Next Generation Tax System Request for Proposals



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Request for Proposal Number 08-011-RFP

for

Unemployment Insurance

Next Generation Tax System

by the

Washington State

Employment Security Department

Released on November 28, 2007

Table of Contents

1. Introduction 4

1.1 Background 4

1.2 Acquisition Authority 4

1.3 Purpose 5

1.4 Contract Term 5

1.5 Definitions 5

1.6 Award 5

1.7 Overview of Solicitation Process 5

1.8 Department Provided Resources 6

2. SCHEDULE 7

3. Administrative Requirements 8

3.1 RFP Coordinator (Proper Communication) 8

3.2 Procurement Web Site and Project Library 8

3.3 (M) Letter of Intent 9

3.4 (M) Nondisclosure Agreement 9

3.5 (M) Pre-Proposal Conference 9

3.6 Vendor Questions 10

3.7 Vendor Comments Invited 10

3.8 Vendor Complaints Regarding Requirements and Specifications 10

3.9 (M) Proposal Contents 11

3.10 (M) Number of Proposal Copies Required 11

3.11 (M) Proposal Presentation and Format Requirements 11

3.12 (M) Delivery of Proposals 12

3.13 Cost of Proposal Preparation 12

3.14 Proposal Property of the Department 12

3.15 Proprietary or Confidential Information 12

3.16 Waive Minor Administrative Irregularities 13

3.17 Errors in Proposal 13

3.18 Amendments/Addenda 13

3.19 Right to Cancel 13

3.20 Contract Requirements 13

3.21 Incorporation of Documents into Contract 14

3.22 No Best and Final Offer 14

3.23 No Costs or Charges 14

3.24 Minority and Women’s Business Enterprises (MWBE) 14

3.25 No Obligation to Contract/Buy 14

3.26 Non-Endorsement and Publicity 14

3.27 Withdrawal of Proposal 15

3.28 Optional Vendor Debriefing 15

3.29 Protest Procedures 15

3.30 Selection of Apparently Successful Vendor 15

4. VENDOR REQUIREMENTS 16

4.1 (M) Vendor Profile/Letter of Submittal 16

4.2 (MS) Vendor Organizational Capabilities 16

4.3 (MS) Project Organization 16

4.4 (M) Single Point of Contact 16

4.5 (MS) Staff Qualifications 16

4.6 (M) Vendor Account Manager 18

4.7 (MS) Client References 18

4.8 (M) Reporting 18

4.9 (M) Intellectual Property 18

4.10 (M) Financial Rating 19

4.11 (M) Vendor Licensed to do Business in Washington 19

4.12 (M) Use of Subcontractors 19

4.13 (M) Prior Contract Performance 19

4.14 (M) Letter of Credit 20

4.15 (M) Insurance 20

4.16 (M) Extended Coverage 21

4.17 (M) Worker’s Compensation Coverage 21

5. NGTS System Requirements 22

5.1 (M) Risk Management 22

5.2 (M) Project Management Requirements 22

5.3 (M) NGTS Business/Functional Requirements 22

5.4 (M) Technology Requirements 22

5.5 (MS) Equipment and Software 22

5.6 (M) Acceptance Testing 23

5.7 (M) Warranty 23

5.8 (M) Warranty Period Service Levels 23

6. Financial Proposal 27

6.1 (M) General Provisions 27

6.2 (M) Financial Proposal Requirements 27

6.3 (MS) Financial Requirements NGTS Completion 27

6.4 (MS) Optional Tasks 28

7. EVALUATION PROCESS 29

7.1 Overview 29

7.2 Administrative Screening 29

7.3 Mandatory Requirements 29

7.4 Qualitative Review and Scoring 29

7.5 Vendor Total Score 30

7.6 Oral Presentations, Section of Apparently Successful Vendor 31

7.7 Contracting Process 31

APPENDICES:

Appendix A: Glossary

Appendix B: Project Management Requirements

Appendix C: Business/Functional Requirements

Appendix D: Technology Requirements

Appendix E: Certifications and Assurances

Appendix F: Model Contract

Appendix G: MWBE Certification

Appendix H: Protest Procedures

Appendix I: Checklist

Appendix J: Client References

Appendix K: Price Calculations

Appendix L: Mandatory Scored Requirements: Scoring Matrix

Appendix M: Deliverable Acceptance Criteria

SECTION 1

Introduction

1 Background

The Washington State Employment Security Department (the Department) is legally mandated to manage and operate the Unemployment Insurance (UI) program that pays benefits to those who are temporarily unemployed. This program is administered from the Unemployment Insurance Trust Fund, which is funded through the UI Tax, a graduated system of taxes on wages paid by employers.

The Department has initiated an information technology project, the Next Generation Tax System (the “NGTS”), to replace its aging UI Tax system. The Department proposes utilizing an integration contractor to build and implement a replacement system that will be operational by June 2011.

The UI Tax program is currently supported by the TAXIS/WAGES system (designed and built a quarter century ago using 1970’s technology) and 15 ancillary computer systems that support business functions which TAXIS/WAGES is unable to support. TAXIS/WAGES was built according to 1980 UI law—which has changed on a continuing basis as the legislature has worked to balance the integrity of the UI trust fund with UI tax equity. The system has been changed to accommodate law changes. However, many business functions, including accounting and collections, have been disabled or were not completed. Programming and testing the necessary changes has required significant effort due to the inflexibility of the current TAXIS/WAGES system, which is inefficient to operate and maintain. As a result, the Department needs to replace the existing system.

The NGTS will be built in four stages that will follow a formal system design process. These stages include:

• Stage 1: the Database Deliverable which will include development and Implementation of the System database and the converted Data from the Department’s legacy computer systems, as described in the Work Plan, the Implementation Plan, and this Contract. .

• Stage 2: the Tax Application Deliverable which will include all UI Tax employer registration, accounting, benefit charging, establishment of tax rates based on experience, collections, and reporting, as described in the Work Plan, the Implementation Plan, and this Contract. The Tax Application Deliverable will require three temporary interfaces to the Department’s legacy computer systems (employer input, wages database, and audit) in order to be Operational.

• Stage 3: the Wage Application and Database Deliverable which will replace the Department’s legacy computer system that provides input and a repository for wages paid and hours worked for employees, as described in the Work Plan, the Implementation Plan, and this Contract.

• Stage 4: the Employer Application Deliverable which will replace the current subsystems supporting employer input of tax and wage reports and payments (including an Internet application, two magnetic media applications, and imaging of paper reports).

2 Acquisition Authority

Chapter 43.105 of the Revised Code of Washington (RCW) as amended establishes the Washington State Information Services Board (ISB). While the ISB does not purchase for agencies, it regulates the manner in which state agencies may acquire information technology equipment, software, and services. The Department issues this Request for Proposal (RFP) acting under the delegated authority of the ISB. The ISB must approve the selection of the Apparently Successful Vendor and the award of this bid before the contract can be signed.

Because the Contract Resulting from this RFP will be for the design, development, and implementation of a Major Information Technology System that has significant statewide impact and is subject to Information Services Board approval, the Office of Financial Management (OFM) has authority over the Contract resulting from this RFP. Such Major System Contracts are required to be filed with OFM. Work shall not commence and payment shall not be made pursuant to such Contracts until a minimum of ten (10) working days after the date of filing, and, if required, until reviewed or approved by OFM. In the event OFM fails to approve the Contract, the Contract shall be null and void.

3 Purpose

The Department is requesting responses from Vendors to enter into a Contract, on a competitive basis, with a qualified integrator to develop and implement or acquire the Next Generation Tax System. The NGTS will manage the collection of and accounting for UI Taxes that support the Unemployment Insurance program. The NGTS will be located in Olympia, Washington.

4 Contract Term

It is anticipated that the term of the resulting Contract will commence on the date listed in Section 2., with all deliverables including Acceptance Testing completed on a schedule established in Deliverable 1.1: Project Plan as accepted by the Department. The contract will include a warranty period as described in Section 5.8 and extending through the later of six months or until all processes have been successfully completed in a production mode. The Department, at its sole discretion, may extend the Contract.

5 Definitions

Definitions for this Request for Proposal shall have the meanings assigned to them as provided in Appendix A.

6 Award

Only one (1) Apparently Successful Vendor (ASV) will be identified via this procurement. The Department intends to award only one (1) Contract.

7 Overview of Solicitation Process

In July 2006, the Department initiated an evaluation of its current UI Tax Systems that resulted in a Feasibility Study for a replacement system (the Next Generation Tax System). The Feasibility Study called for an Integration Contractor to build and implement the new system. In May 2007, the Washington State Information Services Board approved the Department’s request to begin a procurement process. This solicitation process occurs within the scope of that approval.

The procurement is initiated by this Request for Proposal (RFP). Vendors will compete to build and implement the NGTS. After evaluation of the proposals (Section 7: Evaluation Process), the Department and the ASV will enter into a fixed-price, deliverable based contract through which the Vendor will build and implement the NGTS.

This solicitation process will occur in two stages:

• Vendor Proposals will be evaluated based on Mandatory Requirements (pass/fail) and Mandatory Scored Requirements; and

• The Department will identify the three (3) highest scoring finalists. Finalists will present their project management approaches and demonstrate their solutions. The Apparently Successful Vendor will be selected from the finalists.

8 Department Provided Resources

Vendors should assume that the Department will provide the following resources to the Project:

• Facilities: A common facility configured with ESD Standard work areas, to house both Vendor and Department staff for the duration of the Project.

• Computers and Communications: Telephones, and Desktop computers and work-group printers for Vendor and Department staff; Local Area Network connectivity; Common storage servers for Project use.

• Technology Staff: Eight (8) programmer/analysts from the Department’s Information Technology Services Division will be available for design, development, testing, and implementation.

• Business Staff: Business staff from the UI Tax Branch will be available for design, development, testing, and implementation as requested in the Vendor’s proposal and negotiated with the Department.

SECTION 2

SCHEDULE

This RFP is being issued under the following Schedule. The Proposal deadlines are mandatory and non-negotiable. Failure to meet any of the required deadlines (dates and times) will result in disqualification from participation.

|Issue RFP |11/28/2007 |

|Intent to Attend Pre-Response Conference Due |12/06/2007 |

|Pre-Response Conference |12/10/2007, 9:30 a.m. |

|Signed Non-Disclosure Agreement Due |12/11/2007, 3:00 p.m. |

|Vendor Letter of Intent Due |12/11/2007, 3:00 p.m. |

|Vendor Round 1 Questions Due |12/11/2007 |

|Publish Q & A Round 1 |12/14/07 |

|Vendor Comments and Complaints Due |12/18/2007 |

|Vendor Round 2 Questions Due |1/17/2008 |

|Publish Q & A Round 2 |1/23/2008 |

|Vendor Proposals Due |1/31/2008, 3:00 p.m. |

|Administrative Review |1/31/2008 – 2/8/2008 |

|Evaluation Period |2/8/2008 – 2/25/2008 |

|Schedule Presentations |2/25/2008 – 2/27/2008 |

|Vendor Presentations |3/4/2008-3/6/2008 |

|Announce Apparently Successful Vendor |3/13/2008 |

|Request for Optional Debrief |3/14/2008 |

|Conduct Optional Debriefs |3/17/2008 – 3/18/2008 |

|Contract Negotiations |3/19/2008 – 5/1/2008 |

|Obtain ISB Approval |5/8/2008 |

|Obtain OFM Approval |5/14/2008 |

|Contract Begins |5/19/2008 |

ESD reserves the right to revise the above Schedule.

SECTION 3

Administrative Requirements

1 RFP Coordinator (Proper Communication)

Upon release of this RFP, all Vendor communications concerning this solicitation must be directed to the RFP Coordinator listed below. With the exception of the Office of Minority and Women’s Business Enterprises, unauthorized contact regarding this solicitation with other state employees involved with the solicitation may result in disqualification. All oral communications will be considered unofficial and non-binding on the State. Vendors should rely only on written statements issued by the RFP Coordinator.

|Bryce Carlen, RFP Coordinator |Courier Address: |

|Employment Security Department |605 Woodland Square Loop, 2nd Floor |

|Telephone: (360) 252-6825 |Lacey, WA 98503 |

|FAX: (360) 252-6825 | |

|E-mail: NGTS@esd. |US Mail: |

| |PO Box 9046 |

| |Olympia WA 98507 |

The Department may utilize mail, e-mail, and/or posting to the Department’s Procurement Web Site for official communications.

2 Procurement Web Site and Project Library

The contents of this RFP, and all related documents, along with any amendments/addenda and written answers to questions will be available on the ESD web site at:

This Library includes the following:

• From the NGTS Feasibility Study Project:

o Gap Analysis

o Functional Requirements

o Technology Requirements

o Implementation Requirements

o Feasibility Study

o NGTS Investment Plan

• Other Library Documents:

o NGTS Use Cases

o NGTS Business Rules

o Department’s Information Technology Standards

o Unemployment Insurance Law, Regulation, and Policy

o An Overview of the Current UI Tax Systems

o Skills and competencies for the Department staff available to the Project

The document(s) will be available in Adobe Acrobat or Microsoft Word formats. Vendors are strongly encouraged to visit the Web Site and download the documentation from the Library.

3 (M) Letter of Intent

A letter indicating the Vendor's intent to respond to this RFP must be received by the RFP Coordinator at the address specified in Section 3.1: RFP Coordinator, no later than the date and time listed in Section 2: Schedule. The Vendor may submit the Letter of Intent by U.S. mail, facsimile or e-mail. Failure to submit a Letter of Intent to propose by the deadline specified in Section 2: Schedule will result in Vendor disqualification and the rejection of any subsequent Proposal.

Each Vendor must include the following information in the Letter of Intent:

• Name of Prime Vendor Organization;

• Name of Prime Vendor Representative to serve as contact for RFP communications;

• Prime Vendor Representative Title;

• Prime Vendor Representative Address;

• Prime Vendor Representative Telephone Number;

• Prime Vendor Representative FAX Number;

• Prime Vendor Representative E-mail Address;

• Name(s) of any companies potentially partnering on this proposal;

• Statement of Intent and Availability;

• Statement of Vendor’s good faith belief in its ability to meet the Mandatory and Desired Requirements listed in Appendices B: Project Management Requirements, C: Business/Functional Requirements, and D: Technology Requirements;

• Statement of capacity and qualifications to perform a project of scope and duration of NGTS;

• Brief description of why you believe your company meets the minimum qualifications of the Project;

• Certification of experience building and implementing a tax or accounting system in the last four (4) years with a contract value in excess of $10 million.

Reminder: Failure to provide sufficient information in support of meeting the minimum qualifications may result in disqualification from further participation in this procurement.

4 (M) Nondisclosure Agreement

Vendors wishing to participate in this solicitation process and intending to submit a Proposal to this RFP must sign and complete a Non-disclosure Agreement and return it to the RFP Coordinator (reference Section 3.1). The purpose of this Non-disclosure Agreement is to enable the Department to make limited disclosure of confidential information while still maintaining protection and control over the confidential information. A copy of the Non-disclosure Agreement is available on the ESD Procurement site at . The signed Non-disclosure Agreement must be received by ESD no later than the date and time specified in the Schedule (Section 2). Vendors assume all responsibility for the mode of dispatch selected. Time extensions will not be granted. ESD will accept a signed Non-disclosure Agreement sent by fax or scanned and sent via email to the RFP coordinator.

5 (M) Pre-Proposal Conference

Vendors who wish to submit a Proposal to this RFP must participate in a Pre-Proposal Conference on the date and at the time identified in Section 2: Schedule. Vendors who do not attend the Conference will not be eligible to submit a Proposal to the RFP. The Conference will be held at the following location:

Lacey Community Center

6729 Pacific Avenue SE

Lacey, WA 98503 – (360) 412-3191 or (360) 491-0857



The purpose of this Pre-Proposal Conference is to provide Vendors an opportunity to address questions they may have concerning the RFP. Vendors are requested to submit their questions in writing to the RFP Coordinator at their earliest opportunity prior to the Pre-Proposal Conference. Verbal answers to additional Vendor questions at the time of the Pre-Proposal Conference will be nonbinding and unofficial. The Department will attempt to provide a written response to significant questions to participating Vendors within three (3) Business Days after the Pre-Proposal Conference.

Attendance at the Pre-Proposal Conference is mandatory. Participation by teleconference will not be allowed. Attendance at the Pre-Proposal Conference is at the Vendor’s sole expense.

6 Vendor Questions

Vendor questions regarding this RFP will be accepted until the dates and times (Round 1 and Round 2) specified in Section 2: Schedule. Vendor questions must be submitted in writing (e-mail and FAX acceptable) to the RFP Coordinator. An official written response will be provided for Vendor questions received by these deadlines. Written responses to Vendor questions will be posted on the Department’s Procurement Web Site at:

The Vendor that submitted the questions will not be identified. Verbal responses to questions will be non-binding on the Department. Only written responses posted to the Department’s Procurement Web Site will be considered official and binding.

7 Vendor Comments Invited

Vendors are encouraged to review the Mandatory Requirements of this RFP carefully, and submit any comments and recommendations to the RFP Coordinator. Where Mandatory Requirements appear to prohibit or restrict your firm’s participation, an explanation of the issue with suggested alternative language should be submitted in writing to the RFP Coordinator by the deadline for Vendor Comments and Complaints in Section 2: Schedule.

8 Vendor Complaints Regarding Requirements and Specifications

Vendors are expected to raise any questions, exceptions, or additions they have concerning the RFP requirements early in the RFP process. Vendors may submit specific complaints to the RFP Coordinator, if Vendor believes the RFP unduly constrains competition or contains inadequate or improper criteria. The complaint must be made in writing to the RFP Coordinator before the Proposal due date and time set forth in Section 2: Schedule. The solicitation process may continue.

The Department will immediately forward a copy of the complaint to the policy and planning unit of the Department of Information Services (DIS). The Department will also reply to the Vendor with a proposed solution and advise DIS of its reply. If the Vendor rejects the Department’s proposed solution, DIS may direct modification of solicitation requirements or the schedule, direct withdrawal of the solicitation, or may take other steps that it finds appropriate. The DIS decision is final; no further administrative appeal is available.

9 (M) Proposal Contents

The Proposal must contain information responding to all Mandatory Requirements in Appendices B: Project Management Requirements, C: Business/Functional Requirements and D: Technology Requirements, completed client references, and must include the signature of an authorized Vendor representative on all documents required in the Appendices.

The Proposal must be submitted in three (3) volumes organized and containing the information listed below. This separation of documentation protects the integrity of the State’s evaluation process. No mention of the Financial Proposal may be made in Volumes 1 or 3.

Volume 1:

Vendor’s cover letter explicitly acknowledging receipt of all RFP revisions issued.

The Response to Appendix B: Project Management Requirements

The Response to Appendix C: Business/Functional Requirements

The Response to Appendix D: Technology Requirements

Volume 2:

Financial Proposal (Section 6: Financial Proposal)

Volume 3

Vendor’s signed and completed Certifications and Assurances (Appendix E)

Vendor’s exceptions and/or proposed revisions to the Contract (Appendix F)

Vendor’s Minority and Women’s Business Enterprise (MWBE) Certification (Appendix G, if applicable

All Proposals must be submitted using Microsoft Word, Microsoft Excel, Microsoft Project, Microsoft Visio, or Adobe Acrobat. Failure to provide any requested information in the prescribed format may result in disqualification of the Vendor.

10 (M) Number of Proposal Copies Required

1 CD-ROM of Proposal Volume 1, with one (1) true and correct printed backup copy produced on 8.5 x 11 paper, punched and bound in a three ring binder.

1 CD-ROM of Proposal Volume 2, with one (1) true and correct printed backup copy produced on 8.5 x 11 paper, punched and bound in a three ring binder.

1 CD-ROM of Proposal Volume 3, with one (1) true and correct printed backup copy produced on 8.5 x 11 paper, punched and bound in a three ring binder.

The printed backup copies will be used only in the event that files on the CD-ROMs are corrupt or otherwise inaccessible.

1 copy of manuals, brochures, or other printed materials, if submitted, including any demonstration video or demonstration web site on CD-ROM.

11 (M) Proposal Presentation and Format Requirements

The following requirements are Mandatory in responding to this RFP. Failure to follow these requirements may result in Vendor disqualification.

1. The signature block in Appendix E: Certifications and Assurances must be signed by a representative authorized to bind the company to the offer.

2. Vendor must respond to each requirement contained in Appendix B: Project Management Requirements, Appendix C: Business/Functional Requirements, Appendix D: Technology Requirements of this RFP, complete Section 6: Financial Proposal, and complete Appendix E: Certifications and Assurances

Failure to submit any of the required documents may result in the Proposal being disqualified.

3. Each of the RFP requirements are numbered and titled. In each requirement title is a designation indicating how the Proposal will be evaluated:

a) For Mandatory Requirements (M), the Proposal must always indicate explicitly whether or not the Vendor’s proposed services meet the requirement. A statement, “(Vendor Name) has read, understands, and fully complies with this requirement” is acceptable, along with any additional information requested.

b) For Mandatory Scored requirements (MS) and Desirable Scored (DS) requirements items, the Proposal must always indicate explicitly whether or not the Vendor's proposed services meet the requirement, and describe how the proposed Vendor’s services will accomplish each requirement or are desirable as it relates to the service(s) proposed.

4. Proposals must be prepared on standard 8.5 x 11-inch loose-leaf paper and placed in three-ring binders with tabs separating the major sections of the Proposal. Pages must be numbered consecutively within each section of the Proposal showing Proposal section number and page number.

5. Include Vendor name and the name, address, e-mail, facsimile and telephone number of the Vendor’s authorized representative at the beginning of each volume of the Proposal.

6. Figures and tables must be numbered and referenced in the text of the Proposal by that number. Foldouts containing charts, spreadsheets, and oversize exhibits are permissible.

7. The Proposal, as well as any reference materials presented by Vendor, must be written in English and Vendor must provide all rates in United States dollars.

8. Files submitted on CD-ROMs must be in MS Word, MS Excel, MS Visio, MS Project or Adobe PDF format.

12 (M) Delivery of Proposals

It is Mandatory that Vendors submit all copies of their Proposals by the date and time in Section 2: Schedule, to the RFP Coordinator at the address specified in Section 3.1: RFP Coordinator.

Proposals must be received at the Department by the date and time specified. Proposals arriving after the deadline will be returned unopened to their senders. A postmark by that time is not acceptable. Proposals sent by facsimile or e-mail will not be accepted. Vendors assume all responsibility for the method of delivery and for any delay in the delivery of their Proposal.

13 Cost of Proposal Preparation

The Department will not reimburse Vendors for any costs associated with preparing or presenting a Proposal to this RFP.

14 Proposal Property of the Department

All materials submitted in response to this solicitation become the property of the Department, unless received after the deadline in which case the Proposal is returned to the sender. The Department has the right to use any of the ideas presented in any material offered. Selection or rejection of a Proposal does not affect this right.

15 Proprietary or Confidential Information

Any information contained in the Proposal that is proprietary or confidential must be clearly designated. Marking of the entire Proposal or entire sections of the Proposal as proprietary or confidential will not be accepted nor honored. Proposals where pricing is marked proprietary or confidential may be subject to disqualification.

To the extent consistent with Chapter 42.56 RCW, the Public Records Act, the Department shall maintain the confidentiality of Vendor’s information marked confidential or proprietary. If a request is made to view Vendor’s proprietary information, the Department will notify Vendor of the request and of the date that the records will be released to the requester unless Vendor obtains a court order enjoining that disclosure. If Vendor fails to obtain the court order enjoining disclosure, the Department will release the requested information on the date specified.

The State will notify Vendor of any request(s) for disclosure for so long as the Department retains Vendor’s information in the Department records. Failure to so label such materials or failure to timely respond after notice of request for public disclosure has been given shall be deemed a waiver by Vendor of any claim that such materials are exempt from disclosure.

16 Waive Minor Administrative Irregularities

The Department reserves the right to waive minor administrative irregularities contained in any Proposal. Additionally, the Department reserves the right, at its sole option, to make corrections to Vendors’ Proposals when an obvious arithmetical error has been made in the price quotation. Vendors will not be allowed to make changes to their quoted price after the Proposal submission deadline.

17 Errors in Proposal

Vendors are liable for all errors or omissions contained in their Proposals. Vendors will not be allowed to alter Proposal documents after the deadline for Proposal submission. The Department is not liable for any errors in Proposals. The Department reserves the right to contact Vendor for clarification of Proposal contents.

In those cases where it is unclear to what extent a requirement or price has been addressed, the evaluation team(s) may, at their discretion and acting through the RFP Coordinator, contact a Vendor to clarify specific points in the submitted Proposal. However, under no circumstances will the responding Vendor be allowed to make changes to the proposed items after the deadline stated for receipt of Proposals.

18 Amendments/Addenda

The Department reserves the right to amend portions of this RFP at any time. The Department may correct errors in the solicitation document identified by the Department or a Vendor. Any changes or corrections will be by one or more written amendment(s), dated, and attached to or incorporated in and made a part of this solicitation document. All changes must be authorized and issued in writing by the RFP Coordinator. If there is any conflict between amendments, or between an amendment and the RFP, whichever document was issued last in time shall be controlling. In the event that it is necessary to revise or correct any portion of the RFP, a notice will be posted on the Department’s Procurement Web Site at:

19 Right to Cancel

With respect to all or part of this RFP, the Department reserves the right to cancel or reissue at any time without obligation or liability.

20 Contract Requirements

The Department’s Proposed Contract, based on the Model Information Technology Contract Terms and Conditions adopted by the ISB, has been included as Appendix F.

To be responsive, Vendors must indicate a willingness to enter into a Contract substantially similar to the Department’s proposed contract, by signing the Certifications and Assurances located in Appendix E. Any specific areas of dispute with the attached terms and conditions must be identified in the Proposal and may, at the sole discretion of the Department, be grounds for disqualification from further consideration in the award of a Contract.

Under no circumstances is a Vendor to submit their own standard contract terms and conditions as a response to this solicitation. Instead, Vendor must review and identify the language in Appendix F that Vendor finds problematic, state the issue, and propose the language or contract modification Vendor is requesting. All of Vendor’s exceptions to the contract terms and conditions in Appendix F must be submitted within the Proposal, attached to Appendix E: Certification and Assurances. The Department expects the final Contract signed by the ASV to be substantially the same as the Contract located in Appendix F.

The foregoing should not be interpreted to prohibit either party from proposing additional contract terms and conditions during negotiation of the final Contract.

The ASV is expected to execute the Contract within ten (10) Business Days of its receipt of the final Contract. If the selected Vendor fails to sign the Contract within the allotted time frame, the Department may elect to cancel the award, and award the Contract to the next ranked Vendor, or cancel or reissue this solicitation (Section 3.18: Right to Cancel). Vendor’s submission of a Proposal to this solicitation constitutes acceptance of these contract requirements.

21 Incorporation of Documents into Contract

This solicitation document and the Proposal will be incorporated into any resulting Contract.

22 No Best and Final Offer

The Department reserves the right to make an award without further discussion of the Proposal submitted; i.e., there will be no best and final offer request. Therefore, the Proposal should be submitted on the most favorable terms that Vendor intends to offer.

23 No Costs or Charges

No costs or charges under the proposed Contract may be incurred before the Contract is fully executed.

24 Minority and Women’s Business Enterprises (MWBE)

The Department strongly encourages participation of minority and women businesses. Vendors who are MWBE certified or intend on using MWBE certified Subcontractors are encouraged to identify the participating firm on Appendix G. No minimum level of MWBE participation is required as a condition of receiving an award and no preference will be included in the evaluation of Proposals in accordance with chapter 39 RCW. For questions regarding the above, contact Office of MWBE at (360) 753-9693.

25 No Obligation to Contract/Buy

The Department reserves the right to refrain from Contracting with any and all Vendors. Neither the release of this solicitation document nor the execution of a resulting Contract obligates the Department to make any purchases.

26 Non-Endorsement and Publicity

In selecting a Vendor to supply services to the state of Washington, the State is neither endorsing Vendor’s products or services, nor suggesting that they are the best or only solution to the State’s needs. By submitting a Proposal, Vendor agrees to make no reference to the Department or the state of Washington in any literature, promotional material, brochures, sales presentation or the like, regardless of method of distribution, without the prior review and express written consent of the Department.

27 Withdrawal of Proposal

Vendors may withdraw a Proposal that has been submitted at any time up to the Proposal due date and time (identified in Section 2: Schedule). To accomplish Proposal withdrawal, a written request signed by an authorized representative of Vendor must be submitted to the RFP Coordinator. After withdrawing a previously submitted Proposal, Vendor may submit another Proposal at any time up to the Proposal submission due date and time.

28 Optional Vendor Debriefing

Only Vendors who submit a Proposal may request an optional debriefing conference to discuss the evaluation of their Proposal. The requested debriefing conference must occur on or before the date specified in Section 2: Schedule. The request must be in writing (FAX or e-mail acceptable) addressed to the RFP Coordinator.

The optional debriefing will not include any comparison between Vendor’s Proposal and any other Proposals submitted. However, the Department will discuss the factors considered in the evaluation of the requesting Vendor’s Proposal and address questions and concerns about Vendor’s performance with regard to the solicitation requirements. The debriefing conference may take place in-person or by telephone.

29 Protest Procedures

Vendors who have submitted a Proposal to this solicitation and have had a debriefing conference may make protests. Upon completion of the debriefing conference, a Vendor is allowed five (5) Business Days to file a formal protest of the solicitation with the RFP Coordinator. Further information regarding the grounds for filing and resolution of protests is contained in Appendix H: Protest Procedures.

30 Selection of Apparently Successful Vendor

All Vendors responding to this RFP shall be notified by mail, e-mail, or FAX when the Department has determined the finalists. The date of the announcement of the finalists shall be the date the announcement is postmarked.

One finalist will be selected as the ASV. The ASV will be the Vendor who: (1) meets all the requirements of this RFP; and (2) receives the highest ranking as described in Section 7: Evaluation Process.

SECTION 4

VENDOR REQUIREMENTS

Respond to the following requirements per the instructions in Section 3.10: Proposal Presentation and Format Requirements.

1 (M) Vendor Profile/Letter of Submittal

Vendor must provide a Letter of Submittal which includes:

• The legal business name;

• Type of business entity, (e.g., corporation, sole proprietorship, limited liability company.);

• The year the entity was organized to do business as the entity now substantially exists;

• Washington State Uniform Business Identification (UBI) number, if registered;

• Proposal Primary Contact address, email address, telephone and FAX numbers;

• A web site URL (if any); and

• An organizational chart of Vendor’s principal officers, including names and titles.

2 (MS) Vendor Organizational Capabilities

Vendor must provide a brief description of its entity (including business locations, size, areas of specialization and expertise, client base and any other pertinent information that would aid an evaluator in formulating a determination about the stability and strength of the entity), including the Vendor organization’s experience and history developing tax systems or accounting systems of similar size and scope to the NGTS.

3 (MS) Project Organization

Vendor must provide a Project Organization overview that describes the Project Team structure and the roles and responsibilities of Project team members.

4 (M) Single Point of Contact

Vendor will act as the Single Point of Contact for the Department with the Vendor’s subcontractors, Product manufacturers, and other relevant third-parties for the Services described in the Request for Proposal (RFP).

5 (MS) Staff Qualifications

1. (MS) Vendor must propose a Project Manager who shall have at least five (5) years experience managing large scale government system integration implementations, and provide a detailed resume that includes the following information, at a minimum:

• Description of education and training;

• Description of previous experience fulfilling the assigned role; and

• Description of previous direct experience with tax and accounting systems and tax business environments.

2. (MS) Vendor must provide at least three (3) recent professional references for the proposed Project Manager. The references must be persons who are familiar with the proposed individual's background and work. The references may be current or past clients of the Vendor or past employers or clients of the person named.

References from entities that are owned by the Vendor, or are owned by an individual or entity who also owns a significant interest in the Vendor, entities in partnership, or engaged in a joint venture with the Vendor, are not acceptable and do not comply with the requirements of this section.

For each reference, provide a detailed description, including:

• Company or agency name;

• Name, telephone number, address, email address and fax number;

• Title and position description;

• Nature of the relationship between reference and proposed project manager (i.e. client, former employer); and

• An overview of work the proposed project manager performed for the reference, project planning responsibilities and time frames [beginning and ending dates] of that work.

The references and other related referrals as appropriate will be contacted during the evaluation of the Proposal and the results of the contacts will be used as part of the evaluation score for this section.

3. (MS) Vendor must propose a Technical Architect who will serve as a central point of contact on all technology issues throughout the development of the NGTS, including but not limited to,

• leadership of software engineering and development;

• database design, development, test, and migration;

• refinement of functional requirements and requirements analysis, design, development, test and deployment of the NGTS;

• coordinate resolution for all technical issues raised during the Project.

The proposed Technical Architect must have at least five (5) years experience in integrating large systems and provide a detailed resume that includes the following information, at a minimum:

• Description of education and training;

• Description of previous experience fulfilling the assigned role; and

• Description of previous direct experience with tax and accounting systems and tax business environments.

4. (MS) Vendor must identify each individual or subcontractor proposed to fill a key role for this engagement and provide a detailed resume that includes the following information, at a minimum, for each person identified:

• Description of education and training;

• Description of previous experience fulfilling their assigned roles; and

• Description of previous direct experience with tax and accounting systems and tax business environments.

Vendor may include any other experience deemed relevant by the Vendor to adequately convey an individual's experience and qualifications.

5. (M) Vendor must certify its intent to commit the proposed key staff to the Project team for a minimum of one (1) year.

6. (M) Vendor must maintain job responsibility statements (e.g., job descriptions, roles and responsibilities) on file for all Project personnel.

7. (M) Vendor must certify its intent to commit the proposed key staff for the Project team to the engagement for a minimum of one (1) year from contract effective date.

8. (M) Vendor must certify that all Project staff and subcontractors will be proficient in written and spoken English.

9. (M) Vendor must certify that all staff assigned to the Project will be located at the Department’s Project facility.

6 (M) Vendor Account Manager

Vendor shall appoint an Account Manager who will provide oversight of Vendor Contract activities under the Contract resulting from this RFP. Vendor’s Account Manager will be the principal point of contact concerning Vendor’s Contract performance.

7 (MS) Client References

Vendor must provide three (3) client references from customers for whom Vendor has implemented systems similar in size and scope to the NGTS. At least one reference must be from a customer for whom Vendor has implemented a tax and accounting system. At least one reference must be for a system implementation on which Vendor was the prime contractor. The most relevant references will be those for which the vendor has provided services similar in type and scope to those requested in this RFP.

For each reference, list:

• Organization Name;

• Contact name and title;

• Telephone and FAX numbers;

• E-mail address;

• A brief description of the work done for the referenced client;

• Start and end dates; and dollar amount of project; and

• Number and type of professional staff the Vendor assigned to the project.

References must not be from a person, company or organization with any special interest, financial or otherwise, in the Vendor.

The Department will contact the references and reserves the right to contact other customers or organizations who may have pertinent information regarding the qualifications and experience to perform the services required by this RFP.

The Department reserves the right to eliminate from further consideration in this RFP process any Vendor who, in the opinion of the Department, receives an unfavorable report from a Vendor provided reference or any other customer references of the Vendor.

8 (M) Reporting

1. (M) The Vendor will attend biweekly status meetings with the NGTS Sponsors.

2. (M) The Vendor will make in person reports on the progress of the Project to the Bi-weekly NGTS Steering Committee meetings and on other occasions.

9 (M) Intellectual Property

Except as expressly provided in the Contract resulting from this RFP, Vendor agrees that all Software and documents that are developed as a part the Project will become the property of the State of Washington, Employment Security Department.

10 (M) Financial Rating

Vendor must provide a copy of a Dun and Bradstreet business/credit report of the Vendor’s financial status. The report must bear a date not more than sixty (60) days prior to the submittal date of the proposal. Vendor must have a “good” or better financial strength rating.

11 (M) Vendor Licensed to do Business in Washington

Within thirty (30) days of being identified as the ASV, Vendor must be licensed to conduct business in Washington, including registering with the Washington State Department of Revenue, Department of Labor and Industries (Worker’s Compensation), and the Employment Security Department (Unemployment Insurance). The Vendor must collect and report all applicable taxes.

12 (M) Use of Subcontractors

The Department will accept Proposals that include third party involvement only if the Vendor submitting the Proposal agrees to take complete responsibility for all actions of such Subcontractors. Vendors must state whether Subcontractors are/are not being used, and if they are being used, Vendor must list them in response to this Section. Any Subcontractors engaged after award of the Contract must be pre-approved, in writing, by the Department.

Specific restrictions apply to contracting with current or former state employees pursuant to Chapter 42.52 RCW. Vendors should familiarize themselves with the requirements prior to submitting a Proposal.

13 (M) Prior Contract Performance

1. Vendor must submit full details of all Contracts with the State of Washington within the last eight (8) years, including the other party’s name, address, email address and telephone number.

2. Vendor must submit a brief description of any significant pending legal and administrative proceedings in any jurisdiction in which Vendor, its officers, directors, employees or principals or any of its subsidiaries or parent(s), their officers, directors, employees or principals is a party or of which any of their property is subject. Include the name of the court or agency in which the proceedings are pending, the date instituted, and the principal parties thereto, and a description of the factual basis alleged to underlie the proceedings. Notwithstanding the foregoing, Vendor shall submit information concerning any claim or allegation which brings into question Vendor’s performance or failure to perform.

3. Vendor must submit a brief description of any occasion in which Vendor, any officer or principal of Vendor with a proprietary interest therein, has ever been disqualified, removed or otherwise prevented from bidding on, participating in, or completing a federal, state or local governmental project because of a violation of law or a safety regulation.

4. Vendor must submit a brief description of any occasion in which Vendor has been in a position of default on a project, such that payment proceedings and/or execution on a letter of credit, payment, performance or bid bond have been undertaken.

5. Vendor must submit a list of all material threatened and/or pending claims, litigation and judgments or settlements, government enforcement actions.

6. Vendor must submit identify whether the Vendor or any of its officers refused to testify or waive immunity before any state of the federal grand jury relating to any public project within the last ten years. If so, provide details.

7. If multiple organizations are participating (e.g., subsidiaries, parent companies, joint ventures and/or subcontractors), the information requested herein must be provided regarding each of the respective organizations.

The Department will evaluate the information and may, at its sole discretion, reject the Proposal if the information indicates that completion of a Contract resulting from this RFP may be jeopardized by selection of the Vendor.

14 (M) Letter of Credit

Vendor agrees to provide an Irrevocable Letter of Credit, naming ESD as the beneficiary, in a form and format acceptable to ESD in the amount of $2.5 Million Dollars. Irrevocable Letter of Credit (the “ILC”) means a written commitment by a federally insured financial institution to pay all or part of a stated amount of money, until the expiration date of the letter, upon presentation by ESD (the “Beneficiary”) of a written demand therefore. Neither the financial institution nor the Vendor may revoke or condition the Letter of Credit.

The ILC must have an initial expiration date dated after the end of the Warranty Period. The ILC shall provide that, unless the issuer provides the beneficiary written notice of non-renewal at least sixty (60) days in advance of the current expiration date, the ILC is automatically extended without amendment for one year from the expiration date, or any future expiration date, until the period of required coverage is completed and the Contracting Officer provides the financial institution with a written statement waiving the right to payment.

15 (M) Insurance

1. Vendor shall, during the term of this Contract, maintain in full force and effect, the insurance described in this section. Vendor shall acquire such insurance from an insurance carrier or carriers licensed to conduct business in the state of Washington and having a rating of A-, Class VII or better, in the most recently published edition of Best’s Reports. In the event of cancellation, non-renewal, revocation or other termination of any insurance coverage required by this Contract, Vendor shall provide written notice of such to Purchaser within one (1) Business Day of Vendor’s receipt of such notice. Failure to buy and maintain the required insurance may, at Purchaser’s sole option, result in this Contract’s termination.

2. The minimum acceptable limits shall be as indicated below, with no deductible for each of the following categories:

a. Commercial General Liability covering the risks of bodily injury (including death), property damage and personal injury, including coverage for contractual liability, with a limit of not less than $1 million per occurrence/$2 million general aggregate;

b. Business Automobile Liability (owned, hired, or non-owned) covering the risks of bodily injury (including death) and property damage, including coverage for contractual liability, with a limit of not less than $1 million per accident;

c. Employers Liability insurance covering the risks of Vendor’s employees’ bodily injury by accident or disease with limits of not less than $1 million per accident for bodily injury by accident and $1 million per employee for bodily injury by disease;

d. Umbrella policy providing excess limits over the primary policies in an amount not less than $3 million;

e. Professional Liability Errors and Omissions, subject to Section 4.16, and coverage of $4 million per occurrence/$8 million general aggregate; and

f. Crime Coverage, subject to Section 4.16 and coverage of $5 million single limit per occurrence and $10 million in the aggregate, which shall at a minimum cover occurrences falling in the following categories: Computer and Funds Transfer Fraud; Forgery; Money and Securities; and Employee Dishonesty.

16 (M) Extended Coverage

For Professional Liability Errors and Omissions and Crime Coverage under Section 4.15, Vendor shall continue such coverage for one (1) year beyond the expiration or termination of any Contract resulting from this RFP and shall provide ESD with certificates of insurance on an annual basis.

17 (M) Worker’s Compensation Coverage

Prior to providing Services under this Contract, Vendor shall, in full compliance with State law, provide or purchase worker’s compensation coverage for its employees and Employer’s Liability in the amount of $1 million during the course of the Project. ESD will not be responsible for payment of premiums or for any other claim or benefit for Vendor, or any Subcontractor or employee of Vendor, which might arise under applicable laws during the performance of duties and Services under the resulting Contract. However, should Vendor fail to secure insurance coverage or fail to pay premiums on behalf of its employees, ESD may deduct the amount of premiums owing from the amounts payable to Vendor under the resulting Contract and transmit the same to the responsible State agency.

SECTION 5

NGTS System Requirements

Respond to the following requirements per the instructions in Section 3.10: Proposal Presentation and Format Requirements.

1 (M) Risk Management

Risk Management will be the primary responsibility of the Quality Assurance Contractor. Nevertheless, Vendor will be expected to identify and manage risks within its Project Management responsibilities, including

a) Identification of risk areas;

b) Means for classifying criticality and probability of occurrence;

c) Potential contingency measures; and

d) Triggers to initiate contingency measures.

Vendor must agree to cooperate and work with ESD’s Quality Assurance (“QA”) and Independent Validation and Verification (“IV&V”) contractors in their efforts to provide independent assessment of Vendor’s compliance with the Contract resulting from this RFP. Such cooperation includes agreement to cooperate with and make internal records, personnel, Project control systems and other support information available on a reasonable basis as requested by the Department or the QA and IV&V contractors.

2 (M) Project Management Requirements

Vendors will describe how they will implement an NGTS solution in response to the Project Management Requirements. These requirements are found in Appendix B: Project Management Requirements to this RFP. Vendors must respond to all requirements.

3 (M) NGTS Business/Functional Requirements

The Business and Functional Requirements describe the operation of the NGTS from a business perspective. These requirements are supported by Use Cases and Business Rules found in the Vendor Reference Library. These requirements are found in Appendix C: Business Functional Requirements to this RFP. Vendors must respond to all requirements.

4 (M) Technology Requirements

The Technology Requirements describe the capacity, performance, security, interfaces and processes of the NGTS. These requirements are found in Appendix D: Technology Requirements to this RFP. Vendors must respond to all requirements.

5 (MS) Equipment and Software

Vendors will identify all Equipment and Software (not including the mainframe database) necessary to support the NGTS application (Appendix B, requirement PM006 - Deliverable 3.0 Equipment Procurement). Include specifications for the Equipment and Software (model numbers, versions and releases). The Department may choose to purchase the equipment from the Vendor or from a Department of Information Services Master Contract—whichever is more advantageous. Note: Pricing for Equipment and Software are to be included in Section 6: Financial Proposal.

6 (M) Acceptance Testing

Software Deliverables will be accepted based on Acceptance Testing. Each of the four stages will be subject to Acceptance Testing upon delivery from the contracted Vendor, specifically as follows:

• Stage 1: Database Deliverable Acceptance Testing – the Department staff will test conversion routines to ensure that data from the legacy systems is properly arrayed in the NGTS.

• Stage 2: Tax Application Acceptance Testing – the Department staff will test the Tax Application and the interfaces to the legacy systems to assure operational stability and quality before implementation. Acceptance Testing will end and implementation of this stage will occur when all non-cosmetic deficiencies have been resolved.

• Stage 3: Wage Application and Database Acceptance Testing – the Department staff will test the Wage Application to assure operational stability and quality before implementation. Acceptance Testing will end and implementation of this stage will occur when all non-cosmetic deficiencies have been resolved. The temporary interface to the legacy WAGE system will be discontinued.

• Stage 4: Employer Application Deliverable Acceptance Testing – the Department staff will test the Employer Application to assure operational stability and quality before implementation. Acceptance testing will end and implementation of this stage will occur when all deficiencies have been resolved.

Acceptance testing for all Stages of the system will be accompanied by performance and capacity testing to meet the Technology Requirements found in Appendix D.

7 (M) Warranty

Vendor agrees that the Warranty period will begin when the entire NGTS is operating without deficiency (Appendix B, requirement PM006 - after the implementation of Deliverable 5.4 Stage 4: Employer Application Deliverable); i.e., the Warranty period will begin when:

• All Deliverables that are documents have been accepted by the Department;

• All Deliverables that are products (e.g., software deliverables) have been accepted without deficiency.

The Warranty Period will be scheduled for at least six (6) months or until all processes have run successfully in a production mode. During that period, the Vendor will be responsible for the Warranty Services as described in Section 5.7.

8 (M) Warranty Period Service Levels

During the Warranty Period, the Contractor will respond to System Deficiencies in accordance with the indices defined in Table 1: Severity Level One Deficiencies, Table 2: Severity Level Two Deficiencies, Table 3: Severity Level Three Deficiencies, and Table 4: Severity Level Four Deficiencies. Severity will be defined at the sole discretion of the Department.

1. In Severity Level One there is a complete or severe loss of System use in at least one business critical area. The impact is that UI business operations cannot reasonably continue or can continue only in a restricted fashion, and services to customers is disrupted.

Table 1: Severity Level One Deficiencies

|Response to Severity Level One Deficiencies |Maximum Allowable Response|

| |Time |

|Deficiency Reported and Ticket Issued: |Initial call |

|Ticket issued to the Contractor either by notification from the Department, and upon receipt of | |

|automated alarm/error notification at Contractor’s Operations Center. The Clock starts with initial | |

|call. | |

|Remote Diagnostics Initiated: |15 minutes |

|Qualified technician assigned for remote diagnosis. Contact initiated to the Department to advise on | |

|status. | |

|Onsite Response: |2 clock hours |

|If Deficiency is not resolved remotely, technician arrives at the Department designated site(s) and |from initial call/contact |

|informs the Department onsite staff and the Contractor Project Manager of their arrival. | |

|Resolution Plan Determined: |4 clock hours |

|Diagnosis, resolution plan, and estimated fix time given. Contractor initiates conference call with |from initial call/contact |

|the Department Project Director designee on an hourly basis. | |

|Component and/or Technical Augmentation: |6 clock hours |

|Required component(s) shipped in most expedient way and/or additional technical support called in. |from initial call/contact |

|Contractor initiates conference call. The Project Director is informed hourly of status. | |

|Deficiency Resolved: |8 clock hours |

|If the Deficiency is not resolved within 8 hours of initial call, the Department reserves the right |from initial call/contact |

|to invoke the remedies for failure to meet guaranteed response times. Contractor initiates conference| |

|call(s) per mutual agreement with the Department. The Project Director is informed hourly of status. | |

2. In Severity Level Two, there is a minor loss of System use. The impact is an inconvenience and business critical areas are not significantly impaired. The UI business operations continue with minimal disruption to customers. A workaround acceptable to the Department may be employed temporarily to restore use of the System and/or business operations.

Table 2: Severity Level Two Deficiencies

|Response to Severity Level Two Deficiencies |Maximum Allowable Response|

| |Time |

|Deficiency Reported and Ticket Issued: |Initial call/contact |

|Ticket issued to the Contractor either by notification from the Department, or upon receipt of | |

|automated alarm/error notification at Contractor’s Operations Center. | |

|Technician Assigned: |2 business hours |

|Qualified technician assigned for remote diagnosis. Contact initiated to the Department to advise on |from initial call/contact |

|status. | |

|Onsite Response: |8 business hours |

|If Deficiency is not resolved remotely, technician arrives at the Department designated site(s) and |from initial call/contact |

|informs the Department onsite staff and the Department Contractor Project Manager of their arrival. | |

|Resolution Plan Determined: |16 business hours |

|Diagnosis, resolution plan, and estimated fix time given. Contractor initiates conference call with |from initial call/contact |

|the Department Project Director or designee each business day. | |

|Component and/or Technical Augmentation: |32 business hours from |

|Required component(s) shipped in most expedient way and/or additional technical support called in. |initial call/contact |

|Contractor initiates conference call with the Department each day on status. | |

|Deficiency Resolved: |40 business hours from |

|If the Deficiency is not resolved within 5 business days of initial call the Department reserves the |initial call/contact |

|right to invoke the remedies for failure to meet guaranteed response times. Contractor initiates | |

|conference call(s) per mutual agreement with the Department. The Project Director is informed each | |

|Business Day of status. | |

3. In Severity Level Three, there is a deviation from the Specifications that causes no loss of System use. This may be a Cosmetic Deficiency, minor Deficiency, incorrect behavior, or a documentation error that does not impede the operation of a system or effect UI business operations. Customers are not impacted.

Table 3: Severity Level Three Deficiencies

|Response to Severity Level Three Deficiencies |Maximum Allowable Response|

| |Time |

|Deficiency Reported and Ticket Issued: |Initial call/contact |

|Ticket issued by Contractor either by notification from the Department, or upon receipt of automated | |

|alarm/error notification at Contractor’s operations center. | |

|Staff Assigned: |8 business hours |

|Qualified technician for action assigned. Contact initiated to the Department to advise regarding |from initial call/contact |

|status. | |

|Contractor Contacts the Project Director: |16 business hours from |

|Call made to Project Director to advise regarding status. |initial call/contact |

|Resolution Plan Determined: |36 business hours from |

|Diagnosis, resolution plan, and estimated fix time given. The Department Contractor Project Manager |initial call/contact |

|informed of status. | |

|Deficiency Resolved: |80 business hours from |

|If the Deficiency is not resolved within 10 days of initial call, the Department reserves the right |initial call/contact |

|to request a Contractor initiated conference call. Work shall be continuous without interruption | |

|until Deficiency is resolved. The Project Director will be informed each Business Day of status. | |

SECTION 6

Financial Proposal

Respond to the following requirements per the instructions in Section 3.10: Proposal Presentation and Format Requirements.

1 (M) General Provisions

The Contract resulting from this acquisition will be a fixed-price, deliverable-based Contract. In the Financial Proposal, Vendors will provide information regarding the deliverables, staff hours per deliverable, the delivery dates, and the cost of deliverables.

The Department will pay for deliverables on the following basis:

• 45 percent of the agreed, fixed price will be paid upon delivery;

• 45 percent of the agreed, fixed price will be paid upon acceptance; and

• 10 percent of the agreed, fixed price will be paid at Turnover of the system at the end of the Warranty period.

Vendors must submit their proposals in the same format as provided in Appendix K: Price Cost Calculations. This document may be configured as a Microsoft Excel spreadsheet or Word document, but must follow the same formating and sequence. Vendor may propose alternative Deliverable, pricing, and payment approaches. At its discretion, the Department may choose to evaluate these alternatives.

2 (M) Financial Proposal Requirements

The Department requires the following of the Financial Proposal:

• All Vendor costs (e.g., technical staff, management staff, overhead) are to be included in the price of the deliverables.

• The deliverables and staff hours must be the same as those in the Work Plan(s) for technical and management activities.

• The proposal must be free from mathematical error. (Minor rounding errors are not considered mathematical errors.)

• The proposal must include all costs as described in this section.

• The Financial Proposal must be accompanied by a copy of the Work Plan(s).

3 (MS) Financial Requirements NGTS Completion

All payments under the contract, except maintenance services, if that option is exercised, will be for the delivery of tangible, completed products. The minimum work products are the NGTS deliverables identified in Appendix C: Project Management Requirements.

Management costs will be included as “overhead” to the technical cost of completing the NGTS deliverables. All other costs to the Contractor, e.g., travel and living expenses/per diem, shall also be included as overhead to the technical cost of completing NGTS deliverables, and will not be separately reimbursed.

To respond to the Financial Requirements set forth in this section, Vendor must utilize the Excel spreadsheets contained in Appendix K: Price Cost Calculation.

6.3.1 Vendor Pricing

Vendors must submit Appendix K: Price Cost Calculation (Fixed Price Deliverables), which shows:

• Each deliverable for which a payment invoice will be submitted;

• The proposed date that delivery is scheduled to occur; and

• The proposed price of the deliverable.

6.3.2 Software and Equipment Costs

The Vendor must list all Software and Equipment necessary, and all associated costs to operate the Project. Equipment will include all servers, switches, racks, or any other equipment that will be used in the production system. Software must include software used to support ongoing development, maintenance, and production activity by ESD—initial costs and five-year maintenance/licensing costs. Vendors must submit Appendix K: Price Cost Calculation (Software and Equipment).

6.3.3 Total Cost of Project

The total cost of the Project is a summation of the above calculations. Vendors must submit Appendix K: Price Calculations.

Vendors must supply supporting documentation for the deliverables and total Project cost.

4 (MS) Optional Tasks

This RFP includes optional tasks for which the Department may choose to contract.

Proposals must include:

• Hourly rates for Pre-Implementation modifications (at multiple rates depending on the type of developer);

• Hourly rates for Post-Implementation modifications; and

• Hourly rates and projected hours for post-Warranty Period Maintenance activity to maintain the NGTS at the levels indicated in Section 5.9 Warranty Period Service Levels.

Hourly rates should include all Vendor activity, including management, for each activity.

SECTION 7

EVALUATION PROCESS

1 Overview

The solicitation and selection process will be staged:

• Vendors will submit Proposals in response to the requirements listed in this Request for Proposal.

• Mandatory Requirements (M) will be screened for completeness. Proposals that fail to meet any Mandatory Requirements will be eliminated from further consideration.

• Mandatory Scored Requirements (MS) will be scored.

• The Vendors receiving the highest scores will be invited to present their solutions for the NGTS and demonstrate their capabilities to meet the Department’s NGTS needs.

• An Apparently Successful Vendor (ASV) will be selected from among the finalists making presentations.

• The Department will negotiate a contract with the ASV.

2 Administrative Screening

Proposals will be reviewed initially by the RFP Coordinator to determine on a pass/fail basis compliance with administrative requirements as specified in Section 3: Administrative Requirements. Evaluation teams will only evaluate Proposals meeting all administrative requirements.

3 Mandatory Requirements

Proposals meeting all of the administrative requirements will be reviewed on a pass/fail basis to determine if the Proposal meets the Mandatory requirements (Sections 4: Vendor Requirements; Section 5: NGTS Requirements; and Section 6: Financial Proposal). Only Proposals meeting all Mandatory requirements will be further evaluated.

The Department reserves the right to determine at its sole discretion whether Vendor’s response to Mandatory requirement is sufficient to pass. If, however, all responding Vendors fail to meet any single Mandatory item, the Department reserves the following options: (1) cancel the procurement, or (2) revise or delete the Mandatory item.

4 Qualitative Review and Scoring

Only Proposals that pass the administrative screening and Mandatory requirements review will be evaluated and scored based on responses to the scored requirements in the RFP. Proposals receiving a “0” on any Mandatory Scored (MS) element(s) will be disqualified.

7.4.1 Vendor References

The Vendor Client References will be worth 200 points or 20 percent of the total points awarded in the scoring of the proposals. The Department will contact each reference by phone and score the references using a format similar to Appendix J. The Department reserves the right to check into additional references.

The RFP Coordinator will assign scores for each set of Vendor references based on the following:

• The Vendor receiving the highest number of points will receive a score of 200.

• Other Vendors will receive a score based on the following formula:

Vendor Score = (Vendor Points ÷ Highest Vendor Points) X 200

7.4.2 Administrative and Project Management Mandatory Scored Requirements (MS) Evaluation

Mandatory Scored Requirements[1] will be worth 600 points or 60 percent of the total points awarded in the scoring of the proposals. Vendors will be evaluated on each Mandatory Scored Requirement in previous sections of this document and in Appendix B: Project Management Requirements. Evaluators will assign points to each Mandatory Scored requirement based on the effectiveness and completeness of the Proposal to each technical requirement.

Total points will be summed for the Technical Requirements. The RFP Coordinator will assign scores for Technical and Administrative Requirements based on the following:

• The Vendor receiving the highest number of points will receive a score of 600.

• Other Vendors will receive a score based on the following formula:

Vendor Score = (Vendor Points ÷ Highest Vendor Points) X 600

A score of zero by all evaluators on any Mandatory Scored Requirement will result in the Proposal being disqualified.

7.4.3 Financial Proposal Evaluation

The Financial Proposal will be worth 200 points or 20 percent of the total points awarded in the scoring of the proposals. The proposal will be evaluated based on Vendor’s realistic pricing approach.

Vendor Price:

The Financial Evaluation Team will score the Vendor’s price for fixed-price deliverables, where:

• The Vendor submitting the lowest Total Cost of Project will receive a score of 200.

• Other Vendors will receive a score based on the following formula:

Vendor Score = (Lowest Vendor Price ÷ Vendor Price) X 200

5 Vendor Total Score

The Vendor Total Score will be calculated as follows:

|Evaluation Category |Score |

|Vendor References | |

|Technical and Administrative Requirements | |

|Financial Proposal | |

|Total Score | |

6 Oral Presentations, Section of Apparently Successful Vendor

The Department, after evaluating the written proposals, will schedule oral presentations of the top Three (3) scoring finalists. The RFP Coordinator will notify finalists of the date, time and location of the oral presentations. The dates in Section 2: Schedule are subject to change at the discretion of the Department.

The Vendors making oral presentations will be grouped into an unranked pool of 3 finalists. After the oral presentations, vendors will be ranked based on the overall quality of their proposals. The Department will name the highest ranked Vendor following these presentations.

7 Contracting Process

The Department will enter into contract negotiations with the ASV. An ASV will be expected to execute the Contract within ten (10) Business Days of its receipt of a final Contract from ESD. If a selected Vendor fails to sign the Contract within the allotted ten (10) day time frame, ESD may declare negotiations at an impasse, elect to cancel the award, and award the Contract to the next ranked Vendor, or cancel or reissue this solicitation (see Subsection 3.18, Right to Cancel). Vendor’s submission of a Proposal to this solicitation constitutes acceptance of these contract requirements. This process will continue until a Contract is signed, no qualified Vendors remain, or the Department elects to cancel or reissue the solicitation.

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[1] The Mandatory Scored Requirements and their relative scores are included as Appendix L: Mandatory Scored Requirements: Scoring Matrix.

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