SPECIFICATIONS by Levone

VIEWS: 352 PAGES: 59

									REQUEST FOR PROPOSAL (RFP)

KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY (KHEAA)

ISSUE DATE: September 17, 2002

Post Office Box 798 Frankfort, KY 40602-0798
ATTN: Dave Wellman, Business Development Advisor PHONE: (502) 696-7493 FAX: (502) 696-7345 DEADLINE FOR SUBMISSION OF PROPOSALS: October 17, 2002 TIME: 4:30 p.m. EST NOTIFICATION OF AWARD: December 17, 2002 SUBJECT: Contract for secure hosting services, portal services, integration services and a full suite of consulting/application configuration services for education planning applications. ATTENTION: This is not an order. Read all instructions, terms and conditions carefully. IMPORTANT: Sealed proposals must be received by the date and time indicated above. Absolutely no proposals will be accepted beyond this period. This RFP package includes the following items:  List of Incorporated Documents that must be included as part of Offer  Specifications  Instructions  General Conditions  Special conditions (if any)  KHEAA Vendor Business Practices Statement  Attached reference documents (if any) SIGNATURE REQUIRED: This RFP cannot be considered valid unless the bidder signs and prints or types his or her name, firm, address, telephone number, and date in the spaces provided herein. The proposal shall be signed by an authorized agent. SUBMIT ORIGINAL BID AND FIVE (5) COPIES AND ALL RELATED MATERIALS TO THE PERSON INDICATED ABOVE AT THE ADDRESS INDICATED, ALL CHARGES PREPAID: Facsimiles will be accepted if legible, complete, signed and conforming to the other requirements of the Request for Proposals and Instructions. LIST OF DOCUMENTS TO RETURN WITH OFFER IN ADDITION TO THE INFORMATION DESCRIBED IN THE SPECIFICATIONS, THE FOLLOWING DOCUMENTS SHALL BE SUBMITTED BY THE OFFEROR TO KHEAA, AND TOGETHER WITH ALL PROVISIONS OF THIS SOLICITATION, INCLUDING GENERAL AND SPECIAL CONDITIONS, SHALL BE DEEMED INCORPORATED BY REFERENCE INTO ANY CONTRACT(S) RESULTING FROM THIS SOLICITATION. SIGNED OFFER (PROPOSAL) SIGNED KHEAA VENDOR BUSINESS PRACTICE STATEMENT (Attachment 4) FEDERAL FUNDS OR GRANTS WILL BE USED IN THE PURCHASE OF SERVICES SPECIFIED IN THIS INVITATION.

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SPECIFICATIONS
INTRODUCTION On behalf of the entities listed herein, we seek to develop and implement a single, simple, userfriendly, on-line point of reference for students, parents, nontraditional students, high school counselors, and others in the education community who:  seek balanced, well-organized information about every postsecondary education institution in the state - including distance learning in Kentucky - and how to make the transition from high school to college or university;  seek basic, understandable information about financing higher education, including the ability to search for scholarships and information about applying for loans and grants;  want to be able to apply on-line for loans and other financial aid;  want to apply for admissions to institutions on-line;  want e-mail or phone access to officials at institutions or state agencies for more help (a centralized help desk, as well as direct links to college officers);  would like to check the status of their KEES dollars on-line, and be able to calculate their estimated financial need on line;  want an on-line planning system that will allow students to plan early in their high school careers to meet college/university entrance requirements;  seek information about careers, including education needed in each area;  seek specific information about opportunities and challenges for adult learners;  seek an electronic transcript transfer functionality between high school and college  from a university's perspective, it's important that the system allows them to upgrade their specific institutional information as needed, process application fees electronically, and allows the integration of admissions data directly into college/university administrative software systems. In short, we seek a Master Web Site for all Postsecondary Education in Kentucky that will be viewed and used by Kentuckians as the central point of contact for any and all information about postsecondary educational opportunities in Kentucky. GENERAL INFORMATION
The Kentucky Higher Education Assistance Authority (KHEAA) is a public corporation and governmental agency and instrumentality of the Commonwealth of Kentucky (Commonwealth).

This solicitation is being issued to establish a contract for secure hosting services, portal services, integration services and a full suite of consulting/application configuration services for education planning applications. Organizations and agencies in the executive branch and educational institutions in the public sector may use the resulting contract. The successful vendor must be capable of developing and implementing an integrated, systematic web portal to provide information about postsecondary education in general and in the Commonwealth of Kentucky specifically. Existing systems should be integrated when appropriate and links to existing databases provided where integration of a database either would
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be cumbersome or duplicative. The site should be interactive and should include e-commerce, email, and chat rooms. The site should include the ability to input and manipulate Individual Graduation Plans, provide transcripts with student applications to institutions, and allow a student to receive feedback from an institution about such things as completeness of courses required for acceptance, and acceptance into an institution and a program. The site should provide a comprehensive bridge between admissions, student outreach, and financial aid. In particular, the site must incorporate components of already existing sites and include additional modules such as:       Career Exploration Selecting a College Academic Planning Distance Learning Financial Aid Admissions Applications

Goals of the Project 1. Provide online, web-based student service systems that will encourage students to attend college, aid in the college selection and admission process, guide students toward higher education opportunities, and assist students in understanding their financial aid opportunities and eligibility; 2. 3. 4. 5. Simplify the college exploration, selection and admission processes for prospective students; Obtain participation by all public and private colleges and universities in Kentucky; Provide an effective outreach component to encourage secondary school students to consider, apply to, and attend post-secondary institutions; Present financial aid opportunities available to assist in the payment of the cost of post-secondary education; provide a comprehensive program of default aversion for those students who must borrow to finance their education; Improve institutions' abilities to quickly and cost-effectively respond to applicants' questions about eligibility and opportunities; Provide means for applicants to communicate directly with state agencies and college and university staff; and Provide an electronic transcript capability combined with electronic admission applications having capabilities to receive transcripts from all high schools and post-secondary institutions in the state of Kentucky, securely store student transcript data, and send transcripts to all postsecondary educational institutions;
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6. 7. 8.

9. 10.

11.

Help establish, maintain and improve relationships between appropriate state agencies and college and university staff; Include the ability to input and manipulate Individual Graduation Plans, provide transcripts with student applications to institutions, and allow a student to receive feedback from an institution about such things as completeness of courses required for acceptance, and acceptance into an institution and a program. Integrate existing systems, web initiatives, architecture, portals, and databases of all parties hereto with the website operated and maintained under the Project when appropriate and links to existing databases should be provided where integration of a database either would be cumbersome or duplicative.

I.

COMMODITIES / SERVICES REQUESTED

Statement of Work / Services Required Background, Governance, and Present System Summary The Kentucky Higher Education Assistance Authority is the lead agency for the Go Higher, Education Pays Web Portal. Representatives from the Kentucky Higher Education Assistance Authority, Kentucky Higher Education Student Loan Corporation, Council on Postsecondary Education, Kentucky Department of Adult Education and Literacy, Kentucky Community and Technical College System, Kentucky Department of Education, Kentucky Virtual Library, Kentucky Virtual University, the Association of Kentucky Independent College and Universities, and the State Treasurer’s Office will serve as the Advisory Committee for the Go Higher, Education Pays Web Portal for the Commonwealth. The Advisory Committee will provide working level activities and logistical planning guidance. Issues such as funding for enterprise components, application configuration, priorities/funding, customer service fees and data security will be reviewed by the Advisory Committee. The Advisory Committee will have input on all strategic policies governing the Go Higher, Education Pays Web Portal and make recommendations to KHEAA. KHEAA will authorize expenditures for each component of the site development per the approved budget. The Advisory Committee has conducted an assessment of the Go Higher, Education Pays Web Portal vision and initiatives and outlined concerns listed below: From: To: Each agency has its own portal Producer-centric design Multiple passwords/no passwords Generic; not particularly relevant Hard to find needed information
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A.

B.

C.

A single portal for all services User-centric design One password Personalized and highly relevant Most information within two clicks

Wide variety of user experiences Branding and marketing of each Training for each new service

One user experience Website Leverages the Go Higher, Education Pays brand No training required

D. The target audiences for the Go Higher, Education Pays Web Portal are middle and high school students, counselors, and parents, adults who are potential postsecondary education students, and workforce development, with HR access for workers’ skill upgrades and educational opportunities for displaced workers. Objectives for Target Audiences are: 1. Adolescent and Young Adults a. Motivate middle and high school students to attend college; b. Motivate young adults who have left school to continue their formal education; c. Persuade students to enroll in more rigorous courses in secondary school to prepare them for college; b. Increase awareness of the resources available to assist students and young adults in getting into and paying for college. c. Increase the college-going population in Kentucky. 2. Adults a. Increase the perceived value of training and educational credentials in meeting life goals; b. Improve knowledge of the amount and quality of current educational and training opportunities available; c. Increase knowledge of the range of resources available to help audience members achieve educational and training goals; d. Increase knowledge of how to take advantage of available postsecondary opportunities and resources. 3. Education Administrators a. b. Assist students in planning educational future; Anticipate course demand;
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c. d.

Recruit students into high-demand disciplines; Facilitate and eliminate paperwork required for postsecondary application, admission, and funding.

4.

Workforce Development a. Provide information about and access to training and courses important to upgrade work skills; b. Access employment databases and online educational opportunities for displaced workers.

E.

The Advisory Committee also identified the following components to be included in the Offeror’s work plan: 1. Include touch points for lifelong learners (.i.e. Customer Relationship Managers) 2. Integrate existing web initiatives, architecture, portals, and databases at the: a. Council on Postsecondary Education, b. Department of Adult Education and Literacy, c. Kentucky Community and Technical College System, d. Kentucky Department of Education, e. Kentucky Higher Education Assistance Authority, f. Kentucky Higher Education Student Loan Corporation, g. Kentucky Virtual Library, h. Kentucky Virtual University, i. State Treasurer’s Office, j. Association of Independent Kentucky Colleges and Universities, and k. Kentucky Savings Plan Trust 3. Create a single authentication point with different levels of access, depending on the user’s status as postsecondary institution or high school administrator, counselor, teacher, parent, or student; 4. Provide access to an interactive site that: a. contains a personal portal with customized front page that includes educational background, work experience, training programs, and certifications to be used while navigating the system; b. allows students to develop and update Individual Graduation Plans and
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education plans; c. performs degree audits and scholarship searches with notification of available scholarships; d. creates an institutional interface for CAS and DARS; e. provides campus tours; f. includes information about financial aid, planning for college, career planning, and selecting an institution; g. allows online application, e-admission, e-transcripts, and a transcript repository to transfer data between the Kentucky Department of Education and the Kentucky Community and Technical College System and other postsecondary institutions; h. allows coordinated advising for students in grades 6-12 to identify career goals and to track students’ interests and abilities, and advising for adults to identify career goals, track interest and abilities, create an education plan, and locate training opportunities and job banks; i. allows distance learning and online or call center advising; j. offers access to ask-an-expert and tutoring; k. posts news and announcements about career fairs, speakers, and meetings; 5. Coordinate with Kentucky Higher Education Assistance Authority and the Kentucky Higher Education Student Loan Corporation to: a. Integrate call centers; b. A seamless link to automatically populate data into FAFSA on the Web; c. Access FAFSA online; d. Provide links and information about: i virtual consumer credit courses; ii. scholarship searches and KEES eligibility; iii. loan servicers; iv. income estimator, average indebtedness, and budget help and repayment calculator; v. deferments, alternate payment methods, forbearance, loan consolidation, and loan forgiveness, vi. interactive database for total debt and debt repayment; vii. credit bureaus; viii. toll-free numbers; ix. career planning; x. comprehensive overview of Student Financial Aid: How to Apply? xi. Different types of aid, etc.; xii. Default Aversion Module to include:
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(1) (2) (3) (4) (5)

Guidelines regarding appropriate maximum loan indebtedness amounts for specified careers. A Career Planning Module to assist borrowers in identifying appropriate careers. Information that specifies the consequences of student loan default. Guaranty Agency contact information (telephone number and electronic mail address) for use by borrowers seeking assistance in avoiding default. Links to default prevention web sites, an example of which is the National Foundation for Credit Counseling: http://www.nfcc.org.

6.

Coordinate licensing agreements and proprietary information on existing databases and websites; Develop a timeline for work plan implementation; Develop a budget for producing and implementing the work plan; Identify cost savings that justify personnel and resources needed to create and implement the site; Develop goals, projected outcomes (i.e., enrollment and retention), and ongoing evaluation measures to demonstrate the site’s effectiveness and determine if adjustments are needed, in conjunction with the Advisory Committee; and Meet regularly with the Advisory Committee and submit regular briefings as specified by the Advisory Committee. Develop an aggressive marketing plan that will inform Kentuckians about the site’s existence and train counselors and teachers to use the site. Develop a cost estimate and recommendation for the ongoing maintenance of the Master site; indicate whether or not the vendor is proposing to provide ongoing maintenance of the site or simply a methodology for selecting an appropriate vendor.

7. 8. 9.

10.

11.

12.

13.

F.

Several agencies deliver services through the use of touch-tone phone and Interactive Voice Response (IVR) systems. In September 2001, the Commonwealth established IVR service contracts with GovConnect and Anexsys to provide a full range of call/data center and consulting services for this medium. Several agencies have developed backend self-service database facilities that allow customer access through a browser and/or touch-tone phone interface. The
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Vendor awarded a contract through this solicitation shall be required to cooperate/work with these existing IVR providers throughout the life of the contract. G. An e-Payment companion contract will be awarded to provide standardized credit card, electronic funds transfer and electronic check processing through a single Vendor/provider. This new payments contract will eventually allow all Web, IVR and across the counter payments to be consolidated with one provider. The Cabinet for Finance and Administration will be responsible for development of the RFP, the e-Payment award process and the resulting contracts. The e-Payment solicitation (S-02 185366) has been released for bid. All Vendors’ responding to this new solicitation shall review and understand the e-Payment solicitation and how the Commonwealth plans for these two contracts to be used to service the Go Higher, Education Pays Web Portal. Prior to developing a response to this solicitation, each Vendor shall review the partner agencies’ and universities’ web sites and the various Sites/URL ‘s identified in Attachment 1. These sites provide a wide range of information that will be helpful in developing a proposal. Vendors are encouraged to partner with other providers in preparing a response and assembling the necessary service components to meet the long-term Go Higher, Education Pays Web Portal needs. A contract will be awarded to provide the following services: 1. Infrastructure Services and Consulting a. b. c. d. e. Secure Hosting Services Portal Development and Portal Operations Support Site Design, Creative Services and Content Management Security Services Integration Services i. IVR ii. Credit Card, EFT, Electronic Check and Debit Cards. iii. Directory Services iv. Financials Integration v. Streaming Media – Audio/video vi. Other services as they are identified 2. Analysis and Application Configuration Services

H.

I.

J.

a. Project Management Services b. Application Migration Services
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c. Analysis, Process Improvement and Design d. Application Configuration Services e. Applications Roll-out and Operations Support II. SCOPE OF WORK A. With this solicitation, KHEAA plans to establish a contract with a single IT service organization to provide the following education planning services: 1. 2. 3. 4. 5. B. Hosting Services Portal Services Infrastructure Services (Design, Security, etc.) Integration Services Analysis and Application Configuration Services

A companion solicitation is being issued by the Finance and Administration Cabinet to establish an e-Payment processing facility with a single provider to process Web/Interactive Voice Response (IVR) financial transactions from citizens, regulated constituents and businesses. The transactions will include: 1. Credit Card Verification and Processing 2. Electronic Funds Transfer (EFT) 3. Electronic Checks 4. Debit Card Verification and Processing Vendor(s) awarded a contract through this solicitation shall cooperate and work with: 1. 2. Other third party hardware, software and service providers under contract with the Commonwealth. Commonwealth IT infrastructure, systems & applications, and resources & organizations.

C.

D.

Vendor and Service Requirements 1. Proposal Organization The vendor proposal shall be divided into the following sections: a. Mandatory Vendor Qualifications Section II.D.2. b. Vendor Responsibilities II.D.6. c. Technical Approach, Ability and Experience II.D.14. i. General Requirements II.D.15 ii. Hosting Requirements and Background II.D.18. iii. Portal Services II.D.36. iv. No-Cost Deliverables II.D.48.
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v. Consulting and Applications Configuration Services II.D.49. 2. Mandatory Vendor Qualifications The Vendor shall meet or exceed all of the following requirements itemized in II.D.1. Proposals shall provide detailed documentation (written justification, sites/IJRLs, contracts, contacts, or any other form of documentation) to document compliance with these mandatory requirements. Reference checks will be utilized to ensure accuracy and compliance with these requirements. 3. Portal/hosting and Enterprise Application Experience The Vendor shall provide reference information on sites/experience using Attachment 3. a. Minimum of two (2) public sector portals in production for a minimum of six (6) months b. Experience in e-Procurement Systems c. Experience with Back-end Integration of large-scale enterprise systems 4. Self-Service Application Development Experience and Ability

The Vendor shall provide reference information on this application using Attachment 3. The Vendor shall meet and/or exceed the application requirements outlined below. The applications shall have been developed and implemented by the Vendor and in production for six months or more. Minimum of one (1) application involving postsecondary education, distance learning, or education administration (tuition/fees payment, registration, or other applications). Note: If the Vendor exceeds this mandatory requirement and provides documentation of additional portal sites and self-service applications, additional points may be awarded during the evaluation process. Additional points may also be awarded for existing/deployed software that supports a class of applications as opposed to individually developed software examples targeted at a single application. 5. Business/Systems Integration Experience, Ability and Performance

The Vendor shall provide a minimum of five (5) current customer references for existing business/service accounts that have been in place for at least six months. Two (2) of these references shall be from the public sector and three from the private sector. If the Vendor exceeds these mandatory requirements and provides the reference form/information (Attachment 3) for additional business and systems integration
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accounts, additional points may be awarded during the evaluation process. These references shall be willing to provide qualitative responses to business and systems integration questions from the Commonwealth’s evaluation team. Questions will cover but are not limited to the following: a. Business Issues 1. Quality of deliverables and 2. Timeliness of deliverables 3. Cost and value of deliverables and work products 4. Staff skills, responsiveness and professionalism 5. Management responsiveness, adaptability and professionalism 6. Company vision, business model, direction and long-term viability 7. Other business and issues as may be determined Systems Issues 1. Technical direction and capabilities 2. Security of the hosting facilities 3. Reliability of hosting facilities 4. Vision, reliability and performance of the portal and portal facilities 5. Application vision, direction and diversity of packaged solutions 6. Other systems and technical issues as may be determined

b.

6.

Vendor Responsibilities Vendor responsibilities are outlined in II.D.7 though II.D.13.

7.

Sale/Release of Citizen, Constituent and Business Records The Vendor shall state in their proposal that they understand that under no circumstance shall any customer information collected through the portal registration process, application transactions and/or by any other means be sold or provided free of charge for use by the Vendor/subcontractors or any other third party.

8.

Commonwealth Information Technology Forms Vendor/s and subcontractors shall be required to adhere to and sign all applicable Commonwealth policies and standards related to technology use and security. Vendors shall state their commitment to meet this requirement.

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9.

Documentation of Vendor Financial Resources The Vendor shall provide documentation of sufficient financial strength and resources to deliver the scope of services detailed in this RFP. Documentation shall include the last two years’ annual financial statements or independent audited financial statements. A statement shall be included as to whether the audited financial statements provided indicate a going concern disclosure and if so, an explanation of the going concern disclosure and documentation regarding whether and to what extent there is a positive cash flow from operating activities for the Vendor’s current operating period. Knowledge Transfer Knowledge transfer is an underlying requirement for all services (hosting, integration, consulting, and application configuration) awarded through this RFP. Commonwealth staff will be encouraged to work closely with the Vendor and the Vendor is expected to provide requested information on tools, approaches, and/or methodologies to allow state staff to obtain expertise. The Vendor shall describe their experience, approach and ability to assist with knowledge transfer.

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11.

General Planning Cost Estimates General planning (non-binding) cost estimates including the requested cost/funding alternatives shall be provided free of charge to Customers that are authorized to use the contract awarded through this RFP. More detailed cost estimates with requested cost/funding alternatives that include a requirements analysis shall be binding on the Vendor. Commonwealth e-Payment Gateway All applications and facilities shall be integrated with the Commonwealth e-Payment gateway. This gateway is described in Solicitation S-02 185366. The Vendor shall provide a Statement of Acknowledgement that they will comply with this requirement. IVR Outsource Service Providers Integration with existing lVR outsource service providers is required. KHEAA and the Customers reserve the right to request and pay for the development of an enterprise middleware module for lVR integration. Subsequent to the development of this module, GOT/agencies shall be able to use/reuse this module for any or all future applications at no additional cost to the Commonwealth. The Vendor shall provide a Statement of Acknowledgement that they shall comply with this requirement. See Attachment 1, Items 2 - 5 for access to these contracts.

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13.

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14.

Technical Approach, Ability and Experience II.D.14. through II.D.17. detail KHEAA’s and the Customer’s general requirements and expectations regarding the Vendor’s ability to provide a high level of service and expertise to the Commonwealth of Kentucky. General Requirements General requirements include general guidelines of what is expected of the Vendor(s) in their response to this proposal. These requirements are detailed in II.D.1. Organization, Staffing and Service Location/s Proposals shall include an organization chart identifying the Vendor’s overall business structure. A comprehensive staffing profile shall outline Vendor staff responsibilities and skills available to assist KHEAA and the Customers in the following service areas: a. Infrastructure Services and Consulting i. Secure Hosting Services ii. Portal Development and Portal Operations Support iii. Site Design, Creative Services and Content Management iv. Security Services v. Integration Services IVR Credit Card, EFT, Electronic Check and Debit Cards Directory Services Financials Integration Streaming Media — AudioVideo Other defined services as they are identified. b. Analysis and Application Configuration Services i. Project Management Services ii. Application Migration Services iii. Analysis, Process Improvement and Design iv. Application Configuration Services v. Applications Roll-out and Operations Support

15.

16.

17.

Process Improvement The Vendor shall help agencies understand how processes can be improved and streamlined by deploying them as Web/IVR applications and in fostering partnering and cooperation among agencies that deliver services. Vendor responses shall describe proposed processes, techniques and plans for:
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-

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Locating and re-structuring duplicate or redundant information, data, and services that are being delivered to overlapping customer bases Combining information into a single system to improve customer service and raise program efficiency Fostering a high degree of partnering among agencies and government entities Conducting education programs to disseminate information on innovative ways to use the Go Higher, Education Pays Web Portal Facilitating the establishment and management of agency, university, and Vendor partnerships that would plan and develop on-line services Reuse of approach, methods and programming modules to reduce development, implementation and support time/costs.

18.

Hosting Requirements and Background II.D.19. through II.D.22. provide general information relative to what KHEAA’s and the Customer’s expectations are relative to the Vendor’s approach to providing hosting services. Hosting Background KHEAA and the Customers are seeking to acquire portal hosting capabilities to support current and future education planning applications. Current Commonwealth education planning applications are hosted at several different locations and various agency locations. The Commonwealth may elect to transfer all existing education planning applications to the facilities established as a result of this contract, but is not required to do so. The Commonwealth desires to have all education planning applications hosted at a single facility but may elect to continue to maintain separate hosting facilities in addition to the facilities established as a result of this contract. Hosting Options/Requirements KHEAA is seeking three primary options for hosting portal applications. Vendors shall provide the requested hosting information within the proposal and shall bid one or more of the options listed below. a. The Vendor owns all equipment and software and houses it at a remote hosting site operated and managed by the Vendor. b.. The Vendor owns all equipment and software and houses it at the Commonwealth Data Center in Frankfort. The Vendor’s staff manages the equipment and software.

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20.

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c.

KHEAA owns all equipment and houses it at the Commonwealth Data Center in Frankfort. KHEAA purchases or leases required portal software from the Vendor. The Vendor’s staff manages the equipment and software.

For options a and b, above, the Vendor shall be responsible for all costs associated with the acquisition, installation, and maintenance of the hardware and software, as well as any telecommunication connections between the Vendor’s servers and the state’s servers to support the portal. For options b and c, above, KHEAA expects to house the portal production servers and test servers at the Commonwealth Data Center. Vendor staff necessary to operate and manage the portal may be housed at any location in the continental United States. a. Remote, Secure Vendor Location (Sourced hosting, Option a above)

Vendor Housing Arrangement: All portal servers, support staff, and operations staff shall be located in the continental United States. For this option, the Vendor shall be responsible for all housing arrangements for the portal including all equipment, software and telecommunication connections. If the Vendor desires to use leased line connections to a remote hosting site, these connections shall be protected by a network security firewall in accordance with existing Commonwealth standards. If the Vendor proposes to use any public non-secure medium (e.g. the Internet), it shall be the Vendor’s responsibility to build and maintain a Virtual Private Network (VPN) using IETF standard protocols for encryption and key management (IPSEC/IKE). A firewall shall also be required for the VPN. The above standards cover all telecommunication channels associated with this contract: i.e. Vendor to State, Vendor to IVR service provider, and other services as they are defined. The Vendors shall describe in detail the design of their firewall configuration. The Vendor shall also describe the approach, tools, methodology and experience in managing secure connections/hosting facility at the Vendor’s site. b. Commonwealth Data Center as Hosting Location (Options b and c, above) The portal production servers and test servers will reside in space provided by the Commonwealth within the Commonwealth Data Center at 101 Cold Harbor Drive in Frankfort Kentucky. For Option b, the portal Vendor
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shall provide all equipment and software required to support the portal. For Option c, the portal Vendor shall specify all equipment and software required to support the portal, which would then be leased or purchased by KHEAA. Locating at Commonwealth Data Center would facilitate connections to state servers and eliminate some security issues on the transferring of files to and from the Commonwealth and Vendor servers. Attachment 1, Item 1 defines the existing facilities that are available and their current associated costs. These costs are re-evaluated annually and may be adjusted as appropriate during the life of the contract. The Vendor shall pay KHEAA for any services provided under this arrangement. The Vendor shall describe the approach, tools, methodology and experience in managing a secure hosting facility at the customer site under these two (2) options. 21. Hosting Turn Over Plan At the conclusion of this contract, or at the end of any contract period should KHEAA elect to renew, it will be necessary to turn over all operation and support of the portal to KHEAA staff (or KHEAA’s agent). A turn over would also be necessary in the event that the Vendor was cited for non-performance under the terms of the contract resulting from this RFP. It is essential that both Vendor and KHEAA staff are prepared to transition the operation and support of the portal to the Commonwealth at any time. Accordingly, prior to production use of any facilities resulting from this contract, the Vendor shall develop and provide a Hosting Turn Over Plan, to be approved by the KHEAA. This plan shall be updated annually for the duration of the contract. This plan shall describe, in detail, the process the Vendor will use to turn over all hosting services and support to KHEAA staff (or KHEAA’s agent) whenever necessary. The Hosting Turn Over Plan shall: a. Identify and document all equipment that KHEAA would have to purchase in order to duplicate the Vendor’s secure server configuration. b. Specify all software that would need to be acquired and the licensing terms and pricing for acquiring the necessary software, whether from the Vendor or any other software provider. c. Include documentation as to how the software and hardware should be configured in order to successfully operate the portal. d. Specify staff resources the Vendor is willing to commit to ensure a successful turn over. e. Estimate KHEAA’s staffing requirements to support the system, i.e. skill levels, FTE’s etc.

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22.

Hosting Audit Requirement The Vendor shall define the parameters of a comprehensive security audit for hosting services provided as a result of this solicitation. KHEAA will review and must approve the comprehensiveness of the proposed security audit.

The Vendor(s) shall: describe their plan for independent security audits and provide technical specifics relative to those audits, ensure that the security audit is performed on a quarterly basis, arrange to have audits conducted by an unbiased third party at no cost to the Commonwealth, submit for approval, the name and background of the third party auditor, and provide KHEAA their plan for correcting or remedying any audit exceptions identified as a result of the security audit within sixty (60) days of completion of the audit.

23.

Disaster Recovery and Business Continuity Plan The Vendor shall describe an alternative processing arrangement adequate to resume, within 24 hours, the hosting services provided under the three alternatives described in this solicitation, in the event the portal site or equipment is unavailable due to either human error, equipment failure, man made or natural disaster. The Vendor shall describe in detail their recommended approach for alternative processing arrangements, identify their alternative processing site and their disaster recovery testing cycle. The Vendor shall also include network connectivity and routing to the Commonwealth’s network and/or Internet as part of the plan.

24.

Network Topology In order to ensure adequate network performance, the engineering of network connections between any portal servers, KHEAA and the other agencies, and their respective Internet Service Providers (ISP) need to be understood. Proposals shall describe how the portal server(s) would be connected to the Vendor’s Internet Service Provider and to its respective Tier 1 ISP, and how the connection will be established between the portal servers and KHEAA. The description shall address, to the extent possible, how the Vendor’s facilities and ISP connections will be engineered to maximize end-to-end performance and minimize the number of router hops in reaching both the Internet backbone and KHEAA’s ISP. Refer to Attachment 1, Items 6 and 7, to view the Sample Network Security
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Topology Diagram that documents the Commonwealth’s connection to its ISP and the Internet backbone. 25. Hosting Performance and Scalability The Commonwealth desires to offer an education planning portal that delivers online services to customers in a highly responsive and efficient manner. This mandates that the servers and network have sufficient capacity to deliver transaction results back to customers within a timeframe that is acceptable to KHEAA. This also implies that any hosting solution be scalable enough to meet unanticipated workload demands while delivering acceptable response times. Vendors shall describe the response time objectives they recommend for the hosted education planning applications, and describe their experience in setting and meeting response time objectives for other portal customers. Vendors shall also describe the scalability of their recommended hosting approaches and provide sufficient documentation that they understand scalability limits for the proposed platforms, and have delivered highly scalable education planning solutions to other customers. 26. Network and Server Performance Measurement Network management and monitoring tools can facilitate monitoring and measuring the end-to-end performance experienced by end users. Vendors shall describe how they propose to provide performance measurements and regular reports, on the performance experienced by users from different locations including, but not limited to a workstation on the Commonwealth’s Intranet in the Frankfort vicinity, and a workstation using a State-supplied dial-up account. Performance management tools must provide an integrated and time-synched mechanism with which KHEAA and the Vendor can monitor server and network performance of all aspects of the transaction, excluding any client-side performance monitoring. Vendors shall include a description of which automated tools would be employed and how on-line access to performance reports would be provided to the Commonwealth. The Vendor shall also describe any use of subcontractors or out-sourced services to perform Web site monitoring service functions. 27. Performance Monitoring and Problem Resolution — Hardware and Software Vendors shall describe how performance monitoring and problem resolution would be performed for the portal production environment. The Vendor shall show how this plan would respond to system malfunctions, and diagnose and solve problems within a time period to be agreed upon
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with KHEAA. Procedures shall be included for interfacing and consulting with hardware and software vendors to identify and correct problems. Maintenance shall be performed during times that will not adversely impact daily operations. The Vendor shall be prepared to coordinate portal maintenance schedules and procedures based on the KHEAA’s requirements. The Vendor’s plans for regularly performing normal and preventive software maintenance shall be included in the proposals. 28. Portal Availability The Commonwealth portal shall be operational and available to users twenty-four (24) hours a day, seven days a week, 365 days per year. The only exception will be for pre-defined systems administration and maintenance. Individual applications may be unavailable based on the individual agency legacy application operational schedule. Scheduled portal downtime must be coordinated with and approved by KHEAA with a minimum of seven (7) days advance notice prior to performing the scheduled downtime. Scheduled downtime shall be scheduled during offpeak hours. The Commonwealth normally schedules Internet downtimes from 2:00 a.m. to 4:00 a.m. on Sunday mornings. Vendors shall describe their approach and experience on portal availability and the scheduling of routine maintenance downtime. 29. Service Level Agreements (SLAs) Given the magnitude and scope of the Commonwealth’s portal endeavor, it is important that the Vendor and the Commonwealth enter into a contractual relationship that explicitly defines SLAs and commitments. It is the intent of this section to specifically define the minimum SLA criteria that is desired by the Commonwealth. The technical requirements that are presented throughout this RFP document represent the Commonwealth’s minimum requirements. The Vendor is encouraged to exceed these minimum requirements and should document examples in their response to the RFP proposal where applicable. The Vendor should consider carefully what infrastructure and other resources would be required to meet these SLAs. Monthly diagnostic reports in the categories outlined below will be used to verify and analyze Vendor performance with the defined SLAs. KHEAA shall have access to all performance data, in raw and processed form, for the purpose of SLA verification. Proposals shall describe how the Vendor will measure and report on each performance category below. These reports shall be provided monthly at a minimum. Proposed measurement and reporting tools shall be described,
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as well as how the KHEAA would receive the reports —e.g. via on-line access, CD-ROM, or other means. a. Portal Availability This SLA shall address overall portal availability and performance. Portal availability includes hardware, system software, telecommunications, and shared portal interface applications. b. Portal Security Management This SLA shall address portal security management performance. Security management includes all components that comprise the security barriers to the portal, the data while being transmitted to or through the portal, and data available to the portal. The security barriers may include firewalls, intrusion detection, virus protection, access control, authentication and other mechanisms and techniques to ensure the system and data is protected. c. Portal Application Availability This SLA will address the performance of any individual applications provided by the Vendor where the impact to the user community is isolated to the specific application. This SLA does not address the entire aggregate of all applications on the portal. For example, this SLA would apply if a Driver’s License Renewal application was not available while all other applications were operational. 30. Data Repository and Data Recovery Vendors shall describe how they will provide for the storage and management of data that is being utilized to provide portal services to the public. This requirement shall include provisions for backup copies of primary data so that recovery or reconstruction of lost data does not involve the use of the primary data or original data sources. 31. Directory Services The Commonwealth’s enterprise standard deployed for internal directory services (IDS) is Microsoft Active Directory. The adopted architecture for the internal directory service is a single forest domain. Any solutions proposed shall use and integrate with the Commonwealth’s Active Directory infrastructure, depending on the specific situation. KHEAA will administer and control access to information by internal and external
21

permissions. Enterprise directory services can provide for a single point of administration and single sign-on if desired. Proposals shall address how the Vendor will support directory services. Use of directory services may be required in order to simplify search and authentication processes for user and application verification purposes. The portal directory server may be used as an umbrella or meta-directory that interconnects and synchronizes existing agency directory services with a common interface (Lightweight Directory Access Protocol). 32. Privacy, Confidentiality and Ownership of Information The agency that is the designated owner of specific data shall approve all access to that data. The owner agency is defined as any branch or agency of the Commonwealth that collects, stores, generates or maintains information. The Vendor shall not have any ownership of Commonwealth data at any time. Privacy policies established by governmental agencies or by state or federal law must be complied with. Privacy policy statements may be developed and amended from time to time by KHEAA and the Customers and will be appropriately displayed on portal Web pages. In particular, for any Commonwealth data hosted by the Vendor, the Vendor shall provide sufficient security to protect the data as well as portal customer data in network transit, storage, and cache. The Vendor shall work with KHEAA to identify appropriate data owner agencies. 33. Security and Authentication Services Vendors shall fully describe their approach to portal security, including but not limited to, the use of firewall hardware and software and how these would be configured in their network. See Attachment 1, Item 8 to access the Sample Network Topology Diagram, which illustrates the Commonwealth’s network connection to the Internet and the points at which security elements reside in the network. The Vendor shall submit a narrative response to each of the labeled sections on the diagram explaining how their proposal addresses that element of the security infrastructure. Vendors shall describe how they would: a. Assure confidentiality of data: i. In transit — provide the ability to execute secure, authenticated, two-way transactions as well as ensuring that all other data is encrypted beyond the reasonable threat of a successful brute force attack. In storage — ensure that confidential data in databases from
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ii.

which public data is being extracted will not be compromised. b. Assure integrity of data — determine how to maintain data integrity and users’ confidentiality and privacy; handle legal issues with regard to misuse or fraud and options for resolution. Maintain access control — determine method needed to prohibit users from accessing data or computer facilities unless the data owner agency and the Commonwealth’s Portal Manager expressly approved such access. Provide authentication - determine how to provide flexible and robust user authentication services, which may include web authentication, privilege management and extra-net access management services. In some instances, the state would expect only weak authentication with user registration in order to access portal services. Where additional security and control is required, multi-factor, strong authentication services may be appropriate. Provide audit capabilities - implement date-time stamp and an audit trail for identifying all network security breaches and attempted breaches; implement penetration analysis and intrusion detection policies to ensure that the portal remains as secure as possible over time.

c.

d.

e.

The Vendor shall provide a minimum threshold of network, server, and transaction security concerning each part of the diagram in the Sample Network Topology Diagram. For transmissions between a customer and the portal, the Commonwealth requires data confidentiality, i.e. using a standardized and widely distributed tool such as Secure Socket Layer (SSL). For transmissions between the portal and a Commonwealth Merchant Services facility, the Commonwealth requires data confidentiality, integrity and non-repudiation of the transaction. The Commonwealth mandates that the transaction be protected in transit using either private leased-lines or virtual private networks (VPNs). Full audit trails shall be maintained throughout the entire transaction lifetime. For transmissions between portal developers and the portal, all authentication must be strong and dual-factor involving some form of hard token or biometric device. Access control shall also be strictly enforced and audited. A rigorous change management and configuration management process shall be designed to insure security and availability. Data transmissions between the portal and agency data bases will depend on the physical layout proposed by the Vendor, but at a minimum should include extensive access control, authentication, and confidentiality tools.
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All remote administration of the portal hardware, operating system, or application software shall require the use of strong, dual-factor authentication techniques such as token based or challenge-response methods. As future transaction models are developed, there may be a need to support client side Public Key Infrastructure (PKI) certificates both for access control and for authentication. Describe in specific terms how the proposed solution will facilitate the use of this technology. The Vendor shall take into consideration that the number of potential customers for some future portal services could be quite large. Vendor proposals shall adequately describe how their proposed solutions for security and authentication will scale to varying levels of use of portal services. For payment transactions made through Internet sites, the Vendor shall ensure that card numbers, name, address, and expiration dates are secured through encryption, authentication, and other standard payment card operating procedures to ensure that card information remains secure. The Vendor shall prohibit users from accessing Commonwealth data unless the Commonwealth expressly approves such access. The Vendor shall maintain and ensure data integrity, and user confidentiality and privacy. The proposals shall describe how the Vendor will interface with existing Commonwealth directory servers for authentication if an application required this capability. Vendors should also note that the Commonwealth’s access control and security environment is evolving. It is likely that access to certain network segments will be more restrictive in the future. The Vendor shall have to adapt systems and transport changes as the environment evolves. 34. Pilot Testing Before final acceptance of the portal offering that is developed, the Vendor may be asked to provide a pilot implementation of the service in order for KHEAA to test the applications compliance with interfaces, policies and other services. The testing period shall be decided by KHEAA and the Vendor on a per application basis. Transaction fees shall be applied only when the application is placed in production. 35. Integration with Existing Systems Integration with legacy systems is critical to the success of the Commonwealth’s efforts to provide Web access to government services
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and information. There are two areas of interface to address: a. Data Editing The decision to provide off-line or on-line transaction verification processing shall be determined for each application based upon documented factors related to the impact to existing application processing, protection of data, and changes required for legacy systems. The agencies, in consultation with the portal Vendor, will determine the most appropriate method of data editing. b. Updating Legacy Data Agencies and institutions, in consultation with the Vendor, will determine the most appropriate interface from which updates can occur. The update format may be a batch data entry record format, electronic file or an on-line transaction that will be processed by the legacy update application or some other method acceptable to KHEAA. The portal Vendor will not manage or host legacy databases and data sets that support legacy applications unless approved by KHEAA. 36. Portal Services The Vendor is to provide detailed data as to how portal services are to be provided based on KHEAA’s and the Customer’s general requirements. 37. Portal Definition and Direction KHEAA considers the following components as necessary features of an enterprise portal: a. Index and Search of: Multiple data repositories Structured and unstructured data Internal and external data b. Taxonomy c. Application Integration d. Security, Authentication and Single Sign-on Permissioning e. Personalization f. Consistent Branding and Navigational Aids g. Enterprise Content Management KHEAA’s long-term objective is to provide all of the enterprise portal features. Attachment 1, Items 11 and 12 provide an overview of the current Commonwealth Web design and publishing standards.
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The Vendor shall provide a complete and comprehensive itemization of the components required to implement and support the portal. The objective of this itemization is to further gain an understanding of the Vendor’s approach and the strength of that approach. All significant items or associated items must be included under the appropriate category such as hardware, software, telecommunications facilities, staffing, applications, comprehensive testing platform with all its associated components, and operational facilities with associated support services. i. Category 1. Implementation of the portal: Complete a general itemization of all components that would be required to improve the portal production environment. Category 2. Operational Environment of the portal: Complete a general itemization of all components required to maintain the portal site production environment.

ii.

38.

Marketing and Brand Awareness Marketing of the Go Higher, Education Pays Web Portal will be planned and implemented through the Advisory Committee.

39.

Management Reporting Services Expertise in management reporting services shall be required. Such reports will be needed in order for the state to understand how data is being accessed, what data is being accessed, and how data needs to be organized to more effectively meet the needs of the citizens. The Commonwealth is also very interested in knowing who is using the Go Higher, Education Pays Web Portal and their respective patterns of usage. Proposals shall include a description of the Vendor’s approach, tools, methodology and experience in establishing facilities to provide such information. Items that must be covered, but are not limited to, in management reporting are: Number of business/services transactions utilized by application and in total for the state. Number of visits to the portal site. Number and types of forms/reports requested by portal users.
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-

Number of subscribers by type, the number of transactions each subscriber completes and abandonment rates per application. Customer feedback and on-line survey reports, including requests for future services.

Reports of the above information may also be required by other agencies. 40. Enterprise Content Management The Vendor shall describe the general approach, tools, methodology and experience in deploying enterprise content management solutions for large customers, such as the Commonwealth. 41. Search Engine The Vendor shall describe the general approach, tools, methodology and experience in deploying enterprise search engine solutions for large customers, such as the Commonwealth. 42. Portal Personalization The Vendor shall describe the general approach, tools, methodology and experience in deploying portal personalization solutions for large customers, such as the Commonwealth. 43. Portal Advertising The Commonwealth currently has a moratorium on the integration of commercial advertising on executive branch Internet web sites. However, the Vendor shall describe the general approach, tools and experience that would be available to the Commonwealth to use commercial advertising as a funding alternative for portal enhancements or as additional funding for application development and support should the need arise. 44. Measuring Portal Success Customer satisfaction, portal adoption rate, and application adoption rates are major areas to be assessed and measured. Skills in quantitative measures for evaluating the success of the Go Higher, Education Pays Web Portal and the usage of various applications are required. The measures to address include, at a minimum, the following items: a. Customer Satisfaction: The Go Higher, Education Pays Web Portal seeks to enable the
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Commonwealth to be more effective and efficient in locating information and availability of services. b. Adoption of the Portal and Applications: The goal of the Go Higher, Education Pays Web Portal is to obtain a high percent of participation. Vendors shall describe the expertise, software and metrics collection process that would be proposed/developed to provide services in this area. 45. Customer/Constituent Relationship Management (CRM) The Vendor shall describe the approach, tools, methodology and experience that will facilitate the development of the Operational/Analytical component of Customer Relationship Management (CRM). This includes features and portal services that the Vendor can provide that will encourage repeat use, provide cross-marketing opportunities, determine use trends, assist agencies in providing better customer service, and reduce complexity for Go Higher, Education Pays Web Portal customers. The Commonwealth is not interested in procuring CRM software as a part of this solicitation. 46. Accessibility and Multi-Language Education planning services must provide functional capability, usability, and accessibility to all customers. Universal design principles must be used to remove or reduce access barriers for everyone, not just the disabled who have additional protection defined by statute and case law. The Vendor shall describe the approach, tools, methodology, and experience to provide citizens of the Commonwealth special features on the portal to accommodate disabilities. The Vendors shall define their ability to provide the same basic services to persons with disabilities as would be accessible to the public. Adherence to Enterprise Architecture and Standards, Kentucky statute, including DRS6l.980-988, and Federal statutes and case law, including Section 504 of the Federal Rehabilitation Act (1973); Section 508 of the Federal Rehabilitation Act (1986); Americans with Disabilities Act (1990); Section 255 of the Telecommunications Act (1996); and the Assistive Technology Act (1998) are required. The Vendor shall describe the approach, tools, methodology and experience to incorporate the use of universal accessibility design, communication methods, navigation, and technology to remove access barriers for everyone, not only those traditionally thought of as disabled,
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but to additionally provide flexibility to accommodate the needs of all users and emerging communication tools. The Commonwealth is considering certain features of the portal for alternative languages in response to the growing number of diverse nationalities (e.g. Hispanic) within the Commonwealth. Vendors shall describe the approach, tools, methodology and experience to address multi-lingual issues for the Go Higher Education Pays portal. 47. Emerging Technologies Integration The portal should be designed with the ability to accommodate other methods of accessing the Web that are increasingly becoming available through different services. Personal hand-held devices, Interactive Voice Response (IVR), kiosks, cell phones and wireless access protocol (WAP) devices are among the different ways in which the general public is now able to access the Internet without the use of a traditional Web browser. Not all of these access devices would be able to accommodate the same level of display, communication and other programming capabilities that could be accessible on the Web through a standard Internet browser. Proposals shall describe the approach, tools, methodology and experience in providing the same basic functionality being delivered over these different methods of access and how application triggered information updates can be pushed to Go Higher, Education Pays Web Portal customers via email to provide better customer service. Proposals shall also describe the approach, tools, methodology and experience in providing streaming media (audio/video) services to Commonwealth customers. 48. No-Cost Deliverables The Vendor shall document that they understand and agree to the following no-cost deliverables and shall provide these deliverables within the timeframe requested. - Identify an account manager, hosting/technical contact and application contact at the time of contract signing. Resumes shall be provided for Commonwealth approval and interviews conducted prior to contract signing. - Within 30 days, propose and finalize a work request form and procedures that shall be used by all agencies and postsecondary institutions. This form/procedures may be used by other public sector entities and organizations to request services from the Vendor. - Within 30 days, provide a detailed secure hosting recommendation for
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establishing processing and secure connections at the Commonwealth Data Center should this hosting option be selected. - Within 90 days, provide a detailed portal improvement plan for the Go Higher, Education Pays Web Portal that includes but is not limited to customer/business registration, personalization, content management, single sign-on, and an authentication process. This proposal shall include both self-funding and fixed hourly rate funding/cost options. 49. Consulting and Application Configuration Services The Vendor(s) shall provide rates for consulting and application configuration services as described in II.D.50. 50. Application Funding Alternatives Vendors may provide one or more of the following cost alternatives for Infrastructure and Application Configuration services awarded through this solicitation: Self-funding — Cost recovery based on a fixed price per transaction Fixed Price Deliverable — Fixed price for the entire project Fixed Hourly Rates — A fixed hourly rate for each required service — fully loaded hourly rates

The Vendor shall acknowledge that they understand this requirement and will comply. 51. Shared Applications Profile The Commonwealth assumes that a number of core software modules would be shared by some applications that are configured/supported for the Commonwealth or are a part of the Vendors’ current application portfolio. This may include shrink-wrapped software or software developed by the Vendor. Proposals shall detail the current availability of core modules that can be reused by all on-line applications such as: 30

Security and authentication services Issuance of confirmation Management, storage, and presentation of on-line forms Search engine services On-line help and customer service capabilities e-Payment Interface and management of electronic revenues Encryption services

52.

On-line publication se Connectivity services Approach, interfaces, and protocols for integrating with back-end systems Automatic customer updates via email

Re-usable Applications and Interfaces Vendors shall detail the suite of reusable applications, routines, interfaces, and other methods that are available to the Commonwealth to save time, cost and complexity in deploying future self-service applications. The Vendor shall also detail the approach, methodology, and experience in developing and deploying re-usable applications. These re-usable components shall be categorized under the following headers: Citizens to Education School to School School to State Other

53.

Required Go Higher, Education Pays Web Portal Services Vendors shall detail their approach, tools, methodology and experience by platform in providing services in the following areas: a. Infrastructure Services and Consulting 1) 2) 3) 4) 5) Secure Hosting Services Portal Development and Portal Operations Support Site Design, Creative Services and Content Management Security Services Integration Services IVR Credit Card, EFT, Electronic Check and Debit Cards Directory Services Streaming Media — Audio/Video Other services as they are defined.

b.

Analysis and Application Configuration Services 1) 2) 3)
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Project Management Services Application Migration Services Analysis, Process Improvement and Design

4) 5) III.

Application Configuration Services Applications Roll-out and Operations Support

Response to the RFP - Proposal Requirements - Required Content The proposal must provide the following minimal information to demonstrate the capability of the respondent to perform the required services or it will be rejected as noncompliant. The respondent is also encouraged to provide any other information that will be beneficial in reviewing performance capabilities. Interested parties shall submit a written proposal in two separate documents—a Technical Approach, Ability and Experience Proposal and a Cost Proposal. The proposal covers services performed for the fiscal year beginning July 1, 2002, through June 30, 2004. A Contract for Personal Services will be required to formalize the engagement for such services. The proposal should include the following: Technical Approach, Ability and Experience Proposal, Cost Proposal The proposal must include a general fee schedule relative to performing the scope of services described in this RFP. The proposal must also describe how individual projects/tasks for which the scope is not clearly defined in this RFP will be agreed to and billed. Such items may be handled through a task order process.

IV.

METHOD OF AWARD AND CRITERIA FOR SELECTION KHEAA will select the Responsible Offferor(s) who will provide the best value to KHEAA, which is defined as the most beneficial combination of quality and costs for the commodities / services being requested. KHEAA is committed to a fair and impartial evaluation of all proposals received, characterized by requirements that reflect KHEAA’s needs, equal opportunity to all bidders, and a structured and impartial process. In evaluating proposals, KHEAA will use the criteria below to determine which vendor is most capable of implementing KHEAA’s requirements. This Solicitation and the award of contract(s) is pursuant to KRS 45A.370, Competitive Negotiation. Accordingly, written or oral discussions shall be conducted with all Responsive Offerors who submit proposals determined in writing to be reasonably susceptible of being selected for award. Discussions shall not disclose any information derived from proposals submitted by competing Offerors. A. Best Value Evaluation KHEAA shall conduct a comprehensive, fair, and impartial evaluation of all proposals. KHEAA may reject any incomplete proposal or proposal in which there are significant inconsistencies or inaccuracies. KHEAA reserves the right to reject all proposals. KHEAA has established a Proposal Evaluation Committee to review, evaluate and verify information submitted by the Vendor. KHEAA reserves the right to alter
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the composition of the committees or to designate other staff to assist in the evaluation process. KHEAA may use third-party assistance in the evaluation process. Other designated persons may act as advisors and/or observers during the evaluation and selection process. KHEAA shall evaluate the proposals by assigning scores in the categories according to established criteria, including, but not limited to, those criteria listed below, using a consensus or group scoring methodology. B. Evaluation Criteria The proposals will be evaluated in four (4) phases. Phase I Phase I is a Pass/Fail phase of the evaluation process. All proposals passing Phase I will proceed to Phase II. a. Proposal Comprehensiveness The degree to which the Vendor complied with the process and format dictated by KHEAA for completing responses to the Request for Proposal. b. Mandatory Vendor Qualifications and Corporate Stability Major Vendor qualifications and experience (III.D.2.) will include the following: Portal/Hosting and Enterprise Application Experience Self-Service Application Development Experience and Ability Systems Integration Experience Citizens to Education Application Experience

If the Vendor lacks mandatory experience requirements or corporate stability as defined in III.D.2. and fails to provide references and/or financial documentation as required, the proposal shall be rejected. Phase II Technical Approach, Ability, and Experience (120 Points) In Phase II of the evaluation process, KHEAA will score each of the criteria below using a weighted point system. KHEAA will use this point system to select up to five Vendors to proceed on to Phase IV, the Oral Presentation Phase. The following areas will be evaluated and then verified through references based on responses. Additional weight may be given to Vendors offering greater experiences, qualifications, or services. Areas to be evaluated
33

include: Vendor Qualifications above the mandatory Staff profile and Experience Hosting Expertise Portal Services . No-Cost Deliverables Consulting and Application Configuration Services Scoring from Phases II and III will be used to determine up to five of the vendors who will be invited to proceed on to phase IV, Oral Presentations and Demonstrations. Phase III Cost Proposal (60 Points) Scoring from Phases II and III will be used to determine the Vendors (up to five (5)) that will be invited to proceed on to Phase IV, Oral Presentations and Demonstrations. Phase IV Oral Presentation and Demonstrations (20 Points) Selected Vendors shall be requested to provide oral presentations and/or demonstrations to answer questions or to clarify the understanding of the evaluation committee. Points awarded will be based on a consensus or group scoring methodology. At the end of this phase, final scoring will take place and the contracting vendor determined. C. Scoring Criteria Phase and Points Possible Phase I - Pass/Fail Phase I - Pass/Fail Phase II – 120 points Phase III- 60 points Phase IV – 20 points 200 points

Criteria Proposal Comprehensiveness Mandatory Qualifications/Corporate Stability Technical Approach, Ability, and Experience Cost Proposal Oral Presentations and Demonstrations Total Points Possible for Proposal D. Negotiations

Pursuant to KRS 45A.370, contract maybe negotiated. Items that will be negotiated at the discretion of KHEAA shall include, but may not be limited to hosting fees, transaction fees and hourly rates for services.

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E.

Ranking of Proposals and Award of Contract 1. Best Interest of the Commonwealth KHEAA will rank the proposal in the manner set forth within this Solicitation. However, KHEAA reserves the right to reject any or all proposals in whole or in part based on the best interest of KHEAA. 2. Total Points Possible for Proposals Proposals will be ranked in descending order of points awarded per the scoring criteria.

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INSTRUCTIONS FOR PREPARING PROPOSAL Proposals for furnishing services or supplies will be accepted by the Division of Information Resources and Technology, Kentucky Higher Education Assistance Authority, Frankfort, Kentucky, until the date and time stated on page one. Offer and modifications shall be enclosed in sealed envelopes and addressed to the KHEAA Purchasing Officer. The offeror shall show the hour and date specified in the solicitation for receipt and name and address of the offeror on the face of the envelope(s). Five copies shall be submitted. The terms and conditions of this RFP include General Conditions contained in KHEAA’s Procurement Manual, December 1998, which are incorporated by reference and attached, plus any special conditions enumerated herein, all provisions to be part of any contract(s) resulting from this bid. 1. DEFINITIONS. As used herein: a. b. "Bid Opening" shall mean for a negotiated purchase, the date and time set in a Request for Proposal as the deadline for proposals to be submitted. "Contract," as defined in KRS 45A.345, shall mean all types of agreements, including grants and orders, for the purchase or disposal of supplies, services, construction, or any other item. It includes awards and notices of award; contracts of a fixed-price, cost, costplus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; and purchase orders. It also includes supplemental agreements with respect to any of the foregoing. It does not include labor contracts with employees. "Negotiation," as defined in KRS 45A.345, shall mean contracting by either the method set forth in KRS 45A.370, 45A.375, or 45A.380. "Noncompetitive Negotiation," as defined in KRS 45A.345, shall mean informal negotiation with one (1) or more vendors, contractors, or individuals without advertisement or notice. "Offeror" shall mean a prospective vendor a proposal under a negotiated purchase process. "Offer" means "proposal," where the procurement is negotiated. "Request for Proposal," as defined in KRS 45A.345, shall mean all documents, whether attached or incorporated by reference, utilized for soliciting proposals in accordance with the procedures set forth in KRS 45A.370, 45A.375, 45A.380, or 45A.385. "Responsible Bidder or Offeror," as defined in KRS 45A.345, shall mean a person who has the capability in all respects to perform fully the contract requirements, and the integrity and reliability, which will assure good faith performance. "Responsive Offeror," shall mean a Responsible Bidder or Offeror submitting a proposal in response to a Request for Proposal that conforms with that Request for Proposal. "Services," as defined in KRS 45A.345, shall mean the rendering, by a contractor, of its time and effort rather than the furnishing of a specific end product other than reports that

c. d.

e. f. g.

h.

i. j.

36

k. l.

m. n. o.

are merely incidental to the required performance of service. It does not include labor contracts with employees. "Solicitation" means Request for Proposal (hereafter referred to as RFP) where the procurement is negotiated. "Specifications," as defined in KRS 45A.345, shall mean any description of a physical or functional characteristic of a supply, service, or construction item. It may include a description of any requirement for inspecting, testing, or preparing a supply, service, or construction item for delivery. "Supplemental agreement" shall mean any contract modification which is accomplished by the mutual action of the parties. "Supplies" shall mean all property, including but not limited to leases on real property, printing, and insurance, except land or a permanent interest in land. "Vendor" shall mean a prospective vendor a proposal under a negotiated purchase process.

2. PREPARATION OF OFFERS a. b. Submit each offer in legible form on the proposal. Have the offer signed by a proper agent of the firm prior to the Bid Opening (see definitions). No offer will be considered valid unless typewritten and signed on the proposal. The offeror shall sign the offer in ink and type or print in ink his name, firm, address, telephone number, and date. Erasures or other changes must be initialed by the person signing the offer. Each offeror shall furnish the information required by the solicitation. When KHEAA provides special envelopes for sealed offers, they must be used. All envelopes used for the submission of offers must bear the following information: 1. 2. 3. 4. 5. The date and expected time of the offer opening; The offer or quotation number as applicable; Name and address of the offeror; and Outer envelope should be marked in the lower left-hand corner - KHEAA–RFP One copy of the Cost Proposal should be submitted in a separate envelope marked in the lower left-hand corner - KHEAA–Cost Proposal.

c. d.

e.

f. g. h. i. j.

Offers shall set forth full, accurate, and complete information as required by the solicitation. Offers that contain an offeror's own special terms and conditions in conflict with the terms of the solicitation and/or state statutes and regulations may be rejected. Offers for supplies or services other than those specified shall not be considered unless authorized by the solicitation. Submit offers in such a way to ensure that they arrive at the KHEAA office before the time set for Bid Opening (see definitions). Offeror shall state a definite time for delivery of supplies or for performance of services unless otherwise specified in the solicitation. Time, if stated as a number of days, shall include Saturdays, Sundays, and holidays. Provide firm prices unless otherwise stated in the solicitation.
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Do not include Federal Excise Taxes or State Sales Taxes in the offer; KHEAA is exempt from such taxes. l. Maintain as a firm offer any and all offers or proposals with respect to price, terms, and conditions after proposals are received by KHEAA. m. Cash discounts will not be considered in making the award of the contract. Time discounts may be considered if KHEAA deems it to be in its best interest. n. Offeror shall accept any contracts awarded on the price, terms, and conditions stated in the solicitation and offer. 3. EXPLANATION TO OFFERORS Contact with KHEAA employees/agents for information specific to bidding procedures, regulations and/or technical requirements shall be limited to the KHEAA Purchasing Officer indicated on the cover page of the Solicitation or their appointed representative. Any explanation desired by an offeror regarding the meaning or interpretation of the solicitation drawings, specifications, etc., must be requested in writing and with sufficient time (not less than seven (7) calendar days before the Bid Opening Date) allowed for a reply to reach prospective offeror. Oral explanations or instructions given before the award of the contract will not be binding. Any information given to a prospective offeror concerning a solicitation will be furnished to all prospective offerors as an amendment of the solicitation, if such information is necessary to offerors in submitting offers on the solicitation, or if the lack of such information would be prejudicial to uninformed offerors, as deemed by KHEAA Management. 4. ACKNOWLEDGMENT OF ADDENDA TO SOLICITATIONS Receipt of an addendum to a solicitation by an offeror must be acknowledged by signing and returning the addendum or by letter or facsimile. Such acknowledgment must be received prior to the hour and date specified for receipt of offers. Failure to acknowledge addenda may cause the offer to be considered non-responsive. 5. SUBMISSION OF OFFERS a. Offers and modifications thereof shall be enclosed in sealed envelopes and addressed to the KHEAA Purchasing Officer identified in the solicitation. The offeror shall show the information specified in paragraph 2. d. above on the face of the envelope(s). Facsimile offers will not be considered unless authorized by the solicitation: however, offers may be modified by facsimile notice, provided such notice is received prior to the hour and date specified for receipt. In the case of sealed offers, facsimile modifications cannot mention unit prices or total price; it can only refer to percentage change or numerical change (i.e., reduce unit price of item 1 by $1.00). Samples of items, when required, must be submitted within the time specified, and, unless otherwise specified, at no expense to KHEAA. If not destroyed by testing, samples will be returned at offeror's request and expense, unless otherwise specified by
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k.

b.

c.

d.

the solicitation. Unless a request for their return is made within thirty (30) days of the award of contract, all samples become property of KHEAA. Responsibility of the Offeror - KHEAA may, at any time, make a supplemental investigation of the responsibility of any offeror, even though the offeror is on a Bidder's List. This may include investigation of the offeror's financial responsibility, capacity to supply, his/her performance record in the business or industry, compliance with state health rules and regulations, and any other matter relating to the offeror's probable ability to deliver in the quantity and at the time required by a contract awarded him/her. 1. If KHEAA concludes on the basis of all available evidence that a particular offeror does not appear sufficiently responsible to assure adequate performance if the contract were awarded to him/her, the offeror may be disqualified. When there is some doubt as to the responsibility of the low offeror, but KHEAA's interest will be adequately protected by the filing of a performance bond, the low offeror may be required to file such a bond whether required by the solicitation or not; and upon filing of the bond, the award may be made to such low offeror.

2.

e.

Any time KHEAA offices are closed on days other than scheduled holidays, bid openings scheduled for that day will be held on the next normal working day at the scheduled hour. Any time opening hours of KHEAA offices are delayed, bid openings will be delayed by the same amount of time. (For example, if offices open two hours late, bid openings will be two hours late.)

6. FAILURE TO SUBMIT OFFER Failure of the recipient to offer or notify the issuing office that future solicitations are desired may result in removal of the name of such recipient from the mailing list for the type of supplies or services covered by the solicitation. 7. LATE OFFERS, MODIFICATIONS, OR WITHDRAWALS Offers or modifications of offers (or withdrawals thereof) received at the office designated in the solicitation after the exact hour and date specified for receipt will not be considered for an award of contract, UNLESS: a. No offers are received other than the late offer; and b. No late offer shall be considered unless it is postmarked on or before the day before the bid opening; and c. The need of KHEAA is determined to preclude re-solicitation of offers; and d. The KHEAA Purchasing Officer is assured that the specifications were not prepared in such a manner by the buyer to cause the late offer being the only offer available for consideration: and e. The price offer is investigated and found to be in the best interest of KHEAA. Offers may be modified or withdrawn by written or facsimile notice received prior to the exact hour and date specified for receipt of offers. An offer may also be withdrawn in person by an
39

offeror or his/her authorized representative, provided his/her identity is made known and he/she signs a receipt for the offer, but only if the withdrawal is made prior to the exact hour and date set for receipt of offers. After proposals are evaluated, offers may be withdrawn prior to an award only where evidence is presented to the Executive Director of KHEAA that clearly demonstrates that the offeror has made a bona fide error in the preparation of the offer and that the error will result in a substantial loss to the offeror if he/she is forced to perform under the contract. Prior to Bid Opening (see definitions), an offer may be withdrawn at the offeror's request. Offer Changes or Withdrawals: The withdrawal of any offer under this paragraph must be done on a method-of-award basis as set forth by the RFP (e.g., line item, sub-total, total requisition, etc.) 8. MULTIPLE AND ALTERNATE OFFERS Offers shall submit one response only to the solicitation and shall not propose more than one price, model, and brand for each item. Multiple or alternate offers specifying one price in total (or by line-item) shall be cause for rejection of an offer unless they are specifically called for in special provisions provided elsewhere in the solicitation. 9.CANCELLATION OF SOLICITATION AND REJECTION OF OFFERS. KHEAA reserves the right to reject any offers and to waive informalities and minor irregularities in offers received. Bids may be rejected for the following reasons: (i) Non-responsiveness - The Offer does not conform with the requirements of the Solicitation and the General Conditions applicable to all bids. (ii)Alterations and Erasures - The Offer contains material alterations or erasures (unless the change is initialed in ink by the bidder). (iii) Conflicts of Interest – Acceptance of the Offer would result in a prohibited conflict of interest under applicable laws and regulations. (iv) Collusive Bids - If it appears that there is reasonable ground to believe that there is an agreement among certain prospective Offerors to restrain competition by any means, the Offers of all such Offerors shall be rejected, and the Offerors and prospective Offerors barred from further bidding for a period of time considered appropriate by KHEAA. (v) Pursuant to KRS 45A.390, a request for proposal or other solicitation may be canceled, or all bids or proposals may be rejected, if it is determined in writing that such action is in the best interest of KHEAA. 10.INCONSISTENCY OF TERMS AND CONDITIONS In the event of an inconsistency between provisions of the solicitation, the inconsistency shall be resolved by giving precedence in the following order: (a) the specifications of the solicitation; (b) Special Conditions; (c) Solicitation Instructions and Conditions; (d) other provisions of the contract, whether incorporated by reference or otherwise; and (e) General Provisions.

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11.DISCLOSURE OF INFORMATION KHEAA is subject to the Open Records Law (KRS 61.870 to 61.884). However, information disclosed to KHEAA that is generally recognized as confidential or proprietary, which if openly disclosed would permit an unfair commercial advantage to competitors, is exempt from disclosure to third parties pursuant to KRS 61.878. If the Offeror considers any of the information provided as part of the Proposal to be confidential or proprietary as outlined above, the Offeror should so advise KHEAA in the Proposal. This exception applies only to information that is generally recognized as confidential or proprietary, which if openly disclosed would permit an unfair commercial advantage to competitors (not necessarily the entire contents of the Proposal), and KHEAA shall separate the excepted material and make the non-excepted material available for examination pursuant to the Open Records Law. 12. DISPUTES Problems that arise under any aspect of this solicitation should first be resolved between the vendor and the KHEAA Purchasing Officer identified on the cover of this solicitation. If such problems and/or disagreements cannot be so resolved with the KHEAA Purchasing Officer, the Offeror may submit them in writing as protest to the Executive Director of KHEAA for settlement and final disposition. Any protest or notice of other controversy must be filed promptly within two (2) calendar weeks after such aggrieved person knows or should have known the facts giving rise to the controversy. All protests or notices of other controversies shall be in writing. Within thirty (30) days of receipt of the protest, the Executive Director's decision shall be issued in writing. A copy of that decision shall be mailed by certified mail, return receipt requested, or otherwise furnished to the aggrieved party and shall state the reasons and grounds for the action taken. The decision of the Executive Director shall be the final and conclusive administrative action by KHEAA. The decision of the Executive Director concerning any controversy arising under or in connection with the solicitation or award of a contract shall be entitled to a presumption of correctness and shall not be disturbed unless the decision was procured by fraud or the findings of fact do not support the decision. In the event of a protest timely filed, KHEAA shall not proceed further with the solicitation or award involved pending a written decision concerning the matters raised in the protest, unless the Executive Director makes a written and adequately supported determination that continuation of the procurement is necessary to protect substantial interests of KHEAA or the Commonwealth. 13. AWARD OF CONTRACT: a. The contract shall be awarded to that Responsive Offeror whose offer conforming to the solicitation provides the best value. b. A written award (or acceptance of offer) mailed (or otherwise furnished) to the successful offeror within the time for acceptance specified in the offer shall be deemed to result in a binding contract without further actions by either party, provided that if the Offer is for services requiring professional skill or professional judgment for a specified period of time a Contract for Personal Services will be required to formalize the engagement for such services. c. All provisions of this solicitation will be part of any contract(s) resulting from this solicitation

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14. COMPLIANCE WITH STATE LAWS: This solicitation and any contracts or orders placed as a result of the offer shall be governed by the laws of the Commonwealth of Kentucky. The rights and obligations of the parties thereto shall be determined in accordance with these laws. Any offer conditioned upon governance by the laws of a state other than Kentucky shall not be considered. NOTE TO BIDDERS: IF YOU HAND DELIVER YOUR PROPOSAL, YOU ARE URGED TO HAVE IT TIME STAMPED AT THE KHEAA RECEPTION DESK IMMEDIATELY UPON YOUR ARRIVAL. PROPOSALS TIME STAMPED AFTER THE TIME STATED ON PAGE 1 OF THIS SOLICITATION WILL BE DEEMED LATE BIDS.

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GENERAL CONDITIONS 1. Unless waived in writing by the Executive Director, the following general conditions shall be made a part of each procurement contract and shall be specified in each RFP issued by the Kentucky Higher Education Assistance Authority: a. Every person submitting an offer to the Kentucky Higher Education Assistance Authority (hereafter referred to as KHEAA) shall be provided with a copy and deemed to have assented to these conditions by the act of submitting an offer. These general conditions will be written into or attached and incorporated by reference into each RFP and shall be an integral part of each RFP and resulting contract. Vendors requiring additional copies of the General Conditions can be furnished one additional copy by the Purchasing Officer for duplication as needed. Additional conditions may be incorporated in specific RFPs and contracts and are usually termed "Special Conditions." Such special conditions shall in no way operate to alter or nullify the general conditions, and each offeror shall be responsible for compliance with the general and special conditions.

b.

c.

2. OFFER SUBMISSION COMPLIANCE AND PROVISIONS: In submitting offers on any item to be purchased by KHEAA, the offeror shall agree to all conditions specified herein. a. b. Offeror shall comply with the Solicitation Instructions and Conditions. Offeror shall make available records, papers, books, or other documents, whether during performance or in connection with a preliminary investigation of offeror's financial status. Such information shall be limited to the information related to the offeror's ability to perform as specified in the contract. If the initial investigation does not reasonably satisfy KHEAA that the contract can be performed, KHEAA may request additional information before a contract is awarded. The offeror further agrees, if so requested, to furnish KHEAA a list of names of several users of the offeror's products. The offeror also agrees to make available to KHEAA for a period of five years after acceptance of equipment, both spare parts and maintenance service at current user prices, in the event of equipment malfunction requiring said service or spare parts. Offeror shall refrain from assigning or delegating any interest, right, or duty in any contract with KHEAA to any other person without the prior written consent of KHEAA, provided, however, that claims for sums due or to become due under a contract may be assigned or pledged and may then be reassigned. Notice of any such assignment must be given in writing by the vendor or his/her assignee to KHEAA.

c.

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3. KENTUCKY SALES AND USE TAX EXEMPTION ON PURCHASES a. KRS 139.470(7) provides that the sales and use tax does not apply to purchases of tangible personal property or services made by any cabinet, department, bureau, commission, board, or other statutory or constitutional agencies of the State. The exemption applies only to sales made directly to units of State Government and cannot be claimed by a construction contractor purchasing property to be used in fulfilling a contract with State Government. Under the provisions of KRS 164.742 and 164.758 and sales tax exemption certificate number ST 37-166, KHEAA is an agency and instrumentality of the Commonwealth of Kentucky and is exempt from sales and use tax on purchases.

b.

c.

4. COMPLIANCE WITH STATE AND FEDERAL LAW The Offeror shall agree that, in addition to any other remedies at law or equity, KHEAA may reject any offer or proposal or cancel any contract where there is evidence to show that: a. The offer, proposal, or contract was obtained under circumstances of fraud, collusion, conspiracy, or other unlawful act. The offer, proposal, or contract conflicts with any statutory or constitutional provision of the United States or the Commonwealth of Kentucky. The Offeror or Contractor failed to reveal a final determination of a violation of KRS Chapters 136, 139, 141, 337, 338, 341, and 342 or to comply with these statutes for the duration of the contract.

b.

c.

5. BONDING REQUIREMENTS FOR VENDORS a. BID BONDS - KHEAA may require a bid bond when advertising for offers as surety that an offeror will hold his/her offer firm for a specified period of time. If the Solicitation requires a bid bond or certified check in a specified amount, it must be received either with the offer or prior to the offer opening, or the offer shall not be considered. 1. 2. The amount of the bond shall be specified in the RFP. In addition to signing the bid bond as principal, the offeror must have the bond signed by a surety company authorized to do business in the Commonwealth of Kentucky. A list of such companies may be obtained from the Kentucky Department of Insurance. If the surety on a bond has its authority to do business in Kentucky revoked or for any reason it ceases to do business in this state, the offeror must promptly obtain another surety on the bond.

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3.

The bond must be conditioned on full performance of all obligations imposed on the offeror by the RFP, including the obligation to keep his/her price firm for as long a period as specified in the Solicitation, and the obligation to file a "Performance Bond" when required by contract. The offer bond shall provide that upon failure to perform any such obligations, KHEAA may recover from the offeror and the surety, or either, any and all damages suffered because of such failure. If an offeror expects to submit a certified check in lieu of an offer bond, it will be security for full performance of all obligations referred to above. If an offeror is not the successful offeror, the certified check will be returned to that offeror promptly after the award is made. The successful offeror's check shall be returned after the contract is awarded or as soon as such offeror has filed a performance bond, provided one is required. Checks may be returned by certified mail, return receipt requested. The return receipts will be attached to each offeror's offer and filed in the offer folder.

4.

5.

b.

PERFORMANCE BONDS - KHEAA may require the successful offeror to file a "Performance Bond" in a designated amount with KHEAA when it appears to be in the best interest of KHEAA to do so. The bond may be required to be posted either at the time the offer is submitted or prior to the award of the contract. The vendor shall be liable for any damages caused KHEAA by his/her failure to file a bond. Failure to submit a bond when required will be grounds for rejecting the offer. 1. The Performance Bond may be required in an amount up to 100% of the amount of the contract, depending upon the nature of the transaction. The successful offeror must have the bond signed by a surety company authorized to do business in the Commonwealth of Kentucky. A list of such companies may be obtained from the Kentucky Department of Insurance. If the surety's authority to do business in Kentucky is revoked, the offeror must promptly obtain another surety on the bond. The bond shall be conditioned on the offeror's complete performance of all obligations imposed by the contract. The bond shall provide that if the offeror fails to perform any such obligations, KHEAA may hold the offeror and his surety jointly and severally liable for any and all damages resulting from the breach of the contract. If the offeror does not have stock of the commodity or equipment to be purchased in the amount sought, nor the facilities to produce the item in such an amount to guarantee satisfactory service, KHEAA may, in addition, require the offeror's source of supply to file a Performance Bond, with surety, conditioned on such sources supplying the offeror as stated in the offer. The bonds required by this policy must be prepared on bond forms approved by
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2.

3.

4.

5.

KHEAA. 6. CONTRACT PROVISIONS BY REFERENCE a. Each RFP shall specify that it is mutually agreed by and between KHEAA and the offeror that a written award (or acceptance of offer) mailed (or otherwise furnished) to the successful offeror within the time for acceptance specified in the solicitation, or placing an order, letting of a purchase order, or executing a supplemental contract (where required) shall be deemed to result in a binding contract without further actions by either party, provided that if the Offer is for services requiring professional skill or professional judgment for a specified period of time a standard state Contract for Personal Services will be required to formalize the engagement for such services. Each RFP shall specify that it is mutually agreed by and between KHEAA and the offeror that the following terms and conditions shall be deemed incorporated by reference into the resulting contract: 1.
2. 3.

All specifications, instructions, terms, and conditions in the RFP and the proposal), except as amended in the contract. All special conditions stated in the solicitation The General Conditions stated herein.

b.

Compensable Damages for Breach The Offeror shall agree that the following items shall be included as compensable damages to KHEAA for any breach of contract with KHEAA. 1. 2. 3. Replacement costs. Cost of repeating the procurement procedures. Expenses incurred as the result of delay in obtaining replacements.

The enumeration of compensable damages contained in this section is not intended to be exclusive and will not operate to bar recovery by KHEAA for any other damages occasioned by the vendor's breach of a contract. However, in cases where the contract provides for liquidated damages, said liquidated damages shall be in lieu of all other damages including those enumerated. 7. EQUAL EMPLOYMENT COMPLIANCE Unless exempt pursuant to KRS 45.590, during the performance of each contract, the contractor/vendor shall agree to comply fully with KRS 45.550 to: 45.640, particularly: a. The vendor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, age, disability, or national origin. The vendor will take affirmative action required by applicable law or court order in
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b.

regard to employment, upgrading, demotion, transfer, recruitment, recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, so as to ensure that applicants are employed and that employees during employment are treated without regard to their race, color, religion, sex, age, disability, or national origin; however, when layoffs occur, employees shall be laid off according to seniority with the most recently hired employee being laid off first. When employees are recalled, this shall be done in the reverse of the way the employees were laid off. c. The contractor will state in all solicitations or advertisements for employees placed by or on behalf of the contractor that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, age, disability, or national origin. The contractor will post notices in conspicuous places, available to employees and applicants for employment, setting forth the provision of the nondiscrimination clauses required by this section. The contractor will send a notice to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding advising the labor union or worker's representative of the contractor's commitments under the nondiscrimination clauses.

d.

e.

8. ADDITIONAL EQUAL EMPLOYMENT PROVISIONS UNDER CONTRACTS UTILIZING FEDERAL FUNDS Each contractor who has 50 or more employees and (1) has a contract of $50,000 or more; or (2) has Government bills of lading which in any 12-month period, total or can reasonably be expected to total $50,000 or more; or (3) serves as a depository of Government funds in any amount; or (4) is a financial institution which is an issuing and paying agent for U.S. savings bonds and savings notes in any amount shall comply with all provisions of Presidential Executive Order 11246 (41 C.F.R Part 60-1.4) as amended. 9. COMPLIANCE WITH FEDERAL REQUIREMENTS The solicitation shall state whether the procurement will involve expenditure of federal assistance or contract grant funds, the awarded contractor shall comply with such federal law and authorized regulations which are mandatorily applicable and which are not presently set forth elsewhere in this solicitation. Reference: Office of Management and Budget Circular A102, Appendix "O." 10. REPORTING COMPLIANCE OR BREACH

Upon being declared the successful offeror, the contractor/vendor may be required to submit, in a manner as prescribed by KHEAA and on forms devised and supplied by KHEAA, a breakdown of the offeror's existing workforce, indicating the race, sex, age, position held,
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county and state of residence, and date of employment of each employee. Additionally, a statement of intent to comply in full with all requirements of the Kentucky Civil Rights Act, and to submit data as required by KRS 45.550 to 45.640. If a determination is made that the offering party's workforce information shows compliance with the law, it shall be certified and thereby qualified to offer on any contract covered by KRS 45.550 to 45.640 without filing additional data for a six-month period. Should the workforce information show an under utilization of minorities, the offering party will be required to submit an affirmative action plan indicating goals and timetables for recruiting and hiring minorities in the contractor's workforce. Failure to comply with any provisions of KRS 45.550 to 45.640 shall constitute a material breach of contract. 11. CONFIDENTIALITY OF NONPUBLIC INFORMATION a. Information obtained by a contractor during the engagement shall be kept confidential by the contractor and is the exclusive property of KHEAA and the Commonwealth. Contractors must agree not to use any information obtained under this engagement for any commercial purposes, including its transfer or sale to any other entity. All information pertaining to accounts is considered confidential and must be handled accordingly. The Offeror or Vendor shall not disclose to any third party any nonpublic information provided by KHEAA pursuant to this Solicitation or resulting contract. The foregoing prohibition shall not apply to disclosures; (i) made in the ordinary course of the Offeror’s or Vendor 's business to the attorneys, accountants, auditors or agents of the Offeror or Vendor; (ii) made in response to official inquiry by the legislative, executive or judicial branch of governments of the United States, the Commonwealth of Kentucky, or any state in which the Offeror or Vendor transacts business, or any agency of such governments, including, but not limited to, the U.S. Department of Education; (iii) made in response to subpoena or process issued by the Securities and Exchange Commission; (iv) made in response to subpoena or process issued by any state or federal court, arbitrator, grand jury, or administrative law judge; or (v) made upon the advice of counsel to the Offeror or Vendor in order to comply with securities registration or disclosure laws and regulations of the United States or any State applicable to the Offeror or Vendor or securities issued by the Offeror or Vendor, provided, however, the Offeror or Vendor shall notify KHEAA as quickly as reasonably practicable under the circumstances then existing of any disclosure made with respect to the matters set forth in clauses (ii) through (v) above, unless the Offeror or Vendor is restricted or precluded from so doing by judicial or administrative process or order. b. Offeror or Vendor shall control access to the network on which any Nonpublic Personal Information is stored, through compliance with and utilization of its information security measures that restrict access and protect customer information, and the Offeror or Vendor shall be in compliance with the Gramm-Leach-Bliley Act and applicable regulations. 12. TERMINATION OF CONTRACTS: a. Termination for Default
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1. Any contractor determined in writing by the purchasing official to be in breach of any of the terms and conditions of a contract with KHEAA may, in the discretion of the purchasing official, be declared in default and such contract may be terminated as a result of such default. 2. A default in performance by a contractor for which a contract may be terminated shall include, but shall not necessarily be limited to, failure to perform the contract according to its terms, conditions and specifications; failure to make delivery within the time specified or according to a delivery schedule fixed by the contract; late payment or nonpayment of bills for labor, materials, supplies, or equipment furnished in connection with a contract for construction services as evidenced by mechanics' liens filed pursuant to the provision of KRS Chapter 376, or letters of indebtedness received from creditors by the purchasing agency; failure to diligently prosecute the work under a contract for construction services. 3. KHEAA shall not be liable for any further payment to a contractor under a contract terminated for the contractor's default after the date of such default as determined by the purchasing official except for commodities, supplies, equipment or services delivered and accepted on or before the date of default and for which payment had not been made as of that date. The contractor, and his surety, if a performance or payment bond was required under the contract, shall be jointly and severally liable to KHEAA for all loss, cost or damage sustained by KHEAA as a result of the contractor's default; except that a contractor's surety liability shall not exceed the final sum specified in the contractor's bond. b. Termination for Convenience KHEAA may terminate upon thirty (30) days written notice for its own convenience contracts for the procurement of supplies and services if the purchasing official has determined that such termination will be in KHEAA's best interests. If it has been determined that a contract shall be terminated for the convenience of KHEAA, it may negotiate a settlement with the contractor according to terms deemed just and equitable by KHEAA. Compensation to a contractor for lost profits on a contract terminated for convenience of KHEAA shall not exceed an amount proportionate to the sum that the contractor's total expected margin of profit on the contract bore to the contract price, based on the total out-of-pocket expense incurred by the contractor as of the date of termination of the contract. If a contract is terminated for the convenience of KHEAA, the contractor shall have the burden of establishing the amount of compensation to which he believes himself to be entitled by the submission of complete and accurate cost data employed in submitting his bid or proposal for the contract and evidence of expenses paid or incurred in performance of the contract from the date of award through the date of termination. Payment of the sum agreed to in settlement of a contract terminated for convenience of KHEAA shall be made from the same source of funds or account as the original contract. PREROGATIVES, REQUIREMENTS, AND LIMITATIONS The following prerogatives, requirements, and limitations (in addition to such others that may otherwise be set forth in this RFP) shall apply to the Offer, Solicitation procedures, and/or the contract to be entered into with the successful bidder, as applicable:
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KHEAA reserves the sole rights of judgment and acceptance of any proposals received and the right to disqualify a proposal if any bidders are unable to deliver the services proposed in a timely manner. KHEAA may reject any or all proposals, including proposals that are not submitted in the required format. KHEAA may make corrections to errors in arithmetic found in proposals. KHEAA is not obligated for any costs incurred by the Offerorr in proposal preparation or in any activities related to the review of the RFP or negotiation of the contract. Awards for services requiring professional skill or professional judgment for a specified period of time are dependent upon the execution of a standard state Contract for Personal Services to formalize the engagement for such services. Should Offerors given an award fail to execute a contract, KHEAA may select the next highest rated Responsive Offeror to receive an award. The number of awards made pursuant to the RFP is at the discretion of KHEAA. A copy of the RFP and the vendor's proposal shall be made part of the contract. If a vendor's proposal includes another provider's product(s) and/or services, the vendor will be required to assume responsibility for those products and/or services as prime vendor to KHEAA. All proposals and accompanying documentation become the property of the Commonwealth of Kentucky and will not be returned. All marketing materials and news releases require prior written approval by KHEAA. The successful vendor may not assign, transfer, or convey the award, nor may it assign, transfer, or convey the agreement entered into or any part thereof of any interest therein without the written consent of KHEAA. Attempts to so convey shall render the award null and void. Offeror's proposal must remain in effect for 30 days from the last day to submit an Offer. Notice of the selection of the successful Offeror(s) shall be given the other Offerors. Offerors whose proposals have been rejected shall be notified of such rejection. The vendor must agree that no subcontract which the contractor enters into with respect to performance under this contract shall in any way relieve the contractor of any responsibility for performance of his duties. Any subcontracting used in providing services under this contract requires the prior express written approval of KHEAA. Debts or liabilities of KHEAA arising under a procurement contract shall not be deemed to constitute a debt, liability or obligation of the Commonwealth of Kentucky or a pledge of the faith and credit of the Commonwealth of Kentucky, but shall be payable solely from the revenues or assets of KHEAA that are not appropriated by the General Assembly of the Commonwealth of Kentucky for a different specific purpose.
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SPECIAL CONDITIONS ___________________none_______________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

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Attachment 1 Go Higher, Education Pays Web Portal RFP Web Addresses Item 1 – Commonwealth Data Center Profile http://www.gotsource.net/dscgi/ds.py/Get/File-8349/Commonwealth_Data_Center_Profile.doc Item 2 – IVR Contract with Anexsys http://www.gotsource.net/dscgi/ds.py/Get/File-7986/KyDirectAnexsys13.doc Item 3 – IVR Contract with GovConnect http://www.gotsource.net/dscgi/ds.py/Get/File-7987/KyDirectGov_Connect11.doc Item 4 – IVR Pricing GovConnect http://www.gotsource.net/dscgi/ds.py/Get/File-8353/IVR_Pricing_(landscape).xls Item 5 – IVR Pricing Anexsys http://www.gotsource.net/dscgi/ds.py/Get/File-8354/IVR_Pricing_(portrait).xls Item 6 – Kentucky Information Highway (KIH) Backbone Diagram http://www.gotsource.net/dscgi/ds.py/Get/File-8350/KIH_Backbone_Diagram_-_simplified.jpg Item 7 - Security Awareness http://www.gotsource.net/dscgi/ds.py/Get/File-8352/Security_Awareness.ppt Item 8 – Commonwealth e-Government Assessment and Planning Support Project http://www.gotsource.net/dscgi/ds.py/Get/File-7550/Milestone_2A_and_B.doc Item 9 – Governor’s Office for Technology Organizational Chart http://www.state.ky.us/got/organization/orgchart.htm Item 10 – Web Design Template http://www.state.ky.us/kystandards/templates/css_v2/ Item 11 – Web Publishing Standards Addendum http://www.gotsource.net/dscgi/ds.py/Get/File-7952/Web_Design_Addendum_Feb_2002.doc Item 12 – IT Enterprise Architecture and Standards http://got.state.ky.us/TransferShortCut.asp?LKSYSID=30 Item 13 – Kentucky Higher Education Assistance Authority http://www.kheaa.com Item 14 – Kentucky Higher Education Student Loan Corporation http://www.studentloanpeople.com Item 15 – Council On Postsecondary Education http://www.cpe.state.ky.us Item 16 – Kentucky Community and Technical College System http://www.kctcs.net

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Item 17 - Kentucky Department of Adult Education and Literacy http://www.adulted.state.ky.us Item 18 – Kentucky Department of Education http://www.kde.state.ky.us Item 19 – Kentucky Virtual Library http://www.kyvl.org Item 20 – Kentucky Virtual University http://www.kyvu.org Item 21 – Kentucky State Treasurer http://www.collegeky.com Item 22 – Association of Independent Kentucky Colleges and Universities http://www.aikcu.org Item 23 – Kentucky Savings Plan Trust http://www.kentuckytrust.org

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Attachment 2 Acknowledgment of Confidentiality Agreement This Acknowledgment of Confidentiality Agreement outlines the responsibility of the Contractor/Vendor regarding the confidential nature of access to the Commonwealth of Kentucky’s data resources. The Contractor shall be granted appropriate access to agency documents, records, programs, files, and any pertinent data resource needed to fulfill his/her contractual agreement. The Contractor shall maintain confidentiality and data integrity of said documents, records, programs, and files. This confidentiality and data integrity responsibility extends to, but is not limited to, systems and software, which the Commonwealth owns, plans or develops, or acquires from third parties. The Contractor shall not, at any time, use or disclose any Trade Secrets or Confidential Information of the Commonwealth, its agencies or vendors, without written permission from the agency, except as required to perform duties for the Commonwealth. For the purpose of this Agreement, a Trade Secret is any scientific or technical information, design, process, procedure, formula, or improvement (manual or electronic) that is valuable and not generally known to the public, including, but not limited to computer software programs. Confidential Information is any data or information other than trade secrets, that is material sensitive in nature, (manual or electronic) and not generally known to the public. Violations of this Agreement will result in immediate termination of the Contractor/Vendor. Upon the request of the Commonwealth, and in any event, upon the termination of the employment of the Contractor, said Contractor shall leave all computer programs, documentation, code, memoranda, notes, records, drawings, manuals, flow charts, and any other documents (manual or electronic) pertaining to the Commonwealth, including all copies thereof, with KHEAA in accordance with the approved Turnover Plan. This includes all data resources (manual or electronic) involving any Trade Secrets or Confidential Information of the Commonwealth, its agencies, and vendors.

I, ______________________________________________________________, certify that I have read and understand this Agreement and the restrictions contained therein. Contractor Name (Please Print) ____________________________________ Contractor Signature Organization/Vendor Represented _________________________________ Date

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Attachment 3 Go Higher, Education Pays Web Portal RFP Vendor Reference Form – Mandatory Portal, Application, or Business Reference Vendor Name __________________________________________________ Vendor Contact___________________________________________________ Reference Category (check only one)  Portal (minimum of 2)  Application (number varies)  Business/Systems Integration Reference (minimum of 5)  Complete Enterprise e-Commerce Business Solution Reference Site or Application Name_________________________________________________ Reference Site/ Application URL__________________________________________________ Date Implemented_________________________________________________ Reference Contact Name_________________________________________________ Contact Phone___________________________________________________ Contact Email___________________________________________________ Comments and Clarifications_____________________________________________________

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Attachment 4 KHEAA VENDOR BUSINESS PRACTICE STATEMENT THE UNDERSIGNED ("VENDOR") understands that KHEAA will not do business with any vendor that violates KRS 45A.343(2) and (3) or 45A.455 and does not comply with this Vendor Business Practice Statement (the "Statement"). COMPLIANCE WITH KRS 45A.343(2) AND (3): KRS 45A.343(2) and (3) provide as follows: (2) After July 15, 1994, any contract entered into by a local public agency, whether under KRS 45A.345 to 45A.460 or any other authority, shall require the contractor to: (a) Reveal any final determination of a violation by the contractor within the previous five (5) year period pursuant to KRS Chapters 136, 139, 141, 337, 338, 341, and 342 that apply to the contractor; and (b) Be in continuous compliance with the provisions of KRS Chapters 136, 139, 141, 337, 338, 341, and 342 that apply to the contractor for the duration of the contract. (3) A contractor's failure to reveal a final determination of a violation of KRS Chapters 136, 139, 141, 337, 338, 341, and 342 or to comply with these statutes for the duration of the contract shall be grounds for the local public agency's: (a) Cancellation of the contract; and (b) Disqualification of the contractor from eligibility for future contracts awarded by the local public agency for a period of two (2) years. Other statutes referenced in those sections are as follows: KRS Chapters 136 REVENUE AND TAXATION - CORPORATION AND UTILITY TAXES 139 REVENUE AND TAXATION - SALES AND USE TAXES 141 REVENUE AND TAXATION - INCOME TAXES 337 LABOR AND HUMAN RIGHTS - WAGES AND HOURS 338 LABOR AND HUMAN RIGHTS - OCCUPATIONAL SAFETY AND HEALTH OF EMPLOYEES 341 LABOR AND HUMAN RIGHTS - UNEMPLOYMENT COMPENSATION 342 LABOR AND HUMAN RIGHTS - WORKERS' COMPENSATION VENDOR REPRESENTS AND COVENANTS that: ‘ There has been no final determination of violation; or ‘ The attached list reflects all final determinations of violation of KRS Chapters 136, 139, 141, 337, 338, 341, and 342 which have been rendered against the Vendor within the five (5) years preceding this certification. COMPLIANCE WITH KRS 45A.450 AND 45A.455: VENDOR REPRESENTS AND COVENANTS that it will not directly or indirectly offer or give any personal benefit, including but not limited to commissions, kickbacks, payments, loans, gratuities (including travel and entertainment), bribes, gifts, samples, services, promises of Page 56

future employment or personal considerations, (hereinafter collectively referred to as "benefits"), in connection with any KHEAA contract or work, to any KHEAA director, officer or employee or their families, to any entity in which VENDOR knows a KHEAA director, officer, or employee or member of the KHEAA director, officer or employee's family own a direct or indirect interest, or to any person affiliated with any subcontractor or consultant for KHEAA. VENDOR further understands that KHEAA directors, officers or employees are not permitted to accept any benefit and are required to comply with KRS 45A.450 and 45A.455 that is attached to this Statement. VENDOR REPRESENTS that: ‘ no list is attached; or ‘ it has attached and returned herewith a list of any "benefits" provided, directly or indirectly, in the past year to a Director, Officer or employee or a Director, Officer or employee's family member including any employment or consulting relationship (excluding any meals of a nominal value). VENDOR REPRESENTS that except as set forth on a list attached and returned herewith no one has solicited or requested benefits of any of vendor's directors, officers, employees, subcontractors, agents or representatives in connection with any contract with, purchase from, sale to or other work with KHEAA (hereinafter collectively referred to as "contracts"), and VENDOR covenants it will henceforth PROMPTLY report any future such solicitation or request to KHEAA. COMPLIANCE WITH KRS 45A.395(2) AND 45A.400: KRS 45A.395(2) and 45A.400 provide: A written determination of responsibility of a bidder or offeror shall not be made and no supplier shall be pre-qualified as a responsible prospective contractor until the bidder or offeror provides the local public agency with a sworn statement made under penalty of perjury that he has not knowingly violated any provision of the campaign finance laws of the Commonwealth and that the award of a contract to the bidder or offeror will not violate any provision of the campaign finance laws of the Commonwealth. "Knowingly" means, with respect to conduct or to a circumstance described by a statute defining an offense, that a person is aware or should have been aware that his conduct is of that nature or that the circumstance exists. VENDOR CERTIFIES that neither he/she nor any member of his/her immediate family having an interest of 10% or more in any business entity involved in the performance of this contract, has contributed more than the amount specified in KRS 121.056(2), to the campaign of the gubernatorial candidate elected at the election last preceding the date of this certification. The undersigned further swears under the penalty of perjury, that neither he/she or the Company which he/she represents, has knowingly violated any provisions of the campaign finance laws of the Commonwealth, and that the award of a contract to Commonwealth him/her or the Company which he/she represents will not violate any provisions of the campaign finance laws of the COMPLIANCE WITH KRS 11A.040(6) AND (8) - FORMER STATE EMPLOYEES SEEKING TO DO BUSINESS WITH THE STATE OR CONTEMPLATING REPRESENTATION OF ANOTHER BEFORE A STATE AGENCY: KRS 11A.040(6) and (8) provide: (6) No present or former officer or public servant listed in KRS 11A.010 (9)(a) to (i) shall, within six (6) months following termination of his office or employment, accept employment, compensation, or other economic benefit from any person or business that contracts or does business with the state in matters in which he was Page 57

directly involved during the last thirty-six (36) months of his tenure. This provision shall not prohibit an individual from returning to the same business, firm, occupation, or profession in which he was involved prior to taking office or beginning his term of employment, provided that, for a period of six (6) months, he personally refrains from working on any matter in which he was directly involved during the last thirty-six (36) months of his tenure in state government. This subsection shall not prohibit the performance of ministerial functions including, but not limited to, filing tax returns, filing applications for permits or licenses, or filing incorporation papers, nor shall it prohibit the former officer or public servant from receiving public funds disbursed through entitlement programs. (8) A former public servant shall not represent a person in a matter before a state agency in which the former public servant was directly involved, for a period of one (1) year after the latter of: (a) The date of leaving office or termination of employment; or (b) The date the term of office expires to which the public servant was elected. The law's applicability may be different if you hold elected office or are contemplating representation of another before a state agency. Also, if you are affiliated with a firm which does business with the state and which employs former state executive branch employees, you should be aware that the law may apply to them. In case of doubt, the law permits you to request an advisory opinion from the Executive Branch Ethics Commission, room 136, Capitol Building, 700 Capitol Avenue, Frankfort, Kentucky 40601; telephone (502) 564-2611. VENDOR REPRESENTS AND COVENANTS that Vendor has no employees that are in violation of KRS 11A.040(6) and (8). COMPLIANCE WITH KRS 11A.201 TO 11A.246 - Executive Agency Lobbying VENDOR REPRESENTS AND COVENANTS that it is in compliance with KRS 11A.201 to 11A.246 (see informational copy of pertinent statutes attached). VENDOR REPRESENTS that it will cooperate in responding to reasonable requests by KHEAA or its representatives to provide information and documentation regarding transactions with KHEAA. If the foregoing representations and covenants are violated by VENDOR, its directors, officers, employees, subcontractors, agents or representatives, it will constitute grounds for termination of any contracts between KHEAA and VENDOR, at KHEAA's sole discretion. VENDOR will inform its directors, officers, employees, agents and subcontractors of the requirements of this Statement. WHEREBY, VENDOR has executed this Statement by its duly authorized representative on this day of , 200 . VENDOR NAME: By: __________________________________ __________________________________ (signature) __________________________________ (print or type)

Name:

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Title: Telephone No.:

__________________________________ ____________________________________

PLEASE SIGN AND RETURN TO:

State of _____________________) County of ___________________ ) SS day

of

The foregoing statement was acknowledged and sworn to before me this , 20 , by . ______________________________ Notary Public

My Commission expires:_________________

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