special audit rfp draft (2) 043010

8/9/2019 Special Audit RFP Draft (2) 043010

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STATE OF NORTH DAKOTA

Office of Management and BudgetState Procurement Office600 East Boulevard AvenueBismarck, ND 58505-0310

Request for Proposal (RFP)

RFP Title:

Special Purpose Audit for Retirement & Investment Office

RFP Number: 110.7-10-027

Date of Issue: April 30, 2010

Purpose of RFP:

The State of North Dakotas State Investment Board (SIB), through its audit committee, seeks a qualifiedindependent contractor with audit expertise in investments and investigation to provide specializedassurance services relating to the North Dakota Retirement & Investment Office (RIO) to verify the assets

and controls of the program due to a change in management.

Offerors are not required to return this form.

Procurement Officer: Todd Ternes 701-328-3494

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TABLE OF CONTENTS

SECTION ONEIntroduction and Instructions1.01 Purpose of the RFP1.02 Contact Person, Telephone, Fax and E-mail1.03 RFP Schedule1.04 Return Mailing Address and Deadline for Receipt of Proposals1.05 Assistance to Offerors with a Disability1.06 Deadline for Receipt of Questions and Objections1.07 Approved Vendor Registration Requirements1.08 Notice of Solicitation and Amendments to the RFP1.09 News Releases

SECTION TWOBackground Information2.01 Background Information2.02 Previous Audit

2.03 State Laws and Rules

SECTION THREEScope of Work3.01 Scope of Work3.02 Experience and Qualifications

SECTION FOURGeneral Contract Information4.01 Contract Term, Extension and Renewal Options4.02 Contract Type4.03 Standard Contract Provisions4.04 Proposal as a Part of the Contract

4.05 Additional Terms and Conditions4.06 Supplemental Terms and Conditions4.07 Contract Approval4.08 Contract Changes Unanticipated Amendments4.09 Indemnification and Insurance Requirements4.10 Taxes and Taxpayer Identification4.11 Proposed Payment Procedures4.12 Contract Funding4.13 Payment Terms4.14 Contract Personnel4.15 Inspection & Modification - Reimbursement for Unacceptable Deliverables4.16 Termination for Default4.17 Confidentiality

4.18 Work Product, Equipment, and Material4.19 Independent Entity4.20 Assignment4.21 Disputes-Applicable Law and Venue


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SECTION FIVEEvaluation Criteria and Contractor Selection5.01 Special Purpose Audit Work Plan5.02 Experience and Qualifications5.03 Contract Cost5.04 Applying Preference Laws

SECTION SIXProposal Format and Content6.01 Proposal Format and Content6.02 Introduction6.03 Special Purpose Audit Work Plan6.04 Experience and Qualifications6.05 Cost Proposal6.06 Supplemental Terms

SECTION SEVENStandard Proposal Information7.01 Authorized Signature7.02 State Not Responsible for Preparation Costs

7.03 Conflict of Interest7.04 Offerors Certification7.05 Offer Held Firm7.06 Amendments to Proposals and Withdrawal of Proposals7.07 Alternate Proposals7.08 Subcontractors7.09 Joint Ventures7.10 Disclosure of Proposal Contents and Compliance with North Dakota Open Records Laws7.11 Evaluation of Proposal7.12 Right of Rejection7.13 Clarification of Offers7.14 Discussion and Best and Final Offers7.15 Contract Negotiation

7.16 Failure to Negotiate7.17 Notice of Intent to Award-Offeror Notification of Selection7.18 Protest and Appeal

SECTION EIGHTAttachments8.01 Attachment A-Offeror Checklist8.02 Attachment B-Sample Service Contract

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SECTION ONEINTRODUCTION AND INSTRUCTIONS

1.01 Purpose of the RFPThe State of North Dakotas State Investment Board (SIB), through its audit committee, hereafter knownas State, seeks a qualified independent contractor with audit expertise in investments and investigationto provide specialized audit services relating to the North Dakota Retirement & Investment Office (RIO), toverify the assets and controls of the program due to a change in management.

1.02 Contact Person, Telephone, Fax, E-mailThe procurement officer is the point of contact for the RFP. Vendors must direct all communicationsregarding this RFP to the procurement officer. Unauthorized communications with any state employee orofficials other than the procurement officer is grounds for disqualification and suspension or disbarmentfrom the state bidders list.

PROCUREMENT OFFICER: Todd TernesPHONE: 701-328-3494FAX: 701-328-1615TTY Users call: 7-1-1E-MAIL: [email protected]

1.03 RFP ScheduleThis schedule of events represents the States best estimate of the schedule that will be followed for thisRFP.

The approximate RFP schedule is as follows (all times CT):

RFP Issued: April 30 , 2010

Deadline for receipt of questions and objections related to the RFP:2:00 p.m., May 6, 2010

Responses to questions and any RFP amendments issued approximately: May 10, 2010

Proposals due by: 2:00 p.m., May 14, 2010

Proposal Evaluation Committee evaluation completed by approximately : May 18, 2010

State issues Notice of Intent to Award a Contract approximately: May 18, 2010

State issues contract approximately: May 25, 2010

Contract start date: May 25, 2010

1.04 Return Mailing Address and Deadline for Receipt of ProposalsOfferor must submit proposals by means of email by proposal due date and time specified in the RFPschedule.

Proposals must be sent [email protected].

Offerors are encouraged to confirm receipt of delivery with the procurement officer.

The State of North Dakota (State) assumes no responsibility for delays caused by any delivery service.Postmarking by the due date will not substitute for actual proposal receipt by the State. An offerorsfailure to submit its proposal prior to the deadline will cause the proposal to be rejected. Late proposalsor amendments will not be opened or accepted for evaluation.

1.05 Assistance to Offerors with a DisabilityOfferors with a disability that need an accommodation should contact the procurement officer prior to thedeadline for receipt of proposals so that reasonable accommodation can be made.
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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1.06 Deadline for Receipt of Questions and ObjectionsOfferors must carefully review this solicitation, the contract, risk management provisions, and allattachments for defects, questionable, or objectionable material. All questions must be in writing anddirected to the purchasing agency, addressed to the procurement officer, and cite the subject RFPnumber. The procurement officer must receive these written requests by the deadline specified in theRFP Schedule to allow issuance of any necessary amendments.

This will also help prevent the opening of a defective solicitation and exposure of offeror's proposals uponwhich an award could not be made. Protests based on the content of the solicitation will be disallowed ifthese faults have not been brought to the attention of the procurement officer, in writing, before the timeindicated in the RFP Schedule.

If the question may be answered by directing the questioner to a specific section of the RFP, then theprocurement officer may answer the question over the telephone. Other questions may be more complexand may require a written amendment to the RFP. The procurement officer will make this determination.Oral communication is considered unofficial and non-binding on the State. The offeror must confirmtelephone conversations in writing.

1.07 Approved Vendor Registration Requirements - VENDORS MUST BE APPROVED BEFORECONTRACT AWARD

Proposals will be accepted from vendors that are not currently approved vendors on the States BiddersList; however, the successful offeror will be required to become approved prior to contract award.

To become an approved bidder, offerors must: 1) be registered with the North Dakota Secretary of State(fees apply), and 2) submit a completed Bidders List Application to the Vendor Registry Office.Prospective offerors may access the Bidders List on-line to verify whether their firm is currently on thebidders list.

The Bidders List, registration instructions and forms are available on-line at:http://www.nd.gov/spo/vendor/registry/ . Contact the Vendor Registry Office at 701-328-2773 [email protected] assistance.

The successful offeror must register and become approved within 14 calendars days from the date of the

Notice of Intent to Award. If an offeror fails to become approved by the time specified by the ProcurementOfficer, as may be extended, its proposal will be determined to be non-responsive, and its proposal will berejected.

1.08 Notice of Solicitation and Amendments to the RFPOfferors may request to be added to the bidders list for this solicitation by providing contact information tothe procurement officer. The solicitation and any amendments to the solicitation will be posted to theNorth Dakota State Procurement Bidder Services website: http://www.nd.gov/spo/

1.09 News ReleasesNews releases related to this RFP will not be made without prior approval of the procurement officer orproject manager designated by the State.

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http://www.nd.gov/spo/vendor/registry/http://www.nd.gov/spo/vendor/registry/mailto:[email protected]:[email protected]://www.nd.gov/spo/http://www.nd.gov/spo/vendor/registry/mailto:[email protected]://www.nd.gov/spo/


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SECTION TWOBACKGROUND INFORMATION

2.01 Background InformationThe North Dakota Retirement and Investment Office (RIO) was established in 1989 to coordinate theactivities of the State Investment Board (SIB) and the Teachers' Fund for Retirement (TFFR) as stated inSection 54-52.5-01 of the North Dakota Century Code.

The mission of RIO includes:

SIB clients receive cost effective investment services directed at meeting their written financialgoals under the Prudent Investor Rule.

SIB clients receive investment returns consistent with their written investment policies and marketvariables.

Potential SIB clients have access to information regarding the investment services provided bythe SIB.

TFFR benefit recipients receive their retirement benefits in a cost effective and timely manner.

TFFR members have access to information which will allow them to become knowledgeableabout issues and the process of retirement.

SIB clients and TFFR benefit recipients receive satisfactory services from the boards and staff ofthe office.

The CEO/CIO positions have been combined into one position since 1999. The CEO/CIO has oversightresponsibility of sixteen (16) full-time employees.

This position is currently vacant. The SIB is currently seeking an interim CEO/CIO to provide oversight toRIO while an executive search is conducted to find a candidate to fill this position.

This special purpose audit is being conducted to verify the assets and controls of the program due to achange in management.

2.02 Previous AuditThe most recent Financial Statement Audit of the North Dakota Retirement and Investment Office for theFiscal Year 2009 can be obtained from the following website:

http://www.nd.gov/rio/SIB/Publications/CAFR/2009AnnualReport.pdf

2.03 State Laws and RulesN.D.C.C. Chapter 21-10 State Investment Board (SIB)N.D.C.C. Chapter 54-52.5State Retirement and Investment OfficeN.D.A.C.102-01 State Investment BoardN.D.A.C. 103-1 State Retirement and Investment Office
http://www.nd.gov/rio/SIB/default.htmhttp://www.nd.gov/rio/TFFR/default.htmhttp://www.legis.nd.gov/cencode/T54C525.pdfhttp://www.legis.nd.gov/cencode/T54C525.pdfhttp://www.nd.gov/rio/SIB/Publications/CAFR/2009AnnualReport.pdfhttp://www.legis.nd.gov/cencode/t21c10.pdfhttp://www.legis.nd.gov/cencode/t54c525.pdfhttp://www.legis.nd.gov/information/acdata/html/Title102.htmlhttp://www.legis.nd.gov/information/acdata/html/Title103.htmlhttp://www.nd.gov/rio/SIB/default.htmhttp://www.nd.gov/rio/TFFR/default.htmhttp://www.legis.nd.gov/cencode/T54C525.pdfhttp://www.nd.gov/rio/SIB/Publications/CAFR/2009AnnualReport.pdfhttp://www.legis.nd.gov/cencode/t21c10.pdfhttp://www.legis.nd.gov/cencode/t54c525.pdfhttp://www.legis.nd.gov/information/acdata/html/Title102.htmlhttp://www.legis.nd.gov/information/acdata/html/Title103.html


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SECTION THREESCOPE OF WORK

3.01 Scope of WorkThe State of North Dakotas State Investment Board (SIB), through its audit committee, seeks a qualifiedindependent contractor with audit expertise in investments and investigation to provide specializedassurance services relating to the North Dakota Retirement & Investment Office (RIO) to verify the assetsand controls of the program due to a change in management.

Definitions: Special purpose audit means to examine specifically those areas that could be affected bymanagement or that could affect fund stability.

Initial scope of investigation: July 1, 2009 through April 30, 2010

Scope: The Contractor shall perform such research and investigative procedures using whateverresources are required to accomplish the purpose of this RFP, including:

Verify the assets and controls of the program

Determine scope of CEO/CIOs sphere of influence and access to the books and records of RIO

Identify areas of exclusive fund/transaction access and activities Identify and quantify any irregular financial activity or discrepancies within past management or

the investment funds

Examine electronic information emails, documentation, and hard drives, as determinednecessary

Location of Work: The Contractor shall determine the extent of on-site work required to fulfill statedrequirements and may perform composition of reports or other administrative tasks at Contractors placeof business.

State-Furnished Property/Services: The State will provide access to office personnel, documents anddata as required by the Contractor. While the Contractor is conducting on-site work in Bismarck, the Statewill provide the Contractor with a reasonable amount of office space. The State will also provide the

Contractor with access to copy and fax machines.

Contractor-Furnished Property: The Contractor must furnish all labor, equipment, specialized softwareand supplies to accomplish the work.

Deliverables: The Contractor will be required to provide the following deliverables:

a) Entrance conference call with the State project manager.

b) Entrance conference with the State Investment Board/Audit Committee. The dateand time of the on-site presentation will be coordinated between the Contractor andthe SIB, in conjunction with the on-site field work.

c) Conduct the special purpose audit in accordance with the contract establishedbetween the Contractor and the SIB, to include on-site work in Bismarck, ND.

d) Report any findings to SIB Audit Committee as soon as possible.

e) Progress reports consisting of preliminary findings must be made available to theSIB Audit Committee by June 25th (or earlier, if possible). Any extensions of thisdeadline must be approved by the SIB Audit Committee.

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f) The Contractor must provide the State with fifteen copies of the final, written report no laterthan July 14th, 2010. The final report must include the following:

1) Describe investigative scope and techniques used to complete the scope of work.

2) Report findings, based on the results of agreed upon procedures for the completionof the engagement.

3) Recommendations for corrective action, if any.

(g) On-site presentation of report may be required by SIB or SIB Audit Committee in Bismarck,ND in July 2010. The actual date and time of the on-site presentation will be negotiatedbetween the Contractor and SIB.

Additional Work: During the course of the contract performance, the scope of the special purpose auditmay be further expanded or altered at the recommendation of the Contractor, within the scope of work, bywritten approval by the SIB Audit Committee and/or full SIB, through an amendment to the contract.

3.02 Experience and QualificationsAn offerors failure to meet mandatory qualifications will cause its proposal to be considered non-

responsive and its proposal will be rejected.

All interviewers should be trained in interviewing for research purposes to allow for the ability to solicithonest, accurate data from survey participants.

Mandatory Requirements:

Contractor and any individuals that will perform work on the project, including anysubcontractors, must be completely independent, without conflicts, and free frompreconceived notions about RIO. The Contractor must certify that neither the firm norany of the individuals, including any subcontractors, who will perform work on thisproject, have performed any work for or related to RIO within the previous two years.

The offeror must be independent in accordance with: a) Government Auditing

Standards, issued by the Comptroller General of the United States, and; b) AICPAstandards, including Ethics Interpretation 101-10, entitled "The effect onindependence of relationships with entities included in the governmental financialstatements."

At the time specified by the deadline for submission of proposals, the offeror musthave and keep current any professional certifications, licenses, and permits requiredby federal, state, and local laws for performance of this contract. Offerors that do notpossess required licenses at the time proposals are due will be determined non-responsive.

Contractor and any of the individuals that will perform work on the project, includingany subcontractors, must possess investment expertise, audit and assurance service

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SECTION FOURGENERAL CONTRACT INFORMATION

4.01 Contract Term, Extension and Renewal OptionsThe State intends to enter into a contract with an effective date beginning approximately May 25, 2010and ending July 31, 2010.

The State reserves the right to extend the contract period for an additional period of time, not to exceedsix months beyond the normal expiration date of the contract, upon mutual written agreement by bothparties.

4.02 Contract TypeFixed Price with Adjustment: The contract will specify the maximum fee to be paid for performance of theproposed services as set forth in the successful offerors proposal. Billings shall be for the actual hoursworked, at the billing rate(s) quoted in the firms proposal, not to exceed the maximum fee establishedcontract price.

If additional work is determined to be necessary, the contract may be amended by mutual agreement ofthe parties. Any additional work will be performed at the billing rate(s) quoted in the firms proposal, andincorporated into the contract.

4.03 Standard Contract ProvisionsThe successful offeror will be required to sign and submit the contract attached to this RFP. Thecontractor must comply with the contract provisions set out in this attachment. Any objections to thecontract provisions must be set out in the offerors proposal. No alteration of these provisions will bepermitted without prior written approval from the purchasing agency. Offerors are instructed to contactthe procurement officer in writing by the deadline set for questions with any concerns regarding thecontract provisions.

4.04 Proposal as a Part of the ContractPart or all of this RFP and the successful proposal may be incorporated into the contract.

4.05 Additional Terms and Conditions

The State reserves the right to add, delete, or modify terms and conditions during contract negotiations.These terms and conditions will be within the scope of the RFP and will not affect the proposalevaluations.

4.06 Supplemental Terms and ConditionsProposals including supplemental terms and conditions will be accepted, but supplemental conditions thatconflict with those contained in this RFP or that diminish the State's right's under any contract resultingfrom the RFP will be considered null and void. The State is not responsible for identifying conflictingsupplemental terms and conditions before issuing a contract award. After award of contract:

(a) if conflict arises between a supplemental term or condition included in the proposal and aterm or condition of the RFP, the term or condition of the RFP will prevail; and

(b) if the State's rights would be diminished as a result of application of a supplemental term orcondition included in the proposal, the supplemental term or condition will be considered null

and void.

4.07 Contract ApprovalThis RFP does not, by itself, obligate the State. The State's obligation will commence when thepurchasing agency approves the contract. Upon written notice to the contractor, the State may set adifferent starting date for the contract. The State will not be responsible for any work done by thecontractor, even work done in good faith, if it occurs prior to the contract start date set by the State.

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4.08 Contract Changes - Unanticipated AmendmentsDuring the course of this contract, the contractor may be required to perform additional work. That workwill be within the general scope of the initial contract. When additional work is required, the projectmanager designated by the State and the contractor will prepare a written description of the additionalwork, a time schedule for accomplishing the additional work, and a firm price for the additional work. Costand pricing data must be provided to justify the cost of amendments.

The contractor will not commence additional work until the project manager has secured any requiredState approvals necessary for the amendment and issued a written contract amendment, approved by thepurchasing agency.

4.09 Indemnification and Insurance RequirementsOfferor must review the contract attached to this RFP (Attachment A) for indemnification and insurancerequirements.

Objections to any of the provisions of the Indemnification and Insurance Requirements must be made inwriting to the attention of the procurement officer by the time and date set for receipt of questions. Noalteration of these provisions will be permitted without prior written approval from the purchasing agencyin consultation with the North Dakota Risk Management Division.

Upon receipt of the Notice of Intent to Award, the successful offeror must obtain the required insurancecoverage and provide the procurement officer with proof of coverage prior to contract approval. Thecoverage must be satisfactory to the purchasing agency, in consultation with the North Dakota RiskManagement Division. An offerors failure to provide evidence of insurance coverage is a material breachand grounds for withdrawal of the award or termination of the contract.

4.10 Taxes and Taxpayer IdentificationThe contractor must provide a valid Vendor Tax Identification Number as a provision of the contract.

The State is not responsible for and will not pay local, state, or federal taxes. The State sales taxexemption number is E-2001, and certificates will be furnished upon request by the purchasing agency.

A contractor performing any contract, including service contracts, for the United States Government, State

of North Dakota, counties, cities, school districts, park board or any other political subdivisions withinNorth Dakota is not exempt from payment of sales or use tax on material and supplies used or consumedin carrying out contracts. In these cases, the contractor is required to file returns and pay sales and usetax just as required for contracts with private parties. Contact the North Dakota Tax Department at 701-328-3470 or visit its website at www.nd.gov/tax/ for more information.

A contractor performing any contract, including a service contract, within North Dakota is also subject tothe corporation income tax, individual income tax, and withholding tax reporting requirements, whetherthe contract is performed by a corporation, partnership, or other business entity, or as an employee of thecontractor. In the case of employees performing the services in the state, the contractor is required towithhold state income tax from the employees' compensation and remit to the state as required by law.Contact the North Dakota Tax Department at 701-328-3125 or visit its web site for more information

4.11 Proposed Payment ProceduresThe State will make a single payment when all of the deliverables are received and the contract iscompleted and approved by the project manager designated by the State. The State will not make anyadvanced payments before performance by the contractor under this contract.

4.12 Contract FundingApproval or continuation of a contract resulting from this solicitation is contingent upon continuingappropriation. The contract may be terminated by the state or modified by agreement of both parties inthe event funding from federal, state, or other sources is not obtained and continued at sufficient levels.
http://www.nd.gov/taxhttp://www.nd.gov/tax


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4.13 Payment TermsNo payment will be made until the purchasing agency approves the contract.

Payment for commodities and services received under contracts will normally be made within 30 calendardays after receipt and acceptance by the purchasing agency or after receipt of a correct invoice,whichever is later. Payment inquiries must be directed to the purchasing agency. Prompt PaymentDiscount Terms offered by the contractor may be taken by the purchasing agency if payment is madewithin the specified terms.

4.14 Contract PersonnelThe project manager designated by the purchasing agency must approve any change of the contractorsproject team members named in the proposal, in advance and in writing. Personnel changes that are notapproved by the State may be grounds for the State to terminate the contract.

4.15 Inspection & Modification - Reimbursement for Unacceptable DeliverablesThe contractor is responsible for the completion of all work set out in the contract. All work is subject toinspection, evaluation, and approval by the project manager designated by the State. The State mayemploy all reasonable means to ensure that the work is progressing and being performed in compliancewith the contract. Should the project manager determine that corrections or modifications are necessaryin order to accomplish its intent; the project manager may direct the contractor to make changes. The

contractor will not unreasonably withhold changes.

Substantial failure of the contractor to perform the contract may cause the State to terminate the contract.In this event, the State may require the contractor to reimburse monies paid (based on the identifiedportion of unacceptable work received) and may seek associated damages.

4.16 Termination for DefaultIf the project manager designated by the purchasing agency determines that the contractor has refused toperform the work or has failed to perform the work with diligence as to ensure its timely and accuratecompletion, the State may, by providing written notice to the contractor, terminate the contractors right toproceed with part or all or the remaining work.

This clause does not restrict the States right to termination under the contract provisions of the Service

Contract, attached.

4.17 Open Records Laws - ConfidentialityAny records that are obtained or generated by the contractor under this contract are subject to NorthDakota open records law regarding public records and handling of confidential information.

4.18 Work Product, Equipment, and MaterialAll work product, equipment or materials created or purchased under this contract belong to the State andmust be delivered to State at States request upon termination of this contract, unless otherwise agreed inwriting by the purchasing agency.

4.19 Independent EntityThe contractor is an independent entity under this contract and is not a State employee for any purpose.

The contractor retains sole and absolute discretion in the manner and means of carrying out thecontractors activities and responsibilities under the contract, except to the extent specified in the contract.

4.20 AssignmentContractor may not assign or otherwise transfer or delegate any right or duty without the States expresswritten consent. However, the contractor may enter into subcontracts provided that the subcontractacknowledges the binding nature of this contract and incorporates this contract, including anyattachments.

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4.21 Disputes - Applicable Law and VenueAny dispute arising out of this agreement will be resolved under the laws of the State of North Dakota.


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SECTION FIVEEVALUATION CRITERIA AND CONTRACTOR SELECTION

THE TOTAL NUMBER OF POINTS USEDTO SCORE THIS CONTRACT IS 100

5.01 Special Purpose Audit Work Plan 40 PointsForty Percent (40%)of the total possible evaluation points will be assigned to this criterion.

Proposals will be evaluated against the questions as set out below:

[a] How comprehensive is the special purpose audit work plan?

[b] Does the special purpose audit work plan depict a logical approach to accomplishing the RFPscope of work?

[c] Does the special purpose audit work plan meet the schedule stated in the RFP?

[d] Is the organization of the engagement team clear and logical?

[e] Does the special purpose audit work plan provide reasonable time estimates of each majorsegment of work and the estimated number of hours for each member of the engagement team?

[f] Has the offeror identified pertinent issues and potential problems related to the project?

[g] Is the proposal practical, feasible, and within budget?

5.02 Experience and Qualifications 30 PointsThirty Percent (30%) of the total possible points will be assigned to this criterion.

If the RFP required a minimum amount of experience or qualifications, no points will be awarded for

meeting the minimum. Points will be awarded for experience and qualifications that exceed the statedminimums. Proposals will be evaluated against the questions as set out below:

Questions regarding the personnel:

[a] Do the individuals meet the mandatory requirements stated in 3.02 of the RFP?

[b]Do the individuals assigned to the engagement team have experience providing similar assuranceservices?

[c] Are resumes complete and do they demonstrate backgrounds that would be desirable forindividuals engaged in the work this RFP requires?

[d] How extensive is the applicable education and experience of the personnel designated to work onthe project?

Questions regarding the firm:

[e] Does the firm meet the mandatory requirements stated in 3.02 of the RFP?

[f] Has the firm demonstrated experience in completing similar projects satisfactorily and timely?

[g] Has the firm provided letters of reference from previous clients?

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[h] If a subcontractor will perform work on the project, how well does it measure up to the evaluationused for the offeror?

5.03 Contract CostThirty Percent (30%) of the total possible evaluation points will be assigned to cost.

Any prompt payment discount terms proposed by the offeror will not be considered in evaluating cost.The cost amount used for evaluation may be affected by the application of North Dakota preference laws.

The lowest cost proposal will receive the maximum number of points allocated to cost. The pointallocations for cost on the other proposals will be evaluated according to the method set forth below:

Weight 30 Percent. Maximum Point Value for this Section100 Points x 30 Percent= 30 Points

5.04 Applying Preference LawsThe cost amount used for evaluation may be affected by the application of North Dakota preference laws(N.D.C.C. 44-08-01). The preference given to a resident offeror will be equal to the preference given orrequired by the state of the nonresident offeror (i.e. reciprocal preference).

A resident North Dakota bidder, offeror, seller, or contractor is one that has maintained a bona fide placeof business within this State for at least one year prior to the date on which a contract was awarded.When evaluating cost proposals from nonresident (out-of-state) offerors, evaluator will determine whetherthe offerors state of residence has a preference law for vendors resident in that state. The cost proposalof the nonresident offeror will be increased by the same percentage of preference given to vendorsresident in that state.

For example, if the state law of the nonresident offeror requires a 5% preference for vendors resident inthat state, the procurement officer will increase that offerors cost proposal by 5% before evaluation.

Seehttp://www.oregon.gov/DAS/SSD/SPO/reciprocal_detail.shtml for a list of States Preference Laws orcontact the North Dakota State Procurement Office at 701-328-2683.
http://www.oregon.gov/DAS/SSD/SPO/reciprocal_detail.shtmlhttp://www.oregon.gov/DAS/SSD/SPO/reciprocal_detail.shtmlhttp://www.oregon.gov/DAS/SSD/SPO/reciprocal_detail.shtml


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SECTION SIXPROPOSAL FORMAT AND CONTENT

6.01 Proposal Format and ContentThe State discourages overly lengthy and costly proposals; however, in order for the State to evaluateproposals fairly and completely, offerors must follow the format set out in this RFP and provide allinformation requested.

6.02 IntroductionProposals must include the complete name and address of offerors firm and the name, mailing address,and telephone number of the person the State should contact regarding the proposal.

Proposals must confirm that the offeror will comply with all provisions in this RFP. The proposal mustdisclose any instances where the firm or any individuals working on the contract has a possible conflict ofinterest and, if so, the nature of that conflict (e.g. employed by the State of North Dakota).

Proposals must be signed by a company officer empowered to bind the company. An offeror's failure toinclude these items in the proposals may cause the proposal to be determined to be non-responsive andthe proposal may be rejected.

6.03 Special Purpose Audit Work PlanOfferors must provide a comprehensive Special Purpose Audit Work Plan that details the approach beingproposed to accomplish the scope of work set forth in Section 3.01 of this RFP.

Offerors must provide comprehensive narrative statements that set out the work plan it intends toemploy to accomplish the purpose of the RFP. Offerors must illustrate how the approach willserve to accomplish the work and provide the deliverables described in the scope of work.

The work plan must include a project schedule that meets deadlines specified in section 3.01,including estimated dates for field work.

Offerors must provide a narrative or organizational chart that describes the organization of theEngagement Team.

The description of the type of work and estimated number of hours each individual will perform.

Offerors must also identify any pertinent issues and potential problems related to the project.

6.04 Experience and Qualifications

PersonnelOfferors must provide information specific to the experience and qualifications of each person on theEngagement Team who will perform the work called for in section 3.02 of this RFP, including:

a) Titleb) Resume, or narrative description of experience and qualifications;

c) Previous experience providing assurance services of a similar nature to the work required in thisRFP.

d) Certification that the individual meets the requirement to be independent and without conflictsrelated to RIO.

e) Professional Certifications, Licenses, and permits required to publicly perform assurance servicesidentified in the Contractors work plan.

FirmOfferors must provide information specific to the experience and qualifications of the firm that will perform

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the work called for in section 3.02 of this RFP, including:

a) Offerors must describe the experience of their firm in completing similar projects.b) Offerors are invited to provide references from previous clients. The State reserves the right to

contact any references provided by the offeror.c) Certification that the firm meets the requirement to be independent and without conflicts related to

RIO

SubcontractorsIf an offeror intends to use subcontractors, the offeror must identify in the proposal the names of thesubcontractors and the portions of the work the subcontractors will perform.

6.05 Cost ProposalCost proposals must include an itemized list of all direct and indirect costs associated with theperformance of the contract, including total number of hours at various hourly rates, direct expenses,payroll, supplies, overhead assigned to each person working on the project, percentage of each person'stime devoted to the project, and profit.

The Contractor should include in its cost proposal: transportation, lodging, and out of pocket expensesincurred to cover on-site work and presentation of final report.

All costs associated with the contract must be stated in U.S. currency. Any commodities being importedmust be identified, and the price must include any applicable customs, brokerage agency fees, andduties.

Offerors should describe any discounts terms for prompt payment. Discounts for prompt payment will notbe considered in evaluating cost.

Offerors must complete cost proposal attached to this RFP or prepare a cost proposal following the sameformat.

6.06 Supplemental TermsOfferors may include any supplemental terms and conditions in accordance with section 4.06 of the RFP.


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SECTION SEVENSTANDARD PROPOSAL INFORMATION

7.01 Authorized SignatureAn individual authorized to bind the offeror to the provisions of the RFP must sign all proposals.

7.02 State Not Responsible for Preparation CostsThe State will not pay any cost associated with the preparation, submittal, presentation, or evaluation ofany proposal.

7.03 Conflict of InterestOfferors must disclose any instances where the firm or any individuals working on the contract has apossible conflict of interest and, if so, the nature of that conflict (e.g. employed by the State of NorthDakota). The State reserves the right to cancel the award if any interest disclosed from any source couldeither give the appearance of a conflict or cause speculation as to the objectivity of the offerors proposal.The States determination regarding any questions of conflict of interest is final.

7.04 Offeror's CertificationBy signature on the proposal, an offeror certifies that it complies with:

a) the laws of the State of North Dakota;b) North Dakota Administrative Code;c) all applicable local, state, and federal laws, code, and regulations;d) the applicable portion of the Federal Civil Rights Act of 1964;e) the Equal Employment Opportunity Act and the regulations issued by the federal government;f) the Americans with Disabilities Act of 1990 and the regulations issued by the federal government;g) all terms, conditions, and requirements set forth in this RFP;h) a condition that the proposal submitted was independently arrived at, without collusion;i) a condition that the offer will remain open and valid for the period indicated in this solicitation; and

j) a condition that the firm and any individuals working on the contract do not have a possibleconflict of interest (e.g. employed by the State of North Dakota).

If any offeror fails to comply with the provisions stated in this paragraph, the State reserves the right to

reject the proposal, terminate the contract, or consider the contractor in default.

7.05 Offer Held firmProposals must remain open and valid for at least 90 DAYSfrom the deadline specified for submission ofproposals. In the event award is not made within 90 DAYS, the State will send a written request to allofferors deemed susceptible for award asking offerors to hold their price firm for a longer specified periodof time.

7.06 Amendments to Proposals and Withdrawals of ProposalsOfferors may amend or withdraw proposals prior to the deadline set for receipt of proposals. Noamendments will be accepted after the deadline unless they are in response to the State's request. Afterthe deadline, offerors may make a written request to withdraw proposals and provide evidence that asubstantial mistake has been made. The procurement officer may permit withdrawal of the proposal upon

verifying that a substantial mistake has been made, and the State may retain the offerors bid bond orother bid type of bid security, if one was required.

7.07 Alternate ProposalsOfferors may submit only one proposal for evaluation.

Alternate proposals (proposals that offer something different than what is requested) will be rejected.

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7.08 SubcontractorsSubcontractors may be used to perform work under this contract. If an offeror intends to usesubcontractors, the offeror must identify in the proposal the names of the subcontractors and the portionsof the work the subcontractors will perform as follows:

(a) complete name of the subcontractor;(b) complete address of the subcontractor;(c) type of work the subcontractor will be performing;(d) percentage of work the subcontractor will be providing;(e) evidence, as set out in the relevant section of this RFP, that the subcontractor is registered and, if

applicable, holds a valid North Dakota business license; and(f) a written statement, signed by each proposed subcontractor, that clearly verifies that the

subcontractor is committed to render the services required by the contract.

An offeror's failure to provide this information, within the time set, may cause the State to consider itsproposal non-responsive and reject it. The substitution of one subcontractor for another may be madeonly at the discretion and prior written approval of the States procurement officer or project managerdesignated by the State.

7.09 Joint Ventures

Joint ventures will not be allowed.

7.10 Disclosure of Proposal Contents and Compliance with North Dakota Open Records LawsAll proposals and other material submitted become the property of the State and may be returned only atthe State's option. All proposals and related information, including detailed cost information, are exemptrecords and will be held in confidence until an award is made, in accordance with N.D.C.C. 54-44.4-10(2).

Offerors may make a written request that trade secrets and other proprietary data contained in proposalsbe held confidential. Material considered confidential by the offeror must be clearly identified, and theofferor must include a brief statement that sets out the reasons for confidentiality. See the North DakotaOffice of the Attorney General website for additional information.http://www.ag.state.nd.us/OpenRecords/ORM.htm

After award, proposals will be subject to the North Dakota open records law. Records are closed orconfidential only if specifically stated in law. If a request for public information is received, theprocurement officer, in consultation with the Office of the Attorney General, will determine whether theinformation is an exception to the North Dakota open records law, and the information will be processedappropriately.

7.11 Evaluation of ProposalsAll proposals will be reviewed to determine if they are responsive to the requirements of this solicitation.The procurement officer or an evaluation committee will evaluate responsive proposals. The evaluationwill be based solely on the evaluation factors set forth in this RFP. The evaluation will considerinformation obtained subsequent to any discussions with offerors determined to be reasonable for awardand any demonstrations, oral presentations, or site inspections, if required in this RFP.

7.12 Right of RejectionThe State reserves the right to reject any proposals, in whole or in part. Proposals received fromdebarred or suspended vendors will be rejected. The procurement officer may reject any proposal that isnot responsive to all of the material and substantial terms, conditions, and performance requirements ofthe RFP.

Offerors may not qualify the proposal nor restrict the rights of the State. If an offeror does so, theprocurement officer may determine the proposal to be a non-responsive counter-offer and the proposalmay be rejected.
http://www.ag.state.nd.us/OpenRecords/ORM.htmhttp://www.ag.state.nd.us/OpenRecords/ORM.htm


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The procurement officer may waive minor informalities that:

do not affect responsiveness;

are merely a matter of form or format;

do not change the relative standing or otherwise prejudice other offers;

do not change the meaning or scope of the RFP;

are insignificant, negligible, or immaterial in nature;do not reflect a material change in the work; or

do not constitute a substantial reservation against a requirement or provision,

The State reserves the right to reject any proposal determined to be not responsive, and to reject theproposal of an offeror determined to be not responsible. The State also reserves the right to refrain frommaking an award if it determines it to be in its best interest.

7.13 Clarification of OffersIn order to determine if a proposal is reasonably susceptible for award, communications by theprocurement officer or the proposal evaluation committee are permitted with an offeror to clarifyuncertainties or eliminate confusion concerning the contents of a proposal and determine responsivenessto the RFP requirements. Clarifications may not result in a material or substantive change to the

proposal. The initial evaluation may be adjusted because of a clarification under this section.

After receipt of proposals, if there is a need for any substantial clarification or material change in the RFP,an amendment will be issued. The amendment will incorporate the clarification or change, and a newdate and time established for new or amended proposals. Evaluations may be adjusted as a result ofreceiving new or amended proposals.

7.14 Discussions and Best and Final OffersThe State may conduct discussions or request best and final offers with offerors that have submittedproposals determined to be reasonably susceptible for award. The State is not obligated to do so,therefore, vendors should submit their best terms (cost and technical). The purpose of these discussionsis to ensure full understanding of the requirements of the RFP and the offerors proposal. Discussions willbe limited to specific sections of the RFP or proposal identified by the procurement officer. Discussions, ifheld, will be after initial evaluation of proposals by the proposal evaluation committee. If modifications tothe proposal are made as a result of these discussions, the modifications must be put in writing.

Offerors with a disability needing accommodation should contact the procurement officer prior to the dateset for discussions so that reasonable accommodation can be made.

7.15 Contract NegotiationAfter final evaluation, the procurement officer may negotiate with the offeror of the highest-rankedproposal. Negotiations, if held, will be within the scope of the request for proposals and limited to thoseitems that would not have an effect on the ranking of proposals. If the highest-ranked offeror fails toprovide necessary information for negotiations in a timely manner, or fails to negotiate in good faith, theState may terminate negotiations and negotiate with the offeror of the next highest-ranked proposal.

If contract negotiations are commenced, they will be held via conference call or at a location in Bismarck,

ND at a site to be determined.

If contract negotiations are held, the offeror will be responsible for all cost including its travel and per diemexpenses.

7.16 Failure to NegotiateIf the selected offeror:

fails to provide the information required to begin negotiations in a timely manner;

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fails to negotiate in good faith;

indicates it cannot perform the contract within the budgeted funds available for the project; or

if the offeror and the State, after a good faith effort, cannot come to terms,

the State may terminate negotiations with the offeror initially selected and commence negotiations withthe next highest ranked offeror.

7.17 Notice of Intent to Award - Offeror Notification of SelectionAfter the completion of contract negotiation the procurement officer will issue a written Notice of Intent toAward and send copies to all offerors. The Notice of Intent Award will set out the names and addressesof all offerors and identify the proposal selected for award. The scores and placement of other offerorswill not be part of the Notice of Intent to Award.

The successful offeror named in the Notice of Intent to Award is advised not to begin work, purchasematerials, or enter into subcontracts relating to the project until both the successful offeror and the Statesign the contract.

7.18 Protest and AppealNorth Dakota law provides that an interested party may protest a solicitation.If an interested party wishes to protest the content of this RFP, the protest must be received, in writing, bythe procurement officer at least seven calendar days before the deadline for receipt of proposals.

An interested party may protest the award or proposed award of a contract.If an offeror wishes to protest the award of a contract or proposed award of a contract, the protest mustbe received, in writing, by the procurement officer within seven calendar days after the date the Notice ofIntent to Award was issued.


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special audit rfp draft (2) 043010

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