Taxation Data Warehouse RFP

STATE OF NEW JERSEY REQUEST FOR PROPOSAL FOR: TAXATION DATA WAREHOUSE, PARTNERSHIP DEVELOPMENT OF A **RFP ON WEB** ESTIMATED AMOUNT: N/A CONTRACT EFFECTIVE DATE: TBD COOPERATIVE PURCHASING: NO SET ASIDE: FOR SUBCONTRACTING ONLY TO BE COMPLETED BY BIDDER: BID NUMBER: 05-X-36861 TERM CONTRACT #: T-2260 REQUESTING AGENCY: 822050 DIRECT QUESTIONS CONCERNING THIS RFP TO: MARY LOU GOHO, marylou.goho@treas.state.nj.us PHONE NUMBER: (609) 292-4927 FAX NUMBER: (609) 292-5170 Address: Firm Name: ___________________________________________ PURSUANT TO N.J.S.A. 52:34 - 12 AND N.J.A.C. 17:12 - 2.2, PROPOSALS WHICH FAIL TO CONFORM WITH THE FOLLOWING REQUIREMENTS WILL BE AUTOMATICALLY REJECTED: 1) PROPOSALS MUST BE RECEIVED AT OR ON BEFORE THE PUBLIC OPENING TIME OF 2 PM ON AUGUST 23, 2004, AT THE FOLLOWING PLACE: DEPARTMENT OF THE TREASURY, PURCHASE BUREAU, 33 WEST STATE STREET, 9TH FLOOR, PO BOX 230, TRENTON, NEW JERSEY 08625-0230. TELEPHONE, TELEFACSIMILE OR TELEGRAPH PROPOSALS WILL NOT BE ACCEPTED. THE PROPOSER MUST SIGN THE PROPOSAL. THE PROPOSAL MUST INCLUDE ALL PRICE INFORMATION. PROPOSAL PRICES SHALL INCLUDE DELIVERY OF ALL ITEMS, F.O.B. DESTINATION OR AS OTHERWISE PROVIDED. PRICE QUOTES MUST BE FIRM THROUGH ISSUANCE OF CONTRACT. 4) ALL PROPOSAL PRICES MUST BE TYPED OR WRITTEN IN INK. 5) ALL CORRECTIONS, WHITE-OUTS, ERASURES, RESTRIKING OF TYPE, OR OTHER FORMS OF ALTERATION, OR THE APPEARANCE OF ALTERATION, TO UNIT AND/OR TOTAL PRICES MUST BE INITIALED IN INK BY THE BIDDER. 6) THE PROPOSER MUST SUBMIT WITH THE PROPOSAL BID SECURITY IN THE AMOUNT OF 10%. CHECK THE TYPE OF BID SECURITY SUPPLIED: ANNUAL BID BOND ON FILE: ____________ BID BOND ATTACHED: ___________ CERTIFIED OR CASHIERS CHECK ATTACHED: ____________ LETTER OF CREDIT ATTACHED: ____________ 7) THE PROPOSER MUST COMPLETE AND SUBMIT, PRIOR TO THE SUBMISSION OF THE PROPOSAL, OR ACCOMPANYING THE PROPOSAL, THE ATTACHED OWNERSHIP DISCLOSURE FORM. (SEE N.J.S.A. 52:25-24.2). 8) THE PROPOSER MUST ATTEND THE MANDATORY PRE-PROPOSAL CONFERENCE AT THE FOLLOWING DATE AND TIME: MAY 5, 2004, 9:30 AM EASTERN TIME, 9TH FLOOR BID ROOM, 33 WEST STATE STREET, TRENTON, NJ, 08625. ADDITIONAL REQUIREMENTS 9) PERFORMANCE SECURITY: 10% 11) AN AFFIRMATIVE ACTION FORM (ATTACHED) 10) PAYMENT RETENTION: 10% 12) A MACBRIDE PRINCIPALS CERTIFICATION (ATTACHED) 2) 3) 13) REQUESTED DELIVERY: SEE DETAILS ELSEWHERE IN RFP 14) CERTIFICATION OR NOTIFICATION OF REGISTRATION WITH THE SECRETARY OF STATE IF A FOREIGN (NON-NJ) CORPORATION, IF NECESSARY (SEE N.J.S.A 14A:13-1 ET SEQ. AND N.J.A.C. 17:12-2.12). 15) FOR SET ASIDE CONTRACTS ONLY, N.J. DEPARTMENT OF COMMERCE CERTIFICATION OF REGISTRATION AS A SMALL BUSINESS (SEE N.J.A.C. 17:13-1.1 INCLUDED HEREIN. TO BE COMPLETED BY BIDDER 16) DELIVERY CAN BE MADE_______ DAYS OR _______ WEEKS AFTER RECEIPT OF ORDER. 17) CASH DISCOUNT TERMS (SEE RFP) _________%, _________ DAYS: NET ___________DAYS. 18) BIDDER PHONE NO: ________________________ 19) BIDDER FAX NO. ___________________________________ 21) BIDDER FEDERAL ID NO. ____________________________ 20) BIDDER E-MAIL ADDRESS. ___________________________________________ 22) YOUR BID REFERENCE NO. __________________________________________ SIGNATURE OF THE BIDDER ATTESTS THAT THE BIDDER HAS READ, UNDERSTANDS, AND AGREES TO ALL TERMS, CONDITIONS, AND SPECIFICATIONS SET FORTH IN THE REQUEST FOR PROPOSAL, INCLUDING ALL ADDENDA, FURTHERMORE, SIGNATURE BY THE BIDDER SIGNIFIES THAT THE REQUEST FOR PROPOSAL AND THE RESPONSIVE PROPOSAL CONSTITUTES A CONTRACT IMMEDIATELY UPON NOTICE OF ACCEPTANCE OF THE PROPOSAL BY THE STATE OF NEW JERSEY FOR ANY OR ALL OF THE ITEMS BID, AND FOR THE LENGTH OF TIME INDICATED IN THE REUEST FOR PROPOSAL. FAILURE TO ACCEPT THE CONTRACT WITHIN THE TIME PERIOD INDICATED IN THE REQUEST FOR PROPOSAL, OR FAILURE TO HOLD PRICES OR TO MEET ANY OTHER TERMS AND CONDITIONS AS DEFINED IN EITHER THE REQUEST FOR PROPOSAL OR THE PROPOSAL DURING THE TERM OF THE CONTRACT, SHALL CONSTITUTE A BREACH AND MAY RESULT IN SUSPENSION OR DEBARMENT FROM FURTHER STATE BIDDING. A DEFAULTING CONTRACTOR MAY ALSO BE LIABLE, AT THE OPTION OF THE STATE, FOR THE DIFFERENCE BETWEEN THE CONTRACT PRICE AND THE PRICE BID BY AN ALTERNATE VENDOR OF THE GOODS OR SERVICES IN ADDITION TO OTHER REMEDIES AVAILABLE. 23) ORIGINAL SIGNATURE OF PROPOSER 25) PRINT/TYPE NAME AND TITLE 24) NAME OF FIRM 26) DATE PBRFP-2 R7/02 TABLE OF CONTENTS 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2.0 3.0 3.1 3.2 3.3 3.4 3.5 4.0 4.1 4.2 4.3 4.4 5.0 5.1 5.2 5.3 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 INFORMATION FOR PROPOSERS ..............................................................................................4 Introduction .....................................................................................................................................4 Purpose and Intent..........................................................................................................................4 Background .....................................................................................................................................5 Project Objectives ...........................................................................................................................5 Overview of Procurement Process .................................................................................................5 Key Events ......................................................................................................................................9 Additional Information .................................................................................................................. 12 DEFINITIONS .............................................................................................................................. 14 SCOPE OF WORK ...................................................................................................................... 17 Introduction .................................................................................................................................. 17 Technical Program Information.................................................................................................... 17 Current Systems and Technology................................................................................................ 18 Future Vision ................................................................................................................................ 22 System Requirements.................................................................................................................. 26 PROPOSAL PREPARATION AND SUBMISSION..................................................................... 50 Responsibilities for All Phases..................................................................................................... 50 Proposer Qualifications Content .................................................................................................. 50 Draft Proposal Content................................................................................................................. 52 Final Proposal Content: Technical and Price Proposals............................................................. 61 RESPONSIBILITIES OF STATE AND BUSINESS PARTNER .................................................. 65 Qualifications Phase Responsibilities .......................................................................................... 65 Proposal Development Phase Responsibilities ........................................................................... 66 Systems Development Phase...................................................................................................... 67 SPECIAL TERMS AND CONDITIONS ....................................................................................... 71 Precedence of Special Terms and Conditions............................................................................. 71 Performance Bond ....................................................................................................................... 71 Business Registration .................................................................................................................. 71 Contract Term and Extension Option........................................................................................... 71 Contract Transition....................................................................................................................... 71 Availability of Funds ..................................................................................................................... 71 Contract Addendum ..................................................................................................................... 72 Contractor Responsibilities .......................................................................................................... 72 Substitution of Staff ...................................................................................................................... 72 Substitution or Addition of Subcontractor(s) ................................................................................ 72 Ownership of Material .................................................................................................................. 73 Data Confidentiality ...................................................................................................................... 73 News Releases ............................................................................................................................ 74 Advertising ................................................................................................................................... 74 Licenses and Permits................................................................................................................... 74 Claims and Remedies .................................................................................................................. 74 Deficient Performance.................................................................................................................. 74 Retainage..................................................................................................................................... 75 Changes to Scope of Work .......................................................................................................... 75 Suspension of Work ..................................................................................................................... 75 Change in Law ............................................................................................................................. 75 Contractor Price Increase (Prevailing Wage) – N/A .................................................................... 75 Additional Work and/or Special Projects...................................................................................... 75 2 6.24 6.25 7.0 Form of Compensation and Payment .......................................................................................... 76 Insurance Requirements .............................................................................................................. 77 ATTACHMENTS AND APPENDICES ........................................................................................ 79 Signature Page for Proposer's Response Opportunity Project Name: Opportunity Project A Opportunity Project Name: Opportunity Project B Opportunity Project Name: Opportunity Project C Supplemental Form A: Hourly Rates of Proposer Staff Supplemental Form B: Cost of Hardware and Software for Development Supplemental Form C: Cost of Hardware and Software for Production Supplemental Form D: Cost of Hardware and Software for Additional Information Supplemental Form E: Costs for Development Signature Page for Price Proposal Appendix 1: Confidentiality and Non-Disclosure Agreement Appendix 2: Analysis of Major New Jersey State Taxes State Price Lines 8.0 STATE NOTICES AND FORMS ................................................................................................. 94 3 1.0 1.1 INFORMATION FOR PROPOSERS Introduction The Department of the Treasury, Division of Purchase and Property, Purchase Bureau (the "Division"), on behalf of the Department of the Treasury, Division of Taxation (“Using Agency” or “Taxation”) is issuing this Request For Proposal (RFP) for qualified Proposers of hardware, software and related system integration services necessary to develop, implement and operate a platform to be known as the “Taxation Data Warehouse” (“TDW”). This section sets forth information to acquaint potential Proposers with the purpose of the procurement, and the procurement process. Detailed descriptions of the Scope of Work and the procurement requirements are set forth below in Sections 3.0 and 4.0, respectively. 1.2 Purpose and Intent The purpose of this RFP is to enter into a novel business partnership for the development, implementation and operation of the TDW, a platform to collect, store and analyze tax and fee compliance related data, and to utilize the data to generate additional State revenue through compliance initiatives conducted by the Division of Taxation. The TDW will integrate tax and fee-related data from a variety of internal and external sources, thus permitting flexible access to the data for reporting and compliance activities. The State is seeking a Business Partner, a term which refers to a cooperative relationship and to a shared effort to achieve common goals. The Business Partner will share the Division of Taxation’s values and commit to a relationship based on mutual trust and open communications and teamwork. To develop that relationship, the State and the Business Partner will agree to: Develop a mutually beneficial long-term business relationship, which produces measurable results in an environment of integrity, ethics, and trust. Support the mutual strategic goals while planning and implementing continuous improvement in products, services, processes, and human involvement. Actively pursue projects that focus on reengineered processes and automated solutions for the purpose of providing improved revenue collections and efficiencies to the State, while developing and improving products on a shared risk/reward basis. Promote a cooperative relationship in which conflicts are resolved through negotiation. Openly communicate requirements, make special efforts to understand them, consider the capabilities of the other partner, and agree to strive to meet requirements 100% of the time. Be accountable for its commitments and follow through by supporting the oral and written commitments it makes. Anticipate, meet, and exceed mutual internal/external customers’ needs. Commit itself to a program of continuous improvement. Recognize and reward the contributions of each partner. The Taxation Data Warehouse will be a self-funded initiative. Payments to the Business Partner for hardware and software (which will be placed in the State infrastructure), and for services defined in the Scope of Work, will be provided exclusively from the increased revenue to the State generated by implementing Defined Business Intelligence Applications (defined in Section 2.0). The Business Partner will be compensated through collections from individual tax cases that are identified solely through the use of the TDW, and tagged and tracked as such by Taxation through its TULIPS system until collections are achieved (Section 3.3.1.1.3). Thus payments to the Business Partner will be delayed until collection of additional revenue by the State. The Business Partner will share in the financial risks and rewards of the TDW project. The Business Partner will estimate the increase in State revenue expected from the implementation of each Defined Business Intelligence Application. The Business Partner’s estimate of additional revenue will be the benchmark against which the compensation due to the Business Partner will be calculated. Failure to 4 meet the estimate may result in a reduction of compensation. Revenue collections in excess of the estimate may result in payment of a premium to the Business Partner (Section 3.4.3). 1.3 Background The Division of Taxation administers over 30 revenue-generating (i.e., tax and fee) statutes, and 3 property tax relief programs. Voluntary tax compliance represents the principal means of revenue collection. However, the Division of Taxation also engages in compliance initiatives. In fact, tax compliance activities by Taxation auditors and investigators generate annual collections approximating $1 billion. Compliance initiatives utilize information from various systems, both internal and external to the State, to identify and analyze tax registration related discrepancies, delinquent taxpayers, and audit candidates. Limitations on the ability to synthesize data from various sources impede Taxation’s data analysis efforts, which in turn may affect revenue collection initiatives. The TDW Project represents a strategy to effectively address these issues in a manner that most effectively utilizes Taxation personnel and resources. 1.4 Project Objectives The TDW project seeks to accomplish multiple goals: Contract with a qualified systems integrator to build the TDW and agree to be paid from actual increases in State revenue collected. Construct the TDW to: Identify data analysis opportunities for improving tax determination, assessment and collection. Determine the data required to support these analysis opportunities, and to support other Division of Taxation non-operational reporting needs. Design the TDW to meet these and future (yet to be defined) Business Intelligence needs. Implement the TDW in stages that reflect the Division of Taxation’s business priorities and labor resource constraints. Utilize the results of successful TDW projects to help determine future projects. Make use of State of New Jersey shared information resources where possible to efficiently obtain and utilize data. 1.5 Overview of Procurement Process This RFP is novel in its approach when compared to previous State procurements. Unlike other procurements, it is divided into three phases: Qualifications, Proposal Development, and Final Proposal. In addition, unlike more typical State procurements, the State will discuss Draft Proposals with Proposers during the Proposal Development phase. 1.5.1 Qualifications Phase The purpose of the Qualifications Phase is to provide the State with data from interested Proposers that can be objectively evaluated to determine which interested Proposers are qualified for award of the contract. This process will result in the State inviting those Proposers determined to be qualified to continue into the next phase of the solicitation. 1.5.1.1 Develop and Issue Request for Proposal (RFP) The release of the RFP initiates the Qualifications Phase soliciting those interested Proposers capable of performing the Scope of Work. 5 1.5.1.2 Conduct Mandatory Pre-Proposal Conference The Pre-Proposal Conference (Section 1.6.3) provides the initial opportunity for further explanation of the RFP. At the Conference, the State will highlight, among other items, its strategic directions, the solicitation process, and its expectations for building a partnership with the winning Proposer. In particular, the State will focus on advantages of quality partnering, benefits of innovation, importance of mutual transfer of project and product knowledge, and criticality of timeliness in both the RFP process and product implementation. Attendance by interested Proposers at the Pre-Proposal Conference is mandatory. 1.5.1.3 Receive Proposer Qualifications Each interested Proposer will respond to the solicitation with its business and technical qualifications, adhering to the Proposal Format (Section 4.2) when submitting its qualifications. 1.5.1.4 Score Proposer Qualifications The data submitted by each interested Proposer will be objectively evaluated against a benchmark in accordance with evaluation criteria (Section 4.2.4.1). At its discretion, the State may ask one or more interested Proposers to provide more information or a presentation of its qualifications. 1.5.1.5 Announce Qualified Proposers After the evaluation of responses has been completed, the State will announce which Proposers are considered to be potentially qualified for award of the contract. 1.5.2 Proposal Development Phase The Proposal Development Phase incorporates an iterative, conversational mode of proposal development. It has been designed to enable the Division of Taxation, working together in confidence with each Qualified Proposer, to assess and discuss the viability and effectiveness of its proposed methods of complying with the Scope of Work. This Phase applies only to Qualified Proposers. This Phase will conclude with the submission of Final Proposals. 1.5.2.1 Conduct RFP Clarification and Analysis Meetings The State will conduct one or more RFP clarification and analysis meetings with Qualified Proposers as a group. The purpose of these meetings is to clarify the RFP as a result of questions introduced at the meetings or through official correspondence. Statements made at these meetings shall not be considered addenda, unless issued as such. Qualified Proposers are encouraged to suggest any changes to the terms and conditions of the RFP and such requests must be submitted prior to the State’s invitation to submit Final Proposals to allow the State sufficient opportunity to review all such requests, and issue addenda, as appropriate. The State will provide and coordinate reasonable access to business experts from the Division of Taxation who will assist the Qualified Proposers in analyzing agency functions and strategic objectives. As an initial component of the Proposal Development phase, the Qualified Proposers will assist the State in refining and validating the requirements. The Qualified Proposers will also develop a conceptual design for the entire new system. During this time, the Qualified Proposers will utilize the business expertise of key employees, combined with their own knowledge and experiences, to develop a business solution that is aligned with the State’s strategic direction. 6 1.5.2.2 Receive Draft Proposals from Qualified Proposers Each Qualified Proposer will respond with its Draft Proposal. The Draft Proposal must adhere to the Proposal Format (Section 4.3), and must be complete in every respect as required by the RFP, including cost and benefit worksheets and supplemental forms (Section 4.3.2.23) but excluding the Price Proposal. 1.5.2.3 Conduct Confidential Discussions As part of the State’s review of Draft Proposals, the State will hold Confidential Discussions with individual Proposers and will provide feedback to each Proposer in preparation for submittal of Final Proposals. In conducting discussions, there will be no disclosure of any information derived either from proposals submitted by competing Proposers or the discussions themselves. Discussions taking place during this step may include contacting references, receiving demonstrations, conducting interviews, participating in meetings, performing site visits, and other activities necessary for the State to gather sufficient information to make an informed decision, and to enable Proposers sufficient opportunity to fully understand the State’s needs and requirements. Proposers will be accorded fair treatment with respect to any opportunity for discussion and revision of proposals. The State will commence discussions with each Proposer to gain a complete understanding of the proposal and to eliminate any deficiencies. For each revision of its Draft Proposal, the Proposers will document any additions to and deletions from, and any changes clarifying understanding of, the proposal. The State will document any outstanding or unresolved issues for resolution during subsequent discussions. Discussions of the Draft Proposal will occur in parallel with resolution of proposed contract principles that directly impact the potential Business Partners’ proposals. The State will discuss with each Proposer changes to the contractual terms and conditions suggested by the Proposer. Any changes agreed to by the State will apply to all Proposers. The State will issue an addendum that reflects agreed upon changes to the contractual terms and conditions. The State and the Proposers will work jointly to refine contract terms that might affect proposed goods and services and to identify benefits/revenues expected from the Business Opportunities proposed. Discussions will continue until both the State and each Proposer are satisfied with the proposal or until expiration of the time frame allotted for proposal development discussions as specified in RFP Section 1.6, Key Events. Discussions may be documented to serve as a permanent record. 1.5.2.4 Issue Addenda to RFP The State may modify the RFP prior to inviting the submission of Final Proposals, through issuance of addenda to all Proposers. 1.5.2.5 Request Final Proposals Following completion of Confidential Discussions, the State will invite the submission of Final Proposals. If necessary, an addendum will set forth any changes to the date, time and place for the submission of Final Proposals. Final Proposals will be requested only once unless the Director of the Division of Purchase and Property makes a written determination that it is advantageous to the State to conduct further Confidential Discussions. 1.5.3 Final Proposal Phase The purpose of the Final Proposal Phase is to allow the State to fairly evaluate the proposals and recommend award of a contract to the Proposer whose Proposal, conforming to this RFP, is most advantageous to the State, price and other factors considered. 7 1.5.3.1 Receive Final Proposals Each Proposer will respond with a Final Proposal. The Final Proposal must adhere to the Proposal Format (Section 4.4), and must be timely and complete in every respect as required by the RFP. 1.5.3.2 Evaluate Final Proposals The State will evaluate Final Proposals in accordance with specified criteria (Section 4.4.3.1). The State will evaluate the proposed solution as reflected in the Final Proposals and supported by customer references. Final Proposals will be made public at bid opening, which will occur when the State opens the Price Proposals. Bid opening will take place after the State has completed evaluation of the Technical Proposals. Following bid opening, the State will factor price into its evaluation of the Final Proposals, and reserves the right to conduct negotiations with any Proposer in accordance with N.J.S.A. 52:34-12(f). The State reserves the right to reject all Final Proposals and to designate all such Final Proposals as Second Draft Proposals. The State may then conduct an additional round of Confidential Discussions with Proposers leading to submission and review of new Final Proposals and the award process described above. 1.5.3.3 Final Proposal Evaluation Committee Proposals will be evaluated by an Evaluation Committee composed of representative(s) from the Division of Purchase and Property, the Division of Taxation, and the Department of the Treasury. The Evaluation Committee may choose to make use of the expertise of outside consultants in an advisory role. 1.5.3.4 Oral Presentation and/or Clarification of Final Proposal A Proposer may be required to give an oral presentation to the Evaluation Committee. The Evaluation Committee may also require a Proposer to submit written responses to questions regarding its proposal. The purpose of such communication with a Proposer, either through an oral presentation or a letter of clarification is to provide an opportunity for the Proposer to clarify its proposal. Original proposals submitted, however, cannot be supplemented, changed, or corrected in any way. No comments regarding other proposals are permitted. Proposers shall not initiate any contact with the State to clarify or explain their proposals unless requested to do so by the State. Proposers may not attend presentations made by their competitors. The Evaluation Committee has the discretion to determine whether to require a Proposer to give an oral presentation or require a Proposer to submit written responses to questions regarding its proposal. Action by the Evaluation Committee in this regard should not be construed to imply acceptance or rejection of a proposal. 1.5.4 Price Proposal Evaluation Price Proposals will be evaluated based on the criteria in Section 4.4.3.1.2. Following the opening of Price Proposals, the State reserves the right, pursuant to N.J.S.A. 52:34-12(f), to negotiate the terms of a proposed contract award with any Proposer that submitted a Final Proposal. Such negotiations shall remain confidential until Notice of Intent to Award a Contract. 1.5.5 Contract Award The contract shall be awarded by written notice to that responsible Proposer, whose proposal, conforming to the RFP, will be most advantageous to the State, price and other factors considered. Any or all 8 proposals may be rejected when the State Treasurer or the Director of the Division of Purchase and Property determines that it is in the public interest to do so. 1.6 Key Events The Table below outlines the tentative schedule for important action dates. If the State finds it necessary to change any of these dates, notification will be accomplished through an addendum to this RFP. Table 1: Key Action Dates ACTION Phase I 1 2 3 4 5 Phase II 1 2 3 4 5 6 Phase III 1 2 3 4 5 6 Phase IV Qualifications Phase Issue Request for Proposal Conduct Pre-Proposal Conference Receive Qualifications Proposals Score Qualifications Proposals Announce Qualified Proposers Proposal Development Phase Issue Addenda to RFP Conduct RFP Clarification and Analysis Meetings Receive Draft Proposals From Qualified Proposers Conduct Confidential Discussions Request Final Proposals and Price Proposals Receive Final Proposals and Price Proposals Final Proposal Phase Evaluate Final Proposals Conduct Site Visits Open Price Proposals Announce Intent to Award Finalize Contract Terms Sign and Award Contract System Development Phase August 24 to Sept 3 August 24 to Sept 3 September 7 September 15 September 16 – 21 September 22 June 11 June 14 – 25 July 16 July 19 – 30 August 2 August 23 Week April 12 May 5 May 5 – 21 May 24 to June 4 June 7 DATE 1.6.1 Questions and Inquiries for Qualifications Phase It is the policy of the Division to accept questions and inquiries from all potential Proposers receiving this RFP. Written questions can be e-mailed, faxed or mailed to the Purchase Bureau to the attention of the assigned Purchase Bureau buyer at the following address: Attn: Mary Lou Goho New Jersey Division of Purchase and Property Purchase Bureau PO Box 230 Trenton, NJ 08625-0230 9 E-Mail: marylou.goho@treas.state.nj.us Phone Number: 609-292-4927 Fax Number: 609-292-5170 1.6.1.1 Cut-Off Date for Questions and Inquiries A Mandatory Pre-Proposal Conference has been scheduled for this procurement (Refer to Section 1.5.1.2). The cut-off date for submission of questions for the Qualifications Phase will be the date of the Mandatory Pre-Proposal Conference. While all questions will be entertained at the Conference, it is strongly urged that questions be submitted in writing prior to the Conference. Proposers having long, complex or multiple part questions should submit them in writing as far in advance of the Mandatory PreProposal Conference as possible to permit the State the opportunity to prepare responses in advance, as appropriate. 1.6.1.2 Question Protocol Questions must be submitted in writing to the attention of the assigned Purchase Bureau buyer. The writer should directly tie written questions to the RFP. Questions should be asked in consecutive order, from beginning to end, following the organization of the RFP. Each question should begin by referencing the RFP page number and section number to which it relates. Short procedural inquiries may be accepted by telephone by the Purchase Bureau buyer, however, oral explanations or instructions given over the telephone shall not be binding upon the State. Proposers shall not contact the Using Agency or any State employee directly, in person, by e-mail or by telephone, concerning this RFP. 1.6.2 Mandatory Site Visit Mandatory site visits will not be required. However, the State reserves the right to request a site visit of any Proposer (Section 4.2.2.3). 1.6.3 Mandatory Pre-Proposal Conference The date, time and location of the Mandatory Pre-Proposal Conference are as follows: Date/Time: Location: May 5, 2004, 9:30 AM Eastern time NJ PURCHASE BUREAU 9th Floor BID ROOM 33 WEST STATE STREET TRENTON, NJ 08625-0230 Directions to the Pre-Proposal Conference can be found at http://www.state.nj.us/treasury/purchase/faqdirs.htm on the web. CAUTION: Qualifications Proposals will be automatically rejected from any Proposer that was not represented or failed to properly register at the Mandatory Pre-Proposal Conference. The purpose of the Mandatory Pre-Proposal Conference is to provide a structured and formal opportunity for the State to accept and answer questions from Proposers regarding this RFP. Any revisions to the RFP resulting from the Mandatory Pre-Proposal Conference will be formalized as an addendum. Answers to deferred questions will also be formalized as an addendum. See Section 1.7.1 for procedure to obtain addenda. 1.6.4 Submission of Proposals 10 In order to be considered for award, all proposals (Qualification, Draft and Final) must be received by the Purchase Bureau at the appropriate location by the required time. ANY PROPOSAL NOT RECEIVED ON TIME AT THE RIGHT PLACE WILL BE REJECTED. THE EXTERIOR OF ALL PROPOSAL RESPONSE PACKAGES MUST BE LABELED WITH THE BID IDENTIFICATION NUMBER, OPENING DATE, AND THE BUYER’S NAME. Each Proposer must submit one (1) complete ORIGINAL proposal, clearly marked as the “ORIGINAL” proposal, and twelve (12) full, complete and exact copies. Proposers failing to provide the requested number of copies will be charged the cost incurred by the State to produce the requested number of copies. The dates for submissions are set forth in KEY EVENTS above, with the time and location as follows: DATE/TIME: LOCATION: AUGUST 23, 2004, 2:00 PM Eastern time 9TH FLOOR BID ROOM PURCHASE BUREAU DIVISION OF PURCHASE AND PROPERTY DEPARTMENT OF THE TREASURY 33 WEST STATE STREET P.O. BOX 230 TRENTON, NJ 08625-0230 Directions to the Purchase Bureau can be found at http://www.state.nj.us/treasury/purchase/faqdirs.htm on the web. 1.6.5 Interview and Information Review Room The State has established an Interview and Information Review Room to provide Proposers with the opportunity to review supplemental materials relevant to this procurement. The Interview and Information Review Room has been established to allow Proposers access to information that may be needed to prepare and submit accurate and comprehensive proposals. Such review, while recommended, is not mandatory. The Interview and Information Review Room will be located at New Jersey Division of Taxation 50 Barrack Street 3rd Floor Personal Income Tax Conference Room Trenton, New Jersey 08625-0269 The room will be accessible from 9 AM to 4 PM Monday to Friday, excluding State holidays, commencing upon release of the RFP and ending at 4 PM on the business day before the Final Proposal response due date. The following documents as well as others that may not be listed below will be available in the Interview and Information Review Room. Table of Potential Business Opportunities Detailed List of Current Projects Record Layouts for External Data Data Fields and Description for Internal Data Division of Taxation Organization Chart Audit Tax Assessment Reports Copy of Statewide Logical Data Model Copy of Statewide Logical Data Model Narrative NJ Common Data Architecture Executive Summary 11 Shared IT Architecture Systems Directory 2002 Annual Report of the Division of Taxation 1.6.5.1 Limitations on Access Proposers are prohibited from removing any materials from the Interview and Information Review Room. Neither the Purchase Bureau nor the Division of Taxation will provide for the photocopying of any materials contained in the Interview and Information Review Room. Proposers are permitted to bring photocopy equipment for the purpose of copying materials but may not be permitted, for confidentiality reasons, to copy all materials exhibited. No questions or inquiries regarding the substance of the RFP will be accepted or answered in the Interview and Information Review Room. All questions must be submitted in accordance with Section 1.6.1. Proposers should contact the following individual to arrange a specific review time, with initial visits limited to two hours per Proposer to permit fair access to all interested parties. Laura Cook New Jersey Division of Taxation E-mail: lcook@tax.state.nj.us Phone: 609-292-7288 Fax: 609-633-6201 1.6.5.2 Confidentiality and Non-Disclosure Agreement Proposers must sign the Confidentiality and Non-Disclosure Agreement (Appendix 1) prior to entering the Interview and Information Review Room. 1.7 1.7.1 Additional Information Revisions to this RFP In the event that it becomes necessary to clarify or revise this RFP, such clarification or revision will be by addendum(a). ALL RFP ADDENDA WILL BE ISSUED ON THE PURCHASE BUREAU WEB SITE. TO ACCESS ADDENDA THE PROPOSER MUST SELECT THE BID NUMBER ON THE PURCHASE BUREAU BIDDING OPPORTUNITIES WEB PAGE AT http://www.state.nj.us/treasury/purchase/bid/summary/bid.shtml. There are no designated dates for release of addenda. Therefore interested Proposers should check the Purchase Bureau "Bidding Opportunities" website on a daily basis from time of RFP issuance through Final Proposal opening. The Proposer is solely responsible for understanding and incorporating all addenda into its proposal. 1.7.2 Addendum as a Part of this RFP Addenda shall become part of this RFP and part of any contract resulting from this RFP. 1.7.3 Issuing Office The Purchase Bureau, Division of Purchase and Property is the issuer of this RFP. The buyer noted in Section 1.6.1 is the sole point of contact between the Proposer and the State for purposes of this RFP. 12 1.7.4 Proposer Responsibility to Meet RFP Due Dates No special consideration shall be given to information relevant to the Qualifications Proposal received after the due date for the Qualifications. Also, no consideration will be given to information relevant to the Final Proposal received after the due date for Final Proposals. By submitting Qualifications Proposals and Final Proposal(s), the Proposer represents that it has satisfied itself, from its own investigation, of all the requirements of this RFP and any and all addenda. 1.7.5 Cost Liability The State assumes no responsibility and bears no liability for costs incurred by Proposers before the award of the contract resulting from this RFP. 1.7.6 Contents of Proposal The entire content of every Proposer Qualifications response, Final Proposal response, and Price Proposal will be publicly opened and become a public record, notwithstanding any statement to the contrary made by a Proposer in its Proposer Qualifications and/or Final Proposal. All Proposer Qualifications responses and Final Proposal and Price Proposal responses, as public records, are publicly opened. Note that in this solicitation the public opening of Proposer Qualifications responses will take place on the date such responses are due and shall consist of announcing the names of the proposers and then making the Proposer Qualifications available for public inspection. The public opening of the Final Technical and Price proposals will take place on the date the Price Proposals are made public as shown in Table #1 (Section 1.6). Interested parties can make an appointment with the Purchase Bureau buyer to inspect proposals received in accordance with this schedule. Draft Proposals, minutes of Confidential Discussions, and any record of any negotiation after Price Proposal opening will not be available for public inspection until the Division issues a Notice of Intent to Award a Contract. 1.7.7 Price Alteration Prices in the Price Proposal must be typed or written in ink. Any price change (including "white-outs") must be initialed. Failure to do so may preclude an award being made to the Proposer. 1.7.8 Joint Venture If a joint venture is responding to the RFP, the agreement between the parties relating to such joint venture shall be submitted with the joint venture’s Qualifications Proposal. Authorized signatories from each party comprising the joint venture must sign the Qualifications Proposal, all Draft Proposals, and the Final Proposal. A separate Ownership Disclosure Form, Affirmative Action Employee Information Report, MacBride Principles Certification, and business registration must be supplied for each party to a joint venture. 13 2.0 DEFINITIONS The following definitions shall be part of any contract resulting from this RFP. Addendum(a) – Written clarification or revision to this RFP issued by the Purchase Bureau. Amendment – A change in the scope of work to be performed by the contractor. An amendment is not effective until it is signed by the Director, Division of Purchase and Property. BPPM – The Business Partner’s Project Manager. Browser-based, Thin-client Application Architecture – An application architecture in which a common browser (such as Microsoft Internet Explorer) is the application client, requiring minimal or no additional application software on the desktop. Business Intelligence (BI) User Categories: Basic BI User Role Category – Users who primarily require basic reporting functionality, are typically concerned with running standard reports and usually do not require much historic data. They will spend less than 25% of their normal work time using these tools. Examples of "Basic" users would include clerical staff, auditors and some technical support staff. Intermediate BI User Role Category – Users that periodically require the capabilities to invoke enhanced decision support analysis and merge data from different data sources. These users will spend up to 50% of their working time using these tools. Examples of "Intermediate" users would include caseworkers and their technical assistants, senior auditors and audit supervisors, some technical support staff and investigators. Comprehensive BI User Role Category – Users that require the capability to use ad-hoc OLAP (Online Analytical Processing) and statistical data mining tools. These users will typically spend more than 50% of their working time using these tools and in some cases as much as 70% of their working time. Examples of "Comprehensive" users would include some supervisors and their deputies and specialist analysts. Business Opportunity – Proposer-identified compliance initiative that utilizes internal and external source data to generate additional State revenue in an amount projected by the Proposer. May be developed as a Defined Business Intelligence Application. Business Partner – The Proposer awarded a contract, i.e., the successful Proposer. This term is synonymous with “Contractor”. Confidential Discussions – Meetings to be conducted by the State on an individual basis with Qualified Proposers to provide feedback on Draft Proposals in preparation for submission of Final Proposals. Contract – This RFP, any addenda, and the Proposer’s Final Proposal as accepted by the State. Contractor – The contractor is the Proposer awarded a contract. “Contractor “ is synonymous with “Business Partner”. COTS Software – Commercial Off-the-Shelf Software – Software that is sold commercially as a package, supported by maintenance services from a vendor, and designed to be table and parameter-driven to accommodate a variety of configurations without modification of the code. Defined Business Intelligence Application – A Business Opportunity as agreed upon between the Business Partner and the State. The exclusive source of funding for the TDW Project. 14 Director – Director, Division of Purchase and Property, Department of the Treasury. By statutory authority, the Director is the contracting officer for the State of New Jersey. Division – Division refers to the Division of Purchase and Property. Evaluation Committee – A committee established by the Director to review and evaluate proposals submitted in response to this RFP, and to recommend a contract award to the Director. May – Denotes that which is permissible, not mandatory. Opportunity Year – The 365-day period following the receipt by the Division of Taxation of the first revenue collected as a result of the implementation of a Defined Business Intelligence Application. Project – The undertaking or services that are the subject of this RFP. Project Sponsor – The State of New Jersey, Director of the Division of Taxation. Proposal: Qualifications Proposal – The response of a Proposer to the Qualifications Phase, detailing its qualifications to perform the Scope of Work. Qualifications Proposals will be evaluated and scored. Draft Proposal – The response of a Qualified Proposer to the Scope of Work, complete in all respects including cost and benefit worksheets and supplemental forms relating to each Business Opportunity, but excluding Price Proposals. Draft Proposals will be the basis for conducting Confidential Discussions, and the contents will remain confidential until the State issues a Notice of Intent to Award a Contract. Technical Proposal – The final version of the Draft Proposal. The Final Proposal excluding the Price Proposal. Final Proposal – The response of a Qualified Proposer to the Scope of Work, complete in all respects including both Technical and Price Proposals. Both Technical and Price Proposals will be submitted at the same time, but in separate sealed packages, and both will be evaluated and scored. The Technical Proposal will be evaluated prior to the opening of the Price Proposal. Proposer – A business entity submitting a proposal in response to this RFP. Proposer is synonymous with “potential Business Partner”. Qualified Proposer – A Proposer whose Qualifications Proposal has been evaluated, score and determined to qualify the vendor to submit a Draft Proposal. Request for Proposal (RFP) – This document, which establishes the bidding and contract requirements and solicits proposals to meet the purchase needs of the Using Agency as identified herein. Shall or Must – Denotes that which is a mandatory requirement. Failure to meet a mandatory requirement will result in the rejection of a proposal as materially non-responsive. Should – Denotes that which is recommended, not mandatory. Stakeholder – An individual, organization or constituency with a vested interest in the outcome of the TDW project. State – State of New Jersey. 15 State Deputy Project Manager – A person who will directly support the State Project Manager in all areas for the TDW project. State Project Manager – The person designated by the TDW Steering Committee to represent it and coordinate the participation of all State resources and oversee the Business Partner in the performance of TDW activities. Subtasks – Detailed activities that comprise the actual performance of a task. Task – A discrete unit of work to be performed. Tax Data Warehouse (TDW) Project – The subject of this RFP. TDW Project Team – State employees designated by the Director of the Division of Taxation to manage the TDW Project. Using Agency or Agency – The entity for which the Division has issued this RFP and will enter into a contract. For this procurement, the Using Agency is the Division of Taxation. Work Day (Business Day) – Monday through Friday, excluding official State Holidays. TDW Steering Committee – The group, chaired by the Division of Taxation, and designated by the Director of the Division of Taxation to oversee the TDW Project, and designate a State Project Manager. 16 3.0 3.1 SCOPE OF WORK Introduction This section provides important information concerning the functioning and organization of the Division of Taxation and the internal and external data sources currently used by Taxation. This section defines in detail the development, implementation and operational requirements of the TDW project. 3.2 3.2.1 Technical Program Information Division of Taxation Mission and Vision The mission of the Division of Taxation is to administer the State's tax laws uniformly, equitably, and efficiently to maximize State revenues, to support public services, and to ensure that voluntary compliance within the taxing statutes is achieved without being an impediment to economic growth. Taxation seeks to accomplish its mission through innovation, efficiency, teamwork, and a commitment to excellence. 3.2.2 Division of Taxation Activities The Division of Taxation administers laws that impose taxes and fees on: alcoholic beverages; cigarettes; corporations; landfill closure; litter control; public community water systems; solid waste services and spill compensation; gross income; insurance premiums; motor fuels; petroleum products; public utility excise; railroad property; sales and use; Atlantic City luxury and promotion; tobacco products wholesale; Cape May county tourism; casino parking; savings institutions; and transfer inheritance and estates. The Division of Taxation also administers three property tax relief programs: New Jersey SAVER rebate, the Homestead Rebate, and Property Tax Reimbursement (PTR) program. In Fiscal Year 2002, the Division of Taxation collected approximately $16.2 billion, with the largest revenue producing taxes being the Gross Income Tax, the Sales and Use Tax, and the Corporation Business Tax. The tax administration system relies primarily upon voluntary compliance by taxpayers. However, through a variety of compliance initiatives, the Division of Taxation assists the tax collection process. Of the $16.2 billion collected in FY 2002, $1 billion resulted from compliance initiatives that included: establishing contact with taxpayers, auditing tax returns and taxpayer books and records, and billing taxpayers based upon information provided on returns or to other governmental agencies. 3.2.3 Division of Taxation Organization The Division of Taxation is managed by a Director, appointed by the Governor with the advice and consent of the Senate. The Division of Taxation is divided into five functional activities: Audit, Compliance, Property Administration, Technical Support, and Technical Services. Each activity is further divided into branches, sections and units. An Assistant Director, reporting to the Deputy Director, heads each activity. Other major responsibilities reporting to the Director include: Office of the Chief of Staff; Office of Revenue and Economic Analysis, Office of Criminal Investigations, and Office of Director’s Counsel. For an organization chart and a detailed explanation of the work of the various functions, Proposers may review the Division of Taxation 2002 Annual Report in the Interview and Information Review Room or on the Division of Taxation website at http://www.state.nj.us/treasury/taxation. 3.2.4 Division of Taxation Objectives 17 In an effort to achieve its mission and vision, the Division of Taxation has defined the following objectives for the TDW Project: a. Increase Revenue Collected: Use Business Intelligence applications developed on the TDW platform that will: (1) Identify delinquent and deficient taxpayers; (2) Identify unregistered individuals and businesses whose business activity gives rise to New Jersey tax liability; (3) Improve and expedite audit selection processes; (4) Improve fraud detection in property tax relief programs and under the gross income tax. b. Increase Flexibility: Ensure that the TDW platform is extensible (can be expanded without redesign) and scalable to support other Business Intelligence functionality as new analysis objectives are identified. The intent is to establish a platform that will permit the Division to incorporate and effectively utilize any current and future source of information. c. Broaden Analytical Reach: Provide cost-effective access to other New Jersey State, Federal and commercial sources of data that directly support the Division of Taxation’s mission. d. Standardize Analytical Processes: Provide standardized tools and support aligned with the Defined Business Intelligence use role categories: Basic, Intermediate and Comprehensive. e. Improve Responsiveness: Ensure that Data tools and support are available when needed. f. Increase Integrity: Ensure that there are consistent data definitions and focused effort applied to data quality to improve accuracy and reduce confusion. g. Reduce Costs: Contribute to a significant reduction in the total cost of performing the Division of Taxation’s mission and meeting its obligations to taxpayers. 3.3 3.3.1 Current Systems and Technology Main Applications The Division of Taxation utilizes both individual and business taxpayer information maintained in various systems. Some of these were developed for the Division of Taxation and capture data from State and local tax records, and others contain data generated by State and Federal agencies and made available to the Division of Taxation. 3.3.1.1 State and Local Tax Records 3.3.1.1.1 TAXREG This system enables the Division of Taxation to capture, report and monitor taxpayer identification and profile information for both businesses and individuals on a totally consolidated basis. TAXREG is used to perfect identification data filed by taxpayers, mail tax returns and applications, identify taxpayers that have failed to file returns, and maintain all address information, and provide taxpayer relationships. The system maintains tax eligibility information for over 1 million businesses and 5 million individuals for more than 30 taxes and programs. The system generates over 50,000 online transactions daily. TAXREG is updated through processed returns, automated matches and from online system users. Mailings and reports are available for predetermined and ad hoc programs. Tax registration forms can be updated and supplied via a web interface. The system uses ADABAS on a State mainframe. 18 3.3.1.1.2 GENTS This system contains the detail return and monetary information for each tax necessary to accomplish taxpayer accounting. Online, real time updates allow caseworkers to immediately view the impact of their modifications to a taxpayer's account. GENTS is the source of batch and transaction edits, the generation of bills for underpaid periods and, in conjunction with TAXREG, is accessed for identification and notice of non-filing (delinquency). Other facets include fully automated interfaces with the other information systems, ad hoc reporting capabilities and overpayment identification and validation. GENTS handles average online transaction volumes of approximately 200,000 transactions daily. GENTS processes approximately 11.8 million returns and documents per year, and issues over 5 million checks and 1.6 million bills and notices. The system uses ADABAS on a State mainframe. 3.3.1.1.3 TULIPS This is the Division of Taxation's case tracking system used to provide caseworkers with a consolidated view of taxpayers' accounts, to generate notifications to taxpayers, and to provide management information reports regarding collection activity. TULIPS receives the majority of its information from GENTS for underpayments and TAXREG for failure to file. As these deficiencies and delinquencies are resolved, the information flows automatically to TULIPS to close or update cases. In addition to the normal collection efforts, other collection efforts such as bankruptcies, judgments, audits, etc. are controlled through this system. This consolidation of information allows for accurate prioritization of cases. The assignment of casework is handled through this system. Automatic case movement through some steps of collection is also accomplished through this framework. Collection from compliance enforcement activities processed through TULIPS was approximately $450 million last year. The system uses ADABAS on a State mainframe. 3.3.1.1.4 Property Tax System MOD IV is the State's property assessment system for parcel management and for the production of uniform municipal assessment rolls. This batch system stores data in flat files and was developed by a vendor over 20 years ago. Assessors in municipalities currently enter data into MOD IV to produce assessment rolls. Municipal data transactions include block and lot changes, ownership transfers, changes in the assessed value, added and omitted assessments, parcel splits, etc. MOD IV was originally designed to have assessors input forms in batch mode to update property assessment records. Over the past 20 years, vendors have created front ends to MOD IV to allow assessors to enter these transactions online. These transactions are downloaded nightly to the respective MOD IV data centers for processing through the MOD IV maintenance programs to update and maintain the approximate 3,000,000 line items, i.e., properties, in New Jersey. [This system is being replaced by the Property Assessment Management System (PAMS), a statewide, uniform, automated property tax assessment system, development of which is scheduled to begin in Spring 2004, with initial deployment 18 to 24 months later.] 3.3.1.1.5 Sales Ratio: SR1-A This is a statewide real property sales system. The Division of Taxation receives approximately 250,000 SR1-A transactions of real property sales annually from the 566 municipalities in New Jersey. Along with the MOD IV property tax file, the SR-1A data is used in the creation of the Table of Equalized Valuation that forms the basis for the distribution of State School Aid and County Tax Equalization. The system uses ADABAS on a State mainframe. 3.3.1.2 External Data Sources The Division of Taxation receives data generated by various State and Federal agencies as well as other miscellaneous sources. The data is processed through stand-alone, mainframe, PC and network-based applications to identify deficient and delinquent taxpayers, audit candidates and registration-related discrepancies. The data and the various applications are summarized below. 19 3.3.1.2.1 Internal Revenue Service The Division of Taxation receives various data extracts from the Internal Revenue Service for both individuals and businesses. The data extracts received annually include: Individual Master File and Individual Returns Transaction file (approximately 4.1 million records) Business Master File and Business Returns Transaction File (approximately 2.5 million records) Information Returns Master File (approximately 73 million records) CP2000 adjustments (approximately 80,000 records). Federal tax data are matched to New Jersey income tax data to identify potential delinquent taxpayers. Records selected at the mainframe level are processed through a network-based program to generate delinquency notices. Taxation maintains a network-based review, tracking and billing database for individuals that have been identified as Gross Income Tax audit candidates. Candidates are identified through the use of mainframe system downloads, Internal Revenue Service comparisons, neighboring states comparisons, etc. 3.3.1.2.2 Neighboring States The Division of Taxation receives yearly extracts from neighboring States totaling approximately 440,000 records. Taxation maintains a network-based review, tracking and billing database for individuals that have been identified as Gross Income Tax audit candidates. Candidates are identified through the use of mainframe system downloads, Internal Revenue Service comparisons, neighboring states comparisons, etc. 3.3.1.2.3 New Jersey Motor Vehicle Commission The Division of Taxation receives two quarterly extracts from the New Jersey Motor Vehicle Commission, one for casual sales (400,000 records in 2002) and one for registered dealer sales (780,000 records in 2002). The Division maintains a network-based review, tracking and billing database of all motor vehicle casual sales received from the Motor Vehicle Commission. A review and inquiry is made to verify that sales tax has been paid on the actual purchase price of the motor vehicle. During this verification, the NADA guide is used for reference. A notice of additional tax due is generated if it is determined that the value of the vehicle sold was underreported. 3.3.1.2.4 Casino Control Commission and the Atlantic City Casinos The Division of Taxation receives a monthly extract (200-400 records) from the New Jersey Casino Control Commission of all vendors newly registered to do business with Atlantic City casinos. The Casino Control Commission also sends a yearly extract of all registered vendors. Taxation maintains a network-based review and tracking database of all registered casino vendors as provided by the Casino Control Commission. A review and inquiry is made to verify that all New Jerseybased registrants are properly registered. A notice is generated through a network-based program for all taxpayers that are not properly registered. Taxation maintains a network-based review and tracking database for businesses that have been identified as nexus candidates. Candidates are identified through the use of mainframe system downloads, external files (Customs, Casino Control Commission for non-New Jersey based businesses), etc. The Division of Taxation receives W2G (gambling winnings) information from the Atlantic City casinos. 20 3.3.1.2.5 Customs The Division of Taxation receives quarterly extracts containing commercial Customs imports (non passenger) from the U.S. Department of Homeland Security. Since the first extract for the first quarter of 1994 through the second quarter of 2003, the Division of Taxation has received a total of 7,445,608 records. There were 428,174 records for the second quarter of 2003. Taxation maintains a network-based review, tracking and billing database for individuals who have been identified as owing Use Tax through the Customs extracts. Taxation maintains a network-based review and tracking database for businesses that have been identified as nexus candidates. Candidates are identified through the use of mainframe system downloads, external files (Customs, Casino Control Commission for non-New Jersey based businesses), etc. 3.3.1.2.6 New Jersey Alcoholic Beverage Control and Alcoholic Beverage Wholesalers The Division of Taxation receives a monthly extract of all registered retail licensees from the New Jersey Division of Alcoholic Beverage Control. The extract for December 2002 contained 9,789 records. On an annual basis, these license holders are reviewed to determine whether a tax clearance certificate should be issued. License holders who are deficient or delinquent are issued a notice showing all outstanding items. A license holder’s failure to satisfy any sales tax liabilities results in the license being held. New Jersey registered alcoholic beverage wholesalers are required to make a yearly report summarizing dollar sales to all alcoholic beverage retailers during the calendar year. For 2002, there were 134 wholesalers who reported a total of 73,259 records for 8,577 retailers. On an annual basis, the Audit Selection group summarizes the wholesaler data by retail licensee, compares the purchase amounts to various tax return data and selects potentially underreporting retailers for audit. 3.3.1.2.7 Federal Aviation Administration The Division of Taxation pays for a monthly list (currently paper, electronic is available) showing transfers of ownership of aircraft that have potential New Jersey tax consequences. 3.3.1.2.8 Credit & Bankruptcy Reporting Agencies The Division of Taxation pays for access to a credit reporting (Experian) and a bankruptcy reporting agency (Pacer) for use on an as-needed basis. 3.3.1.2.9 Dun & Bradstreet The Division of Taxation pays for online access to the Dun & Bradstreet (D&B) database. 3.3.1.3 Other Applications and Reports 3.3.1.3.1 Fraud Detection Profile Four years ago, Taxation initiated a program to identify fraudulently filed Homestead Rebate applications. The success of the current program has been dependent upon the Division of Taxation’s ability to determine consistencies among fraudulently filed applications and thereafter to establish criteria based on this information to identify other potentially fraudulent applications out of the approximately 1.5 million 21 rebates processed annually. In addition to taxpayer identification information, data captured from the Homestead Rebate application include, filing status, exemption status, homeowner/tenant status, gross income and amount of property tax and/or rent paid. 3.3.2 Division of Taxation Technical Infrastructure 3.3.2.1 Network The network infrastructure consists of a VLAN on each of the upper nine floors of the Taxation Building with DHCP capability (currently pending implementation) and connectivity to a gigabit fiber optic backbone. Connectivity to the individual workstations is through CAT5 wire in star topology. The network server configuration currently consists of a Novell file/print server; two GroupWise e-mail servers, an application and SQL server, and four Citrix servers. Connectivity to the Citrix servers is through the Garden State Network with access through the Office of Information Technology (OIT) remote dial-in facility. As a part of a NOS migration to Windows 2000, scheduled for completion by December 2004, the network server configuration will be upgraded to include a Windows 2000 server and Exchange 2000 server. These will be connected to a SAN for all document storage, two domain controllers (primary and backup), print server, Norton server, SMS server, and a Veritas server. In addition to the Taxation Building, domain controllers will be installed in seven remote offices providing network services to each of the thirteen remote sites located throughout the state. Connectivity to the Taxation Building is through the Garden State Network. 3.3.2.2 DESKTOP ENVIRONMENT The Division of Taxation has approximately 1,250 desktop PCs in thirteen locations throughout the state and two additional offices in Chicago, IL and Anaheim, CA. The configuration of the desktop hardware includes PCs with Pentium processors ranging from 333 MHz-2.6 GHz, 128 MB-512 MB RAM and a 4 GB-40 GB hard drive. The operating system is currently Windows 95/2000 with a full network/desktop migration to Windows 2000 scheduled for completion by December 2004. Other standard software currently includes: Novell Client for Windows 95/98/2000 GroupWise 5.5 Client MS Office 97/2000 Attachmate Extra! Bundle for TCP/IP MS Internet Explorer FileNet Image Display for Windows As a part of the migration to Windows 2000, the Novell Network and GroupWise client will be replaced with MS Exchange/Outlook 2000 and FileNet access will be solely browser-based through Microsoft Internet Explorer (IE). 3.4 Future Vision The objectives set forth in Section 3.2.4 articulate the Division of Taxation’s future vision that anticipates the TDW Project as a successful strategy in responding to operational obstacles. 22 3.4.1 Current Operational Obstacles The TDW will provide a platform permitting flexibility in accessing external and internal data sources thus allowing more efficient review of the data, resulting in improved tax compliance and enhanced analysis and reporting. 3.4.1.1. Improve Tax Compliance Taxation consistently attempts to verify the accuracy of reported tax liability and the potential gaps between reported and actual liability. Figure 1 illustrates the relationship between various populations by their tax status. While the diagram is not drawn to scale and the relative size of the various shapes is not representative of the relative proportions involved, the diagram does illustrate the intersections and overlaps of these populations. Figure 1. The relationship between those that should and those that do pay Registered All Filers UnderReporters Deficient Payers Incompletely Registered All Taxpayers Correlation between tax registration/return records and other State, Federal and commercial information has been shown to provide invaluable information where specific exercises have been conducted in the past. In some cases, such correlation can be relatively simple and achieved with small data volumes. In other cases, these correlations will produce results only when significant volumes from a variety of sources have been evaluated through data mining. In either case, the Division of Taxation must initiate system development efforts to support such exercises. These developments are expensive, time consuming and are not re-used. 3.4.1.2 Enhance Analysis and Reporting Ability to access existing tax records outside of operational reporting is limited and requires programming with associated significant lead times. This impacts the Division of Taxation’s management of its many activities and processes. 23 3.4.2 Future Architecture Vision The Division of Taxation envisions its needs to be best addressed by a Data Warehouse and Business Intelligence Architecture (DW/BI Architecture). Figure 2 is an overview of a suitable architecture. This architecture is designed to not only consolidate data that originates in “stovepipe” operational applications, but also to simplify the definitions and to clarify the meaning of data flowing to these repositories, thus increasing its business value. Success, as measured by enterprise-wide information sharing, requires metadata management, data lineage tracking, audit trails, security policies, data quality procedures and impact analysis functionality. Figure 2. Overview of a suitable DW/BI Architecture Operational Systems OLTP App. OLTP App. State Data Federal Data External Data Transformation, Integration and Cleansing ETL Tools Subject A Data Warehouse Subject B Subject C DBMS Products Enterprise BI Suite Periods Logical View Metrics Data Mart Data Marts Enterprise BI Suite End Users 3.4.3 TDW Project Scope The project scope necessitates the construction, implementation and operation of the TDW that will achieve both the project objectives (Section 1.4) and the objectives of the Division of Taxation (Section 3.2.4). The Business Partner will provide all hardware, software and system integration services necessary to implement the TDW, and to allow the transfer of its operation to the Division of Taxation. Software must be flexible and capable of being configured to meet the specific needs of the Division of Taxation. Software may include Commercial Off-the-Shelf (COTS) software, software that is in development, software that will be developed, or any combination thereof. The Business Partner must initially finance the costs of the TDW project, agreeing to a delay in payment of project costs until the Division of Taxation realizes additional revenue from the implementation of Defined Business Intelligence Applications. The Business Partner will share in the financial risks and rewards of the TDW project. The Business Partner must estimate the increase in State revenue to be generated from the implementation of each Defined Business Intelligence Application. The Business Partner’s estimate of additional revenue, 24 exclusive of interest and penalty, will be the benchmark against which TDW project costs will be paid by the State. If the additional State revenue collected in any Opportunity Year is less than 75% of the Business Partner’s estimate, the Business Partner will be compensated in an amount less than its quoted price. Payment to the Business Partner will be reduced by a defined percentage. The percentage reduction is defined as a decreasing amount over the multi-year term of any Defined Business Intelligence Application as set forth in the Final Proposal Price Proposal Form (Section 7.0). If the additional State revenue collected in any Opportunity Year is equal to 75% and less than or equal to 125% of the Business Partner’s estimate, the Business Partner will be compensated its quoted price, without reduction or premium. If the additional State revenue collected in any Opportunity Year exceeds 125% of the Business Partner’s estimate, the Business Partner will receive its quoted price plus a premium. The premium is calculated at a specific percentage multiplied by the difference between the Business Partner’s estimate and 1.25 times the estimate. The percentage premium is defined as an increasing amount over the multi-year term of any Defined Business Intelligence Application as set forth in the Final Proposal Price Proposal Form (Section 7.0). The State reserves the right to use the TDW, both during and after the term of the contract, to pursue opportunities for increased revenue not identified by the Business Partner, so long as such pursuit does not interfere with the pursuit of Defined Business Intelligence Applications. Such State-identified opportunities will not be subject to gainsharing with the Business Partner. The Division of Taxation will tag and track collections from individual cases that have been identified solely through the implementation of Defined Business Intelligence Applications, commencing with Opportunity Year One. The Division of Taxation will advise the Business Partner of collections on a calendar monthly basis to permit invoicing by the Business Partner. 3.4.3.1 DW/BI Architecture The Data Warehouse/Business Intelligence Architecture includes: DW/BI extensible architecture design to support both proposed work and future needs including a methodology for staged implementation Enterprise Data Warehouse data models with subject areas developed in stages to support the staged implementation of this architecture, both derived from and feeding into the enterprise logical data model, and representing a “single version of the truth” for data that will be delivered to the TDW Star schema data models to represent the logical views of data required by the Division of Taxation in the TDW The infrastructure, hardware and software products required to implement this architecture Technical and end-user support of the DW/BI architecture Documentation and training of State staff to allow State staff to independently provide on-going support of the DW/BI architecture. The Data Warehouse/Business Intelligence Architecture excludes a comprehensive and detailed enterprise data model, but the Enterprise Logical Data Model will be enhanced by subject area models developed for this project 25 3.4.3.2 Defined Business Intelligence Applications The TDW Project Business Intelligence Applications include: Identification and agreement as to which Business Opportunities can be placed into development. These will be known as the “Defined BI Applications” Detailed requirements definition for the Defined BI Applications Data required to support the Defined BI Applications Design, development and implementation of the defined BI Applications Documentation and training of State staff that will allow State staff to independently provide ongoing support of the Defined BI Applications. The TDW Project Business Intelligence Applications exclude: Design of any BI applications not included in the “Defined BI Applications” Any data other than that required for the “Defined BI Applications”. 3.5 3.5.1 System Requirements Technical Requirements 3.5.1.1 General To provide for current and future needs and fit with DW/BI industry best practices, the Division of Taxation anticipates the proposed technical architecture to have the characteristics described below. Where a Proposer proposes a technical architecture that does not have these characteristics, the Proposer must explain how its architecture and approach meet the Division of Taxation's requirements. 3.5.1.2 TDW Infrastructure Ownership and Management The TDW will be operated on a server infrastructure that will be owned by the State and will reside within the offices of, and be managed by, the State of New Jersey. 3.5.1.3 Data Acquisition 3.5.1.3.1 Extract, Transformation and Loading (ETL) Data extracts from operational systems and other sources, transformation and loading shall be achieved using commercially available tools. The State’s preferred and supported Extract, Transform and Load (ETL) solution is DataStage from Ascential. For proposals that will use DataStage, the Proposer must determine and include in its proposal any required expansion of the State’s existing infrastructure capacity to meet TDW needs. Proposals with alternate ETL platforms must include, in the Technical Proposal, the additional costs, the training and the proposed benefit that will accrue to the State from utilization in this project of an alternative tool. The frequency and periodicity of the source data to be brought through the Enterprise Data Warehouse (EDW) shall be determined by business requirements identified by the State. The scheduling of updates to staging, warehouse and data mart databases will be at different times, based upon these business requirements. For example, data may be loaded into staging daily, updated into the warehouse weekly, and delivered to a summary table in a data mart monthly. Data may represent incremental additions to existing data, update and insert. The proposal must include a description of the data acquisition processes and anticipated level of State effort that will be required to execute these processes. 26 3.5.1.3.2 Data Quality Functions Functions designed to uncover data quality issues and/or cleanse data shall be achieved where possible using commercially available tools. The State’s preferred and supported Data Quality solution is Integrity (QualityStage) from Ascential. For proposals that will use Integrity, the Proposer must determine and include in its proposal the expansion of the State’s existing infrastructure capacity to meet TDW needs. Proposals with alternate quality platforms must include in the Technical Proposal, the additional costs, training and the proposed benefit that will accrue to the State from utilization in this project of an alternative tool. 3.5.1.4 Data Management 3.5.1.4.1 Persistent Data Structures Layers of persistent data storage targeted at multiple applications must adopt an application-neutral approach to data structure design and involve minimal compromises from the “pure” “third normal form” of the logical data model. Those layers of persistent data storage targeted at single applications and limited usage can adopt a greater degree of compromise from the “pure” “third normal form”. 3.5.1.4.2 Database Management System Persistent data storage at the data warehouse and data mart level must be provided by a widely used, commercially available relational database management system (DBMS). The State’s preferred and supported strategic DBMS solution is Oracle. For proposals that will use Oracle, the Proposer must determine and include in its proposal the expansion of the State’s existing infrastructure capacity to meet TDW needs. Proposals with alternate DBMS platforms must include in the Technical Proposal, the costs, training and the proposed benefit that will accrue to the State from utilization in this project of an alternative tool. Any dependent data mart tables must either be stored in the same RDBMS environment or on SQLcompliant data appliances. 3.5.1.4.3 Data Modeling The State’s preferred and supported data modeling (to document, locate and reuse data) solution is Oracle Designer. For proposals that will use Oracle Designer, the Proposer must determine and include in its proposal the expansion of the State’s existing infrastructure capacity to meet TDW needs. Proposals with alternate data modeling platforms must include in the Technical Proposal, the costs, training and the proposed benefit that will accrue to the State from utilization in this project of an alternative tool. 3.5.1.4.4 Metadata Management Where the proposed architecture shares metadata including data models, definitions and quality information this shall be provided by a widely used, commercially available metadata management tool or repository. 27 The State’s preferred and supported metadata management solution is MetaStage from Ascential. For proposals that will use MetaStage, the Proposer must determine and include in its proposal the expansion of the State’s existing infrastructure capacity to meet TDW needs. Proposals with alternate metadata management platforms must include in the Technical Proposal, the additional costs, training and the proposed benefit that will accrue to the State from utilization in this project of an alternative tool. 3.5.1.4.5 Relationship to the State of New Jersey Common Data Architecture (NJCDA) The State has created a Common Data Architecture (NJCDA), including a staged Enterprise Data Warehouse and Enterprise Logical Data Model, to guide management of data within the State. This is presented in Figure 3 below. 3.5.1.4.5.1 Clarification for the Proposer The Division of Taxation requires that the TDW be developed as part of a flexible data-warehousing framework that will facilitate future expansion of its data warehouse deployment. Several of the data sources identified as being potentially valuable for the TDW are from other New Jersey State agencies (e.g., the Department of Labor and the Motor Vehicle Commission). The NJCDA (outlined in the following section) provides a suitable framework and potentially low cost access to this intra-State Agency data. The Taxation Data Warehouse (TDW) supporting the TDW may be co-located on the same platform as the TDW, or may be hosted in the existing NJ EDW environment as a separate, secure subject area. If co-located on the same platform as the TDW, the TDW must still be designed consistent with the NJ Common Data Architecture, using conforming dimensions where available. 3.5.1.4.5.2 Description of the NJCDA 28 Figure 3. New Jersey Common Data Architecture The NJCDA provides a robust, scaleable data warehousing environment that consists of the following: A staging database to store source data at a granular level in the format of the source system prior to loading into the EDW; an EDW database to persistently store cleansed data at a granular level with a time dimension in Warehouse Normal Form in the EDW, using conforming dimensions; a data mart database to represent data in Star Schema Form in the data marts, with the data marts dependently derived from the EDW and using conforming dimensions; near-line management of dormant, unused or infrequently accessed data. These components are not single physical entities; they are virtual in their functionality. Each of these components can be co-located within a common infrastructure, or distributed to meet the needs of the business. The staging area data storage design shall reflect, as close as possible, the format and structure of the source systems. The Taxation Data Warehouse shall be designed in warehouse normal form (WNF), which shall be based upon an agency-wide third-normal form (3NF) logical data model that is derived from the statewide logical data model. Data marts shall be designed in star schemata wherever possible, and snowflake schemata where not possible. Proposers are encouraged to review the publications of OIT in the Interview and Information Review Room for further discussion of the New Jersey Common Data Architecture. 29 3.5.1.5 BI Tools Requirements Use of common tools across departments to perform BI analysis is important. However, it is not anticipated that all needs can be met by a single BI toolset. BI users can be classified within BI "roles" indicating the level of use they will make of BI tools in the accomplishment of their work. The Division of Taxation seeks a solution where the data, definitions and metrics are common across all roles and users and where tools are differentiated by role regardless of organizational unit. 3.5.1.5.1 BI User Role Categories The user role categories "Basic", "Intermediate" and “Comprehensive” are defined in Section 2.0. 3.5.1.5.2 "Basic" User Role Requirements Standard menu of reports available Reports available that are generated only by exception conditions Alerts communicated when exception conditions occur Ability for users to generate simple queries from tables and views. Simple queries will access the data warehouse using point-and-click techniques or "pull down" menus to select aggregated or summarized indicators or measures from the data warehouse or data mart as appropriate. The simple query will present data as charts, graphs, reports, or a combination of each. Ability to save queries for future use by the individual or other users Proficiency in the use of these tools achieved with training of fewer than 8 hours in any year 3.5.1.5.3 "Intermediate" User Role Requirements All the "Basic" functions plus: Templates to build basic reports and adaptations of basic reports for their own use or for use by "Basic" users Ability for users to generate queries of moderate complexity (including table joins) from tables and views and will have available in the query response all the underlying data which constructed the response for drill-down and analysis Ability to save queries for future use and to utilize symbolic parameters in these queries that can be modified at run time to increase the scope of what can be achieved in this way Proficiency in the use of these tools achieved with training of fewer than 16 hours in any year 3.5.1.5.4 "Comprehensive" User Role Requirements All the "Intermediate" and "Basic" functions plus: A full set of complex query (OLAP) capabilities with data viewed as a multi-dimensional matrix ("cube") where data can be selected into slices or increasing levels of detail using "drill-down". Complex queries will most often require off-line, overnight, or multiple night batch processing to complete. Data mining and statistical analysis Proficiency in the use of these tools, the latest updates and techniques, achieved with training of up to 40 hours in any year 3.5.1.5.5 Reports Reports represent system-generated output that is intended for in-house use. This output may be stored on a report server for online access, printed, or exported to a desktop application such as MS-Excel. System users must be able to access only those reports that pertain to their segment of the data and must not be allowed to access data beyond their level of security. The TDW must be capable of 30 producing print extract files that can be transmitted to a vendor for printing. The design of the reporting module must allow the State to easily add or remove production reports. The State requires a three-tier reporting capability: Routine Reporting: Certain production reports will be run automatically on a job schedule, and the results will be accessible online until the next scheduled execution. The results will be stored on a server, and may be printed locally, viewed online with scrolling capability, or downloaded to a spreadsheet. For printing, a portion of the report output may be selected. By Request Reporting: Certain production reports (possibly overlapping with the above group) will be available for execution as requested. These reports will allow user-supplied selection criteria, such as when the report is run, what date range is covered, geographical area (statewide, region, or office), or property characteristics. The results may be printed locally, viewed online with scrolling capability, or downloaded to a spreadsheet that can be saved locally. Ad Hoc Reporting: Ad hoc reporting capability whereby users can create their own, customized reports. 3.5.1.5.6 General Reporting Requirements Provide print and online preview capabilities. Provide report-writing capabilities that support the use of format, text type/fonts, screen grid designs, and illustrations to enhance the visual display of information. Provide multiple pre-defined report types and formats (templates) that are easily selected by users. Provide the ability to import, export and manipulate data files into or from spreadsheet, word processing and database management tools as well as the database(s). Note that the intended use of this function is only to manipulate and merge query results for analysis. It is not intended to update the database. Provide page-formatting features for creating presentation quality reports. Complex reporting format available that allows reports to have data organized and displayed in columns across the page alongside data organized and displayed by row. Provide the capability to indicate header information, date and run time, and page numbers on reports. Header information must also include the capability to add titles and permit the end-user with the ability to include short notes and/or explanations in reference to the report. The end user must also be provided with the ability to provide headings and descriptions for integral segments of a report. Provide the capability to segregate and subtotal data, and define page breaks based upon userdefined parameters within reports. Provide calculation capabilities, including summary values and derived fields. Provide simple and complex cross-tabulation. Provide for subtotaling and grand totaling. Provide report-editing capabilities, meaning that users can apply aggregate functions (for example, sum, average, count, minimum, maximum). 3.5.1.5.7 General Query Tool Requirements Provide a user-friendly, online interface suitable for specifying query selection criteria (data element-specific), sort, and format (display) characteristics. Allow user-developed queries that access the full range of data available across the database(s), down to raw data elements. Provide the capability to estimate the query processing time; to pre-define a maximum query processing time for online, background, and overnight processed requests; and to display the estimated processing time to the requester. 31 Provide the capability to process queries either online, in the background, or overnight depending on the amount of data and the complexity of the query. The Proposer shall describe in the proposal the approach to be used to determine whether the query will be processed online, background, overnight, or multiple nights. Notify individual users who input queries that processed in the background or overnight of the completion of those queries. If the user is not online at the completion of processing of the query, the message should appear when that user next logs on to the system. The Proposer may propose the use of e-mail for this notification. Provide the capability for automatic and manual termination of queries that exceed State predefined processing time thresholds. Provide options to select query output to be displayed online, in a formatted hard-copy report, or downloaded to disk for PC-based analysis. Support simple stratified and systematic random sampling. Provide the capability to duplicate query report characteristics (for example, elements requested, report format, data limits) from one request to another. Capture the user ID for each query and store the processing time, by user ID, of the query. This information must be summarized and reported on a monthly basis in order to describe the use of the system by individual, work group, and level of user; the CPU time; and the frequency of use of history data in twelve (12) month increments. Provide the capability to pre-process or edit a user-developed query to determine if the selected reporting parameters need to be changed to improve the efficiency, correctness, or time frame for the extraction effort. Allow the user to change the report parameters based on findings and resubmit. Provide users with the capability to view and monitor the progress of extended online or batch queries, for example, by displaying a percentage complete status. Users shall be able to access and use other applications concurrent with the extended query processing. 3.5.1.5.8 3.5.1.5.8.1 State Standards Data Mining and Statistical Analysis The State’s preferred and supported Data Mining and Statistical Analysis platform is the DataMiner suite from SAS. For proposals that will use DataMiner, the Proposer must determine and include in its proposal any required expansion of the State’s existing infrastructure capacity to meet TDW needs. Proposals with alternate data mining and statistical analysis platforms must include in the Technical Proposal, the additional costs, training and the proposed benefit that will accrue to the State from utilization in this project of an alternative tool. 3.5.1.5.8.2 Business Intelligence and Reporting The State’s preferred and supported Business Intelligence platform is the Business Objects Enterprise; for formatted reporting embedded within applications, the State supports Crystal Reports from Business Objects. For proposals that will use Business Objects, the Proposer must determine and include in its proposal any required expansion of the State’s existing infrastructure capacity to meet TDW needs. Proposals with alternate business intelligence and reporting platforms must include in the Technical Proposal, the additional costs, training and the proposed benefit that will accrue to the State from utilization in this project of an alternative tool. 3.5.1.6 Browser-Based Solution The State requires a browser-based solution, and prefers a thin-client architecture. If a business objective cannot be met with a purely thin client model, these instances should be clearly identified along with methods to manage them on an ongoing basis. In that case, the State prefers to automate the software distribution process to the extent possible using tools such as Web Start. A thin-client architecture for BI 32 is defined as one utilizing a browser with minimal processing and storage requirements. The application at the client will use only JavaScripts and Dynamic Hypertext Markup Language (DHTML); no “plug-ins” are needed. 3.5.1.7 Hardware, Software and Network 3.5.1.7.1 Scalable and Multi-Platform Solution The Proposer must provide a scalable solution that is capable of functioning across a multi-server platform. The system must use TCP/IP protocols. The State currently uses Oracle as its strategic relational database management system (DBMS). The system availability must be structured for 24-hour x 7 day x 365 days. A maximum recovery time per outage of 4 hours is acceptable following the implementation of each Defined Business Intelligence Application. Any more than two (2) outages of more than 30 minutes each in any given month will be unacceptable. The most critical time of availability is between 8 a.m. and 5 p.m., Monday-Friday, excluding State holidays. Preventive maintenance, application upgrades, and DBMS upgrades shall not be performed during this time. The solution must have the capability to incrementally add users, concurrently querying the database, without degradation to performance and response times. 3.5.1.7.2 User Devices All end users of the application will interface to the application through desktops using Intel-based 32-bit platforms that run Windows-based operating systems. For web-based functions, users must interface to the system through the web browser, Microsoft Internet Explorer. The use of widely accepted industry plug-ins such as Real Player, Adobe Acrobat Reader, or QuickTime, are acceptable, but non-standard plug-ins and extensions may not be technically compatible with the existing infrastructure. 3.5.1.7.3 E-mail Interface The TDW must be capable of integrating with widely accepted, industry open-standard e-mail solutions. The Division of Taxation is currently using Novell GroupWise but migrating to Exchange Outlook within one year (Section 3.3.2.2). 3.5.1.7.4 Server Requirements Proposers are required to propose separate servers for each environment (testing, training, etc.). Servers must meet existing minimum standards established by OIT. OIT will provide the then current standards during contract negotiations. 3.5.1.8 Performance Requirements 3.5.1.8.1 Number of Users The table below shows the expected breakdown, by role category, of new users added each year. Role Category Basic Intermediate Comprehensive Total Year 1 261 36 9 306 Year 2 261 36 9 306 Year 3 261 36 9 306 Total 783 108 27 918 3.5.1.8.2 Response Time 33 The TDW shall provide the capability to process Simple, Complex and Very Complex queries. Queries may be processed either online, in the background or overnight depending on the amount of data and the complexity of the query. The TDW must provide responses to all queries within reasonable time frames. The Proposer may determine that multiple nights of processing are required in unusual situations where the query is so complex that data extraction would occur one night, and queries on the extracted data would run the next night. The Proposer shall describe in the proposal the approach to be used to determine whether the query will be processed online, background, overnight, or multiple nights. It is preferred that queries requiring overnight processing should instead be pre-processed into temporary data marts. The Proposer shall facilitate joint application design sessions to identify the existence of such extreme ad hoc processing requirements, and create a data mart solution that minimizes the runtime processing required to produce the desired data set. The complexity of a query depends in part on the number of joins, but is heavily dependent on such parameters as sub-queries, the manner of the joins and the use or disabling of indices. These can be influenced by the use of SQL functions or ranges in selection criteria. Simple Queries will access the TDW using point-and-click techniques or “pull down” menus to select aggregated or summarized indicators or measures from the data warehouse or data mart as appropriate. The Simple query will present data as charts, graphs, reports, or a combination of each. The aggregation or summarization rules and data subsets will be predefined and will consist of no more than 3-way table joins of major entities. The range of data presentation choices or drill-down capabilities will be limited by those predefined rules. Complex Queries will generally be initiated by staff who work in program management or policy development with a great deal of program knowledge but limited technical knowledge of databases and query languages (“intermediate or comprehensive user role”). Complex Queries will include the following: Routine queries that select from a menu of data items, time periods, and query functions; Request execution of pre-existing queries stored in a library; and/or Modification and execution of an existing query from the library. The Complex Query will consist of four to seven table joins of major entities and will have available in the query response all the underlying data which constructed the response for drill-down and analysis. Very Complex Queries will be generated by the technically proficient user who will have a solid understanding of the data, skills in using data extraction software, and moderate technical training (“comprehensive user role”). Very complex queries are the most complex queries and those requiring the greatest access to the data element/attribute level in the data warehouse and will consist of more than seven table joins of major entities. Very complex queries will most often require off-line, overnight, or multiple night batch processing to complete. 3.5.1.8.3 Performance Monitoring The Proposer is required to provide a methodology and capability for monitoring the usage of the TDW, including what data tables are being utilized in order to better meet end-user needs. This capability is needed to allow efficient modifications in the future as well as informing the State when duplicate research is being conducted. The State will use this information to determine if a reduced amount of history or removal of dormant data would be feasible. This could result in increased efficiencies, reduced response times to queries, or other enhanced capabilities. During operations, the State expects that the Business Partner will be a partner in assisting the State in considering options that might be to its advantage and in making plans for any enhancements to pursue in the future. Data such as this will be invaluable to future decision-making. 34 3.5.1.9 Security and Audit The information communicated by the TDW is sensitive and confidential. The TDW shall include a security system for the protection of the TDW from intentional, unauthorized access attempts as well as security breaches due to accidental causes. The Division of Taxation has defined a number of security requirements in this section, but expects the Proposer to exercise due diligence in proposing and designing the TDW to provide a system that complies fully with all applicable state and federal requirements on security. Proposed federal regulations regarding privacy of revenue and tax information may affect the TDW system security requirements. Note that the Internal Revenue Service (IRS) has requirements regarding the confidentiality of IRS data and how it is used. The Proposer must work with the Division of Taxation early in the development process to ensure that IRS security requirements are met during design of the TDW. 3.5.1.9.1 Access Control The TDW must secure stored data against unauthorized access at the data item, record, database and transaction level. The TDW must control and secure application programs and system software from tampering or unauthorized access. The TDW must limit access to ad-hoc report generation programs to authorized users only. 3.5.1.9.1.1 Compartmentalized Access The TDW system security must be integrated into the application to limit the menus, screens and functions (e.g. inquiry or update) authorized to individual users. Once a user has accessed the system, security system controls must limit access to only the specific data or data types authorized for the user. 3.5.1.9.1.2 Identification, Authentication and Authorization The TDW system security must include the following: Single sign-on such that a single identification and authentication permits the user all authorized accessed and prevents all unauthorized accesses. Each authorized user must be assigned a unique log-on identifier. The logon ID must permit access to the system only in combination with a valid password or other secondary access control mechanism. Log-on to more than one session per person must require a Division of Taxation system administrator authorization [C2 level security]. Security must automatically restrict an individual to one log-on location at a time [C2 level security]. Users must be automatically logged-out after a table-defined inactive time [C2 level security]. Logon suspension must occur after a table-defined number of access attempt failures [C2 level security]. Passwords must expire with an adjustable passage of time. Security should prohibit password reuse against a history of previously used passwords for a table-defined number of intervals. 3.5.1.9.1.3 Security Administration The TDW system security must provide online means to assign, update, or remove access and authorization privileges for individual users: Security must prohibit all but authorized users access to the security system. 35 The security system must allow for multiple levels of security. The security system must support local security administration, as well as centralized security set-up. The levels of the application system security must be changeable only by the designated management staff. Security should be designed to permit an authorized non-technical user to manage security and serve as the security officer. (Security administration should not require the assistance of technical specialists such as programmers.) Encryption of passwords moving throughout the network must be provided [C2 level security] 3.5.1.9.2 Message Transmission Protection The TDW must limit access to services to authorized systems and transactions. The TDW must secure message transmission throughout the system. The Proposer should provide a trade-off analysis during detailed design that describes the costs and benefits of alternative methods of securing message transmissions and make a design recommendation subject to Division of Taxation approval [IEEE 12207.1 4.2.3]. 3.5.1.9.3 System Failure Recovery The Proposer must provide a System Failure Recovery Plan to protect the TDW system data through backup and recovery procedures from the consequences of system failure. The TDW must have the capability of performing backup and recovery of its functionality and data. 3.5.1.9.3.1 System Integrity In the event of a single TDW system network failure, all in-transit messages must be delivered to safe storage. 3.5.1.9.3.2 Data Backup and Recovery The Proposer must provide a backup and restore process for the TDW databases that will be simple, economical, certain, and not adversely impact the system availability requirements. Backup and restoration of the TDW system residing on local servers should not require operator intervention at the local site. 3.5.1.9.3.3 Restoration The TDW must have the capability of restoring operation following a non-disaster system failure. The TDW must provide selectable options for either automatic or manual notification of system recovery. Automatic system recovery notification should include among others, remote pager and e-mail. The restart capability must include: a. Restoration of all system files to their state of completion as of the last fully processed transaction. b. Restoration of databases to their state of completion as of the last fully processed transaction. c. Restoration of internal databases to the state they were in before the failure. d. Restart of communications and associated applications. e. Broadcast a notification to all active devices that the TDW system is operational again. 3.5.1.10 Disaster Recovery 36 The Proposer shall provide a disaster recovery plan as part of its proposal but it should be shown separately costed as a State option. The actual cost is to be provided only in the Proposer’s Draft and Technical portion of its Final Proposals. 3.5.2 Illustrative Functional Requirements The Division of Taxation has identified potential opportunities for revenue generation across various tax categories. This list is available in the Interview and Information Review Room. The list is not exhaustive, nor does it represent specifically required functionality. Instead, it is an effort to identify potential Business Opportunities that could be supported by the TDW, along with related information regarding potential benefit size and source data. Proposers should use this information to help identify their proposed data mart functionality, phasing, and revenue expectations. 3.5.3 Implementation Requirements 3.5.3.1 Project Management 3.5.3.1.1 Key Personnel The Division of Taxation expects a significant number of the Proposer’s personnel assigned and present during the project to be experienced, key personnel who were involved in prior projects listed within client references. Proposer personnel selected to work on the project must have their qualifications reviewed and approved in advance by the Division of Taxation. The Division of Taxation is especially concerned about the amount of Proposer staff turnover during the course of this project and is interested in specific methods and procedures to be employed by the Proposer to ensure that such turnover has minimal impact on the project. Key personnel commitments (including subcontractor personnel) identified in a Proposer’s Final Proposal shall be considered mandatory for the work performed under this RFP. Staffing must include those individuals proposed. The Proposer will make no changes to key personnel without prior written consent of the State TDW Project Manager. Exceptions to the key personnel commitment requirement would include removal of personnel who have permanently terminated employment or who become unavailable due to an extended illness. Replacement of any key personnel, if approved, shall be with personnel of equal or greater ability, experience and qualifications. Key personnel are those individuals who are determined by the Division of Taxation to be central to the management of the project and the development of the system. Changes or diversion of Proposer key personnel without written consent of the Division of Taxation will be sufficient grounds for termination of the contract for default. The Division of Taxation reserves the right, however, to request replacement of any of the Proposer's project team personnel. The Proposer must replace within 10 working days any personnel removed from the project with equally qualified personnel approved by the Division of Taxation. If key personnel are lost because of death, termination or extended illness, the Proposer will replace them within ten (10) working days, including pre-approval of the replacement. The Division of Taxation may approve up to a ten (10) working day extension for replacement of these personnel if the Proposer submits a written request for an extension of time. The Proposer shall include in the required status reports its efforts and progress in finding replacements and the effect of the absence on the progress of the project. In addition, the Proposer shall make interim arrangements to ensure that the project's progress is not adversely affected by the loss of the personnel. The Proposer shall provide all clerical staff support for its team on this project, including support for such tasks as answering the telephone, document copying and typing. 3.5.3.1.2 Business Partner Project Manager 37 The Business Partner shall designate one full-time Business Partner Project Manager (BPPM). The BPPM shall have overall responsibility for successful completion of Business Partner responsibilities, overseeing and monitoring Business Partner staff on a day-to-day basis as they undertake project activities. The BPPM will also work closely with the State Project Manager. 3.5.3.1.3 Project Status Reporting The Business Partner will be required to meet with and provide project status to the TDW Steering Committee no less than monthly and TDW Project Team no less than every two weeks. The purpose of the status meetings is to communicate actual progress, identify problems, recommend courses of action, and obtain approval for making modifications to the project plan. In conjunction with the project status meetings, the Business Partner must provide written status reports to the State Project Manager. This status reports will include: Updated Project Plan; Tasks completed during the last reporting period; Tasks planned for the next reporting period; Tasks planned for completion during the next reporting period; Items requiring the Project Manager’s attention; If appropriate: a. Anticipated staffing changes; b. Outstanding issues; current status and plans for resolution; c. Any issues that can affect schedules; d. Any issues that can delay or impact the completion of the project; e. Identification, cost and status for out-of-scope time and materials items; f. Invoices processed for payment in the last reporting period. 3.5.3.1.4 Meeting Documentation The Business Partner shall be responsible for documenting all meetings, including attendees, topics discussed, decisions recommended and/or made with follow-up details. Minutes and summaries from all meetings are to be provided to the State Project Manager no later than three (3) business days after the date of the meeting. 3.5.3.1.5 Project Methodologies and Tools The Division of Taxation envisions this Business Partnership using a system development methodology, a project management methodology, related project management tools, and an application development environment. The Business Partner will be required to supply the methodology and tools necessary to create, document and maintain the system design, including any process and data models used. Upon completion of the project, the Business Partner will leave the methodology, tools, equipment, and the appropriate licenses for the most current versions of development software to support system maintenance staff as agreed to by the Division of Taxation. 3.5.3.1.6 Project Plan Upon contract award, the Business Partner will be required to meet with the State TDW Project Manager to review and refine the project plan submitted with the Business Partner’s Final Proposal (Section 4.3.2.4). Further work cannot occur until the State Project Manager has approved the revised project plan. As the project progresses, the State Project Manager will work with the BPPM to revise the project plan due to unanticipated or unavoidable circumstances. 38 Throughout the project, the Business Partner is required to maintain a detailed project plan. Microsoft Project is currently utilized by the State to develop and maintain project plans. The Business Partner’s project plan shall include the following detail: Activities; Sub-activity; Tasks; Hours; Assigned Resources; Scheduled start and end dates; Dependencies in the relationships of tasks; Critical Path. 3.5.3.1.7 Business Partner Estimation of State Resource Requirements The Business Partner must estimate the number of State support staff (both information systems and operational area) by skill level and required hours, necessary to implement and support the new system. Staffing requirements must be detailed in the project plan. These estimates should take into consideration any training of the State staff with Business Partner’s technologies, methodologies, and tools. Should the resource requirements exceed the State’s available resources, contract personnel will be required. 3.5.3.1.8 Communications Planning A critical component of any project is its Communications Plan. The Plan should incorporate the Business Partner’s methods to ensuring that all stakeholders are appropriately informed of project progress throughout the life of the project. 3.5.3.1.9 Change Control Change Request Recording Any proposed modification to the design specifications and/or functional requirements must be recorded, regardless of whether they are actually implemented. Change requests may be submitted to the State Project Manager for consideration from various sources including the Business Partner's staff, and TDW project team members. The following fields should be captured: Requestor; Initial date of submission; Description of change; Evaluation date; Evaluation status (accept/reject change request); Reason for rejection, if not approved; Implementation date; Acceptance date. 39 Change Request Evaluation Change requests submitted to the State TDW Project Manager will be reviewed and, as appropriate, forwarded to the Business Partner’s Project Manager (BPPM) who will assign a change threshold level as determined in consultation with the State Project Manager. Those requests within Change Threshold One1 will be returned to the State Project Manager for approval before any work is begun. The BPPM, in conjunction with the State Project Manager, will also be responsible for scheduling meetings of the Project Steering Committee as necessary for requests meriting its attention and for notifying the State Project Manager of change requests, requiring the attention of the Steering Committee. Change Request Implementation and Acceptance Procedures As change requests are developed and implemented, the work involved will be subject to the same test, review and acceptance procedures as other project deliverables. Changes will not be considered complete until final acceptance by and sign-off by the State Project Manager. It is important that the Business Partner recognizes that the Division of Taxation through its State Project Manager will review, accept and sign-off, as appropriate, on change requests that are related to the development, implementation and administration of the project and its work schedule. The Division of Taxation will also initially review change requests that relate to contract terms and conditions, duration and/or compensation. However final acceptance of change requests affecting contract terms and conditions, duration and/or compensation is within the sole province of the Director, Division of Purchase and Property, who upon agreement with any such change request will execute a contract amendment. 3.5.3.1.10 Risk Management The Business Partner shall work with the Division of Taxation to implement a risk management process consistent with its proposed methodology, ensuring that project risks are identified, assessed and prioritized, and mitigation activities and contingency plans are developed to address significant project risks. 3.5.3.1.11 Quality Assurance The Business Partner should implement an effective quality assurance methodology. Quality can be defined as “conformance to requirements” (Crosby, 1979) or “fitness for use” (Juran and Gryna, 1970). Both of these definitions imply that quality is relative to the customer and the intentions of the customer and rely upon a clear understanding between the software provider and the customer as to the precise requirements and the precise intended use of the software. The Business Partner should “close the gap” in understanding between its products, services and abilities and the needs of the Division of Taxation so that software quality in these instances will be fully agreed upon by both parties early in the process. Finally, the Business Partner must establish and document quality assurance and quality control procedures to monitor each facet of the project. 3.5.3.1.12 Document Deliverables When a deliverable is a document, it must be in hard copy (at least 5 copies) and electronic form. The BPPM will confer with the State Project Manager in advance of a deliverable being transmitted to the State to ascertain the number of hard copies required. The State Project Manager will minimize the number wherever possible. 1 Change Request Thresholds will be mutually defined upon project initiation. 40 When a major deliverable is a document, the State intends to conduct the review as follows: Document Size 50 pages or less 51-100 101+ Maximum Business Days to Review 10 15 20 Documents delivered to the State Project Manager by 5:00 PM of a business day shall be considered delivered on that day. The State’s review period commences the following business day. 3.5.3.1.13 Other Deliverables For deliverables that are not documents, the State will review the deliverable and respond to the Business Partner within ten (10) business days. The State may approve, reject, or request revisions to any deliverable. In the event the State is unable to review and/or respond to any deliverable, the State will inform the Business Partner of such in writing. The State and Business Partner shall develop and agree upon policies for deliverable review, including procedures, timeframes and responsibilities, upon commencement of the project. 3.5.3.2 Software 3.5.3.2.1 Analysis and Design of Software Modifications or New Software The Business Partner must utilize a System Development Life Cycle (SDLC) methodology to develop software that satisfies functional requirements not provided by pre-existing or third party software. The SDLC must include activities that facilitate the Business Partner gaining a complete understanding of State processes and data underlying the functional requirements. The Division of Taxation requires that detailed system design documents, including a data model, programming specifications and screen designs, descriptions of inputs and outputs, data editing rules, data exception rules and default values are developed and delivered to the State Project Manager. 3.5.3.2.2 Develop Software Modifications or New Software The Business Partner must create and maintain the development environment throughout the project in conjunction with the TDW Project Team. Upon completion of the project, the Business Partner will “turnover” the developmental environment to State. The Business Partner must develop all software (and modifications to pre-existing software, if any) in accordance with design deliverables approved by the State during the design sessions. The Business Partner must provide technical training, and involve TDW Project Team staff in development activities. 3.5.3.3 Testing The Business Partner must create and maintain all testing environments throughout the project in conjunction with the TDW Project Team. In addition, the Business Partner must provide the production sizing requirements anticipated for the project. The Business Partner must plan and execute comprehensive test plans including, at a minimum, integration, system and predictive testing, network testing, performance (response time) testing, data conversion testing, and other tests as appropriate. As part of predictive testing, the Business Partner shall prototype/baseline the system applications and transactions. Using performance assessment methodologies, the Business Partner shall baseline the performance characteristics of the applications using various client topologies to gauge real-world end-to-end response times. The Business Partner shall actually perform all testing except user acceptance testing. 41 3.5.3.3.1 Acceptance Testing The Business Partner must develop, in conjunction with the TDW Project Team, a recommended Acceptance Test Plan. Based upon direction from the TDW Project Team, the Business Partner will finalize the recommended Acceptance Test Plan. Acceptance testing will include, but not be limited to, the following: Installation of software; Data conversion; Completeness and accuracy of system documentation; Training methods and materials; Testing all functional aspects of the system; Response time and overall system performance; System, data and application security; Accuracy and performance of system interfaces. The State team will identify and document problems discovered during the acceptance test process; the Business Partner is responsible for evaluating each occurrence, documenting a planned resolution, implementing the resolution, re-presenting the item to the State for acceptance, and documenting the resolution of the matter and actual acceptance by the State. The Business Partner is also responsible for making related changes to other areas of the project as acceptance testing unfolds, such as updating documentation and training materials to agree with the accepted software. 3.5.3.4 Interfaces The Business Partner must develop, execute and oversee an interface plan for the duration of the project. All interfaces must meet existing standards established by OIT. 3.5.3.4.1 Inbound Interfaces The Business Partner must define a standard inbound interface specification that will guide the import of data into the TDW from other systems. The Business Partner will be responsible for developing programs that cleanse and load inbound data once received. 3.5.3.4.2 Outbound Interfaces The Business Partner must also define an outbound interface file specification for data coming out of the Taxation Enterprise Data Warehouse to destinations such as TULIPS or to external partners that provide input data to allow them to correct their data. 3.5.3.4.2.1 Secure File Transfer (SFT) The NJ portal provides the capability of Secure File Transfer (SFT) to facilitate data sharing. The actual data exchange for the optional interfaces should utilize this portal feature. 3.5.3.4.2.2 Interface Plan Content The Business Partner’s interface plan must also include: Fallback strategies in the event of interface failures. How its implementation approach impacts the creation and implementation of all interfaces and how each impact can be resolved. 42 3.5.3.5 Hardware For all areas of the project where hardware and related system setup are required, the Business Partner will work in conjunction with TDW Project Team to test and install the hardware into the State’s environment, adhering to State practices and procedures. The Business Partner is primarily responsible for administering and maintaining all environments (development, testing, production, training, and any others) until system turnover is complete. The TDW Project Team will work closely with the Business Partner in administering and maintaining the environments on an on-going basis. 3.5.3.5.1 Hardware Acceptance Any hardware purchased shall be accepted by the State when the following criteria have been met: All hardware and operating system components have been installed according to requirements and have been successfully tested by the Business Partner, using hardware supplier diagnostics. All hardware documentation has been delivered. All hardware supplier operating system software documentation has been delivered. In addition to the manufacturer’s warranty, the State requires a five-year maintenance agreement on all hardware purchases. The State requires a “pass-through” of all manufacturers’ warranties and maintenance contracts. 3.5.3.6 Documentation All system documentation must meet the requirements of the proposed SDLC methodology. The State must approve the format and content of the system documentation prior to its production. System documentation must include items such as: A technical description of the proposed system; Program specifications; Standards for internal program documentation; The Business Partner must provide for the TDW system: Technical, Operational and Administrative Documentation; User (Business) Documentation. This documentation must be delivered prior to training, which will occur prior to the implementation process. 3.5.3.6.1 Technical, Operational and Administrative Documentation Technical, Operational and Administrative Documentation shall document the technical architecture of the entire TDW system, such as relational database design, record or table layouts, data dictionary, performance specifications, hardware specifications, program description, etc. It must provide sufficient information to enable the State to operate, maintain, enhance and administer the system. 3.5.3.6.2 User (Business) Documentation User (Business) Documentation shall include appropriate reference guides and manuals on the system, guides and manuals located on the system, references reports underlying the use, a comprehensive online help facility, and Quick Reference Guides by job function. The Business Partner shall supply the State with an electronic copy of all final documentation deliverables with written permission for unlimited reproduction for internal use by the State. The State currently provides most documentation in MS Word or Adobe PDF. 43 3.5.3.7 Knowledge Transfer Key to the success of this project will be the transfer of knowledge in many different areas from the Business Partner staff to State staff. Accordingly, the Business Partner shall provide a Knowledge Transfer Plan by which this transfer will be effected. The Plan must outline the areas of knowledge transfer, the method of transfer for each area, the level of effort to be dedicated by Partner and State to this transfer, and the means of periodic measurement of the effectiveness of the knowledge transfer. During Installation as many as 8 State staff are to be trained on system infrastructure. During Application Development, as many as 10 State staff are to be trained on application development. During Application Support, as many as 10 State staff are to be trained on application support. During Transfer of Operations to the State, as many as 15 State staff are to be trained. 3.5.3.8 Training The Business Partner will develop and deliver training for the TDW Project Team, hardware and network support staff, software support staff, and production processing staff in the use and support of Business Partner and third party-supplied methodologies, automated tools, system software and application software. The Business Partner also will develop and deliver training for selected Division of Taxation project trainers on the use of the new system, including preparing the environment and materials to be used to train departmental staff in the use of the new system in Trenton. Generally, training shall occur at the Division of Taxation's central facility in Trenton, New Jersey and shall include step-by-step procedures and directions in the use of the proposed software through all activities supported by the system. The Business Partner must set up, test and maintain the training environment for the duration of the project. The Business Partner must oversee and manage the execution of the training plan for the duration of the project. A copy of all source material and instructor manuals (paper and electronic) will be provided to the Division of Taxation for future internal training as well as a copy of the training software. This training also will provide any necessary explanation of hardware or communication equipment. 3.5.3.9 Implementation The TDW Project is large, integrated, and complicated. The Business Partner shall work with the Division of Taxation to develop an implementation strategy that minimizes the risk associated with development of systems of this size and scope. The Division of Taxation expects the Business Partner to “plan globally, but implement incrementally.” This implementation strategy plan must include project phasing and the Business Partner’s strategy to fund this project through gainsharing. 3.5.3.9.1 Implementation Planning and Change Management The Business Partner is required to develop, execute and manage an implementation plan that will facilitate successful implementation of TDW. The Business Partner’s plan must incorporate a comprehensive change management strategy that will guide how the TDW is actually integrated into each user’s work environment and shape how the system is presented to them for acceptance into their daily operations. The plan must include an assessment of the skills of the existing Division of Taxation employee base, as well as a determination of the training and development needs of these employees to ensure that they are able to function effectively in a future environment. The plan must further explain how to approach reassigning employees to new tasks and functions. 44 3.5.3.10 User Support The Business Partner must also provide that all users of the TDW system have access to a support group capable of answering questions and mitigating issues that arise as they begin to use the new system, and thereafter. The Business Partner’s implementation plan must include a plan for physical presence at user locations to answer questions and resolve issues that arise. Actual amounts of coverage during implementation will be determined based on the Business Partner’s proposal and the detailed implementation plan prepared by the Business Partner and approved by the State. During implementation, and thereafter, the following support infrastructure will be utilized: Level 1 Support: Certain users will be designated as “super-users” during the training process. Other staff will be directed to seek them out for assistance to answer questions and/or resolve issues. Level 2 Support: If unable to obtain assistance from a super-user (Level 1), users will be instructed to call the TDW Project Team who will record user calls and route them appropriately. Tech Calls: Calls of a technical nature will be routed to State technical support for the TDW system. Technical support staff will research the matter, communicate with the user, resolve the issue, and record the resolution. Business Calls: Calls of a business nature will be routed, as appropriate, to the designated Subject Matter Experts (SMEs) within the Division of Taxation. SMEs will research the matter, communicate with the user, resolve the issue, and record the resolution. - Level 3 Support: When a call is not resolved via Levels 1 and 2, the Business Partner will make a recommendation(s) to the State Project Manager for resolution. The Business Partner is responsible for training the TDW Project Team to record, route and manage TDW user calls. 3.5.3.11 3.5.3.11.1 Formal System Acceptance, Warranty & Maintenance, and System Turnover Formal System Acceptance The State intends to formally accept the TDW system 90 days after the system has been in production use, provided the system has been available at the Division of Taxation main office 99.5% of the time (24/7) during the final 30 days. In the event that the availability level was not attained due to problems or discrepancies for which the Business Partner was responsible, the State reserves the right to withhold formal acceptance until the availability level is attained over an additional 30-day period. 3.5.3.11.2 Software Support and Maintenance The Business Partner shall warrant the software to be free of defects or imperfections that prevent full performance in accordance with the approved Detailed System Design Document2, for a period of three (3) months from the date of formal system acceptance by the State. During the 3-month warranty the Business Partner is responsible, at its own expense, for “break fix” of any component of the TDW System. 2 The Detailed System Design is the compilation of the Conceptual Design, the Platform Design, the Defined BI Applications Analysis, the Program specifications, the Quality Assurance Plan and the Software Customization Descriptions. 45 Also commencing upon formal acceptance the State expects the Business Partner to provide maintenance and/or enhancement services on a work order basis for the life of the contract and so long as the Business Partner is receiving payments from Defined Business Intelligence Applications. 3.5.3.11.3 Hardware Support and Maintenance The Business Partner will be responsible for maintaining all hardware provided. Maintenance requirements include: Five year on-site warranty and annual service contract must offer prime and second shift maintenance: Monday-Saturday 6:00am-11:00 pm. Maintenance requests must be answered on-site within two hours of call. In all cases, the Business Partner is responsible for maintenance of this equipment. Should the Partner decide to subcontract maintenance responsibilities, the Business Partner will still retain ultimate responsibility for equipment maintenance. 3.5.3.11.4 System Turnover The Business Partner will create and execute a plan to turnover maintenance and support of the TDW to the State. The State intends to assume all aspects of implementing and maintaining the TDW at the expiration of the Contract (including any extensions thereof). This includes all data conversion programs, interface programs, system software, training materials, documentation, and tools and methodologies used by the vendor to implement the TDW. Components of the turnover shall include: Turnover Plan Document; Documentation of Development, Test, and Production Environments; Turnover schedule; Operational Turnover; Tools and methodology for updating technical and user documentation; Technical and user documentation; Current copy of all program source code and/or authority to operate proprietary software; Inventory of work in progress; Staff Skill and Training Requirements; Inventory of all equipment and licenses to be turned over; Status of any outstanding problems and recommendations for system enhancements; Turnover analysis and results report. 3.5.3.12 Business Partner List of Deliverables The Business Partner must propose a comprehensive set of deliverables for the project, which include, but are not limited to: Project Charter: The Project Charter is the agreement between the organization providing the product or service, and the customer organization requesting and receiving the project deliverable. It is a tool to obtain commitment from all affected groups and individuals regarding a specific project. Project Work Plan: Includes identification of all major project phases, major activities within each phase, time frames for each activity, major milestones, and deliverables. Bi-Weekly Status Reports Conceptual Design: A high-level design model identifying the major segments or modules of the systems and application architecture. It represents the system components and functionality of each as 46 determined from the analysis of business and technology problems, the various external and internal impacts, and the requirements definition. Platform Design: A plan for developing and maintaining a detailed computer-based schematic of the physical design of all aspects of the proposed systems, including all wiring, communications devices, network components, server computers, storage devices and sub-systems, high-speed scanners, and any other major components. Schematics of proposed and installed networks where the State and the Business Partner are responsible for Systems Administration must relate directly and accurately to physical layouts of buildings. Defined Business Intelligence Applications Analysis: A thorough identification of specific areas where revenue will be increased, including how much revenue will be realized from each initiative and when such revenue will be collected and the corresponding direct and indirect costs to realize the revenue gain. Program Specifications: Detailed description of each program within the system. Must include program flow and logic description, file layouts, data warehouse, database layouts, etc. Quality Assurance Plan: Includes a description of the role of the State’s Quality Assurance area, establishes quality assurance procedures and processes and a description of any necessary training for QA staff. Software Customization Description: A detailed description of how each piece of software will be customized to meet the needs of the State. Staff Skills and Training Requirements: Specifications of the staff skills required to operate and maintain the TDW. Implementation Schedule/Plan: A detailed plan for the implementation of the proposed system. Communications Plan: A plan that describes the purpose, content, timing, frequency and target for communications by the project to its participants, sponsors, stakeholders and other interested parties. Installation Schedule/Plan: This plan will include equipment delivery, installation schedule and equipment checkout and installation testing. Knowledge Transfer Plan: A detailed plan for the daily transfer from the Business Partner team to State staff of both technical and analysis skills regarding the use and maintenance of the TDW. System Users Guide: A manual that will describe in detail with step-by-step instructions of all functions available to users. In addition to the detail descriptions, summary sheets should be created which users can display for easy reference. Operations Manual: A manual, which will provide a technical description of the system and its operations. A summary sheet should be supplied which operators can display for easy reference. Procedures Manual: With the assistance of State personnel, the Business Partner will provide a procedures manual, which will include detailed procedures and summary sheets for each function described. Floor Space Plan/Layout: A description of space usage and environmental requirements for the proposed hardware taking into consideration workflow requirements and electrical requirements. Database Specifications: A detailed description of each database, its relationships and data contents. Data Dictionary: A description of each data element. 47 Detailed Test Plan: A plan for system testing and user acceptance testing approval. System Documentation: A complete description of all technical aspects of the system and its hardware. Training Plan: A description of the training activities that will occur. The plan will include: training curriculum, training manuals, class outlines, class schedules, training aids and guides, and hands-on sessions. Training Materials: A hard and soft copy of all materials used in the training process. Post-Implementation Review Plan: A plan for monitoring and adjusting the implemented system as required. Report on TDW Operation and Support Transition to the State: A report on the steps taken and the resulting outcome toward successful transition of responsibility for TDW operation and support by the State. Turnover Plan Document: The plan by which the Business Partner will relinquish operations and maintenance of the TDW and ensure that the State has the training and skills to competently continue its operations and maintenance. Turnover Analysis and Results Report: Report of the results of the turnover of the TDW to the State for operations and maintenance. Project Final Report: Report that summarizes the entire engagement with the State as a result of this RFP. 3.5.3.12.1 Conditions for Deliverables Prior to beginning work on any deliverable, the Partner must submit a detailed outline, format example and description of the deliverable. The Division of Taxation will review and approve the deliverable content and format or provide any requested changes to the Partner within 15 business days. The Business Partner must ensure consistency among all deliverables associated with the project and must identify which project team member will be responsible for each deliverable. The Business Partner must conduct ‘walk-through' meetings for TDW Project Team members to review deliverables to ensure accuracy, completeness and to confirm the State's understanding of the deliverable content. All deliverables must be approved by the State before the phase is considered complete. The Business Partner must provide five (5) hard copies and an electronic copy of all deliverables as approved by the State. The Business Partner must prepare a final Project Report no later than two months after completion of the project. The report must critique the project implementation process, the effectiveness of the overall project and any recommendations for follow-up activities. All textual deliverables will be furnished electronically in MS-Word 2000 (or higher) format. All work plans (Gantt Charts, Pert Charts and Resource Spreadsheets) must be completed using a project management tool approved by State. 48 All rights to the completed deliverables shall become the sole property of the State of New Jersey. The State may distribute the deliverables as desired. 49 4.0 4.1 PROPOSAL PREPARATION AND SUBMISSION Responsibilities for All Phases The Proposer must follow instructions contained in this RFP and on the proposal cover sheet in preparing and submitting its proposal. The Proposer is advised to thoroughly read and follow all instructions. The required submission information has been determined to be essential in the proposal evaluation and contract award process. Any qualifying statements made by the Proposer to the RFP’s requirements could result in a determination that the Proposer’s proposal is materially non-responsive. Each Proposer is given wide latitude in the degree of detail it elects to offer or the extent to which plans, designs, systems, processes and procedures are revealed. Each Proposer is cautioned, however, that insufficient detail may result in a determination that the proposal is materially non-responsive or, in the alternative, may result in a low technical score being given to the proposal. 4.2 4.2.1 Proposer Qualifications Content Response Summary The initial procurement step consists of the submission of the Proposer Qualifications to perform the Scope of Work. The Proposer Qualifications response must contain the following items: Signed cover letter Response to Proposer Qualifications requirements Proposer History, Background, and Viability Proposer Experience and References Project Team Organization and Staffing Twelve (12) hardcopies of the Proposer Qualifications response, including one marked as a Master Copy, must be submitted by the date and time identified in the RFP Cover Sheet. In addition, an electronic version of the proposal (on CD) shall be included. Response forms and qualification criteria are specified below. The forms may be reproduced either electronically or photocopied, as long as the format remains the same. If the State is unable to contact one or more references for a Proposer, the State will allow the Proposer to provide alternative references within three (3) business days of the State’s request for alternative references. To be compliant, alternative references must be provided if the required minimum number of references is no longer met due to the inability to contact original references. If a subcontractor’s experience is cited for a required reference, the response must include an “Intent to Partner” letter between the responding Proposer and the subcontractor. 4.2.2 Proposer History and Viability Response Within the Proposer Qualifications, the Proposer must provide information on the Proposer’s internal organization. If the Proposer’s solution involves subcontractors, the response must indicate the following information for the prime Proposer and its anticipated subcontractors. This information must include: Name of the firm(s) submitting the proposal; Mailing address; Contact person and title; Contact telephone number(s) and fax number(s); Brief history and background about the Proposer’s company; Services and products offered by the Proposer’s company; 50 Number of employees; Office locations; General information about the Proposer’s organization; and Identification of whether the firm is the prime Proposer or subcontractor on this project. A description of any affiliation or connection between the Proposer and subcontractor(s). Financial statements (income statement, balance sheet, and statement of cash flows) and/or annual report for last year end fiscal year of Proposer. 4.2.3 Proposer Experience and References Response The Proposer must provide minimum references for each of the three requirements listed below. Projects for which references are provided should be similar in size and complexity to the proposed Taxation Data Warehouse solution. Project references may be duplicated if one single client or project meets multiple requirements. Requirement #1 (2 references required): Designed, developed, tested and implemented a solution that collected information from a variety of disparate sources into a single, flexible data warehouse/data mart solution for management and end user utilization. Requirement #2 (2 references required): Designed, developed, tested and implemented a solution that brought data and processes into an integrated information system for various taxrelated functions (e.g., compliance, audit, returns processing) Requirement #3 (1 reference required): Designed, developed, tested and implemented a solution for which the customer deferred any/all payments (other than retainage) for the system until the benefits achieved from use of the system were realized. 4.2.4 Project Team Organization and Staffing Response The Proposer must specify the minimum qualifications/expertise of the key staff that would be assigned to conduct this project. This narrative description may be in any format that the Proposer chooses, but should not exceed two (2) pages in length. Descriptions should be provided for the following roles: Project Manager; Technical Architect; Data Administrator Database Administrator; Systems/Business Analyst; Applications Developer; Tester; Trainer. To demonstrate the depth of experience provided by Proposer staff, the Proposer shall provide two (2) different Project Manager resumes and at least one (1) resume for the other key roles. The Proposer may submit resumes of independent contractors for these positions and, if it does, must indicate which position(s) are to be filled with independent contractors. When the Proposer intends to use independent contractors, the Proposer must provide a signed statement by the contracted individual or the Proposer affirming that there is an intent to contract for this engagement and that the contracted individual has previously contracted with the Proposer to perform these or like services, as applicable. For the Project Manager, the description shall, at a minimum, address the following areas: Number of years experience as a dedicated Project Manager; Types of projects in management role; Project lifecycle experience in management role (i.e., design, development, implementation, etc.); Utilization of structured project management methodology techniques; Specific data warehouse and/or tax-related experience; Educational background; 51 Project management certification held (e.g., PMI). 4.2.4.1 Proposer Qualifications Evaluation Criteria Response Requirement Proposer History, Background and Viability Evaluation Criteria Proposer general experience Proposer financial strength to carry the cost of a project whose pay-off is not immediate Depth of specific functional experience (e.g., tax environments, revenue identification) Depth of specific technical experience (e.g., data warehouses, business intelligence) Ability to implement desired solution Representative Project Manager depth and similarity of experience including education and certifications Representative Project Staff depth and similarity of experience Proposer Experience and References Response Representative Project Team and Staffing 4.3 Draft Proposal Content Proposers shall submit their Draft Proposals in three (3) sections as follows: Section 1: Forms (Section 4.3.1) Section 2: Technical Proposal (Section 4.3.2) Section 3: Organizational Support and Experience (Section 4.3.3) NOTE: Draft Proposals must be complete in all respects with the exception that the Price Proposals must not be included. The following table describes the format of the Draft Proposal that should be prepared with tabs (separators), and the content of the material located behind each tab. TAB CONTENTS RFP SECTION REFERENCE Cover sheet 4.3.1.1 4.3.1.2 1 Forms 4.3.1.3 1.1 of the Standard Terms & Conditions 4.3.1.5 2 Technical Proposal 4.3.2.1 4.3.2.2 4.3.2.3 4.3.2.4 4.3.2.5 4.3.2.6 4.3.2.7 4.3.2.8 4.3.2.9 COMMENTS Completed and signed cover sheet Ownership Disclosure Form MacBride Principles Certification Affirmative Action Employee Information Report or New Jersey Affirmative Action Certificate Business Registration from Division of Revenue Proposal Bond Management Overview Contract Management Contract Schedule Mobilization and Implementation Plan Potential Problems Project Management Change Control COTS and Third-Party Software Analysis and Design of Software Modifications or New Software 52 TAB CONTENTS RFP SECTION REFERENCE 4.3.2.10 4.3.2.11 4.3.2.12 4.3.2.13 4.3.2.14 4.3.2.15 4.3.2.16 4.3.2.17 4.3.2.18 4.3.2.19 4.3.2.20 4.3.2.21 4.3.2.22 4.3.2.23 4.3.3.1 4.3.3.2 4.3.3.3 4.3.3.4 4.3.3.5 4.3.3.6 4.3.3.7 4.3.3.8 4.3.3.9 COMMENTS Develop Software Modifications or New Software Testing Acceptance Testing Data Conversion Interfaces Documentation Reports Training Implementation Planning and Change Management User Support Formal System Acceptance, Warranty and Maintenance, and System Turnover Functional Requirements General Technical Requirements Cost and Benefits Worksheets and Supplemental Forms Location Organization Chart (Contract Specific) Resumes Backup Staff Organization Chart (Entire Firm) Experience of Proposer on Contracts of Similar Size and Scope Financial Capability of the Proposer Subcontractor(s) State Personnel Required 3 Organizational Support and Experience Proposal 4 Price Proposal (ONLY IN FINAL PROPOSAL) 4.4 4.3.1 Section 1: Forms 4.3.1.1 Ownership Disclosure Form In the event the Qualified Proposer is a corporation or partnership, the Proposer must complete the attached Ownership Disclosure Form. A completed Ownership Disclosure Form must be received prior to or accompany the proposal. 4.3.1.2 MacBride Principles Certification The Qualified Proposer must complete the attached MacBride Principles Certification evidencing compliance with the MacBride Principles. Failure to do so may result in the award of the contract to another Proposer. 4.3.1.3 Affirmative Action The Qualified Proposer must complete the attached Affirmative Action Employee Information Report, or, in the alternative, supply either a New Jersey Affirmative Action Certificate or evidence that the Proposer 53 is operating under a Federally approved or sanctioned affirmative action program. The requirement is a precondition to entering into a valid and binding contract. 4.3.1.4 Set-Aside Contracts – Not applicable to this procurement. 4.3.1.5 Proposal Bond This Section supplements Section 3.3a of the Standard Terms and Conditions. The amount of the proposal bond is noted on the RFP cover sheet. The proposal bond must be submitted with the Qualified Proposer’s Draft Proposal and will be returned when a winner is selected after Final Proposals. If a Qualified Proposer submits a Draft Proposal (with proposal bond) and ultimately decides not to submit a Final Proposal, the State will return the proposal bond once notified. In the event the Qualified Proposer has an annual proposal bond on file with the Purchase Bureau, the Qualified Proposer should so note in the appropriate box on the RFP cover sheet. 4.3.2 Section 2: Technical Proposal In this section, the Qualified Proposer shall describe its approach and plans for accomplishing the work outlined in the Scope of Work Section, i.e., Section 3.0, and conforming to the Proposal Table of Contents. The Qualified Proposer must set forth its understanding of the requirements of this RFP and its ability to successfully complete the contract. This section of the proposal shall contain at least the following information: 4.3.2.1 Management Overview The Qualified Proposer shall set forth its overall technical approach and plans to meet the requirements of the RFP in a narrative format. This narrative should convince the State that the Qualified Proposer understands the objectives that the contract is intended to meet, the nature of the required work and the level of effort necessary to successfully complete the contract. This narrative should convince the State that the Qualified Proposer’s general approach and plans to undertake and complete the contract are appropriate to the tasks and subtasks involved. Mere reiterations of RFP tasks and subtasks are strongly discouraged, as they do not provide insight into the Qualified Proposer's ability to complete the contract. The Qualified Proposer’s response to this section should be designed to convince the State that the Qualified Proposer’s detailed plans and approach proposed to complete the Scope of Work are realistic, attainable and appropriate and that the Qualified Proposer’s proposal will lead to successful contract completion. 4.3.2.2 Contract Management The Qualified Proposer should describe its specific plans to manage, control and supervise the contract to ensure satisfactory contract completion according to the required schedule. The plan should include the Qualified Proposer's approach to communicate with the State Project Manager including, but not limited to, status meetings, status reports, etc. 4.3.2.3 Contract Schedule The Qualified Proposer must develop a project plan for the TDW project. The project plan should include a timeline for the deliverables identified by the State in the Scope of Work section of this RFP, including, but not limited to, the date when system implementation is expected and also the date when the Business Partner anticipates revenue enhancement will begin. Such schedule should also identify the associated deliverable item(s) to be submitted as evidence of completion of each task and/or subtask. To facilitate comparison of proposals, the project plan should assume a start date of November 1, 2004. The State currently uses Microsoft Project for project plans. 54 4.3.2.4 Mobilization and Implementation Plan It is essential that the State move forward quickly to implement the TDW system. Therefore, the Qualified Proposer must include as part of its proposal a mobilization and implementation plan, including the following elements: A detailed work plan demonstrating how the Qualified Proposer will begin to implement the contract within the period of 30 calendar days from the date of notification of award. The plan should show all management, supervisory and key personnel who will be assigned to manage, supervise and monitor the Qualified Proposer’s mobilization and implementation of the contract within the period of 30 calendar days from the date of notification of award. The Qualified Proposer should clearly identify management, supervisory or other key staff that will be assigned only during the mobilization and implementation period. 4.3.2.5 Potential Problems The Qualified Proposer should set forth a summary of any and all problems that the Qualified Proposer anticipates during the term of the contract. For each problem identified, the Qualified Proposer should provide its proposed solution. 4.3.2.6 Project Management The Qualified Proposer should describe its specific plans to manage, control and supervise the project to ensure satisfactory contract completion according to the required schedule. The Qualified Proposer should indicate its intended project management methodology for this project. The Qualified Proposer should discuss Project Management Institute (PMI) methodology, IEEE Project Management Methodology, various application development project management methodologies and compare and contrast its intended methodology with these. The Qualified Proposer should demonstrate knowledge of various methodologies and show how its proposed methodology is the appropriate methodology for this project. The Qualified Proposer’s approach to maintaining the project plan, issue identification, tracking, resolution, and day-to-day management of the project should be discussed in detail, as well as procedures it will have in place to facilitate quality control and quality assurance. The Qualified Proposer should describe in detail the day-to-day working relationship envisioned between the Qualified Proposer’s Project Manager and the State’s Project Manager. Qualified Proposers should describe from a conceptual standpoint their approach to the development and implementation of a communication plan for the project. Qualified Proposers should identify and describe the proposed methods for risk management, including risk recognition, risk assessment, risk mitigation and risk monitoring for the project. This should include technical performance risk analysis, schedule performance risk analysis, and cost performance risk analysis. Such approach should assess the probability of a failure and the consequences of the failure in order to establish the risk value of the failure. The Qualified Proposer shall apply its risk management method to the TDW project and provide an analysis (assessment, mitigation, etc.) of significant project risks in its Draft and Final Proposal. Qualified Proposers should clearly articulate their plans for involving TDW Project Team members as a way of mentoring them to learn the system early on and for the duration of the project. Qualified Proposers must state their requirements for office space, local telephone access, Internet service, and copy and fax machines. 55 4.3.2.7 Change Control Qualified Proposers should propose a methodology for controlling change during project development and implementation. At a minimum, the proposal should cover the following points: Change Request Recording; Change Request Evaluation; Change Request Thresholds; Composition of a Change Review Board; Change Request Implementation and Acceptance Procedures. 4.3.2.8 COTS and Third-Party Software Qualified Proposals that include COTS software should describe that software and its metadata. The proposal shall include hardware, software, and configuration requirements for installation. The proposal should describe the history of the application, where it is currently installed and the company’s plans for the software both in the short and long term. Qualified Proposals that include third-party software must discuss the purpose of the software, and the hardware, licensing, software, and configuration requirements for installation. This includes software used during development, such as data modeling, as well as for implementation. 4.3.2.9 Analysis and Design of Software Modifications or New Software The Qualified Proposer shall describe its approach to developing and finalizing design of the system, specifically discussing the interaction it will have with State staff, including how it will identify and track any new requirements. The Qualified Proposer shall submit a proposed format for conceptual and detailed design documents, and program specifications. In particular, the Qualified Proposer should describe its system development lifecycle (SDLC) methodology and how designs will be developed and presented to the State for approval, and thereafter, how they will be constructed to maintain the integrity of pre-existing software, if included in the Proposer’s proposal. This includes a detailed understanding of how each phase or component of the life cycle would be applied to this development project, as well as the Qualified Proposer’s similar experience in other large multi-phased projects. Specific areas for understanding that must be addressed in the proposal are: Business rules confirmation and documentation techniques; Business process reengineering; Reverse engineering; System design, including approach to browser-based technology; Application security; End-user computing / design; Interfacing with existing systems; Hardware/software architecture; Post-implementation support. 4.3.2.10 Develop Software Modifications or New Software Proposals shall describe the Qualified Proposer’s approach to software development and/or modification and unit testing. The Qualified Proposer shall describe its plans to involve State technical staff in the development process early on and for the duration of the project. In addition, the Qualified Proposer should propose a quality assurance approach possibly by reference to approaches such as Total Quality Management (TQM), the Malcolm Baldrige, ISO 9000, the Software Engineering Institute’s (SEI) Capability Maturity Model (CMM), or Software Productivity Research’s (SPR) assessment approach. 56 4.3.2.11 Testing Proposals shall describe the Qualified Proposer’s approach to testing, including integration, system and predictive testing, including methodologies and toolsets it will use. Proposals should also include a discussion of the Qualified Proposer’s approach to configuration, recovery and security testing as well as background, stress and performance testing. Proposals shall also describe the Proposer’s approach for identification and resolution of problems during the testing cycle, including problems related to third-party products. Qualified Proposers must describe the role that State technical and business staff will have in this process. 4.3.2.12 Acceptance Testing The Qualified Proposer should describe how it would develop and coordinate, in conjunction with the TDW Project Team, a recommended Acceptance Test plan, which demonstrates the production readiness of the System. 4.3.2.13 Data Conversion Proposals shall describe the Qualified Proposer’s approach for converting data from the State and other sources. The Qualified Proposer should specifically discuss: How required data will be identified, acquired and cleansed; How all data conversion activities will be monitored; Issues of timing in extracting active production data and startup of the new TDW system; How errors will be detected, corrected and how the user will be involved in this process; Fallback strategies in case of data conversion failures; Difficulties that may occur during implementation and how to overcome those difficulties; Anticipated level of State involvement in this process. 4.3.2.14 Interfaces Proposals shall describe the Qualified Proposer’s approach to interfaces. The Qualified Proposer should specifically discuss: How required interfaces will be identified, established and tested. How all interface activities will be monitored. Fallback strategies in the event of interface failures. 4.3.2.15 Documentation Proposals shall describe the Qualified Proposer’s approach for developing and distributing both technical and user documentation. Samples may be provided. Proposers with preexisting software may provide existing documentation. 4.3.2.16 Reports Proposals shall describe the Qualified Proposer’s approach for developing, modifying and distributing reports. 4.3.2.17 Training Proposals shall describe the Qualified Proposer’s approach to training. The proposals shall describe how a training environment would be created and maintained. Samples of training materials may be provided. 57 4.3.2.18 Implementation Planning and Change Management The Qualified Proposer shall describe its implementation approach and underlying activities that will occur to complete tasks needed for each affected business unit within the State. The Qualified Proposer should describe in detail its approach for planning, developing and executing a change management plan that will guide how TDW is integrated into the day-to-day work environment of each affected State business unit. The Qualified Proposer should explain key activities and tasks that will occur, how its staff would be deployed and utilized relative to the plan, and the level/duration of Business Partner staff physical presence at each of these sites. 4.3.2.19 User Support The Qualified Proposer should describe the approach embedded in its plan for the project (i.e., the project plan) to provide an elevated physical presence by its staff at State offices during and immediately following implementation. The Qualified Proposer should also include a list of significant and critical events that will take place in the tax year cycles of Taxation offices subsequent to implementation, and details of how it proposes providing concentrated Business Partner support for each event. The Qualified Proposer should describe how, during implementation and thereafter, a user support network would be established and operated. The Qualified Proposer should describe its plans for identifying and training the super-users and the TDW help desk to field and route calls. The Qualified Proposer should also discuss how State technical staff and Taxation business staff would be groomed to perform the Level 2 role and how Level 2 staff would communicate with the user population. The Qualified Proposer should also describe the forum by which it would present recommendations for Level 3 items referred to it. The State operates a cyclical annual tax year in which certain periods, such as prior to April Tax Day, are extremely busy, and other periods are more suitable to pursuing less time critical but important activities. Proposers should be cognizant of this reality of tax life when planning their activities and support efforts. 4.3.2.20 4.3.2.20.1 Formal System Acceptance, Warranty & Maintenance, and System Turnover Formal System Acceptance The Qualified Proposer should describe activities that will occur enabling the State to formally accept the TDW solution. 4.3.2.20.2 Warranty and Maintenance The Qualified Proposer should describe the details of the warranty and maintenance agreements that will be provided to the State for the TDW system. 4.3.2.20.3 System Turnover Qualified Proposals shall describe the Proposer’s approach to the turnover of system maintenance and support to the State. The State desires to maintain the system without Business Partner or vendor support. Qualified Proposers shall provide a plan, schedule, and recommendations to the State for the turnover of the ongoing maintenance of the system, including tools and methodologies, procedures, technical and administrative staffing levels, and training needs. 58 4.3.2.21 Functional Requirements Qualified Proposals shall include a description of the Business Opportunities that the Qualified Proposer proposes for the Development Phase of the TDW. 4.3.2.22 General Technical Requirements The Qualified Proposer shall describe how its solution meets the stated technical requirements. The Qualified Proposer must submit the following documentation and/or diagrams: The architectural diagram of the components; A list of the unique software components that will reside on each server; The minimum requirements for desktops and, if applicable, for any proposed peripherals; All development and programming languages utilized in the proposed system solution; All product and version information for tools being used (e.g., testing and performance assessment tools, data warehouse tools, BI tools, application integration tools, etc.); Browser requirements; Security information (e.g., authentication, SSL, PKI, etc.); Network and transport protocols. In addition, the Qualified Proposer is required to provide detailed information about each proposed environment (e.g. development, training, production, etc). The Proposer shall specify if the system development environment is configured differently from the production environment and provide the detail for those differences. The Qualified Proposer shall specify the methodology used for sizing the servers, whether for web, application or database. If applicable, Qualified Proposers are required to include a description of server clustering technology for any proposed and future platform architectures, specifying load balancing, and performance scaling for the processor and memory. 4.3.2.23 Cost and Benefits Worksheets and Supplemental Forms Qualified Proposers must complete the Cost and Benefits Worksheets and Supplemental Forms A through F, contained in Section 7.0 of this RFP. All goods and services necessary to meet the requirements of the TDW project must be shown on these worksheets and forms. An authorized representative of the Proposer must sign each worksheet and supplemental form. For each Business Opportunity proposed, a Cost and Benefits of Proposal Worksheet must be completed. In addition, a complete set of Supplemental Forms must be completed showing the supporting detail, the totals of which must match those showing on the corresponding Cost and Benefits of Proposal Worksheet for each Business Opportunity proposed. All annual costs are required for each Business Opportunity proposed. Proposers must use a separate form for each Business Opportunity proposed. 4.3.3 Section 3: Organizational Support and Experience The Qualified Proposer shall include information relating to its organization and personnel, together with contact names and telephone numbers, evidencing the Proposer's capabilities to perform the services required by this RFP. 59 4.3.3.1 Location The Qualified Proposer shall include the location of the Proposer's office that will be responsible for managing the contract. The Qualified Proposer should include the telephone number and name of the individual to contact. 4.3.3.2 Organization Chart (Contract Specific) The Qualified Proposer shall include a contract organization chart, with names showing management, supervisory and other key personnel (including subcontractor’s management, supervisory or other key personnel) to be assigned to the contract. The chart shall include the labor category and title of each such individual. 4.3.3.3 Proposed Staff and Resumes The Qualified Proposer must describe the proposed project manager(s) and team assigned to this project, including number of staff, duties, skills and experience. The Qualified Proposer must indicate the percentage of involvement proposed for key personnel and provide reasonable assurance that key personnel assigned to the project will remain assigned for the duration of the project. Detailed resumes should be submitted for all management, supervisory and key personnel to be assigned to the contract. Resumes should be structured to emphasize relevant qualifications and experience of these individuals in successfully completing contracts of a similar size and scope to those required by this RFP. Resumes should include the following: Clearly identify the individual's previous experience in completing similar contracts. Beginning and ending dates should be given for each similar contract. A description of the contract should be given and should demonstrate how the individual's work on the completed contract relates to the individual's ability to contribute to successfully providing the services required by this RFP. With respect to each similar contract, the Qualified Proposer should include the name and address of each reference together with a person to contact for a reference check and a telephone number. 4.3.3.4 Backup Staff The Qualified Proposer shall include a list of backup staff that may be called upon to assist or replace primary individuals assigned. Backup staff must be clearly identified as backup staff. In the event the Qualified Proposer must hire management, supervisory and/or key personnel if awarded the contract, the Qualified Proposer should include, as part of its recruitment plan, a plan to secure backup staff in the event personnel initially recruited need assistance or need to be replaced during the contract term. 4.3.3.5 Organization Chart (Entire Firm) The Qualified Proposer shall include an organization chart showing the Qualified Proposer’s organizational structure. This chart should show the relationship of the individuals assigned to the contract to the Qualified Proposer's overall organizational structure. 4.3.3.6 Experience of Proposer on Contracts of Similar Size and Scope The Qualified Proposer shall provide a listing of contracts of similar size and scope that it has successfully completed, as evidence of the Qualified Proposer’s ability to successfully complete the services required 60 by this RFP. Emphasis should be placed on contracts that are similar in size and scope to the work required by this RFP. A description of all such contracts should be included and should show how such contracts relate to the ability of the firm to complete the services required by this RFP. For each such contract, the Qualified Proposer should provide the name and telephone number of a contact person for the other contract party. Beginning and ending dates should also be given for each contract. 4.3.3.7 Financial Capability of the Proposer The Qualified Proposer shall provide proof of its financial capacity (updated from Qualifications Phase) and capabilities to undertake and successfully complete the contract. To satisfy this requirement, the Qualified Proposer shall submit a certified financial statement, including applicable notes, reflecting the Qualified Proposer’s assets, liabilities, net worth, revenues, expenses, profit or loss, and cash flow for the most recent calendar year or the Qualified Proposer’s most recent fiscal year; or, if a certified financial statement is not available, then either a reviewed or compiled statement from an independent accountant setting forth the same information required for the certified financial statement. In addition, the Qualified Proposer must submit a bank reference. 4.3.3.8 Subcontractor(s) a. Should the Qualified Proposer propose to utilize a subcontractor(s) to fulfill any of its obligations, the Proposer shall be responsible for the subcontractor’s(s): (a) performance; (b) compliance with all of the terms and conditions of the contract; and (c) compliance with the requirements of all applicable laws. b. The Qualified Proposer must provide a detailed description of services to be provided by each subcontractor, referencing the applicable Section or Subsection of this RFP. c. The Qualified Proposer shall provide resumes for each subcontractor’s management, supervisory and other key personnel that demonstrate knowledge, ability and experience relevant to that part of the work, which the subcontractor is designated to perform. d. The Qualified Proposer shall provide documented experience demonstrating that each subcontractor has successfully performed work on contracts of a similar size and scope to the work that the subcontractor is designated to perform in the Proposer’s proposal. 4.3.3.9 State Personnel Required The Qualified Proposer must include in its Proposal an analysis of the State human resources required to implement and support this project. This analysis must include the skills required, the percent of time the resource must be committed, and the approximate date the resource will be needed. Any change in the proposed involvement of Division of Taxation employees will require prior written approval from the Director of the Division of Taxation. 4.4 Final Proposal Content: Technical and Price Proposals Final Proposals must conform to the section format described in Section 4.3. In addition Final Proposals shall include a Section 4, which is the Price Proposals. The Proposer shall submit all requested pricing information. Failure to submit all requested pricing information may result in the Qualified Proposer’s proposal being considered materially non-responsive. Each Proposer must hold its price(s) firm through issuance of contract to permit the completion of the evaluation of proposals received and the contract award process. All prices must be indicated in US dollars. The State is interested in proposals which are mutually beneficial and in which the Proposer receives payment in proportion to the value and timing of additional State revenue generated from the Business Opportunities proposed (and ultimately developed into Defined Business Intelligence Applications). 61 Proposers are to review carefully the instructions below for the Final Proposal Price Proposal Form when completing the Price Proposals. Instructions for Final Proposal Price Proposal Form The Price Proposal Form is the price portion of the Final Proposal. It must be submitted ONLY with the Final Proposal and must be submitted in a separate sealed envelope from the Final Proposal. Column B: The “Total Estimated Additional State Revenue” must match the “Total Additional Revenue” shown in the “Cost and Benefit Worksheets” for each Opportunity. The Qualified Proposer is to show its additional estimated State Revenue for each year for each Opportunity Project. The Proposer should also submit evidence on a separate sheet of how it arrived at the estimate. Such evidence will be used to judge the reasonableness of the estimate. Column C: The “Total Proposed Price” is the price that the Qualified Proposer is submitting as its binding offer for each year for each Opportunity Project. Column D: The “Total Proposed Price” expressed as a percentage of Column B. Column E: If Actual Additional State Revenue for each opportunity year is greater than 125% of Column B, the Business Partner will receive its Price as shown in Column C, plus the percent shown in Column E times the Difference of Column B and 1.25 times Column B. Column F: If Actual Additional State Revenue for each opportunity year is less than 75% of Column B, Business Partner will receive an amount equal to Column C, reduced by the product of Column F times Column C. Note 1: If Actual Additional State Revenues are equal to or greater than 75% of Column B and equal to or less than 125% of Column B, Business Partner will receive its Price with neither premium nor reduction amount. Note 2: If Actual Additional State Revenue for each opportunity year is less than 75% of Column B, Business Partner will receive an amount equal to Column C, reduced by the product of Column F times Column C. Note 3: If Actual Additional State Revenue for each opportunity year is greater than 125% of Column B, the Business Partner will receive its Price as shown in Column C, plus the percent shown in Column E times the Difference of Column B and 1.25 times Column B. Note 4: "Additional" means revenue that results from the TDW Project. Note 5: Yellow highlight indicates data entry cells for Proposer. Note 6: Grey highlight indicates calculated or no entry cells. 4.4.1 Third-Party Software Licenses All third party proprietary software in the Qualified Proposer’s solution must be identified. Function(s) performed and ownership and licensing issues shall be clearly identified. Any/all costs related to proprietary system software must be included in the Qualified Proposer’s Price Proposal, including the DBMS licenses, utilities, etc. Proposers are cautioned not to include PC’s as part of their proposal. 62 4.4.2 Provided Facilities and Travel-Related Costs The State will provide office space for Business Partner and State staff, local telephone access, Internet access, and copying and fax capabilities for routine, project-related materials. The Business Partner must provide its own parking, personal computers, printers, and administrative support for its staff. The State will not pay for any travel or any other costs (car rental, hotel, etc.) to, from, or within New Jersey. 4.4.3 Price Proposal Example Worksheet Section 7.0 contains an example of a Price Proposal Form. Proposers should refer to the example for guidance in preparing their Final Proposal Price Proposal Forms. While the State is providing Qualified Proposers with the example, the accuracy of the Price Proposal submitted is the sole responsibility of the Proposer. 4.4.3.1 Final Proposal Evaluation Criteria The following evaluation criteria categories, not necessarily listed in order of significance, will be used to evaluate Final Proposals. 4.4.3.1.1 Overall Responsiveness of the Proposal Overall responsiveness of the proposal includes: General approach and plans in meeting the requirements of this RFP; Detailed approach and plans to perform the services required by the Scope of Work; Demonstrated understanding of the scope and the requirements of the project; Alignment with State’s strategic directions; Overall ability to mobilize, undertake and successfully complete the contract; Ease of product use; Ease of product implementation; Ease of product operation and maintenance. 4.4.3.1.2 Costs and Approaches to Financing Cost and approaches to financing include: Ability to detail direct costs and alternatives; Payback period; Ability to substantiate the projected revenue; Probability that proposed solution will result in projected revenue increase; Soundness of approach to financing business solution; Best value to the State when proposals are compared with one another where “best value” is defined as: The best overall package, taking into account the estimated revenue and cost to the Business Partner and the State, and the share of the revenue the Proposer proposes to charge the State for its solution. 4.4.3.1.3 Suitability of Proposed Staff (including subcontractors) Suitability of proposed staff, includes: Degree of experience with software development and implementation; Degree of experience with systems development and implementation; Degree of experience within tax processing environments. 63 4.4.3.1.4 Project Manager Experience Project Manager experience with comparable information technology systems includes: Developing/implementing knowledge-based, browser-based client/server applications; Data Warehousing and Business Intelligence concepts and tools; Tax environments; Project management of large-scale systems; Change management; Partnering with clients; Effective communication and knowledge transfer. 64 5.0 RESPONSIBILITIES OF STATE AND BUSINESS PARTNER This cooperative partnership will provide the opportunity to incorporate the expertise and knowledge of the Proposers into the design of the new Taxation Data Warehouse. The potential Business Partners will work with the State to determine the requirements and to design and develop the new system. Primary responsibility in these areas will rest with the Business Partner. As success of the proposed solution is dependent on the Business Partner’s ability to understand and meet the State’s business needs, the State expects the selected Business Partner to share in the risks of successfully developing and implementing the new system. 5.1 5.1.1 Qualifications Phase Responsibilities Responsibilities of the State 5.1.1.1 State Organization for the Project The Division of Taxation will develop a project organization to direct, manage and support the TDW implementation project. The organization will consist of the following: Project Steering Committee; TDW Project Team; TDW Project Manager. 5.1.1.1.1 TDW Project Steering Committee The Director of Taxation will establish a Steering Committee comprised of individuals selected from among the system stakeholders. The Steering Committee will have overall responsibility for the project. The Division of Taxation will chair it. The Steering Committee will designate a Project Manager who will represent it in all project-related matters. 5.1.1.1.2 TDW Project Team The TDW Project Team will have no direct responsibility for deliverables designated as the responsibility of the Business Partner. However, because it is the intent of the State to maintain the TDW solution, the Business Partner must develop and implement an involvement and knowledge transfer strategy which will afford TDW Project Team members an opportunity to begin training early in the life cycle of the project, with the stated purpose of progressively learning the system. The TDW Project Team will be responsible for: Daily management of the project in conjunction with a Business Partner; Developing, in conjunction with the Business Partner, the project charter, project work plan and periodic project status reports; Monitoring project progress; Reporting on the project schedule; Coordinating with the selected Business Partner as a peer to the Business Partner’s project manager; Communicating with the Division of Taxation Director and TDW Steering Committee; Coordinating with Business Partner staff; Communicating with managers, supervisors and staff within the Division of Taxation as needed to ensure a successful development and implementation; Coordinating with the Business Partner during system implementation; Documenting business rules and other aspects of the current environment that must be communicated to the Business Partner; Participating in knowledge transfer with the Business Partner; Other duties as needed. 65 5.1.2 Responsibilities of Business Partner 5.1.2.1 Business Partner Qualifications Confidentiality and Non-Disclosure Agreement In order to gain entry to the Interview and Information Review Room, the Proposer must sign the “Confidentiality and Non-Disclosure Agreement” (Appendix 1) but in any event, must have executed the Agreement no later than the Mandatory Pre-Proposal Conference. 5.2 5.2.1 Proposal Development Phase Responsibilities Responsibilities of State 5.2.1.1 State's General Responsibilities During the Proposal Development Phase of the project, State agrees to provide the Proposer with access to the following: General or detailed overviews of the current State systems; Access to relevant State system documentation and manual procedures; Walk-throughs and tours of State's current tax processing operations; Access to relevant Division of Taxation operations documentation; Business experts who are knowledgeable in Division of Taxation functional operations; Technical experts who are knowledgeable about the Division of Taxation technical environment; Access to other information needs as mutually agreed. 5.2.1.2 State Assistance and Facilities There will be a limited access to State resources available during this phase and that time will be fairly allocated among the Proposers. The State will agree to provide the following to the Proposers: An Interview and Information Review Room (with no phone), which will need to be scheduled among the Proposers. Parking is not provided and shall be the responsibility of the Proposers. Parking may be available on streets near the Division of Taxation; however, the State can make no guarantees regarding street parking. The Division of Taxation will issue Proposer staff a security-access badge that will allow them to access the Division of Taxation. The Proposer shall be ultimately responsible for badges issued to its staff and shall issue the Division of Taxation a $15.00 credit for any security access badges that are not returned. The $15.00 is the cost of replacement of the access card. 5.2.1.3 State TDW Project Manager Responsibilities During the Proposal Development phase of the project, the State TDW Project Manager will ensure that the potential Partners’ informational requirements and access to resources are met where appropriate. The TDW Project Manager, supported by the TDW Project Team, will work with the potential Partners to coordinate information needs, coordinate access to appropriate resources, arrange all necessary meetings with staff personnel, and assist the potential Business Partners in understanding the State’s strategic directions and requirements. Proposers are cautioned that the Division of Taxation is unable to grant unlimited access, and still perform its business operations satisfactorily. The State TDW Project Manager will set aside a minimum of one day per week for each Proposer to meet with knowledgeable personnel. In order to assure the Division’s ability to produce the appropriate staff, Proposers are required to identify in advance the program area(s), they wish to explore with State personnel. All requests for meetings must be made through Laura Cook at (609) 292-7288. 66 Proposers may request documents not included in the Interview and Information Review Room provided that adequate notice is given for the State TDW Project Manager to secure such documents. 5.2.2 Responsibilities of Qualified Proposers 5.2.2.1 Partner Proposal Confidentiality and Non-Disclosure Agreement Any employee, officer, agent, or representative of the Qualified Proposer, whose duties require access to confidential data or information, or to any equipment or device, which contains such data, or information, shall sign a copy of the Confidentiality and Non-Disclosure Agreement (Appendix 1). 5.2.2.2 Qualified Proposers Development Plan During the Proposal Development phase of the project, Qualified Proposers will be given limited access to agency staff and documentation, coordinated by the State TDW Project Manager. To ensure availability of needed resources while limiting disruption of ongoing agency processes, the Qualified Proposer will submit a plan outlining how it will approach the Proposal Development phase. This plan must be submitted to the State within two weeks of date of notification of qualification. The plans must set forth the Qualified Proposer’s resource requirements of the State, including the needed areas of expertise. This plan will outline anticipated needs and time frames, as well as the number of personnel the Qualified Proposer plans to have on-site and for what periods of time. Validation of agency requirements must be included as a step in the plan. The State will make every effort to respond effectively to the Qualified Proposer’s requirements as specified in the plan. Changes to the plan should be communicated with as much advance notice as possible, to allow the State to respond effectively. 5.2.2.3 Partner Proposal of Appropriate Resources The State expects the Business Partner to bring significant technical and business expertise to this project. It is anticipated that the selected Business Partner may utilize the knowledge, expertise, and technology and hardware solutions of a number of other firms to ensure that the solutions proposed are the best possible solutions. The proposals must convince the State that the Qualified Proposer and its subcontractors have available all qualified resources required to perform successfully under the contract, including personnel, equipment, development software, licenses, financial resources and experience. 5.3 5.3.1 Systems Development Phase Responsibilities of the State 5.3.1.1 State Assistance Once a proposal, and consequently a single Business Partner, has been selected, the State TDW Project Team will continue to support the information needs of the Business Partner. 5.3.1.2 State TDW Project Manager Responsibilities During the System Development phase, the State TDW Project Manager will meet daily with the Business Partner to evaluate the status of the project, review all draft material and deliverables, coordinate access to appropriate resources and arrange all necessary meetings with staff personnel. The State TDW Project Manager will be responsible for assuring that the overall technical approach for the project is sound and is meeting the requirements, for coordinating all workplans and reviewing and responding to deliverables. The State TDW Project Manager also will be responsible for ensuring that the State’s technical staff is adequately involved and trained in all aspects of the project so that it is fully capable of assisting with the development of the new system and assuming support of the implemented system. 67 5.3.1.3 State Assistance and Facilities The State will continue to support the information needs of the Business Partner in a timely manner during the System Development phase. Additionally, the State will support the space requirements of the Business Partner as feasible within existing State facilities. 5.3.1.4 Access to State Mainframe The State mainframe contains the majority of the operational applications of the Division of Taxation. The Business Partner will not be given access to these systems and files, but will be promptly provided information and files in accordance with the partner relationship that the State wishes to establish. During the preparation of Draft and Final Proposals, Qualified Proposers will be provided with file information relevant to their proposals (to the extent that these are available). During implementation, a mutually agreed upon schedule and list of extract files will be promptly provided upon request. 5.3.2 Responsibilities of Business Partner 5.3.2.1 Partner Supplies and Expenses The Business Partner awarded this project will be responsible for the following: All copying costs, printer and copying paper, computer diskettes, folders, dividers, binders and office supplies; All transportation to and from the physical sites of State; All long distance telephone charges; All long distance fax charges. 5.3.2.2 Business Partner Demonstrations and Prototyping The Business Partner will provide demonstrations or prototyping of the most feasible technologies or combinations of technologies for implementing the proposed system. The Business Partner may provide/arrange visits to organizations where similar technologies have been implemented. 5.3.2.3 Business Partner Solution Standards OIT has promulgated a series of standards that relate directly to the development and implementation of information systems in New Jersey. The Business Partner must comply with all existing standards, as well as future standards as they are released. These standards are available on the OIT web site at www.state.nj.us/IT/index.html. The Business Partner will work with the State staff throughout the project life cycle to ensure that the system meets Division of Taxation security, confidentiality and integrity objectives. The system must conform to all federal (Internal Revenue Service) security and confidentiality requirements, specifically regarding the storage and efficient utilization of federal tax information. 5.3.2.4 Business Partner Hardware and Software Planning, Acquisition and Installation The Partner will be responsible for recommending, procuring, providing, and installing all hardware and software proposed to meet the requirements of this RFP. The selected Partner will act as a prime contractor responsible for coordinating the purchase, delivery and integration of all proposed hardware and software. In addition, the Business Partner will be responsible for establishing all licenses, warranties and service and maintenance agreements for the hardware and software. 68 The Business Partner will work with the State to perform the following tasks: Facilities planning for equipment installation (electrical requirements, wiring, ventilation and other special considerations); Coordinating equipment installation schedules; Arranging delivery, uncrating, installation and equipment setup; Performing any installation testing and equipment checking; Integrating all equipment. The hardware and software will belong to the Division of Taxation upon installation and acceptance by the State. 5.3.2.5 Business Partner Equipment: Workstations The potential Business Partner will work with the State to determine the minimum number of workstations and configurations to achieve desired benefits and revenue increases. The Business Partner then may provide, in increments, additional “value added” workstations. The number of workstations to be acquired will be determined by project economics. All workstations must meet or exceed State standards (see: Current Division of Taxation Desktop PC Procurement Standard below). 5.3.2.5.1 Current Division of Taxation Desktop PC Procurement Standard Specification Base Unit: Memory: Keyboard: Monitor: Video Card: Hard Drive: Floppy Disk Drive: Operating System: Mouse: NIC: CD-ROM or DVD-ROM Drive: Sound Card: Speakers: Documentation Diskette: Factory Installed Software: Service: Service: Installation: Miscellaneous: Miscellaneous: Description Dell OptiPlex GX270T, 2.60GHz, P4, 800 FSB, 512K Cache, Small Minitower Base (221-2809) 512MB, Non-ECC, 333MHz DDR, 2x256, GX270/SX270 (311-2864) Dell PS/2 Keyboard in Gray, NoHot Keys, Optiplex (310-1515) Dell M782,16.0 Inch Viewable Image Size, Flat CRT, OptiPlex, Gray (320-0178) Integrated Video: Intel DVMT,GX260/GX270 (320-0428) 40GB EIDE, 7200 RPM, ATA/100 Hard Drive, GX260 (340-8889) 3.5 inch, 1.44MB, Floppy DriveGX270 (340-8733) Windows 2000 Professional Service Pack 3,NTFS, with MediaDell OptiPlex, English, Factory Install (420-1558) Dell PS/2 2-Button Mouse, Scroll, OptiPlex, Gray (310-8307) Integrated Intel Gigabit NIC, 10/100/1000, with Alert Standards Format, GX260/GX270 (430-0353) 48X CDRW/DVD Combo, with RoxioEasy CD Creator and DVD DecodeGX260 and GX270 (313-1740) Integrated Sound Blaster Compatible AC97 Sound, OptiPlex (313-8170) Altec Lansing ADA215 Speakers, Latitude or OptiPlex, Gray (313-4703) OptiPlex Resource CD (313-7168) Energy Star Labeling (if applicable) (310-6413) Type 3 Contract: Next Business Day Parts and Labor On-Site Response, Initial Year (900-6630) Type 3 Contract: Next Business Day Parts and Labor On-Site Response, 2YR Extended (900-6602) Standard On-Site Installation Declined (900-9987) CFI Order Ready Asset Tag 5 (365-1390) Serial Port Adapter, Full Height, GX260 and GX270 Small Desktop/Small Minitower (310-1675) 69 5.3.2.6 Business Partner Equipment: Training The Business Partner is also responsible for providing all training required in the use of the equipment by State personnel including but not limited to: basic operation, troubleshooting, preventive maintenance, customization and other training deemed relevant. 5.3.2.7 Training Responsibilities of the Business Partner The Business Partner shall: Define the training required for all users of the proposed system including user training, operational training, and system support training. Develop a training plan that includes training curriculum, training manuals, class outlines and schedules, interactive training, training aids and a trainer's guide. Provide all training manuals. Incorporate suggested changes made by the Division of Taxation for future use. The Business Partner may propose alternative training, for example, computer-based training. Provide Technical and Operational Training The Business Partner must train State staff to operate in the technical and maintenance aspects of the system. 70 6.0 6.1 SPECIAL TERMS AND CONDITIONS Precedence of Special Terms and Conditions The contract shall consist of this RFP, addenda to this RFP, the Proposer’s proposal, and the Division's Notice of Award. Unless specifically noted within this RFP, the Special Terms and Conditions, take precedence over the Standard Terms and Conditions. In the event of a conflict between the provisions of this RFP, including the Standard Terms and Conditions and the Special Terms and Conditions, and any addendum to the RFP, the addendum shall govern. In the event of a conflict between the provisions of this RFP, including any addendum to this RFP, and the Proposer’s proposal, the RFP and/or the addendum shall govern. 6.2 Performance Bond This section supplements Section 3.3b of the Standard Terms and Conditions. A performance bond is required. The amount of the performance bond is noted on the RFP cover sheet. The performance bond must be posted within thirty (30) days of the effective date of the contract award. The performance bond must remain in full force and effect for the term of the contract and any extension thereof. 6.3 Business Registration See Standard Terms & Conditions, Section 1.1. 6.4 Contract Term and Extension Option The term of the contract shall be for a period of five (5) years. The contract may be extended for two (2) additional periods of up to one (1) year, each by mutual written consent of the contractor and the Director at the same terms, conditions and pricing. Should the contract be extended, the contractor shall be paid at the rates in effect in the last year of the contract. 6.5 Contract Transition In the event services end by either contract expiration or termination, it shall be incumbent upon the contractor to continue services, if requested by the Director, until new services can be completely operational. The contractor acknowledges its responsibility to cooperate fully with the replacement contractor and the State to ensure a smooth and timely transition to the replacement contractor or to the State if the State assumes those duties. Such transitional period shall not extend more than one year beyond the expiration date of the contract, or any extension thereof. The contractor will be reimbursed for services during the transitional period at the rate in effect when the transitional period clause is invoked by the State. 6.6 Availability of Funds The State's obligation to pay the contractor is contingent upon the availability of appropriated funds from which payment for contract purposes can be made. No legal liability on the part of the State for payment of any money shall arise unless funds are made available each fiscal year to the Using Agency by the Legislature. 71 6.7 Contract Addendum Any changes or modifications to the terms of the contract shall only be valid when they have been reduced to writing and executed by the contractor and the Director. 6.8 Contractor Responsibilities The contractor shall have sole responsibility for the complete effort specified in the contract. Payment will be made only to the contractor. The contractor shall have sole responsibility for all payments due any subcontractor. The contractor is responsible for the professional quality, technical accuracy and timely completion and submission of all deliverables, services or commodities required to be provided under the contract. The contractor shall, without additional compensation, correct or revise any errors, omissions, or other deficiencies in its deliverables and other services. The approval of deliverables furnished under this contract shall not in any way relieve the contractor of responsibility for the technical adequacy of its work. The review, approval, acceptance or payment for any of the services shall not be construed as a waiver of any rights that the State may have arising out of the contractor’s performance of this contract. 6.9 Substitution of Staff If it becomes necessary for the contractor or subcontractor to substitute any management, supervisory or key personnel, the contractor will identify the substitute personnel and the work to be performed. The contractor must provide detailed justification documenting the necessity for the substitution. Resumes must be submitted evidencing that the individual(s) proposed as substitution(s) have qualifications and experience equal to or better than the individual(s) originally proposed or currently assigned. The contractor shall forward a request to substitute staff to the State Project Manager for consideration and approval. No substitute personnel are authorized to begin work until the contractor has received written approval to proceed from the State Project Manager, whose approval shall not be unreasonably withheld. 6.10 Substitution or Addition of Subcontractor(s) This Subsection serves to supplement but not to supersede Section 3.11 of the Standard Terms and Conditions of this RFP. If it becomes necessary for the contractor to substitute and/or add a subcontractor, the contractor will identify the proposed new subcontractor and the work to be performed. The contractor must provide detailed justification documenting the necessity for the substitution or addition. The contractor must provide detailed resumes of the proposed subcontractor’s management, supervisory and other key personnel that demonstrate knowledge, ability and experience relevant to that part of the work that the subcontractor is to undertake. In the event a subcontractor is proposed as a substitution, the proposed subcontractor must equal or exceed the qualifications and experience of the subcontractor being replaced. In the event the subcontractor is proposed as an addition, the proposed subcontractor’s qualifications and experience must equal or exceed that of similar personnel proposed by the contractor in its proposal. The contractor shall forward a written request to substitute or add a subcontractor to the State Project Manager for consideration. If the State Project Manager approves the request, the State Project Manager will forward the request to the Director for final approval. 72 No substituted or additional subcontractors are authorized to begin work until the contractor has received written approval from the Director. 6.11 Ownership of Material All data, technical information, materials gathered, originated, developed, prepared, used or obtained in the performance of the contract, including, but not limited to, all reports, surveys, plans, charts, literature, brochures, mailings, recordings (video and/or audio), pictures, drawings, analyses, graphic representations, software computer programs and accompanying documentation and print-outs, notes and memoranda, written procedures and documents, regardless of the state of completion, which are prepared for, or are a result of, the services required under this contract shall be, and remain, the property of the State of New Jersey and shall be delivered to the State of New Jersey upon 30 days notice by the State. With respect to software computer programs and/or source codes developed for the State, the work shall be considered “work for hire”, i.e., the State, not the contractor or subcontractor, shall have full and complete ownership of all software computer programs and/or source codes developed. To the extent that any of such materials may not, by operation of law, be a work “made for hire” in accordance with the terms of this Agreement, contractor or subcontractor hereby assigns to the State all right, title and interest in and to any copyright, and the State shall have the right to obtain and hold in its own name any copyrights, registrations and any other proprietary rights that may be available. Should the Proposer anticipate bringing pre-existing intellectual property to perform any of the services required under the contract into the project, the intellectual property must be identified in the proposal. Otherwise, the language in the first two paragraphs of this section shall prevail. If the Proposer identifies such intellectual property ("Background IP") in its proposal, then the Background IP owned by the Proposer on the date of the contract, as well as any modifications or adaptations thereto, shall remain the property of the Proposer. Upon contract award, the Proposer or contractor shall grant the State a perpetual non-exclusive, royalty free license to use any of the Proposer/contractor's Background IP delivered to the State for the purposes contemplated by the Contract. With respect to Commercial-Off-The Shelf (Third-Party) source code, it is the intent of the State to retain a non-exclusive, perpetual and unrestricted right of use. The State intends to maintain the software for use only by State government of New Jersey. The State acknowledges that it has no right to sell or distribute such software. 6.12 Data Confidentiality All financial, statistical, personnel and/or technical data supplied by the State to the contractor are confidential. All records and files obtained from the Division of Taxation are confidential pursuant to N.J.S.A. 54:50-8 and shall not be disclosed, used for personal advantage or examined for any reason other than a reason necessitated by the performance of the duties outlined in this RFP. Any person found to violate the confidentiality set forth at N.J.S.A. 54:50-8 shall be subject to the penalties set forth therein. Accordingly, for this information, the contractor is required to use the appropriate standard of care to protect against disclosure of such records and files. With respect to all other confidential information, the contractor is required to use that same standard of care as it uses to protect the confidentiality of its own confidential data. All parties interested in submitting a proposal must have all authorized personnel who may have access to confidential information sign a Confidentiality and Non-Disclosure Agreement (Appendix 1 to this RFP). The contractor is required to use that same standard of care as it uses to protect the confidentiality of its own confidential data. Any use, sale or offering of this data in any form by the contractor, or any individual or entity in the contractor’s charge or employ, will be considered a violation of this contract and may result in contract termination and the contractor’s suspension or debarment from State contracting. In addition, such conduct may be reported to the State Attorney General for possible criminal prosecution. 73 6.13 News Releases The contractor is not permitted to issue news releases pertaining to any aspect of the services being provided under this contract without the prior written consent of the Director. 6.14 Advertising The contractor shall not use the State’s name, logos, images, or any data or results arising from this contract as a part of any commercial advertising without first obtaining the prior written consent of the Director. 6.15 Licenses and Permits The contractor shall obtain and maintain in full force and effect all required licenses, permits, and authorizations necessary to perform this contract. The contractor shall supply the State Contract Manager with evidence of all such licenses, permits and authorizations. This evidence shall be submitted subsequent to the contract award. All costs associated with any such licenses, permits and authorizations must be borne by the Proposer and be considered by the Proposer in its proposal. 6.16 Claims and Remedies 6.16.1 Claims All claims asserted against the State by the contractor shall be subject to the New Jersey Tort Claims Act, N.J.S.A. 59:1-1, et seq., and/or the New Jersey Contractual Liability Act, N.J.S.A. 59:13-1, et seq. 6.16.2 Remedies Nothing in the contract shall be construed to be a waiver by the State of any warranty, expressed or implied, or any remedy at law or equity, except as specifically and expressly stated in a writing executed by the Director. 6.16.3 Remedies for Non-Performance In the event the contractor fails to comply with any material contract requirement, the Director may take steps to terminate the contract in accordance with the State Administrative Code. In this event, the Director may authorize the delivery of contract items by any available means, with the difference between the price paid and the defaulting contractor’s price either being deducted from any monies owed to the defaulting contractor or being an obligation owed the State by the defaulting contractor. In the event of contract termination, any receipts received by the State after the date of termination as a result of Business Partner efforts shall not be shared with the contractor. 6.17 Deficient Performance The contractor must immediately advise the State Contract Manager of any circumstance or event that could result in deficient performance of any task or subtask called for to be completed on a date certain. Notification must also be provided to the Director at the address below: The State of New Jersey Director, Division of Purchase and Property Purchase Bureau P.O. Box 230 33 West State St. Trenton, NJ 08625-0230 74 If the contractor cannot meet the contract performance for any task or subtask required to be completed by a date certain, the contractor shall be liable to the State, and the Business Partner shall compensate the State for loss for damages incurred. State reserves the right to seek damages for failure of Business Partner to perform as per agreed upon revenue schedule. 6.18 Retainage The amount of retainage is noted on the RFP cover sheet (Page 3 of this RFP). Once revenue begins to be generated as a result of the TDW Project, the Using Agency shall retain the stated percentage of each invoice submitted. At the end of each three (3) month period, the using agency shall review the contractor's performance. If performance has been satisfactory, the Using Agency shall release 90% of the retainage for the preceding three (3) month period. Following certification by the State Contract Manager that all services have been satisfactorily performed the balance of the retainage shall be released to the contractor. 6.19 Changes to Scope of Work The parties may mutually agree to change terms and scope of work for any task or subtask called for under this contract. In the normal course of design and implementation of the TDW project, changes to the Scope of Work may arise, including the identification of additional and/or alternative programs that may provide more appropriate, immediate, or substantive benefits to the State. All parties (State and Business Partner) agree to negotiate in good faith an amendment to the contract that incorporates an addition and/or change to Benefit and Payment calculations arising from any change to the Scope of Work. 6.20 Suspension of Work The State Contract Manager may, for valid reasons, issue a Stop Order directing the contractor to suspend work under the contract for a specific time. The contractor shall be paid until the effective date of the Stop Order. The contractor shall resume work upon the date specified in the Stop Order, or upon such other date as the State Contract Manager may thereafter direct in writing. The period of suspension shall be deemed added to the contractor's approved schedule of performance, effectively extending the contract end date. The Director and the contractor shall negotiate an equitable adjustment, if any, to the contract price. 6.21 Change in Law Whenever an unforeseen change in applicable law or regulation affects the services that are the subject of this contract, the contractor shall advise the State Contract Manager and the Director in writing and include in such written transmittal any estimated increase or decrease in the cost of its performance of the services as a result of such change in law or regulation. The Director and the contractor shall negotiate an equitable adjustment, if any, to the contract price. 6.22 6.23 Contractor Price Increase (Prevailing Wage) – Not applicable to this procurement. Additional Work and/or Special Projects The contractor shall not begin performing any additional work or special projects without first obtaining written approval from both the State Project Manager and the Director. In the event of additional work and/or special projects, the contractor must present a written proposal to perform the additional work to the State Project Manager. The proposal should provide justification for the 75 necessity of the additional work. The relationship between the additional work and the base contract work must be clearly established by the contractor in its proposal. The contractor’s written proposal must provide a detailed description of the work to be performed broken down by task and subtask. The proposal should also contain details on the level of effort, including hours, labor categories, etc., necessary to complete the additional work. The written proposal must detail the cost necessary to complete the additional work in a manner consistent with the contract. The written Price Proposal must be based upon the hourly rates, unit costs or other cost elements submitted by the contractor in the contractor’s original proposal submitted in response to this RFP. Upon receipt and approval of the contractor’s written proposal, the State Project Manager shall forward it to the Director for the Director’s written approval. Complete documentation from the Using Agency, confirming the need for the additional work, must be submitted. Documentation forwarded by the State Contract Manager to the Director must include all other required State approvals, such as those that may be required from the State of New Jersey’s Office of Management and Budget (OMB) and OIT. No additional work and/or special project may commence without the Director’s written approval. In the event the contractor proceeds with additional work and/or special projects without the Director’s written approval, it shall be at the contractor’s sole risk. The State shall be under no obligation to pay for work performed without the Director’s written approval. 6.24 Form of Compensation and Payment This Section supplements Section 4.5 of the RFP’S Standard Terms and Conditions. The Business Partner must submit official State invoice forms to the Using Agency (Division of Taxation) with supporting documentation evidencing that work for which payment is sought has been satisfactorily completed. Invoices must reference the tasks or subtasks detailed in the Scope of Work section of the RFP and must be in strict accordance with the firm, fixed prices submitted for each task or subtask on the RFP Price Proposal worksheet. When applicable, invoices should reference the appropriate RFP Price Proposal Worksheet line number from the Proposer’s proposal. All invoices must be approved by the State Contract Manager before payment will be authorized. For this TDW Project, the Business Partner shall invoice the State upon determination of the actual additional revenue received by the State for each Opportunity Project for each year based upon TDWidentified tax cases tracked through TULIPS. The Business Partner may invoice monthly upon revenue collection for a given opportunity in proportion to revenue being collected up to 75% of the Estimated Additional Revenue. In the event the Actual Additional Revenue does not reach 75% of the Estimated Additional Revenue for the opportunity year, then the Business Partner may invoice for the remaining amount less the penalty at the end of the opportunity year. Once 75% of the Estimated Additional Revenue has been received by the State for a given Opportunity Project for a given year, the Business Partner may invoice the balance to match its Proposal Price compensation for that Opportunity Project for that year. Once 125% of the Estimated Additional Revenue has been received by the State for a given Opportunity Project for a given year, the Business Partner may invoice for its maximum compensation for that Opportunity Project for that year. Invoices must also be submitted for any special projects, additional work or other items properly authorized and satisfactorily completed under the contract. Invoices shall be submitted according to the payment schedule agreed upon when the work was authorized and approved. Payment can only be made for work when it has received all required written approvals and has been satisfactorily completed. 76 6.25 Insurance Requirements This section shall replace in its entirety Section 2.3 of the Standard Terms and Conditions: INSURANCE: The Contractor shall procure and maintain at its own expense, until at least two years after the completion of all work performed under the Contract, extensions and/or modifications thereto, liability insurance for damages imposed by law and assumed under the Contract, of the kinds and in the amounts hereinafter provided, from insurance companies admitted or approved to do business in the State of New Jersey. By submitting a proposal in response to the Agency Request, the Contractor expressly agrees that any insurance protection required herein or by the Contract shall in no way limit the Contractor’s obligations assumed in the Contract and shall not be construed to relieve the Contractor from liability in excess of such coverage nor shall it preclude the State from taking such other actions as are available to it under other provisions of the Contract or otherwise in law or equity. 1) The required types and minimum amount of insurance are as follows: a) Comprehensive General Liability Insurance: Comprehensive General Liability Insurance policy shall name the State and/or Agency, their officers and employees as additional insureds. The coverage to be provided under this policy shall be at least as broad as the standard, basic, unamended and unendorsed comprehensive general liability policy and shall include contractual liability coverage. The minimum limits of liability for this insurance shall be as follows: Bodily Injury Liability: Each Occurrence: Property Damage Liability: Each Occurrence: Each Person: $1,000,000 $5,000,000 Each Person: $1,000,000 $5,000,000 b) Comprehensive Automobile Liability Insurance: The Comprehensive Automobile Liability Insurance policy shall name the State and/or Agency, their officers and employees as additional insureds. The Comprehensive Automobile Liability policy shall cover owned, non-owned, leased, rented and hired vehicles with minimum limits as follows: Bodily Injury and Property Damage Liability: Each Person: $ 1,000,000 Each Occurrence: $3,000,000 c) Workers’ Compensation and Employers’ Liability: Workers’ Compensation Insurance shall be provided in accordance with the requirements of the laws of this State and shall include an New Jersey Division of Purchase and Property Standard Terms and Conditions - Services Contracts endorsement to extend coverage to any state which may be interpreted to have legal jurisdiction. Employers’ Liability Insurance shall be provided with a limit of liability of not less than: Bodily Injury: Each Occurrence: Disease (each employee): Disease (aggregate limit): $500,000 $500,000 $500,000 $1,000,000 d) Professional Liability Insurance: The Contractor shall carry Errors and Omissions, Professional Liability Insurance and/or Professional Liability Malpractice Insurance sufficient to protect the Contractor from any liability arising out the professional obligations performed pursuant to the requirements of the Contract. The insurance shall be in the amount of not less than $5,000,000 and in such policy forms as shall be approved by the State. If the Contractor has claims-made coverage and subsequently changes carriers during the term of the Contract, it shall obtain from its new Errors and Omissions, Professional Liability Insurance and/or Professional Malpractice Insurance carrier an endorsement for retroactive coverage. 77 2) The Contractor shall, prior to commencement of the work required under the Contract, provide the Director with a valid original Certificates of Insurance (and a copy thereof to the Agency) as evidence of the Contractor’s insurance coverage in accordance with the foregoing provisions. Such certificates of insurance shall specify that the insurance provided is of the types and is in the amounts required in 1(a), (b), (c) and (d) above. The certificates shall provide for sixty (60) days written notice to the Director and Agency prior to any cancellation, expiration or non-renewal of insurance during the term required in the Contract, extensions and/or modifications thereto. The Contractor shall further be required to provide the Director with valid original certificates of renewal of the insurance (and a copy thereof to the Agency) upon the expiration of the policies. The Contractor shall also, upon request, promptly provide the Division and/or Agency with copies of each policy required under these Standard Terms and Conditions and the Contract, certified by the agent or underwriter to be true copies of the policies provided to the Contractor. All certificates and copies of insurance policies shall be forwarded to the State’s address as listed herein. In the event that the Contractor provides evidence of insurance in the form of certificates of insurance valid for a period of time less than the period during which the Contractor is required by the terms of these Standard Terms and Conditions and the Contract to maintain insurance, i.e. two (2) years after the expiration of the Contract, said certificates shall be acceptable, but the vender shall be obligated to renew its insurance policies as necessary and to provide new certificates of insurance from time to time, so that the Agency is continuously in possession of evidence of the Contractor’s insurance in accordance with the foregoing provisions. In the event the Contractor fails or refuses to renew any of its insurance policies as necessary, or any policy is canceled, terminated or modified so that the insurance does not meet the requirements of these Standard Terms and Conditions or the Contract, the State and/or Agency may refuse to make payment of any further amounts due under the Contract or refuse to make payments due or coming due under other agreements between the Contractor and the State. The State, in its sole discretion, may use funds retained under this paragraph to renew the Contractor’s insurance for the periods and amounts referred to above. During any period when the required insurance is not in effect, the Director may, at the Director’s option, either suspend work under the Contract or proceed to default the Contractor and thereby rescind the contract award. 78 7.0 ATTACHMENTS AND APPENDICES Signature Page for Proposer's Response Attached is the Proposer’s official response to the State of New Jersey solicitation number 05-X-36861, entitled, "Taxation Data Warehouse, Partnership Development of a". This response from the Proposer represents the Project Draft or Final Proposal , dated ____/____/________. As the authorized responder for this firm, I acknowledge receipt of and have reviewed the following documents: State of New Jersey Request for Proposal 05-X-36861 entitled, "Taxation Data Warehouse, Partnership Development of a" All addenda to the referenced Request for Proposal. I hereby submit the attached proposal to enter into a Business Partner relationship with the State of New Jersey pursuant to the requirements and terms and conditions of the referenced RFP and any addenda. Signature of Authorized Representative: Dated: Printed Name of Authorized Representative: Title of Authorized Representative: Official Corporation or Company Name: FEIN: Mailing Address: City, State, Zip Code: Telephone Number: Fax number: E-mail Address: 79 OPPORTUNITY PROJECT NAME: OPPORTUNITY PROJECT A Development Services Project Management System Requirements System Design System Development Training System Implementation Total Professional Services Goods and Services Hardware COTS Software Other (specify on attached sheet) Total Goods and Services Total Costs of One-time Services Maintenance Services Annual Maintenance Management Annual Training Other (specify on attached sheet) Total Maintenance Services Estimated Benefit from Additional Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Total Additional Revenue Annual Benefit No. of Employees No. of Hours Annual Costs Annual Costs One-time Costs No. of Employees No. of Hours One-time Costs Proposer Company Name Proposer Authorized Representative Signature 80 OPPORTUNITY PROJECT NAME: OPPORTUNITY PROJECT B Development Services Project Management System Requirements System Design System Development Training System Implementation Total Professional Services Goods and Services Hardware COTS Software Other (specify on attached sheet) Total Goods and Services Total Costs of One-time Services Maintenance Services Annual Maintenance Management Annual Training Other (specify on attached sheet) Total Maintenance Services Estimated Benefit from Additional Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Total Additional Revenue Annual Benefit No. of Employees No. of Hours Annual Costs Annual Costs One-time Costs No. of Employees No. of Hours One-time Costs Proposer Company Name Proposer Authorized Representative Signature 81 OPPORTUNITY PROJECT NAME: OPPORTUNITY PROJECT C Development Services Project Management System Requirements System Design System Development Training System Implementation Total Professional Services Goods and Services Hardware COTS Software Other (specify on attached sheet) Total Goods and Services Total Costs of One-time Services Maintenance Services Annual Maintenance Management Annual Training Other (specify on attached sheet) Total Maintenance Services Estimated Benefit from Additional Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Total Additional Revenue Annual Benefit No. of Employees No. of Hours Annual Costs Annual Costs One-time Costs No. of Employees No. of Hours One-time Costs Proposer Company Name Proposer Authorized Representative Signature 82 SUPPLEMENTAL FORM A: HOURLY RATES OF PROPOSER STAFF Median Years of Experience Standard Hourly Rate Discounted Hourly Rate For This Engagement Employee Classification Proposer Company Name Proposer Authorized Representative Signature 83 SUPPLEMENTAL FORM B: COST OF HARDWARE AND SOFTWARE FOR DEVELOPMENT Cost to Install per Unit Initial 5 yr. Warranty Cost per Unit Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Qty Description (Manufacturer, Model, Version, Features, etc.) Base Price per Unit Other Costs (Itemize) Total Cost per Unit Total Cost for All Units Proposer Company Name Proposer Authorized Representative Signature 84 SUPPLEMENTAL FORM C: COST OF HARDWARE AND SOFTWARE FOR PRODUCTION Cost to Install per Unit Initial 5 yr. Warranty Cost per Unit Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Qty Description (Manufacturer, Model, Version, Features, etc.) Base Price per Unit Other Costs (Itemize) Total Cost per Unit Total Cost for All Units Proposer Company Name Proposer Authorized Representative Signature 85 SUPPLEMENTAL FORM D: COST OF HARDWARE AND SOFTWARE FOR ADDITIONAL INFORMATION Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Description (Manufacturer, Model, Version, Features, etc.) Facility Requirements Indicate Production (P) or Development (D) Average Annual Warranty Period Maintenance Cost for Years 6 to 10 Qty Proposer Company Name Proposer Authorized Representative Signature 86 SUPPLEMENTAL FORM E: COSTS FOR DEVELOPMENT Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Description (Manufacturer, Model, Version, Features, etc.) Base Price per Unit Initial 5 yr. Warranty Cost per Unit Other Costs (Itemize) Total Cost per Unit Total Cost for All Units Qty Proposer Company Name Proposer Authorized Representative Signature 87 Signature Page for Price Proposal Attached is the official Proposer’s Price Proposal to the State of New Jersey solicitation number 05-X-36861, entitled, "Taxation Data Warehouse, Partnership Development of a". This response from the Proposer represents the Project Draft or Final Proposal , dated ____/____/________. As the authorized responder for this firm, I acknowledge receipt of and have reviewed the following documents: State of New Jersey Request for Proposal 05-X-36861 entitled, "Taxation Data Warehouse, Partnership Development of a" All addenda to the referenced Request for Proposal. I hereby submit the attached proposal to enter into a Business Partner relationship with the State of New Jersey pursuant to the requirements and terms and conditions of the referenced RFP and any addenda. Signature of Authorized Representative: Dated: Printed Name of Authorized Representative: Title of Authorized Representative: Official Corporation or Company Name: FEIN: Mailing Address: City, State, Zip Code: Telephone Number: Fax number: E-mail Address: 88 Appendix 1: Confidentiality and Non-Disclosure Agreement This Agreement made and entered into between the State of New Jersey, acting by and through the Director of the Division of Purchase and Property in the Department of the Treasury, for and on behalf of the Division of Taxation, hereinafter referred to as the State or Disclosing Party, and _________________________________ _________________________________ hereinafter referred to as the Receiving Party. The State of New Jersey, Division of Taxation, as part of this Request for Proposal ("RFP") process, intends to disclose confidential information to persons who agree to the terms of this Confidentiality and Non-Disclosure Agreement. Any person who seeks to become the State’s Business Partner must agree to the terms set forth in this Confidentiality and Non-Disclosure Agreement in order to participate in the RFP process and evidence such agreement by signing and returning this Confidentiality and Non-Disclosure Agreement to the buyer responsible for this procurement (See RFP Section 1.4.1). The terms of this Confidentiality and Non-Disclosure Agreement shall continue for the duration of the Contract, and the Business Partner selected by the State will, thus, continue to abide by all of the terms set forth herein for this period, or such later date if the parties mutually agree. 1. Confidential Information a. "Confidential Information" shall mean any information or data of a confidential nature, which is not considered public record, including but not limited to: (a) personal information about individuals and entities; (b) technical, developmental, marketing, sales, operating, performance, cost, knowhow, methodologies, business and process information; (c) computer programs and related documentation, including related programming know-how and techniques; and (d) all recordbearing media containing or disclosing such information, know-how and techniques disclosed to [Receiving Party] under this Agreement. Without limiting the generality of the foregoing, it is expressly acknowledged that: Pursuant to NJSA 54:50-8 (records confidential) all of the records and files of the Division of Tax are confidential. Confidential Information shall not include information that (a) is or becomes available to the public other than by disclosure by the [Receiving Party] in violation of this Agreement; (b) was demonstrably known to [Receiving Party] previously with no obligation to hold it in confidence; (c) is independently developed by either party without recourse to the Confidential Information; or (d) was rightfully obtained by either party from a third party without an obligation of confidentiality. b. 2. Disclosure to Third Parties [Receiving Party] shall not disclose Confidential Information to any third party (including Receiving Party's agents, representatives, independent consultants/contractors, subcontractors, as well as any third party's agents, representatives, independent consultants/contractors and subcontractors) unless, prior to any disclosure, the [Receiving Party] has obtained [Disclosing Party's] written permission and the third party has executed a confidentiality and nondisclosure agreement provided by [Disclosing Party] which requires the third party recipient to consent to abide by the terms of this Agreement. [Receiving Party] shall not allow the Confidential Information to be accessed through a computer bulletin board or other "shareware" distribution process. 3. Protection of Confidential Information The Confidential Information, including permitted copies, shall be deemed to be the exclusive property of the [Disclosing Party]. [Receiving Party] shall (a) only use Confidential Information as provided by this Agreement, (b) only disclose the Confidential Information to its employees or authorized representatives who have a need to know, or are legally permitted to have access to such information, and sign this Confidentiality and Non-Disclosure Agreement, (c) treat the Confidential Information with the same degree of care that it would afford to its own confidential information of a similar nature, but no less than reasonable care, (d) have no right, title, or interest in the Confidential Information except as provided for in this Agreement, (e) notify [Disclosing Party] within two (2) business days of any loss or unauthorized disclosure or use of the Confidential Information, (f) not remove, modify or obliterate any copyright, trademark, or other proprietary rights notice from the Confidential Information, and (g) return any and all Confidential Information to [Disclosing Party] which may be in [Receiving Party's] possession immediately upon termination of this Agreement. 89 4. Relief / Remedy [Receiving Party] acknowledges that any disclosure or use of any Confidential Information in violation of this Agreement may cause [Disclosing Party] irreparable harm, the amount of which is difficult to estimate, making any remedy at law or in damage inadequate. Therefore, [Receiving Party] agrees that [Disclosing Party] shall have the right to obtain from any court of competent jurisdiction specific performance or other temporary or permanent injunctive relief for any breach or threatened breach of this Agreement. This right shall be in addition to any other remedies available to [Disclosing Party] in law or in equity. 5. Termination Upon termination of the purpose for which the Confidential Information was disclosed (or earlier upon the request of [Disclosing Party], [Receiving Party] shall promptly return to the [Disclosing Party] or destroy all Confidential Information and any copies of documents, papers or other material which may contain or be derived from the Confidential Information which is in its possession. At [Disclosing Party's] request, [Receiving Party] shall provide a certificate certifying that it has satisfied its obligations under this paragraph. 6. Miscellaneous a. Any notice required or permitted to be given under this Agreement shall be given in writing and shall be effective from the date sent by registered or certified mail, by hand, facsimile, or overnight courier to the addresses set forth on the first page of this Agreement. This Agreement shall not be changed, modified or amended except by a writing signed by the parties. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. The [Receiving Party] shall not assign this Agreement without the prior written consent of the [Disclosing Party]. This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings of any kind and every nature between them. The individual executing this Agreement on behalf of the [Receiving Party] hereby represents and warrants that he or she is duly authorized to execute this Agreement on behalf of [Receiving Party]. The obligations with respect to Confidential Information created by this Agreement will survive until such time as the Confidential Information becomes publicly known. If any provision of this Agreement is held invalid under any applicable law, such invalidity will not affect any other provision of this Agreement that can be given effect without the invalid provision. This Agreement shall be governed in all respects by the laws of the State of New Jersey without giving effect to conflicts of laws principles. Any litigation arising out of or in connection with this Agreement shall take place in a State or Federal court of competent jurisdiction in New Jersey. b. c. d. e. f. g. Signature Date Print Name Company Name (Print) 90 Appendix 2: Analysis of Major NEW JERSEY State Taxes % Change 2001-02 0.02 0.02 -0.16 -0.20 -0.09 -0.78 -0.08 -0.13 -0.14 -0.14 0.12 7.05 0.01 0.02 0.12 -0.98 0.05 0.04 0.01 0.11 0.08 0.05 1.74 0.07 -0.06 No. of Accounts Registered 141 15,371 477,326 845 32 26,593 415 11 428 422,504 1,271 120,139 8,343 1,070 82 12 12 516,826 243 713 820 12 147 240,448 No. of Audits Conducted 119 798 3,373 Tax Source Collected by the Division: Alcoholic Beverage (General Fund) Cigarette (including dedicated fund) Corporation: Corporation Business CBT Banks & Financials Environmental Taxes: Landfill Closure and Contingency LitterControl3 Public Community Water Systems Solid Waste Services Spill Compensation Gross Income Insurance Premiums Miscellaneous Revenues Motor Fuels Petroleum Products Public Utility Excise Railroad Franchise Railroad Property Sales: Sales and Use Atlantic City Lux & Promo (Loc. Use) Tobacco Products Wholesale Cape May County Tourism (Loc. Use) Casino Parking Fee - CPFT Savings Institution Transfer Inheritance and Estate Taxes Collected by the Division Collected Outside the Division: Revenue Collected % of Total 2002 $81,280,499 391,228,753 1,171,456,857 41,649,356 1,910,917 2,946,956 2,994,626 4,081,230 14,782,033 6,836,992,402 345,816,449 13,030,294 523,818,533 219,700,547 9,876,021 7,689 3,303,490 5,996,839,407 25,926,411 15,627,272 3,503,632 15,638,832 10,556,862 510,367,419 $16,243,336,485 0.45% 2.18% 6.54% 0.23% 0.01% 0.02% 0.02% 0.02% 0.08% 38.18% 1.93% 0.07% 2.93% 1.23% 0.06% 0.00% 0.02% 0.00% 33.49% 0.14% 0.09% 0.02% 0.09% 0.06% 2.85% 90.71% Revenue Collected % of Total 2001 $79,889,112 383,403,845 1,389,486,310 51,971,516 2,111,316 13,104,011 3,252,874 4,696,330 17,159,860 7,989,222,227 309,148,964 1,619,192 516,413,282 215,811,270 8,851,642 400,446 3,145,771 5,758,670,303 25,736,744 14,109,870 3,237,115 14,849,759 3,859,609 478,061,055 $17,288,212,423 0.42% 2.03% 7.35% 0.27% 0.01% 0.07% 0.02% 0.02% 0.09% 42.25% 1.63% 0.01% 2.73% 1.14% 0.05% 0.00% 0.02% 30.45% 0.14% 0.07% 0.02% 0.08% 0.02% 2.53% 91.42% $$ Assessed in Audits 2,935 84,599 35,677,037 813 1,286,585 14 2,810 221 217 49 27 0 0 4,669 16 77 2 5,732 5,038,265 916,340 1,268,008 912,575 2,181,065 0 0 62,090,730 53,231 2,262,353 89,456 91 Tax Source State Athletic Control Board (tot. rev.) Casino Revenue Casino Control Lottery Motor Vehicle Fees Outdoor Advertising (total revenue) Realty Transfer Taxes Collected Outside the Division Total Major State Tax Collections % No. of Change Accounts Revenue Collected Revenue Collected 2002 % of Total 2001 % of Total 2001-02 Registered $389,352 0.00% $179,951 0.00% 1.16 350,776,779 1.96% 341,990,747 1.81% 0.03 62,221,650 0.35% 57,313,087 0.30% 0.09 754,549,833 4.21% 697,397,293 3.69% 0.08 404,162,549 2.26% 444,280,632 2.35% -0.09 1,619,318 0.01% 1,646,875 0.01% -0.02 90,003,903 0.50% 79,061,773 0.42% 0.14 $1,663,723,385 $1,621,870,358 0.03 $17,907,059,870 100.00% $18,910,082,781 100.00% -0.05 No. of Audits Conducted $$ Assessed in Audits 64,495,770 92 7.0 Price Sheet(s) and Supporting Detail TERM CONTRACT – ADVERTISED BID PROPOSAL DEPT OF TREASURY, PURCHASE BUREAU STATE OF NEW JERSEY 33 WEST STATE STREET P.O. BOX 230 TRENTON, NEW JERSEY 08625-0230 LINE # COMMODITY-SERVICE DESCRIPTION UNLESS SPECIFIED OTHERWISE BELOW, SHIP TO: 822080 / S001 DIVISION OF TAXATION 50 BARRACK ST PO BOX 269 TRENTON, NJ 08625-0269 00001 COMMODITY CODE: 254-30-055955 TAXATION DATA WAREHOUSE, OPPORTUNITY PROJECT A, AVERAGE OF "STATE GAIN HIGH" AND "STATE GAIN LOW" COMMODITY CODE: 254-30-055956 TAXATION DATA WAREHOUSE, OPPORTUNITY PROJECT B, AVERAGE OF "STATE GAIN HIGH" AND "STATE GAIN LOW" COMMODITY CODE: 254-30-0-55957 TAXATION DATA WAREHOUSE, OPPORTUNITY PROJECT C, AVERAGE OF "STATE GAIN HIGH" AND "STATE GAIN LOW" COMMODITY CODE: 254-30-055958 ****HOURLY RATES LINE ITEM**** N/A THIS LINE WILL BE USED PER RFP SECTION 6.23 HOUR NUMBER: 05-X-36861 OPEN DATE: AUGUST 23, 2004, 2:00 PM EASTERN TIME T-NUMBER: T-2260 PROPOSER: QUANTITY UNIT UNIT PRICE AMOUNT 1 EACH ______________ ______________ 00002 1 EACH ______________ ______________ 00003 1 EACH ______________ ______________ 00004 ATTACH SEPARATE SHEET LISITNG VARIOUS SKILL CATEGORIES AND THEIR RESPECTIVE HOURLY RATE. 93 8.0 STATE NOTICES AND FORMS ATTENTION VENDORS Vendor Information and Bidding Opportunities The Purchase Bureau maintains a bidders mailing list. You as a vendor may have basic information about your firm added to the bidders mailing list by visiting our website at http://www.state.nj.us/treasury/purchase/forms/forms.htm and submitting a bidders mailing list application online. You may also download the application and instructions and submit the application by mail. Applications submitted online are processed more quickly than mailed applications. A bidders mailing list application gives you the opportunity to identify yourself as a potential bidder for the types of goods and services that your firm provides. The Purchase Bureau attempts (but does not guarantee) to provide firms on the bidders mailing list with notice of bidding opportunities related to the goods and services identified in the application. If you are already on the Purchase Bureau’s bidders mailing list and you need to change your information, contact Bid List Management at (609) 984-5396 Note: If you are an awarded State contractor and payments are not being directed to your proper remit-to address, you must send a letter on company letterhead to the Office Of Management and Budget, Vendor Control Unit, PO Box 221, Trenton, NJ 08625 or fax that letter to 609-292-4882. In the letter you must include the current incorrect remit to address and your new correct remit-to address. If you have any question about this process you may call (609) 292-8124 for more information. 94 OWNERSHIP DISCLOSURE FORM STATE OF NEW JERSEY BID NUMBER: 05-X-36861 NEW JERSEY DEPARTMENT OF THE TREASURY DIVISION OF PURCHASE & PROPERTY BIDDER: ________________________________________________ 33 W. STATE ST., 9TH FLOOR PO BOX 230 ________________________________________________ TRENTON, NEW JERSEY 08625-0230 INSTRUCTIONS: Provide below the names, home addresses, dates of birth, offices held and any ownership interest of all officers of the firm named above. If additional space is necessary, provide on an attached sheet. OWNERSHIP INTEREST NAME HOME ADDRESS DATE OF BIRTH OFFICE HELD (Shares Owned or % of Partnership) ________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________ INSTRUCTIONS: Provide below the names, home addresses, dates of birth, and ownership interest of all individuals not listed above, and any partnerships, corporations and any other owner having a 10% or greater interest in the firm named above. If a listed owner is a corporation or partnership, provide below the same information for the holders of 10% or more interest in that corporation or partnership. If additional space is necessary, provide that information on an attached sheet. If there are no owners with 10% or more interest in your firm, enter “None” below. Complete the certification at the bottom of this form. If this form has previously been submitted to the Purchase Bureau in connection with another bid, indicate changes, if any, where appropriate, and complete the certification below. NAME OWNERSHIP INTEREST HOME ADDRESS DATE OF BIRTH OFFICE HELD (Shares Owned or % of Partnership) ________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________ COMPLETE ALL QUESTIONS BELOW YES NO 1. Within the past five years has another company or corporation had a 10% or greater interest in the firm identified above? (If yes, complete and attach a separate disclosure form reflecting previous ownership interests.) 2. Has any person or entity listed in this form or its attachments ever been arrested, charged, indicted or convicted in a criminal or disorderly persons matter by the State of New Jersey, any other State or the U.S. Government? (If yes, attach a detailed explanation for each instance.) 3. Has any person or entity listed in this form or its attachments ever been suspended, debarred or otherwise declared ineligible by any agency of government from bidding or contracting to provide services, labor, material, or supplies? (If yes, attach a detailed explanation for each instance.) Are there now any criminal matters or debarment proceedings pending in which the firm and/or its officers and/or managers are involved? (If yes, attach a detailed explanation for each instance.) Has any Federal, State or Local license, permit or other similar authorization, necessary to perform the work applied for herein and held or applied for by any person or entity listed in this form, been suspended or revoked, or been the subject or any pending proceedings specifically seeking or litigating the issue of suspension or revocation? (If yes, attach a detailed explanation for each instance.) 4. 5. CERTIFICATION: I, being duly sworn upon my oath, hereby represent and state that the foregoing information and any attachments thereto to the best of my knowledge are true and complete. I acknowledge that the State of New Jersey is relying on the information contained herein and thereby acknowledge that I am under a continuing obligation from the date of this certification through the completion of any contracts with the State to notify the State in writing of any changes to the answers or information contained herein. I acknowledge that I am aware that it is a criminal offense to make a false statement or misrepresentation in this certification, and if I do so, I recognize that I am subject to criminal prosecution under the law and that it will also constitute a material breach of my agreement(s) with the State of New Jersey and that the State at its option, may declare any contract(s) resulting from this certification void and unenforceable. I, being duly authorized, certify that the information supplied above, including all attached pages, is complete and correct to the best of my knowledge, I certify that all of the foregoing statements made by me are true. I am aware that if any of the foregoing statements made by me are willfully false, I am subject to punishment. Company Name: _________________________________________________ Address: _____________________________________________________ _____________________________________________________ FEIN/SSN#: ____________________________________________________ PRINT OR TYPE: PRINT OR TYPE: Date _________________________________________________(Signature) _____________________________________________________(Name) ______________________________________________________(Title) __________________________________________ PB-ODF.1 R4/29/96 95 AFFIRMATIVE ACTION DEPT OF THE TREASURY DIVISION OF PURCHASE & PROPERTY STATE OF NEW JERSEY 33 WEST STATE STREET, 9TH FLOOR PO BOX 230 TRENTON, NEW JERSEY 08625-0230 TERM CONTRACT – ADVERTISED BID PROPOSAL BID NUMBER: 05-X-36861 NAME OF PROPOSER: _______________________________________________________________ _________________________________________________________________ SUPPLEMENT TO BID SPECIFICATIONS DURING THE PERFORMANCE OF THIS CONTRACT, THE CONTRACTOR AGREES AS FOLLOWS: 1. THE CONTRACTOR OR SUBCONTRACTOR, WHERE APPLICABLE, WILL NOT DISCRIMINATE AGAINST ANY EMPLOYEE OR APPLICANT FOR EMPLOYMENT BECAUSE OF AGE, RACE, CREED, COLOR, NATIONAL ORIGIN, ANCESTRY, MARITAL STATUS, SEX, AFFECTIONAL OR SEXUAL ORIENTATION. THE CONTRACTOR WILL TAKE AFFIRMATIVE ACTION TO ENSURE THAT SUCH APPLICANTS ARE RECRUITED AND EMPLOYED, AND THAT EMPLOYEES ARE TREATED DURING EMPLOYMENT, WITHOUT REGARD TO THEIR AGE, RACE, CREED, COLOR, NATIONAL ORIGIN, ANCESTRY, MARITAL STATUS, SEX, AFFECTIONAL OR SEXUAL ORIENTATION. SUCH ACTION SHALL INCLUDE, BUT NOT BE LIMITED TO THE FOLLOWING: EMPLOYMENT, UPGRADING, DEMOTION, OR TRANSFER; RECRUITMENT OR RECRUITMENT ADVERTISING; LAYOFF OR TERMINATION; RATES OF PAY OR OTHER FORMS OF COMPENSATION; AND SELECTION FOR TRAINING, INCLUDING APPRENTICESHIP. THE CONTRACTOR AGREES TO POST IN CONSPICUOUS PLACES, AVAILABLE TO EMPLOYEES AND APPLICANTS FOR EMPLOYMENT, NOTICES TO BE PROVIDED BY THE PUBLIC AGENCY COMPLIANCE OFFICER SETTING FORTH PROVISIONS OF THIS NONDISCRIMINATION CLAUSE; 2. THE CONTRACTOR OR SUBCONTRACTOR, WHERE APPLICABLE WILL, IN ALL SOLICITATIONS OR ADVERTISEMENTS, FOR EMPLOYEES PLACED BY OR ON BEHALF OF THE CONTRACTOR, STATE THAT ALL QUALIFIED APPLICANTS WILL RECEIVE CONSIDERATION FOR EMPLOYMENT WITHOUT REGARD TO AGE, RACE, CREED, COLOR, NATIONAL ORIGIN, ANCESTRY, MARITAL STATUS, SEX, AFFECTIONAL OR SEXUAL ORIENTATION. 3. THE CONTRACTOR OR SUBCONTRACTOR, WHERE APPLICABLE, WILL SEND TO EACH LABOR UNION OR REPRESENTATIVE OR WORKERS WITH WHICH IT HAS A COLLECTIVE BARGAINING AGREEMENT OR OTHER CONTRACT OR UNDERSTANDING, A NOTICE, TO BE PROVIDED BY THE AGENCY CONTRACTING OFFICER ADVISING THE LABOR UNION OR WORKERS' REPRESENTATIVE OF THE CONTRACTOR'S COMMITMENTS UNDER THIS ACT AND SHALL POST COPIES OF THE NOTICE IN CONSPICUOUS PLACES AVAILABLE TO EMPLOYEES AND APPLICANTS FOR EMPLOYMENT. 4. THE CONTRACTOR OR SUBCONTRACTOR, WHERE APPLICABLE, AGREES TO COMPLY WITH THE REGULATIONS PROMULGATED BY THE TREASURER PURSUANT TO P.L. 1975, C. 127, AS AMENDED AND SUPPLEMENTED FROM TIME TO TIME AND THE AMERICANS WITH DISABILITIES ACT. 5. THE CONTRACTOR OR SUBCONTRACTOR AGREES TO ATTEMPT IN GOOD FAITH TO EMPLOY MINORITY AND FEMALE WORKERS CONSISTENT WITH THE APPLICABLE COUNTY EMPLOYMENT GOALS PRESCRIBED BY N.J.A.C. 17:27-5.2 PROMULGATED BY THE TREASURER PURSUANT TO P.L. 1975, C. 127, AS AMENDED AND SUPPLEMENTED FROM TIME TO TIME OR IN ACCORDANCE WITH A BINDING DETERMINATION OF THE APPLICABLE COUNTY EMPLOYMENT GOALS DETERMINED BY THE AFFIRMATIVE ACTION OFFICE PURSUANT TO N.J.A.C. 17:27-5.2 PROMULGATED BY THE TREASURER PURSUANT TO P.L. 1975, C. 127, AS AMENDED AND SUPPLEMENTED FROM TIME TO TIME. 6. THE CONTRACTOR OR SUBCONTRACTOR AGREES TO INFORM IN WRITING APPROPRIATE RECRUITMENT AGENCIES IN THE AREA, INCLUDING EMPLOYMENT AGENCIES, PLACEMENT BUREAUS, COLLEGES, UNIVERSITIES, LABOR UNIONS, THAT IT DOES NOT DISCRIMINATE ON THE BASIS OF AGE, CREED, COLOR, NATIONAL ORIGIN, ANCESTRY, MARITAL STATUS, SEX, AFFECTIONAL OR SEXUAL ORIENTATION, AND THAT IT WILL DISCONTINUE THE USE OF ANY RECRUITMENT AGENCY WHICH ENGAGES IN DIRECT OR INDIRECT DISCRIMINATORY PRACTICES. 7. THE CONTRACTOR OR SUBCONTRACTOR AGREES TO REVISE ANY OF ITS TESTING PROCEDURES, IF NECESSARY, TO ASSURE THAT ALL PERSONNEL TESTING CONFORMS WITH THE PRINCIPLES OF JOB-RELATED TESTING, AS ESTABLISHED BY THE STATUTES AND COURT DECISIONS OF THE STATE OF NEW JERSEY AND AS ESTABLISHED BY APPLICABLE FEDERAL LAW AND APPLICABLE FEDERAL COURT DECISIONS. 8. THE CONTRACTOR OR SUBCONTRACTOR AGREES TO REVIEW ALL PROCEDURES RELATING TO TRANSFER, UPGRADING, DOWNGRADING AND LAYOFF TO ENSURE THAT ALL SUCH ACTIONS ARE TAKEN WITHOUT REGARD TO AGE, CREED, COLOR, NATIONAL ORIGIN, ANCESTRY, MARITAL STATUS, SEX, AFFECTIONAL OR SEXUAL ORIENTATION, AND CONFORM WITH THE APPLICABLE EMPLOYMENT GOALS, CONSISTENT WITH THE STATUTES AND COURT DECISIONS OF THE STATE OF NEW JERSEY, AND APPLICABLE FEDERAL LAW AND APPLICABLE FEDERAL COURT DECISIONS. THE CONTRACTOR AND ITS SUBCONTRACTORS SHALL FURNISH SUCH REPORTS OR OTHER DOCUMENTS TO THE AFFIRMATIVE ACTION OFFICE AS MAY BE REQUESTED BY THE OFFICE FROM TIME TO TIME IN ORDER TO CARRY OUT THE PURPOSES OF THESE REGULATIONS, AND PUBLIC AGENCIES SHALL FURNISH SUCH INFORMATION AS MAY BE REQUESTED BY THE AFFIRMATIVE ACTION OFFICE FOR CONDUCTING A COMPLIANCE INVESTIGATION PURSUANT TO SUBCHAPTER 10 OF THE ADMINISTRATIVE CODE (NJAC17:27). * NO FIRM MAY BE ISSUED A PURCHASE ORDER OR CONTRACT WITH THE STATE UNLESS THEY COMPLY WITH THE AFFIRMATIVE ACTION REGULATIONS PLEASE CHECK APPROPRIATE BOX (ONE ONLY) HAVE A CURRENT NEW JERSEY AFFIRMATIVE ACTION CERTIFICATE, (PLEASE ATTACH A COPY TO YOUR PROPOSAL). I HAVE A VALID FEDERAL AFFIRMATIVE ACTION PLAN APPROVAL LETTER, (PLEASE ATTACH A COPY TO YOUR PROPOSAL). I HAVE COMPLETED THE ENCLOSED FORM AA302 AFFIRMATIVE ACTION EMPLOYEE INFORMATION REPORT. REV. 12/90 96 INSTRUCTIONS FOR COMPLETING THE AFFIRMATIVE ACTION EMPLOYEE INFORMATION REPORT (FORM AA302) IMPORTANT: READ THE FOLLOWING INSTRUCTIONS CAREFULLY BEFORE COMPLETING THE FORM. PRINT OR TYPE ALL INFORMATION. FAILURE TO PROPERLY COMPLETE THE ENTIRE FORM MAY DELAY ISSUANCE OF YOUR CERTIFICATE. Item 11 – Enter the name of the Public Agency awarding the contract. Include City, State and Zip Code. Item 12 – Enter the appropriate figures on all lines and in all columns. THIS SHALL ONLY INCLUDE EMPLOYMENT DATA FROM THE FACILITY THAT IS BEING AWARDED THE CONTRACT. DO NOT list the same employee in more than one job category. Item 1 – Enter the Federal Identification Number assigned to the Contractor or vendor by the Internal Revenue Service, or if a Federal Employer Identification Number has been applied for, but not yet issued, write the words “applied for”, or If your business is such that you have not, or will not receive a Federal Employee Identification Number, enter the Social Security Number assigned to the single owner or to a partner, in case of partnership. Item 2 – Check the box appropriate to your TYPE OF BUSINESS. If you are engaged in more than one type of business, check the predominant one. If you are a manufacturer deriving more than 50% of your receipts from your own retail outlets, check “Retail”. Item 3 – Enter the total “number” of employees in the entire company, including part-time employees. This number shall include all facilities in the entire firm or corporation. Item 4 – Enter the name by which the company is identified. If there is more than one company name, enter the predominant one. Item 5 – Enter the physical location of the company, include City, County, State and Zip Code. Item 6 – Enter the name of any parent or affiliated company including City, State and Zip Code. If there is none, so indicate by entering “None” or N/A. Item 7 – Check the appropriate box for the total number of employees in the entire company. “Entire Company” shall include all facilities in the entire firm or corporation, including part-time employees, not use those employees at the facility being awarded the contract. Item 8 – Check the box appropriate to your type of company establishment. Single-establishment Employer shall include an employer whose business is conducted at more than one location. Item 9 – If multi-establishment was entered in Item 8, enter the number of establishments within the State of New Jersey. Item 10 – Enter the total number of employees at the establishment being awarded the contract. Racial/Ethnic Groups w ill be so defined: Black: Not of Hispanic origin. Persons have origin in any of the Black racial groups of Africa. Hispanic: Persons of Mexican, Puerto Rican, Cuban or Central or South American or other Spanish culture or origin, regardless of race. American Indian or Alaskan Native: Persons having origins in any of the original peoples of North America, and who maintain cultural identification through tribal affiliation or community recognition. Asian or Pacific Islander: Persons having origin in any of the peoples of the Far East, Southeast Asia, the Indian Subcontinent or the Pacific Islands. This area includes for example, China, Japan, the Philippine Islands and Somoa. Item 13 – Check the appropriate box, if the race or ethnic group information was not obtained by 1 or 2, specify by what other means this was done in 3. Item 14 – Enter the dates of the payroll period used to prepare the employment data presented in Item 12. Item 15 – If this is the first time an Employee Information Report has been submitted for this company, check block “Yes”. Item 16 – If the answer to Item 15 is “No”, enter the date when this company submitted the last Employee Information Report. Item 17 – Print or type the name of the person completing this form. Include the signature, title and date. Item 18 – Enter the physical location where the form is being completed. Include City, State, Zip Code and Phone Number. 97 State of New Jersey AFFIRMATIVE ACTION EMPLOYEE INFORMATION REPORT IMPORTANT: READ INSTRUCTIONS ON PRIOR PAGE CAREFULLY BEFORE COMPLETING FORM. TYPE OR PRINT SHARP BALL POINT PEN. FAILURE TO PROPERLY COMPLETE THE ENTIRE FORM MAY DELAY ISSUANCE OF YOUR CERTIFICATE. SECTION A – COMPANY IDENTIFICATION 1. FID. NO. OR SOCIAL SECURITY 2. TYPE OF BUSINESS 1. MFG. 4. RETAIL 4. COMPANY NAME 5. STREET CITY COUNTY CITY YES NO MULTI-ESTABLISHMENT EMPLOYER [ ] [ ] ZIP CODE STATE STATE ZIP CODE ZIP CODE 2. SERVICE 5. OTHER 3. WHOLESALE 3. TOTAL NO. OF EMPLOYEES IN THE ENTIRE COMPANY 6. NAME OF PARENT OR AFFILIATED COMPANY (IF NONE, SO INDICATE) 7. DOES THE ENTIRE COMPANY HAVE A TOTAL OF AT LEAST 50 EMPLOYEES? 8. CHECK ONE: IS THE COMPANY: SINGLE-ESTABLISHMENT EMPLOYER 9. IF MULTI-ESTABLISHMENT EMPLOYER, STATE THE NUMBER OF ESTABLISHMENTS IN N.J. : 10. TOTAL NUMBER OF EMPLOYEES AT THE ESTABLISHMENT WHICH HAS BEEN AWARDED THE CONTRACT: 11. PUBLIC AGENCY AWARDING CONTRACT: CITY STATE OFFICIAL USE ONLY DATE RECEIVED MO/DAY/YR COUNTY OUT OF STATE PERCENTAGES MINORITY FEMALE ASSIGNED CERTIFICATION NUMBER SECTION B – EMPLOYMENT DATA 12. Report all permanent, temporary and part-time employees ON YOUR OWN PAYROLL. Enter the appropriate figures on all lines and in all columns. Where there are no employees in a particular category, enter a zero. Include ALL employees, not just those in minority categories, in columns 1, 2, & 3. ALL EMPLOYEES MINORITY GROUP EMPLOYEES (PERMANENT) MALE FEMALE BLACK HISPANIC AMERICA N INDIAN ASIAN BLACK HISPANIC AMERICAN INDIAN ASIAN JOB CATEGORIES Officials and Managers Professionals Technicians Sales Workers Office and Clerical Craftworkers (Skilled) Operatives (Semi-skilled) Laborers (Unskilled) Service Workers Col. 1 TOTAL (Cols. 2&3) Col. 2 MALE Col. 3 FEMALE TOTAL Total employment from Previous Report (if any) The data below shall NOT be included in the request for the categories above. Temporary and Part-time Employees 13. HOW WAS INFORMATION AS TO RACE OR ETHNIC GROUP IN SECTION B OBTAINED? 1. VISUAL SURVEY 2. EMPLOYMENT RECORD 14. DATES OF PAYROLL PERIOD USED 15. IS THIS THE FIRST EMPLOYEE INFORMATION REPORT (AA.302) SUBMITTED? 1. YES 2. NO 16. IF NO, DATE OF LAST REPORT SUBMITTED 3. OTHER (SPECIFY) | MO. | DAY | YEAR | SECTION C – SIGNATURE AND IDENTIFICATION 17. NAME OF PERSON COMPLETING FORM (PRINT OR TYPE)(?CONTRACTOR EEO OFFIECER SIGNATURE (STATE) (ZIP CODE) TITLE | MO. | DAY | YEAR | PHONE (AREA CODE, NO. & EXTENSION) 18. ADDRESS (NO. & STREET) (CITY) FORM AA302 98 RECIPROCITY FORM (Optional Submission) IMPORTANT NOTICE TO ALL PROPOSER S Effective October 7, 1991 in accordance with N.J.S.A. 52:32-1.4 and N.J.A.C. 17:12-2.13, the State of New Jersey will invoke reciprocal action against an out-of-State bidder whose State or locality maintains a preference practice for their bidders. For States having preference laws, regulations, or practices, New Jersey will use the annual surveys compiled by the Council of State Governments, National Association of State Purchasing Officials, or the National Institute of Governmental Purchasing to invoke reciprocal actions. The State may obtain additional information anytime it deems appropriate to supplement the above survey information. Any bidder may submit information related to preference practices enacted for a local entity outside the State of New Jersey. This information may be submitted in writing as part of the bid response proposal, and should be in the form or resolutions passed by an appropriate governing body, regulations, a Notice to Bidders, laws, etc. It is the responsibility of the bidder to provide the documentation with the bid proposal or submit it to the Director, Division of Purchase and Property within five (5) working days of the public bid opening. Written evidence for a specific procurement that is not provided to the Director within five working days of the public bid opening will not be considered in the evaluation of that procurement, but will be retained and considered in the evaluation of subsequent procurements. Any bidder having evidence of out-of-State local entities invoking preference practices should complete the form below, with a copy of appropriate documentation. The form and documentation may be submitted with you bid response proposal. Name of Locality having preference practices: City /Town/Authority County State Documentation Attached: Resolution Notice to Bidder Name of Firm Submitting this information Please Print Regulations/Laws Other _________________________ 99 NOTICE TO ALL BIDDERS REQUIREMENT TO PROVIDE A CERTIFICATION IN COMPLIANCE WITH MACBRIDE PRINCIPLES AND NORTHERN IRELAND ACT OF 1989 Pursuant to Public Law 1995, c. 134, a responsible bidder selected, after public bidding, by the Director of the Division of Purchase and Property, pursuant to N.J.S.A. 52:34-12, or the Director of the Division of Building and Construction, pursuant to N.J.S.A. 52:32-2, must complete the certification below by checking one of the two representations listed and signing where indicated. If a bidder who would otherwise be awarded a purchase, contract or agreement does not complete the certification, then the Directors may determine, in accordance with applicable law and rules, that it is in the best interest of the State to award the purchase, contract or agreement to another bidder who has completed the certification and has submitted a bid within five (5) percent of the most advantageous bid. If the Directors find contractors to be in violation of the principles which are the subject of this law, they shall take such action as may be appropriate and provided by law, rule or contract, including but not limited to, imposing sanctions, seeking compliance, recovering damages, declaring the party in default and seeking debarment or suspension of the party. I certify, pursuant to N.J.S.A. 52:34-12.2 that the entity for which I am authorized to bid: has no ongoing business activities in Northern Ireland and does not maintain a physical presence therein through the operation of offices, plants, factories, or similar facilities, either directly or indirectly, through intermediaries, subsidiaries or affiliated companies over which it maintains effective control; or will take lawful steps in good faith to conduct any business operations it has in Northern Ireland in accordance with the MacBride principles of nondiscrimination in employment as set forth in N.J.S.A. 52:18A-89.8 and in conformance with the United Kingdom’s Fair Employment (Northern Ireland) Act of 1989, and permit independent monitoring of their compliance with those principles. I certify that the foregoing statements made by me are true. I am aware that if any of the foregoing statements made by me are willfully false, I am subject to punishment. Signature of Bidder Name (Type or Print) Title Name (Type or Print) Name of Company Name (Type or Print) Date 100 STATE OF NEW JERSEY STANDARD TERMS AND CONDITIONS I. Unless the bidder is specifically instructed otherwise In the Request for Proposal, the following terms and conditions will apply to all contracts or purchase agreements made with the State of New Jersey. These terms are in addition to the terms and conditions set forth in the Request for Proposal (RFP) and should be read in conjunction with same unless the RFP specifically indicates otherwise. If a bidder proposes changes or modifications or takes exception to any of the State's terms and conditions, the bidder must so state specifically in writing in the bid proposal. Any proposed change, modification or exception in the State's terms and conditions by a bidder will be a factor in the determination of an award of a contractor purchase agreement. All of the State's terms and conditions will become a part of any contract(s) or order(s} awarded as a result of the Request for Proposal, whether stated in part, in summary or by reference. In the event the bidder's terms and conditions conflict with the State's, the State's terms and conditions will prevail, unless the bidder is notified in writing of the State's acceptance of the bidder's terms and conditions. The statutes, laws or codes cited are available for review at the New Jersey State Library, 185 West State Street, Trenton, New Jersey 08625. If awarded a contract or purchase agreement, the bidder's status shall be that of any independent principal and not as an employee of the State. 1. STATE LAW REQUIRING MANDATORY COMPLIANCE BY ALL CONTRACTORS 1.1 BUSINESS REGISTRATION - All New Jersey and out of State Corporations must obtain a Business Registration Certificate (BRC) from the Department of the Treasury, Division of Revenue prior to conducting business in the State of New Jersey. Proof of valid business registration with the Division of Revenue, Department of the Treasury, State of New Jersey, should be submitted by the bidder and, if applicable, by every subcontractor of the bidder, with the bidder's bid. No contract will be awarded without proof of business registration with the Division of Revenue. Any questions in this regard can be directed to the Division of Revenue at (609) 292-1730. Form NJ-REG. can be filed online at. http://www.state.nj.us/treasury/revenue/gettingregistered.htm#busentity 1.2 ANTI-DISCRIMINATION - All parties to any contract with the State of New Jersey agree not to discriminate in employment and agree to abide by all anti-discrimination laws including those contained within N.J.S.A. 10:2-1 through N.J.S.A. 10:2-4, N.J.S.A.l0:5-1 et seq. and N.J.S.A.l0:5-31 through 10:5-38, and all rules and regulations issued there under. 1.3 PREVAILING WAGE ACT - The New Jersey Prevailing Wage Act, N.J.S.A. 34: 11-56.26 et seq. is hereby made part of every contract entered into on behalf of the State of New Jersey through the Division of Purchase and Property, except those contracts which are not within the contemplation of the Act. The bidder's signature on this proposal is his guarantee that neither he nor any subcontractors he might employ to perform the work covered by this proposal has been suspended or debarred by the Commissioner, Department of Labor for violation of the provisions of the Prevailing Wage Act. 1.4 AMERICANS WITH DISABILITIES ACT - The contractor must comply with all provisions of the Americans With Disabilities Act (ADA), P.L 101-336, in accordance with 42 U.S.C. 12101 et seq. 1.5 THE WORKER AND COMMUNITY RIGHT TO KNOW ACT - The provisions of N.J.S.A. 34:5A-l et seq. which require the labeling of all containers of hazardous substances are applicable to this contract. Therefore, all goods offered for purchase to the State must be labeled by the contractor in compliance with the provisions of the Act. 1.6 OWNERSHIP DISCLOSURE - Contracts for any work, goods or services cannot be issued to any corporation or partnership unless prior to or at the time of bid submission the bidder has disclosed the names and addresses of all its owners holding 10% or more of the corporation or partnership's stock or interest. Refer to N.J.S.A. 52:25-24.2. 1.7 COMPLIANCE - LAWS - The contractor must comply with all local, state and federal laws, rules and regulations applicable to this contract and to the goods delivered and/or services performed hereunder. 1.8 COMPLIANCE - STATE LAWS - It is agreed and understood that any contracts and/or orders placed as a result of this proposal shall be governed and construed and the rights and obligations of the parties hereto shall be determined in accordance with the laws of the STATE OF NEW JERSEY. 1.9 COMPLIANCE - CODES - The contractor must comply with NJUCC and the latest NEC70, B.O.C.A. Basic Building code, OSHA and all applicable codes for this requirement. The contractor will be responsible for securing and paying all necessary permits, where applicable. 2. LIABILITIES 2.1 LIABILITY - COPYRIGHT - The contractor shall hold and save the State of New Jersey, its officers, agents, servants and employees, harmless from liability of any nature or kind for or on account of the use of any copyrighted or uncopyrighted composition, secret process, patented or unpatented invention, article or appliance furnished or used in the performance of his contract. 2.2 INDEMNIFICATION - The contractor shall assume all risk of and responsibility for, and agrees to indemnify, defend, and save harmless the State of New Jersey and its employees from and against any and all claims, demands, suits, actions, recoveries, judgments and costs and expenses in connection therewith on account of the loss of life, property or injury or damage to the person, body or property of any person or persons whatsoever, which shall arise from or result directly or indirectly from the work and/or materials supplied under this contract. This indemnification obligation is not limited by, but is in addition to the insurance obligations contained in this agreement. 2.3 INSURANCE - The contractor shall secure and maintain in force for the term of the contract liability insurance as provided herein. The contractor shall provide the State of New Jersey with current certificates of insurance for all coverages and renewals thereof which must contain the proviso that the insurance provided in the certificate shall not be canceled for any reason except after thirty days written notice to: II. III. IV. 101 The insurance to be provided by the contractor shall be as follows. a. General liability policy as broad as the standard coverage forms currently in use in the State of New Jersey which shall not be circumscribed by any endorsements limiting the breadth of coverage. The policy shall be endorsed to include: 1. 2. 3. BROAD FORM COMPREHENSIVE GENERAL LIABILITY PRODUCTS/COMPLETED OPERATIONS PREMISES/OPERATIONS The limits of liability for bodily injury and property damage shall not be less than $1 million per occurrence as a combined single limit. b. Automobile liability insurance which shall be written to cover any automobile used by the insured. Limits of liability for bodily Injury and property damage shall not be less than $1 million per occurrence as a combined single limit. c. Worker's Compensation Insurance applicable to the laws of the State of New Jersey and Employers Liability Insurance with limits not less than $100,000 BODILY INJURY, EACH OCCURRENCE $100,000 DISEASE EACH EMPLOYEE $500,000 DISEASE AGGREGATE LIMIT 3. TERMS GOVERNING ALL PROPOSALS TO NEW JERSEY PURCHASE BUREAU 3.1 CONTRACT AMOUNT - The estimated amount of the contract(s), when stated on the Advertised Request for Proposal form, shall not be construed as either the maximum or minimum amount which the State shall be obliged to order as the result of this Request for Proposal or any contract entered into as a result of this Request for Proposal. 3.2 CONTRACT PERIOD AND EXTENSION OPTION - If, in the opinion of the Director of the Division of Purchase and Property, it is in the best interest of the State to extend an contract entered into as a result of this Request for Proposal, the contractor will be so notified of the Director s Intent at least 30 days prior to the expiration date of the existing contract. The contractor shall have 15 calendar days to respond to the Director's request to extend the contract. If the contractor agrees to the extension, all terms and conditions of the original contract, including price, will be applicable. 3.3 BID AND PERFORMANCE SECURITY a. Bid Security - If bid security is required, such security must be submitted with the bid in the amount listed in the Request for Proposal, see N.J.A.C. 17: 12- 2.4. Acceptable forms of bid security are as follows: (1) A properly executed individual or annual bid bond issued by an insurance or security company authorized to do business in the State of New Jersey, a certified or cashier's check drawn to the order of the Treasurer, State of New Jersey, or an irrevocable letter of credit drawn naming the Treasurer, State of New Jersey as beneficiary issued by a federally insured financial institution. (2) The State will hold all bid security during the evaluation process. As soon as is practicable after the completion of the evaluation, the State will: (a) Issue an award notice for those offers accepted by the State; (b) Return all bond securities to those who have not been issued an award notice. All bid security from contractors who have been issued an award notice shall be held until the successful execution of all required contractual documents and bonds (performance bond, insurance, etc. If the contractor fails to execute the required contractual documents and bonds within thirty (30) calendar days after receipt of award notice, the contractor may be found in default and the contract terminated by the State. In case of default, the State reserves all rights inclusive of, but not limited to, the right to purchase material and/or to complete the required work in accordance with the New Jersey Administrative Code and to recover any actual excess costs from the contractor. Collection against the bid security shall be one of the measures available toward the recovery of any excess costs. b. Performance Security - If performance security is required, the successful bidder shall furnish performance security in such amount on any award of a term contractor line item purchase, see N.J.A.C. 17: 12- 2.5. Acceptable forms of performance security are as follows: (1) The contractor shall be required to furnish an irrevocable security in the amount listed in the Request for Proposal payable to the Treasurer, State of New Jersey, binding the contractor to provide faithful performance of the contract. (2) The performance security shall be in the form of a properly executed individual or annual performance bond issued by an insurance or security company authorized to do business in the State of New Jersey, a certified or cashier's check drawn to the order of the Treasurer, State of New Jersey, or an irrevocable letter of credit drawn naming the Treasurer, State of New Jersey as beneficiary issued by a federally insured financial institution. The Performance Security must be submitted to the State within 30 days of the effective date of the contract award and cover the period of the contract and any extensions thereof. Failure to submit performance security may result in cancellation of contract for cause pursuant to provision 3.5b,1, and nonpayment for work performed. 3.4 VENDOR RIGHT TO PROTEST - INTENT TO AWARD - Except in cases of emergency, bidders have the right to protest the Director's proposed award of the contract as announced in the Notice of Intent to Award, see N.J.A.C. 17:12-3.3. Unless otherwise stated, a bidder's protest must be submitted to the Director within 10 working days after receipt of written notification that his bid has not been accepted or that an award of contract has been made. In the public interest, the Director may shorten this protest period, but shall 102 provide at least 48 hours for bidders to respond to a proposed award. In cases of emergency, stated in the record, the Director may waive the appeal period. See N.J.A.C. 17: 12- 3 et seq. 3.5 TERMINATION OF CONTRACT a. Change of Circumstances Where circumstances and/or the needs of the State significantly change, or the contract is otherwise deemed no longer to be in the public interest, the Director may terminate a contract entered into as a result of this Request for Proposal, upon no less than 30 days notice to the contractor with an opportunity to respond. In the event of such termination, the contractor shall furnish to the using agency, free of charge, such reports as may be required, b. For cause: (1) Where a contractor fails to perform or comply with a contract, and/or fails to comply with the complaints procedure in N.J.A.C. 17: 12-4.2 et seq., the Director may terminate the contract upon 10 days notice to the contractor with an opportunity to respond. (2) Where a contractor continues to perform a contract poorly as demonstrated by formal complaints, late delivery, poor performance of service, short-shipping etc., so that the Director is repeatedly required to use the complaints procedure in N.J.A.C. 17:12-4.2 et seq. the Director may terminate the contract upon 10 days notice to the contractor with an opportunity to respond. c. In cases of emergency the Director may shorten the time periods of notification and may dispense with an opportunity to respond. d. In the event of termination under this section, the contractor will be compensated for work performed in accordance with the contract, up to the date of termination. Such compensation may be subject to adjustments. 3.6 COMPLAINTS - Where a bidder has a history of performance problems as demonstrated by formal complaints and/or contract cancellations for cause pursuant to 3.5b a bidder may be bypassed for this award. See N.J.A.C. 17:12-2.8. 3.7 EXTENSION OF CONTRACT QUASI-STATE AGENCIES - It is understood and agreed that in addition to State Agencies, Quasi-State Agencies may also participate in this contract. Quasi-State Agencies are defined in N.J.S.A. 52:27B-56.1 as any agency, commission, board, authority or other such governmental entity which is established and is allocated to a State department or any bi-state governmental entity of which the State of New Jersey is a member. 3.8 EXTENSION OF CONTRACTS TO POLITICAL SUBDIVISIONS, VOLUNTEER FIRE DEPARTMENTS AND FIRST AID SQUADS, AND INDEPENDENT INSTITUTIONS OF HIGHER EDUCATION - N.J.S.A. 52:25-16.1 permits counties, municipalities and school districts to participate in any term contract{s), that may be established as a result of this proposal. N.J.S.A. 52:25-16.2 permits volunteer fire departments, volunteer first aid squads and rescue squads to participate in any term contract(s) that may be established as a result of this proposal. N.J.S.A. 52:25-16.5 permits independent institutions of higher education to participate in any term contract(s) that may be established as a result of this proposal, provided that each purchase by the Independent Institution of higher education shall have a minimum cost of $500. In order for the State contract to be extended to counties, municipalities, school districts, volunteer fire departments, first aid squads and independent institutions of higher education the bidder must agree to the extension and so state in his bid. proposal. The extension to counties municipalities, school districts, volunteer fire departments, first aid squads and Independent Institutions of higher education must 'be under the same terms and conditions, including price, applicable to the State. 3.9 EXTENSIONS OF CONTRACTS TO COUNTY COLLEGES - N.J.S.A. 18A:64A - 25. 9 permits any college to participate in any term contract(s) that may be established as a result of this proposal. 3.10 EXTENSIONS OF CONTRACTS TO STATE COLLEGES - N.J.S.A. 18A:64- 60 permits any State College to participate in any term contract{s) that may be established as a result of this proposal. 3.11 SUBCONTRACTING OR ASSIGNMENT - The contract may not be subcontracted or assigned by the contractor, in whole or in part, without the prior written consent of the Director of the Division of Purchase and Property. Such consent, if granted, shall not relieve the contractor of any of his responsibilities under the contract. In the event the bidder proposes to subcontract for the services to be performed under .the terms of the contract award, he shall state so in his bid and attach for approval a list of said subcontractors and an Itemization of the products and/or services to be supplied by them. Nothing contained in the specifications shall be construed as creating any contractual relationship between any subcontractor and the State. 3.12 MERGERS, ACQUISITIONS - If, subsequent to the award of any contract resulting from this Request for Proposal, the contractor shall merge with or be acquired by another firm, the following documents must be submitted to the Director, Division of Purchase & Property. a. Corporate resolutions prepared by the awarded contractor and new entity ratifying acceptance of the original contract, terms, conditions and prices. b. State of New Jersey Bidders Application reflecting all updated information including ownership disclosure, pursuant to provision 1.5. c. Vendor Federal Employer Identification Number. 103 The documents must be submitted within thirty (30) days of completion of the merger or acquisition. Failure to do so may result in termination of contract pursuant to provision 3.5b. If subsequent to the award of any contract resulting from this Request for Proposal, the contractor's partnership or corporation shall dissolve, the Director, Division of Purchase & Property must be so notified. All responsible parties of the dissolved partnership or corporation must submit to the Director in writing, the names of the parties proposed to perform the contract, and the names of the parties to whom payment should be made. No payment should be made until all parties to the dissolved partnership or corporation submit the required documents to the Director. 3.13 PERFORMANCE GUARANTEE OF BIDDER - The bidder hereby certifies that: a. The equipment offered is standard new equipment, and is the manufacturer's latest model in production, with parts regularly used for the type of equipment offered; that such parts are all in production and not likely to be discontinued; and that no attachment or part has been substituted or applied contrary to manufacturer's recommendations and standard practice. b. All equipment supplied to the State and operated by electrical current is UL listed where applicable. c. All new machines are to be guaranteed as fully operational for the period stated in the Request For Proposal from time of written acceptance by the State. The bidder will render prompt service without charge, regardless of geographic location. d. Sufficient quantities of parts necessary for proper service to equipment will be maintained at distribution points and service headquarters. e. Trained mechanics are regularly employed to make necessary repairs to equipment in the territory from which the service request might emanate within a 48-hour period or within the time accepted as industry practice. f. During the warranty period the contractor shall replace immediately any material which is rejected for failure to meet the requirements of the contract. g. All services rendered to the State shall be performed in strict and full accordance with the specifications stated in the contract. The contract shall not be considered complete until final approval by the State's using agency is rendered. 3.14 DELIVERY GUARANTEES - Deliveries shall be made at such time and in such quantities as ordered in strict accordance with conditions contained in the Request for Proposal. The contractor shall be responsible for the delivery of material in first class condition to the State's using agency or the purchaser under this contract and in accordance with good commercial practice. Items delivered must be strictly in accordance with the Request for Proposal. In the event delivery of goods or services is not made within the number of days stipulated or under the schedule defined in the Request for Proposal, the using agency may be authorized to obtain the material or service from any available source, the difference in price, if any, to be paid by the contractor failing to meet his commitments. 3.15 DIRECTOR'S RIGHT OF FINAL BID ACCEPTANCE - The Director reserves the right to reject any or all bids, or to award in whole or in part if deemed to be in the best interest of the State to do so. The Director shall have authority to award orders or contracts to the vendor or vendors best meeting all specifications and conditions in accordance with N.J.S.A. 52:34-12. Tie bids will be awarded by the Director in accordance with N.J.A.C.17:12-2.1D. 3.16 BID ACCEPTANCES AND REJECTIONS - The provisions of N.J.A.C. 17:12-2.9, relating to the Director's right, to waive minor elements of non-compliance with bid specifications and N.J.A.C. 17: 12- 2.2 which defines causes for automatic bid rejection, apply to all proposals and bids. 3.17 STATE'S RIGHT TO INSPECT BIDDER'S FACILITIES - The State reserves the right to inspect the bidder's establishment before making an award, for the purposes of ascertaining whether the bidder has the necessary facilities for performing the contract. The State may also consult with clients of the bidder during the evaluation of bids. Such consultation is intended to assist the State in making a contract award which is most advantageous to the State. 3.18 STATE'S RIGHT TO REQUEST FURTHER INFORMATION - The Director reserves the right to request all information which may assist him or her in making a contract award, including factors necessary to evaluate the, bidder s financial capabilities to perform the contract. Further, the Director reserves the right to request a bidder to explain, in detail, how the bid price was determined. 3.19 MAINTENANCE OF RECORDS - The contractor shall maintain records for products and/or services delivered against the contract for a period of three (3) years from the date of final payment. Such records shall be made available to the, State upon request for purposes of conducting an audit or for ascertaining information regarding dollar volume or number of transactions. 4. TERMS RELATING TO PRICE QUOTATION 4.1 PRICE FLUCTUATION DURING CONTRACT - Unless otherwise noted by the State, all prices quoted shall be firm through issuance of contract or purchase order and shall not be subject to increase during the period of the contract. In the event of a manufacturer's or contractor's price decrease during the contract period, the State shall receive the full benefit of such price reduction on any undelivered purchase order and on any subsequent order placed during the contract period. The Director of Purchase and Property must be notified, in writing, of any price reduction within five (5) days of the effective date. Failure to report price reductions will result in cancellation of contract for cause, pursuant to provision 3.5b.1. 104 4.2 DELIVERY COSTS - Unless otherwise noted in the Request for Proposal, all prices for items in bid proposals are to be submitted F.O.B. Destination. Proposals submitted other than F.O.B. Destination may not be considered. Regardless of the method of quoting shipments, the contractor shall assume all costs, liability and responsibility for the delivery of merchandise in good condition to the State's using agency or designated purchaser. F.O.B. Destination does not cover "spotting" but does include delivery on the receiving platform of the ordering agency at any destination in the State of New Jersey unless otherwise specified. No additional charges will be allowed for any additional transportation costs resulting from partial shipments made at contractor's convenience when a single shipment is ordered. The weights and measures of the State's using agency receiving the shipment shall govern. 4.3 4.4 C.O.D. TERMS - C.O.D. terms are not acceptable as part of a bid proposal and will be cause for rejection of a bid. TAX CHARGES - The State of New Jersey is exempt from State sales or use taxes and Federal excise taxes. Therefore, price quotations must not include such taxes. The State's Federal Excise Tax Exemption number is 22-75-0050K. PAYMENT TO VENDORS - Payment for goods and/or services purchased by the State will only be made against State Payment Vouchers. The State bill form in duplicate together with the original Bill of Lading, express receipt and other related papers must be sent to the consignee on the date of each delivery. Responsibility for payment rests with the using agency which will ascertain that the contractor has performed in a proper and satisfactory manner in accordance with the terms and conditions of the award. Payment will not be made until the using agency has approved payment. For every contract the term of which spans more than one fiscal year, the State's obligation to make payment beyond the current fiscal year is contingent upon legislative appropriation and availability of funds. The State of New Jersey now offers State contractors the opportunity to be paid through the MasterCard procurement card (p-card). A contractor's acceptance and a State Agency's use of the p-card, however, is optional. P-card transactions do not require the submission of either a contractor invoice or a State payment voucher. Purchasing transactions utilizing the p-card will usually result in payment to a contractor in three days. A Contractor should take note that there will be a transaction processing fee for each p-card transaction. To participate, a contractor must be capable of accepting the MasterCard card. For more information, call your bank or any merchant services company. 4.5 4.6 NEW JERSEY PROMPT PAYMENT ACT - The New Jersey Prompt Payment Act N.J.S.A. 52:32-32 et seq. requires state agencies to pay for goods and services within sixty (60) days of the agency's receipt of a properly executed State Payment Voucher or within sixty (60) days of receipt and acceptance of goods and services, whichever is later. Properly executed performance security, when required, must be received by the state prior to processing any payments for goods and services accepted by state agencies. Interest will be paid on delinquent accounts at a rate established by the State Treasurer. Interest will not be paid until it exceeds $5.00 per properly executed invoice. Cash discounts and other payment terms included as part of the original agreement are not affected by the Prompt Payment Act. 4.7 RECIPROCITY - In accordance with N.J.S.A. 52:32-1.4 and N.J.A.C. 17: 12- 2. 13, the State of New Jersey will invoke reciprocal action against an out-of-State bidder whose state or locality maintains a preference practice for their bidders. 5. CASH DISCOUNTS - Bidders are encouraged to offer cash discounts based on expedited payment by the State. The State will make efforts to take advantage of discounts, but discounts will not be considered in determining the lowest bid. a. Discount periods shall be calculated starting from the next business day after the recipient has accepted the goods or services received a properly signed and executed State Payment Voucher form and, when required, a properly executed performance security, whichever is latest. b. The date on the check issued by the State in payment of that Voucher shall be deemed the date of the State's response to that Voucher. 6. STANDARDS PROHIBITING CONFLICTS OF INTEREST - The following prohibitions on vendor activities shall apply to all contracts or purchase agreements made with the State of New Jersey, pursuant to Executive Order No. 189 (1988). a. No vendor shall pay, offer to pay, or agree to pay, either directly or indirectly, any fee, commission, compensation, gift, gratuity, or other thing of value of any kind to any State officer or employee or special State officer or employee, as defined by N.J.S.A. 52:13D-13b and e., in the Department of the Treasury or any other agency with which such vendor transacts or offers or proposes to transact business, or to any member of the immediate family, as defined by N.J.S.A. 52:13D-13i., of any such officer or employee, or partnership, firm or corporation with which they are employed or associated, or in which such officer or employee has an interest within the meaning of N.J.S.A. 52: 13D-13g. b. The solicitation of any fee, commission, compensation, gift, gratuity or other thing of value by any State officer or employee or special State officer or employee from any State vendor shall be reported in writing forthwith by the vendor to the Attorney General and the Executive Commission on Ethical Standards. c. No vendor may, directly or indirectly, undertake any private business, commercial or entrepreneurial relationship with, whether or not pursuant to employment, contract or other agreement, express or implied, or sell any interest in such vendor to, any State officer or employee or special State officer or employee or special State officer or employee having any duties or responsibilities in connection with the purchase, acquisition or sale of any property or services by or to any State agency or any instrumentality thereof, or with any person, firm or entity with which he is employed or associated or in which he has an interest within the meaning of N.J.S.A. 52: 130-13g. Any relationships subject to this provision shall be reported in writing forthwith to the Executive Commission on Ethical Standards, which may grant a waiver of this restriction upon application of the State officer or employee or special State officer or employee upon a finding that the present or proposed relationship does not present the potential, actuality or appearance of a conflict of interest. 105 d. No vendor shall influence, or attempt to influence or cause to be influenced, any State officer or employee or special State officer or employee in his official capacity in any manner which might tend to impair the objectivity or independence of judgment of said officer or employee. No vendor shall cause or influence, or attempt to cause or influence, any State officer or employee or special State officer or employee to use, or attempt to use, his official position to secure unwarranted privileges or advantages for the vendor or any other person. The provisions cited above in paragraph 6a through 6e shall not be construed to prohibit a State officer or employee or Special State officer or employee from receiving gifts from or contracting with vendors under the same terms and conditions as are offered or made available to members of the general public subject to any guidelines the Executive Commission on Ethical Standards may promulgate under paragraph 6c. e. f. 106 REQUIRED SUBMISSION STATE OF NEW JERSEY DIVISION OF PURCHASE AND PROPERTY (DPP) NOTICE OF INTENT TO SUBCONTRACT FORM THIS NOTICE OF INTENT TO SUBCONTRACT FORM MUST BE COMPLETED AND INCLUDED AS PART OF EACH PROPOSER’S PROPOSAL. FAILURE TO SUBMIT THIS FORM WILL BE CAUSE FOR REJECTION OF THE BID AS NON-RESPONSIVE. DPP Solicitation Number: DPP Solicitation Title: 05-X-36861 Taxation Data Warehouse, Partnership Development of a Proposer’s Name and Address: INSTRUCTIONS: PLEASE CHECK ONE OF THE BELOW-LISTED BOXES: If awarded this contract, I will engage subcontractors to provide certain goods and/or services. ALL BIDDERS THAT INTEND TO ENGAGE SUBCONTRACTORS MUST ALSO SUBMIT A COMPLETED AND CERTIFIED SUBCONTRACTOR UTILIZATION PLAN WITH THEIR BID PROPOSALS. If awarded this contract, I do not intend to engage subcontractors to provide any goods and/or services. ALL BIDDERS THAT DO NOT INTEND TO ENGAGE SUBCONTRACTORS MUST ATTEST TO THE FOLLOWING CERTIFICATION: I hereby certify that if the award is granted to my firm and if I determine at any time during the course of the contract to engage subcontractors to provide certain goods and/or services, pursuant to Section 3.11 of the Standard Terms and Conditions, I will submit the Subcontractor Utilization Plan (Plan) for approval to the Division of Purchase and Property in advance of any such engagement of subcontractors. Additionally, I certify that in engaging subcontractors, I will make a good faith effort to achieve the subcontracting set-aside goals established for this contract, and I will attach to the Plan documentation of such efforts in accordance with NJAC 17:13-4 and the Notice to All Bidders. PRINCIPAL OF FIRM: (Signature) (Title) (Date) 107 NOTICE TO ALL PROPOSERS NOTICE OF INTENT TO SUBCONTRACT FORM SUBCONTRACTOR UTILIZATION PLAN FORM PROCEDURES FOR SMALL BUSINESS PARTICIPATION AS SUBCONTRACTORS The contract(s) to be awarded as a result of this Request for Proposal (RFP) will include small business subcontracting targets pursuant to NJAC 17:13-4. and Executive Order 71. Each bidder is required to make a good faith effort to meet the set-aside subcontracting targets of awarding a total of twenty-five percent (25%) of the value of the contract to New Jersey-based, New Jersey Commerce and Economic Growth Commission-registered (Commerce) small businesses, with a minimum of five (5) percent awarded to each of the three categories set forth below, and the balance of ten (10) percent spread across the three categories. Bidders must respond to this requirement by completing the Notice of Intent to Subcontract form. Failure to include a completed and signed Notice of Intent to Subcontract form will be sufficient cause to reject a bidder’s proposal as non-responsive. Any bidder intending to subcontract, pursuant to Section 3.11 of the Standard Terms and Conditions, must complete the Subcontractor Utilization Plan (Plan). Bidders are instructed to list all proposed subcontractors on the Plan. A bidder intending to subcontract must include a completed and signed Plan or be subject to rejection of its proposal as non-responsive. DEFINITIONS: “Small business” means a business that is independently owned and operated is incorporated or registered in and has its principal place of business located in the State of New Jersey. Has 100 or fewer full-time employees Has gross revenues falling in one of the following three categories: 1. 2. 3. 0 to $500,000 (Category I); $500,001 to $5,000,000 (Category II); $5,000,001 to $12,000,000 (Category III). “Commerce-registered” means a small business that meets the requirements and definitions of “small business” and has applied for and been approved by Commerce as a small business. PB – SA – 2B Revised 12/03 108 PROCEDURE: If a bidder intends to subcontract, the following actions should be taken to achieve the set-aside subcontracting goal requirements: 1. 2. 3. Attempt to locate eligible small businesses in Categories I, II and III appropriate to the RFP; Request a listing of small businesses by Category from Commerce; Record efforts to locate eligible businesses, including the names of businesses contacted and the means and results of such contacts; Provide all potential subcontractors with detailed information regarding the specifications; Attempt, whenever possible, to negotiate prices with potential subcontractors submitting higher than acceptable price quotes; Obtain, in writing, the consent of any proposed subcontractor to use its name in response to the RFP; and, Maintain adequate records documenting efforts to achieve the set-aside subcontracting goals. 4. 5. 6. 7. Proposals should also contain the following items with the Plan, as applicable: 1. A copy of Commerce’s proof of registration as a small business for any business proposed as a subcontractor; and, Documentation of the bidder’s good faith effort to meet the targets of the set-aside subcontracting requirement in sufficient detail to permit the Evaluation Committee to effectively assess the bidder’s efforts to comply if the bidder has failed to attain the statutory goals. 2. If awarded the contract, the bidder shall notify each subcontractor listed in the Plan, in writing. Note that a bidder’s failure to satisfy the small business subcontracting targets or provide sufficient documentation of its good faith efforts to meet the targets may preclude award of a contract to the bidder. Bidders seeking eligible small businesses should contact: New Jersey Commerce and Economic Growth Commission Office of Small Business 20 West State Street PO Box 820 Trenton, New Jersey 08625-0820 Telephone: (609) 292-2146 Each bidder awarded a contract for a procurement which contains the set-aside subcontracting goal requirement shall fully cooperate in any studies or surveys which may be conducted by the State to determine the extent of the bidder’s compliance with NJAC 17:13-1.1 et seq., and this Notice to All Bidders. PB – SA – 2B Revised 12/03 109 REQUIRED SUBMISSION STATE OF NEW JERSEY DIVISION OF PURCHASE AND PROPERTY (DPP) SUBCONTRACTOR UTILIZATION PLAN (REFERENCED IN THE SOLICITATION TERMS AND CONDITIONS) DPP Solicitation No.: 05-X-36861 DPP Solicitation Title: TAXATION DATA WAREHOUSE, PARTNERSHIP DEVELOPMENT OF A Proposer’s Telephone No.: Proposer’s Contact Person: NOTE: If utilizing subcontractors, failure to submit this properly completed form will be sufficient cause for rejection of the bid. Proposer’s Name and Address: INSTRUCTIONS: List all businesses you intend to use as subcontractors. This form may be duplicated for extended lists. REGISTERED WITH NJ COMMERCE AND ECONOMIC GROWTH COMMISSION * SMALL BUSINESS CATEGORY SUBCONTRACTOR’S NAME, ADDRESS, ZIP CODE TELEPHONE NUMBER AND VENDOR ID NUMBER TYPE(S) OF GOODS OR SERVICES TO BE PROVIDED ESTIMATED VALUE OF SUBCONTRACT(S) I II III * For those Proposers listing Small Business Subcontractors: Attach copies of NJ Commerce & Economic Growth Commission registration for each subcontractor listed. If proposer has not achieved established subcontracting set-aside goals, also attach documentation of good faith effort to do so in the relevant category in accordance with NJAC17:13-4 and the Notice to All Proposers. I hereby certify that this Subcontractor Utilization Plan (Plan) is being submitted in good faith. I certify that each subcontractor has been notified that it has been listed on this Plan and that each subcontractor has consented, in writing, to its name being submitted for this contract. Additionally, I certify that I shall notify each subcontractor listed on the Plan, in writing, if the award is granted to my firm, and I shall make all documentation available to the Division of Purchase and Property upon request. I further certify that all information contained in this Plan is true and correct and I acknowledge that the State will rely on the truth of the information in awarding the contract. PRINCIPAL OF FIRM: (Signature) PB-SA-3 Revised 9/01 (Title) (Date) 110 NOTICE TO ALL PROPOSERS SET-OFF FOR STATE TAX NOTICE Please be advised that, pursuant to P.L 1995, c. 159, effective January 1, 1996, and notwithstanding any provision of the law to the contrary, whenever any taxpayer, partnership or S corporation under contract to provide goods or services or construction projects to the State of New Jersey or its agencies or instrumentalities, including the legislative and judicial branches of State government, is entitled to payment for those goods or services at the same time a taxpayer, partner or shareholder of that entity is indebted for any State tax, the Director of the Division of Taxation shall seek to set off that taxpayer's or shareholder's share of the payment due the taxpayer, partnership, or S corporation. The amount set off shall not allow for the deduction of any expenses or other deductions which might be attributable to the taxpayer, partner or shareholder subject to set-off under this act. The Director of the Division of Taxation shall give notice to the set-off to the taxpayer and provide an opportunity for a hearing within 30 days of such notice under the procedures for protests established under R.S. 54:49-18. No requests for conference, protest, or subsequent appeal to the Tax Court from any protest under this section shall stay the collection of the indebtedness. Interest that may be payable by the State, pursuant to P.L. 1987, c.184 (c.52:32-32 et seq.), to the taxpayer shall be stayed. 111 THIS PAGE INTENTIONALLY BLANK. 112 NEW JERSEY TAXATION DATA WAREHOUSE Pro Forma Price Proposal Worksheet To Guide Proposers A B C D E F G H I J Qualified Proposer Price Proposal Opportunity Name: Opportunity Year 1 % of State % of State Revenue as Revenue as Premium for Reduction for Total Exceeding Missing Estimated Total % of Estimated Estimated Proposer Proposer Additional Proposed Column C Additional Additional Gain High Gain Low State Gain State Gain State Price to Column State State (and No (and No High Low Revenue (In Dollars) B Revenue Revenue More) Less) (or More) (or Less) $1,000,000 $350,000 35% 10.0% 25.0% $375,000 $262,500 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Total for All Projects $600,000 $300,000 $300,000 $300,000 $2,500,000 $2,400,000 $400,000 $200,000 $100,000 $50,000 $3,150,000 $150,000 $60,000 $45,000 $45,000 $650,000 $350,000 $140,000 $60,000 $25,000 $12,500 $587,500 25% 20% 15% 15% 26% 15% 35% 30% 25% 25% 19% 11.0% 15.0% 18.0% 20.0% 20.0% 15.0% 10.0% 5.0% $166,500 $71,250 $58,500 $60,000 $731,250 $410,000 $151,000 $67,500 $29,500 $15,000 $673,000 $1,404,250 $1,250,000 $750,000 $120,000 $750,000 $450,000 $51,000 $375,000 $225,000 $40,500 $375,000 $225,000 $42,750 $375,000 $225,000 $516,750 $3,125,000 $1,875,000 $262,500 $3,000,000 $1,800,000 $112,000 $500,000 $300,000 $51,000 $250,000 $150,000 $22,500 $125,000 $75,000 $11,875 $62,500 $37,500 $459,875 $3,937,500 $2,362,500 $976,625 $7,062,500 $4,237,500 10.0% 11.0% 15.0% 18.0% 20.0% 25.0% 20.0% 15.0% 10.0% 5.0% $5,650,000 $1,237,500 Final Proposal Price Proposal Form A B C D E F G H I J Qualified Proposer Price Proposal Opportunity Name: Opportunity Project A Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity Project B Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Total for All Projects % of State % of State Revenue as Revenue as Premium for Reduction for Total Exceeding Missing Estimated Total % of Estimated Estimated Proposer Proposer Additional Proposed Column C Additional Additional Gain High Gain Low State Gain State Gain State Price to Column State State (and No (and No High Low Revenue (In Dollars) B Revenue Revenue More) Less) (or More) (or Less) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 10.0% 11.0% 15.0% 18.0% 20.0% 25.0% 20.0% 15.0% 10.0% 5.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 10.0% 11.0% 15.0% 18.0% 20.0% 25.0% 20.0% 15.0% 10.0% 5.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Proposer Company Name Proposer Authorized Representative Signature 05-X-36861, Taxation Data Warehouse, Partnership Development of a Addendum 02 Attachment 1. Cover sheet item #9 states the Performance Security is 10%, and RFP Section 6.2 (page 71) further describes the performance bond. On what is the performance bond predicated, i.e., 10% of what amount? The vendor is providing the State with a budget for its cost of the effort. What it gets back is based on its costs, in part. The performance bond amount is 10% of the individual vendor's budgeted cost. Solutions including off-shore resources will not be considered by the State. RFP Section 1.5.2.2 on page 7 of the RFP. Does the State want cost sheets in the draft proposal? For Forms A through F, equipment description and employee information only should be listed. Costs will be added to those sheets for the final proposal and submitted with the final proposal. All information must be included on the opportunity project cost worksheet for the draft proposal. The costs will be used for discussion purposes only, and do not reflect the price that will be use for the final submission of opportunity projects. All costs are to be accounted for in the detail for the draft proposal for each opportunity project. RFP Section 3.5.3.5.1 on page 43 of the RFP. Vendors are reluctant to give 5 years of hardware maintenance on their equipment. The equipment vendors at the Mandatory Pre-Proposal Conference answered this question stating that five years will not be an issue. RFP Section 3.5.1.7.1 on page 33 as opposed to Section 3.5.3.11.3 on page 43 of the RFP. The former deals with system availability, while the latter speaks to on-site warranty and maintenance response time. RFP Section 3.5.1.7.1 is modified as follows: "Any more than two (2) outages of more than 30 minutes each in any given month will be unacceptable, except for planned maintenance that shall not exceed sixteen (16) hours per month." The text in italics and bold has been added to the RFP. As far as the two hour response time is concerned, the State affirms RFP Section 3.5.3.11.3 reads correctly. 2. 3. 4. 5. 6. RFP Section 4.3.3.7 on page 61 of the RFP. What if none of the financial qualifiers listed in this section of the RFP is available for the bidding entity? The items list in RFP Section 4.3.3.7 are what the State requires for adequate evaluation of a firm's ability to provide the equipment, services, and personnel necessary to complete all of the requirements of the RFP. RFP Section 4.3.3.7 remains as it appears in the document. Is this a cost-plus project? Reference is made to this in the answer to question #4 above. This is not a fixed-cost-plus contract. There is no stated percentage or fixed amount that will be applied to cost in determining the State's purchase price. Should the vendor include in its proposal additional resources for the State to hire should the need arise? The Division of Taxation will allocate all of the necessary resources to ensure that all phases of any opportunity project are handled in an expeditious manner. 7. 8. Page 1 of 1 9. RFP Section 1.6.4 on pages 10 and 11 is modified as indicated below. "The dates for submissions are set forth in KEY EVENTS above, with the time and location as follows: "TIME: 2:00 PM Eastern time" 10. Per RFP Section 1.6, "Key Events", Qualifications Proposals are due on or before May 21, 2004. Page 2 of 2 Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 06 Attachment 1. At the bidder’s conference there was a discussion about lowering the typical New Jersey limitation of liability. It was stated that this would be addressed. What is the process to deal with this requirement? Given the unique nature of benefits funded projects, we believe that this would be appropriate. RESPONSE: The State agrees to modify the indemnification language in the State’s Standard Terms and Conditions appearing on page 101 of the RFP. Delete Section 2.2 as it currently appears and substitute the following language: The contractor’s liability to the State for actual, direct damages resulting from the contractor's performance or non-performance, or in any manner related to the contract, for any and all claims, shall be limited in the aggregate to two hundred percent (200%) of the value of the contract, except that such limitation of liability shall not apply to the following: 1. The contractor's obligation to indemnify the State of New Jersey and its employees from and against any claim, demand, loss, damage or expense relating to bodily injury or the death of any person or damage to real property or tangible personal property, incurred from the work or materials supplied by the contractor under the contract caused by negligence or willful misconduct of the contractor; 2. 3. The contractor's breach of its obligations of confidentiality; and, Contractor's liability with respect to copyright indemnification. The contractor's indemnification obligation is not limited by but is in addition to the insurance obligations contained in Section 2.3 of the Standard Terms and Conditions. The contractor shall not be liable for special, consequential, or incidental damages. 2. Section 4.3.1.4 of the RFP states that there will be no set-aside for this procurement. Given the benefits-funded nature of the contract, and the likely unwillingness of small business partners to take benefits funded risk on their payment or deferral of payment until the benefits are achieved this seems reasonable. However, the web-site contradicts 4.3.1.4 and says that there is a setaside. Could you please clarify this? RESPONSE: There is no contradiction or inconsistency as the RFP and the web-site relate to different circumstances. The language in Section 4.3.1.4 of the RFP relates to procurements where resulting contracts will be entirely reserved for an SBE. That is not the case in this procurement. The web-site refers to a Small Business Enterprise (SBE) subcontracting requirement. The State requires that if a Proposer chooses to use subcontractors, in accordance with the NJ Small Business Program, the Proposer must make a good faith effort to award 25% of the contract dollars to eligible New Jersey Small Business enterprises registered with the NJ Commerce & Economic Growth Commission. The Proposer will have to arrange any and all payment arrangements with its subcontractor(s). If the Proposer does not intend to utilize subcontractors, then this requirement is moot. Page 1 of 10 Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 06 Attachment If the Proposer attempts to utilize NJ SBE subcontractors but is unsuccessful in its efforts, the final proposal must document the Proposer’s good faith efforts to utilize NJ SBE subcontractors. The Proposer must include the completed "Notice of Intent to Subcontract Form" (page 107 from the RFP) in its final proposal. If subcontractors will be used for this project, the Proposer must also submit the "Subcontractor Utilization Plan" (page 110 from the RFP) in its final proposal. 3. Please explain why there are three sets of cost forms (pages 80-82 of the RFP). Is the state looking for the bidders to attempt to divide their proposals into multiple pieces? This may be difficult, as multiple pieces may be needed to achieve benefits. RESPONSE: At the clarification meeting, the State explained that Proposers were to submit the summary allocation of “costs” for each opportunity proposed for use in: 1) evaluation to determine the value to the Division of Taxation and the Proposer for each opportunity; and 2) confidential discussions. The option was also given to Proposers to submit suggestions for alternate methods of information to be used for evaluation and confidential discussions. Proposers responded with the submission of alternates. A review has been made of the suggestions for alternate methods of information to be used for evaluation and confidential discussions. Based upon those suggestions, a simplified form is being substituted for the forms appearing on pages 80-82 of the RFP. The simplified form, which will be used for draft proposal purposes only, may be downloaded from the Purchase Bureau’s website. 4. Please explain the form on page 93. Is this where you would like the benefits estimates to be placed or is this a cost form? RESPONSE: This form makes reference to the separate worksheet that is to be submitted with the final proposal. The worksheet details each opportunity, as to its revenue, price, bonus and penalty situations, and the projections of low and high revenues. 5. What additional external agency data sources not listed in the RFP can the State obtain (e.g., Department of Labor Employee and Employer Wage Reports)? RESPONSE: In addition to employee wage reports, the State intends to solicit information from the racetracks, licensing agencies and other private and public sources of information as they are identified. 6. Can the State please provide information on their current license agreements (e.g., site license or limited number of seats) with the preferred tools specified in the RFP (e.g., Oracle, Ascential DataStage, Business Objects, etc.)? RESPONSE: Development and production server licenses are available for the DataStage ETL tool. OIT has a total of 25 developer tool seats for DataStage, but these are often in use. The Proposer should propose acquiring developer seats for its full-time ETL programmers on the project. Page 2 of 10 Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 06 Attachment Server and development licenses are available for both ProfileStage (data profiling and analysis) and QualityStage (data standardization, scrubbing and geo-coding) tools. The Proposer should propose acquiring a ProfileStage development seat for its use. There is sufficient QualityStage development licensing to accommodate the Proposer staff. Internet and Intranet server licenses for BusinessObjects WebIntelligence are available. The Proposer will need to provide as many full-client BusinessObjects licenses as are needed to meet the needs of Taxation (a minimum of two such licenses should be provided for Security and Universe administration). While the State’s EDW may be used as a conduit or source for certain data, and it has sufficient Oracle database licensing, the Proposer will need to provide all database licensing for the TDW database server environments. 7. Will the TDW solution be housed at DOT or OIT? If at DOT, does the infrastructure exist to securely exchange data between the TDW and the legacy applications located at OIT? RESPONSE: The RFP suggests a preference that the TDW be housed at the Division of Taxation. Proposers may provide alternate solutions for the TDW but they should keep in mind the standards and recommendations of the RFP. Regardless of the location, if the warehouse data environment is inside the State’s core firewall, then data can be securely exchanged. 8. Does the State have a preferred hardware server platform and operating system for the new TDW? RESPONSE: The State supports Sun-Solaris 8.x and 9.x, IBM-AIX 5.x and Intel-Microsoft (NT, 2000 and 2003) environments. 9. Do vendors need to propose backup hardware and software for the TDW, or will existing State hardware and software be used? Please provide specifications if leveraging existing hardware and software. RESPONSE: The Division of Taxation will be receiving data from sources external to the EDW or OIT, therefore a solution for backup should be provided by the Proposers for the TDW. The State’s Common Data Architecture mirrors the Enterprise Data Warehouse for primary backup, and uses tape for secondary backup of the mirror. Data marts are periodically backed up to tape based upon the fragility of the data and the business needs. If housed at the State’s data center, OIT would employ a similar approach. 10. Do vendors need to propose hardware and software for unloading external data source tapes/cartridges or will existing State hardware and software be used? Please provide specifications if leveraging existing hardware and software. RESPONSE: Solutions will be necessary to accommodate the loading of any external data source that is not currently part of the existing State structure. Page 3 of 10 Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 06 Attachment 11. Do vendors need to propose separate hardware and software for each of the non-production environments (i.e., testing, training and development) or is the requirement to just provide separate testing, training and development environments? RESPONSE: The RFP states that separate hardware will be necessary for production and development environments. The training environment can share the development environment. Software for those environments should be proposed and can be shared as licensing permits. The Enterprise Data Warehouse provides a development area for development and unit testing, and a production area for system testing, training and production. 12. What is required for the Cost portion of the Opportunity Project Cost Benefits Worksheets? RESPONSE: For the Final proposal all required worksheets must be completed. 13. What is the definition of Cost? RESPONSE: For purposes of the draft proposal only, cost is the amount paid for a purchase. It should not include any amounts that would be added, such as cost of money and/or profit that would be included in the price proposal for the final proposal. An example of cost would be wages paid to consultants as opposed to the amount billed to the customer for the consultant’s service. 14. What is required for the Subcontractor Utilization Plan attachment? RESPONSE: The "Subcontractor Utilization Plan" (page 110 in the RFP) is discussed in the response to question #2 above. As stated on the form, the Proposer utilizing a New Jersey Small Business Enterprise (SBE) as a subcontractor must attach a copy of NJ Commerce & Economic Growth Commission registration for each NJ SBE subcontractor listed. If the Proposer has not achieved established subcontracting set-aside goals, it must also attach documentation of a good faith effort to do so in the relevant category in accordance with NJAC17:13-4 and the Notice to All Proposers (pages 108-109). 15. The below questions are organized according to the Shared IT Architecture document Version 2.0 dated March 2004. (The page numbers refer to the Shared IT document). It is our understanding that this document, along with the TDW RFP, is an essential driver for the TDW technology selections. RESPONSE: Yes, the document provides the installed base necessary to comply with the State’s IT Shared Architecture. With reference to the State’s Shared IT Architecture, the following applies. For consistency, reusability and total cost of ownership, OIT uses the Shared IT Architecture as a benchmark for comparing technology solutions. Those solutions that implement supported or preferred technologies are presumed to be in the State’s best interest. Proposed technologies that diverge from these must document that the alternate technology is: 1) technically superior to the existing preferred or supported technology; 2) Page 4 of 10 Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 06 Attachment compatible with existing systems; and, 3) has a total cost of ownership that is equal to or less than the existing preferred or supported technology. 16. What are the specific desired locations where the hardware, network and software related to the TDW effort will be housed? RESPONSE: The RFP suggests a preference that the TDW be housed at the Division of Taxation. Proposers may provide alternate solutions for the TDW but they should keep in mind the installed base and recommendations of the RFP. 17. What is the desired work location for the TDW development team? Can any TDW development equipment be located off-site or must all equipment and staff be located in NJ State facilities? RESPONSE: All equipment must be located at the State’s facilities. The Division of Taxation has made space available for the development team to work alongside the Division’s data warehouse team. This will allow knowledge transfer to begin on the first day of the contract; also any questions or unusual situations can be resolved immediately as the TDW staff will be available for consultation and assistance. OIT staff required for support of the project will be made available as needed at the Division of Taxation. 18. What State staff is available to assist with installation work and how will their efforts be coordinated? RESPONSE: The Division of Taxation Technical Support team does not have the staff to assist in the installation process but the TDW team will be available to provide any assistance that it can. OIT Operations staff will provide installation and configuration of preferred or supported hardware and software if the TDW is housed at the data center. OIT data warehousing staff will provide configuration of enterprise tools used for development and production of the TDW, regardless of location. OIT data warehouse DBA’s can provide DBA support regardless of location. As a baseline, Proposers should assume the following nominal costs for support per MONTH: During Development $ 4,500 $10,800 $ 2,700 Post-Development Support $ 900 $2,700 $ 900 Operations Staff Data Warehousing Staff Database Administration Staff 19. Are there certain Labor Unions that are responsible for specific areas of the State’s IT infrastructure? If so, will the State provide contacts so that planning can take place for the proposal? RESPONSE: The are no labor requirements for work within the Division of Taxation or OIT. Page 5 of 10 Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 06 Attachment 20. Is there an option to share any existing servers, storage area networks (SAN), or Backup/Recovery with TDW? If not, all those costs will be prepared assuming a stand-alone TDW environment. RESPONSE: The Division of Taxation will not approve sharing any TDW servers, or storage hardware. OIT has an environment that can securely host the Taxation Data Warehouse. It can also house a standalone hardware stack in the State data center. The Division of Taxation has decided to require a standalone hardware stack for hosting the TDW. 21. Please indicate the current version of each of these software products used by the State and whether or not the licenses allow for the software to be used by TDW: RESPONSE: See below. Oracle (including DBMS, Designer) - Licensing Agreement(s) and current version(s)? The Oracle solution should be Oracle 10g. The Proposer must provide DBMS licensing as appropriate for the solution. Sybase PowerDesigner v10 is the currently used ERD modeling tool. Business Objects, including Crystal Reports - Licensing Agreement(s) and current version(s)? Is the State considering the use of any other BI tools? OIT currently deploys BusinessObjects v5 and will shortly be rolling out v6.1B. OIT anticipates deploying version 7.0 by April 2005. Crystal Reports is not the preferred BI platform (per RFP section 3.5.1.5.8.2). The State will consider alternate technologies against the test as stated in the answer to Question 15. Ascential DataStage – Are DataStage connectors available for each mainframe application, Licensing Agreement(s) and current version(s)? OIT currently deploys DataStage 390XE v7, with a production and development server. OIT owns 25 developer seats, which should cover State staff and non-full time Proposer ETL staff. The Proposer should plan on acquiring developer licenses for its full-time core ETL programmer(s). OIT can generate COBOL and JCL for the IBM environment. OIT can also use EDBC to connect to DB2, Datacom, IMS and VSAM data. Adabas data will need to be exported and FTP’d. Ascential MetaStage - Licensing Agreement(s) and current version(s)? OIT currently deploys ProfileStage v7 with two developer seats, which should cover State staff. The Proposer should plan on acquiring a developer seat. Ascential QualityStage - Licensing Agreement(s) and current version(s)? OIT currently deploys QualityStage v7. There is sufficient developer licensing to accommodate the Proposer staff. SAS Data Miner - Licensing Agreement(s) and current version(s)? What level of State staff expertise exists? Page 6 of 10 Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 06 Attachment SAS Data Miner will not be available for the TDW. The Proposer will need to include software if data mining is proposed for the solution. Microsoft products - Licensing Agreement(s) and current version(s)? RESPONSE: Microsoft Desktop Licenses – Windows 2000, Office XP, Access 2000, Access 97 and IE 6.0 Microsoft Server Licenses: Windows 2000 Server and MS SQL Server 2000 No additional licenses are available within Taxation. J2EE Application Hosting Environment – Please verify the version numbers listed in the Shared IT Architecture and provide information on Licensing Agreement(s). The application server is 7.x in 3 flavors: Standard Edition, Platform Edition and Enterprise Edition. Licensing is per CPU. Some of the infrastructure is shared (free) and some is dedicated (funded by agencies). Secure File Transfer (SFT) – Licensing Agreement(s) and current version(s)? It is custom coded with no licensing or version numbers. Web Servers – Licensing Agreement(s) and current version(s)? software licenses be reused for TDW? Can existing hardware or Web Servers are 4.1 and 6.0. Licensing is per CPU. Some of the infrastructure is shared (free) and some is dedicated (funded by agencies). 22. The following sections of the State's Standard Terms and Conditions appearing on page 103 are deleted: 3.7 3.8 3.9 3.10 Extension of Contract to Quasi State agencies. Extension of Contract to Political Subdivisions Extensions of Contracts to County Colleges Extensions of Contracts to State Colleges 23. At the request of the Division of Taxation, the Internal Revenue Service reviewed the RFP. The IRS has suggested a modification to the language of Section 3.11, Subcontracting or Assignment, of the State's Standard Terms and Conditions appearing on page 103. Insert the following language at the end of that provision: RESPONSE: Treasury regulation 301.6103(n), Title 26, stipulates that disclosures of Federal tax returns and return information by contractor(s) of the Division of Taxation cannot be made to subcontractors, without written approval by the Internal Revenue Service. 24. The Internal Revenue Service has suggested modifications to the language of the Confidentiality Agreement. The suggested language is as follows: Page 7 of 10 Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 06 Attachment Paragraph 2 (Disclosure to Third Parties) – "If the Receiving Party is a subcontractor, all terms of confidentiality as contained in this contract, will be imposed on the subcontractor." Paragraph 5 (Termination) – In the last sentence, strike the opening words, "A the [Disclosing Party's] request,". RESPONSE: A Revised Confidentiality Agreement, revised to include the suggestions of the Internal Revenue Service may be downloaded from the Purchase Bureau’s website. Proposers are required to execute the revised Confidentiality Agreement and submit it with the draft proposals. A revised Confidentiality Agreement must be submitted by every person who has executed a copy of the Confidentiality Agreement to date. 25. The Internal Revenue Service has suggested modifications to RFP Section 3.5.1.9, "Security and Audit". The following language is added to Section 3.5.1.9: Federal Tax Information (FTI) as defined in Section 6103 of the Internal Revenue Code retains its character as FTI even with the removal of data elements from FTI in order to create certain products. FTI integrated by the TDW with data/information from other sources means the TDW will be subject to the Federal Safeguards requirements, in its entirety, and any products created therefrom. Disclosure of FTI, cleansed or not cleansed, from the TDW, inclusive of any products created therefrom, is prohibited. 26. The IRS has provided documents relating to the US Treasury Information Technology Security Program, which were distributed to the Proposers at the clarification meeting of July 21, 2004. RESPONSE: This information, provided in a binder at the July 21st Clarification Meeting, must be returned to the Division of Taxation. 27. A Proposer requested the following: Taxpayer Bill of Rights, 2003 Taxation Annual Report and Listing of all New Jersey Taxes. RESPONSE: This information can be found on the State’s web site at www.nj.gov. The annual report list all of the taxes administered by the Division of Taxation. 28. A Proposer requested the amount of Use Tax collected per Fiscal Year. RESPONSE: The Division of Taxation does not separately track the amount of Use Tax collected per fiscal year for all areas in which it is collected. Sales & Use Tax is combined at the collection level. 29. A Proposer has requested the refund procedures applicable to individual gross income tax refunds. RESPONSE: Gross Income Tax Returns are received by the Division of Revenue and are processed into the system either by keying or scanning. Once the return is processed into an electronic format, it is run through an edit process; if accepted it will post to the taxpayer's account and the overpayment will either go automatically or be placed into a review category for manual review. The Division of Taxation (Taxpayer Accounting Branch) is responsible for this manual review and either correction or subsequent Page 8 of 10 Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 06 Attachment approval of the overpayment. Overpayments are either refunds, credit forward or a combination refund/credit forward. A more detailed explanation of the review categories can be provided upon request. 30. A Proposer requested information relating to, and copies of, the Division’s work papers program. RESPONSE: The Division’s Audit Activity is currently revising its standard work paper program. Consequently, the Division cannot provide copies of the Division’s work papers program. 31. A proposer questioned the requirement for a 5-Year Plan laying out requirement of Knowledge Transfer. RESPONSE: The RFP states that the Proposer should supply a Knowledge Transfer Plan with the Draft Proposal. The Division of Taxation expects that the Proposer will have developed, and included in its Draft Proposal, a plan for knowledge transfer as well as a training plan as set forth in the RFP. 32. A Proposer requested a listing of all the Division’s data sources and whether they are electronic or paper. RESPONSE: This information was provided in the RFP and the information book. Additionally, as new data sources are discovered or made available to the Division of Taxation, they will be shared with the Proposers. 33. A Proposer requested the total number of filers in New Jersey. RESPONSE: This information can be found in the Division of Taxation annual reports. 34. A Proposer requested the number of years of information the Division expects to store in the TDW. RESPONSE: The standard minimum for data to be stored will be six (6) years plus the current year. Needs will vary by the different users and no policy currently exists for the number of years required for retention. 35. A Proposer requested the amount of fees associated with Partnerships. RESPONSE: Refer to page 23 in the 2003 Annual Report of the Division of Taxation. 36. A Proposer requested a listing of all the tax returns filed that contains Partnership information. RESPONSE: This information is available in tab 7 of the book distributed during the clarification meeting. This information should also be available in the annual report. 37. A Proposer requested the amount of information keyed from each tax return. Page 9 of 10 Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 06 Attachment RESPONSE: This information is available in tab 7 of the book distributed during the clarification meeting. 38. A Proposer requested the NJ Income Tax Return computer record layouts to Gents (CBT & Ind). RESPONSE: This information is available in tab 7 of the book distributed during the clarification meeting. 39. Please define the term “predictive testing” in section 4.3.2.11 on page 57 of the RFP. RESPONSE: The goal of predictive application testing is to assess the behavior of applications before they are deployed into a production environment. The predictive assessment results will be measured against client response time expectations and will provide the system implementation team with an end-user and server perspective as to the performance, availability and capacity metrics of the integrated application(s). As part of the predictive testing environment, the Contractor is required to prototype/baseline the integrated applications/transactions from a sampling of client locations. Using performance assessment methodologies, the Contractor's team, working with State staff, will baseline the performance characteristics of the applications using various client topologies to gauge real-world end-to-end response times. The CompuWare products, Application Vantage and Application Expert, have been acquired by the State in order to provide predictive tuning and performance management services for its in-house development staff and its agency information technology partners. The Contractor must identify how this product or similar product sets will be used to predict and simulate the behavior of the integrated software applications. The predictive simulations will be based upon comparisons of varying network climates. These climates include various bandwidth, latency, and background traffic conditions. 40. A Proposer requested that the Division reconsider including the net collection of interest and penalties in the revenue stream resulting from implementation of business opportunities. RESPONSE: The Division agrees to include the net collection of interest and penalties in the revenue stream resulting from implementation of business opportunities. However, no costs of collection will be included in the revenue stream. 41. A Proposer asked whether revenue projections should be provided by calendar year or fiscal year. RESPONSE: Opportunity year. Page 10 of 10 Appendix 1: Confidentiality and Non-Disclosure Agreement (Revised) This Agreement made and entered into between the State of New Jersey, acting by and through the Director of the Division of Purchase and Property in the Department of the Treasury, for and on behalf of the Division of Taxation, hereinafter referred to as the State or Disclosing Party, and _________________________________________________________________________________________ ____________________ hereinafter referred to as the Receiving Party. The State of New Jersey, Division of Taxation, as part of this Request for Proposal ("RFP") process, intends to disclose confidential information to persons who agree to the terms of this Confidentiality and Non-Disclosure Agreement. Any person who seeks to become the State’s Business Partner must agree to the terms set forth in this Confidentiality and Non-Disclosure Agreement in order to participate in the RFP process and evidence such agreement by signing and returning this Confidentiality and Non-Disclosure Agreement to the buyer responsible for this procurement (See RFP Section 1.4.1). The terms of this Confidentiality and Non-Disclosure Agreement shall continue for the duration of the Contract, and the Business Partner selected by the State will, thus, continue to abide by all of the terms set forth herein for this period, or such later date if the parties mutually agree. 1. Confidential Information a. "Confidential Information" shall mean any information or data of a confidential nature, which is not considered public record, including but not limited to: (a) personal information about individuals and entities; (b) technical, developmental, marketing, sales, operating, performance, cost, know-how, methodologies, business and process information; (c) computer programs and related documentation, including related programming know-how and techniques; and (d) all record bearing media containing or disclosing such information, know-how and techniques disclosed to [Receiving Party] under this Agreement. Without limiting the generality of the foregoing, it is expressly acknowledged that: Pursuant to NJSA 54:50-8 (records confidential) all of the records and files of the Division of Tax are confidential. b. Confidential Information shall not include information that (a) is or becomes available to the public other than by disclosure by the [Receiving Party] in violation of this Agreement; (b) was demonstrably known to [Receiving Party] previously with no obligation to hold it in confidence; (c) is independently developed by either party without recourse to the Confidential Information; or (d) was rightfully obtained by either party from a third party without an obligation of confidentiality. 2. Disclosure to Third Parties [Receiving Party] shall not disclose Confidential Information to any third party (including Receiving Party's agents, representatives, independent consultants/contractors, subcontractors, as well as any third party's agents, representatives, independent consultants/contractors and subcontractors) unless, prior to any disclosure, the [Receiving Party] has obtained [Disclosing Party's] written permission and the third party has executed a confidentiality and nondisclosure agreement provided by [Disclosing Party] which requires the third party recipient to consent to abide by the terms of this Agreement. [Receiving Party] shall not allow the Confidential Information to be accessed through a computer bulletin board or other "shareware" distribution process. If the [Receiving Party] is a subcontractor, all terms of confidentiality as contained in this contract, will be imposed on the subcontractor. 3. Protection of Confidential Information The Confidential Information, including permitted copies, shall be deemed to be the exclusive property of the [Disclosing Party]. [Receiving Party] shall (a) only use Confidential Information as provided by this Agreement, (b) only disclose the Confidential Information to its employees or authorized representatives who have a need to know, or are legally permitted to have access to such information, and sign this Confidentiality and Non-Disclosure Agreement, (c) treat the Confidential Information with the same degree of care that it would afford to its own confidential information of a similar nature, but no less than reasonable care, (d) have no right, title, or interest in the Confidential Information except as provided for in this Agreement, (e) notify [Disclosing Party] within two (2) business days of any loss or unauthorized disclosure or use of the Confidential Information, (f) not remove, modify or obliterate any copyright, trademark, or other proprietary rights notice from the Confidential Information, and (g) return any and all Confidential Information to [Disclosing Party] which may be in [Receiving Party's] possession immediately upon termination of this Agreement. Page 1 of 2 4. Relief / Remedy [Receiving Party] acknowledges that any disclosure or use of any Confidential Information in violation of this Agreement may cause [Disclosing Party] irreparable harm, the amount of which is difficult to estimate, making any remedy at law or in damage inadequate. Therefore, [Receiving Party] agrees that [Disclosing Party] shall have the right to obtain from any court of competent jurisdiction specific performance or other temporary or permanent injunctive relief for any breach or threatened breach of this Agreement. This right shall be in addition to any other remedies available to [Disclosing Party] in law or in equity. 5. Termination Upon termination of the purpose for which the Confidential Information was disclosed (or earlier upon the request of [Disclosing Party], [Receiving Party] shall promptly return to the [Disclosing Party] or destroy all Confidential Information and any copies of documents, papers or other material which may contain or be derived from the Confidential Information which is in its possession. [Receiving Party] shall provide a certificate certifying that it has satisfied its obligations under this paragraph. 6. Miscellaneous a. Any notice required or permitted to be given under this Agreement shall be given in writing and shall be effective from the date sent by registered or certified mail, by hand, facsimile, or overnight courier to the addresses set forth on the first page of this Agreement. b. This Agreement shall not be changed, modified or amended except by a writing signed by the parties. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. The [Receiving Party] shall not assign this Agreement without the prior written consent of the [Disclosing Party]. c. This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings of any kind and every nature between them. d. The individual executing this Agreement on behalf of the [Receiving Party] hereby represents and warrants that he or she is duly authorized to execute this Agreement on behalf of [Receiving Party]. e. The obligations with respect to Confidential Information created by this Agreement will survive until such time as the Confidential Information becomes publicly known. f. If any provision of this Agreement is held invalid under any applicable law, such invalidity will not affect any other provision of this Agreement that can be given effect without the invalid provision. g. This Agreement shall be governed in all respects by the laws of the State of New Jersey without giving effect to conflicts of laws principles. Any litigation arising out of or in connection with this Agreement shall take place in a State or Federal court of competent jurisdiction in New Jersey. _______________________________________________ Signature ______________________________ Date _______________________________________ Print Name ___________________________________________ Company Name (Print) Page 2 of 2 Data Warehouse Cost Summary Table Estimated Total Project Cost - Enter all estimated costs for the entire project into this table. Description Infrastructure Hardware Software Maintenance Professional Services DW/BI Development Training Other (Identify by some classification) Estimated Infrastructure Cost Total $0.00 Estimated Total Revenue Summary Cost Infrastructure - Estimated cost for the total project for hardware, software, professional services, maintenance, training and other goods and services to build the data warehouse/BI development. Direct Opportunity Cost Business Opportunity 1 Business Opportunity 2 Business Opportunity 3 Business Opportunity 4 Business Opportunity 5 Business Opportunity 6 Business Opportunity 7 Business Opportunity 8 Business Opportunity 9 Business Opportunity 10 Business Opportunity 11 Business Opportunity 12 Business Opportunity 13 Business Opportunity 14 Business Opportunity 15 Estimated Direct Opportunity Cost Total Estimated Total Project Cost $0.00 $0.00 Direct Opportunity Cost - Estimated direct cost for each opportunity to be summarized for the opportunity duration (maximum 5 years). Do no include any cost identified above. Estimated Total Revenue - Total amount of additional tax receipts for each opportunity for its duration. Do not include Penalty & Interest in this calculation as it is for evaluation purposes only. $0.00 Estimated Total Opportunity Revenue Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 07 Attachment 1. Section 1.1 of the State's Standard Terms and Conditions is changed to the following language: 1.1 BUSINESS REGISTRATION – All New Jersey and out of State business organizations must obtain a Business Registration Certificate (BRC) from the Department of the Treasury, Division of Revenue prior to conducting business with the State of New Jersey. “Business organization means an individual, partnership, association, joint stock company, trust, corporation, or other legal business entity or successor thereof. Proof of valid business registration shall be submitted by a bidder with its bid proposal. No contract will be awarded without proof of business registration with the Division of Revenue. Any questions in this regard can be directed to the Division of Revenue at (609) 292-1730. Form NJREG. can be filed online at http://www.state.nj.us/treasury/revenue/gettingregistered.htm#busentity In addition, RFP Section 6.3 is changed to the following: 6.3 BUSINESS REGISTRATION The following shall supplement the Standard Terms and Conditions pertaining to Business Registration set forth in, Appendix 1, Section 1.1. “Affiliate” means any entity that (1) directly, indirectly, or constructively controls another entity, (2) is directly, indirectly, or constructively controlled by another entity, or (3) is subject to the control of a common entity. An entity controls another entity if it owns, directly or individually, more than 50% of the ownership in that entity. “Business organization” means an individual, partnership, association, joint stock company, trust, corporation, or other legal business entity or successor thereof; “Business registration” means a business registration certificate issued by the Department of the Treasury or such other form or verification that a contractor or subcontractor is registered with the Department of Treasury; “Contractor” means a business organization that seeks to enter, or has entered into, a contract to provide goods or services with a contracting agency; “Contracting agency” means the principal departments in the Executive Branch of the State Government, and any division, board, bureau, office, commission or other instrumentality within or created by such department, or any independent State authority, commission, instrumentality or agency, or any State college or university, any county college, or any local unit; with respect to this Contract, the contracting agency shall mean the Division; “Subcontractor” means any business organization that is not a contractor that knowingly provides goods or performs services for a contractor or another subcontractor in the fulfillment of a contract. A contractor shall submit a copy of its business registration at the time of submission of its bid proposal in response to this RFP. A subcontractor shall provide a copy of its business registration to any contractor who shall forward it to the contracting agency. No contract with a subcontractor shall be entered into by any contractor unless the subcontractor first provides proof of valid business registrations. The contractor shall provide written notice to all subcontractors that they are required to submit a copy of their business registration to the contractor. The contractor shall maintain a list of the names of any subcontractors and their current addresses, updated as necessary during the course of the contract performance. The contractor shall submit to the contracting agency a copy of the list of subcontractors, updated as necessary during the course of performance of the contract. The contractor shall submit a complete and accurate list of the subcontractors to the contracting agency before a request for final payment is made to the using agency. The contractor and any subcontractor providing goods or performing services under the contract, and each of their affiliates, shall, during the term of the contract, collect and remit to the Director of the Division of Taxation in the Department of the Treasury the use tax due pursuant to the “Sales and Use Tax Act, P.L. 1966, c. 30 (N.J.S.A. 54:32B-1 et seq.) on all their sales of tangible personal property delivered into the State. This paragraph shall apply to all contracts awarded on and after September 1, 2004 2. The Proposer must include the cost for Business Objects licenses for the WebE product and 15 full client licenses. The Proposer shall include in its proposal the cost for maintenance and support associated with the Oracle licenses provided by the Proposer. Pricing for disaster recovery is optional. While the TDW is under development, the Proposer's disaster recovery planning must provide for recovery such that all project timeframes are maintained. Once the first Business Opportunity is in production, disaster recovery planning must accommodate restored operations of the TDW within seven (7) calendar days. 5. The Proposer must identify and define fully the functionality of a case management application in its proposed solution. The case management application should be priced separately if it can be unbundled from the proposed solution. The initial draft proposals reflect the costs to be borne by the Proposers for the hardware, software and professional services in the development of the data warehouse infrastructure and the proposed business opportunities. In the next iteration of the draft proposal, the Proposer shall offer and discuss a proposed schedule for the payback of the costs identified in the initial iteration. The State will discuss the proposed schedule of the payback of the costs with the Proposers during the next round of confidential discussions. 3. 4. 6. Taxation Data Warehouse, Partnership Development of a 05-X-36861 Addendum 09 Attachment 1. For the reporting server, a per-processor (enterprise) Business Objects Web-I license is required for each processor. In addition the State requires 20 full client Business Objects licenses." RFP Section 3.5.1.7.4, "Server Requirements", is modified as follows: Proposers are required to propose a separate, physical server for the production environment. Separate, physical servers for development, testing, training, etc., are not required. Servers must meet existing minimum standards established by OIT. OIT will provide the then current standards during contract negotiations. 2. 3. The Taxation Data Warehouse (TDW) will be installed and will physically reside at the Taxation Building at 50 Barracks Street in Trenton, NJ. The Division of Taxation has physical space to accommodate ten (10) Proposer personnel. If the Proposer's solution includes any maintenance agreements, software license agreements, etc., the agreements must be included in the next iteration of the Draft Proposal. 4. 5. Taxation Data Warehouse, 05-X-36861 Addendum 13 Attachment Section 6.3, "Business Registration", in the RFP is deleted and replaced with the following text. The following shall supplement the Standard Terms and Conditions pertaining to Business Registration. “Affiliate” means any entity that (1) directly, indirectly, or constructively controls another entity, (2) is directly, indirectly, or constructively controlled by another entity, or (3) is subject to the control of a common entity. An entity controls another entity if it owns, directly or individually, more than 50% of the ownership in that entity. “Business organization” means an individual, partnership, association, joint stock company, trust, corporation, or other legal business entity or successor thereof; “Business registration” means a business registration certificate issued by the Department of the Treasury or such other form or verification that a contractor or subcontractor is registered with the Department of Treasury; “Contractor” means a business organization that seeks to enter, or has entered into, a contract to provide goods or services with a contracting agency; “Contracting agency” means the principal departments in the Executive Branch of the State Government, and any division, board, bureau, office, commission or other instrumentality within or created by such department, or any independent State authority, commission, instrumentality or agency, or any State college or university, any county college, or any local unit; with respect to this Contract, the contracting agency shall mean the Division; “Subcontractor” means any business organization that is not a contractor that knowingly provides goods or performs services for a contractor or another subcontractor in the fulfillment of a contract. A bidder shall submit a copy of its business registration at the time of submission of its bid proposal in response to this RFP. A subcontractor shall provide a copy of its business registration to any contractor who shall forward it to the contracting agency. No contract with a subcontractor shall be entered into by any contractor unless the subcontractor first provides proof of valid business registrations. The contractor shall provide written notice to all subcontractors that they are required to submit a copy of their business registration to the contractor. The contractor shall maintain a list of the names of any subcontractors and their current addresses, updated as necessary during the course of the contract performance. The contractor shall submit to the contracting agency a copy of the list of subcontractors, updated as necessary during the course of performance of the contract. The contractor shall submit a complete and accurate list of the subcontractors to the contracting agency before a request for final payment is made to the using agency. The contractor and any subcontractor providing goods or performing services under the contract, and each of their affiliates, shall, during the term of the contract, collect and remit to the Director of the Division of Taxation in the Department of the Treasury the use tax due pursuant to the “Sales and Use Tax Act, P.L. 1966, c. 30 (N.J.S.A. 54:32B-1 et seq.) on all their sales of tangible personal property delivered into the State. This paragraph shall apply to all contracts awarded on and after September 1, 2004 Page 1 of 1 Pursuant to the recently signed Executive Order 134, please carefully read the following information. Failure to submit the attached certification form(s) with the Final Proposal shall be cause for automatic rejection of the proposal. The following section has been added as part of the terms and conditions of this RFP: 6.26 Requirements of Executive Order 134 In order to safeguard the integrity of State government procurement by imposing restrictions to insulate the award of State contracts from political contributions that pose the risk of improper influence, purchase of access, or the appearance thereof, Executive Order 134 was signed on September 22, 2004 (“EO 134”). Pursuant to the requirements of EO 134, the terms and conditions set forth in this section are material terms of any contract resulting from this RFP: 6.26.1 Definitions For the purpose of this section, the following shall be defined as follows: a) Contribution – means a contribution reportable as a recipient under “The New Jersey Campaign Contributions and Expenditures Reporting Act.” P.L. 1973, c. 83 (C.10:44A-1 et seq.), and implementing regulations set forth at N.J.A.C. 19:25-7 and N.J.A.C. 19:25-10.1 et seq. Currently, contributions in excess of $400 during a reporting period are deemed “reportable” under these laws. As of January 1, 2005, that threshold will be reduced to contributions in excess of $300. b) Business Entity – means any natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of New Jersey or any other state or foreign jurisdiction. It also includes (i)all principals who own or control more than 10 percent of the profits or assets of a business entity or 10 percent of the stock in the case of a business entity that is a corporation for profit, as appropriate; (ii)any subsidiaries directly or indirectly controlled by the business entity; (iii)any political organization organized under 26 U.S.C.A. 527 that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee; and (iv)if a business entity is a natural person, that person’s spouse or child, residing in the same household. 6.26.2 Breach of Terms of Executive Order 134 Deemed Breach of Contract It shall be a breach of the terms of the contract for the Business Entity to (i) make or solicit a contribution in violation of this Order, (ii) knowingly conceal or misrepresent a contribution given or received; (iii) make or solicit contributions through intermediaries for the purpose of concealing or misrepresenting the source of the contribution; (iv) make or solicit any contribution on the condition or with the agreement that it will be contributed to a campaign committee or any candidate of holder of the public office of Governor, or to any State or county party committee; (v) engage or employ a lobbyist or consultant with the intent or understanding that such lobbyist or consultant would make or solicit any contribution, which if made or solicited by the business entity itself, would subject that entity to the restrictions of EO 134; (vi) fund contributions made by third parties, including consultants, attorneys, family members, and employees; (vii) engage in any exchange of contributions to circumvent the intent of EO 134; or (viii) directly or indirectly through or by any other person or means, do any act which would subject that entity to the restrictions of EO 134. 6.26.3 Certification and Disclosure Requirements a) The State shall not enter into a contract to procure from any Business Entity services or any material, supplies or equipment, where the value of the transaction exceeds $17,500, if that Business Entity has solicited or made any contribution of money, or pledge of contribution, including in-kind contributions to a candidate committee and/or election fund of any candidate for or holder of the public office of Governor, or to any State or county political party committee during certain specified time periods. Accordingly, the Business Entity shall submit with its bid Page 2 of 2 proposal Executive Order 134 Certification(s) in the form set forth in Appendix 3 attached hereto, certifying that no contributions prohibited by Executive Order 134 have been made by the Business Entity. A separate Certification is required for each person or organization defined above as a Business Entity. Failure to submit the Certification(s) with the Bid Proposal shall be cause for automatic rejection of the bid proposal. b) Prior to awarding any contract or agreement to any Business Entity, the Business Entity proposed as the intended awardee of the contract shall report all contributions the Business Entity made during the preceding four years to any political organization organized under 26 U.S.C.527 of the Internal Revenue Code that also meets the definition of a “continuing political committee” within the mean of N.J.S.A. 19:44A-3(n) and N.J.A.C. 19:25-1.7, in the form of the Disclosure attached hereto as Appendix 4. A separate Disclosure is required for each person or organization defined above as a Business Entity. Upon receipt of a Notice of Intent to Award a Contract, the intended awardee shall submit to the Division, in care of the Purchase Bureau Buyer, the Disclosure(s) within five (5) business days of the State’s request. c) Further, the Contractor is required, on a continuing basis, to report any contributions it makes during the term of the contract, and any extension(s) thereof, at the time any such contribution is made. A copy of the Continuing Disclosure of Political Contributions is attached hereto as Appendix 5. A separate Disclosure is required for each person or organization defined above as a business entity. 6.26.4 State Treasurer Review The State Treasurer or his designee shall review the Disclosures submitted pursuant to this section, as well as any other pertinent information concerning the contributions or reports thereof by the intended awardee, prior to award, or during the term of the contract, by the contractor. If the State Treasurer determines that any contribution or action by the contractor constitutes a breach of contract that poses a conflict of interest in the awarding of the contract under this solicitation, the State Treasurer shall disqualify the Business Entity from award of such contract. All other terms and conditions of the RFP will remain the same. ATTACHMENTS: Appendices 3, 4 and 5 Page 3 of 3 Appendix 3 Effective October 15, 2004 Executive Order 134 Certification Bidder: ______________________________________Solicitation Number: __________________ For the purpose of this Certification: “Business Entity” - means any natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of New Jersey or any other state or foreign jurisdiction. It also includes (i) all principals who own or control more than 10 percent of the profits or assets of a business entity or 10 percent of the stock in the case of a business entity that is a corporation for profit, as appropriate; (ii) any subsidiaries directly or indirectly controlled by the business entity; (iii) any political organization organized under 26 U.S.C.A. 527 that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee; and (iv) if a business entity is a natural person, that person’s spouse or child, residing in the same household. A separate certification is required for each person or organization defined above as a Business Entity. “Contribution” – means a Contribution reportable by the recipient under the “New Jersey Campaign s and Expenditures Reporting Act,” P.L. 1973, c.83 (C.19:44A-1 et seq.), and implementing regulations set forth at N.J.A.C. 19:25-10.1 et seq. Currently, Contributions in an amount in excess of $400 during a reporting period are deemed “reportable” under these laws. As of January 1, 2005, that threshold will be reduced to Contributions in excess of $300. I hereby certify as follows: 1. Commencing on and after October 15, 2004, the below named person, company or organization has not solicited or made any Contribution of money, pledge of Contribution, including in-kind Contributions, as set forth below that would bar the award of a contract to the Bidder, pursuant to the terms of Executive Order 134, signed by Governor James E. McGreevey on September 22, 2004 (hereafter “E.O. 134”). a) Within the 18 months (from October 15, 2004) immediately preceding the Solicitation, the Business Entity has not made a Contribution to: (i) (ii) Any candidate committee and/or election fund of any candidate for or current holder of the public office of Governor; or Any State or county political party committee b. Effective October 15, 2004, during the term of office of the current Governor, the Business Entity has not made a Contribution to (i) (ii) Any candidate committee and/or election fund of the Governor; or Any State or county political party committee nominating such Governor in the election preceding the commencement of said Governor’s term. c) Effective October 15, 2004, within the 18 months immediately preceding the last day of the term of office of the Governor, the Business Entity has not made a Contribution to (i) Any candidate committee and/or election fund of the Governor; or any State or County political party committee of the political party nominating such Governor in the last gubernatorial election preceding the election. In the event such a Contribution has been made, the Business Entity will be barred from receiving the award of a contract throughout the remaining term of the current Governor and the full term of the next Governor. Page 4 of 4 2. If the Bidder is awarded a contract pursuant to the solicitation for this bid proposal, the below-named person or organization will, on a continuing basis, continue to report any Contributions it makes during the term of the contract, and any extension(s) thereof. 3. This certification is submitted to the Division of Purchase and Property (the “Division”) in order to induce the Division to accept the Bidder’s bid proposal, with knowledge that the Division is relying on the truth of the statements contained herein, and that compliance with EO 134 is a material term of any contract awarded pursuant to the solicitation for this bid proposal. I certify that, to the best of my knowledge and belief, the foregoing statements by me are true. I am aware that if any of the statements are willfully false, I am subject to punishment. Company or Organization: _____________________________________________________________ By: ___________________________________________ Print Name:_____________________________________ Relationship to Contractor (check one): Officer or other authorized representative Political Organization Subsidiary Principal Spouse or child Date: __________________________ Title: __________________________________ Page 5 of 5 Appendix 4 Effective October 15, 2004 Disclosure of Political Contributions Bidder: __________________________________ Solicitation Number: ___________________ Pursuant to Executive Order #134 (“EO 134”) promulgated by the Honorable James E. McGreevey, Governor of New Jersey, all business entities with which the State intends to contract are required to disclose all Contributions in excess of $400 (N.J.A.C. 19:25-10(1), et seq.) (in excess of $300 as of January 1, 2005) from October 15, 2004, through the date of signing of this disclosure, to any entity designated and organized as a “political organization” under 26 U.S.C.A. 527, that is also defined as “continuing political committee” under N.J.S.A. 19:44A-3(n) and N.J.A.C. 19:25-1.7. Indicate “none” if no Contributions are being declared. A separate Disclosure must be submitted by each of the following, defined as a “Business Entity” under EO 134: (i) (ii) (iii) (iv) a Business Entity submitting a Disclosure on its own behalf; all principals who own or control more than 10 percent of the profits or assets of a business entity or 10 percent of the stock in the case of a business entity that is a corporation for profit; any subsidiaries directly or indirectly controlled by the business entity; any political organization organized under section 527 of the Internal Revenue Code that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee; or if a business entity is a natural person, that person's spouse or child, living at the same address. Type of Contribution i.e., Cash, Check, Loan, In Kind (v) Name of Political Committee Date of Contribution Amount of Contribution Purpose of Political Committee This certification is submitted to the Division of Purchase and Property (the “Division”) in order to induce the Division to accept the Bidder’s bid proposal, with knowledge that the Division is relying on the truth of the statements contained herein. I certify that, to the best of my knowledge and belief, the foregoing statements by me are true. I am aware that if any of the statements are willfully false, I am subject to punishment. Company or Organization:________________________________________________________________________ By: __________________________________________ Print Name: __________________________________ Relationship to Contractor (check one): Officer or other authorized representative Political Organization Subsidiary Principal Spouse or child Page 6 of 6 Title: ______________________________ Date: _______________________________ Appendix 5 Effective October 15, 2004 Continuing Disclosure of Political Contributions Bidder: _________________________________ Solicitation Number: __________________________ Pursuant to Executive Order #134 (“EO 134”) promulgated by the Honorable James E. McGreevey, Governor of New Jersey, all business entities with which the State intends to contract are required to disclose all Contributions in excess of $400 (N.J.A.C. 19:25-10(1), et seq.) (in excess of $300 as of January 1, 2005) from October 15, 2004 through the date of signing of this disclosure, to any entity designated and organized as a “political organization” under 26 U.S.C.A. 527, that is also defined as “continuing political committee” under N.J.S.A. 19:44A-3(n) and N.J.A.C. 19:25-1.7. Indicate “none” if no Contributions are being declared. A separate Disclosure must be submitted by each of the following, defined as a “Business Entity” under EO 134: a Business Entity submitting a Disclosure on its own behalf; all principals who own or control more than 10 percent of the profits or assets of a business entity or 10 percent of the stock in the case of a business entity that is a corporation for profit; (viii) any subsidiaries directly or indirectly controlled by the business entity; (ix) any political organization organized under section 527 of the Internal Revenue Code that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee; or (x) if a business entity is a natural person, that person's spouse or child, living at the same address. Type of Contribution i.e., Cash, Check, Loan, In Kind (vi) (vii) Name of Political Committee Date of Contribution Amount of Contribution Purpose of Political Committee Pertaining to Disclosure of Political Contributions to: any candidate committee and/or election fund of any candidate for or current holder of the public office of Governor; and any State or county political party committee. Indicate “none” if no Contributions are being declared. Date of Amount of Type of Contribution Name of Committee or Fund Contribution Contribution i.e., Cash, Check, Loan, In Kind I certify that, to the best of my knowledge and belief, the foregoing statements by me are true. I am aware that if any of the statements are willfully false, I am subject to punishment. Company or Organization:_______________________________________________________________________________ By: __________________________________________ Print Name: ___________________________________ Relationship to Contractor (check one): Officer or other authorized representative Political Organization Subsidiary Principal Spouse or child Page 7 of 7 Title: _________________________________ Date: _________________________________ Taxation Data Warehouse, 05-X-36861 Addendum 14 Attachment 1. Section 1.2, "Purpose and Intent" – Delete the last sentence of the third paragraph and the fourth paragraph in its entirety and substitute the following language: Payments to the Business Partner will be made in accordance with the formula defined in the Instructions for Final Proposal Price Proposal Form on page 62 and Section 6.24 of the Special Terms and Conditions, Form of Compensation and Payment on page 76, which is applied against the receipts (defined in Section 2.0) collected from the Defined Business Intelligence Applications. The State is not guaranteeing a minimum payment to the Business Partner. If, however, receipts exceed 125% of the Business Partner’s estimated additional revenue, the State will compensate the Business Partner with a premium. 2. Section 2.0, "Definitions" – Delete the definition of Opportunity Year and substitute the following: Opportunity Year means the 365-day period following the collection by the Division of Taxation of the first receipts resulting from the implementation of any Defined Business Intelligence Application. Opportunity Years will extend for one-five full year term from the beginning of the first Opportunity Year. Payment Year is synonymous with Opportunity Year. Revenue means amounts consisting of tax only, resulting from the implementation of the data warehouse. Receipts means amounts consisting of tax, plus interest, plus penalty resulting from the implementation of the data warehouse. 3. Section 3.4.3, "TDW Project Scope" – Delete the section in its entirety and substitute the following: The project scope necessitates the construction, implementation and operation of the TDW that will achieve both the project objectives (Section 1.4) and the objectives of the Division of Taxation (Section 3.2.4). The Business Partner will provide all hardware, software and system integration services necessary to implement the TDW, and to allow the transfer of its operation to the Division of Taxation. Software must be flexible and capable of being configured to meet the specific needs of the Division of Taxation. Software may include Commercial Off-the-Shelf (COTS) software, software that is in development, software that will be developed, or any combination thereof. The Business Partner must initially finance the costs of the TDW project, agreeing to a delay in payment of project costs until the Division of Taxation realizes additional revenue from the implementation of Defined Business Intelligence Applications. The Business Partner will share in the financial risks and rewards of the TDW project. The Business Partner must estimate the increase in State revenue to be generated from the implementation of each Defined Business Intelligence Application. The State is not guaranteeing a minimum payment to the Business Partner. The Business Partner will share in accordance with a defined formula, in the receipts collected by the Division of Taxation. The Business Partner’s estimate of additional revenue will be the benchmark against which the State will calculate premium payments to the Business Partner. Page 1 of 4 1 If additional State receipts collected in any Payment Year exceed 125% of the Business Partner’s estimates of additional revenue, the Business Partner will receive a premium. The premium is calculated at a specific percentage multiplied by the difference between the Business Partner’s estimate and 1.25 times the estimate. The percentage premium is defined as a constant over the multi-year term of the aggregated Defined Business Intelligence Applications. The State reserves the right to use the TDW, both during and after the term of the contract, to pursue opportunities for increased revenue not identified by the Business Partner, so long as such pursuit does not interfere with the pursuit of Defined Business Intelligence Applications. Such State-identified opportunities will not be subject to gain sharing with the Business Partner. The Division of Taxation will tag and track collections from individual cases that have been identified solely through the implementation of Defined Business Intelligence Applications, commencing with Payment Year One. The Division of Taxation will advise the Business Partner of collections on a monthly basis to permit invoicing by the Business Partner. 4. Section 4.4, "Final Proposal Content: Technical and Price Proposals" – Delete the section beginning with “Instructions for Final Proposal Form” in its entirety and substitute the following: The Final Proposal Form is the price portion of the Final Proposal. It must be submitted with the Final Proposal and must be submitted in a separate sealed envelope from the Final Technical Proposal. Attached for example purposes only is a “Price Proposal Worksheet Example” to which Proposers may refer when completing the “Final Proposal Price Proposal Form”, which is also attached. Column A: Proposers must fill in the Opportunity name for each proposed Business Opportunity. Column B “Total Estimated Additional State Revenue Per Opportunity “must equal the sum of the estimated yearly amounts from the revised Opportunity Cost Sheets, which are attached. Column C “Total Estimated Additional State Revenue Cumulative by Year and Total” will automatically calculate. Column D “Total Proposed Opportunity Price Per Opportunity Year” must equal the amount from the revised Opportunity Cost Sheets. Column E “Total Proposed Price Cumulative Total” will automatically calculate. The first Payment Year begins as of the date that Receipts from any Business Opportunity are first posted to the Payment Pool, and continues thereafter for 12 months. If the date of posting to the Payment Pool of the first Receipts is between the first and fifteenth days of the month, the posting date will be as of the first day of that month. If the date of posting of the first Receipts is after the fifteenth day of the month, the posting date will be as of the first day of the following month. All Business Opportunities will be tracked against a single start date, as such, laterimplemented Business Opportunities will not benefit from a full five-year collection cycle. Payments to the Business Partner will be made over one single five-year period. Page 2 of 4 2 5. Section 6.24, "Form of Compensation and Payment" – Delete the section in its entirety and substitute the following: This Section supplements Section 4.5 of the RFP’s Standard Terms and Conditions. The State will establish a single Payment Pool and will post Receipts to it. The Business Partner will invoice the State upon determination of the actual amount of Receipts collected by the State and posted to the Payment Pool at the end of each payment month. The State will make monthly payments to the Business Partner based upon the amount posted to the Payment Pool, following the submission of an invoice by the Business Partner with supporting documentation evidencing that work during the period for which payment is sought has been satisfactorily completed. Invoices should reference the Payment Pool amounts and associated dates that Receipts became available for distribution. All invoices must be approved by the State Project Manager before payment will be authorized. Payments will be made in accordance with the following formula: for the first $10 million in Receipts collected, the Business Partner will receive 60% and the State will receive 40%. When Receipts have exceeded $10 million, the Business Partner will receive 25% and the State will receive 75% until the contract price has been reached. In any given Payment Year, if Receipts collected exceed 125% of Estimated Additional Revenue, the Business Partner may invoice for the premium. The premium is calculated as follows: 20% times the difference between the Business Partner’s estimate of additional State revenue and 1.25 times the estimate. The first Payment Year begins as of the date that Receipts from any Business Opportunity are first posted to the Payment Pool, and continues thereafter for 12 months. If the date of posting to the Payment Pool of the first Receipts is between the first and fifteenth days of the month, the posting date will be as of the first day of that month. If the date of posting of the first Receipts is after the fifteenth day of the month, the posting date will be as of the first day of the following month. All Business Opportunities will be tracked against a single start date, as such, laterimplemented Business Opportunities will not benefit from a full five-year collection cycle. Payments to the Business Partner will be made over one single five-year period. The State will withhold 10% (retainage) from all invoiced amounts, excluding premium payments, made to the Business Partner and will release the retainage as follows: 50% of retainage withheld from invoices submitted for periods prior to the beginning of the third Payment Year. 50% of retainage withheld from invoices submitted for periods prior to the beginning of the fifth Payment Year. The remaining retainage will be released upon satisfactory completion of all contractual obligations. The Business Partner must submit invoices for any special projects, additional work or other items properly authorized and satisfactorily completed under the contract. Invoices shall be submitted according to the payment schedule agreed upon when the work was authorized and approved. Payment can be made only for work when it has received all required written approvals and has been satisfactorily completed. 6. Section 7.0, "Attachments and Appendices" – Delete the costs and benefits worksheets appearing at pages 80-82 and substitute the "Opportunity Cost Sheet" included with this in Microsoft Word form. Page 3 of 4 3 7. Section 3.5.3.8, "Training" – The following new and additional language is added to this section of the RFP: At the beginning of the contract term, the State desires to send two of its employees to each course to be trained in Business Objects Universe Design, Business Objects Supervisor and Reporting with Web Intelligence. The Business Partner will be responsible for all costs associated with the training which the State has estimated will not exceed $20,000.00. The Proposers must include $ 20,000.00 in their price proposals to cover this training. Reimbursement to the Business Partner will be only for the actual amounts based upon the existing procedures if vouchers were being paid by the State. If the cost is less than the allocated amount, an adjustment will be made to credit the contract price for the difference. The training discussed in this paragraph is in addition to all other training requirements specified in the RFP and addressed by the Proposers in the draft proposals. Page 4 of 4 4 A Qualified Proposer Price Proposal B C D E Total Estimated Total Estimated Total Proposed Total Proposed Price Additional State Additional State Opportunity Cumulative Price Per Revenue Revenue Per Opportunity Total Cumulative By Opportunity Total Year & Total Opportunity Name: Opportunity Project A Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $2,475,000 $2,300,000 $4,900,000 $5,300,000 $1,300,000 $16,275,000 $2,475,000 $2,300,000 $4,900,000 $5,300,000 $1,300,000 $16,275,000 $5,300,000 $5,300,000 Project B Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $2,900,000 $1,800,000 $3,800,000 $4,100,000 $1,050,000 $13,650,000 $5,375,000 $4,100,000 $8,700,000 $9,400,000 $2,350,000 $29,925,000 $3,500,000 $8,800,000 Project C Year 1 Year 2 Start Year Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $1,300,000 $3,800,000 $3,900,000 $1,500,000 $10,500,000 $5,375,000 $5,400,000 $12,500,000 $13,300,000 $3,850,000 $40,425,000 $2,800,000 $11,600,000 Project D Year 1 Year 2 Year 3 Start Year Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $0 $4,500,000 $3,580,000 $1,300,000 $9,380,000 $5,375,000 $5,400,000 $17,000,000 $16,880,000 $5,150,000 $49,805,000 $3,600,000 $15,200,000 Project E Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $3,900,000 $2,400,000 $4,000,000 $4,100,000 $1,050,000 $15,450,000 $9,275,000 $7,800,000 $21,000,000 $20,980,000 $6,200,000 $65,255,000 $2,500,000 $17,700,000 Project F Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $3,100,000 $2,300,000 $5,500,000 $4,900,000 $3,500,000 $19,300,000 $12,375,000 $10,100,000 $26,500,000 $25,880,000 $9,700,000 $84,555,000 $4,800,000 $22,500,000 Project G Year 1 Year 2 Year 3 Year 4 Start Year Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $0 $0 $4,300,000 $3,300,000 $7,600,000 $12,375,000 $10,100,000 $26,500,000 $30,180,000 $13,000,000 $92,155,000 $3,600,000 $26,100,000 Project H Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $3,900,000 $3,400,000 $4,800,000 $4,100,000 $2,050,000 $18,250,000 $16,275,000 $13,500,000 $31,300,000 $34,280,000 $15,050,000 $110,405,000 $3,500,000 $29,600,000 Project I Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $4,400,000 $4,357,000 $5,075,000 $4,900,000 $2,500,000 $21,232,000 $20,675,000 $17,857,000 $36,375,000 $39,180,000 $17,550,000 $131,637,000 $3,800,000 $33,400,000 Project J Year 1 Year 2 Year 3 Year 4 Year 5 $3,900,000 $2,600,000 $3,500,000 $1,800,000 $2,300,000 $24,575,000 $20,457,000 $39,875,000 $40,980,000 $19,850,000 Final Proposal Price Proposal Form Version 2 A Qualified Proposer Price Proposal B C D E Total Estimated Total Estimated Total Proposed Total Proposed Price Additional State Additional State Opportunity Price Per Revenue Revenue Per Cumulative Opportunity Cumulative By Total Opportunity Total Year & Total Opportunity Name: Opportunity Project A Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Project B Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Project C Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Project D Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Project E Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Project F Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Project G Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Project H Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Project I Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity Opportunity Name: Opportunity $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Project J Year 1 Year 2 Year 3 Year 4 Year 5 Total for this Opportunity & Cumulative Totals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State of New Jersey Division of Taxation Opportunity Cost Sheet Revision 1.1.1.1.1.1 Opportunity Project Name: Opportunity Project A No. of Employees No. of Hours Costs Goods & Services Professional Services Project Management System Requirements System Design System Development Training System Implementation Total Professional Services Goods and Services Hardware COTS Software Other (Specify) Total Goods and Services Maintenance Services Annual Maintenance Management Annual Training Other (specify) Total Maintenance Services Total Cost of Opportunity (5 years) Estimated Benefit from Additional Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Total Additional Revenue Annual Benefit __________________________________________ Proposer Company Name _____________________________________ Proposer Authorized Representative Signature