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					                         State of California—Health and Human Services Agency
                         Department of Health Care Services

SANDRA SHEWRY                                                                                               ARNOLD SCHWARZENEGGER
    Director                                                                                                        Governor




     October 1, 2010



     Dear Interested Party:

     SUBJECT:       ELECTRONIC RELEASE of FIRST DRAFT REQUEST FOR PROPOSAL #10-
                    87013 CALIFORNIA DENTAL FISCAL INTERMEDIARY PROCUREMENT

     The purpose of this letter is to announce the release of the DRAFT of the RFP for the
     Dental FI procurement as well as to seek comments from interested parties.

     The Department of Health Care Services (DHCS), Office of Medi-Cal Procurement
     (OMCP) is releasing the DRAFT Request for Proposal (RFP) 10-87013 to acquire a firm
     that is able to provide Fiscal Intermediary (FI) services and the underwriting of the Medi-
     Cal Dental Program. This Request for Proposal solicits proposals for the takeover,
     operation, and eventual turnover of the California Dental Medicaid Management
     Information Systems (CD –MMIS), and for effective and efficient adjudication of claims,
     Treatment Authorizations Request (TARs), and related documents while improving
     services to Medi-Cal Dental Program providers, beneficiaries, and federal and State
     users of the system. Interested parties may now download the DRAFT RFP at the
     OMCP web site at
     http://www.dhcs.ca.gov/ProvGovPart/rfa_rfp/Pages/OMCPHomePage.aspx.
     .

     Please note:

     1. DHCS anticipates releasing the Data Library materials soon under separate cover.
        Those interested parties that received an electronic notification of the release of the
        Draft of the RFP will also receive notification of the release of the Data Library
        materials. A notice will also be placed on the OMCP web site.

     2. This is not a solicitation for submission of a Proposal at this time, but only to solicit
        comments regarding the content of the DRAFT RFP from interested parties for
        consideration prior to release of a final RFP.




                      Office of Medi-Cal Procurement, MS 4200, P.O. Box 997413, Sacramento, CA 95899-7413
                                                       Phone: (916) 552-8006
                    Internet Address: http://www.dhcs.ca.gov/ProvGovPart/rfa_rfp/Pages/OMCPHomePage.aspx.
Interested Parties
Page 2
October 1, 2010



3. The RFP document we are releasing at this time is a DRAFT of the requirements
   expected to be included in the final RFP. The date the final RFP will be released is
   unknown at this time. However, please continue to view the aforementioned web
   site on a regular basis for the latest information concerning the release of future
   drafts and of the final RFP.

4. DHCS requests that interested parties carefully consider the scope of work
   requirements to be fulfilled under this contract and offer input on the work to be
   performed. DHCS will review the submitted comments and future drafts and/or the
   final RFP may reflect any comments and modifications accepted by DHCS. Details
   about the scope of work requirements may be found in Exhibit A, Attachments I - V,
   entitled Scope of Work.

5. Many sections in this DRAFT RFP that include important due dates, term (dates) of
   the contract, the Narrative l Proposal content requirements, the Cost Proposal bid
   sheets, evaluation and selection instructions and procedures, Narrative Proposal
   rating factors, and payment provisions, are subject to change before a final RFP is
   released.

6. Interested parties who would like to receive a copy of the final RFP must complete
   and submit the Request for Inclusion on Mailing List form (available on the web site
   noted above), if you have not already done so. Only organizations who return this
   form will be included on the mailing list when the release of the final RFP is
   announced. You should also continue to monitor the OMCP web site for any
   updates.

Your input is very important in helping DHCS finalize the RFP; however, please do not
provide comments on items or issues that are outside the control of the Dental FI
contractor, or that are in conflict with law, regulation, or federal mandate. Please note
that, DHCS does not intend to provide a response to parties submitting comments
and/or questions. Interested parties will have an opportunity to submit questions to
DHCS and receive official DHCS responses once the final RFP is released, in
accordance with RFP Section D, Proposer Questions, described in the final RFP.

To ensure that your comments or questions are fully considered regarding this
DRAFT RFP, please submit them in writing only, by close of business on or
before November 3, 2010.




                                            2
Interested Parties
Page 2
October 1, 2010



Comments may be mailed via U.S. Postal Service to:

                           Kevin Morrill, Chief
                           California Department of Health Care Services
                           Office of Medi-Cal Procurement
                           REQUEST FOR PROPOSAL #10-87013
                           MS 4200
                           P.O. Box 997413
                           Sacramento, CA 95899-7413

You may also fax your comments to OMCP at (916) 440-7369 or send them via e-mail
to omcprfp8@dhcs.ca.gov.

Thank you for your interest in the California Dental Fiscal Intermediary procurement.

Sincerely,

Original Signed by   Kevin Morrill
Kevin Morrill, Chief
Office of Medi-Cal Procurement




                                              3
       DRAFT Request for Proposal 10-87013

California Dental Fiscal Intermediary (FI) Procurement




             Department of Health Care Services
               Office of Medi-Cal Procurement
                        MS Code 4200
             1501 Capitol Avenue, Suite 71.3041
                      P. O. Box 997413
                Sacramento, CA 95899-7413
California Dental FI Request For Proposal                                                                       DRAFT RFP 10-87013

                                                            Table of Contents

A.    Purpose, Description of Services and Background.......................................................................6
      1. Purpose...................................................................................................................................6
      2. Description of Services ...........................................................................................................6
      3. Background .............................................................................................................................7
B.    Time Schedule ..............................................................................................................................8
C.    Contract Term ...............................................................................................................................9
D.    Proposer Questions ......................................................................................................................9
      1. What to include in an inquiry ...................................................................................................9
      2. Question deadline .................................................................................................................10
      3. How to submit questions .......................................................................................................10
      4. Proposer warning ..................................................................................................................11
      5. Verbal questions ...................................................................................................................11
E.    Data Library................................................................................... Error! Bookmark not defined.
F.    Pre-Proposal Conference............................................................................................................11
G.    Request for Inclusion on the RFP Mailing List ............................................................................12
      1. General Information ..............................................................................................................13
      2. Submitting the Request for Inclusion on Mailing List.............................................................13
      3. Proposer warning ..................................................................................................................14
H.    Reasonable Accommodations ....................................................................................................12
I.    “Voluntary” Non-Binding Letter of Intent......................................................................................14
      1. General information...............................................................................................................14
      2. Submitting the Voluntary Letter of Intent...............................................................................14
      3. Proposer warning ..................................................................................................................15
J.    Scope of Work.............................................................................................................................15
K.    Qualification Requirements .........................................................................................................15
L.    Proposal Format and Content Requirements..............................................................................17
      1. General instructions ..............................................................................................................17
      2. Format and packaging requirements ....................................................................................18
      3. Content Requirements ..........................................................................................................19
M.    Cost Proposal Format and Content Section................................................................................43
      1. General instructions ..............................................................................................................43
      2. Format Requirements ...........................................................................................................44
      3. Escrow Bid Documents .........................................................................................................45
N.    Proposal Submission ..................................................................................................................48
      1. General Instructions ..............................................................................................................48
      2. Proof of timely receipt ...........................................................................................................49

                                                                    Page 1
California Dental FI Request For Proposal                                                                       DRAFT RFP 10-87013

      3. Proposer costs ......................................................................................................................49
O.    Evaluation and Selection.............................................................................................................49
      1. Stage 1 – Required Attachment / Certification Checklist Review for the Narrative Proposal
      (Attachment 2).............................................................................................................................50
      2. Stage 2 - Narrative Proposal Evaluation/Scoring ..................................................................51
      3. Stage 3 – Optional Contractual Services (OCS) Initial Review .............................................75
      4. Stage 4 - Cost Proposal Evaluation ......................................................................................77
      5. Stage 5 – Adjustments to Score Calculations for Bidding Preferences/Incentives ...............80
      6. Stage 6 – Final Score Calculation.........................................................................................80
P.    Bid Requirements and Information..............................................................................................81
      1. Nonresponsive Proposals .....................................................................................................81
      2. Proposal Modifications After Submission ..............................................................................81
      3. Proposal Mistakes.................................................................................................................81
      4. Withdrawal And/Or Resubmission Of Proposals...................................................................81
           a. Withdrawal deadlines ......................................................................................................81
           b. Submitting a withdrawal request .....................................................................................82
           c. Resubmitting a proposal..................................................................................................82
      5. Contract Award And Protests ................................................................................................82
           a. Contract award ................................................................................................................82
           b. Settlement of ties.............................................................................................................83
           c. Protests ...........................................................................................................................83
           Protest Authority....................................................................................................................83
                1) Who can protest ........................................................................................................83
                2) Grounds for protests..................................................................................................83
                3) Protest time lines .......................................................................................................83
      6. Disposition Of Proposals.......................................................................................................85
      7. Public Release of Proposal Materials ...................................................................................85
      8. Verification of Proposer information ......................................................................................86
      9. DHCS rights ..........................................................................................................................86
Q.    Bidding Certification Clauses ......................................................................................................88
      1. Certificate of Independent Price Determination ....................................................................88
      2. Debarment and Suspension Certification..............................................................................89
      3. Lobbying Restrictions and Disclosure ...................................................................................89
R.    Preference and Incentive Programs............................................................................................90
      1. Small Business / Microbusiness Preference .........................................................................90
      2. Non-Small Business Subcontractor Preference ....................................................................91
      3. DVBE Incentive .....................................................................................................................92
S.    Contract Terms and Conditions ..................................................................................................93

                                                                    Page 2
California Dental FI Request For Proposal                                                                  DRAFT RFP 10-87013

      1. Loss Leader Clause ..............................................................................................................93
      3. Sample contract forms / exhibits ...........................................................................................94
      4. Unanticipated tasks...............................................................................................................94
      5. Resolution of language conflicts (RFP vs. final agreement) .................................................95
T.    Required Attachments

      Attachment #                   Attachment Name
      Attachment 1                   Proposal Cover Page

      Attachment 2                   Required Attachment / Certification Checklist

      Attachment 3                   Business Information Sheet

      Attachment 4                   Client References

      Attachment 5                   RFP Clause Certification

      Attachment 6                   CCC 307 – Certification
                                     Payee Data Record
      Attachment 7

      Attachment 8                   Follow-on Consultant Contract Disclosure
      Attachment 9 -                 DVBE Instructions / Forms with Attachment 9a, Actual DVBE
                                     Participation
      Attachment 10                  Darfur Contracting Act Certification
                                     Non-Small Business Subcontractor Preference Request/Supplier
      Attachment 12 a-b
                                     Acknowledgement
                                     Bid Sheets
      Attachment 12

      Attachment 13                  “Voluntary” Letter of Intent

      Attachment 14                  Request for Inclusion on Mailing List

      Attachment 15                  Conflict of Interest Compliance Certificate

      Attachment 16                  TBD

      Attachment 17                  TBD

      Attachment 18                  TBD

      Attachment 19                  TBD

      Attachment 20                  TBD

      Attachment 21                  TBD

U.    Sample Contract Forms / Exhibits



                                                                 Page 3
California Dental FI Request For Proposal                                  DRAFT RFP 10-87013

      Exhibit #            Exhibit Name

      Exhibit A1           Standard Agreement
                           http://dhcsintranet/FormsPubs/Pages/ContractForms.aspx

      Exhibit A            Scope of Work

                           Attachments:

                           Ex A, SOW (Standard language)
                           Ex A, Att I Takeover
                           Ex A, Att II Scope of Work, ALL Operations
                           Ex A, Att III Change Requirements
                           Ex A, Att IV Enhancements
                           Ex A, Att V Turnover Runout

      Exhibit B            Budget Detail and Payment Provisions

                           Ex B, Att 1 Special Payment Provisions

      Exhibit C –          General Terms and Conditions (GTC 610). View or download at this
      View on-line.        Internet site http://www.ols.dgs.ca.gov/Standard Language/default.htm.

      Exhibit D(F)         Special Terms and Conditions

      Exhibit E            Additional Provisions

                           Ex E, Att 1
                           Ex E, Att 2

      Exhibit F            Contractor’s Release

      Exhibit G            Travel Reimbursement Information

      Exhibit H            Information Confidentiality and Security Requirements

      Exhibit I            HIPAA Business Associate Addendum

      Exhibit J            Staffing Requirements


V.    Program Appendices


      Appendix #           Appendix Name
      Appendix 1           Driving and Parking Directions
      Appendix 2           Formula Adjudication Audit
      Appendix 3           Formula for Processing Audit
      Appendix 4           Generalized Rate Formula Used to Determine Pure Premium Rate
      Appendix 5           Conlan Invoice
      Appendix 6           Conlan Supporting Documentation
      Appendix 7           Dental Acronym Sheet
      Appendix 8           Glossary
      Appendix 9.0         Data Library Index - TBD
      Appendix 9.1         Data Library CD and DVD Content - TBD

                                               Page 4
California Dental FI Request For Proposal                           DRAFT RFP 10-87013

      Appendix #          Appendix Name
      Appendix 9.2        Data Library Quick Glance Summary – TBD




                                            Page 5
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013


A.    Purpose, Description of Services and Background

      1. Purpose

         The California Department of Health Care Services (DHCS) is soliciting proposals from firms
         that are able to provide Fiscal Intermediary (FI) services and the underwriting of the Medi-Cal
         Dental Program. This Request for Proposals (RFP) solicits proposals for the takeover,
         operation, and eventual turnover of the California Dental Medicaid Management Information
         System (CD-MMIS), and for effective and efficient adjudication of claims, Treatment
         Authorization Requests (TARs), and related documents while improving services to Medi-Cal
         Dental Program providers, beneficiaries, and federal and State users of the system. Proposals
         must address all of the services described in Exhibit A entitled, “Scope of Work”.

         The Department intends that the selected Contractor take over the existing CD-MMIS and
         operate it to the satisfaction of California’s requirements for FI services for Medi-Cal and other
         dental-related programs, as described in this RFP. Programs that currently utilize CD-MMIS
         claims/TARs processing and other related services include Medi-Cal, California Children’s
         Services Program, Genetically Handicapped Persons Program, and The Healthy Families
         Program. At this time, the Department is NOT soliciting proposals for a replacement of the
         existing CD-MMIS. DHCS is, however, evaluating alternatives for the eventual replacement of
         CD-MMIS including the possible migration to a single Medicaid Management Information
         System with a single Fiscal Intermediary as one alternative. However, it is anticipated that any
         changes to the current structure will not occur in the near future.

         The Department intends to make a single contract award to the most responsive and
         responsible firm earning the highest score. This procurement is open to all eligible firms and/or
         individuals that meet the qualification requirements, including commercial businesses, nonprofit
         organizations, State or public universities (including auxiliary organizations) and other entities.

      2. Description of Services

         A number of innovative features are included in the RFP, therefore, it is critical that interested
         Proposers carefully read, study, analyze, and understand all sections and provisions of the
         RFP. Features of the contract are described below:

         a. Contract Management Approach

             A contract management approach promoting a collaborative assessment and monitoring of
             the FI responsibilities. DHCS expects to monitor and audit the Contractor’s performance
             through automated self-reporting “best of class” tools provided as a condition of the resulting
             contract. These tools will be used to support the implementation of the takeover of the
             system.

         b. CD-MMIS Enterprise Project Management Office (EPMO)

             Utilization of an EPMO to coordinate with all the levels of Operation to ensure changes due
             to statute, regulation, judicial interpretation, policy, or other DHCS initiatives are
             implemented.

         c. On-line and Computer Based Interactive Training

             An on line and/or computer based interactive training tool through a Web based user
             interface to allow staff to access material and manuals at their workstations and repeat
             training lessons at their own pace.

                                                 Page 6
California Dental FI Request For Proposal                                        DRAFT RFP 10-87013


         d. Project and Portfolio Management

              A Commercial, off-the-shelf (COTS) Project Management tool(s) to track all project artifacts
              enterprise-wide, these artifacts include, project tasks, action items, issues, problem reports,
              time reporting, costs, automated approvals, change orders, and deliverables, for both the
              Contractor and the DHCS resources.

         e. Sensitive Information Redaction

              Tool or tools to automate and intelligently apply redaction to electronically stored information
              surrounding dissemination of sensitive information including but not limited to Protected
              Health Information (PHI), security, privacy and DHCS confidential information policies as the
              document is shared based on DHCS authorization policies.

         f.   Payment Provisions

              1) Underwriting

                 This RFP calls for an at-risk, underwriting contract. Features include: no bid/risk profit;
                 mirrored sharing environment for any gains or losses; gain/loss maximum of $4.65
                 million for each contract year; and each contract year will be stand-alone, meaning that
                 after auditing and settlement of loss or gain, there will be no carry-overs to the following
                 year. Please refer to Exhibit B, Attachment I, Special Payment Provisions, Provision 11,
                 entitled Underwriting, for an explanation of the underwriting component of the contract.

              2) Administrative

                 The primary payment methodology outlined in this RFP will compensate the Contractor
                 at a fixed price for a base volume range of Adjudicated Claim Service Lines (ACSL) and
                 TARs processed. If the ACSL or TAR volume falls within the base volume range, the
                 payment received shall constitute full payment for ACSL/TARs. If the ACSL/TARs
                 processed for the phase exceed the maximum of the base volume range, the Contractor
                 will receive additional payment for each ACSL or TAR document above the maximum. If
                 the ACSL or TAR volume does not reach the base range volume minimum, the payment
                 will be reduced for the number of ACSL/TARs below the base volume range.
                 Adjustments will be made continuously on a monthly basis to reconcile payment
                 received by the Contractor if the actual ACSL/TARs do not fall within the adjusted base
                 volume range. At the end of each contract year, a final adjustment will be made to
                 reconcile payment received by the Contractor to actual ACSL/TAR volumes experienced
                 on an annual basis. Several other Contractor payment categories are defined in Exhibit
                 B, Attachment I, Special Payment Provisions.

              3) Precedent to Payment Requirements

                 DHCS has determined that all contract requirements, standards, milestones, and
                 deliverables are considered subject to precedent to payment requirements, at the
                 Contracting Officer’s sole discretion. These items are discussed in detail in Exhibit B,
                 Attachment I.

      3. Background

         From its inception, Medi-Cal has experienced increasing program costs, primarily as a result of
         spiraling growth in the caseload, utilization of service, and hospital costs. A Medi-Cal Reform
         Plan (MRP) was enacted by statute in October 1971 (Chapter 577, Statutes of 1971) with the

                                                  Page 7
California Dental FI Request For Proposal                                        DRAFT RFP 10-87013

         objective of developing an equitable statewide eligibility system, a uniform schedule of benefits
         for eligibles within a strong system of utilization and quality controls, and an improved system of
         health care delivery and health care financing for the program

         The Department of Health Care Services, as part of the California Health and Human Services
         Agency, is the single State department responsible for administering the Medi-Cal Program,
         including Medi-Cal Dental services. Within the Department, Health Care Programs manages
         the Medi-Cal program. DHCS’ Medical Dental Service Division (MDSD) provides day-to-day
         oversight and management of the dental fiscal intermediary services.

         From 1966 to 1972, all claims for dental health care services rendered to Medi-Cal recipients
         were submitted to, processed, and paid by a single fiscal intermediary. In 1973, with the
         passage of the Waxman-Duffy Act, the State Legislature provided the opportunity for the State
         of California to explore the possibility of delivering dental care on a prepaid, risk basis. Under
         the provisions of the Waxman-Duffy Act, effective January 1, 1974, the State entered into a
         four-year pilot project with California Dental Services, a.k.a. Delta Dental Plan of California, to
         provide dental care services on a prepaid, at-risk basis. Legislative action allowed the State to
         extend the pilot contract until it was replaced by a competitively bid, prepaid, at-risk (for services
         and administrative costs) contract in 1984 and subsequent competitive bid contracts. This RFP
         solicits competitive bids for the provision of Medi-Cal dental care services, and afford potential
         contractors the opportunity to bid.

B.    Time Schedule

      Below is the tentative time schedule for this procurement.

       Event                                Date                Time (If applicable)
                                            TBD
       RFP Released
                                            TBD
       Questions Due


                                            TBD
       Request to be included on
       Mailing List

                                            TBD
       Voluntary Pre-Proposal
       Conference

                                            TBD
       Voluntary Non-Binding Letter of
       Intent

                                            TBD
       Proposal Due Date
                                            TBD
       Notice of Intent to Award Posted
                                            TBD
       Protest Deadline
                                            TBD
       Contract Award Date



                                                   Page 8
California Dental FI Request For Proposal                                        DRAFT RFP 10-87013

       Event                                 Date               Time (If applicable)
                                             TBD
       Proposed Start Date of
       Agreement

C.    Contract Term

      The term of the resulting agreement is expected to be effective from October 3, 2011 or upon
      approval by the Department of General Services (DGS), whichever is later and continue for 58
      months. The agreement term may change if DHCS makes an award earlier than expected or if
      DHCS cannot execute the agreement in a timely manner due to unforeseen delays. DHCS
      reserves the right to extend the term of the resulting agreement via an amendment as necessary to
      complete or continue the services. Contract extensions are subject to satisfactory performance,
      funding availability, and possibly approval by the DGS.

      The resulting contract will be of no force or effect until it is signed by both parties and approved by
      the DGS if required. The Contractor is hereby advised not to commence performance until all
      approvals have been obtained and the Contractor is advised by DHCS to begin work. If
      performance commences before all approvals are obtained, said services may be considered to
      have been volunteered until all approvals are obtained.

      See Exhibit E, Additional Provisions, Provision 60, “Term of the Contract” for additional information.

D.    Proposer Questions

      Immediately notify DHCS if clarification is needed regarding the services sought or questions arise
      about the RFP and/or its accompanying materials, instructions, or requirements. Put the inquiry in
      writing and transmit it to DHCS as instructed below. At its discretion, DHCS reserves the right to
      contact an inquirer to seek clarification of any inquiry received.

      Proposers that fail to report a known or suspected problem with the RFP and/or its accompanying
      materials or fail to seek clarification and/or correction of the RFP and/or its accompanying materials
      shall submit a proposal at their own risk. In addition, if awarded the contract, the successful
      Proposer shall not be entitled to additional compensation for any additional work caused by such
      problem, including any ambiguity, conflict, discrepancy, omission, or error.

      Following the question submission deadline, DHCS will summarize all general questions and issues
      raised and will post summary and responses on the OMCP website at the following address:
      http://www.dhcs.ca.gov/provgovpart/rfa_rfp/Pages/OMCPdentalFIHome.aspx. Responses will be
      released as soon as possible following the Pre-Proposal Conference.

      In response to inquiries that appear to be unique to a single firm or that are marked “Confidential”,
      DHCS will mail, email, or fax a response only to the inquirer if DHCS concurs with the inquirer’s
      claim that the inquiry is sensitive or proprietary in nature. If DHCS does not concur, the inquiry will
      be answered in the manner described herein for general questions and the inquirer will be so
      notified. Inquiries and/or responses that DHCS agrees should be held in confidence shall be held in
      confidence only until the Notice of Intent to Award is posted.

      To the extent practical, inquiries shall remain as submitted. However, DHCS may consolidate
      and/or paraphrase similar or related inquiries.

      1. What to include in an inquiry

         a. Inquirer’s name, name of firm submitting the inquiry, mailing address, email address, area
            code and telephone number, and fax number.
                                                    Page 9
California Dental FI Request For Proposal                                        DRAFT RFP 10-87013

         b. A description of the subject or issue in question or discrepancy found.
         c. RFP section, page number or other information useful in identifying the specific problem or
            issue in question.
         d. Remedy sought, if any.
         e. Format your inquiries as follows:

                                                Section           Page Number       Question
                RFP Reference
          Example: Use “General” if      Indicate the section     Example:
          a general question or          number or letter along   27 of 89
          “RFP” if the question deals    with subsection or
          with a section within the      paragraph site
          RFP or “Exhibit A”,            identifiers
          “Exhibit A, Att I”, “Exhibit
          B”, “Exhibit B, Att I”,
          “Attachment 1”, etc.

         A prospective Proposer that desires clarification about specific RFP requirements and/or whose
         inquiry relates to sensitive issues or proprietary aspects of a proposal may submit individual
         inquiries that are marked “Confidential”. The Inquirer must include with its inquiry an
         explanation as to why it believes questions marked “Confidential” are sensitive or surround a
         proprietary issue.

      2. Question deadline

         Regardless of delivery method, written inquiries must be received no later than 4:00 p.m. on
         TBD.

         Notwithstanding the question submission deadline, DHCS will accept questions or inquiries
         about the following issues if such inquiries are received prior to the proposal submission
         deadline.

         a. DVBE participation requirements and how to complete the DVBE attachments,
         b. The reporting of RFP errors or irregularities.

      3. How to submit questions

         Submit inquiries using one of the following methods:

           U.S. Mail, Hand Delivery or                            Fax:
           Overnight Express:

           Questions - RFP 10-87013                               Questions - RFP 10-87013
           Department of Health Care Services                     California Dental Medicaid Management
           Office of Medi-Cal Procurement                         Information System
           MS 4200
           Attn: Devyn Stanger, Lisa Flanders or Brian            Department of Health Care Services
           Quacchia                                               Office of Medi-Cal Procurement
           CD-MMIS Fiscal Intermidiary1501 Capitol Ave ,
           Suite 71.3041                                          Attn: Devyn Stanger, Lisa Flanders or
           P.O. Box 997413                                        Brian Quacchia
           Sacramento, CA 95899-7413
                                                                  Fax: (916) 440-7369
           Email: OMCPRFP8@dhcs.ca.gov


                                                    Page 10
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

         Proposers submitting inquiries by fax are responsible for confirming the receipt of all faxed
         materials by the question deadline.

         Call OMCP at (916) 552-8006 to confirm faxed transmissions.

      4. Proposer warning

         a. DHCS’ internal processing of U.S. mail may add 48 hours or more to the delivery time. If
            questions are mailed, consider using certified or registered mail and request a receipt upon
            delivery.

         b. For hand deliveries, allow sufficient time to locate street metered parking and to sign-in at
            the security desk. If detained at the security desk, ask security personnel to call OMCP at
            (916) 552-8006 to arrange for question pickup and receipt issuance by program staff.

         c. Courier service personnel must sign-in at the security station. Ask security personnel to call
            OMCP at (916) 552-8006 to collect the question envelope and to issue a receipt.

         For driving and parking instructions, please review Appendix 1.

      5. Verbal questions

         Verbal inquiries are discouraged. DHCS reserves the right not to accept or respond to verbal
         inquiries. Spontaneous verbal remarks provided in response to verbal inquiries are
         unofficial and are not binding on DHCS unless later confirmed in writing.

         No inference should be drawn from any questions to which DHCS does not respond in
         writing.

         Direct all verbal requests for DVBE assistance to DHCS’ DVBE Coordinator at (916) 650-
         0205 up to the proposal deadline.

E.    Data Library

         To Be Determined (TBD)


F.    Pre-Proposal Conference

      DHCS will conduct a voluntary Pre-Proposal Conference in Sacramento on TBD beginning at TBD
      at the following location:

      Department of Health Care Services
      1500 Capitol Avenue
      1st Floor Auditorium
      Sacramento, CA 95814

      Prospective Proposers that intend to submit a proposal are encouraged to attend the voluntary Pre-
      Proposal Conference. It shall be each prospective Proposers responsibility to attend the Pre-
      Proposal Conference promptly at [TBD]. DHCS reserves the right not to repeat information for
      participants that join the conference after it has begun.

      The voluntary Pre-Proposal Conference is a public event or meeting and anyone can attend. All
      attendees must sign in.


                                                Page 11
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013

      The purpose of the conference is to:

      1. Allow prospective Proposers to ask questions about the services sought or RFP requirements
         and/or instructions.

      2. Share the answers to general questions and inquiries received before and during the
         conference.

      Spontaneous verbal remarks provided in response to questions/inquiries are unofficial and
      are not binding on DHCS unless later confirmed in writing.

      Carefully review this RFP before the conference date to become familiar with the qualification
      requirements, scope of work requirements and proposal content requirements. Conference
      attendees are encouraged to have their copy of this RFP available for viewing during the
      conference.

      Refer to the RFP section entitled, “Proposer Questions” for instructions on how to submit written
      questions and inquiries before the conference date.

      DHCS is unable to officially respond to all inquiries received before and/or during the conference,
      DHCS will share official written responses shortly thereafter.

      After the conference, DHCS intends to summarize all general questions and issues raised before
      and during the conference and post the summary and responses on the OMCP website at the
      following address: http://www.dhcs.ca.gov/provgovpart/rfa_rfp/Pages/OMCPdentalFIHome.aspx

      In response to inquiries that appear to be unique to a single firm or that are marked “Confidential”,
      DHCS will mail, email, or fax a response only to the inquirer if DHCS concurs with the inquirer’s
      claim that the inquiry is sensitive or proprietary in nature. If DHCS does not concur, the inquiry will
      be answered in the manner described herein for general questions and the inquirer will be so
      notified. Inquiries and/or responses that DHCS agrees should be held in confidence shall be held in
      confidence only until the Notice of Intent to Award is posted.

      To the extent practical, inquiries shall remain as submitted. However, DHCS may consolidate
      and/or paraphrase similar or related inquiries.

      Conference attendees are responsible for their costs to attend/participate in the conference. Those
      costs cannot be charged to DHCS or included in any cost element of a Proposers price offering.

      For driving and parking instructions, please review Appendix 1.


G.    Reasonable Accommodations

      For individuals with disabilities, DHCS will provide assistive services such as sign-language
      interpretation, real-time captioning, note takers, reading or writing assistance, and conversion of
      Pre-Proposal Conference handouts, Request for Proposal, questions/answers, RFP Addenda,
      applicable Data Library materials or other Administrative Notices into Braille, large print, audio
      cassette, computer disk, or CD. To request such services or copies in an alternate format, please
      call the number below no later than TBD to arrange for reasonable accommodations.

      Department of Health Care Services
      Office of Medi-Cal Procurement
      Program telephone number (916) 552-8006
      (TTY) California Relay telephone number 711-1-800-735-2929

                                                 Page 12
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013


      NOTE: The range of assistive services available may be limited if requests are received less than
      ten State working days prior to the conference date or requestors cannot allow ten or more State
      working days prior to date the alternate format material is needed.

H.    Request for Inclusion on the RFP Mailing List

      1. General Information

      All updates, change notices, Administrative Bulletins and Addenda will be posted to the OMCP
      website at the following location:
      http://www.dhcs.ca.gov/provgovpart/rfa_rfp/Pages/OMCPdentalFIHome.aspx. In addition, an e-
      mail blast will be sent to every prospective Proposer who has submitted a Request for Inclusion on
      the Mailing List, Attachment 14

         a.    To obtain the e-mail blast notifications, submit the Request for Inclusion on the Mailing
               List, Attachment 14 by 4:00 pm on ________, 2010.

         b.    It is incumbent upon any prospective Proposer that has not submitted a Request for
               Inclusion on the Mailing List to monitor the DGS State Contracts Register Ad site and the
               following DHCS website:
               http://www.dhcs.ca.gov/provgovpart/rfa_rfp/Pages/OMCPdentalFIHome.aspx for any RFP
               Administrative Bulletins and RFP Addenda and/or other updates to the RFP and
               procurement.

         c.    Any interested party who is unable to download information from the OMCP website may
               contact Devyn Stanger, Lisa Flanders or Brian Quacchia at (916) 552-8006 to request CD
               copies of any RFP information. DHCS requires prospective Proposers to replace any CD
               made.

      2. Submitting the Request for Inclusion on Mailing List

         Submit the Request for Inclusion on the RFP Mailing List form using one of the following
         methods.

           U.S. Mail, Hand Delivery or                     Fax:
           Overnight Express:

           Mailing List Request - RFP 10-87013             Mailing List Request - RFP 10-87013
           California Dental Medicaid Management           California Dental Medicaid Management
           Information Systems                             Information Systems
           Attn: Devyn Stanger, Lisa Flanders or Brian     Department of Health Care Services
           Quacchia                                        Office of Medi-Cal Procurement
           Department of Health Care Services
           Office of Medi-Cal Procurement                  Fax: (916) 440-7369
           MS 4200
           1501 Capitol Ave , Suite 71.3041
           P.O. Box 997413
           Sacramento, CA 95899-7413
           OMCP Main Office (916) 552-8006

           Email:     OMCPRFP8@dhcs.ca.gov
           Subject:   Mailing List Request – RFP 10-87013



                                                Page 13
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

         Persons transmitting a Request for Inclusion on Mailing List form by fax are responsible for
         confirming the receipt of the fax by the stated deadline.

         Call OMCP Main office at (916) 552-8006 to confirm fax transmissions.

      3. Proposer warning

         a. DHCS’ internal processing of U.S. mail may add 48 hours or more to the delivery time. If the
            Request for Inclusion on Mailing List form is mailed, consider using certified or registered
            mail and request a receipt upon delivery.

         b. For hand deliveries, allow sufficient time to locate street metered parking and to sign-in at
            the security desk. If detained at the security desk, ask security personnel to call OMCP at
            (916) 552-8006 to arrange for pickup of the Request for Inclusion on Mailing List form and
            receipt issuance.

         c. Courier service personnel must sign-in at the security station and must obtain an access key
            card. Couriers will then be able to access pre-determined areas. If detained at the security
            desk, ask security personnel to call OMCP at (916) 552-8006 to have appropriate staff
            collect the Request for Inclusion on Mailing List form and to issue a receipt.

         For driving and parking instructions, please review Appendix 1.


I.    “Voluntary” Non-Binding Letter of Intent

      1. General information

         Prospective Proposers are asked to voluntarily indicate either their intention to submit a
         proposal or to indicate the reason(s) for not submitting a proposal. Failure to submit the
         Voluntary Letter of Intent will not affect the acceptance of any proposal. The Voluntary Letter of
         Intent is not binding and prospective Proposers are not required to submit a proposal merely
         because a Voluntary Letter of Intent is submitted. Use the Letter of Intent (Attachment 13)
         for this purpose.



      2. Submitting the Voluntary Letter of Intent

         Regardless of delivery method, the Voluntary Letter of Intent should be received by 4:00 p.m.
         on TBD.

         Submit the Voluntary Letter of Intent (Attachment 13) using one of the following methods.




                                                Page 14
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

           U.S. Mail, Hand Delivery or                      Fax:
           Overnight Express:

           Letter of Intent - RFP 10-87013                  Letter of Intent - RFP 10-87013
           California Dental Medicaid Management            California Dental Medicaid Management
           Information Systems                              Information Systems
           Attn: Devyn Stanger, Lisa Flanders or Brian      Department of Health Care Services
           Quacchia                                         Office of Medi-Cal Procurement
           Department of Health Care Services
           Office of Medi-Cal Procurement                   Fax: (916) 440-7369
           MS 4200
           1501 Capitol Ave , Suite 71.3041
           P.O. Box 997413
           Sacramento, CA 95899-7413
           OMCP Main Office (916) 552-8006
           E-mail: OMCPRFP8@dhcs.ca.gov

         Proposers transmitting a Letter of Intent by fax are responsible for confirming the receipt of the
         fax by the stated deadline.

         Call OMCP main office at (916) 552-8006 to confirm fax transmissions.

      3. Proposer warning

         a. DHCS’ internal processing of U.S. mail may add 48 hours or more to the delivery time. If the
            Letter of Intent is mailed, consider using certified or registered mail and request a receipt
            upon delivery.

         b. For hand deliveries, allow sufficient time to locate street metered parking and to sign-in at
            the security desk. If detained at the security desk, ask security personnel to call OMCP at
            (916) 552-8006 to arrange for Letter of Intent pickup and receipt issuance.

         c. Courier service personnel must sign-in at the security station and must obtain an access key
            card. Couriers will then be able to access pre-determined areas. If detained at the security
            desk, ask security personnel to call OMCP at (916) 552-8006 to have appropriate staff
            collect the Letter of Intent request and to issue a receipt.

      For driving and parking instructions, please review Appendix 1.

J.    Scope of Work

      See Exhibit A entitled, “Scope of Work” that is included in the Sample Contract Forms and Exhibits
      section of this RFP. Exhibit A, Attachments I-V, contains a detailed description of the services and
      work to be performed.



K.    Qualification Requirements

      Failure to meet the requirements of this section by the proposal submission deadline will be
      grounds for DHCS to deem a Proposer nonresponsive. Evaluators may choose not to thoroughly
      review or score proposals that fail to meet these requirements. If the Proposer is a subsidiary of
      another business entity and the Proposal relies in part on the business experience of the entity,
      these requirements of the RFP shall apply to the other business entity as well. A Proposer may
      demonstrate the requisite qualifications through the combined qualifications of the Proposer and its

                                                Page 15
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013

      subcontractors (including consultants) qualifications. The subcontractor(s) and consultant(s) are
      responsible for meeting the overall requirements of the RFP along with the requirements for each of
      those areas of responsibility. In submitting a Proposal, each Proposer must certify and prove that it
      possesses the following qualification requirements.

      Many of the qualification requirements contained in this section are described in more detail
      elsewhere in the RFP.

      1. The Proposer must have (3) three consecutive years of relevant prior experience within the last
         (5) five years, which is similar to the work contemplated by this RFP, and which demonstrates
         the Proposers ability to perform such work. Such experience may consist of a combination of
         experience either by the Proposer or by a parent corporation of the Proposer, or the relevant
         work experience of the management team or the relevant experience of a Subcontractor. If the
         prior experience and demonstrated ability requirements are to be met in whole or in part by the
         experience of Subcontractors, documentation of the Subcontractors' experience and ability must
         be formally submitted and accepted as part of the Proposers narrative proposal. Proposers
         should possess experience in the takeover, design, development, installation, modification,
         and/or operation of any large scale (over 5 million transactions per year) Medicaid, Medicare or
         Health Insurer data processing systems, or data processing systems related to Government
         contracts.

      2. Proposers must meet the RFP's financial stability requirements as stated in Exhibit E, Additional
         Provisions, Provision 41, Minimum Financial Criteria. Proposers must certify that they are
         financially stable and solvent and have adequate cash reserves to meet all financial obligations
         while awaiting reimbursement from the Department. If the Proposer is a subsidiary of a
         corporation, the corporation must provide a financial guaranty executed by a duly authorized
         officer of that corporation.

      3. Proposers must certify that they have read and are willing to comply with all proposed terms and
         conditions addressed in RFP Section S, “Contract Terms and Conditions”, including the terms
         appearing in the referenced contract exhibits.

      4. [Corporations] Corporations (including Limited Liability Companies and Limited Partnerships)
         must certify they are in good standing and qualified to conduct business in California.

      5. [Nonprofit Organizations] Non-profit organizations must certify their eligibility to claim
         nonprofit status.

      6. Proposers must have a past record of sound business integrity and a history of being
         responsive to past contractual obligations.

      7. [Knox-Keene Licensure] The Contractor shall be licensed by the Department of Managed
         Health Care (DMHC) under the Knox-Keene Health Care Service Plan Act of 1975 (Health and
         Safety Code Section 1343 et seq.,) and the California Code of Regulations (Title 10, CCR,
         Chapter 3 and Title 28, CCR, § 1300.51. If not already licensed, the Contractor shall, prior to
         execution of this contract, file an application with the DMHC for such licensure. Proof of
         application for licensure shall be submitted to the Department prior to the contract effective date.
         Proof of licensure shall be submitted to the Department within nine (9) months following
         execution of the contract resulting from this RFP (Title 28, CCR, § 1300.43.12). Refer to Exhibit
         E, Additional Provision 56, Required Licensure.

      7. Proposers must certify their proposal response is not in violation of Public Contract Code (PCC)
         Section 10365.5 and, if applicable, must identify previous consultant services contracts that are
         related in any manner to the services, goods, or supplies being acquired in this solicitation.
         Detailed requirements are outlined in Attachment 8.

                                                 Page 16
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013


         PCC Section 10365.5 generally prohibits a person, firm, or subsidiary thereof that has been
         awarded a consulting services contract from submitting a bid for and/or being awarded an
         agreement for, the provision of services, procurement of goods or supplies, or any other related
         action that is required, suggested, or otherwise deemed appropriate in the end product of a
         consulting services contract.

         PCC Section 10365.5 does not apply to any person, firm, or subsidiary thereof that is awarded a
         subcontract of a consulting services agreement that totals no more than 10 percent of the total
         monetary value of the consulting services agreement. Consultants and employees of a firm that
         provides consulting advice under an original consulting contract are not prohibited from
         providing services as employees of another firm on a follow-on contract, unless the persons are
         named contracting parties or named parties in a subcontract of the original contract.

         PCC Section 10365.5 does not distinguish between intentional, negligent, and/or inadvertent
         violations. A violation could result in disqualification from bidding, a void contract, and/or
         imposition of criminal penalties.

      8. Proposers must meet a Disabled Veteran Business Enterprise (DVBE) participation goal of .5%
         for this solicitation. Detailed information and instructions are outlined in Attachment 9 (DVBE
         Instructions/Forms). This requirement applies if the total cost or price offered equals $10,000 or
         more.

         DVBE Incentives will be applied according to the instructions in Section R,3,c., DVBE Incentive.

      9. Darfur Contracting Act Certification

         Proposers that currently have or within three years prior to the bid submission date have had
         business activities or other operations outside of the United States must certify that the bidding
         entity is either (A) not a scrutinized company; or (B) a scrutinized company that has been
         granted permission by the Department of General Services to submit a proposal in response to
         this solicitation. A “scrutinized” company is defined in Public Contract Code Section 10476.
         Detailed certification requirements appear in Attachment 10.

         If the Proposer does not currently have and has not, within three years prior to the bid
         submission date, had any business activities or other operations outside of the United States,
         there is no need to complete or submit Attachment 10.

     10. The winning Proposer must supply, before Contract execution, proof of liability insurance that
         meets the requirements Exhibit E, Additional Provision 34, Insurance and Bonding.

     11. Proposers must certify and submit proof that no prohibited conflict of interest exists. Detailed
         requirements are outlined in Attachment 15 Conflict of Interest Compliance Certificate.

     12. Staffing Requirements – Refer to Exhibit J, Staffing Requirements.

L.    Proposal Format and Content Requirements

      1. General instructions

         a. Please submit three (3) separate, sealed packages for the following parts of your Proposal:

             1) Narrative Proposal (format and content requirements are described in Section L).

             2) Cost Proposal Transmittal Letter

                                                 Page 17
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013


              3) Cost Proposal (format and content requirements are described in Section M).

         b. Each firm or individual may submit only one (1) Proposal.

              For the purposes of this paragraph, “firm” includes a parent corporation of a firm and any
              other subsidiary of that parent corporation. If a firm or individual submits more than one (1)
              Proposal, DHCS will reject all Proposals submitted by that firm or individual.

              A firm or individual proposing to act as a prime Contractor may be named as a subcontractor
              in another Proposers Proposal. Similarly, more than one Proposer may use the same
              subcontractors and/or consultants.

         c. Develop Proposals by following all RFP instructions and/or clarifications issued by DHCS in
            the form of question and answer notices, clarification notices, Administrative Bulletins or
            RFP addenda.

         d. Before submitting a Proposal, seek timely written clarification of any requirements or
            instructions that are believed to be vague, unclear or that are not fully understood. You
            assume the risk that your proposal may be rejected for failure to follow a rule or requirement,
            which the Department interprets differently than you did in preparing your proposal.

         e. In preparing your Proposal response, all narrative portions should be straightforward,
            detailed and precise. DHCS will determine the responsiveness of a Proposal by its quality,
            not its volume, packaging or colored displays.

         f.   Arrange for the timely delivery of the Proposal package(s) to the address specified in this
              RFP. Do not wait until shortly before the deadline to submit the Proposal.

      2. Format and packaging requirements

         a. Submit one (1) original proposal, eleven (11) copies or sets, and three (3) accompanying
            CDs of the narrative proposal:

              1) Assemble the original set, eleven (11) copies and three (3) CD-ROMs of your narrative
                 proposal together. Clearly label the original hard copy “Original Set”.

              2) Each proposal set and the accompanying CD must be complete with a copy of all
                 required attachments and documentation. The CD shall be an exact copy of the original
                 proposal; however, the hard copy of the document will be the official version.

              3) The original set and each of the eleven (11) copies of the narrative proposal must be
                 bound separately. The original set, eleven (11) copies and the three (3) CD-ROMs of
                 the narrative proposal must be sent under sealed cover.

              4) Proposals shall be submitted in full, bound sets, e.g., narrative proposal sets one (1)
                 through twelve (12) are packaged as complete sets, rather than having one package
                 containing all twelve (12) copies of binder one (1), for example. Set one (1) must be the
                 original set.

              5) Each box must be identified as follows:

                 Original Set or Set 1 of 5, or Set 2 of 5, etc.
                 Box 1 of X (number of boxes needed for each set), etc.


                                                 Page 18
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

              6) The outside of each box containing a full set of narrative proposals shall be marked with
                 the name of the Proposer and shall be labeled:

                 NARRATIVE PROPOSAL FOR THE
                 CALIFORNIA DENTAL MEDICAID MANAGEMENT INFORMATION SYSTEM
                 RFP 10-87013

         b. Format the narrative portion of the Narrative Proposal as follows:

              1) Use one-inch margins at the top, bottom, and both sides.

              2) Use a font size of not less than 11 points.

              3) Print pages single-sided on white bond paper.

              4) Sequentially paginate the pages in each section. It is not necessary to paginate items in
                 the Forms Section or Appendix Section.

         c. Bind each proposal set in a way that enables easy page removal. Loose leaf or three-ring
            binders are acceptable.

              1) Use maximum 3 inch binders.

         d. All RFP attachments that require a signature must be signed in blue ink. Signatures may be
            omitted from the CDs.

              1) Have a person who is authorized to bind the proposing firm sign each RFP attachment
                 that requires a signature. Signature stamps are not acceptable.

              2) Place the originally signed documents in the proposal set marked “Original”.

              3) The RFP attachments and other documentation placed in the extra proposal sets may
                 reflect photocopied signatures.

         e. Do not mark any portion of the proposal response, any RFP attachment, or other item of
            required documentation as “Confidential” or “Proprietary”. DHCS will disregard any
            language purporting to render all or portions of a proposal confidential.

         f.   All packaging of proposal submissions must be in boxes no larger than 15 inches long by 12
              inches wide and 10 inches high.

         g. The successful Proposer shall be required to submit an additional twenty (20) sets of the
            narrative proposal and corrections thereto within five (5) State work days after the Contract
            Award date (TBD), for contract processing. Each set of the narrative proposal shall be
            submitted as a complete unit and shall be correctly and completely revised and updated with
            responses to clarifications, notifications of deficiency, unacceptable items noted, and
            addenda which were a result of the evaluation process. During the Takeover Phase of the
            contract, the Contractor will be required to submit an additional 40 narrative proposals, to
            the Medi-Cal Dental Services Division (refer to Exhibit A, Attachment I, Takeover, Section 3)

      3. Content Requirements

         This section specifies the order and content of each proposal. Assemble the materials in each
         proposal set in the following order:


                                                 Page 19
California Dental FI Request For Proposal                                          DRAFT RFP 10-87013

         a. Proposal Cover Page

             A person authorized to bind the Proposer must sign the Proposal Cover Page (Attachment
             1). If the Proposer is a corporation, a person authorized by the Board of Directors to sign on
             behalf of the Board must sign the Proposal Cover Page.

         b. Table of Contents

             Properly identify each section and the contents therein. Paginate all items in each section
             with the exception of those items placed in the Forms Section and Appendix Section.

         c. Narrative Proposal Transmittal Letter

             The narrative proposal transmittal letter shall be on the official business letterhead of a
             Proposer and shall be signed by an individual authorized to legally bind the Proposer. The
             letter shall include:

             1) Identification of all materials and enclosures being forwarded as a response to the RFP;

             2) The name, title, mailing address, email address, and telephone and fax numbers of a
                liaison person(s) whom the Department may contact during the evaluation period;

             3) A statement indicating the legal form of the Proposer, (e.g. corporation, limited
                partnership, non-profit, etc.);

             4) A statement by the Proposer that:

                a) It is qualified in all areas to operate the CD-MMIS without use of a subcontractor; or

                b) Identifies:

                   i.      All areas for which the Proposer is qualified and will have responsibility (areas
                           which the subcontractor will not have responsibility);

                  ii.      The name(s) of all subcontractor(s) that is/are being submitted as a part of the
                           Proposers narrative proposal and the designated areas of performance for which
                           it/they is/are qualified and for which it/they shall have responsibility, if the
                           Proposer intends to use subcontractural relationships to satisfy the RFP
                           requirements; and

                  iii.     A statement from each subcontractor must be appended to the transmittal letter
                           signed by an individual authorized to legally bind the subcontractor and stating:

                           A. Type of work the subcontractor will provide under the contract;

                           B. Subcontractor’s understanding and agreement to comply with all applicable
                              contractual requirements; and

                           C. If the prior experience and demonstrated ability requirements are to be met
                              using a subcontractor, the subcontractor’s experience and ability must be
                              described in the Proposers narrative proposal.

                        iv. Indicate any subcontractors identified in paragraph iii. above who will be
                            responsible for performing "significant functions" under this contract for the areas
                            identified below. For this submission, significant functions include the
                                                    Page 20
California Dental FI Request For Proposal                                        DRAFT RFP 10-87013

                         performance of 10% or more of the workload for any one of the following
                         activities:

                     v. A statement by the Proposer that any subcontractual relationships submitted in
                        the proposal shall not be changed during the procurement process or during the
                        life of the contract without prior written permission from the Department.

         d. A statement that neither cost nor pricing information is included in this letter or the narrative
            proposal.

         e. A statement indicating that the Proposer has no affiliates (see the definition of affiliates in
            Exhibit E, Additional Provision 4, Affiliates), or a statement containing the following
            information:

              1) The names and addresses of all affiliates of the Proposer;

              2) The names and addresses of all persons and concerns exercising control or ownership
                 of the Proposer and any or all of its affiliates, and whether they exercise such control or
                 ownership as common officers, directors, stockholders holding controlling interest, or
                 otherwise; and

         f.   A statement that the proposal is complete as submitted.

         g. A statement acknowledging that all costs associated with the development and submission
            of a proposal in response to this RFP are entirely the responsibility of the Proposer and will
            not be chargeable to the State of California or included in any cost elements of the proposal.

         h. Executive Summary Section

              This section must not exceed three (3) pages in length. Evaluators may not review or
              evaluate excess pages.

              In preparing the Executive Summary, do not simply restate or paraphrase information in this
              RFP. Describe or demonstrate, in the Proposers own words, the following information.

              1) An understanding of DHCS’ needs and the importance of this project.

              2) The tangible results that are expected to be achieved.

              3) A sincere commitment to perform the Scope of Work in an efficient and timely manner.

              4) How this project will be effectively integrated into the proposing firm’s current obligations
                 and existing workload.

              5) Why the proposing firm should be chosen to undertake this work at this time.

         i.   Proposing Firm’s Capability Section

              To enable the Department in evaluating a Proposers corporate capabilities, a Proposer shall
              submit the following:

              1) Include a brief history of the proposing firm, including:




                                                  Page 21
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013

                a) Date of establishment. If applicable, explain any changes in business history (i.e.,
                   name change, ownership, partnership arrangements, etc.) or organizational structure
                   that will assist DHCS in determining the qualifications of the proposing firm.

                b) A description of the proposing firm’s goals that are relevant, closely related, or which
                   complement this project.

             2) Describe experience that qualifies the proposing firm to undertake this project. At a
                minimum, demonstrate the proposing firm possesses three (3) consecutive years of
                experience of the types listed in this section. All experience must have occurred within
                the past five (5) years. It is possible to attain the experience types listed below during
                the same time period.

                a) Statements of experience for all experience that the Proposer believes qualifies them
                   to undertake this contract. The experience cited should be for three (3) years of prior
                   experience within the past five (5) except for item b) iv. below, which should not have
                   a time limit. Proposers shall report on the types of experiences given in the following
                   order:

                    i.   Takeover of an existing Medicaid or Medicare claims processing system;

                    ii. Design, development, installation, operation, modification, and management of a
                        Medicaid or Medicare system. This item may be merged with item (i) above, but
                        the Proposer should clearly indicate whether the contract was for takeover of an
                        existing system (whose system it was; transfer of an existing system; or design,
                        development, and installation of a new system);

                    iii. Takeover, design, development, installation, modification, and/or operations of
                         any other large-scale (over five million transactions per year) data processing or
                         health insurer system. Experience cited here shall include the Proposers
                         experience in establishing and maintaining effective working relationships with
                         government entities, local community based organizations, and private nonprofit
                         organizations;

                    iv. Identification of whether the Proposer or any of its proposed subcontractors have
                        had a contract terminated for failure to perform. Also identify whether the
                        Proposer or any of its proposed subcontractors have been removed from a
                        governmental bidder’s list as a result of failure to perform or failure to comply with
                        financial requirements;

                    v. Previous experience within the last five (5) years with any subcontractor
                       relationship proposed, or any previous joint working experience with any
                       subcontractors proposed in the narrative proposal;

                    vi. Implementation of a health insuring system that was underwritten by the
                        Proposer and in which providers were paid on a fee-for-services basis; and

                    vii. Implementation and operation of any capitated health insuring system.

                b) For each type of experience reported above, Proposers shall provide:

                    i.   Type of contract under which the previous work was performed (e.g., fixed price,
                         fixed rate, cost-reimbursement);

                    ii. Client size;

                                                Page 22
California Dental FI Request For Proposal                                        DRAFT RFP 10-87013


                     iii. Number of transactions per year;

                     iv. Complexity and scope of the system, including the nature of reporting systems;

                     v. Scope of the work performed (e.g., fiscal agent, facilities manager);

                     vi. Reason for contract termination, if the contract is no longer in effect;

                     vii. Number of person-months devoted to design, development, and implementation
                          of projects;

                     viii. Performance problems encountered during the period of contract operations,
                           including any that resulted in delays or nonpayment to the Contractor. Specific
                           attention should be given to any problems encountered in meeting cycle-time
                           requirements, including backlogs in suspense or in the front-end of the system
                           (e.g., mail room, key entry);

                     ix. Status of the Proposer (e.g., prime Contractor or subcontractor);

                     x. Percentage of service performed by subcontractors;

                     xi. Certification of system for Medicaid system (e.g., currently federally certified) and
                         whether, in the last 10 years, the system or the Department has lost federal
                         certification or had any reduction in FFP due to loss of certification. Describe any
                         problems and/or loss of FFP; and

                     xii. Whether the experience is that of the Proposer or a subsidiary of another
                          business entity. If experience is gained as a subsidiary of another business
                          entity and the Proposer relies at all on the business experience of that entity, the
                          Proposer experience submission requirements of the RFP shall apply to the
                          other business entity.

                c) Submit a description of other existing and projected Medicaid or Medicare contracts,
                   projects, or obligations, and the resources required to fulfill each. Describe any
                   foreseeable conflicts between the existing or projected obligations and this proposal
                   in respect to business resources, personnel, computer time, and financial resources.

                d) Describe Proposers experience in designing, developing, and implementing
                   innovative programs and techniques that result in cost-savings, and proposing new
                   and creative ideas for increasing the Department’s control over the expenditure of
                   program dollars.

                e) Describe Proposers experience in meeting the State’s current system, users and
                   programs, and possessing sufficient flexibility to meet future needs as they are
                   identified.

             3) Briefly, describe the accounts or work projects begun and/or completed in the past three
                (3) years that involved services similar in nature or closely related to the Scope of Work
                in this RFP. For each account or project listed, include the following information:

                a)   Name of agency or firm for whom services were performed,
                b)   Identification of a contact person,
                c)   Duration or length of the project,
                d)   Total cost or value of the project,

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California Dental FI Request For Proposal                                        DRAFT RFP 10-87013

                 e) Indicate if the account or project is “active/open” or “closed/settled”,
                 f) Describe briefly the type and nature of the services performed.

              4) Briefly describe any experience that demonstrates the proposing firm’s ability to
                 establish and maintain effective working relationships with government entities, local
                 community based organizations, and private nonprofit organizations.

              5) Identify three client references that the proposing firm has serviced in the past five years
                 that can confirm their satisfaction with the services and confirm if the proposing firm
                 provided timely and effective services or deliverables. Use the Client References form
                 (Attachment 4) for this purpose. Place the completed Client References form in the
                 Forms Section of the proposal.

              6) DHCS will contact references to validate the information provided by the Proposer to
                 determine the client’s overall satisfaction with the services provided. Please be sure
                 your points of contact for the selected references are current. Please be sure the
                 references are prepared to confirm the information provided and that the reference will
                 be available during the period of time that DHCS will be validating references (shortly
                 following the submission of the proposal). References that fail to respond to the State
                 will not be considered a reference and may result in determining a Proposer to be found
                 non-responsive.

         j.   Financial Stability Plan Section

              Each Proposer shall submit a Financial Stability Plan as required herein.

              Proposers shall submit a Financial Stability Plan by submitting the following data for the past
              three fiscal years for the Proposer and for the interim period from the end of the last full
              fiscal year up to and including the date specified for submission of narrative proposals.

              If the Proposer is a subsidiary of any other legal entity and the financial resources of the
              parent company are required to qualify the subsidiary for competition under the
              procurement, the financial stability submission requirements of the RFP section shall apply
              to the parent company.

              1) The Proposer shall submit the following:

                 a) Proposers annual financial statements for the most recent past three fiscal years,
                    including annual income statements and quarterly or annual balance sheets.
                    Audited statements are required. All noted audit exceptions must be fully explained.
                    The Department will only accept financial statements that are reviewed and
                    accompanied by a report, certificate, or opinion of an independent professional
                    certified auditing firm; or

                 b) Public interim financial statements for the interim period from the end of the last full
                    fiscal year up to, and including, the date specified for submission of narrative
                    proposals. The Department does not require submittal of interim statements for the
                    last three fiscal years for which annual reports are submitted;

                 c) A statement containing all projected financial data for the calendar years 2011
                    through 2016. Proposers may use information that has been made available to any
                    of its security or shareholders or the investment community, Securities and
                    Exchange Commission or similar institutions, and shall be submitted in accordance
                    with Security and Exchange Commission guidelines for publicly traded companies;


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California Dental FI Request For Proposal                                        DRAFT RFP 10-87013

                 d) Identification of all significant contractual obligations that could have a material effect
                    as described n Section L.3.o. Demonstrations;

                 e) A narrative description of size computations, historical bases for estimates and
                    projections, assumptions, contractual obligations, both existing and anticipated, and
                    related information for the next three years predicated upon operation without the
                    award of this contract;

                 f)   A projected pro forma financial statement and statement of changes in financial
                      position for the next three years predicated upon operations without the award of this
                      contract;

                 g) A detailed financial plan and proposed cash flow budget showing the availability of
                    funds and course of sufficient funds to cover the Proposers projected operation costs
                    without risk of insolvency were the Proposer to provide the contractual services
                    under the contract period; and

                 h) A calculation of the Proposers projected tangible net equity prepared in accordance
                    with the minimum financial requirements set forth in Exhibit E, Additional Provision
                    41, Minimum Financial Criteria.

         k. Certification

              All financial data submitted in the Financial Stability Plan in connection with this RFP shall
              be accompanied by a signed statement from the Proposer or parent corporation(s) Chief
              Executive Officer and Chief Financial Officer or designee certifying that the data is current,
              accurate, and complete.

         l.   Guaranty Provisions

              If the Proposer is a subsidiary of another entity, the Proposer must submit a guaranty from
              the entity in the Proposers chain of ownership that is publicly traded. If no such parent entity
              is publicly traded, the guaranty shall be submitted by a parent entity at a level in the chain of
              ownership that is acceptable to the Department. The guaranty shall meet all the
              requirements specified in Exhibit E, Additional Provision 31, Guaranty Provisions, be in a
              form satisfactory to the Department, and provide for the full and prompt performance of all
              covenants, terms and conditions, and agreements resulting from the RFP throughout the
              term of the contract.

         m. Management Plan

              1) Describe how the proposing firm will effectively coordinate, manage, and monitor the
                 efforts of the assigned staff, including subcontractors and/or consultants, if any, to ensure
                 that all tasks, activities, and functions are completed effectively and in a timely manner.

              2) Describe the fiscal accounting processes and budgetary controls that will be employed
                 to ensure the responsible use and management of contract funds and accurate
                 invoicing. Include at a minimum, a brief description of all of the following:

                 a) How the costs incurred under this project will be appropriately accounted for and only
                    applicable project expenses will be billed to DHCS (e.g., use of unique
                    account/project codes, etc.);




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California Dental FI Request For Proposal                                     DRAFT RFP 10-87013

                b) The proposing firm’s fiscal reporting and monitoring capabilities (e.g., spread sheets,
                   automated fiscal reports, quality controls, checks and balances, etc.) to ensure
                   contract funds are managed responsibly;

                c) Proposed billing or invoicing frequency (not more frequently than once per month).
                   Electronic billing is not an option; and

                d) Identify the documentation that will be retained on file or submitted to DHCS upon
                   request to prove, support, and/or substantiate the expenses that are invoiced to
                   DHCS.

             3) Include an organization chart. Instructions are explained in the Appendix Section.
                Place the organization chart in the Appendix Section of the proposal.

             4) Include financial statements. Instructions are explained in the Appendix Section. Place
                the financial statement in the Appendix Section of the proposal.

         n. Work Plan Section

             1) Overview

                a) DHCS is interested in proposals that provide well-organized, comprehensive, and
                   technically sound business solutions. Vague explanations will undermine the
                   proposing firm’s credibility and will result in reduced proposal scores.

                b) The Work Plan must include an in-depth discussion and description of the methods,
                   approaches, and step-by-step actions that will be carried out to fulfill all Scope of
                   Work requirements found in Exhibit A, Attachments I – V.

                c) If the nature of a task or function hinders specific delineation of in-depth methods
                   and procedures (e.g., a task is dependent upon a future action or multiple
                   approaches may be used), explain the probable methods, approaches, or
                   procedures that will be used to accomplish the task or function. Also, describe, in
                   this instance, how the proposing firm will propose the ultimate strategies and detailed
                   plans to DHCS for full consideration and approval before proceeding to carry out the
                   project.

             2) Rejection of tasks, activities or functions

                If full funding does not become available, is reduced, or DHCS determines that it does
                not need all of the services described in this RFP; DHCS reserves the right to offer an
                amended contract for reduced services.

             3) Work Plan Submission Requirements

                Proposers shall submit the following work plans to meet all of the specified submission
                requirements. All submissions shall not exceed page limitations identified below.
                Submissions shall be on one (1)-sided eight and one-half inch by eleven inch (8 ½ “ x
                11”) white bond paper with print no smaller than eleven (11) point font size. Flow charts
                and graphs are excluded from this page limitation, but should be minimized whenever
                possible.

                a) Takeover Project Plan:

                    Requirements for Takeover are described in Exhibit A, Attachment I and Exhibit E.

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California Dental FI Request For Proposal                                        DRAFT RFP 10-87013


                   The Proposer must submit a Takeover Project Plan that describes in detail the
                   Proposers ability to perform the duties and responsibilities outlined in Exhibit A,
                   Attachment I, Takeover.

                   The Proposer must include all takeover considerations, including assumption,
                   maintenance and enhancement of the CD-MMIS. Takeover includes all the
                   expansion activities highlighted in the Takeover Work Schedule, included as a table
                   in Exhibit A, Attachment I of the RFP. Proposers must demonstrate their
                   understanding of the complexity and inherent risk, of the systems age and describe
                   how they would mediate these risks while still meeting the aggressive schedule for
                   takeover of CD-MMIS.

                b) Organization and Personnel Plan

                   i.   In this section, describe the proposed staffing plan. In the staffing plan, include
                        at a minimum:

                        A. Position titles for all proposed employees (persons on the proposing firm’s
                           payroll).

                        B. Number of personnel in each position.

                        C. By position, indicate the full time equivalent (FTE) or percentage of staff
                           time devoted to this project (e.g., full time = 1.0, 1/2 time = .50, 3/4 time =
                           .75, 1/4 time = .25, projected number of hours, if hourly, etc.).

                        D. Include a job description or duty statement for each position title or
                           classification that will perform the work. The job descriptions must indicate
                           the typical tasks and responsibilities that will be assigned to the position and
                           may include desired or required education and experience. Place all job
                           descriptions or duty statements at the end of the Personnel Section.

                        E. Identify by name and/or position title, each key staff person that will have
                           primary responsibility for managing, directing, overseeing and/or coordinating
                           the work of assigned staff, subcontractors and/or independent consultants
                           and who will maintain effective communications with DHCS (i.e., Project or
                           Program Manager, Project or Program Director, Contract Manager, etc.).

                            1. Briefly, describe each person’s expertise, capabilities, and credentials.

                            2. Emphasize any relevant past experience in directing, overseeing,
                               coordinating, or managing other government projects.

                        F. Include a one to two (1-2) page resume for each key staff person
                           (professional, managerial or supervisory) who will exercise a major
                           administrative, policy, or consulting role in carrying out the project work.
                           Place staff resumes in the Appendix Section. To the extent possible,
                           resumes should not include personal information such as a social security
                           number, home address, home telephone number, personal email address,
                           marital status, sex, birth date, age, etc.

                   ii. Briefly, describe the administrative policies or procedures that will be used to
                       ensure that the proposing firm will recruit and select well-qualified, competent,
                       and experienced in-house staff, subcontractors and/or independent consultants.

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California Dental FI Request For Proposal                                       DRAFT RFP 10-87013


                          A. If employee recruitment/selection policies or procedures are present in an
                             operations manual, Proposers may cite excerpts from such manuals. Do not
                             simply indicate that such policies exist and do not attach copies of any
                             policies or manuals to the proposal. If deemed necessary, DHCS may
                             request copies of the Proposers existing manuals or policies.

                   iii.    Briefly, describe the processes or procedures that will be used to ensure that
                          vacancies are filled expeditiously and that services are continued despite the
                          presence of vacancies.

                   iv.     If subcontractors (including independent consultants) will be used to perform
                          contract services, Proposers must do the following at the time of proposal
                          submission:

                          1. Indicate if the Proposer has pre-identified any firms/persons to perform the
                             work or if the Proposer will recruit them later. For each pre-identified
                             subcontractor and independent consultant include:

                            A. Full legal name.

                            B. A job description or duty statement that outlines the duties and functional
                               responsibilities that will be assigned to the subcontracted firm or
                               independent consultant.

                            C. A brief explanation as to why the subcontracted firm or independent
                               consultant was chosen. Stress things such as applicable skills,
                               knowledge, capabilities, past experience or accomplishments, availability,
                               reasonableness of rates, notoriety in a field or specialty, etc.

                            D. A one to two (1-2) page resume for each pre-identified subcontractor and
                               independent consultant. Place all subcontractor and/or consultant
                               resumes in the Appendix Section. To the extent possible, resumes
                               should not include personal information such as a social security number,
                               home address, home telephone number, marital status, sex, birth date,
                               age, etc.

                            E. A letter of agreement, signed by an official representative of each
                               subcontracted firm or independent consultant, acknowledging their
                               intended participation/availability and confirmation that they have read or
                               been made aware of the terms and conditions of the proposed contract.
                               Place all subcontractor and/or consultant letters of agreement in the
                               Appendix Section.

                                Specific subcontractor and/or independent consultant relationships
                                proposed in response to this RFP (i.e., identification of pre-identified
                                subcontractors and independent consultants) shall not be changed during
                                the procurement process or prior to contract execution. The pre-
                                identification of a subcontractor or independent consultant does not affect
                                DHCS’ right to approve personnel or staffing selections or changes made
                                after the contract award.

                          2. For subcontractors and/or independent consultants that cannot be identified
                             when the proposal is submitted to DHCS or are to be determined (TBD) after
                             the contract is executed, include:

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California Dental FI Request For Proposal                                       DRAFT RFP 10-87013


                          A. An identification of the functions, activities, and responsibilities that will be
                             assigned to each subcontractor and/or independent consultant.

                          B. A description of the process that will be used to obtain DHCS approval of
                             each subcontractor and/or independent consultant selection along with
                             approval of their budgeted costs and assigned responsibilities.

                   v. Submit a Personnel Acquisition plan which encompasses the following:

                          A. Briefly, describe the administrative policies or procedures you will use to
                             ensure that you will recruit and select well-qualified, competent, and
                             experienced in-house staff, subcontractors and/or independent
                             consultants. For additional requirements, see Exhibit A, Attachment I,
                             Takeover.

                          B. Include a description of methods to ensure that qualified staff are hired to
                             meet the needs of the specialized areas: e.g., Systems Group without
                             interruption to services during Takeover and the transition to Operations.
                             This plan should also include contingencies to ensure that services to
                             providers and beneficiaries without interruption.

                          C. If employee recruitment/selection policies or procedures are present in an
                             operations manual, you may cite excerpts from such manuals. Do not
                             simply indicate that such policies exist and do not attach copies of any
                             policies or manuals to your proposal. If deemed necessary, the
                             Department may request copies of your existing manuals or policies.

                          D. Briefly, describe the processes or procedures that you will use to ensure
                             that vacancies are filled expeditiously and that services are continued
                             despite the presence of vacancies.

                   vi. Management Team

                       Provide a narrative description of the management team that will be assigned to
                       this contract. The narrative shall include all senior management members who
                       will be responsible for the following requirements. (Refer to Exhibit J, Staffing
                       Qualifications)

                      A. All activities assigned to the Contractor Representative;

                      B. All activities assigned to the Takeover Director;

                      C. All administrative and financial activities;

                      D. All claims/TAR adjudication activities;

                      E. All EPMO activities;

                       F. All activities of the Systems Group;

                      G. All Quality Management activities;

                      H. All Beneficiary Services activities;


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California Dental FI Request For Proposal                                     DRAFT RFP 10-87013

                       I. All Provider Services activities;

                       J. All Telephone Services Center activities;

                      K. All System Utilization Review Subsystem (S/URS) activities;

                       L. All Information Security and Privacy Office activities: and

                      M. If applicable, Project Manager for any major subcontractor(s). The narrative
                         shall contain a thorough discussion of the authority and responsibility of the
                         Contractor Representative.

                          If different managers handle the Takeover and Operation activities, please
                          indicate.

                          All members of the management team must have experience in their
                          functional areas. If members of the management team are not proposed to
                          be employees of the Contractor, their employer must be listed as a
                          subcontractor in the narrative proposal. The narrative shall contain a
                          description of the Contractor Representative regarding the delivery of
                          computer operations support.

                          For any major contract activities or responsibilities proposed to be performed
                          by any subcontractor, include a description of how the Contractor shall
                          ensure performance by the subcontractor(s) and the control that the
                          Contractor Representative will have over the subcontractors.

                       N. System Enhancements Submission Requirements

                          Requirements are described in Exhibit A, Attachment IV. The Proposer is
                          expected to add their industry knowledge on the topics, and propose the best
                          of class solution for each enhancement. Unless otherwise stated, all
                          enhancements would be updates to the CD-MMIS.

                          1) Business Rules Extraction

                              Requirements for the Business Rules and requirements traceability are
                              described in Exhibit A, Attachment IV.

                              Proposers must describe their approach to rules extraction. The
                              description should identify required Proposer and State resources, any
                              automated tools proposed, and demonstrate how the approach will lead
                              to a more accurate picture of the CD-MMIS System business functionality
                              and the gaps between this functionality and the written program
                              guidelines.

                              a) Proposers must include a Project Management Plan with clear
                                 identification of the schedule, proposed resources and work products.

                              b) Proposers must describe the business rule taxonomy they propose to
                                 use and how the taxonomy is integrated with and/or supported by
                                 their approach and tools.

                              c) Proposers must justify their selection of a requirements traceability
                                 tool and describe how they believe it will support collection and

                                               Page 30
California Dental FI Request For Proposal                                    DRAFT RFP 10-87013

                                  indexing of the business rules to produce a requirements traceability
                                  of requirements, including test cases and policy updates through the
                                  duration of the FI Contract and beyond.

                          2) Managed Care

                              Requirements for Managed Care are described in Exhibit A, Attachment
                              IV.

                              a) Proposers must describe their experiences in working with Dental
                                 Managed Care Plans.

                              b) Proposers must describe their experiences and ability to accept
                                 encounter data from the Dental managed care plans.


                   vii. Management Team: Qualifications

                       Proposers shall thoroughly describe the qualifications, experience, and skills of
                       the individual members of the management team. This description shall include:

                      A. The current job title of each management team member and whether a
                         Contractor or a subcontractor employs the member. If the member is
                         employed by a subcontractor, identify that Subcontractor;

                      B. A brief description of each management team member’s management
                         experience (i.e., size of contract, duration). Include each management team
                         member’s experience with the Proposers firm, or with the subcontractor(s)
                         proposed, as part of the narrative proposal. Indicate the length of experience
                         of each management team member; whether in the Proposers firm or with
                         another organization’s firm;

                      C. A description of the personal qualification(s) (e.g., skills in communication,
                         analysis and problem solving, planning and decision-making) of each
                         management team member; and

                      D. An indication of the recent timeframe of each management team member’s
                         experience and its relevance or similarity to the major tasks to be performed
                         under this contract.

                   viii. Management Team: Individual Authority

                       Proposers shall describe the span of control and authority to be assigned to each
                       member of the management team. This description shall include a complete
                       report of each of the following:

                      A. The division of responsibility among each of the members of the
                         management team and the percentage of time each person will be assigned
                         on this contract. Include a description of other responsibilities of that
                         individual; and

                      B. An organization chart illustrating the span of control to be assigned to each
                         management team member. Show reporting relationships within the team as
                         well as subcontractors to team members, and reporting relationships of the
                         Contractor Representative to the Data Center and major subcontractors.

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California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

                           Include a description of the level of placement of each member within the
                           organization, with the level of detail showing the unit level.

                   ix. Management Team: Continuity

                       A. Proposers shall describe how they shall ensure that the proposed individuals
                          are willing and available to do the work. The Proposer shall also describe the
                          method to be used by the Proposer to replace an individual with someone
                          with equal qualification. This shall include whether management team
                          nominees in the narrative proposal are currently proposed to work on any
                          other contracts and, if so, how their availability will be guaranteed for this
                          contract. The Contractor shall describe past contract experience it has had in
                          working with its customers in the replacement of its management personnel
                          assigned to a large contract.

                       B. The Contractor shall guarantee that any senior manager identified in its
                          narrative proposal will be assigned to this contract for at least the first two
                          years, and the Contractor Representative for three years, unless that
                          employee:

                           1. Leaves the employment of the contractor, any of is affiliates, or a
                              subcontractor or any of its affiliations; or

                           2. Is given advance written Contracting Officer approval.

                       C. Submit an organization chart

                           The Proposer shall submit a complete description of its organizational
                           structure and areas of technical capability. This description shall provide the
                           following:

                           1. An organization chart and narrative that describes the organizational
                              structure of the business, shows the location of the proposed contract in
                              the Proposers firm, and indicates if such location is an operation unit,
                              separate location, or wholly owned subsidiary.

                           2. A complete description of the division of responsibility within the business.

                               An organization chart showing the relationship of the Proposer to all
                               parent entity(s), corporation(s), and affiliate(s) if the Proposer is a
                               subsidiary organization. Include a description of the division of
                               responsibilities, decision-making processes, and reporting relationships
                               between the Proposer and its parent(s) or affiliate(s), Subcontractors,
                               and/or independent consultants, if any.

                               Instructions are explained in the Appendix Section. Place the
                               organization chart in the Appendix Section of the proposal.

                c) Facilities Plan

                   The Proposer shall submit a plan that describes the firm’s ability to perform the
                   duties and responsibilities outlined in Exhibit A, Attachment I, Takeover and to
                   include requirements listed elsewhere in the Scope of Work of this RFP. The plan
                   shall describe the current:


                                                Page 32
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

                   i.   Office facilities at your disposal including number of offices owned or leased,
                        square footage, number of staff housed and physical location or address. Please
                        see Exhibit E, Additional Provision 39, for requirements on Location of
                        Contractor’s Facilities and Exhibit E, Additional Provision 45 and 46 as they
                        relate to Takeover and Operations.

                   ii. Support services and office equipment capabilities immediately available and/or
                       accessible for use in carrying out Takeover and the proposed Scope of Work.
                       Include such things as:

                        A. A description of the range and/or type of support services available and
                           number of staff;

                        B. Messenger, delivery, shipping, distribution, or transport capabilities;

                        C. Teleconferencing or telecommunications capabilities;

                        D. Printing/reproduction or photocopying capabilities;

                        E. Computer hardware and system capabilities (i.e., number, type, size, age,
                           capacity and speed of personal computers or work stations and servers;
                           Local Area Network capabilities, Wide Area Network capabilities; data
                           transfer capabilities (disk or tape), data storage capacity, video/graphics
                           capabilities, etc.);

                        F. Software applications in use (word processing applications, spread sheet
                           applications, data base applications, graphics development applications, Web
                           page design applications, unique or other specialized software applications,
                           etc.); and

                        G. Other support functions or capabilities that can be accessed and/or utilized.

                   iii. Submit a Facilities Acquisition Plan that describes your firm’s ability to perform
                        the duties and responsibilities outlined in Exhibit A, Attachment I, Takeover
                        including the requirements identified within the Scope of Work of this RFP.
                        Include information on facilities and other resources you must acquire to fulfill the
                        work required under the contract, such as:

                        A. Identify any facilities, support services or equipment that you must purchase,
                           rent or lease on a long or short-term basis to perform the services described
                           in this RFP.

                        B. Describe the interdependencies of the Facilities Acquisition and installation
                           as it relates to other Takeover tasks.

                        C. Describe how the plan provides for the monitoring of plan progress and timely
                           reporting to the Department.

                d) Security and Confidentiality Plan

                   The Proposer shall submit a Security and Confidentiality Plan that describes the
                   ability to perform the duties and requirements for Security, Confidentially and Privacy
                   as described in Exhibit A, Attachment I, Takeover and Scope of Work of the RFP.



                                                Page 33
California Dental FI Request For Proposal                                           DRAFT RFP 10-87013

                     The Proposer must describe its approach to maintaining Security and Confidentiality
                     and Privacy for the duration of the FI contract. The Proposer must submit draft
                     Security and Confidentially and Privacy Plans that meet the requirements of Exhibit
                     A, Attachment I, Takeover, Exhibit A, Attachment II, Operations, Security and
                     Confidentiality, and Information Security Office and Privacy Office.

                e) System Test Plan

                     The Proposer shall submit a System Test Plan that describes the ability to perform
                     the duties and responsibilities outlined in the Takeover and Scope of Work
                     requirements of this RFP. For additional requirements see Exhibit A, Attachment I,
                     Takeover.

                     i.   Describe the method to conduct two (2) parallel tests of CD-MMIS;

                     ii. Describe System Test documentation standards;

                     iii. Describe control procedures;

                     iv. Describe manual, clerical, and operating procedures used to validate Quality
                         Management procedures for setting accuracy and error levels and monitoring for
                         Contract compliance.

                f)   Acceptance Testing Plan

                     The Proposer shall submit an Acceptance Testing Plan that describes the ability to
                     perform the duties and responsibilities outlined in the Takeover and Scope of Work
                     requirements of this RFP. For additional requirements see Exhibit A, Attachment I,
                     Takeover.

                     i.   Proposers must include a description of its Acceptance Testing strategy,
                          methodology, and schedule. The plan must also include a description of the
                          tool(s) for the tracking and reporting of testing activities including, but not limited
                          to, end to end testing, documentation of test scripts, test results error resolution
                          and retesting.

                     ii. Proposers must describe their proposed coordination with State users in
                         developing test scenarios, test cases, reporting test results and resolving defects.

                g) Claims/TARs Processing Plan

                     The Proposer shall describe how it plans to manage the Claims/TAR Processing
                     area of the contract to ensure contract requirements are met and performance is
                     successful. The Proposer shall discuss its understanding of the following:

                     i.   Work to be performed;

                     ii. Requirements described in Exhibit A, Attachment II, Operations;

                     iii. Interrelationships and functional dependencies;

                     iv. Changes, if any, to manual processing that are required to accomplish
                         claims/TAR processing activities;



                                                   Page 34
California Dental FI Request For Proposal                                     DRAFT RFP 10-87013

                     v. Impact(s) of the claims/TAR processing activities on the Department, providers,
                        and beneficiaries; and

                     vi. Any other special considerations.

                h) Quality Management Plan

                     The Proposer shall describe how it plans to manage the Quality Management area of
                     the contract to ensure contract requirements are met and performance is successful.
                     Include a description of how the Proposer will ensure that it will meet continued
                     quality improvement within its operation. The Proposer shall discuss its
                     understanding of the following:

                     i.   Work to be performed;

                     ii. SOW requirements described in Exhibit A, Attachment II, Operations;

                     iii. Interrelationships and functional dependencies;

                     iv. Changes, if any, needed to accomplish Quality Management activities;

                     v. Impact(s) of Quality Management activities on the Department, providers, and
                        beneficiaries; and

                     vi. Any other special considerations.

                i)   Systems Group Procedures and Organization Plan

                     The Proposer shall describe how it plans to manage the Systems Group Procedures
                     and Organization area of the contract to ensure contract requirements are met and
                     performance is successful. The Proposer shall include methods that it will use to
                     ensure that system changes are installed in a timely, accurate, and efficient manner.
                     The Proposer shall discuss its understanding of the following:

                     i.   Work to be performed;

                     ii. How the Proposer will ensure system changes are completed promptly and
                         timely, including how the Proposer will system-test any changes to ensure that
                         errors are not introduced into the system;

                     iii. SOW requirements described in Exhibit A, Attachment II, Operations;

                     iv. Interrelationships and functional dependencies;

                     v. Changes, if any, required to accomplish System Group Procedures and
                        Organization activities;

                     vi. Impact(s) of Systems Group Procedures and Organization on the Department,
                         providers, and beneficiaries;

                     vii. How the Proposer will ensure that staff work on Department-defined priorities
                          and status of the ongoing work will be communicated to the Department; and

                     viii. Any other special considerations.


                                                  Page 35
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

                j)   Provider Services Plan

                     The Proposer shall describe how it plans to manage the Provider Services area of
                     the contract to ensure that contract requirements are met and performance is
                     successful. Include a brief description of how the Proposer will proactively approach
                     problem identification and solution, and how the Proposer intends to increase
                     provider satisfaction. The Proposer shall discuss its understanding of the following:

                     i.   Work to be performed;

                     ii. SOW requirements described in Exhibit A, Attachment II, Operations;

                     iii. Interrelationships and functional dependencies;

                     iv. Changes, if any, that are required to accomplish provider services activities; and

                     v. Impact(s) of provider relations work on the Department, providers, and
                        beneficiaries.

                k) Beneficiary Services Plan

                     The Proposer shall describe how it plans to manage the Beneficiary Services area of
                     the contract to ensure that contract requirements are met and performance is
                     successful. Include a brief description of how the Proposer will proactively approach
                     problem identification and solution, and how the Proposer intends to increase
                     beneficiary satisfaction. The Proposer shall discuss its understanding of the
                     following:

                     i.   Work to be performed;

                     ii. SOW requirements described in Exhibit A, Attachment II, Operations;

                     iii. Interrelationships and functional dependencies;

                     iv. Changes, if any, that will be required to accomplish beneficiary services
                         activities; and

                     v. Impact(s) of beneficiary services work on the Department, providers, and
                        beneficiaries.

                l)   System Utilization Review Subsystem Plan (S/URS)

                     The Proposer shall describe how it plans to manage the S/URS area of the contract
                     to ensure that contract requirements are met and performance is successful. Include
                     a brief description of procedures, processes, methods and tools that will be used to
                     ensure S/URS processing requirements are met. The Proposer shall discuss its
                     understanding of the following:

                     i.   Work to be performed and how the Proposer will ensure accuracy and improve
                          performance;

                     ii. SOW requirements described in Exhibit A, Attachment II, Operations;

                     iii. Interrelationships and functional dependencies;


                                                  Page 36
California Dental FI Request For Proposal                                     DRAFT RFP 10-87013

                    iv. Changes, if any, that will be required to accomplish S/URS activities;

                    v. Impact(s) of S/URS activities on the Department, providers, and beneficiaries;
                       and

                    vi. Any other special considerations.

         m. Demonstrations

                    Proposers shall identify the geographical location where on-site demonstrations may
                    be conducted. If the Department desires to conduct a site visit, it will advise the
                    Proposer of the time, date, and content to be demonstrated. The Department will
                    require that the demonstration(s) occur in Sacramento, California, if possible. Any
                    travel costs associated with the demonstration(s) shall be borne by the Proposer and
                    are in no way billable to the Department.

         n. Optional Contractual Services (OCS) Section

             1) OCSs are proposed methods of providing contract services beyond those required in the
                Scope of Work, Exhibit A, Attachments I through V. The Proposers OCSs must relate to
                claims processing or other services required by this RFP. Each OCS must show
                improved contract administration or a logical expansion of services to be provided under
                the contract. They may cover recommendations for improvements to automated
                systems, services, activities, or processes above RFP requirements or current CD-MMIS
                operation.

                a) Refer to Section l.3. below for OCS Submission Requirements.

                b) Each Proposer shall have an opportunity to develop and submit up to three (3)
                   OCSs, however Proposers may submit no more than three (3) OCSs. The
                   Department, at its sole discretion will determine if the three (3) OCSs warrant further
                   evaluation.

             2) The Department intends to implement any OCS that it has accepted as a part of the
                successful Proposers narrative proposal and intends to adjust any affected contractual
                performance requirements accordingly. Because the Department may elect to not
                implement an OCS, the OCSs shall be separately priced in the bid. Specific terms and
                conditions associated with an OCS will be addressed at the time of contract execution.
                Department-accepted OCSs, if proposed for installation at the assumption of the TAR
                processing, shall be ready for Department acceptance testing during Takeover.
                Proposers may propose a delayed implementation date in their OCS plan, but shall allow
                a minimum of six weeks for Department acceptance testing prior to notifying providers of
                the OCS enhancement.

                a) An OCS shall be designed for implementation on or after the start of operations. The
                   Contractor shall not implement any OCS during the Takeover phase of the contract.

                b) The Department may use any OCS submitted to the Department by any proposer for
                   any purpose. The successful Proposer may be required to develop and implement
                   any such OCS, whether or not that Proposer originally submitted such OCS to the
                   Department. If an OCS is used from the proposal of an unsuccessful Proposer, that
                   Proposer will not be reimbursed or compensated in any manner for the use of the
                   OCS.

             3) OCS Submission Requirements

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California Dental FI Request For Proposal                                      DRAFT RFP 10-87013


                Any single OCS submission shall not exceed twenty (20) two-sided, single-spaced,
                typed pages with a font type no smaller than eleven (11) points. Flow charts and graphic
                material are excluded from this page limitation, but should be minimized whenever
                possible.

                For each OCS, the Proposer shall:

                a) Describe the OCS and how it complements the Scope of Work requirements and
                   improves performance or contract administration beyond the Scope of Work;

                b) Describe what the Proposer thinks are the benefits obtained by the OCS. Specific
                   attention should be placed on the impact of the OCS on beneficiaries, providers,
                   program cost control, and the Department;

                c) Describe and identify any areas that exceed, improve upon, or are more stringent
                   than the Scope of Work requirements. If an OCS proposes more stringent
                   requirements than those required in the Scope of Work, and the Department has
                   formally indicated its approval of the more stringent requirements, the Proposers
                   narrative proposal commitment (as described in the accepted OCS) shall supersede
                   the Scope of Work requirements;

                d) Submit supporting documentation and information from which the Department can
                   evaluate the extent to which the OCS exceeds the stated Scope of Work
                   requirements; and

                e) Include an implementation date and schedule.

                f)   The Department may require the Proposer to present an oral presentation of its
                     OCS(s).

                     After the award of the contract, presentations to DHCS to further discuss proposed
                     OCS’, if any, shall be held in Sacramento, California, if possible. Any travel costs
                     associated with the presentations shall be borne by the Contractor.

                n) Appendix Section

                     Place the following documentation in the Appendix Section of the proposal in the
                     order shown below.

                     1) Proof of Corporate status

                       If the Proposer is a Corporation, Limited Liability Company or Limited Partnership,
                       submit either a copy of the proposing firm’s most current Certificate of Status
                       issued by State of California, Office of the Secretary of State or submit a
                       downloaded copy of the proposing firm’s on-line status information from the
                       California Business Portal website of California’s Office of the Secretary of State.
                       Include an explanation if this documentation cannot be submitted. Unless
                       otherwise specified, do not submit copies of the proposing firm’s Bylaws or
                       Articles of Incorporation. Check the appropriate box on Attachment 2 Certification
                       Checklist.

                     2) Proof of Nonprofit status



                                                Page 38
California Dental FI Request For Proposal                                     DRAFT RFP 10-87013

                      Nonprofit organizations must prove they are legally eligible to claim “nonprofit”
                      and/or tax-exempt status by submitting a copy of an IRS determination letter
                      indicating nonprofit or 501 (3) (c) tax-exempt status. Submit an explanation if this
                      documentation cannot be supplied. Check the appropriate box on Attachment 2
                      Certification Checklist.

                   3) An organization chart

                      The organization chart must show the distinct lines of authority between and
                      among the divisions that will perform the project work and the primary reporting
                      relationships within the Proposers organization. Show the relationships between
                      management, key decision makers, supervisory personnel and subcontractors
                      and/or independent consultants, if any. Check the appropriate box on Attachment
                      2 Certification Checklist.


                   4) Financial statements

                      Submit copies of financial statements for the past two years or most recent
                      twenty-four (24) month period.

                      a)   Annual income statement(s), and
                      b)   Quarterly or annual balance sheets

                      Audited statements are preferred, but not required. If audited financial statements
                      are supplied, all noted audit exceptions must be explained. DHCS will accept
                      financial statements prepared by a Proposers financial accounting department,
                      accounting firm or an auditing firm. A statement signed by a Proposers Chief
                      Financial Officer certifying that the financial statements are accurate and complete
                      must accompany all financial statements. Check the appropriate box on
                      Attachment 2 Certification Checklist.

                   5) Staff resumes

                      Resume specifications appear in the Personnel Section. To the extent possible,
                      resumes should not exceed 1-2 pages in length per person and should not include
                      personal information such as a social security number, home address, home
                      telephone number, home email address, marital status, sex, birth date, age, etc.
                      Check the appropriate box on Attachment 2 Certification Checklist.

                   6) Subcontractor/Consultant resumes

                      Submit a resume for each pre-identified subcontractor or independent consultant,
                      if any, as discussed in the Project Personnel Section. To the extent possible,
                      resumes should not exceed 1-2 pages in length per person and should not include
                      personal information such as a social security number, home address, home
                      telephone number, home email address, marital status, sex, birth date, age, etc.
                      Check the appropriate box on Attachment 2 Certification Checklist.

                   7) Subcontractor/Consultant letters of agreement

                      For each pre-identified subcontractor and independent consultant that will be used
                      to perform services under the resulting contract, submit a letter of agreement to
                      work on this project.


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California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

                      A letter of agreement must be signed by an official representative of each
                      subcontracted firm or independent consultant, acknowledging their intended
                      participation/availability to work on this project and acknowledging they have read
                      or been made aware of the terms and conditions of the proposed contract.
                      Include an explanation if a letter of agreement cannot be obtained from each pre-
                      identified subcontractor and consultant and indicate when a letter of agreement
                      will be forthcoming. Check the appropriate box on Attachment 2 Certification
                      Checklist.

                   8) Attestations

                      a) An attestation that this Contract will be a high priority to the Proposer and that
                         the Proposer is committed to supplying any necessary resources to meet its
                         Contractual obligations.

                      b) An attestation from each subcontractor (including consultants), if any, that this
                         Contract is of high priority to the subcontractor and that the subcontractor is
                         committed to supplying any necessary resources to assure full performance of
                         the Contract.

                      c) An attestation from each parent organization, if any, that this Contract is of
                         high priority to the parent organization and that he parent organization is
                         committed to supplying any necessary resources to assure full performance of
                         the Contract.
                         Check the appropriate box on Attachment 2 Certification Checklist.

                   9) Conflict of Interest Compliance Certificate


                      a) Any firm that intends to submit a Proposal is required to submit Attachment 15
                         certifying that the proposing firm:

                         i. Is not currently involved with or connected to any Contractor or
                            subcontractor (including consultant) that is Contracted with any Medi-Cal
                            Managed care health plan, provider, or billing agent for Medi-Cal Services,
                            and;

                         ii. Understands that the conflict of interest requirements shall remain in effect
                             for the entire life of the contract.

                      b) If a conflict of interest is determined to exist that cannot be resolved to the
                         satisfaction of DHCS, before the award of the Contract, the conflict will be
                         grounds for deeming a Proposal nonresponsive.




                      c) Proposers must assess their own situation according to the Conflict of Interest
                         Compliance Certification information in Attachment 15. Complete, sign, and
                         attach any required documentation according to the instructions on the
                         attachment. Place Attachment 15 and any accompanying documentation
                         in the Appendix Section of the Proposal.

         o. Forms Section


                                               Page 40
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

             Complete, sign, and include the forms/attachments listed below. When completing the
             attachments, follow the instructions in this section and any instructions appearing on the
             attachment. After completing and signing the applicable attachments, assemble them in the
             order shown below. Check the appropriate box on Attachment 2, Required Attachments/
             Certification Checklist.



              Attachment #, Name,
              or Documentation         Instructions
              2 - Required             1) Check each item with “Yes” or “N/A”, as applicable, and
                  Attachment /             sign the form. If necessary, explain the choices.
                  Certification
                  Checklist            2) If a Proposer marks “Yes” or “N/A” and makes any
                                          notation on the checklist and/or attaches an explanation to
                                          the checklist to clarify their choice, DHCS considers this a
                                          “qualified response”. Any “qualified response”,
                                          determined by DHCS to be unsatisfactory or insufficient to
                                          meet a requirement, may cause a Proposal to be deemed
                                          nonresponsive.

              2a Required              1) Check each item with “Yes” or “N/A”, as applicable, and
                 Attachment               sign the form. If necessary, explain the choices.
                 Certification
                 Checklist Cost        2) If a Proposer marks “Yes” or “N/A” and makes any
                 Proposal                 notation on the checklist and/or attaches an explanation to
                                          the checklist to clarify their choice, DHCS considers this a
                                          “qualified response”. Any “qualified response”,
                                          determined by DHCS to be unsatisfactory or insufficient to
                                          meet a requirement, may cause a Proposal to be deemed
                                          nonresponsive.

              3 - Business             Completion of the form is self-explanatory.
                  Information Sheet

              4 – Client References    Identify three (3) clients serviced within the past five years that
                                       can confirm their satisfaction with the Proposers services and
                                       confirm that the Proposer provided timely and effective
                                       services or deliverables. If possible, identify clients whose
                                       needs were similar in scope and nature to the services sought
                                       in this RFP. List the most recent first.

              5 - RFP Clause           Complete and sign this form indicating a willingness and
                  Certification        ability to comply with the contract certification clauses
                                       appearing in the RFP section entitled, “Bid Requirements and
                                       Information,” subsection “Bidding Certification Causes”.

              6 - CCC 307 –            Complete and sign this form indicating a willingness and
                  Certification        ability to comply with the Contractor Certification Clauses
                                       appearing in this Attachment. The attachment supplied in this
                                       bid represents only a portion of the contractor information in
                                       this document. Visit this web site to view the entire document:
                                       http://www.ols.dgs.ca.gov/Standard Language/default.htm.



                                               Page 41
California Dental FI Request For Proposal                                        DRAFT RFP 10-87013

              Attachment #, Name,
              or Documentation            Instructions
              7 - Payee Data Record       Complete and return this form, only if the proposing firm has
                                          not previously entered into a contract with DHCS. If
                                          uncertain, complete and return the form.

             8 - Follow-on           Complete and sign this form. If applicable, attach to this form
                 Consultant Contract the appropriate disclosure information.
                 Disclosure

              9a - Actual DVBE            Read and carefully follow the completion instructions in
                   Participation and      Attachment 9. Attach the documentation that is required for
                   applicable DVBE        the form(s) that are submitted. One and/or both of these two
                   certification(s)       forms may be required. Submission of the forms identified
                   and/or                 here only applies to Contract awards that will equal
                                          $10,000 or more for the entire Contract life.

              10 – Darfur Contracting     If applicable, complete, sign and return this form and the
                  Act Certification       required documentation if applicable. Detailed completion
                                          instructions appear on the cited attachment.

              11a-Non-Small               Submission of these forms is optional. Read and carefully
                  Business                follow the completion instructions in Attachments 11, 11a, and
                  Subcontractor           11b. Complete and return Attachments 11a and 11b only if
                  Preference              the bidding firm is a not a certified small business but is
                  Request                 requesting a subcontractor bidding preference by committing
                                          to use one or more certified small business subcontractors for
              11b-Small Business
                                          an amount equal to at least 25% of the total bid price.
                  Subcontractor /
                  Supplier
                  Acknowledgement

              12 – Bid Sheets             Completion of the form is self-explanatory.

              13 – “Voluntary” Letter     This is a non-binding Letter of Intent whose purpose is to
                  of Intent               assist DHCS in determining the staffing needs for the
                                          Proposal evaluation process and to improve future
                                          procurements (refer to Section I, “Voluntary” Non-Binding
                                          Letter of Intent ).
              14 – Request for            This is a voluntary request form, which will allow DHCS to
                   Inclusion on           continue to provide your firm with the automatic updates to
                   Mailing List           this RFP (refer to RFP Section Q, Bid Requirements and
                                          Information).
              15 – Conflict of Interest   Proposers must assess their own situation according to the
                   Compliance             Conflict of Interest Compliance Certification information in this
                   Certificate            attachment. Complete, sign, and attach any required
                                          documentation according to the instructions in the attachment.

                                          In the event a Proposer has a suspected or potential conflict
                                          relationship, the Proposer must provide a written statement to
                                          DHCS that describes what relationship it has with the entity in
                                          question, and its plan for protecting DHCS from any potential
                                          conflict or negative impact.



                                                 Page 42
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013

M.    Cost Proposal Format and Content Section

      1. General instructions

         a. Instructions for completing the Price Bid Sheets (Attachments 12-1 through 12-15) will be
            included as Attachment 12 to this RFP.

         b. Each firm or individual shall submit only one (1) Cost Proposal. For the purpose of this
            paragraph, “firm” includes a parent corporation or firm and any other subsidiary of that
            parent corporation. If a firm or individual submits more than one (1) Cost Proposal, DHCS
            will reject all proposals submitted by that firm or individual.

         c. Develop cost proposals by following all RFP instructions and/or clarifications issued by
            DHCS in the form of questions and answer notices, clarification notices, Administrative
            Bulletins or RFP addenda.

         d. Before submitting your cost proposal, seek timely written clarification of any requirements or
            instructions that you believe to be vague, or unclear, or that you do not fully understand.
            The Proposer assumes the risk that its proposal may be rejected for failure to follow a rule or
            requirement which the Department interprets differently than you did in preparing your
            proposal.

         e. Arrange for the timely delivery of your cost proposal to the address specified in this RFP.
            Do not wait until shortly before the deadline to submit the cost proposal. The cost proposal
            is to be submitted at the same time the narrative proposal is submitted.

         f.   The DHCS requires the submission of a cost proposal for all major areas that are bid as
              listed in RFP Attachment 16, Bid Sheet Instructions.

         g. The OCS bid price shall not be included in the total bid price used to determine the lowest
            bid price.

         h. A separate Transmittal Letter is required for the Cost Proposal. The Transmittal Letter
            should be a business letter using a standard business format from the legal entity that would
            be the Contractor. The purpose of the letter is to transmit and legally bind the Proposer to
            the Cost Proposal. The letter should be brief and signed by a person(s) authorized to legally
            bind the Proposer to the Cost Proposal. The letter must include:

              1) Identification of all materials and enclosures being forwarded in response to the cost
                 proposal requirements in the RFP;

              2) Required certification statement that the data submitted for the cost proposal is current,
                 accurate and complete;

              3) A statement that the Proposer is aware that all prices contained in the cost proposal are
                 fixed prices;

                 Please note that the Transmittal Letter must not contain any financial information
                 regarding the bid price(s) contained in the Cost Proposal.

         i.   There shall be two separate cost proposal packages submitted to the Department by the
              Proposers.




                                                 Page 43
California Dental FI Request For Proposal                                     DRAFT RFP 10-87013

             1) The first submission shall be a separate sealed envelope containing the Cost Proposal
                Transmittal Letter and Attachment 16, Cost Proposal Response Guide. This submission
                is more fully explained in RFP Section M.h.

             2) The second submission shall be in a sealed box containing the Cost Proposal Bid Price
                Forms listed on the Cost Proposal Response Guide and as detailed in RFP Section L.3.


      2. Format Requirements

         a. Submit one (1) original and eleven (11) copies of the Cost Proposal Transmittal Letter and
            Cost Proposal Response Guide as described in RFP Section L.3 in a separate sealed
            envelope. Tape this envelope on the outside of the box containing the cost proposal bid
            price forms.

         b. Submit one (1) original set, eleven (11) copies and four (4) CD-ROMS of the cost proposal
            bid price forms as follows:

             1) Assemble the original set and eleven (11) copies of the cost proposal bid price forms as
                instructed in RFP Section L.5. Clearly label the original hard copy “Original Set”.

             2) The original set and eleven (11) copies of the cost proposal bid price forms must be
                submitted in a separate container apart from the narrative proposal, under sealed cover,
                with the signature of a person(s) authorized to legally bind the Proposer (Contractor).

             3) Proposers shall also submit four (4) copies of the cost proposal bid price forms on CD-
                ROM. The CD-ROM shall be in Microsoft Excel spreadsheet format. Cost proposal CDs
                must be separate from the narrative proposal CD.

             4) If you have multiple containers, each container must be identified, e.g., Box 1 of 12, Box
                2 of 12, etc.

             4) The cost proposal bid price forms listed under RFP Section L.3. must be distinctly
                marked as follows on the exterior of the container:

                COST PROPOSAL FOR THE
                CALIFORNIA DENTAL MEDICAID MANAGEMENT INFORMATION SYTEM
                RFP 10-87013

         c. Format the cost proposal as follows:

             1) Enter your costs on the bid price forms (Attachments 12-1 through 12-15). OMCP will
                provide Proposers a disk containing the bid price forms that contain the embedded
                formulas on a protected disk. Proposers may request the disk in Excel format by
                contacting OMCP at (916) 552-8006. DHCS will provide these disks to Proposers at no
                cost.

             2) Hard copy pages must be printed single-sided on white bond paper.

             3) Bind the cost proposal bid price forms in a way that enables easy page removal. The
                proposal must be submitted three-hole punched in loose leaf or three ring binders.

         d. Certain documents that must be submitted as part of the cost proposal need a signature.
            These documents require a signature to be signed in ink, preferably in a color other than
            black.

                                                Page 44
California Dental FI Request For Proposal                                        DRAFT RFP 10-87013


             1) Have the person who is authorized to bind the Proposer sign each original cost proposal
                document or bid price form that requires a signature. Signature stamps are not
                acceptable.

             2)   Place the originally signed documents in the cost proposal set marked “Original Set”.

             3) The signed original RFP documents in the original set may be photocopied for placement
                in the eleven (11) copies.

      3. Escrow Bid Documents

         a. Scope

             Proposers shall be required to submit one (1) copy of all documentary information
             developed by the Proposer in preparation of bid prices for this procurement. This
             documentary information shall be submitted within three (3) calendar days after the
             Contract is signed. This material shall be known as the Escrow Bid Documents and shall
             be held in escrow for the duration of the Contract.

             Escrow Bid Documents may be required to support resolution of disputes, settlement of
             claims, Change Order pricing and cost section requirements relative to the price bid to
             DHCS in the CA-MMIS Contract. Escrow Bid Documents may also be used in the following
             circumstances:

                  i. In the event that additional services of the contractor are at a level unanticipated by
                     the original RFP;

                  ii. In the event that fewer contract services are required, (such as a significant reduction
                      in the Medi-Cal program);

                  Additionally, this information could be used to support the pricing structure in the event
                  of a regulatory agency finding where examination of the pricing structure is required.

         b. Format and Content

             Proposers may submit Escrow Bid Documents in their usual cost estimating format.
             However, for each service bid, Proposers are required to present a detailed schedule of its
             cost, expenses and assumptions used to develop the bid price for each year the service is
             bid. The Escrow Bid Documents should present a picture explaining how the Proposer
             arrived at the bid price presented to DHCS. The document should explain what elements
             were identified in arriving at the price presented. Units of production, hourly rates, salaries
             or percentage of salaries apportioned to the activity bid, machine hours, direct material cost,
             any fixed cost, mixed cost, variable cost and overhead/indirect cost should be identified in
             the presentation of the bid development. The breakdown of each cost element must be
             appropriate to the element being identified.

             The price/cost of each element must be clearly stated.

             The level of detail used to establish all cost elements shown must be relevant to the
             significance of the cost identified and must be reflective of your bid.

             Proposers should identify each cost as either a variable, fixed or mixed cost. Proposers
             should state any assumption used in identifying a cost as variable, fixed or mixed. If a


                                                  Page 45
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013

             Proposer chooses to identify a cost as mixed, please explain in full detail why the cost is
             believed to be both a fixed and variable cost.

             When identifying a fixed cost Proposers should identify the asset(s) and state the
             percentage of usage that applies to the cost element. For example, if the building for the
             telephone center contains both the telephone center and offices for the management staff of
             the project, with the telephone center using 70% of the floor space and the management
             staff using 30% of the floor space, then the fixed cost element of the bid price for the
             telephone center should show 70% of the building as a fixed price element. Additionally, in
             the example, the remaining 30 % of the building cost would be shown in the overhead cost
             of the organization.

             Proposers should identify all major fixed assets and discuss what effect either the
             contraction or expansion of the Contract would have on fixed assets. Proposers should
             include a discussion of how fixed cost might be reduced in the event of a contraction and
             should identify what volume of expansion might require additional fixed asset(s). In the
             event of an expansion of the Contract where additional fixed assets are required, Proposers
             can expect to be required to support any increase in fixed cost regarding the expansion with
             documentation showing the acquisition or use of those fixed assets.

             If any significant asset is identified by the Proposer that is shared with any project outside
             the SOW of this project, it must clearly be documented and demonstrated that the cost
             apportioned to the CA-MMIS is appropriate. For purposes of identifying a “significant asset”,
             report on any shared asset where the cost represents 25 % or more of the cost of the total
             bid amount for the year. Also, report on the asset if the total cost to the bid amount is
             greater $100,000.

             Do not report fixed assets that would normally be classified as part of overhead cost. For
             example, the fixed cost associated with payroll billing might have expenses that would meet
             the greater than $100,000 clause, however, as a normal and customary expense of
             overhead this expense would not be identified separately.

             Corporate overhead must be based on a rational distribution of corporate overhead
             expenses. Those costs must not be disproportional to the CA-MMIS Contract. Overhead
             cost must be shown to be allocated on rational basis that is applied to all similar contracts or
             operations and can be substantiated upon request.

             An examination of any allocated expenses should not show that the allocation exceeds the
             total actual expense of the allocated expense. (Allowing for any immaterial rounding issues.)




         c. Ownership and Confidentiality

             The Escrow Bid Documents are and will always remain the property of the Proposer, subject
             only to joint review by the DHCS and the Proposer.

             DHCS stipulates and expressly acknowledges that the Escrow Bid Documents constitute
             trade secrets, and are proprietary and confidential. This acknowledgment is based on
             DHCS express understanding that the information contained in the Escrow Bid Documents
             is not known outside the Proposer’s business, is known only to a limited extent and only by
             a limited number of employees of the Proposer, is safeguarded while in the Proposer’s
             possession, is extremely valuable to the Proposer, and could be extremely valuable to the
             bidder’s competitors by virtue of it reflecting the Proposer’s contemplated techniques of

                                                 Page 46
California Dental FI Request For Proposal                                     DRAFT RFP 10-87013

             operation. DHCS acknowledges that the Proposer expended substantial sums of money in
             developing the information included in the Escrow Bid Documents and further acknowledges
             that it would be difficult for a competitor to replicate the information contained therein.
             DHCS further acknowledges that the Escrow Bid Documents and the information contained
             therein are made available to DHCS only because such action is an essential element of the
             Proposer’s responsibility. DHCS acknowledges that the Escrow Bid Documents include a
             compilation of information used in the Proposer’s business, intended to give the Proposer an
             opportunity to obtain an advantage over competitors who do not know of or use the contents
             of the documentation.

             DHCS agrees to safeguard the Escrow Bid Documents and all information contained
             therein, against disclosure to the fullest extent permitted by law.

         d. Storage

             The Escrow Bid Documents shall be placed in escrow for the life of the Contract, in an
             institution acceptable to both DHCS and the Proposer. The cost of storage shall be the
             responsibility of the Proposer.

         e. Examination of Escrow Bid Documents

             DHCS requires that a narrative of facts and information be included in the Escrow Bid
             Documents as required cost justification. While these issues may be explained in the
             normal course of preparing the Escrow Bid Documents, DHCS wishes to be assured that
             these points are discussed and explained, if applicable. In addition to any other information
             already supplied, the narratives are to explain the general structure, business practices and
             assumptions made in preparing the Cost Proposal, as applicable. Include or identify as
             provided any source documentation required to support the narrative.

             DHCS reserves the right to examine the Escrow Bid Documents (in conjunction with the
             Proposer) for compliance with the reporting requirements associated with those documents.
             The Contracting Officer and the Proposer shall each designate, in writing to the other party
             and a minimum of five (5) State work days prior to examination, representatives who are
             authorized to examine the Escrow Bid Documents. No other person shall have access to
             the Escrow Bid Documents.

             DHCS does not intend to review all Escrow Bid Documents submitted, although DHCS does
             reserve the right to do so. To facilitate the review (limited or broader in scope), the Escrow
             Bid Documents must be grouped and placed in a separate sealed container. The container
             shall be clearly marked on the outside with the Proposer’s name, date of submittal,
             procurement identification, and the words “Escrow Bid Documents.”


             The Escrow Bid Documents shall be accompanied (with an index packaged separately) to
             the inventory of the contents of the documents, and the Bid Documentation Certification
             Attachment 18, signed by the individual authorized by the Proposer to execute the bid price
             proposal.

             Narrative information should be included in the package to which that narrative information
             most closely relates. For example, if the narrative information relates to allocated expenses,
             assets or cost, the information should be placed in the envelope that seems most relevant to
             information provided. For audit purposes, only those envelopes DHCS chooses to audit
             shall be opened.



                                                Page 47
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

             Ten (10) State work days after Contract Execution Date, the Proposer must be ready to
             review the Escrow Bid Documents along with the presence of DHCS, prior to placing the
             documents in escrow. This is to assure conformance with all requirements and to verify
             completeness of the information included. This review should be considered a condition of
             contract acceptance Should the reviewed documents fail to meet a level of acceptance
             agreeable to DHCS, DHCS reserves the right review additional Escrow Bid Documents up to
             and including all Escrow Bid Documents submitted. If material deficiencies are noted,
             including the level of detail provided, the Proposer shall be required to correct all
             deficiencies to the satisfaction of DHCS within ten (10) State work days. Failure to correct
             the deficiencies shall be deemed grounds to find the Contractor in breach of contract at
             which time DHCS will invoke its right to collect on the Letters of Credit and award the
             contract to the second highest scoring proposal.

N.    Proposal Submission

      1. General Instructions

         a. Mail or arrange for hand delivery of all the parts of your Proposal (narrative and cost) to
            DHCS, OMCP. Do not wait until shortly before the deadline to submit your Proposal.
            Proposals may not be transmitted by fax or email.

         b. OMCP must receive all parts of your Proposal, regardless of postmark or method of delivery,
            by 4:00 p.m. Pacific Time on TBD.

         c. Late Proposals will not be reviewed or scored. Proposals received after the deadline will be
            returned to the Proposer.

         d. It is the sole responsibility of the Proposer to ensure that the OMCP receives Proposals by
            the required time and date.

             Label and submit the
             Proposal using one (1) of
             the following
             methods:Hand Delivery
             or Overnight Express:                        U.S. Mail:

             Proposal - RFP 10-87013                      Proposal - RFP 10-87013
             California Dental Medicaid                   California Dental Medicaid Management
             Management Information Systems               Information Systems
             Attn: Devyn Stanger, Lisa Flanders or        Department of Health Care Services
             Brian Quacchia                               Contract Management Unit
             Department of Health Care Services           Mail Station 1403
             Contract Management Unit                     P.O. Box 997413
             Mail Station 1403                            Sacramento, CA 95899-7413
             1501 Capitol Avenue, Suite 71.5195
             Sacramento, CA 95814


         e. Proposer warning

             1) DHCS’ internal processing of U.S. mail may add 48 hours or more to the delivery time. If
                the proposal is mailed, consider using certified or registered mail and request a receipt
                upon delivery.



                                                Page 48
California Dental FI Request For Proposal                                     DRAFT RFP 10-87013

             2) If you choose hand delivery, allow sufficient time to locate street metered parking and to
                sign-in at the security desk. If detained at the security desk, ask security personnel to
                call the DHCS Office of Medi-Cal Procurement at 552-8006 to arrange for proposal
                pickup and receipt issuance. Proposers are warned not to surrender their proposals in
                the care of a person other than DHCS Office of Medi-Cal Procurement staff.

             3) Courier service personnel must sign-in at the security station and must obtain an access
                key card. Couriers will then be able to access pre-determined areas. If detained at the
                security desk, ask security personnel to call the DHCS Office of Medi-Cal Procurement
                552-8006 to have an Office of Medi-Cal Procurement staff member collect the proposal
                package(s) and to issue a receipt. Couriers are warned not to surrender proposals in
                the care of a person other than DHCS Office of Medi-Cal Procurement.

      2. Proof of timely receipt

         a. DHCS staff will log and attach a date/time stamped slip or bid receipt to each proposal
            package/envelope received. If a proposal envelope or package is hand delivered, DHCS
            staff will give a bid receipt to the hand carrier upon request.

         b. To be timely, DHCS’ Office of Medi-Cal Procurement must receive each proposal at the
            stated delivery address no later than 4:00 p.m. on the proposal submission due date.
            Neither delivery to the department’s mailroom, or to the DHCS program that issued this
            RFP, or a U.S. postmark will serve as proof of timely delivery.

         c. Any narrative or cost proposals received after 4:00 p.m. on TBD, will be rejected by the
            Department as not being timely. There will be no exceptions to this policy. DHCS will deem
            late proposals nonresponsive.

         d. Late proposals will not be reviewed or scored. Proposals received after the deadline will be
            returned to the Proposer.

         e. It is the sole responsibility of the Proposer to ensure that the OMCP receives proposals by
            the required time and date.

      3. Proposer costs

         Proposers are responsible for all costs of developing and submitting a proposal. Such costs
         cannot be charged to DHCS or included in any cost element of a Proposers price offering.

O.    Evaluation and Selection

      A multiple stage evaluation process will be used to review and score Proposals. DHCS will reject
      any proposal that is found to be nonresponsive at any stage of evaluation. A separate evaluation
      committee will be used for all stages during the evaluation and selection process. The evaluation
      committee is comprised of four (4) groups:

      The Preliminary Review Committee (PRC) consists of team leads from OMCP and Medi-Cal
      Dental Services Division (MDSD) and conducts the Stage 1 review.

      The Evaluation Scoring Committee (ESC) consists of Medi-Cal Dental Services Division staff and
      staff from other DHCS Divisions and other State agencies with appropriate expertise. The ESC
      conducts the review of the proposals.

      The Rating Review Committee (RRC) consists of OMCP management staff and members of the
      PRC. The RRC will interact with the ESC throughout the evaluation process. In fulfilling its

                                                Page 49
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

      functions, the RRC may consult with any appropriate individuals within DHCS, other State
      departments, or consultants.

      The Executive Review Committee (ERC) consists of DHCS Executive management officials. The
      ERC acts as a final decision-making authority for Proposal evaluation issues without knowledge of
      any bidder to which the issue applies. The ERC assures all appropriate processes have been
      followed. Additionally, the ERC may seek independent review or advice from individuals, including
      internal auditors, from within DHCS or elsewhere regarding issues including, but not limited to,
      procurement policy matters, Narrative Proposal and/or Cost Proposal deficiencies, and
      acceptability. Finally, the ERC provides final approval of the procurement process in order to
      determine the awardee.

      DHCS Internal Audits & Investigations Office performs a review of every procurement. The purpose
      of the review is to assure each Proposer that the requirements of the RFP have been followed
      exactly and that the evaluation process was conducted in the manner prescribed in the RFP. In
      some cases, two (2) reviews are performed – one (1) immediately upon conclusion of the scoring of
      the Narrative portion of the Proposal and one upon the conclusion of the scoring of the Cost
      Proposal. DHCS will not proceed to the opening of the Cost Proposal until the review of the
      Narrative Proposal is complete. An Intent to Award the Contract is not released until the ERC is
      informed of the results of each review and approves the release of the Intent to Award.

      DHCS will reject any Proposal that is found to be nonresponsive at any stage of the evaluation.
      Pursuant to Public Contract Code 10305, DHCS will only make opened bid components available
      for public inspection. Only upon a court order will DHCS make unopened bid components available
      for public inspection.

      1. Stage 1 – Required Attachment / Certification Checklist Review for the Narrative Proposal
         (Attachment 2)

         a. Once any bid component is opened, it will be made available for public inspection pursuant
            to Public Contract Code 10305. At the conclusion of the entire procurement process, to
            include a Protest, all unopened bid components will be confidentially destroyed or, if
            requested, returned to the Proposer at its expense.

         b. Shortly after the proposal submission deadline, the PRC will convene to review each
            Narrative Proposal for timeliness, correct packaging, completeness and initial
            responsiveness to the RFP requirements.

         c. In this review stage, PRC will compare the contents of each proposal to the claims made by
            the Proposer on the Required Attachment / Certification Checklist to determine if the
            Proposers claims are accurate.

         d. If deemed necessary, PRC may collect additional documentation (i.e., missing forms,
            missing data from RFP attachments, missing signatures, etc.) from a Proposer to confirm
            the claims made on the Required Attachment / Certification Checklist and to ensure that the
            Proposal is initially responsive to the RFP requirements. It is incumbent upon the Proposer
            to ensure that all required forms, data, information, etc. are complete, correct, and signed (if
            required) when the proposal is submitted.

         e. If a Proposer’s claims on the Required Attachment / Certification Checklist cannot be proven
            or substantiated, the Proposal may, at DHCS’ sole discretion, be deemed nonresponsive
            and rejected from further consideration.




                                                Page 50
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013

         f.   Narrative Proposals shall not include any costs, prices or pricing information related to the
              administration of the Contract. If such information is submitted, it may constitute grounds for
              rejection of the Narrative Proposal as nonresponsive.

         g. The RRC will make determinations regarding a Narrative Proposal’s deficiencies and
            acceptability. A determination of acceptability will be made according to the following
            definition:

              Acceptable – Narrative Proposals that have passed all criteria and have passed the Stage 1
              requirements.

              Unacceptable – Narrative Proposals that have failed to pass one (1) or more criteria.

         h. Any Narrative Proposal that passes the Stage 1 review will be subjected to Stage 2, which
            includes a final weighted point-scoring component of the Narrative Proposal.

      2. Stage 2 - Narrative Proposal Evaluation/Scoring

         a. Proposals that meet the basic format requirements, initial qualification requirements and
            contain the required documentation, as evidenced by passing the Stage 1 review, will be
            submitted to the ESC.

         b. The ESC will review and evaluate and numerically score the scored sections of the
            proposals based on the proposal’s adequacy, thoroughness, and the degree to which it
            complies with the RFP requirements.

         c. DHCS will use the following scoring system to assign points. Following this chart is a list of
            the considerations that raters may take into account when assigning individual points to a
            Narrative Proposal.




               Points Interpretation        General basis for point assignment
                                            Proposal response (i.e., content and/or explanation
                                            offered) is inadequate or does not meet DHCS’
                  0        Inadequate
                                            needs/requirements or expectations. The omission(s),
                                            flaw(s), or defect(s) are significant and unacceptable.
                                            Proposal response (i.e., content and/or explanation
                                            offered) is barely adequate or barely meets DHCS’
                                            needs/requirements or expectations. The omission(s),
                             Barely
                  1                         flaw(s), or defect(s), are consequential but are
                            Adequate
                                            acceptable. The quality of the proposal response is
                                            considered to be less than average for a qualified
                                            Proposer.
                                            Proposal response (i.e., content and/or explanation
                                            offered) is adequate or meets DHCS’ basic
                                            needs/requirements or expectations. The omission(s),
                  2         Adequate
                                            flaw(s), or defect(s), if any, are inconsequential and
                                            acceptable. The proposal response is considered to be
                                            of average quality for a qualified Proposer.




                                                 Page 51
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013

              Points Interpretation        General basis for point assignment
                                            Proposal response (i.e., content and/or explanation
                                            offered) is more than adequate and fully meets DHCS’
                           More than        needs/requirements or expectations. No omission(s) or
                 3
                           Adequate         flaw(s) are apparent. The proposal response is not
                                            considered outstanding but is above the average quality
                                            that is expected from a qualified Proposer.
                                            Proposal response (i.e., content and/or explanation
                                            offered) is well above average or exceeds DHCS’
                                            needs/requirements or expectations. Proposer offers
                         Excellent or       one or more enhancing feature, method or approach
                 4
                         Outstanding        that will benefit the State. Response represents the
                                            best proposal that can be expected of any Proposer.
                                            Any present weakness is minor and unrelated to a
                                            performance requirement.

         d. In assigning points for individual rating factors, raters may consider issues including, but not
            limited to, the extent to which a proposal response:

             1) Is lacking information, lacking depth or breadth or lacking significant facts and/or details,
                and/or

             2) Is fully developed, comprehensive and has few if any weaknesses, defects or
                deficiencies, and/or

             3) Demonstrates that the Proposer understands DHCS’ needs, the services sought, and/or
                the contractor’s responsibilities, and/or

             4) Illustrates the Proposer’s capability to perform all services and meet all scope of work
                requirements, and/or

             5) If implemented, will contribute to the achievement of DHCS’ goals and objectives, and/or

             6) Demonstrates the Proposer’s capacity, capability and/or commitment to exceed regular
                service needs (i.e., enhanced features, approaches, or methods; creative or innovative
                business solutions).

         e. Below are the point values and weight values for each rating category that will be scored.

             1) Proposals, excluding the Cost Section, will be scored on a scale of 0 to 382 points, as
                follows:

                    Rating Category                 Points       Weight        Maximum Score
                        Takeover                     24           0.5               12
                   S/URS Subsystem                   16           2.5               40
                Claims/TARs Processing               32           3.0               96
                  Quality Management                 12           3.0               36
             Systems Group Procedures and
                                                      20           3.0                60
                      Organization
                    Provider Services                12            2.5                30
                  Beneficiary Services               12            2.5                30
               Telephone Service Center              12            3.0                36
             Enterprise Project Management           12            1.0                12
                    Expansion Items                  12            1.0                12
                                                 Page 52
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013

                System Enhancements                   20           0.9                18
             MAXIMUM PROPOSAL SCORE                                                  382

             2) Raters will use the following criteria to score the narrative portion of each proposal:




                                                                                                    Equals
                                                                       Points
   Takeover Plan Evaluation Questions                                               Multiplied       Total
                                                                      Awarded
   Refer to: Exhibit A, Attachment I, Takeover                                      by Weight       Points
                                                                        (0-4)
                                                                                                    Earned
   1. To what extent does the Proposer demonstrate a
   knowledge and understanding of the services to be provided
                                                                                        0.5
   as described in the Takeover Plan?


   When evaluating the above question, consider the following:

      •   Does the Proposer show an understanding of the interrelationships and functional
          dependencies between all required tasks and activities to ensure successful completion of
          Takeover?

      •   Does the Proposer show the ability to develop and implement procedures, processes, methods,
          and tools that will be used to ensure Takeover milestones and deliverable requirements will be
          met, including allocation and distribution of resources?




                                                                                                    Equals
   Organizational and Personnel Acquisition Evaluation                 Points
                                                                                    Multiplied       Total
   Questions                                                          Awarded
                                                                                    by Weight       Points
   Refer to: Exhibit A, Attachment I, Takeover                          (0-4)
                                                                                                    Earned
   2. To what extent does the Proposer meet the requirements
                                                                                        0.5
   outlined for the Organizational Structure and Personnel
   Acquisition Plans?


   When evaluating the above question, consider the following:

      •   Does the Proposer offer methods and techniques to recruit and select staff?

      •   Does the Proposer identify proposed staffing for each organizational unit in the appropriate
          position levels or classifications to support Takeover and begin full CD-MMIS operations?




                                                 Page 53
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013



                                                                                                   Equals
                                                                      Points
   Facilities and Resources Evaluation Questions                                   Multiplied       Total
                                                                     Awarded
   Refer to: Exhibit A, Attachment I, Takeover                                     by Weight       Points
                                                                       (0-4)
                                                                                                   Earned
   3. To what extent does the Proposer demonstrate the
   capability of meeting Facilities and Resources requirements                         0.5
   and responsibilities?

   When evaluating the above question, consider the following:

      •   Does the Proposer show the ability to execute all necessary tasks for providing facilities and
          equipment to ensure CD-MMIS is fully operational prior to the startup of TAR processing
          including Takeover requirements?

      •   Does the Proposer show an understanding of on/off-site hardware/equipment and the
          installation of the hardware/equipment to support the CD-MMIS, including all non-mainframe
          systems?

      •   Does the Proposer show an understanding of Software requirements to support Takeover and
          assume CD-MMIS operations?



                                                                                                   Equals
                                                                      Points
   Security and Confidentiality Evaluation Questions                               Multiplied       Total
                                                                     Awarded
   Refer to: Exhibit A, Attachment I, Takeover                                     by Weight       Points
                                                                       (0-4)
                                                                                                   Earned
   4. To what extent does the Proposer demonstrate knowledge
   and understanding of the services to be provided as described                       0.5
   in the Security and Confidentiality Plan?

   When evaluating the above question, consider the following:

      •   Does the Proposer provide an approach for meeting all applicable federal and State security
          and privacy requirements, as described in this RFP?

      •   Does the Proposer show the ability to develop and implement procedures, processes, methods
          and tools that will be used to ensure sensitive and confidential data is secure?




                                                 Page 54
California Dental FI Request For Proposal                                    DRAFT RFP 10-87013

                                                                                               Equals
   System Test Plan Evaluation Questions
                                                          Points Awarded       Multiplied       Total
   Refer to: Exhibit A, Attachment I, Takeover
                                                               (0-4)          by (Weight)      Points
                                                                                               Earned
   5. To what extent does the Proposer demonstrate
   comprehensive and technically sound approaches
                                                                                     0.5
   and/or methods for coordinating and conducting
   System Testing in Takeover?

   When evaluating the above question, consider the following:

      •   Does the Proposer demonstrate an understanding of activities and tasks required to validate the
          readiness of the CD-MMIS for Acceptance Testing?

      •   Does the Proposer demonstrate an ability to develop and implement procedures, processes,
          methods and tools that will be used to ensure the effectiveness and accuracy of System
          Testing?

      •   Does the Proposer provide a system-tested version of the operational mainframe and non-
          mainframe systems?

      •   Does the Proposer provide an approach to ensure that all functional areas and technical
          requirements will be tested?



   Acceptance Testing Evaluation Questions
                                                      Points Awarded       Multiplied       Equals Total
   Refer to: Exhibit A, Attachment I, Takeover
                                                           (0-4)          by (Weight)      Points Earned

   6. To what extent does the Proposer describe
   their approach for Acceptance Testing to ensure
   proper assumption of operations during                                      0.5
   Takeover?


   When evaluating the above question, consider the following:

      •   Does the Proposer demonstrate an understanding of activities and tasks required to takeover
          and stabilize the CD-MMIS.

      •   Does the Proposer demonstrate an ability to develop and implement procedures, processes,
          methods and tools that will be used to ensure readiness for assumption of CD-MMIS
          Operations?

      •   Does the Proposer provide an approach used to support the Department’s role in monitoring,
          conducting and approving acceptance testing activities and deliverables?




                                               Page 55
California Dental FI Request For Proposal                                         DRAFT RFP 10-87013

   S/URS Subsystem Plan Evaluation                      Points
                                                                     Multiplied       Equals Total Points
   Questions                                           Awarded
                                                                     by Weight             Earned
   Refer to: Exhibit A, Attachment II                    (0-4)
   7. To what extent does the Proposer
   demonstrate a knowledge and understanding
   of the services to be provided as described in
                                                                         2.5
   the CD-MMIS System Utilization Review
   Subsystem Plan (S/UR’s)?


   When evaluating the above question, consider the following:

      •   Does the Proposer demonstrate the knowledge and understanding of the use of fraud detection,
          statistical analysis functionality, on-site audits, statistically valid samples and audit recoveries?

      •   Does the Proposer demonstrate an understanding of the fraud and abuse activities, how the
          data tools must support both formal S/UR’s reporting and profiling and the more intuitive needs
          of fraud and abuse detection?

      •   Does the Proposer demonstrate an understanding of the database monitoring and modification
          requirements?




   S/URS Subsystem Plan Evaluation                      Points
                                                                     Multiplied       Equals Total Points
   Questions                                           Awarded
                                                                     by Weight             Earned
   Refer to: Exhibit A, Attachment II                    (0-4)
   8. To what extent does the Proposer
   demonstrate a plan for maintaining and                                2.5
   coordinating S/URS Operations?

   When evaluating the above question, consider the following:

      •   Does the Proposer offer methods and techniques used to manage workload and the flow of
          workload?

      •   Does the Proposer demonstrate ability to develop and implement procedures, processes,
          methods, and tools that will be used to ensure the S/URS processing requirements will be met?




                                                    Page 56
California Dental FI Request For Proposal                                        DRAFT RFP 10-87013




S/URS Subsystem Plan Evaluation                       Points
                                                                   Multiplied      Equals Total Points
Questions                                            Awarded
                                                                   by Weight            Earned
Refer to: Exhibit A, Attachment II, Exhibit J          (0-4)
9. To what extent does the Proposer meet the
requirements outlined for S/URS Organizational                           2.5
Structure?

When evaluating the above question, consider the following:

   •   Does the Proposer offer S/URS staffing a quantity and mix of resources which are appropriate
       to support S/URS operations?

   •   Does the Proposer provide a realistic approach to managing and tracking resources for both
       billable and non billable tasks?




S/URS Subsystem Plan Evaluation                   Points       Multiplied        Equals Total Points
Questions                                        Awarded       by Weight              Earned
Refer to: Exhibit A, Attachment II                 (0-4)
10. To what extent does the Proposer
demonstrate the capability of meeting all                          2.5
S/URS requirements and responsibilities?

When evaluating the above question, consider the following:

   •   Does the Proposer demonstrate the capability to meet the reporting requirements, including ad
       hoc reporting and pre-defined standardized reporting?

   •   Does the Proposer demonstrate the capability to meet the training requirements?

   •   Does the Proposer demonstrate the knowledge and understanding of the Quality of Care and
       the capability to meet the requirements?

   •   Does the Proposer offer a method used to track, record and report all activity for each audit
       claim from the on-site visit through the issuance of the Final Audit Recovery letter to provide a
       complete audit trail?




                                                  Page 57
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

   Claims Processing Plan Evaluation
                                                    Points
   Questions                                                      Multiplied    Equals Total Points
                                                   Awarded
   Refer to: Exhibit A, Attachment II                            by (Weight)         Earned
                                                     (0-4)

   11. To what extent does the Proposer
   demonstrate knowledge and understanding of
                                                                     3.0
   the work to be done under CD-MMIS Claims
   Processing System?

   When evaluating the above question, consider the following:

      •   Does the Proposer demonstrate a comprehensive understanding of the Claims adjudication
          process for CD-MMIS?

      •   Does the Proposer demonstrate knowledge of the verification process for providers and
          beneficiaries?

      •   Does the Proposer demonstrate an understanding of the continuous maintenance of the
          recipient history file?

      •   Does the Proposer demonstrate knowledge of different dental programs; (e.g., California
          Children’s Services/Genetically Handicapped Persons Program and Healthy Families
          Program), and the unique scope of benefits and processing requirements for each
          program?




   TARs Processing Plan Evaluation
                                                    Points
   Questions                                                      Multiplied    Equals Total Points
                                                   Awarded
   Refer to: Exhibit A, Attachment II                            by (Weight)         Earned
                                                     (0-4)

   12. To what extent does the Proposer
   demonstrate knowledge and understanding of
   the work to be done under CD-MMIS                                 3.0
   Treatment Authorization Request (TAR)
   Processing System?

   When evaluating the above question, consider the following:

      •   Does the Proposer demonstrate a comprehensive understanding of the TAR adjudication
          process for CD-MMIS?

      •   Does the Proposer demonstrate knowledge of the verification process for providers and
          beneficiaries?

      •   Does the Proposer demonstrate an understanding of the continuous maintenance of the
          recipient history file?

      •   Does the Proposer demonstrate knowledge of different dental programs; (e.g., California
          Children’s Services/Genetically Handicapped Persons Program and Healthy Families
          Program), and the unique scope of benefits and processing requirements for each
          program?


                                               Page 58
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013




Claims Processing Plan Evaluation Questions           Points
                                                                  Multiplied    Equals Total Points
Refer to: Exhibit A, Attachment II                   Awarded
                                                                 by (Weight)         Earned
                                                       (0-4)

13. To what extent does the Proposer describe
their approach for the management of the Claims
Processing System, including correct processing                      3.0
of all claims from the programs included under
CD-MMIS?

When evaluating the above question, consider the following:

   •   Does the Proposer offer methods and techniques used to manage workload and the flow of
       workload?

   •   Does the Proposer demonstrate the ability to develop and implement procedures, processes,
       methods, and tools that will be used to ensure the claims processing requirements will be met?

   •   Does the Proposer demonstrate an approach used to ensure that processing cycle time
       requirements will be met?




TAR Processing Plan Evaluation Questions              Points
                                                                  Multiplied    Equals Total Points
Refer to: Exhibit A, Attachment II                   Awarded
                                                                 by (Weight)         Earned
                                                       (0-4)

14. To what extent does the Proposer describe
their approach for the management of the TAR
Processing System, including correct processing                      3.0
of all claims from the programs included under
CD-MMIS?

When evaluating the above question, consider the following:

   •   Does the Proposer offer methods and techniques used to manage workload and the flow of
       workload?

   •   Does the Proposer demonstrate the ability to develop and implement procedures, processes,
       methods, and tools that will be used to ensure the TAR processing requirements will be met?

   •   Does the Proposer demonstrate an approach used to ensure that processing cycle time
       requirements will be met?




                                                  Page 59
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013




Claims Processing Plan Evaluation Questions             Points
                                                                     Multiplied   Equals Total Points
Refer to: Exhibit A, Attachment II                     Awarded
                                                                    by (Weight)        Earned
                                                         (0-4)

15. To what extent does the Proposer demonstrate
their capability of meeting claims payment                              3.0
performance requirements and responsibilities?

When evaluating the above question, use the following considerations:

   •   Does the Proposer offer methods used to track, record and report all activity for each claim from
       receipt through adjudication to provide a complete audit trail and be in compliance with all
       reporting requirements?

   •   Does the Proposer offer staffing mix of resources which are appropriate to support the claims
       adjudication process of CD-MMIS?




TAR Processing Plan Evaluation Questions                Points
                                                                     Multiplied   Equals Total Points
Refer to: Exhibit A, Attachment II                     Awarded
                                                                    by (Weight)        Earned
                                                         (0-4)

16. To what extent does the Proposer demonstrate
their capability of meeting TAR processing                              3.0
requirements and responsibilities?

When evaluating the above question, use the following considerations:

   •   Does the Proposer offer methods used to track, record and report all activity for each claim from
       receipt through adjudication to provide a complete audit trail and be in compliance with all
       reporting requirements?

   •   Does the Proposer offer staffing mix of resources which are appropriate to support the TAR
       adjudication process of CD-MMIS?




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California Dental FI Request For Proposal                                      DRAFT RFP 10-87013




Claims/TARs Processing Plan Evaluation
                                                      Points
Questions                                                          Multiplied    Equals Total Points
                                                     Awarded
Refer to: Exhibit A, Attachment II                                by (Weight)         Earned
                                                       (0-4)

17. To what extent does the Proposer demonstrate
understanding of, and commitment to, quality                             3.0
improvement and customer service?

When evaluating the above question, use the following considerations:

   •   Does the Proposer offer structured improvements to the method of processing claims/TARs
       which improves accuracy, increases the ease of billing by providers, and decreases the number
       of times providers are required to correct claims/TARs which are legitimately billable and
       payable?

   •   Does the Proposer offer methods which notify management regarding performance both on the
       part of the fiscal intermediary and the provider?

   •   Does the Proposer offer methods to identify and resolve problems?

   •   Does the Proposer provide benefits which customers will derive?




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California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

Quality Management Plan Evaluation
                                                  Points
Questions                                                      Multiplied by     Equals Total Points
                                                 Awarded
Refer to: Exhibit A, Attachment II                               Weight               Earned
                                                   (0-4)

18. To what extent does the Proposer
demonstrate comprehensive and technically
sound approaches and/or methods for                                 3.0
coordinating and conducting quality
management activities?


When evaluating the above question, consider the following:

   •   Does the Proposer demonstrate an ability to develop and implement procedures, processes,
       methods, and tools which will be used to ensure the on-going improvement of contract
       performance?

   •   Does the Proposer offer proposed measures to increase the effectiveness and accuracy of the
       problem statement process?

   •   Does the Proposer demonstrate effective monitoring and measuring of the quality and quantity
       of employee performance and production to ensure accuracy?

   •   Does the Proposer offer methods to gather accurate required information for the quality
       management performance reports?




                                                Page 62
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013


Quality Management Plan Evaluation
                                                   Points
Questions                                                       Multiplied by     Equals Total Points
                                                  Awarded
Refer to: Exhibit A, Attachment II                                Weight               Earned
                                                    (0-4)

19. To what extent are the Proposer’s
approaches and methods for Acceptance                                3.0
Testing comprehensive and technically sound?

When evaluating the above question, consider the following:

   •   Does the Proposer offer an approach to Acceptance Testing which ensures that all system
       business areas, interfaces and technical requirements will be tested?

   •   Does the Proposer offer an approach to AT which will confirm system load capability, response
       time, and security controls?

   •   Does the Proposer provide a system-tested version of the operational system?

   •   Does the Proposer offer an approach to test data within the AT environment?

   •   Does the Proposer adhere to the use of IEEE 829-1998- Standard for Software Test
       Documentation and IEEE 12207-2009- Systems and Software Engineering – Software Life
       Cycle Processes (Test or Validation Plan)?



Quality Management Plan Evaluation              Points        Multiplied by     Equals Total Points
Questions                                      Awarded          Weight               Earned
Refer to: Exhibit A, Attachment II               (0-4)

20. To what extent does the Proposer
demonstrate procedures, methods and
                                                                   3.0
processes for coordinating and conducting
acceptance testing activities?

When evaluating the above question, consider the following:

   •   Does the Proposer offer an approach to governance, including prioritization of defect correction
       and change?

   •   Does the Proposer offer an approach to tracking and reporting for the acceptance testing tool
       for State users?




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California Dental FI Request For Proposal                                       DRAFT RFP 10-87013



 Systems Group Procedures and Organization Plan                                                  Equals
                                                                     Points      Multiplied
 Evaluation Questions                                                                             Total
                                                                    Awarded         by
 Refer to: Exhibit A, Attachment III, Exhibit E, Provision 19,                                   Points
                                                                      (0-4)       Weight
 Exhibit J                                                                                       Earned

 21. To what extent does the Proposer’s description of the
 System Group structure and personnel resources meet the
 requirements of Exhibit E, Provision 19 and Exhibit J and does                     3.0
 the Proposer provide an organizational structure which meets
 the requirements as described in Exhibit A, Attachment III?


                                                                                                 Equals
 Systems Group Procedures and Organization Plan                      Points
                                                                                Multiplied        Total
 Evaluation Questions                                               Awarded
                                                                                by Weight        Points
 Refer to: Exhibit A, Attachment III                                  (0-4)
                                                                                                 Earned

 22. To what extent does the Proposer’s experience level of
 business and technical staff enable them to meet the quality                       3.0
 and performance metrics proposed for the System Group?

 When evaluating the above question, consider the following:

     •   Does the Proposer offer a staffing blend and levels (business and technical) to support system
         development projects throughout the life of the contract?

     •   Does the Proposer apply senior staff to efficiently extract business requirements for
         development and implementation?

     •   Does the Proposer describe a sound approach to maintaining the qualified resource blend over
         the life of the contract?




                                                 Page 64
California Dental FI Request For Proposal                                           DRAFT RFP 10-87013



Systems Group Procedures and Organization                  Points
                                                                         Multiplied by      Equals Total
Plan Evaluation Questions                                 Awarded
                                                                           Weight          Points Earned
Refer to: Exhibit A, Attachment III                         (0-4)

23. To what extent does the Proposer describe the
estimation tool, methodology, metrics and project
                                                                              3.0
control processed employed to support Systems
Development Projects?

When evaluating the above question, consider the following:

   •   Does the Proposer describe the identified estimation tool and metrics and show how they will
       be used to size the change for CD-MMIS projects?

   •   Does the Proposer describe an approach to incorporating the proposed metrics into the SDLC?

   •   Does the Proposer clearly demonstrate how accuracy of estimates will be measured and
       improved over time?

   •   Does the Proposer offer appropriate staffing levels, functional responsibilities and qualifications
       which are defined?

   •   Does the Proposer offer a Management style approach and method used to track and control
       project status from design through implementation?




Systems Group Procedures and Organization
                                                           Points           Multiplied     Equals Total
Plan Evaluation Questions
                                                         Awarded (0-4)      by Weight     Points Earned
Refer to: Exhibit A, Attachment III

24. To what extent does the Proposer describe a
comprehensive quality management approach for the                               3.0
Systems Group staff?

When evaluating the above question, consider the following:

   •   Does the Proposer demonstrate the extent to which the quality management approach is
       integrated into the staffing plan for the Systems Group staff?

   •   Does the Proposer demonstrate how resources will be applied to projects to assure the highest
       quality work?

   •   Does the Proposer demonstrate how the quality management approach is integrated into the
       CMMI/SDLC methodology?

   •   Does the Proposer demonstrate how the quality management approach defines metrics to
       support quality performance?

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California Dental FI Request For Proposal                                          DRAFT RFP 10-87013




Systems Group Procedures and Organization                 Points
                                                                       Multiplied by      Equals Total
Plan Evaluation Questions                                Awarded
                                                                         Weight          Points Earned
Refer to: Exhibit A, Attachment III                        (0-4)

25. To what extent does the Proposer offer
comprehensive and technically sound procedures,                              3.0
methods and approaches for System Testing?

When evaluating the above question, consider the following:

   •   Does the Proposer offer an approach to System Testing which ensures that all applications will
       function correctly in a production-type environment?

   •   Does the Proposer offer an approach to the establishment of a separate environment?

   •   Does the Proposer offer an approach to coordinating and tracking of test activities?

   •   Does the Proposer offer an approach for documentation of test scripts, traceability matrix,
       results error resolution and re-testing?

   •   Does the Proposer adhere to the use of IEEE 829-1998- Standard for Software Test
       Documentation and IEEE 12207-2009- Systems and Software Engineering – Software Life
       Cycle Processes (Test or Validation Plan)?




                                                          Points
Provider Services Plan Evaluation Questions                            Multiplied by      Equals Total
                                                         Awarded
Refer to: Exhibit A, Attachment II                                       Weight          Points Earned
                                                           (0-4)
26. To what extent does the Proposer demonstrate
knowledge and understanding of the services to be
provided as described in the CD-MMIS Provider                                2.5
Subsystem?




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California Dental FI Request For Proposal                                         DRAFT RFP 10-87013



Provider Services Plan Evaluation Questions               Points       Multiplied by      Equals Total
Refer to: Exhibit A, Attachment II                       Awarded         Weight          Points Earned
                                                           (0-4)
27. To what extent does the Proposer offer
comprehensive and reasonable procedures, methods
                                                                            2.5
and/or processes for Provider Services to ensure
performance requirements are met?

When evaluating the above question, consider the following:

   •   Does the Proposer offer controls to measure effectiveness of the system?

   •   Does the Proposer offer use of tools to ensure successful performance?

   •   Does the Proposer demonstrate an ability to develop and implement procedures to identify prior
       authorization or provider billing errors and steps taken to minimize these errors?

   •   Does the Proposer offer appropriate staffing that have the knowledge and interpersonal skills to
       successfully interact with the provider community in all functional responsibilities?




                                                          Points
Provider Services Plan Evaluation Questions                            Multiplied by      Equals Total
                                                         Awarded
Refer to: Exhibit A, Attachment II                                       Weight          Points Earned
                                                           (0-4)
28. To what extent does the Proposer demonstrate
an understanding and commitment to ensure quality
improvement and customer service for Provider                               2.5
Services?
When evaluating the above question, consider the following:

   •   Does the Proposer demonstrate a method of providing services to improve accuracy and
       increase the ease of providers in securing prior authorization and/or in obtaining payment for
       services rendered?

   •   Does the Proposer offer a mechanism used to obtain provider input regarding needs/concerns,
       and how these needs/concerns will be resolved?




                                                 Page 67
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013


                                                        Points
Beneficiary Services Plan Evaluation Questions                       Multiplied by     Equals Total
                                                       Awarded
Refer to: Exhibit A, Attachment II                                     Weight         Points Earned
                                                         (0-4)
29. To what extent does the Proposer demonstrate
knowledge and understanding of the services to be
provided as described in the CD-MMIS Beneficiary                          2.5
Subsystem?




                                                        Points
Beneficiary Services Plan Evaluation Questions                       Multiplied by     Equals Total
                                                       Awarded
Refer to: Exhibit A, Attachment II                                     Weight         Points Earned
                                                         (0-4)
30. To what extent does the Proposer offer
comprehensive and reasonable procedures,
methods and/or processes for Beneficiary Services                         2.5
to ensure performance requirements are met?

When evaluating the above question, consider the following:

   •   Does the Proposer offer controls to measure effectiveness of the system?

   •   Does the Proposer offer use of tools to ensure successful performance?

   •   Does the Proposer offer staffing appropriate to the work and do they have the knowledge and
       interpersonal skills to successfully interact with the beneficiary community?




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California Dental FI Request For Proposal                                         DRAFT RFP 10-87013


                                                              Points                          Equals Total
Beneficiary Services Plan Evaluation Questions                             Multiplied by
                                                             Awarded                            Points
Refer to: Exhibit A, Attachment II                                           Weight
                                                               (0-4)                            Earned
31. To what extent does the Proposer demonstrate an
understanding and commitment to ensure quality
improvement and customer service for Beneficiary                                 2.5
Services?


When evaluating the above question, consider the following:

   •   Does the Proposer offer a mechanism used to obtain beneficiary input regarding needs/concerns
       and how these needs/concerns will be resolved?

   •   Does the Proposer demonstrate a knowledge and understanding of Dental State Hearing
       procedures?

   •   Does the Proposer demonstrate an understanding of how the various Beneficiary Services
       interact to ensure that the appropriate type or level of service is being offered to a given
       customer issue?




Telephone Service Center Plan Evaluation                      Points                           Equals
                                                                           Multiplied by
Questions                                                    Awarded                         Total Points
                                                                             Weight
Refer to: Exhibit A, Attachment II                             (0-4)                           Earned

32. To what extent does the Proposer effectively
address requirements for the Telephone Service
                                                                                 3.0
Center Operations?

When evaluating the above questions, consider the following:

   •   Does the Proposer demonstrate an understanding of the importance of the Telephone Service
       Center (TSC) staff in relations to the overall efficiency and the satisfaction of the Provider and
       Beneficiary communities?

   •   Does the Proposer demonstrate a realistic approach to the maintenance and operations of the
       TSC?




                                                   Page 69
California Dental FI Request For Proposal                                      DRAFT RFP 10-87013


Telephone Service Center Plan Evaluation                    Points                        Equals Total
                                                                         Multiplied by
Questions                                                  Awarded                          Points
                                                                           Weight
Refer to: Exhibit A, Attachment II                           (0-4)                          Earned

33. To what extent does the Proposer describe a
Telephone Service Center System which offers overall
                                                                              3.0
technical support?

When evaluating the above questions, consider the following:

   •   Does the Proposer provide the design of the telephone system and associated equipment?

   •   Does the Proposer offer an automated call-vectoring system?

   •   Does the Proposer offer a Customer Relationship Management (CRM) System?




Telephone Service Center Plan Evaluation                    Points                        Equals Total
                                                                         Multiplied by
Questions                                                  Awarded                          Points
                                                                           Weight
Refer to: Exhibit A, Attachment II                           (0-4)                          Earned

34. To what extent does the Proposer demonstrate the
understanding of the support needed to meet the
performance requirements of the Telephone Service                             3.0
Center?

When evaluating the above questions, consider the following:


   •   Does the Proposer provide techniques used to handle fluctuations in workload that do not hinder
       performance or decrease services?

   •   Does the Proposer offer an approach to coordinating activities of the Provider and Beneficiary
       TSC and ensuring the provision of sufficient Provider and Beneficiary Toll-Free lines?




                                                 Page 70
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013



Enterprise Project Management Office Plan                   Points                           Equals
                                                                         Multiplied by
Evaluation Questions                                       Awarded                         Total Points
                                                                           Weight
Refer to: Exhibit A, Attachment II                           (0-4)                           Earned

35. To what extent does the Proposer demonstrate an
understanding of the Enterprise Project Management
                                                                              1.0
Office purpose and responsibilities?

When evaluating the above questions, consider the following:

   •   Did the Proposer’s description of their use of the Enterprise Project Management Office to
       organize and manage the appropriate Contractor’s resources for all development effort under
       the FI contract?

   •   Did the Proposer consider the description of the EPMO’s efforts with the DHCS On-Site
       resources?




Enterprise Project Management Office Plan                   Points                        Equals Total
                                                                         Multiplied by
Evaluation Questions                                       Awarded                          Points
                                                                           Weight
Refer to: Exhibit A, Attachment II                           (0-4)                          Earned

36. To what extent does the Proposer describe how
the Project and Portfolio Management Tool will be
used by DHCS to track and manage the array of                                 1.0
undergoing development projects?

When evaluating the above questions, consider the following:

    • Did the Proposer offer a description of its use of the Project and Portfolio Management tool to
      support the State’s On-Site resources?

    • Did the Proposer a description of how the Project and Portfolio Management tool would support
      accounting for all hours and resources dedicated by the Contractor?




                                                 Page 71
California Dental FI Request For Proposal                                        DRAFT RFP 10-87013



Enterprise Project Management Office Plan
                                                                Points                      Equals Total
Evaluation Questions                                                      Multiplied by
                                                               Awarded                        Points
Refer to: Exhibit A, Attachment II, Exhibit A,                              Weight
                                                                 (0-4)                        Earned
Attachment III

37. To what extent does the Proposer describe a
Project Estimation Methodology that is information-
                                                                                1.0
driven, accurate and continues to improve over time?

When evaluating the above questions, consider the following:

    • Did the Proposer identify a metric that will be used to determine the size of change for
      comparison to other efforts over time?

    • Did the Proposer demonstrate how accuracy of estimates will be measured and improved over
      time?

    • Did the Proposer demonstrate how they will use the Project and Portfolio Management tool to
      support the estimation methodology?




                                                                Points                      Equals Total
Expansion Items Evaluation Questions                                      Multiplied by
                                                               Awarded                        Points
Refer to: Exhibit A, Attachment I                                           Weight
                                                                 (0-4)                        Earned
38. To what extent does the Proposer demonstrate
their overall capability to identify, monitor and report on
                                                                                1.0
all performance standards?

When evaluating the above questions, consider the following:

    • Did the Proposer offer a description of how they will define and measure each performance
      standard?

    • Did the Proposer offer a description of how they will validate the reliability of the performance
      measure?




                                                     Page 72
California Dental FI Request For Proposal                                        DRAFT RFP 10-87013


                                                             Points                         Equals Total
Expansion Items Evaluation Questions                                      Multiplied by
                                                            Awarded                           Points
Refer to: Exhibit A, Attachment I                                           Weight
                                                              (0-4)                           Earned
39. To what extent does the Proposer demonstrate
familiarity with the Contract Management Tool (the
                                                                                1.0
Proposer may use multiple tools)?

When evaluating the above questions, consider the following:

    • Did the Proposer offer a description of the contract management tool and the process for
      entering and extracting data?

    • Did the Proposer offer a process for reading and interpreting the output of the contract
      management tool?

    • Did the Proposer provide examples of reports, dashboards, alerts and other output from the
      contract management tool?




                                                             Points                         Equals Total
Expansion Items Evaluation Questions                                      Multiplied by
                                                            Awarded                           Points
Refer to: Exhibit A, Attachment I                                           Weight
                                                              (0-4)                           Earned
40. To what extent does the Proposer demonstrate an
ability to use the Contract Management Tool for
                                                                                1.0
measuring and monitoring the Contractor’s
performance?

When evaluating the above questions, consider the following:

    • Did the Proposer offer a description of how the management team will evaluate the performance
      recoding and apply the outcome in making management corrections?

    • Did the Proposer offer a process for adjusting input to the tool to reflect changes in State
      requirements or priorities?




                                                  Page 73
California Dental FI Request For Proposal                                    DRAFT RFP 10-87013


                                                           Points                       Equals Total
System Enhancements Evaluation Questions                               Multiplied by
                                                          Awarded                         Points
Refer to: Exhibit A, Attachment IV                                       Weight
                                                            (0-4)                         Earned
41. To what extent does the Proposer offer a
comprehensive and technically sound approach and
                                                                            0.9
method for implementation of the Business Rules
Extraction?

When evaluating the above questions, consider the following:

    • Did the Proposer offer an approach to development of a new rules base for CD-MMIS which
      include:

      o   The process for identification of discrepancies between the systems embedded rules and
          current DHCS policy.
      o   The process for analysis of programs and operating procedures is comprehensive.
      o   The process for validating business rules.

    • Does the Proposer address their approach to providing the Department with recommendations
      for code or policy clean-up to ensure for the continued operations of CD-MMIS?

    • Does the Proposer include a Project Management Plan segment with clear identification of time
      frame, resources and work products?

    • Does the Proposer provide business rule taxonomy to show how the rules would be classified
      once they have been extracted and validated?




                                                           Points                       Equals Total
System Enhancements Evaluation Questions                               Multiplied by
                                                          Awarded                         Points
Refer to: Exhibit A, Attachment IV                                       Weight
                                                            (0-4)                         Earned
42. To what extent does the Proposer explain their
choice of approaches and methods (i.e. proven                               0.9
success)?

When evaluating the above questions, consider the following:

    • Did the Proposer describe previous experience in rules extraction and use of automated tools to
      track requirements?




                                                Page 74
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013



                                                             Points                        Equals Total
System Enhancements Evaluation Questions                                 Multiplied by
                                                            Awarded                          Points
Refer to: Exhibit A, Attachment IV                                         Weight
                                                              (0-4)                          Earned
43. To what extent are the Proposers procedures,
methods and approaches appropriate and reasonable
(i.e. if implemented are they likely to produce the                            0.9
desired results)?

When evaluating the above questions, consider the following:

    • Did the Proposer offer an approach to rules extraction which will lead to a more accurate picture
      of the system business functionality and gaps between that functionality and written program
      guidelines?

    • Does the Proposer’s approach to the impact analysis include recommendations that support
      efficient DHCS policy decisions regarding discrepancy resolution?

    • Did the Proposer offer an approach of the requirements traceability tool to meet the
      Department’s need for continuity of requirements?




                                                             Points                        Equals Total
System Enhancements Evaluation Questions                                 Multiplied by
                                                            Awarded                          Points
Refer to: Exhibit A, Attachment IV                                         Weight
                                                              (0-4)                          Earned
44. To what extent does the Proposer demonstrate an
understanding of the submission requirements for
                                                                               0.9
encounter data from the Dental Managed Care Plans?




                                                             Points      Multiplied by     Equals Total
System Enhancements Evaluation Questions                    Awarded        Weight            Points
Refer to: Exhibit A, Attachment IV                            (0-4)                          Earned

45. To what extent does the Proposer describe their
ability to accept statewide encounter data from Dental
                                                                               0.9
Managed Care Plans?



       3. Stage 3 – Optional Contractual Services (OCS) Initial Review

           a. In this stage, the ESC will perform an initial review, as a team, of a Proposer’s submitted
              OCS(s) to assist DHCS in determining if the OCS(s) warrant further evaluation prior to
              contract award.




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California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

         b. There are no points associated with Stage 4, and review of a Proposers OCS(s) during
            Stage 4 review has no impact on the Proposers narrative proposal score, which was
            determined in Stages 2 and 3.

         c. In this review stage, OCS evaluation will be Pass/Fail, and will be based upon the degree to
            which the OCS improves:

             1) Beneficiary access to dental services;

             2) Provider satisfaction and participation;

             3) Ability to administer the contract;

             4) Ability to administer claims processing programs; and/or

             5) Systematic control of program costs.

         d. The ESC will evaluate the following questions to determine if an OCS will Pass or Fail. An
            OCS that receives “pass” credits on at least four (4) of the seven (7) evaluation questions
            will be considered “accepted”. An OCS that receives three (3) or fewer “pass” credits out of
            the seven (7) evaluation questions will be considered “rejected”.

             1) If accepted by the ESC, the OCS will be subject to further evaluation, including a cost
                analysis to determine if the benefit derived from implementation of the OCS is worth the
                cost of development. This further evaluation will occur after the Notice of Intent to Award
                is posted.

             2) If rejected by the ESC, the OCS will simply not become a part of the contract. As
                mentioned above, rejection of an OCS(s) has no effect on a Proposers narrative
                proposal score.

             3) If the Department accepts or rejects an OCS, the Proposer will be notified at the end of
                the procurement process. No further action on the OCS will take place until then.

             4) Prices for OCSs will not be included in the calculation of the total evaluated price used in
                cost proposal scoring.


           Initial Review of OCS Criteria                                              Pass         Fail
           Is the OCS an improvement of existing operations?
           Is the OCS consistent with Department policy?
           Is the OCS consistent with the requirements and intent of the RFP?
           Does the OCS allow for Department monitoring and auditing?
           Is the OCS in the best interest of the Department?
           Is the OCS feasible to implement?
           Does the OCS show an understanding of the CD-MMIS and its
           related subsystems?
                                                                 Pass Credits Earned _____ _




                                                 Page 76
California Dental FI Request For Proposal                                     DRAFT RFP 10-87013

      4. Stage 4 - Cost Proposal Evaluation

         a. Determining Cost Proposal Points Earned


             1) Proposers whose proposals have passed the Stage 3 review will have their Cost
                Proposal scored and/or evaluated according to the process described herein.

             2) DHCS requires all Cost Proposals to be reflective of the estimated cost of performing the
                work involved. Cost Proposals with zero (0) or nominal amounts may be rejected.

             3) The Cost Proposal evaluation will include the following:

             4) The Cost Proposal will be evaluated within individual cost component categories as
                shown in the Price Bid Sheet chart below. The combined cost component categories
                within the scored Cost Proposal sections total to a maximum of 255 points, representing
                approximately 40% of the Total Proposal score. Cost scores shall be calculated to at
                least six (6) decimal places with the Final Cost Proposal scores rounded to four (4)
                decimal places.

             5) The cost component categories and point distributions are provided below:

                Price Bid Sheets are located as Attachments 16-1 through 16-1? to this RFP.




                                                                       Possible
               Price



                                                                        Points
                                                                        Total
               Bid         Price Bid Sheets
               Sheet

               16-1            Takeover Price (No Prices )
               16-2             Takeover Expansion Items              0.000000
               16-3                    ACL Claims                    114.75000
               16-5                Provider Call Center               18.00000
               16-6              Beneficiary Call Center             11.250000
               16-4                 TARs Processing                  36.000000
               16-7                 SURS Subsystem                   31.500000
               16- 8                 Systems Group                   24.750000
               16-9              System Enhancements                  3.000000
               16-10                    PCU Time                      0.450000
               16-11                    Turnover                      0.500000
               16-12                     Run Out                      1.500000
               16-13              Price Bid Sheet Totals             13.300000
                              ACL Adjustments for System
               16-16                                                  0.000000
                                   Enhancements
               16-19         Expansion Items (In takeover?)           0.000000


                                               Page 77
California Dental FI Request For Proposal                                   DRAFT RFP 10-87013

         b. The method for determining points awarded for the cost section is based on the lowest
            bidder receiving the maximum points allowed for the bid price under consideration. All other
            non-lowest Proposers shall receive a proportional number of points based on their bid price
            when compared to the lowest bid price. This is true Evaluated prices including all base
            volume levels (plus and minus level scoring is discussed below). The example below is for
            a base volume price but applies to any identified scoring amount. The score computations
            can expressed mathematically as below:

                Lowest Bid Price ÷ Bidder’s Price = Percentage of Maximum Points Available

                Percentage of Maximum Points Available X Maximum Points Available = Points Earned

                Points are assigned by DHCS for each price to be evaluated and may vary from Phase
                to Phase or Service to Service.

                Calculation Example (Single Price per Phase):

                Proposer A bids $800,000 for Phase 1 for Service X.
                Proposer B bids $1,000,000 for Phase 1 for Service X.
                Maximum Points Available 5 Points

                Proposer A Earns $800,000 ÷ $800,000 = 100% X 5 Points = 5 Points

                Proposer B Earns $800,000 ÷ $1,000,000 = 80% X 5 Points = 4 Points

                This is repeated for each phase and extension phase bids.

                1) Determining Cost Proposal Points Earned When Using Base Volume            Method of
                Payment (BVMP)

                BVMP consist of three bid elements, Plus Level, Minus Level and Base Volume Level.
                There may be multiple plus and/or minus levels within the same phase. All Base
                Volume levels shall be evaluated based on the lowest bid as compared to the bidder’s
                price with the resulting factor multiplied by the points available for the base volume
                under evaluation.

                Example

                Calculation Example (Single Price per Phase):

                Proposer A bids $800,000 for Phase 1 Base Volume for Service X.
                Proposer B bids $1,000,000 for Phase 1 Base Volume for Service X.

                Maximum Points Available 50 Points

                Proposer A Earns $800,000 ÷ $800,000 = 100% X 5 Points = 5 Points for their base
                volume bid for Phase 1 Service X.

                Proposer B Earns $800,000 ÷ $1,000,000 = 80% X 5 Points = 4 Points for their base
                volume bid for Phase 1 Service X

                This is repeated for each phase and extension phase bids.

                Points assigned within the base volume may vary from phase to phase .


                                               Page 78
California Dental FI Request For Proposal                                          DRAFT RFP 10-87013

                  2) Plus and Minus Level Evaluation of the BVMP

                  The evaluated prices of the plus or minus levels are calculated in similar manners. They
                  both start with the base volume as part of their evaluated price. The unit price of the
                  level is multiplied by the maximum transactions within the range. The resulting dollar
                  amount is added (subtracted) to the base volume bid amount to produce the evaluation
                  price for that level. This calculation is repeated for both the plus or minus level of each
                  phase establishing an evaluation price for each level in each phase. Points are then
                  calculated in the same manner as the BVMP with the lowest bidder receiving the
                  maximum point for that level in that phase with all other receiving a proportional share.

                  Example of plus and minus level calculated evaluation price.

                  Proposer A bids as follows:

            Plus Level   214,900,001      279,360,000        64,460,000         $                 .10     3


              Base
             Volume      172,300,000      214,900,000                          $        100,000,000.00    5


              Minus                                                                                       1
              Level      150,770,000      215,379,999        64,610,000        $                 (0.05)



                  If the plus level is selected for evaluation the evaluated price for each would be as
                  follows:

                                Base Volume        Level Adjustment        Evaluated Price

                  Plus Level    $100,000,000 + (64,460,000 X $.10) = $106,446,000

                  Minus Level $100,000,000 - (64,610,000 X $.05) = $96,769,500

         c. Evaluation Process

             1)   First, the PRC will reconvene to review each cost proposal for completeness and
                  responsiveness to the RFP requirements.

                  a) The PRC will compare the contents of each cost proposal to the claims made by the
                     Proposer on Required Attachment/Certification Checklist, Attachment 2a, to
                     determine if the Proposers claims are accurate.

                  b) If a Proposers claims on the Required Attachment/Certification Checklist, Attachment
                     2b, cannot be proven or substantiated, the cost proposal may, at DHCS’ sole
                     discretion, be deemed non-responsive and the entire proposal rejected from further
                     consideration.

                  c) Submission of a complete cost proposal in the Department’s prescribed format is
                     mandatory. If a Proposer fails to comply, its cost proposal, may at DHCS’ sole
                     discretion, be deemed non-responsive and the entire proposal rejected from further
                     consideration.

             2)   Second, after it has been determined that the cost proposal is complete and in
                  compliance with the RFP instructions, the ESC will:


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California Dental FI Request For Proposal                                       DRAFT RFP 10-87013

                  a) Review the cost proposal to ensure that it contains nothing that changes how the
                     contract payment structure operates, the incentives provided in the payment
                     structure, or the Contractor's demonstrated ability to perform the contract (Contractor
                     responsibility).

                  b) Evaluate whether the Proposer states its awareness that all prices contained in its
                     proposal are fixed.

                  c) Evaluate each overall price in relation to the lowest overall price submitted. The
                     lowest price will be given the maximum points allowed, while the other prices will be
                     scored using the following formula:


                             Lowest Cost Price              X Points Assigned            = Cost Proposal
                            Proposed Cost Price                                              Score


             3)   In the event of arithmetic or transposition errors, the Department will interpret numbers
                  contained in the Cost Proposal in the manner described in the Department Rights,
                  section P.9.a., Correction of Clerical or Mathematical Errors.

             4)   The maximum amount of points that can be earned from the Cost Proposal is 255
                  representing approximately 40% of the overall proposal score. Final cost proposal
                  scores shall result in numbers rounded to four decimal places.

      5. Stage 5 – Adjustments to Score Calculations for Bidding Preferences/Incentives

         a. DHCS will determine which firms, if any, are eligible to receive a bidding preference (i.e.,
            small business or non-small business subcontractor preference, DVBE incentive, etc.).

         b. To confirm the identity of the highest scored responsive Proposer, DHCS will adjust the total
            score for applicable claimed preference(s)/incentives for eligible Proposers. DHCS will
            apply preference adjustments to eligible Proposers according to State regulations following
            verification of eligibility with the appropriate office of the Department of General Services.
            More information about the allowable bidding preferences appears in the RFP section
            entitled, “Preference and Incentive Programs”.


      6. Stage 6 – Final Score Calculation

         DHCS will use the formula shown below to calculate final Proposal scores and to determine the
         highest scored Proposal.

                            Proposal Component                        Maximum
                                                                      Possible Score
             a              Narrative Technical Score                    382.0000
             b       +      Cost Proposal Score                          255.0000
             c       =      Proposer’s Total Point Score                 632.0000



         The table above shows the maximum possible scores. A Proposer may receive a score that is
         less than the maximum shown above.

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P.    Bid Requirements and Information

      1. Nonresponsive Proposals

         In addition to any condition previously indicated in this RFP, the following occurrences may
         cause DHCS to deem a proposal nonresponsive.

         a. Failure of a Proposer to:

             1) Meet DVBE participation goals for the full percentage amount of .5%.

             2) Meet proposal format/content or submission requirements including, but not limited to,
                the sealing, labeling, packaging and/or timely and proper delivery of proposals.

             3) Pass the Required Attachment / Certification Checklists review (i.e., by not marking
                “Yes” to applicable items or by not appropriately justifying, to DHCS’ satisfaction, all “N/A”
                designations).

             4) Submit a mandatory Conflict of Interest Compliance Certificate in the manner required,
                if applicable.

         b. If a Proposer submits a proposal that is conditional, materially incomplete or contains
            material defects, alterations or irregularities of any kind.

         c. If a Proposer supplies false, inaccurate or misleading information or falsely certifies
            compliance on any RFP attachment.

         d. If DHCS discovers, at any stage of the bid process or upon contract award, that the
            Proposer is unwilling or unable to comply with the contract terms, conditions and exhibits
            cited in this RFP or the resulting contract.

         e. If other irregularities occur in a proposal response that is not specifically addressed herein
            (i.e., the Proposer places any conditions on performance of the scope of work, submits a
            counter proposal, etc.).

      2. Proposal Modifications After Submission

         a. All proposals are to be complete when submitted. However, an entire proposal may be
            withdrawn and the Proposer may resubmit a new proposal.

         b. To withdraw and/or resubmit a new proposal, follow the instructions appearing in the RFP
            section entitled, “Withdrawal and/or Resubmission of Proposals”.

      3. Proposal Mistakes

         If prior to contract award, award confirmation, or contract signing, a Proposer discovers a
         mistake in their proposal and/or cost offering that renders the Proposer unable or unwilling to
         perform all scope of work services as described in its proposal response for the price/costs
         offered, the Proposer must immediately notify DHCS and submit a written request to withdraw
         its proposal following the procedures set forth below.

      4. Withdrawal And/Or Resubmission Of Proposals

         a. Withdrawal deadlines


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California Dental FI Request For Proposal                                     DRAFT RFP 10-87013

             A Proposer may withdraw a proposal at any time before the Intent to Award date.

         b. Submitting a withdrawal request

             1) Submit a written withdrawal request, signed by an authorized representative of the
                Proposer.

             2) Label and submit the withdrawal request using one of the following methods.

                 U.S. Mail, Hand Delivery or
                 Overnight Express:                          Fax:

                 Withdrawal - RFP 10-87013                   Withdrawal - RFP 10-87013
                 California Dental Medicaid                  California Dental Medicaid
                 Management Information Systems              Management Information Systems
                 Department of Health Care Services          Department of Health Care Services
                 Office of Medi-Cal Procurement              Office of Medi-Cal Procurement
                 Mail Station 4200
                 1501 Capitol Avenue, Suite 71.3041          Fax: (916) 440-7369
                 P.O. Box 997413
                 Sacramento, CA 95899-7413


             3) [For faxed requests] Proposers must call DHCS’ OMCP at (916) 552-8006 to confirm
                receipt of a faxed withdrawal request. Follow-up the faxed request by mailing or
                delivering the signed original withdrawal request within 24 hours after submitting a faxed
                request.

                An originally signed withdrawal request is generally required before DHCS will return a
                proposal to a Proposer. DHCS may grant an exception if the Proposer informs DHCS
                that a new or replacement proposal will immediately follow the withdrawal.

         c. Resubmitting a proposal

             After withdrawing a proposal, Proposers may resubmit a new proposal according to the
             proposal submission instructions. Replacement proposals must be received at the stated
             place of delivery by the proposal due date and time.

      5. Contract Award And Protests

         a. Contract award

             1) Award of the contract, if awarded, will be to the responsive and responsible Proposer,
                who earns the highest total score. The highest scored proposal will be determined after
                DHCS adjusts Proposer scores for applicable bidder preferences and/or incentives.

             2) DHCS shall award the contract only after DHCS posts a Notice of Intent to Award for five
                (5) working days. DHCS expects to post the Notice of Intent to Award before the close
                of business on TBD in a Contract Award Notices Binder which will be available for
                viewing by the public during normal business hours, at the following location:

                Department of Health Care Services
                Office of Medi-Cal Procurement
                1501 Capitol Avenue, First Floor Guard Station
                Sacramento, CA 95814

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             3) DHCS will also post the Intent to Award on the OMCP web page at:
                http://www.dhcs.ca.gov/provgovpart/rfa_rfp/Pages/OMCPdentalFIHome.aspx

             4) DHCS will confirm the contract award to the winning Proposer after the protest deadline,
                if no protests are filed or following the Department of General Service’s resolution of all
                protests. DHCS staff may confirm an award verbally or in writing.

         b. Settlement of ties

             1) In the event of a precise total high score tie between a responsive proposal submitted by
                a certified small business or microbusiness and a responsive proposal submitted by a
                certified DVBE that is also a certified small business, the contract will be awarded to the
                DVBE firm per Government Code Section 14838(f) et seq.

             2) In the event of a precise total high score tie between a responsive proposal submitted by
                a firm that was granted non-small business subcontractor preference and a responsive
                proposal submitted by a certified small business or microbusiness, the contract will be
                awarded to the certified small business or microbusiness.

             3) In the event of a precise total high score between a responsive proposal submitted by a
                nonprofit veteran service agency (NVSA) that is a certified small business and a
                responsive proposal submitted by a certified DVBE that is also a certified small
                business, the contract will be awarded to the certified DVBE.

             4) In the absence of a California law or regulation governing a specific tie, DHCS will settle
                all other precise total high score ties by making an award to the Proposer who earns the
                highest Narrative score. If Narrative Proposal scores are also tied, DHCS will settle the
                tie in a manner that DHCS determines to be fair and equitable (e.g., coin toss, lot
                drawing, etc.). In no event will DHCS settle a tie by dividing the work among the tied
                Proposers.

         c. Protests

             Protest Authority

             Under California Law, protests of the RFP are under the authority and jurisdiction of the
             California Department of General Services (DGS). The protest standards and procedures
             as described in this RFP are as currently understood by DHCS. In the case of any protest of
             this RFP, the standards and procedures as specified by DGS shall govern over any
             inconsistent standards or procedures described by DHCS.

             1) Who can protest

                Any Proposer who submits a proposal may file protest if the Proposer believes its
                proposal is responsive to all RFP requirements.

             2) Grounds for protests

                Protests are limited to the grounds described in Public Contract Code (PCC) Section
                10345. DHCS will not make an award until all protests are withdrawn by the protestant,
                denied, or resolved to the satisfaction of the Department of General Services (DGS).

             3) Protest time lines


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California Dental FI Request For Proposal                                       DRAFT RFP 10-87013

                a. If an eligible Proposer wishes to protest the intended contract award, the Proposer
                   must file a “Notice of Intent to Protest” with both DHCS and the Department of
                   General Services within five (5) working days after DHCS posts the Notice of Intent
                   to Award. The Notice of Intent to Protest may be quite brief. Any Notice of Intent to
                   Protest filed more than five (5) working days after DHCS posts the Notice of Intent to
                   Award shall be untimely.

                b. Within five (5) calendar days after filing a “Notice of Intent to Protest”, the protestant
                   must file with both DHCS and the Department of General Services a full and
                   complete written protest statement identifying the specific grounds for the protest.
                   The statement must contain, in detail, the reasons, law, rule, regulation, or practice
                   that the protestant believes DHCS has improperly applied in awarding the contract.

             4) Submitting a protest

                Protests must be filed with both the Department of General Services and the
                Department of Health Care Services Office of Medi-Cal Procurement. Proposers may
                hand deliver, mail or fax a protest.

                Label, address, and submit the initial protest notice and detailed protest statement using
                one of the following methods.

                 U.S. Mail, Hand Delivery or
                 Overnight Express:                           Fax:
                 Protest to DHCS RFP 10-87013                 Protest to DHCS RFP 10-87013
                 California Dental Medicaid                   California Dental Medicaid
                 Management Information Systems               Management Information Systems
                 Department of Health Care Services           Department of Health Care Services
                 Contract Management Unit                     Contract Management Unit
                 Mail Station 1403
                 P.O. Box 997413                              Fax: (916) 650-0111
                 1501 Capitol Avenue, Suite 71.5195
                 Sacramento, CA 95899-7413

                 Protest to DHCS RFP 10-87013                 Protest to DHCS RFP 10-87013
                 Dept. of General Services                    Dept. of General Services
                 Office of Legal Services                     Office of Legal Services
                 Attention: Protest Coordinator
                 707 Third Street, 7th Floor, Suite 7-330     Fax: (916) 376-5088
                 P.O. Box 989052
                 West Sacramento, CA 95798-9052

                Please send a copy as an FYI to DHCS’ OMCP at:


                 U.S. Mail:                                    Hand Delivery or Overnight
                                                               Express/Courier:
                 Protest to RFP 10-87013                       Protest to RFP 10-87013
                 California Dental Medicaid                    California Dental Medicaid
                 Management Information Systems                Management Information Systems
                 Department of Health Care Services            Department of Health Care Services
                 Office of Medi-Cal Procurement                Office of Medi-Cal Procurement
                 MS 4200                                       MS 4200
                 P.O. Box 997413                               1501 Capitol Ave Suite 71.3041
                 Sacramento, CA 95899-7413                     Sacramento, CA 95814

                                                Page 84
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013

                   Fax:
                   Protest to RFP 10-87013
                   California Dental Medicaid Management Information Systems
                   Department of Health Care Services
                   Office of Medi-Cal Procurement
                   Fax: (916) 440-7369

                  For faxed protests

                  Faxed protests must be followed-up by sending an original signed protest, with all
                  supporting material, within one (1) calendar week of submitting the faxed protest.

                  Call the telephone numbers below to confirm receipt of a fax transmission:

                  Department of General Services                (916) 376-5080
                  Department of Health Care Services/CMU        (916) 650-0150
                  Department of Health Care                     (916) 552-8006
                  Services/OMCP

                  If you choose hand delivery, allow sufficient time to locate parking and have your Protest
                  document date/time stamped by DHCS personnel. Parking is especially difficult around
                  the DHCS building on Capitol Avenue.

      6. Disposition Of Proposals

         a. All materials submitted in response to this RFP will become the property of the Department
            of Health Care Services and, as such, are subject to the Public Records Act (GC Section
            6250, et seq.). DHCS will disregard any language purporting to render all or portions of any
            proposal confidential.

         b. Upon posting of a Notice of Intent to Award, all documents submitted in response to this
            RFP and all documents used in the selection process (e.g., review checklists, scoring
            sheets, letters of intent, etc.) will be regarded as public records under the California Public
            Records Act (Government Code Section 6250 et seq.) and are available to the public.
            However, these documents shall be held in the strictest confidence until the Notice of Intent
            to award is posted.

         c. DHCS may return a proposal to a Proposer at their request and expense after DHCS
            concludes the bid process.

      7. Public Release of Proposal Materials

         a. The following materials are made available to the public. Any person or member of the
            public can inspect or obtain copies of any proposal materials.

             1)   After the Pre-Proposal Conference, the sign-in or attendance sheet is a public record
                  and is available via Administrative Bulletin and is posted on the OMCP website.

             2)   On or after the date DHCS posts the Notice of Intent to Award, all proposals, Proposer
                  Lists, conference sign-in/attendance sheet, letters of intent, checklists and/or
                  scoring/evaluation sheets become public records and are part of the Bidder’s Package.
                  The Bidder’s Package is available on CD upon request.

         b. Obtaining CD copies of proposal materials


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California Dental FI Request For Proposal                                      DRAFT RFP 10-87013

             Persons wishing to obtain CD copies of proposal materials may call DHCS or e-mail a
             written request to the DHCS office identified below. The requestor must identify the items
             they wish to receive.

             Persons requesting CD copies must provide blank replacement CDs to the Department.

             Submit requests as follows:
             Request for CD Copies - RFP 10-87013
             California Dental Medicaid Management Information Systems
             Attn: Devyn Stanger, Lisa Flanders or Brian Quacchia
             Department of Health Care Services
             Office of Medi-Cal Procurement
             MS 4200
             1501 Capitol Ave , Suite 71.3041
             P.O. Box 997413
             Sacramento, CA 95899-7413
             OMCP Main Office (916) 552-8006



      8. Verification of Proposer information

         By submitting a proposal, Proposers agree to authorize DHCS to:

         a. Verify any and all claims made by the Proposer including, but not limited to verification of
            prior experience and the possession of other qualification requirements, and

         b. Check any reference identified by a Proposer or other resources known by DHCS to confirm
            the Proposers business integrity and history of providing effective, efficient and timely
            services.

      9. DHCS rights

         In addition to the rights discussed elsewhere in this RFP, DHCS reserves the following rights.

         a. RFP corrections

             1) DHCS reserves the right to do any of the following up to the proposal submission
                deadline:

                a) Modify any date or deadline appearing in this RFP or the RFP Time Schedule.

                b) Issue clarification notices, addenda, alternate RFP instructions, forms, etc.

                c) Waive any RFP requirement or instruction for all Proposers if DHCS determines that
                   the requirement or instruction was unnecessary, erroneous or unreasonable.

                d) Allow Proposers to submit questions about any RFP change, correction or addenda.
                   If DHCS allows such questions, specific instructions will appear in the cover letter
                   accompanying the document.

             2) If deemed necessary by DHCS to remedy an RFP error or defect that is not detected in
                a timely manner, DHCS may also issue correction notices or waive any unnecessary,
                erroneous, or unreasonable RFP requirement or instruction after the proposal
                submission deadline.

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California Dental FI Request For Proposal                                        DRAFT RFP 10-87013


             3) If this RFP is clarified, corrected, or modified, DHCS will post any clarification notices,
                Administrative Bulletins, and/or RFP addenda on the OMCP website.

                If DHCS decides, just before or on the proposal due date, to extend the submission
                deadline, DHCS may choose to notify potential Proposers of the extension by fax, email,
                telephone or by posting the information on the OMCP website. DHCS will follow-up any
                verbal notice in writing by fax, email, or by mail.

         b. Collecting information from Proposers/Clarification Process

             1) If deemed necessary, DHCS may request a Proposer to submit additional
                documentation during or after the proposal review and evaluation process. DHCS will
                advise the Proposers orally, by fax, email, or in writing of the documentation that is
                required and the time line for submitting the documentation. DHCS will follow-up oral
                instructions in writing by fax, email, or mail. Failure to submit the required
                documentation by the date and time indicated may cause DHCS to deem a proposal
                nonresponsive.

             2) DHCS, at its sole discretion, reserves the right to collect, by mail, email, fax or other
                method the following omitted documentation and/or additional information.

                a) Signed copies of any form submitted without a signature.
                b) Data or documentation omitted from any submitted RFP attachment/form.
                c) Information/material needed to clarify or confirm certifications or claims made by a
                   Proposer.
                d) Information/material or form needed to correct or remedy an immaterial defect in a
                   proposal.

             3) The collection of Proposer documentation may cause DHCS to extend the date for
                posting the Notice of Intent to Award. If DHCS changes the posting date, DHCS will
                advise the Proposers as described above.

         c. Immaterial proposal defects

             1) DHCS may waive any immaterial defect in any proposal and allow the Proposer to
                remedy those defects. DHCS reserves the right to use its best judgment to determine
                what constitutes an immaterial deviation or defect.

             2) DHCS’ waiver of an immaterial defect in a proposal shall in no way modify this RFP or
                excuse a Proposer from full compliance with all bid requirements.

         d. Correction of clerical or mathematical errors

             1) DHCS reserves the right, at its sole discretion, to overlook, correct or require a Proposer
                to remedy any obvious clerical or mathematical errors occurring in the narrative portion
                of a proposal or on a Cost Proposal form.

             2) If the correction of an error results in an increase or decrease in the total price, and a
                unit price pursuant to d 4) is not provided, DHCS shall give the Proposer the option to
                accept the corrected price or withdraw their proposal.

             3) Proposers may be required to initial corrections to costs and dollar figures on the Cost
                Proposal form if the correction results in an alteration of the annual costs or total cost
                offered.

                                                 Page 87
California Dental FI Request For Proposal                                       DRAFT RFP 10-87013


              4) If a mathematical error occurs in a total or extended price and a unit price is present,
                 DHCS will use the unit price to settle the discrepancy.

         e. Right to remedy errors

              1) DHCS reserves the right, at any time, to waive any RFP requirement or instruction for all
                 Proposes if DHCS determines that the requirement or instruction was unnecessary,
                 erroneous or unreasonable.

              2) DHCS reserves the right, at any time, to remedy errors caused by:

                 a) DHCS office equipment malfunctions or negligence by agency staff,
                 b) Natural disasters (i.e., floods, fires, earthquakes, etc.).

         f.   No contract award or RFP cancellation

              The issuance of this RFP does not constitute a commitment by DHCS to award a contract.
              DHCS reserves the right to reject all proposals and to cancel this RFP if it is in the best
              interests of DHCS to do so.

         g. Contract amendments after award

              As provided in the Public Contract Code governing contracts awarded by competitive bid,
              the DHCS reserves the right to amend the contract after DHCS makes a contract award.

         h. Proposed use of subcontractors and/or independent consultants

              Specific subcontract relationships proposed in response to this RFP (i.e., identification of
              pre-identified subcontractors and independent consultants) shall not be changed during the
              procurement process or prior to contract execution. The pre-identification of a subcontractor
              or independent consultant does not affect DHCS’ right to approve personnel or staffing
              selections or changes made after the contract award.

         i.   Staffing changes after contract award

              DHCS reserves the right to approve or disapprove changes in key personnel that occur after
              DHCS awards the contract.

Q.    Bidding Certification Clauses

      1. Certificate of Independent Price Determination

         a. The prospective Proposer certifies that:

              1) The prices in this bid or proposal have been arrived at independently without any
                 consultation, communication or agreement with any other Proposer or competitor for the
                 purpose of restricting competition relating to:

                 a) The prices or costs offered,
                 b) The intention to submit a bid or proposal,
                 c) The methods or factors used to calculate the costs or prices offered.

              2) The prices in this bid or proposal have not been and will not be knowingly disclosed by
                 the Proposer, directly or indirectly, to any other Proposer or competitor before the

                                                 Page 88
California Dental FI Request For Proposal                                         DRAFT RFP 10-87013

                bid/cost proposal opening date or date of contract award posting, unless otherwise
                required by law.

             3) No attempt has been made or will be made by the Proposer to induce any other firm or
                entity to submit or not to submit a bid or proposal for the purpose of restricting
                competition.

         b. Each signature appearing on the documents contained in this bid package/proposal is
            considered to be a certification by the signatory that the signatory:

             Is the person in the Proposer’s organization that is either responsible for determining the
             prices offered in this bid or proposal and/or is designated to complete the bid or proposal
             forms on behalf of the bidding firm, and the signatory has not participated and will not
             participate in any action contrary to all subsections of paragraph a.

      2. Debarment and Suspension Certification

         a. The Contractor certifies to the best of its knowledge and belief, that it and its principals:

             1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or
                voluntarily excluded by any federal department or agency;

             2) Have not within a three-year period preceding this proposal been convicted of or had a
                civil judgment rendered against them for commission of fraud or a criminal offense in
                connection with obtaining, attempting to obtain, or performing a public (Federal, State or
                local) transaction or contract under a public transaction; violation of Federal or State
                antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or
                destruction of records, making false statements, or receiving stolen property;

             3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental
                entity (Federal, State or local) with commission of any of the offenses enumerated in
                paragraph a.2) of this certification; and

             4) Have not within a three-year period preceding this application/proposal had one or more
                public transactions (Federal, State or local) terminated for cause or default.

             5) It shall not knowingly enter into any lower tier covered transaction with a person who is
                proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended,
                declared ineligible, or voluntarily excluded from participation in such transaction, unless
                authorized by the State.

             6) It will include a clause entitled "Debarment and Suspension Certification'' that essentially
                sets forth the provisions herein, in all lower tier covered transactions and in all
                solicitations for lower tier covered transactions.

         b. If the Contractor is unable to certify to any of the statements in this certification, the
            Contractor shall submit an explanation to the program funding this contract.

      3. Lobbying Restrictions and Disclosure

         a. The Contractor certifies, to the best of its knowledge and belief, that:

             1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the
                Contractor, to any person for influencing or attempting to influence an officer or
                employee of an agency, a Member of Congress, an officer or employee of Congress, or

                                                  Page 89
California Dental FI Request For Proposal                                         DRAFT RFP 10-87013

                 an employee of a Member of Congress in connection with the awarding of any Federal
                 contract, the making of any Federal grant, the making of any Federal loan, the entering
                 into of any cooperative agreement, and the extension, continuation, renewal,
                 amendment, or modification of any federal contract, grant, loan, or cooperative
                 agreement.

             2) If any funds other than federal appropriated funds have been paid or will be paid to any
                person for influencing or attempting to influence an officer or employee of any agency, a
                Member of Congress, an officer or employee of Congress, or an employee of a Member
                of Congress in connection with this Federal contract, grant, loan, or cooperative
                agreement, the Contractor shall complete and submit federal Standard Form-LLL,
                “Disclosure Form to Report Lobbying,'' in accordance with its instructions.

             3) The Contractor shall require that the contents of this certification be collected from the
                recipients of all subawards, exceeding $100,000, at all tiers (including subcontracts,
                subgrants, etc.) and shall be maintained for three years following final
                payment/settlement of those agreements.

         b. This certification is a material representation of fact upon which reliance was placed when
            this contract was made and/or entered into. The making of the above certification is a
            prerequisite for making or entering into this contract pursuant to 31 U.S.C. 1352 (45 CFR
            93). Any person who fails to file the required certification shall be subject to a civil penalty of
            not less than $10,000 and not more than $100,000 for each such failure.

         c. The Standard Form-LLL may be obtained from various federal agencies, federally
            sponsored World Wide Web Internet sites, DHCS upon request or may be copied from
            Exhibit D(F) entitled, Special Terms and Conditions.

R.    Preference and Incentive Programs

      To confirm the identity of the highest scored responsive Proposer, DHCS will adjust the total point
      score for applicable claimed preference(s). Bidding preferences shall not be applied to proposals
      that fail to pass the Checklist Review. DHCS will apply preference adjustments to eligible
      Proposers according to State regulations following on-line or personal verification of eligibility with
      the appropriate office of the Department of General Services.

      1. Small Business / Microbusiness Preference

         a. A responsive California small business or microbusiness Proposer claiming preference and
            verified as a certified small business or microbusiness in a relevant business category or
            type will be granted a preference of five percent (5%) of the total point score earned by the
            responsive/responsible Proposer with highest combined score, if the highest scored
            proposal is submitted by a non-small business. Non-small business means a
            responsive/responsible Proposer that is not certified by the California Department of
            General Services as a California small business or microbusiness in a relevant business
            category or type. The “service” category or business type will most likely apply to this
            procurement. Nonprofit Veteran Service Agencies (NVSA) are to view the instructions in
            provision 3 of this section (Preference Programs).

         b. To be certified as a California small business or microbusiness and eligible for a bidding
            preference the business concern must meet the State’s eligibility requirements and must
            have submitted an application for small business status no later than 5:00 p.m. on the
            proposal submission deadline.

             1) Not be dominant in its field of operations,

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             2) Be independently owned and operated,

             3) Have its principal office located in California,

             4) Have its owners (or officers in the case of a corporation) domiciled in California.

         c. Firms desiring small business or microbusiness certification must obtain the appropriate
            Small Business Certification Application (STD 812 or other form) from the appropriate office
            of the Department of General Services, fully complete the application, and submit it to the
            Department of General Services as instructed in the application. Prospective proposing
            firms desiring small business certification assistance, may contact the Department of
            General Services by the following means:

             1) (916) 322-5060 (24 hour recording and mail requests), or

             2) (916) 375-4940 (Small business assistance) or (800) 559-5529 (live operator Central
                receptionist), or

             3) Internet address: http://www.pd.dgs.ca.gov/smbus/default.htm or

             4) Fax: (916) 375-4950, or

             5) Email: osdchelp@dgs.ca.gov

             6) Together with its affiliates be either:

                a) A non-manufacturer with 100 or fewer employees and average annual gross receipts
                   of ten million dollars or less over the previous three years, or

                b) A manufacturer with 100 or fewer employees.

      2. Non-Small Business Subcontractor Preference

         a. Non-small business means a responsive/responsible Proposer that is not certified by the
            California Department of General Services as a small business or microbusiness.

         b. If the responsive Proposer earning the highest total score is not a certified small
            business/microbusiness, a bid preference up to five percent (5%) is available to a
            responsive non-small business Proposer committing twenty-five percent (25%) small
            business subcontractor use of one or more small businesses. When applicable, the
            preference points will be calculated pursuant to the regulations in Title 2, California Code of
            Regulations (CCR) § 1896.8 and will be added to total score of an eligible non-small
            business. This preference is authorized pursuant to Title 2, CCR § 1896.2 and Government
            Code § 14835.

         c. If a Proposer claims the non-small business subcontractor preference, the proposal
            response must identify each proposed small business subcontractor that will be used, the
            participation percentage and dollar amount committed to each identified small business
            subcontractor, and substantial proof to enable verification of each subcontractor’s small
            business status. The total small business subcontractor use must equal no less than
            twenty-five percent (25%) of the total cost offered.

         d. To be granted preference, each proposed small business subcontractor must possess an
            active small business certification issued by the Department of General services, must

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California Dental FI Request For Proposal                                        DRAFT RFP 10-87013

              perform a “commercially useful function” under the contract and the basic functions to be
              performed must be identified at the time of proposal submission.

         e. To request the non-small business subcontractor preference, complete Attachment 11a
            (Non-Small Business Subcontractor Preference Request) and Attachment 11b (Small
            Business Subcontractor/Supplier Acknowledgement).

         f.   Refer to the RFP section entitled, “Settlement of ties” to learn how tied costs will be
              resolved.

      3. DVBE Incentive

         a. DVBE Participation / Incentive Requirement

              This procurement is subject to a Disabled Veteran Business Enterprise (DVBE) participation
              goal of one-half of one percent (.5%). Pursuant to California laws and regulations, a DVBE
              incentive in the form of points added to the sum of the Narrative Proposal score (non-cost
              score) of responsive/responsible Proposers that provide for utilization of California certified
              DVBEs. The application of the DVBE incentive is for evaluation purposes only.

         b. Application of the DVBE Incentive

              Points will be added to the Narrative Proposal (non-cost) score of an eligible Proposer by
              the applicable DVBE incentive percentage as computed on the total possible points
              earnable for both the Narrative Proposal (non-cost) score and cost proposal score, when a
              Proposer:

              1) Commits participation or use of DVBEs to perform commercially useful functions under
                 the resulting contract. To demonstrate DVBE participation, Proposers are to:

                a) Follow the DVBE participation form completion instructions in Attachment 9 and return
                   the applicable DVBE forms, with the proposal response.

                b) DVBE participation commitments must be acknowledged and confirmed via
                   submission of a signed DVBE Subcontractor/Supplier Acknowledgement form with
                   the proposal response.

              2) When responsive/responsible Proposers claim and are deemed eligible for the small
                 business preference and/or the DVBE incentive or both, the small business preference
                 will be applied first.

              3) The DVBE incentive adjustment for this procurement may not exceed .5% of the total
                 possible points.

              4) When responsive/responsible Proposers are eligible for one or more incentives and/or
                 preferences, the order of application shall be as follows:

                 a)   Small business preference will be applied first (if applicable)
                 b)   The DVBE incentive second (if applicable)
                 c)   The non-small business subcontractor preference (if applicable)
                 d)   Other bid preferences including Target Area Contract Preference Act preference
                      (TACPA), Enterprise Zone Act (EZA), Local Area Military Base Recovery Act
                      (LAMBRA) preference, etc. (if applicable)



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         c. DVBE Incentive Scale

             Unless superseded and replaced by an alternate DVBE Incentive Scale issued by DHCS
             prior to proposal due date, the following incentive scale will apply to this procurement.

             Illustration of possible narrative or Narrative Proposal (non-cost) points = 600
             Illustration of possible cost proposal points = 600
             Illustration of total possible points = 1200


              Percentage of DVBE Participation           Allowable DVBE Incentive Added to a
              Achieved and Acknowledged                  Narrative Proposal (Non-Cost) Score
              Over 4.5%                                  5% of total possible points (5% X 1200) = 60
              Over 3.5% and up to 4.5%                   4% of total possible points (4% X 1200) = 48
              Over 2.5% and up to 3.5%                   3% of total possible points (3% X 1200) = 36
              Over 1.5% and up to 2.5%                   2% of total possible points (2% X 1200) = 24
              Over .5% and up to 1.5%                    1% of total possible points (1% X 1200) = 12
              .5%                                        0% of total possible points

S.    Contract Terms and Conditions

      1. Loss Leader Clause

         It is unlawful for any person engaged in business within this state (California) to sell or use any
         article or product as a “loss leader” as defined in Section 17030 of the Business and
         Professions Code.

      2. Other Terms and Conditions

         The winning Proposer must enter a written contract that may contain portions of the Proposer’s
         proposal (i.e., Cost Proposal Bid Forms, Work Plan), Scope of Work, Scope of Work
         Attachments, standard contract provisions, contract form, and the exhibits identified below.
         Other exhibits, not identified herein, may also appear in the resulting contract.

         The exhibits identified in this section contain contract terms that require strict adherence to
         various laws and contracting policies. A Proposers unwillingness or inability to agree to the
         proposed terms and conditions shown below or contained in any exhibit identified in this RFP
         may cause DHCS to deem a Proposer non-responsible and ineligible for an award. DHCS
         reserves the right to use the latest version of any form or exhibit listed below in the resulting
         agreement if a newer version is available.

         The exhibits identified below illustrate many of the terms and conditions that may appear in the
         final agreement between DHCS and the winning Proposer. Other terms and conditions, not
         specified in the exhibits identified below, may also appear in the resulting agreement. Some
         terms and conditions are conditional and may only appear in an agreement if certain conditions
         exist (i.e., contract total exceeds a certain amount, federal funding is used, etc.).

         In general, DHCS will not accept alterations to the General Terms and Conditions (GTC),
         DHCS’ Special Terms and Conditions, the Scope of Work, other exhibit terms/conditions, or
         alternate language that is proposed or submitted by a prospective contractor. DHCS may
         consider a proposal containing such provisions “a counter proposal” and DHCS may reject such
         a proposal as nonresponsive.

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California Dental FI Request For Proposal                                     DRAFT RFP 10-87013


      3. Sample contract forms / exhibits


         Exhibit Label         Exhibit Name

          a. Exhibit A-1       Standard Agreement

          b. Exhibit A         Scope of Work

                               Attachments:

                               Ex A, SOW (Standard language)
                               Ex A, Att I Takeover
                               Ex A, Att II Scope of Work, ALL Operations
                               Ex A, Att III Change Requirements
                               Ex A, Att IV Enhancements
                               Ex A, Att V Turnover Runout

          c. Exhibit B         Budget Detail and Payment Provisions

                               Attachments:

                               Ex B, Special Payment Provisions

          d. Exhibit C -       General Terms and Conditions (GTC 610). View or download
             View on-line.     this exhibit at this Internet site:
                               http://www.ols.dgs.ca.gov/Standard Language/default.htm.

          e. Exhibit D(F)      Special Terms and Conditions

          f.   Exhibit E       Additional Provisions

                               Attachments:

                               Ex E, Att 1
                               Ex E, Att 2

          g. Exhibit F         Contractor’s Release

          h. Exhibit G         Travel Reimbursement Information

          i.   Exhibit H       Information Confidentiality and Security Requirements

          j.   Exhibit I       HIPAA Business Associate Addendum

          k. Exhibit J         Staffing Qualifications

      4. Unanticipated tasks

         In the event unanticipated or additional work must be performed that is not identified in this
         RFP, but in DHCS’ opinion is necessary to successfully accomplish the scope of work, DHCS
         will initiate a contract amendment to add that work. All terms and conditions appearing in the
         final contract including the salary/wage rates, unit rates and/or other expenses appearing on the
         Proposers Budget Detail Work Sheets will apply to any additional work and extension options.

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California Dental FI Request For Proposal                                   DRAFT RFP 10-87013


      5. Resolution of language conflicts (RFP vs. final agreement)

         If an inconsistency or conflict arises between the terms and conditions appearing in the final
         agreement and the proposed terms and conditions appearing in this RFP, any inconsistency or
         conflict will be resolved by giving precedence to the final agreement.




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DOCUMENT INFO
Description: Exhibit a Sow Template, Staffing document sample