specification no. txdot 915-44-10 revised: august 2016...

SPECIFICATION NO.

TxDOT 915-44-10*

REVISED: August 2016

Texas Highway Magazine Fulfillment

PUBLICATION

This specification is a product of the Texas Department of Transportation (TxDOT). It is the practice of

TxDOT to support other entities by making this specification available through the National Institute of

Governmental Purchasing (NIGP). This specification may not be sold for profit or monetary gain. If this

specification is altered in any way, the header, and any and all references to TxDOT must be removed.

TxDOT does not assume nor accept any liability when this specification is used in the procurement

process by any other entity.

* This Specification Supersedes TxDOT Specification No. 915-44-10, Dated DECEMBER 2011.

SPECIFICATION NO. TxDOT 915-44-10 REVISED: AUGUST 2016

RRRReeeevvvviiiisssseeeedddd 00003333////11116666 2222 ---- 22221111

1. SCOPE

This solicitation is to provide services for magazine circulation and product fulfillment services for Texas Highways Magazine (THM). The respondent shall manage all aspects of circulation and product fulfillment services including data management, call center support, letter shopping, and subscription and product fulfillment based on TxDOT service requirements.

2. DEFINITIONS OF TERMS AND ACRONYMS

2.1. AAM – Alliance for Audited Media.

2.2. ANCILLARY PRODUCT – A line of Texas-related products purchased for retail sales to the public via the THM Gift Shop.

2.3. CASS – Coding Accuracy Support System. Software used to verify an address is a deliverable address by the United States Postal Service (USPS) and to update addresses that have been renamed or renumbered in accordance with USPS regulations.

2.4. CFR – Code of Federal Regulations.

2.5. CSR – Customer Service Representative.

2.6. DECEASED – List of deceased subscribers to remove from distribution.

2.7. DMM – Domestic Mail Manual from the USPS.

2.8. FLSA – Fair Labor Standards Act.

2.9. FTP – File Transfer Protocol.

2.10. HOME OFFICE – Texas Highway’s Offices.

2.11. IMB – Intelligent Mail Barcode.

2.12. IMM – International Mail Manual from the USPS.

2.13. MANAGER – TxDOT representative responsible for coordinating with the respondent.

2.14. NCOA – National Change of Address.

2.15. PAVE – Presort Accuracy Validation and Evaluation. Certification that provides a common platform to measure the quality of presort products and determines accuracy in sorting address files according to the requirements set forth in the DMM.

2.16. PM – Project Manager.

2.17. POC – Point of contact.

2.18. TAC – Texas Administrative Code.



2.19. THM – Texas Highways Magazine.

2.20. TRV – TxDOT’s Travel Division.

2.21. USPS – United States Postal Service.

3. APPLICABLE LAWS AND STANDARDS

The respondent shall provide the specified service requirements in accordance with all applicable federal, state, and local laws, standards and regulations necessary to perform the services, including, but not limited to:

3.1. Code of Federal Regulations, 40 CFR – Protection of Environment, Chapter I: Subchapters D, I and N.

3.2. Transportation Code, Chapter 204, Section 204.009 – Travel Information, Sale of Promotional Items.

3.3. TAC, Title 43, Part 1, Chapter 23, Subchapter C, Rule 23.27 – Transportation, Travel Information, Texas Highways Magazine, Magazine Ancillary Products.

4. BACKGROUND

4.1. THM is published by TRV with physical offices located in Austin, Texas. THM is published monthly, 12 times per year, and has a current active subscription file size as follows:

4.1.1. The total monthly label count is 195,922. The total monthly copy count is 196,300.

4.1.2. Individual subscriptions on file include 182,113 individual domestic print subscribers, 613 individual foreign subscribers, and 13,196 digital subscribers.

4.1.3. Bulk subscriptions consist of 22 complimentary subscriptions totaling 440 copies.

4.1.4. In addition, approximately 45,000 out-of-house files are added each month for promotional and waiting room copies.

4.2. Through different direct mail efforts, THM adds approximately 45,000 new names to the file annually. The renewal conversion rate averages 70%.

4.3. In addition to the magazine, TRV produces and sells items such as calendars, prints, note cards, mugs, books, t-shirts, and other ancillary products.

4.3.1. An average of 63 pallets are warehoused each month.

4.3.2. Average monthly product processing consists of: 359 orders, 990 average pick and pack, and 3637 average receiving count.

4.3.3. Product customer names remain on file.



4.3.4. There are an average of 2,032 customer service calls handled for both products and subscriptions each month.

5. CURRENT ENVIRONMENT

TxDOT’s purchase order with the current respondent will expire on May 24, 2016. TxDOT expects the purchase order from this solicitation to be issued in Mid-2016. The current respondent and the new respondent receiving the purchaser order from this solicitation will be required to work together to further the aims of the program during this period. The new respondent awarded the purchase order from this solicitation shall be required to begin working on the conversion immediately upon issuance of the purchase order.

6. RESPONDENT QUALIFICATIONS

The respondent shall:

6.1. Be a company engaged in the business of providing magazine circulation and product fulfillment services for consumer magazines with a minimum circulation of 180,000 units within the last seven years. Recent start-up businesses do not meet the requirements of this solicitation. NOTE: A start-up business is defined as a new company that has no previous operational history or expertise in the relevant business and is not affiliated with a company that has that history or expertise. Two companies are affiliated if the two companies have a common parent company or if one is the parent or subsidiary of the other.

6.2. Be in good financial standing and current in payment of all taxes and fees such as state franchise fees. TxDOT reserves the right to request a copy of the respondent’s audited or un-audited financial statement. TxDOT may request a statement from the president, owner, or financial officer on company letterhead certifying that the company is in good financial standing and current in payment of all taxes and fees. When financial statements are requested, TxDOT will review the respondent's audited or un-audited financial statement in accordance with Texas Government Code, Title 10, Subtitle D, Section 2156.007 to evaluate the sufficiency of the respondent's financial resources and ability to perform the contract or provide the service required in the solicitation. TxDOT will be the sole judge in determining the sufficiency of the respondent's financial resources and ability to provide the service. Factors to be reviewed include:

6.2.1. Balance sheets

6.2.2. Net working capital

6.2.3. Current asset ratio

6.2.4. Liquidity ratio

6.2.5. Auditor(s) notes



6.2.6. Any notes to the financial statements

7. RESPONDENT REFERENCES

The respondent shall submit a minimum of eight references to substantiate the qualifications and experience requirements for similar services completed for three years within the last five years. References shall illustrate respondent’s ability to provide the services outlined in the specification. References shall include name, point of contact, telephone number, and dates services were performed. The response will be disqualified if TxDOT is unable to verify qualification and experience requirements from the respondent’s references. The response will be disqualified if TxDOT receives negative responses. TxDOT will be the sole judge of references (Ref. Respondent References).

8. RESPONDENT PERSONNEL QUALIFICATIONS

The respondent shall provide the following respondent personnel:

8.1. CSR: The CSR shall have a minimum of five years’ experience within the last seven years in consumer magazine circulation and product fulfillment services.

8.2. TEAM MEMBERS: Team members with a minimum of one year of experience within the last three years in the services referenced in Para. 11.

9. VENDOR REQUIREMENTS

The vendor shall:

9.1. Adhere to the TxDOT Terms and Conditions identified on the solicitation.

9.2. Provide all labor, materials, and equipment necessary to meet requirements of the specified services throughout the term of the purchase order.

9.3. Provide a CSR as primary point of contact.

9.4. Have the CSR on-call between 8:00 a.m. and 6:00 p.m. CT, Monday through Friday with the responsibility and authority for all processes involved with this purchase order.

9.5. ADDITIONAL PERSONNEL: The vendor shall employ adequate numbers of personnel to fulfill TxDOT orders in the time frames detailed below:

9.5.1. Product orders for customers requiring overnight or second day delivery shall be processed within one business day.

9.5.2. All other product orders shall be fulfilled within five business days.

9.5.3. Subscription orders shall be entered within five business days.



10. KEY RESPONDENT PERSONNEL REQUIREMENTS

10.1. The CSR’s primary responsibility shall be the day-to-day operation of the service in accordance with the requirements of the purchase order.

10.2. The CSR shall be a permanent staff employee and shall serve as the primary point of contact for TxDOT.

10.3. All personnel shall:

10.3.1. Be fluent in English with the ability to receive, give, and understand written and oral instructions.

10.3.2. Communicate verbally in English, speaking in a manner used in most office environments.

11. SERVICE REQUIREMENTS

The respondent shall:

11.1. Begin work within 30 calendar days of the award of the purchase order or on the agreed upon date between TxDOT and the respondent.

11.2. Obtain written approval from the designated TxDOT representative for all work and material required to correct any problems diagnosed by the respondent, prior to work being performed.

11.3. SUBSCRIPTION FULFILLMENT SERVICE: The respondent shall:

11.3.1. Send presorted subscriber mailing label information in zip-code order by FTP files to the THM printer two or three times each month based on a master schedule.

11.3.2. Use IMB processing for periodical.

11.3.3. Use postal carrier route coding.

11.3.4. Prepare files for palletization.

11.3.5. Produce one or two supplementary output files after the main run date.

11.3.6. Print pressure sensitive labels when required.

11.3.7. Print 4-up Cheshire labels when required.

11.3.8. Use CASS and PAVE certified software in accordance with USPS requirements, retain the USPS approval throughout the term of the purchase order and take optimum advantage of USPS rates for publications mailed “Periodical Class” or other items mailed at varying postal classes.



11.3.9. Submit copies of any renewals for the CASS and PAVE certification to the manager and submit proof of certification renewal periodically, as requested in writing by the manager.

11.3.10. Keep expired customer records on file for up to five years and generate output as needed for promotional purposes.

11.3.11. Provide the subscriber label data according to USPS regulations, maximizing the postal discounts available.

11.3.12. Receive and manually enter or scan new subscriptions, gift subscriptions, trial subscriptions, complimentary subscriptions, renewals on subscriptions, payments, and address changes sent via mail, fax, e-mail, Internet, or telephone.

11.3.13. Receive and enter subscriptions from subscription agencies.

11.3.14. Enter multiple year subscriptions when ordered.

11.3.15. Accept multiple subscription rates and combo rates on one offer.

11.3.16. Prorate subscription term length based on payment and rate calculations.

11.3.17. Detect duplicate subscribers upon entry.

11.3.18. Process future start subscriptions.

11.3.19. Charge for graced issues received when a renewal is entered.

11.3.20. Provide subscription website and shopping cart services for new subscription orders for individuals and gifts, renewals for existing subscriptions and address change requests.

11.3.21. Track multiple recipients related to a single donor.

11.3.22. Accept electronic transmissions prepared by THM and sent to respondent via FTP or e-mail.

11.3.23. Prepare marketing lists for direct mail pieces by setting up a finder number database and passing the names and addresses associated to the finder number to THM’s direct mail printing respondent.

11.3.24. Receive direct mail orders and enter or scan using the finder number database.

11.3.25. Enter demographic information when provided.

11.3.26. Collect e-mail addresses including auto e-mail address feed.

11.3.27. Process requested cancellations.

11.3.28. Suspend open credit orders based on schedule provided by THM.



11.3.29. Mass cancel open credit orders based on schedule provided by THM.

11.3.30. Reinstate canceled orders upon receipt of payment.

11.3.31. Extend subscriptions by single issues when requested by THM.

11.4. PRODUCT FULFILLMENT SERVICES: The respondent shall:

11.4.1. Ship all products using THM’s courier account for domestic deliveries and the postal services for any foreign deliveries unless other means are determined and approved by THM.

11.4.2. Provide product pick and pack services on orders received.

11.4.3. Receive new products into inventory.

11.4.4. Receive returned products and forward them to the home office.

11.4.5. Receive and manually enter or scan product orders sent via mail, fax, e-mail, internet, or telephone.

11.4.6. Provide onsite secured warehouse space for THM inventory which currently includes premiums, letters, envelopes, renewal and invoice forms, note cards, calendars, posters, and other ancillary products.

11.4.7. Prepare packing slip and include it in all shipments to customers.

11.4.8. Send e-mail acknowledgements on orders received whenever an e-mail address has been provided.

11.4.9. Inform customers within one week when an item is on back order.

11.4.10. Provide web-hosting and shopping cart for THM ancillary products.

11.4.11. Accommodate a customer log-in on the webpage to access their account information.

11.4.12. Allow cross-selling messages between subscriptions and products whenever a customer logs-in to the system.

11.5. LETTER SHOP SERVICES: Provide letter shopping services and deliver jobs that have been processed for optimal sortation and that meet all USPS requirements for preparation and class to post office. The respondent shall:

11.5.1. Prepare all classes of mailing in accordance with the USPS postal regulations as specified in the USPS DMM.

11.5.2. Commingle letters with like mailings to maximize postal discounts whenever possible.

11.5.3. Provide generic forms for renewals, invoices, gift cards, and acknowledgments.



11.5.4. Generate up to eight regular renewal efforts.

11.5.5. Calculate the renewal rate based on the subscriber’s prior rate.

11.5.6. Generate up to five regular invoice efforts.

11.5.7. Print a variety of messages on each form as determined by THM copy.

11.5.8. Create a single renewal notice for one donor with multiple recipients that have different expiration dates.

11.5.9. Create a single invoice for one donor with multiple recipients.

11.5.10. Mail renewal notices to donors, recipients, and other subscribers based on a schedule provided by THM.

11.5.11. Generate and mail gift cards.

11.5.12. Generate and mail acknowledgements to donors.

11.5.13. Insert buck slips and additional pieces into outgoing mail per THM instructions.

11.5.14. Print and mail direct mail promotions using generic stock.

11.5.15. Laser print forms and letters on THM provided stock.

11.6. POSTAL SERVICES: The respondent shall:

11.6.1. Maintain up-to-date equipment and software applications that support USPS encoding requirements and updates.

11.6.2. Provide the manager with all monthly postal transaction statements and reports for domestic and international mailings.

11.6.3. Provide optimal postal sortation and commingling for best rate.

11.6.4. Use IMB processing for outgoing and incoming address barcodes.

11.6.5. Provide reports for preparation of USPS Form 3541.

11.6.6. Receive automatic address correction uploads from the USPS.

11.7. ELECTRONIC, WEB, AND DIGITAL SERVICES: The respondent shall:

11.7.1. Produce and deliver e-mailed renewal efforts.

11.7.2. Provide e-mail creative assistance.

11.7.3. Set up e-mail blasts for subscription and product marketing.

11.7.4. Transmit e-mail blasts.



11.7.5. Maintain database of subscribers receiving a digital edition of the magazine.

11.7.6. Work with THM respondent for distribution of digital edition(s) of the magazine.

11.7.7. Provide consultation services to maintain quality across marketing platforms.

11.8. LIST RENTAL SERVICES: The respondent shall:

11.8.1. Create and maintain master file of rental names. NOTE: Respondent shall not rent or sell names on master file. These names are the property of TxDOT.

11.8.2. Provide monthly reports of names available for list rental.

11.8.3. Merge-purge against master file.

11.8.4. Provide NCOA processing.

11.8.5. Provide deceased processing.

11.8.6. FTP address, label data to other respondents according to the manager’s instructions via push.

11.8.7. Load address, label data to respondent’s site to be pulled by other THM respondents.

11.8.8. Process and ship 4-up Cheshire labels when requested.

11.8.9. Process and ship pressure sensitive labels when requested.

11.8.10. Process and transmit labels via e-mail when requested.

11.8.11. Process labels via magnetic tape, disk, or CD when requested.

11.8.12. Provide price per selects, to include, but not be limited to: key codes, sectional center facilities or zip code select, and split files for testing.

11.9. CUSTOMER SERVICE: Provide customer service support via telephone. Receive and process national and international customer calls on an 800 line owned by THM to include, but not be limited to:

11.9.1. General telephone customer service.

11.9.2. Telephone transactions for gifts.

11.9.3. E-mail customer service.

11.9.4. Internet customer service.

11.9.5. Internet and e-mail acknowledgement.



11.9.6. Automated customer service.

11.9.7. Upsells.

11.9.8. Secondary transactions.

11.9.9. Solicitation and prank call.

11.9.10. Clerical services.

11.9.11. Inquiry and correspondence services.

11.10. FINANCIAL SERVICES: The respondent shall:

11.10.1. Process credit card transactions.

11.10.2. Make daily electronic deposits to an account(s) set up by the state’s fiscal agent (Texas Comptroller of Public Accounts Office) and provide sales tax data on each ancillary product deposit.

11.10.3. Send refund information directly to THM on a weekly basis so that THM can reimburse directly to customer rather than the respondent. The state of Texas will not allow refund payments to be issued by respondents.

11.10.4. Upload Texas sales tax tables.

12. VENDOR DELIVERABLES

The vendor shall submit:

12.1. PROJECT SCHEDULE (S): A detailed project schedule and work plan for all project tasks starting with the conversion and continuing throughout the term of the purchase order. The CSR shall monitor and update all project schedules and work plans, revising as appropriate, with approval from TxDOT and will meet regularly with THM managers to go over progress of each project. The Project plan shall include, but not be limited to, the following:

12.1.1. An Implementation Schedule.

12.1.2. A logical sequence of tasks and deliverables included in each project period.

12.1.3. A clear definition of each task and deliverable.

12.1.4. Staff requirements for each task and deliverable.

12.1.5. A specific target completion date for each task and deliverable.

12.1.6. Task and deliverable relationships and dependencies.

12.1.7. Start-up.



12.2. REPORTS: Provide a detailed listing of regular reports available in the reporting package. Be able to provide ad hoc reports per TxDOT request. Each field in the database should be made available for ad hoc reports so TxDOT can query results by data field.

13. VENDOR PERFORMANCE

The vendor performance will be monitored on a regular basis by TxDOT. TxDOT may consider the following performance by the vendor as unsatisfactory performance.

13.1. An unsatisfactory performance determination includes, but is not limited to:

13.1.1. Failure to meet the deadline for delivery of labels to the THM printer.

13.1.2. Two instances within one month of failure to ship products on time, as defined in the specification (except when products are on back order).

13.1.3. Multiple customer complaints (more than five similar complaints within 30 calendar days), directed to THM concerning issues handled by the vendor’s customer service department.

NOTE: Unsatisfactory performance may result in a negative vendor performance report or cancellation of the purchase order, or both.

13.2. An exceptional performance determination includes, but is not limited to:

13.2.1. Deliverables made early upon TxDOT member request.

13.2.2. Product upgrade substitution suggested and accepted at no additional cost to TxDOT.

13.2.3. Vendor commended for exceptional customer service, exceptional service provided.

13.2.4. Provided technical assistance when not required.

14. PERSONNEL CONTINUITY AND REPLACEMENT

14.1. TxDOT recognizes that events beyond the control of the vendor such as the death, physical or mental incapacity, long-term illness, or the voluntary termination of employment of the CSR, account manager, any key personnel, etc. will require the vendor propose a replacement. In the event such a replacement is necessary, vendor agrees that personnel shall not begin work on the project without prior written approval from TxDOT.

14.2. Proposed replacement personnel shall meet minimum qualifications and have experience comparable to the person(s) being replaced. Replacement personnel shall be provided at no additional cost to TxDOT. Resume(s) and reference(s) may be requested for the proposed replacement(s).



15. QUALITY ASSURANCE PLAN

The vendor shall provide a comprehensive, continuous, and measurable quality assurance program. The plan shall include:

15.1. Strategies and processes to promote quality.

15.2. Procedures to periodically measure and report quality performance to TxDOT throughout the term of the purchase order.

15.3. How often the vendor conducts internal audits and engages external audit firms to conduct audits of its operations.

15.4. Controls to be used within the project to assure quality and consistency throughout the term of the purchase order.

16. VENDOR PERSONNEL SAFETY

The vendor shall provide all required safety equipment and instruct personnel to observe all safety policies, rules, and requirements at all times, including, but not limited to, hard hats, safety shoes, goggles, etc.

17. WORK HOURS

Regular work hours for performance of the service are defined in the TxDOT Terms and

Conditions identified on the solicitation.

17.1. Customer service staff shall answer customer calls and process customer requests Monday through Friday, 7:00 a.m. until 11:00 p.m. CT and Saturday and Sunday, 8:00 a.m. until 5:00 p.m. CT.

17.2. Work hours may be flexible, based on type of work, (i.e., plant production schedules, security service) and TxDOT requirements.

18. SUBCONTRACTING

18.1. Subcontractors providing service under the purchase order shall meet the same qualifications and service requirements and provide the same quality of service required of the vendor.

18.2. No subcontract under the purchase order shall relieve the primary vendor of responsibility for the services.

18.3. The vendor shall be the only contact for TxDOT and subcontractor(s).

18.4. The vendor shall manage all quality and performance, project management, and schedules for subcontractors. The vendor shall be held solely responsible and accountable for the completion of all work for which the respondent has subcontracted.



18.5. TxDOT retains the right to check subcontractor’s background and make a determination to approve or reject the use of submitted subcontractor(s). Any negative responses may result in disqualification of the subcontractor.

18.6. TxDOT reserves the right to request the removal of vendor’s subcontractor staff deemed unsatisfactory by TxDOT.

18.7. Subcontracting shall be at the vendor’s expense.

18.8. During the term of the purchase order, if the vendor determines a need for a subcontractor change, TxDOT shall be notified in writing by the vendor within 30 calendar days of any proposed change. The vendor shall be required to provide references and work history for any proposed subcontractor to TxDOT. No change will be allowed without written authorization by TxDOT.

18.9. SOLICITATIONS OVER $100,000: TxDOT will make an initial determination of whether subcontracting is probable. If TxDOT has determined that subcontracting opportunities are probable, the class and items in which HUBs may be registered will be noted in the solicitation along with the required forms and instructions. Responses that do not include a completed HUB Subcontracting Plan as indicated on the solicitation shall be rejected pursuant to Texas Government Code §2161.252(B).

19. BUSINESS CONTINUITY PROCEDURES AND DISASTER RECOVERY PLAN

The respondent shall submit the respondent’ s business continuity procedures and disaster recovery plan which shall include procedures that shall be implemented to fulfill all requirements of the purchase order including, but not limited to: fire, theft, natural disaster, technical difficulty, workforce problems, equipment failure, or other disruption of business. NOTE: Business Continuity Procedures and a Disaster Recovery Plan for this service shall be maintained by the vendor throughout the term of the purchase order. The vendor shall be responsible for all costs of disaster recovery.

20. SECURITY

The vendor will implement appropriate administrative, physical, and technical safeguards which reasonably and appropriately protect the confidentiality, integrity, and availability of services provided to TxDOT. The vendor will immediately report to TxDOT any security incident which it becomes aware. The vendor will submit for approval by TxDOT and conform its policies and procedures relating to the implementation of security safeguards to comply with TxDOT’s information resources security program pursuant to Title 1, Texas Administrative Code, Section 202.

21. CONFLICT OF INTEREST

The vendor, vendor’s personnel, and vendor’s subcontractor(s) shall affirm not to have, nor acquire any interest during the term of the purchase order that would conflict in any manner with the performance of the vendor’s obligations in regards to services authorized.



21.1. To avoid an appearance of a conflict of interest, any qualified non-TxDOT laboratory shall perform only one of the following types of testing on the same project:

21.1.1. Quality assurance verification testing.

21.1.2. Quality control testing.

21.2. The vendor certifies and warrants that he or she and any relative to the first consanguinity (blood) or affinity (marriage) have not been employed or an employee or contracted agent for the firm in which he or she is performing inspections as required under the purchase order for a period not less than five years from the effective date of the purchase order. Furthermore, the vendor certifies and warrants that he or she and any relative to the first consanguinity (blood) or affinity (marriage) have no financial interests of any kind in the firm in which he or she is performing inspections as required under the purchase order. Violation of this provision may be grounds for termination of the purchase order.

21.2.1. First consanguinity (blood) is described as: A person is related to you by blood in the first degree if the person is your: Mother or father, brother or sister, son or daughter.

21.2.2. Affinity (marriage) is described as: A person who is: your spouse, or spouse’s mother or father, brother or sister, son or daughter; your brother’s or sister’s spouse, son’s or daughter’s spouse, step-mother or step-father.

22. LIQUIDATED DAMAGES

Liquidated damages of $1,000 per calendar day, at a minimum, will be assessed if the vendor neglects, fails, or refuses to complete the work within the time specified in the purchase order. Each calendar day mailing is delayed per the production schedule will be considered as a breach of contract unless the vendor has been granted an extension in writing by TxDOT.

22.1. Failure to perform in accordance with the specification and terms and conditions of the purchase order, after having been notified in writing by TxDOT of the specific deficiency, may result in TxDOT requiring the vendor to pay liquidated damages, at a minimum of $1,000 per calendar day until the deficiency is corrected. If the deficiency is not corrected within 30 days, the vendor may be considered in default.

22.2. This provision is not intended as a penalty, but as liquidated damages.

23. AMENDMENTS

TxDOT and the vendor reserve the right to amend the purchase order, within the original scope, by mutual written agreement at any time during the term of service, as may be necessary to achieve the highest quality of production by the most efficient and cost-effective means or to include a different element or special feature that was not contemplated or fully developed at the time of solicitation. The amendment process will be accomplished through a Purchase Order Change Notice (POCN).



24. INVOICING INSTRUCTIONS

The vendor shall provide:

24.1. ORIGINAL INVOICE: A comprehensive and detailed invoice with reference to the line item on the purchase order or Schedule 1 – Pricing for each item charged. The original invoice shall be e-mailed to the e-mail address indicated on the purchase order to ensure timely payment and shall include the following:

24.1.1. Complete purchase order number.

24.1.2. Texas Identification Number (TIN).

24.1.3. Date and time of service.

24.1.4. Location of service.

NOTE: Invoices requiring correction shall be re-submitted with a new invoice date.

24.2. COPY OF INVOICE AND SUPPORTING DOCUMENTATION: A copy of the invoice and original supporting documentation that validates the invoice charges shall be e-mailed to the designated TxDOT representative to include but not be limited to:

24.2.1. Copies of invoices from subcontractors or other entities to which vendor has made payment and requires reimbursement from TxDOT as agreed to in the purchase order.

24.2.2. Receipts for shipping expenses charged by a third party.

25. PAYMENT REQUIREMENTS

Payment will be based on the following:

25.1. An itemized list work based on an approved Schedule 1 Pricing.

26. TxDOT RESPONSIBILITIES

TxDOT will:

26.1. Provide a contract manager as the point of contact.

26.2. Provide access to appropriate data systems and information.

26.3. Provide annual production schedule.



27. RESPONSE SUBMISSION – RFP

27.1. GENERAL FORMAT: The respondent shall submit one signed and dated original (marked Original) and shall submit five copies on flash drive. The submission should be in separate loose leaf binders on one sided 8-1/2 x 11 inch paper and be tab-indexed corresponding to the sections listed below. Plastic spine-bound or wire bound submittals are highly discouraged. Include only the information specified for each section.

27.2. ORIGINAL RESPONSE: Failure by the respondent to submit the documentation listed below will disqualify the respondent from further consideration. The response submission shall be submitted in the following format:

27.2.1. Section 1 – Schedule 1 – Pricing

27.2.1.1. If addendums are generated as part of this solicitation, include the original signed and dated addendum(s) in Section 1.

27.2.1.2. Copies: Include five copies of the Schedule 1 – Pricing in a sealed, separate envelope with the original submittal.

27.2.2. Section 2 – Schedule 2 – Original, signed and dated Execution of Proposal

27.2.3. Section 3 – Schedule 3 – Respondent Qualifications and Experience: The respondent shall demonstrate successful past performance through submission of documentation of relevant qualifications and experience to include:

27.2.3.1. Name, address, phone number, and e-mail address of the person TxDOT should contact with any questions regarding the response submission.

27.2.3.2. A brief description of related or similar services performed within the last five years.

27.2.3.3. Managing related or similar services of comparable size and scope to the services within the solicitation.

27.2.4. Section 4 – Key Personnel Qualifications and References: The respondent shall provide resumes or brief profiles and references. References shall substantiate the number of years of required experience of the individuals, including any subcontractors, who will be part of the respondent’s personnel providing the service. The profile shall include:

27.2.4.1. Each individual’s name and title.

27.2.4.2. Education.

27.2.4.3. Description of qualifications and number of years’ experience for the last five years (Ref. Para. 7.).



27.2.5. Section 5 – Demonstration of Capability: The respondent’s approach and ability to meet the service requirements as specified in the solicitation shall be demonstrated. The response should be specific and address all requirements described in the solicitation in the order presented in Para. 11. The respondent shall submit written documentation addressing how the respondent intends to meet the following:

27.2.5.1. Subscription fulfillment services (Ref. Para. 11.3.)

27.2.5.2. Product fulfillment services (Ref. Para. 11.4.)

27.2.5.3. Letter Shop Services (Ref. Para. 11.5.)

27.2.5.4. Postal Services (Ref. Para. 11.6.)

27.2.5.5. Electronic, Web, and Digital Services (Ref. Para. 11.7.)

27.2.5.6. List Rental Services (Ref. Para. 11.8.)

27.2.5.7. Customer Service (Ref. Para. 11.9.)

27.2.5.8. Financial Services (Ref. Para. 11.10.)

27.2.6. Section 6 – Business Continuity and Disaster Recovery Plan: Respondent shall submit a business continuity and disaster recovery plan detailing how the respondent proposes to meet the specifications in the event vendor service is interrupted. The plan shall detail the vendor’s backup and recovery process.

27.2.7. Section 7 – Security Plan: Respondent shall submit a security plan detailing how they propose to meet the security requirements outline in Para. 20.

27.2.8. Section 8 – HUB Subcontracting Plan

27.2.9. Copies: The five flash drive copies (marked Copy) shall include only the following tab-indexed sections:

27.2.9.1. Section 3 – Respondent Qualifications and Experience.

27.2.9.2. Section 4 – Key Personnel Qualifications.

27.2.9.3. Section 5 – Demonstration of Capability.

27.2.9.4. Section 6 – Business Continuity and Disaster Recovery Plan (if required, usually for RFO).

27.2.9.5. Section 7 – Security Plan.



27.3. The following should be submitted with the response. Failure by the respondent to submit the documentation listed below may disqualify the respondent from further consideration.

27.3.1. Section 9 – Financial Standing

Statement from the president, owner, or financial officer on company letterhead certifying that the company is in good financial standing, current in payment of all taxes and fees (Ref. Para. 6.2.).

27.3.2. Section 10 – Respondent References.

27.3.3. Section 11 – Quality Assurance Plan

28. RESPONSE EVALUATION

28.1. STEP 1 – REVIEW OF RESPONSES BY PURCHASING: Only a complete response with the listed required submittal documents and meeting minimum qualifications will be considered. Failure to meet the minimum qualifications and submit the required documents will result in a response being declared non-responsive.

28.2. STEP 2 – INITIAL EVALUATION: A TxDOT evaluation committee will evaluate and score each response based on established criteria. Respondents shall not contact members of the evaluation team. Responses will be evaluated according to the respondent’s ability to best satisfy TxDOT requirements. Respondent’s submission is evaluated and scored on a weighted system to determine the best value as follows:

28.2.1. Respondent qualifications and experience will comprise 60% of the evaluation total.

28.2.2. Pricing submitted for the solicitation requirements will be 40% of the evaluation total.

28.3. STEP 3 – ORAL PRESENTATION: TxDOT may request that selected respondents, including key personnel participate in oral presentation.

28.3.1.1. The initial selection of respondents qualifying to proceed to this step will maintain the pricing weight at 40%. The initial evaluation score of the qualifications and submission information will be replaced with the discussion meeting score at 60%.

28.3.1.2. TxDOT will advise each respondent in writing of the location, date, and time of the scheduled discussion meeting. A minimum of two weeks’ notice will be given to the respondent(s) selected for the discussion phase.

28.3.1.3. TxDOT may provide the respondent with a list of proposed key personnel required to attend and participate in the meeting.

28.3.1.4. Respondent and proposed key personnel should be prepared to address any questions that may be asked by TxDOT evaluators.



28.3.2. TxDOT reserves the right to continue discussions with selected respondent(s).

28.4. NEGOTIATIONS: Upon completion of oral presentation evaluation scoring, TxDOT reserves the right to enter into negotiations with one or more selected respondents.

28.5. STEP 4 – BEST AND FINAL OFFER (BAFO): TxDOT reserves the right to request a BAFO from selected respondent(s).

28.5.1. The respondent(s) shall submit a final price and any added value. If more than one respondent reaches this level, the negotiated terms, references, BAFO, and added values will be the considered in the award. TxDOT will make the final determination on the best value.

28.5.2. TxDOT may award the purchase order for the service without requesting a BAFO.

29. AWARD

TxDOT reserves the right to award a purchase order(s) to the company that provides the best value to TxDOT in performance of this service. TxDOT may award to a single vendor, multiple vendors, or use any combination that best serves the interest of TxDOT.

29.1. BEST VALUE: TxDOT will be the sole judge of best value. Best value criteria may include, but are not limited to:

29.1.1. Best meets the goals and objectives of the solicitation as stated in the Service Requirements.

29.1.2. Best meets the quality and reliability of the proposed goods and services.

29.1.3. Effect of the proposed solution on agency productivity.

29.1.4. Provides the most customer focused solution that will best meet the needs of the traveling public.

29.1.5. Experience in successfully providing services in the solicitation.

29.2. TYPES OF AWARD

29.2.1. Single Award: One purchase order awarded to a single vendor.

30. POST AWARD MEETING

Vendor(s) may be requested to attend a post award meeting in person in Austin, Texas or via teleconference, or via WebEx, with TxDOT within five calendar days after the award of the purchase order. The purpose of the meeting is to discuss the terms and conditions of the purchase order and to provide additional information regarding the purchase order. Vendor(s) and TxDOT shall identify specific goals, strategies, and activities planned for meeting particular program area objectives.



31. TRANSITION OF TxDOT PROPERTY

TxDOT will provide assistance as needed for the efficient and smooth transfer of all TxDOT property, including but not limited to: Publications, documents, property, equipment, and other material which TxDOT retains ownership rights related to work provided under a previous or current purchase order.

31.1. BEGINNING PHASE: The vendor awarded a purchase order as a result of this solicitation, shall, at the request of TxDOT, be responsible for contacting the previous vendor to request the transfer of all TxDOT property. The transition of TxDOT’s property shall occur within an agreed upon time frame to assure the new vendor can begin providing services as required by TxDOT.

31.2. CANCELLATION OR TERMINATION OF THE PURCHASE ORDER: At the end of the purchase order term or if the purchase order is cancelled by either party, the vendor(s) shall return all TxDOT property to TxDOT or transfer all TxDOT property to the TxDOT designated vendor(s) immediately upon TxDOT’s request.

32. CONTRACT ADMINISTRATION

Administration of the purchase order is the responsibility of TxDOT. TxDOT Procurement Division staff will be responsible for administering the contractual business relationship with the vendor.

32.1. Any proposed changes to work to be performed, whether initiated by TxDOT or the vendor, must receive final written approval in the form of a Purchase Order Change Notice signed by the authorized TxDOT purchasing agent.

32.2. Upon issuance of purchase order, TxDOT will designate an individual to serve as the Contract Manager and point of contact between TxDOT and the vendor. The Contract Manager does not have any express or implied authority to vary the terms of the purchase order, amend the purchase order in any way, or waive strict performance of the terms or conditions of the purchase order. This individual’s contract management and contract administration responsibilities include, but are not limited to:

32.2.1. Monitoring the vendor’s progress and performance and ensuring services conform to established specification requirements.

32.2.2. Managing the financial aspects of the contract including approval of payments.

32.2.3. Meeting with the vendor as needed to review progress, discuss problems, and consider necessary action.

32.2.4. Identifying a breach of contract by assessing the difference between contract performance and non-performance.

32.2.5.32.2.5.32.2.5.32.2.5. Other areas as identified by the Comptroller of Public Accounts Contract Management Guide, latest edition.

specification no. txdot 915-44-10 revised: august 2016...

Documents