) A detailed description of the Services required by ERS is provided in RFP Section C. The Minimum Requirements for submitting a Proposal can be found at Appendix E, Section B.

A.1.a. The system must natively handle a high-volume data ecosystem, ingest structured data extracts from ERS’ upstream system, and support direct transmission to the IRS via the IRIS Application-to-Application (A2A) API channel.

A.1.b. Definitions. A list of definitions for terms used in this solicitation can be found at Appendix A, Section B.

A.2. Contract Term. The term of the Contract will begin upon execution of the Contract by ERS and is anticipated to extend for a period of four (4) years, with an option to extend upon agreement of both parties.

A.3. Contractor Selection. ERS will only select one (1) Respondent to provide the Services. ERS will execute a Contract with the Contractor, and the Contractor will be responsible for its performance under the Contract. ERS reserves the right not to select any Respondent to provide the Services.

A.4. Submission. Instructions for submitting a Proposal can be found at Appendix A, Section A. Documents to be submitted can be found in Appendix E.

A.5. Schedule of RFP Process. The RFP process will be conducted in accordance with the following schedule. ERS reserves the right to change any and all deadlines below at any time.

Proposal Evaluation

B.1. Preliminary Review Phase. Euna will provide ERS with a report noting the date and time of Respondents’ submissions, which ERS will use to acknowledge timely receipt. Euna will not accept Proposals after the deadline specified in RFP Section A.5. ERS will not conduct a public reading of Respondent names after acceptance of Proposals.

B.1.a. In the Preliminary Review Phase, ERS will determine which Proposals will be evaluated in the Proposal Evaluation Phase based on the following pass/fail criteria:

· Minimum Requirements (Appendix E, Section B);

· Responsiveness;

· Compliance with the RFP; and

· Certain vendor performance checks required by the CPA, including, but not limited to, vendor past performance as reported in CPA’s Vendor Performance Tracking System in accordance with Section 2262.055 of the Tex. Gov’t Code.

B.1.b. If a Proposal fails any of the above criteria, it will be ineligible for subsequent phased scoring. ERS is not obligated to notify Respondents that have not qualified for the Proposal Evaluation Phase. Based on a more in-depth review, ERS reserves the right to determine a Proposal is noncompliant with the RFP after the Preliminary Review Phase. A Proposal may also be disqualified at any time it becomes apparent to ERS that such Proposal is nonresponsive.

B.2. Proposal Evaluation Phase. In addition to the pass/fail criteria described in RFP Sections B.3. – B.4., Proposals that pass the Preliminary Review Phase will be evaluated as detailed in the table below:

B.2.a. ERS scores each Respondent on Relevant Qualifications, Experience, and Services independent from one another; thus, each Respondent has the opportunity to earn the full 70 points. Price Proposals, however, are scored relative to one another; thus, only the lowest Price Proposal will receive all 30 points.

B.3. References. As part of the Proposal Evaluation Phase, ERS also reserves the right to check Respondents’ references. ERS may do so by requesting relevant references from Respondents during this phase. However, ERS is not limited to contacting references provided by a Respondent, and may contact other persons or entities in which Respondent has performed similar services for in the past. If a Respondent has performed services for ERS in the past ten (10) years, ERS may also rely on its own experience with the Respondent as part of this check. If checked, references are evaluated on a pass/fail basis.

B.4. Legal Requirements and Regulatory Compliance. Answers to interrogatories found at Appendix E, Section E are evaluated on a pass/fail basis.

B.5. Recommendation and Contingent Award. After the Proposal Evaluation Phase is complete and following a review by ERS’ Director of Procurement and Contract Oversight, a recommendation will be made to ERS’ Executive Director regarding Respondents. ERS’ Executive Director will make a contingent Contract award determination.

B.5.a. The award will be contingent on: (1) a signed Contract; and, in ERS’ discretion, (2) ERS’ verification of key Proposal representations and ERS’ further due diligence on the selected Respondent’s ability to fulfill select Scope requirements, most importantly information systems security.

B.5.b. Award. In the event the conditions above in RFP Sections B.5.- B.5.a.ii. are met, ERS may execute a Contract with the selected Respondent.

B.5.c. In the event ERS determines the above conditions have not been met, ERS reserves the right to follow steps in RFP Section B.5.a. based on the next top-ranked Respondent from the Proposal Evaluation Phase until ERS executes a Contract based on the next top-ranked Respondent from the Proposal Evaluation Phase until ERS executes a Contract.

B.6. Texas Respondents. To the extent applicable and consistent with ERS’ fiduciary duty, ERS may rely on Section 2155.444 of the Tex. Gov’t Code, in the event of a tie in scoring.

B.7. Reserved Rights. ERS retains the right to enter into negotiations with any Respondent on any portion of its Proposal. ERS also retains the right to select the Proposal of the Respondent that offers the best value to ERS, its members, and the State. In its selection, ERS shall take into consideration the criteria specifically described in RFP Section B, Proposal Evaluation. ERS also retains the right not to select any Respondent to provide Services in any of the Service Categories.

B.8. Rebids. ERS reserves the right to rebid the RFP if ERS deems a rebid to be in the best interests of ERS, its members, and the State. ERS is under no legal requirement to execute a Contract on the basis of the RFP and makes no guarantee that an award will be made as a result of the RFP.

B.9. Waivers. ERS reserves the right to waive any immaterial Deviation or defect in a Proposal. ERS’ waiver of a defect shall in no way modify the RFP or excuse Respondent from full compliance with the RFP requirements.

Scope of Services

C.1. Contractor shall successfully manage all aspects of processing and electronically filing IRS Form 1099-R data files through the Information Return Intake System (IRIS) Taxpayer Portal beginning with the 2026 tax year / 2027 tax filing season. Contractor shall also process and electronically file corrections to returns originally filed through the IRS FIRE system in accordance with current IRS requirements.

C.1.a. Respondent should further elaborate on how it proposes to fulfill this Scope pursuant to Appendix E, Section C.3.

C.2. Optional Services. If the selected Respondent proposes to provide printing services (a fully optional offering), ERS may require the Contractor to perform all format design, printing, inserting and mailing services for IRS Form 1099-R recipients beginning with the 2026 tax year / 2027 tax filing season.

C.2.a. If not providing print and mail services (a fully optional offering), referenced in RFP Section C.2. above, Contractor shall cooperate with ERS’ print vendor to meet the deadline in RFP Section C.4. below.

C.2.b. Electronic Delivery (e-Delivery). If the selected Respondent proposes to provide electronic delivery (a fully optional offering), Contractor’s systems shall have a secure, accessible, mobile-responsive portal where high-volume recipients can optionally opt-in, authenticate, view, and securely download tax forms.

C.3. Project Management. ERS’ Enterprise Planning Office is responsible for the project management services that will ensure that the proper planning, procedures, and protocols are in place to implement the Services.

C.3.a. An ERS Project Manager will manage the implementation activities from ERS’ perspective. It is ERS’ expectation that the ERS project manager will work with the Implementation project manager as the primary point of contact regarding all implementation activities and endeavors; all information will be disseminated through these two individuals.

C.4. Implementation. The system shall be fully tested, implemented and ready for service to ERS in accordance with IRS stated deadlines for the 2026 tax year / 2027 tax filing season.

C.5. Subcontractors. In the event Contractor uses subcontractors to provide any or all of the Services, Contractor is solely responsible for all Services required by ERS and specifically assumes all liability for any and all such Services provided by subcontractors, if any. Any planned or proposed use of subcontractors by Contractor shall be disclosed to ERS.

C.5.a. Contractor shall be the primary contact for ERS and subcontractors. Contractor shall be solely responsible for all subcontracted activities in support of the Services.

C.5.b. Contractor shall manage all quality and performance for subcontractors.

C.5.c. Contractor is solely responsible for the acts and omissions of its subcontractors.

C.5.d. Contractor shall be responsible for ensuring that its subcontractors maintain the requisite licenses, permits, certifications, and/or trainings necessary to perform all subcontracted Services, and that they will comply with all applicable laws and regulations, both state and federal, and requirements of any organization or entity with any oversight authority over them.

C.5.e. ERS retains the right to check all subcontractors’ backgrounds or otherwise gather information regarding subcontractors to make a determination to approve or reject the use of any subcontractor.

C.6. Insurance Coverage Requirements. Contractor must have sufficient insurance coverage that is in full force at the time of Contract execution and throughout the Contract Term. The insurance coverage required under the Contract shall be obtained from insurance companies that are licensed in the State with at least an “A-” rating from A.M. Best Company. ERS will determine sufficiency of Contractor’s coverage and may request changes prior to Contract award. Contractor shall be financially responsible for all deductibles or self-insured retentions.

C.6.a. If any insurance coverage required as part of the Contract is cancelled during the Contract Term, Contractor shall provide thirty (30) days’ advance written notice of cancellation to ERS. Contractor shall provide ERS with evidence of replacement insurance coverage within thirty (30) days of the expiration or cancellation of the current policy(ies).

Legal Requirements and Regulatory Compliance

D.1. Disclaimer and Terms of Use Language. Any disclaimer or terms of use language within Respondent’s Proposal, including any documentation provided by Respondent, shall be null and void and have no force or effect on ERS and ERS’ personnel as if such language did not exist. This includes, but is not limited to, notice of copyrights.

D.2. Cooperation. Respondent shall act in good faith and cooperate with ERS in the execution of the Contract. ERS specifically reserves the right to revise any or all RFP or Contract provisions set forth at any time prior to ERS’ execution of a Contract where ERS deems it to be in the best interests of ERS, its members, and the State, subject to good faith negotiations of the parties concerning terms, fees, and the Services required.

D.3. Signature Page. One (1) Authorized Representative shall execute the Signature Page (Appendix B). If more than one (1) entity will sign the Contract, each entity shall submit a separate Signature Page executed by its Authorized Representative. The signature(s) of the Authorized Representative(s) on the Signature Page(s) and all other related documents submitted by Respondent reflect Respondent’s agreement with the truth and accuracy of all statements, warranties, and representations contained in the Proposal and all other documents submitted by Respondent. The signature(s) further reflect Respondent’s authorization for ERS to rely on same for all purposes in connection with the RFP process. Respondent’s executed Signature Page(s) shall be submitted with its Proposal. ERS will not accept Deviations to the Signature Page.

D.3.a. Electronic Signatures. Any electronic signature submitted for purposes of the RFP, including any appendix thereto, shall constitute an “electronic signature” as such term is defined in Chapter 322 of the Texas Business and Commerce Code.

D.4. Data Sharing. ERS’ data shall be excluded from any type of data sharing arrangement unless written consent has been provided by ERS.

D.5. Information Security. As applicable, Contractor shall comply with the Gramm-Leach-Bliley Act, also known as the Financial Services Modernization Act of 1999 [Pub. L. No. 106-102, 113 Stat. 1338]; the federal Health Insurance Portability and Accountability Act of 1996 [Pub. L. No. 104-191], amended by the Health Information Technology for Economic and Clinical Health Act, as incorporated in the American Recovery and Reinvestment Act of 2009, and the implementing regulations issued and amended by the U.S. Department of Health and Human Services Secretary (45 C.F.R. parts 160 and 164), as amended; the Privacy Act of 1974 as amended by the Computer Matching and Privacy Protection Act of 1988; the Identity Theft Enforcement and Protection Act, Chapter 521, Tex. Bus. & Com. Code; the information security standards as outlined in Tex. Admin. Code, Title 1, Part 10, ch. 202; and all other federal and state privacy and security laws. Execution of the DSBNA by Respondent will be required prior to final execution of the Contract by ERS.

D.6. Terms of Use. Any Terms of Use displayed, referenced, or linked by any website, mobile application, or other technology solution used to perform, deliver, or receive the Services shall be null and void and have no force or effect as to the Services, ERS, or ERS’ employees, officers, directors, representatives, and trustees. This paragraph applies even if an ERS employee, officer, director, representative, or trustee purports to acknowledge, accept, or agree to any such Terms of Use.

D.6.a. If Contractor engages a third party to provide a website, mobile application, or other technology solution that is used to perform, deliver, or receive the Services, Contractor shall ensure its agreement with the third party limits the effectiveness of any third-party Terms of Use at least to the extent specified in the preceding section.

Price Proposal, Payment, and Invoicing Instructions

E.1. Price Submission. All proposed pricing must be submitted in the Respondent Questionnaire (Appendix E, Section D.1.). Contractor shall not be paid any fees or earn any compensation in connection with the Contract except for the fees proposed in Appendix E, Section D.1. and as negotiated with and agreed to by ERS. Respondent’s Price Proposal must include everything necessary to provide the Services (see RFP Section C). ERS will not pay for omitted services that are needed to complete the Services. Pricing errors are at the risk of the Respondent.

E.1.a. Prices quoted shall be considered by ERS to be firm offers for the entire length of the initial Contract Term. Contractor shall negotiate in good faith with ERS regarding pricing for any renewal rates for any extension after the initial Contract Term.

E.1.b. ERS will not compensate Contractor for out-of-pocket expenses and travel, except as specifically agreed to in writing by ERS in advance of Contractor incurring the expenses.

E.1.c. Respondent may not include any assumptions or conditions in its Price Proposal.

E.1.d. Subcontracting shall be at Contractor’s expense.

E.2. Optional Services. The prices in Appendix E, Sections D.2. and D.2.a, as applicable, will be included in the Contractor’s Fee Schedule, which is an exhibit to the Contract. During the Contract Term, ERS will use the Fee Schedule to confirm the prices provided by Contractor for any optional services provided in Appendix E, Sections D.2. and D.2.a.

E.2.a. The pricing information submitted by Respondent for optional services in Appendix E, Sections D.2. and D.2.a. will not be used in the evaluation of the Price Proposal; however, Contractor will be obligated to provide any or all of the optional services in the event that ERS requires such services. If ERS requires any optional services, that will be communicated in writing to the Contractor. If ERS does not require any optional services, it will not be obligated to pay for such services.

E.3. Prompt Payment by ERS. Payment shall be made in accordance with Chapter 2251 of the Tex. Gov’t Code, commonly known as the Texas Prompt Payment Act. Chapter 2251 shall govern remittance of payment and remedies for late payment and non-payment.

E.3.a. Prompt payment of invoices will be based on Contractor having an accounting point of contact available to ERS to answer any questions during the reconciliation process.

E.4. Payment Disputes. Any disputes regarding payment will be resolved in accordance with Contract terms and State laws pertaining to dispute of invoices.

E.5. ERS Tax Exemption. ERS is a trust fund established by the Texas Constitution and is, therefore, a tax-exempt governmental entity. Any fees to be paid by ERS in connection with the Contract shall not include taxes of any kind, and shall not be increased to compensate for the fact that ERS is tax exempt.

E.6. Right to Audit. ERS and the State shall have the right to audit Contractor’s or any subcontractor’s records related to the Contract. The Contract will have additional requirements in this regard.

E.7. ACH Payments. Contractor may receive ACH payments if it submits a Direct Deposit Form, which may be obtained by submitting a request to ERS’ Accounts Payable Department at: ap@ers.texas.gov.

E.8. Invoice Submission. Contractor may submit its invoice by emailing it to ap@ers.texas.gov. Payment for the Contract will occur on a monthly or other periodic basis to be negotiated with Contractor. All invoices must be submitted to ERS within thirty (30) days after the end of each month during the Contract Term.

E.8.a. Invoice Content. Contractor shall provide an invoice that includes the following:

· Contract or purchase order number;

· Summary statement that outlines the services performed; and

· Texas Identification Number. The application for a Texas Identification Number may be obtained by submitting a request to ERS’ Accounts Payable Department at: ap@ers.texas.gov.

Deliverables Checklist

Note: If Respondent determines that a requested document is missing from the Proposal Deliverables Checklist and/or Euna does not include the requested document under “Requested Information”, Respondent may contact ERS prior to the Proposal submission deadline specified in RFP Section A.5., and ERS can include the deliverable in Euna, as applicable.

F.1. Proposal Deliverables Checklist. Respondent shall upload the following documents under “Requested Information” in Euna in the formats noted below. See Appendix A for information regarding Respondent’s responsibility for Proposal content.

List of Appendices

Appendix A – Additional Information Appendix B – Signature Page Appendix C – Contract Provisions Appendix D – Data Security and Breach Notification Agreement Appendix E – Respondent Questionnaire

Employees Retirement System of Texas Transmission to Information Returns Intake System (IRIS) RFP Page 15 of 17