state rfp wayne county

7/31/2019 State RFP Wayne County

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STATE OF MICHIGANDepartment of TreasuryPurchasing Section

Statement of Work (SOW) No. 271Q2215Municipal Management Services

Agreed Upon Procedures Engagement

Buyer Name: Thomas FalikTelephone Number: 517-373-3185

E-Mail Address: [email protected]

Estimated Timeline:

Key Milestone: Date:Issue Date 6/11/2012Questions Due 6/14/2012Bid Due Date 6/18/2012Anticipated Contract Start Date 6/25/2012


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SOW Checklist for Contractor Proposal Contents and Responsiveness

This checklist is provided for your convenience to help remind Contractors of the important requirementsof the SOW. The list may not be all inclusive. The Contractor is responsible to read the SOW and submitall the required responses. If Contractors have any questions concerning these requirements pleasecontact the Buyer listed on the front page of this SOW document.

Article 1 and Attachment A:

__________ Responses have been provided for all items requested in Article 1, Statement of Work, asrequested. Technical Proposal Requirements have been met and responses are included within theformat designated by the State in Article 3.

__________ Price Proposal, Article 1, Section 1.061, for the proposal has been included inContractors proposal, according to the instructions laid out in Article 3 and using the format in AttachmentA (if required in 1.061).

Article 3:

__________ The complete proposal was submitted to the appropriate location and on time in anelectronic format.

__________ Responses have been provided for all items requested in Article 3 and includes signatureby an individual authorized to legally bind Contractors company.


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Table of Contents

Article 1 Statement of Work (SOW)..................................................................................441.010 Project Identification..........................................................................................................................44

1.011 Project Request .....................................................................................................................441.012 Background ............................................................................................................................44

1.020 Scope of Work and Deliverables .......................................................................................................441.021 In Scope .................................................................................................................................441.022 Work and Deliverable .............................................................................................................55

1.030 Roles and Responsibilities................................................................................................................991.031 Contractor Staff, Roles, and Responsibilities .........................................................................991.032 State Staff, Roles, and Responsibilities .............................................................................1010

1.040 Project Plan ....................................................................................................................................10101.041 Project Plan Management ..................................................................................................10101.042 Reports ..............................................................................................................................1111

1.050 Acceptance Deleted N/A ..........................................................................................................11111.060 Proposal Pricing.............................................................................................................................1111

1.061 Proposal Pricing .................................................................................................................11111.070 Additional Requirements Deleted N/A ....................................................................................1111

Article 2, Terms and Conditions (See Contract).......................................................... 1212Article 3 Bid Process and Evaluation Criteria.......................................................... 1313

3.010 Introduction ....................................................................................................................................13133.011 Pre Bid Meetings Deleted N/A .....................................................................................13133.012 Communications ................................................................................................................13133.013 Questions ...........................................................................................................................1313

3.020 Award Process ...............................................................................................................................13133.021 Method of Evaluation .........................................................................................................13133.022 Technical Proposal Evaluation Criteria ..............................................................................13133.023 Price Evaluation .................................................................................................................13133.024 Award Recommendation ....................................................................................................14143.025 Reservations ......................................................................................................................14143.026 Award Decision ..................................................................................................................1414

3.030 Proposal Details .............................................................................................................................14143.031 Complete Proposal ............................................................................................................14143.032 Efficient Proposal ...............................................................................................................14143.033 Price and Notations ............................................................................................................14143.035 Proposal Format ................................................................................................................1414

3.040 Submitting Bids and Proposals ....................................................................................................15153.041 Sealed Bid Receipt ............................................................................................................15153.042 Proposal Submission .........................................................................................................1515

Attachment A, Pricing


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Article 1 Statement of Work (SOW)

Note to Contractors: Proposals must include detailed responses to all tasks as requested inArticle 1. Contractors should provide thorough responses to each task, or, when appropriate,state their agreement that the Contractor will provide the requested services. Contractors areencouraged to provide detailed responses in order to allow the State to fully evaluate theContractors capabilities.

As stated in Section 3.012 of this document, Contractors are reminded that the sole point ofcontact concerning the SOW is the Buyer, listed on the cover page of this document, in TreasuryPurchasing. Any communication by a potential Contractor in regards to this SOW with anyoneother than the Buyer during the SOW process may result in disqualification and/or debarment.

Throughout this SOW, language referring to Contract or Contractor(s) refers to any Contractawarded from this SOW. This SOW in itself is not to be construed as a Contract.

1.010 Project Identification

1.011 Project Request

This is an SOW for an Agreed Upon Procedures Engagement conducted in accordance with attestationstandards established by the American Institute of Certified Public Accountants. The purpose of theengagement is to evaluate the reasonableness of the County of Waynes most recent Deficit EliminationPlan (DEP). This is a formal request to prospective Contractors to solicit bids or price quotations.Contractors must submit written proposals according to the instructions contained within this document,discussing how they will meet the specific requirements.

Any awarded Purchase Order(s) between the State and any awarded Contractor(s) is a separatedocument, whose terms are limited by the Contract.

1.012 BackgroundThe County of Wayne (the County) has submitted a DEP for fiscal year 2011 with the expectation that theaccumulated deficit of $189 million will be eliminated by 2016. Given some of the novel ideas presentedin the DEP, a Contractor(s) is needed to provide expertise to the Michigan Department of Treasury(Treasury) on validating the accounting and budgeting systems utilized by the County in support of theDEP.

This engagement is a joint effort between the County and Treasury. Treasury acknowledges that theCounty submitted on time, a Comprehensive Annual Financial Report and received an unqualifiedopinion.

1.020 Scope of Work and Deliverables

1.021 In ScopeAn Agreed Upon Procedures Engagement for the County is needed as soon as possible to ascertain theviability of its DEP. In an attempt to aid the County, Treasury is seeking services as described in section1.022 (Work and Deliverable) in a two phase project. The first phase requires a report provided to

Treasury no later than 45 days after award. As part of the first phase the Contractor will examine andreport on all Governmental, Proprietary and Fiduciary funds of the County. The second phase will, ifneeded, require a report no later than 60 days after approval of the Phase 2 plan by Treasury. As part ofthe second phase the Contractor will further examine and report on certain enumerated funds based onthe results of the Phase 1 report.

Contractor Response:


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1.022 Work and DeliverableContractor must provide Deliverables/Services and staff, and otherwise do all things necessary for orincidental to the performance of work, as set forth below:

A. PHASE 1

1. The Contractor must provide a single report within 45 days of Contract award that provides ananalysis and description of the local governments financial numbers when compared to the most

recent audit; the County financial performance compared to budget; and verifies use of cash on amonthly basis for the last fiscal year.


a. Funds to be reviewed include:

1) All Governmental Funds (including General, Roads, Mental Health, Health, JuvenileJustice and Abuse/Neglect, Wayne County Building Authority Construction, Parks, RougeDemonstration Project, Law Enforcement, Community Development Block Grants, DrugEnforcement, Nutrition, Veterans Trust, Community Corrections, Victim Witness,Soldiers Relief, Youth Services, Community and Economic Development, Building

Authority, Stadium and Land Development, Environmental Programs, Health and FamilyServices, General Debt Service, Roads debt service, Wayne County Building Authoritydebt service, Wayne County Construction capital project, County Road Projects, OtherCapital Projects and any other such governmental funds as may be present)

2) All Proprietary Funds (including Downriver Sewage Disposal System, Rouge ValleySewage Disposal System, Delinquent Tax Revolving, Northeast Sewage DisposalSystem, CSO Basins, Jail Commissary, Parking Lots, Wetlands Mitigation, Copy Centerand any other such proprietary funds as may be present)

3) All Fiduciary Funds (including Employees pension and trust, Circuit CourtCommissioners Bailiffs pension and trust, Defined Contribution Plan pension and trust,Trust and Agency, Undistributed Tax, Library Penal Fines, Offices of the County Clerk,

the Treasurer, the Sheriff, the Register of Deeds, the Prosecutor, the Commission,Retainages, Imprest Payroll, Imprest Retirement Payroll, and any other such fiduciaryfunds as may be present).

4) Funds of the Third Circuit, the Friend of the Court, and the Probate Court.


2. The Contractor must provide as part of the report sections covering the following:

a. Prior year auditor(s) proposed journal entries to include the following:

1) Number of journal entries by fund in total and by account number.2) Dollar amount of debits and total change in fund balance.

3) Verification of recording of prior year auditor proposed entries.

4) Report on business rational and fund balance effect of unrecorded proposed entries.



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b. An analysis of budgeted year-to-date to actual year-to-date comparison of variancesexceeding 20% to include the following:

1) Report of examination by fund and account.

2) Scan detail of account activity for consistency with GAAP and for business rational ofjournal entries and report possible findings.

3) Scan detail prior year account(s) activity for consistency with current year activity, GAAP,standard journal entries, auditor journal entries and report on possible findings.


c. An analysis of prior fiscal year accounts which had an unfavorable variance where a changein budgeted amount from the original budget to the final budget caused or increased theunfavorable variance.


d. An analysis of bank account reconciliations for the most recent month completed to includethe following:

1) Reconciled book balance equals general ledger balance by fund.

2) Whether the reconciliation was completed within six weeks after month end by fund.

3) Segregation of duties in bank reconciliation process by fund.


e. An analysis of cash receipts to include the following:

1) From a sample of 10 cash receipts from the same period as the cash reconciliation

testing the timing in days between the receiving of cash and bank deposit.2) For the same transactions also report on the timing in days between the receiving of cash

and the recording of the transaction.


f. An analysis of revenue collection allocation to include the following:

1) From a sample of 10 revenue collections requiring allocation from the same period as thereconciliation testing the timing in days between the receiving of cash and the allocationto funds as required.

2) For the same transactions also report on the timing in days between the receiving of cash

and the recording of the allocation.


g. A memo on whether transfers and due to / due from transactions seem properly accountedfor and recorded by use of inquiry and or detail testing.



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1) Any specific exceptions must be noted.


h. A recommendation as to which funds, if any, should be considered for subsequentexamination as part of Phase 2.


1) The Contract Compliance Inspector (CCI) or designee will make the final determination offunds for Phase 2 examination (Notice to Proceed).


B. PHASE 2 (Optional Service)

1. The Contractor must provide a single report within 60 days of Notice to Proceed with Phase 2 bythe CCI or designee that verifies confidence in the local governments financial numbers, internalcontrols, cash activities, revenue and receivables activity, and expenditure and payable activityover a three month period.


2. The Contractor must provide as part of the report the following:

a. A memo as to the observation of the application of the COSO framework in relation to theaccounting function. Specifically addressing the five components of the COSO framework(Control Environment, Risk Assessment, Control Activities, Information and Communication,and Monitoring).


b. An analysis of bank account reconciliations for the most recent three months completed toinclude the following (not to include the month previously tested as part of Phase 1):

1) Reconciled book balance equals general ledger balance by fund.

2) Whether the reconciliation was completed within six weeks after month end by fund.

3) Segregation of duties in bank reconciliation process by fund.


c. An analysis of cash receipts to include the following:

1) From a sample of 20 (twenty) cash receipts from the same period as the cashreconciliation testing the timing in days between the receiving of cash and bank deposit.

2) For the same transactions also report on the timing in days between the receiving of cashand the recording of the transaction.


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d. An analysis of revenue collection allocation to include the following:

1) From a sample of 20 (twenty) revenue collections requiring allocation from the sameperiod as the reconciliation testing the timing in days between the receiving of cash andthe allocation to funds as required.

2) For the same transactions also report on the timing in days between the receiving of cashand the recording of the allocation.


e. A memo on whether transfers and due to / due from transactions seem properly accountedfor and recorded by use of inquiry and or detail testing.


1) Any specific exceptions must be noted.


f. An analysis from a sample of 20 transactions from the same period as the reconciliationtesting an analysis of the GAAP recording of a revenue and receivable as applicableincluding the number of days between GAAP basis existence of a receivable and therecording of the receivable.


g. An analysis from a sample of 20 grant cash receipts for the same months covered by thereconciliation testing whether the grant was a reimbursement grant, how many days aftergrant funds became available that a billing or drawndown request was made, and how manydays after request was cash received.


h. A memo on the methods used for the collection of receivables (other than tax relatedreceivables) and include a calculation of the average days outstanding for each month of theexamination period.


i. A memo on the process, authorization, recording and overall segregation of duties of thewrite off of receivables.


1) As part of the memo and for the fiscal year to date provide the number of receivableswritten off and the dollar amount of receivables written off (other than tax relatedreceivables).


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j. A memo on the following:

1) Any opportunities for revenue and or receivable process improvement.

2) Any opportunities for additional revenue sources.


k. A memo on the process, authorization, recording, and overall segregation of duties of theexpenditure process.


l. An analysis from a sample of 20 transactions from the same period as the reconciliationtesting the following:

1) Whether the accounts payable were recorded on a GAAP basis.2) Whether the transactions were properly processed, authorized, and recorded

3) Based on contractor judgment, whether any expenditures seem questionable by nature,amount, or circumstance.


m. A memo on the management of outstanding accounts payable including the process ofreviewing aging payables, authorization of payment, processing or checks, and overallsegregation of duties.


n. A memo on the following:

1) Any opportunities for expenditure and or payable process improvement.

2) Any opportunities for reductions in expenditures both short term and long term.


3. The Contractor may provide as part of the report any ideas on opportunities for Treasurys Officeof Fiscal Responsibility to improve its processes.


1.030 Roles and Responsibilities

1.031 Contractor Staff, Roles, and Responsibilities1. Contractor must identify staff who will be involved in the project, including the name of each

individual, work locations, and detailed descriptions of their roles and responsibilities.


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Note: If an overall organization chart has been developed, provide a reference to that chart as well.Note any part-time personnel.


2. Contractor must identify any potential conflicts of interest per the attestation standards established bythe American Institute of Certified Public Accountants referenced in section 1.011.


3. Specific work schedules for this project are Monday through Friday, 8:00 a.m. to 5:00 p.m. EasternTime; however, possible night and weekend hours may be required.


1.032 State Staff, Roles, and Responsibilities1. Contract Compliance Inspector (CCI): The States CCI provides oversight and monitoring of the

selected Contractors adherence to the terms and conditions of this project and the Contract.

2. Project Manager: The States Project Manager will monitor the project activities.

3. Contractors are encouraged to make recommendations concerning the appropriate roles andresponsibilities for State personnel in achieving an effective implementation of this project. In addition,work plans presented in the proposal (see section 1.041) should reflect estimated levels of effort foreach level of personnel for Contractor personnel, including any contractual employees, and Statepersonnel.

1.040 Project Plan

1.041 Project Plan Management

1. The Contractor will carry out this project under the direction and control of the CCI or designee.

2. Although there will be continuous liaison with the Contractor team, the CCI or designee will meetquarterly as a minimum, or as requested by the CCI or designee, with the Contractor's ProjectManager for the purpose of reviewing progress and providing necessary guidance to the Contractor insolving problems which arise.

3. Contractors must provide a sample project plan with proposal for the deliverables proposed in section1.022. The plan must include the details noted in section 1.041.4.


4. Within five working days of purchase order award, the Contractor must submit to the CCI or designeefor final approval a detailed project plan. This final project plan must be in agreement with theContractors proposal and accepted by the State for Contract, and must include the following:

a. The Contractor's project organizational structure.

b. The Contractor's staffing table with names and title of personnel assigned to the project. Thismust be in agreement with staffing of accepted proposal. Necessary substitutions due to changeof employment status and other unforeseen circumstances may only be made with prior approvalof the State.


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c. The project breakdown showing sub-projects, activities and tasks, and resources required andallocated to each (e.g., estimated levels of effort for each level of personnel for Contractorpersonnel, including any contractual employees, and State personnel).

1.042 ReportsThe Contractor must submit written monthly summaries of the work accomplished during the reportingperiod and notification of any significant deviation from previously agreed-upon work plans.

1.050 Acceptance Deleted N/A

1.060 Proposal Pricing

1.061 Proposal Pricing

1. For authorized Services and Price List, see Attachment A (Price Proposal). Please completeAttachment A and submit with proposal.

2. Contractors out-of-pocket expenses are not separately reimbursable by the State or local unit ofgovernment unless, on a case-by-case basis for unusual expenses, the State has agreed in advanceand in writing to reimburse Contractor for the expense at the States current travel reimbursement

rates. See www.michigan.gov/dtmb for current rates.

3. Invoicing and payment must occur per Contract Section 2.044.d.

1.070 Additional Requirements Deleted N/A


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Article 2, Terms and Conditions (See Contract)


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Article 3 Bid Process and Evaluation Criteria

3.010 Introduction

3.011 Pre Bid Meetings Deleted N/A

3.012 CommunicationsThe State will not respond to telephone inquiries or visitation by Contractors or their representatives.Contractors sole point of contact concerning the SOW is the Buyer in the Treasury Purchasing. Anycommunication outside of this process may result in disqualification or debarment or both.

3.013 QuestionsQuestions concerning the SOW are to be submitted, in writing, no later than 3:00 p.m. Eastern Time onJune 14, 2012 to:

Thomas FalikMichigan Department of Treasury430 West AlleganLansing, MI 48922

Email: [email protected]

All questions must be submitted in writing and sent as an attachment in Microsoft Word or Rich TextFormat (RTF). Changes to the SOW and answers to questions will be prepared as an addendum andissued to Contractors. The issued addendum officially revises and supercedes the original SOW. Theaddenda will be issued approximately June 15, 2012.

3.020 Award Process

3.021 Method of EvaluationIn awarding the Contract, proposals will be evaluated by a Joint Evaluation Committee (chaired byTreasury Purchasing).

3.022 Technical Proposal Evaluation CriteriaThe following chart represents the scoring of the particular factors:

Weight1. Statement of Work Responses (Article 1) 502. Staffing (Section 1.031) 50

TOTAL 100

Oral PresentationContractors who submit proposals may be required to make oral presentations of their proposalsto the State. These presentations provide an opportunity for the Contractors to clarify theproposals through mutual understanding. Treasury Purchasing will schedule these presentations,if required.

Site VisitThe State may conduct a site visit to tour and inspect the Contractors facilities. TreasuryPurchasing will schedule these visits if required.

3.023 Price Evaluation(a) Only those proposals receiving a score of 80 points or more in the technical proposal evaluationwill have their pricing evaluated to be considered for award.


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(b) Evaluation of price proposals includes consideration for a Qualified Disabled Veteran Preference.1984 PA 431, as amended, establishes a preference of up to 10% for businesses owned by qualifieddisabled veterans meeting the minimum point threshold for passing.

(c) The State reserves the right to consider economic impact on the State when evaluating proposalpricing. This includes, but is not limited to: job creation, job retention, tax revenue implications, and othereconomic considerations.

3.024 Award RecommendationThe award recommendation will be made to the responsive and responsible Contractor who offers thebest value to the State of Michigan. Best value will be determined by the Contractor meeting theminimum point threshold and offering the best combination of the factors stated in Section 3.022, andprice, as demonstrated by its proposal.

3.025 Reservations(a) The State reserves the right to consider total cost of ownership factors in the final awardrecommendation (i.e. transition costs, training costs, etc.).

(b) The State reserves the right to award by item, part or portion of an item, group of items or totalproposal, to reject any and all proposals in whole or in part, if, the best interest of the State will be soserved.

(c) The State reserves the right to consider overall economic impact to the State in the final awardrecommendation. This includes considering principal place of performance, number of Michigan citizensemployed or potentially employed, dollars paid to Michigan residents, Michigan capital investments,economically disadvantaged businesses, etc.

3.026 Award DecisionAward recommendation will be made to the Administrator of Departmental Services Division. Pendingaward recommendation approval, a purchase order will be issued authorizing services to commence.

3.030 Proposal Details

3.031 Complete ProposalTo be considered, each Contractor must submit a COMPLETE proposal in response to this SOW, usingthe format specified. No other distribution of proposals is to be made by the Contractor. The proposalmust state how long it remains valid. This period must be at least 120 days from the due date forresponses to this SOW.

3.032 Efficient ProposalEach proposal should be prepared simply and economically, providing a straightforward, concisedescription of the Contractors ability to meet the requirements of the SOW. Fancy bindings, coloreddisplays, promotional material, etc., will receive no evaluation credit. Emphasis should be oncompleteness and clarity of content in the format specified.

3.033 Price and NotationsPrices and notations must be typed or in ink. Prices must be for new items only unless specifiedotherwise in the SOW. The person signing the proposal should initial any form of pricing correctionsmade to the proposal by the Contractor before submission in ink. In the event of un-initialed pricingcorrections, the Buyer, with management approval, may require an affidavit from the Contractorconfirming the price correction was made before the bid submission.

3.035 Proposal FormatThe following information must be included in all proposals. Contractors must respond to all sections ofthe SOW. Failure to respond to every section in each Article could result in disqualification from thebidding process. Uniform Resource Locator (URL) links to information will not be considered forevaluation. The State does not control the data and cannot assure that it is static and not subject tochange. We will only evaluate the materials submitted to us by the bid due date and time and in


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accordance with Section 3.040 Submitting Bids and Proposals. Proposals should be formatted to includeeach of the following sections, which should be clearly identified using the same format as the SOW iswritten in and with the appropriate headings:

Article 1 Statement of Work Contractor must respond to each section. Proposal must includedetailed responses to all tasks as requested in Article 1. Contractors must copy these sections,and provide Contractors response in the area specified for Contractor Response. This area hasbeen designed to expand as necessary

3.040 Submitting Bids and Proposals

3.041 Sealed Bid ReceiptPROPOSALS MUST BE RECEIVED IN TREASURY PURCHASING ON OR BEFORE 3PM ON THEDUE DATE SPECIFIED ON THE COVER PAGE OF THIS SOW. CONTRACTORS ARE RESPONSIBLEFOR SUBMITTING THEIR PROPOSALS TO TREASURY PURCHASING ON TIME. PROPOSALSTHAT ARE RECEIVED AFTER THE SPECIFIED DUE DATE AND TIME CANNOT BE CONSIDEREDUNLESS (a) ALL OTHER BIDS RECEIVED ON TIME DO NOT MEET SPECIFICATIONS, OR (B) NOOTHER BIDS ARE RECEIVED.

3.042 Proposal Submission

Proposal is due June 18, 2012 at 3:00 p.m. Eastern Time or as soon as possible. Submit an electroniccopy of your proposal via e-mail to [email protected] in a Microsoft Office format. If an electroniccopy of the proposal is not available, it can be mailed to the following address:

Michigan Department of TreasuryPurchasing SectionAttn: Thomas Falik430 West AlleganLansing, MI 48922.


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SIGNATURE AUTHORITY

I/We certify that the undersigned is authorized to submit bids/quotations on behalf of__________________. The information provided about __________________________ ability toprovide the goods and/or services outlined in this SOW document is true and accurate. I/We understandthat our product and/or service offerings must be in compliance with all requirements of this SOWdocument.

___________________________________________Name of Contractor/Supplier

____________________________________________________________________________________________________________________________________________________________________________Address of Contractor/Supplier

___________________________________________Telephone and Fax No. of Contractor/Supplier

___________________________________________

E-mail Address of Contractor/Supplier

____________________________________________Signature of Contractor/Suppliers Authorized Representative

___________________________________________Title of Supplier Representative

______________________________Date

____________________________________________Additional SignatureContractor/Suppliers Authorized Representative

___________________________________________Title of Supplier Representative

______________________________Date


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Attachment A, Price Proposal

Provide the price per deliverable for the proposed services in section 1.022.

Deliverable Price

A. Phase 1

1. Report within 6045 Days of Contract Award $

A. Optional Service

1. Report within 60 days of Notice to Proceed (PROVIDE UNITPRICE PER FUND)a. 5 or Less Funds Total $b. 6 to 10 Funds Total $c. 11 to 15 Funds Total $d. 16 to 20 Funds Total $

e. 21 to 25 Funds Total $f. 26 or Greater Funds Total $

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