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					                                        MINNESOTA

                            DEPARTMENT OF HUMAN SERVICES

                           AGING AND ADULT SERVICES DIVISION


                                REQUEST FOR PROPOSALS




                                         FOR
                                QUALIFIED GRANTEES TO

                         Rebalance and Integrate Long-Term Care
                       And Promote the Independence of Older Adults


For TDD, contact Minnesota Relay Service at (612) 297-5353 or 1-800-627-3529. If you ask,
we will give you this information in another form, such as Braille, large print, or audiotape.




                                      November 28, 2005



                            ____________________________________


     Revised: 04/14/2005                        1
I.   INTRODUCTION

     A.    PURPOSE OF REQUEST

           The Minnesota Department of Human Services (DHS), through its Aging and Adult
           Services Division (State), is seeking Proposals from qualified Responders to expand and
           integrate home- and community-based services for older adults that allow communities to
           re-balance their long-term care service delivery system, expand the respite care network,
           support caregivers and promote independence, as directed by Minnesota Statutes §§
           256.9754 and 256B.0917, subd. 6 and 13. The purposes of Community Service Grants
           are more fully set forth in Minn. Stat § 256B.0917, subd. 13, and the Community
           Services Development Grants Minn. Stat § 256.9754, Section 3.

     B.    BACKGROUND

           The DHS Aging and Adult Services Division currently funds a variety of long-term care
           services. DHS works in collaboration with partners including counties, area agencies on
           aging (AAAs), nursing facilities, health plans, health care organizations, public and
           private housing owners, ElderCare Development Partnerships (EDPs), and other for-
           profit and non-profit organizations. DHS has a broad role in providing care and services
           to older Minnesotans through Medical Assistance (MA), Elderly Waiver (EW), the
           Alternative Care (AC) program, and the Group Residential Housing (GRH) program.
           DHS also works in partnership with the Minnesota Board on Aging (MBA) in
           administering all programs funded by the Federal Older Americans Act (OAA).
           The Community Service/Community Services (CS/SD) grants are intended to help
           communities rebalance their long-term care (LTC) service system, promote targeted LTC
           systems change, help persons age 65 years and older stay in their own homes and
           communities, and support their families. These funds are primarily directed to programs
           that serve individuals at least 65 years old who are at risk of nursing home placement,
           and their family or other informal caregivers.
           CS/SD grants have funded 195 projects since 2001. These projects have served more than
           60,000 persons by increasing the supply of home- and community-based services (such
           as transportation, chore and home repairs, caregiver education and support), moving
           home care services into existing housing, increasing the number of volunteers providing
           services by more than 12,000 and helping to build or renovate over 770 units of
           affordable senior housing.
           Supporting families and other informal caregivers, changing the long-term care system,
           integrating consumer services and maximizing the use of limited funding resources
           requires collaboration of long-term care stakeholders. Changing the long-term care
           system may also involve identifying state and federal policies that may be barriers to the
           creation and support of home- and community-based services. DHS recognizes that the
           State, counties, healthcare organizations, AAAs, quasi-formal service providers (e.g.,
           faith-based, volunteer resources) and others are vital to integrated long-term care service
           delivery.

     C.    OBJECTIVE OF THIS RFP


          Revised: 04/14/2005                       2
                The objective of this RFP is to contract with a qualified Responder(s) to perform the
                tasks and services set forth in this RFP. The term of any resulting contract is anticipated
                to be for a maximum of eighteen months, from January 1, 2006 until June 30, 2007, with
                the option for up to one extension.

                Proposals must be submitted by 4:00 p.m. Central Time on February 24, 2006 at the
                information desk at 540 Cedar Street, St. Paul, MN or mailed to P.O. Box 64976,
                St. Paul, MN 55164-0976 and postmarked no later than February 24, 2006. This RFP
                does not obligate the State to award a contract or complete the project, and the State
                reserves the right to cancel the solicitation if it is considered to be in its best interest. All
                costs incurred in responding to this RFP will be borne by the Responder.

                This RFP provides background information and describes the services desired by the
                State. It delineates the requirements for this procurement and specifies the contractual
                conditions required by the State. Although this RFP establishes the basis for Responder
                Proposals, detailed obligations and additional measures of performance will be defined in
                the final negotiated contract.

II.   SCOPE OF WORK

      A.        OVERVIEW

                The overall objective of these grants is to rebalance the proportion of state long-term care
                dollars spent on nursing facility care vs. home- and community-based care by providing
                solutions that directly prevent or delay nursing home placement or move current nursing
                home residents into community settings.
                Funding will be targeted to projects that:

               Integrate formal health care (e.g., nursing facilities, health plans, managed care and
                county-based purchasing organizations, hospitals, clinics, and other formal service
                providers) with quasi-formal support systems (e.g., faith-based, family caregiver, or
                volunteer programs) to provide a more seamless consumer experience, achieve
                coordinated management of chronic diseases, and reduce the costs associated with
                fragmented or duplicated services.
               Support the capacity of care recipients (or their family or other designees) to choose,
                direct, purchase and manage care. The majority of older adults want an active role in
                making important care decisions.

               Combine multiple eldercare services to achieve better consumer access to a menu of
                integrated long-term care services, higher quality outcomes, and cost-savings in
                administrative expenses. Stand-alone, single-service providers will find it increasingly
                difficult to be financially sustainable due to limited public funding resources.
                Collaborations among service providers, nursing facilities, health plans, local
                governments, and for-profit and non-profit organizations have never been more
                important.
               Serve a larger number of persons or geographic area or integrate more services.
               Replicate or expand successful demonstrations and evidence-based practices in
                gerontology, long-term care, disease management, or technology.

               Revised: 04/14/2005                         3
                Use non-public funding or resources (private payment, sliding-fee scales, individual and
                 corporate donations, volunteer resources, cost-sharing, etc.) to reduce dependence on
                 federal, state, and county funding.

                Use existing resources more effectively to improve consumer outcomes and increase
                 services.

                Serve the needs of all consumers, including those with special cultural, language or other
                 needs.

       B.        TASKS/DELVERABLES

                 There are three types of CS/SD grants. Details of each type of project and specific
                 information about Tasks/Deliverables, Proposal Format including downloadable forms,
                 and examples are available by clicking on each of the links below:

                 CAPITAL AND RENOVATION REQUESTS

                 CS/SD SYSTEMS CHANGE REQUESTS

                 CS/SD PROGRAM REQUESTS (< $100,000)

III.   PROPOSAL FORMAT

       Proposals must conform to all instructions, conditions, and requirements included in the RFP.
       Responders are expected to examine all documentation and other requirements. Failure to
       observe the terms and conditions in completion of the Proposal are at the Responder’s risk and
       may, at the discretion of the State, result in disqualification of the Proposal as non-
       responsiveness. Acceptable Proposals must offer all services identified in Section II - Scope of
       Work and agree to the contract conditions specified throughout the RFP.

IV.    RFP PROCESS

       A.        RESPONDERS’ CONFERENCE

       A Responders’ Conference will be held via video conference on:

       December 13 from 1:30 to 3:30 PM Central Time at:

       Beltrami County Social Services                616 America Ave NW.            Bemidji
       Clay County Family Services                    715 – 11th St. N.              Moorhead
       Dakota Co Northern Service Center               1 Mendota Rd W.               West St. Paul
       Douglas County Human Svc                       809 Elm St. Suite 1186         Alexandria
       Freeborn County Human Svc                      203 W. Clark St.               Albert Lea
       Hubbard County Courthouse                      301 Court Ave                  Park Rapids
       Itasca County Courthouse                       123 N. 4th St.                 Grand Rapids
       Koochiching County Courthouse                  715 – 4th St.                  International Falls
       Lyon County Government Center                  607 W. Main St.                Marshall
       Mille Lacs Co unty Family Services             525 2nd St. SE.                Milaca
       Roseau County Courthouse                       606- 5th Ave SW.               Roseau
       Winona County Office Building                  202 W. 3rd St.                 Winona
                Revised: 04/14/2005                       4
Wright County Human Services                 1004 Commercial Dr.           Buffalo
Andersen Building, DHS Room 2360             540 Cedar St.                 St. Paul; and


December 15 at 10:00 AM to Noon Central Time at:

Big Stone County Family Services              340 NW 2nd St.               Ortonville
Blue Earth County Human Services              410 S. 5th St.,              Mankato
Cook County Courthouse                       411 W. 2nd St.                Grand Marais
Crow Wing County Central Service Bld         202 Laurel St.                Brainerd
Dakota County Northern Service               1 Mendota Rd W.               West St. Paul
Kanabec County Courthouse                    18 N. Vine St.                Mora
Kandiyohi County Human Service               2200 23rd St. NE              Willmar
Nobles County Courthouse                     315 10th St. 3rd Fl           Worthington
Olmsted County Social Services               2116 Campus Dr SE.            Rochester
Ottertail County Courthouse                  121 W. Junius                 Fergus Falls
Polk County Courthouse                       612 N. Broadway               Crookston
Stearns County Human Services                705 Courthouse Sq.            St. Cloud
St. Louis County Govt. Svc Ctr               320 W. 2nd St. Rm 709         Duluth
Andersen Building, DHS Room 2360             540 Cedar St.                 St. Paul

Responders must register on line at (insert hyper-link) no later than December 6, 2005. The
conference will serve as an opportunity for Responders to ask specific questions of State staff
concerning the project. Attendance at the Responders’ Conference is not mandatory, but is
recommended. Oral answers given at the conference will be non-binding. Written responses to
questions asked at the conference will be posted on the Internet at:
http://www.dhs.state.mn.us/main/groups/aging/documents/pub/DHS_id_005732.hcsp
two weeks after the final conference.

B.     RESPONDERS’ QUESTIONS

       Responders’ questions regarding this RFP must be submitted in writing prior to 4:00
       p.m. Central Time on December 29, 2005. Questions may be e-mailed to the STATE
       contact at:

                                        rolf.hage@state.mn.us

                                              or by mail:

                                              Rolf Hage
                                  Aging and Adult Services Division
                                   Department of Human Services
                                            PO Box 64976
                                      St. Paul, MN 55164-0976

       Other personnel are NOT authorized to discuss this RFP with Responders before
       the proposal submission deadline. Contact regarding this RFP with any State
       personnel not listed above could result in disqualification.

       Every attempt will be made to provide timely written answers to questions. Questions
       will be addressed in writing and posted on the RFP website:
      Revised: 04/14/2005                       5
      no later January 10, 2006. If any Responder makes an oral inquiry, the person listed
      above, or their designee, will require that the inquiry also be made in writing. The State
      will not be held responsible for oral responses to Responders.

C.    PROPOSAL SUBMISSION

      10 signed copies of the Proposal must be submitted. Proposals must either be:

                                        physically received by

                       4:00 p.m. Central Standard Time on March 10, 2006 at

                                       The Information Desk at
                                          540 Cedar Street
                                         St. Paul, MN 55155

                                                    or

                           sent by mail or other dated delivery service to

                                             Rolf Hage
                                 Aging and Adult Services Division
                                  Department of Human Services
                                           PO Box 64976
                                     St. Paul, MN 55164-0976

                              Postmarked no later than March 10, 2006

      to be considered. Late Proposals will not be considered and will be returned unopened to
      the submitting party.

      All Proposals, including required copies, must be submitted in a single sealed package or
      container. The main body of the Proposal pages must be submitted using the designated
      forms in at least 11-point font on 8 ½ X 11 inch paper, single spaced.

      It is solely the responsibility of each Responder to assure that their Proposal is delivered
      at the specific place, in the specific format, and prior to the deadline for submission.
      Failure to abide by these instructions for submitting Proposals may result in the
      disqualification of any non-complying Proposal.

D.    RFP MODIFICATIONS

      The State will not be liable for any errors in the RFP or other responses related to the
      RFP. The State reserves the right to correct or amend the RFP at any time with no cost or
      penalty to the State. If the State should correct or amend any segment of the RFP after
      submission of Proposals and prior to announcement of the Successful Responder, all
      Responders will be afforded ample opportunity to revise their Proposal to accommodate
      the RFP amendment and the dates for submission of revised Proposals announced at that
      time.

     Revised: 04/14/2005                        6
V.   PROPOSAL EVALUATION AND SELECTION

     A.    OVERVIEW OF EVALUATION METHODOLOGY

           1.      All responsive Proposals received by the deadline will be evaluated by the State.
                   Proposals will be evaluated on “best value” as specified below, using a 500 point
                   scale. The evaluation will be conducted in three phases:

                   a. Phase I     Required Statements Review
                   b. Phase II    Evaluation of Proposal Requirements
                   c. Phase III   Selection of the Successful Responder(s)

           2.      During the evaluation process, all information concerning the Proposals
                   submitted, except identity and number of Responders, will remain non-public and
                   will not be disclosed to anyone whose official duties do not require such
                   knowledge.

           3.      Non-selection of any Proposal will mean that either another Proposal(s) was
                   determined to be more advantageous to the State or that the State exercised the
                   right to reject any or all Proposals. At its discretion, the State may perform an
                   appropriate cost and pricing analysis of a Responder's Proposal, including an
                   audit of the reasonableness of any Proposal.

           4.      If a contract is awarded, the State will notify the Successful Responder(s) in
                   writing of the award of the contract. After the State and chosen Responder(s) have
                   successfully negotiated a contract, the State will notify the unsuccessful
                   Responders in writing that their Proposals have not been accepted. All public
                   information within Proposals will then be available for Responders to review,
                   upon request.

     B.    EVALUATION TEAM

           1.      An evaluation team will be selected to evaluate Responder Proposals.

           2.      State and professional staff, other than the evaluation team, may also assist in the
                   evaluation process. This assistance could include, but is not limited to, the initial
                   mandatory requirements review, contacting of references, or answering technical
                   questions from evaluators.

           3.      The State reserves the right to alter the composition of the evaluation team and
                   their specific responsibilities.

     C.    EVALUATION PHASES

           At any time during the evaluation phases, the State may, at the State’s discretion, contact
           a Responder to (1) provide further or missing information or clarification of their
           Proposal, (2) provide an oral presentation of their Proposal, or (3) obtain the opportunity
           to interview the proposed key personnel. Reference checks may also be made at this time.
           However, there is no guarantee that the State will look for information or clarification
           outside of the submitted Proposal. Therefore, it is important that the Responder ensure


          Revised: 04/14/2005                        7
 that all sections of the Proposal have been completed to avoid the possibility of failing an
 evaluation phase or having their score reduced for lack of information.

 1.      Phase I – Required Statements Review

         The Required Statements will be evaluated on a pass or fail basis. Responders
         must "pass" each of the requirements identified in these sections to move to Phase
         II. The Required Statements will also be reviewed for submission by the
         Responder of the optional certification as a Targeted Group Small Businesses or
         Economically Disadvantaged Small Businesses. If proper proof of such
         certification has been submitted, the eligible preference points will be awarded to
         the Responder at this time.

 2.      Phase II – Evaluation of Technical Requirements of Proposals

 a.      All proposals will be evaluated using the following scale:

            Project impact                                           125 points
            Coordination and collaboration                            60 points
            Work plan, personnel qualifications and outcomes         100 points
            Sustainability                                            60 points
            Budget                                                   100 points
            Nursing facility closure preference                       25 points
            TGSB/EDSB Certification                                   30 points
         Total                                                        500 points
 The evaluation criteria are interrelated and proposals are scored based upon how
 they:
        Reduce the proportion of State long-term care dollars spent on nursing facility vs.
         home- and community-based care by providing solutions that directly prevent or
         delay nursing home placement or move current nursing home residents into
         community settings.
        Integrate formal health care (e.g., nursing home, health plan, hospitals and other
         formal service providers) with quasi-formal support systems (e.g., faith-based,
         family caregiver, or volunteer programs) to provide a more seamless consumer
         experience, achieve coordinated management of chronic diseases, and reduce the
         costs associated with fragmented or duplicated services.
        Support the capacity of care recipients (or their family or other designees) to
         choose, direct, purchase, and manage care. The majority of older adults want an
         active role in making important care decisions.

        Combine multiple eldercare services to achieve better consumer access to a menu
         of integrated long-term care services, higher quality outcomes, and cost-savings in
         administrative expenses. Stand-alone, single-service providers will be
         increasingly difficult to sustain financially due to limited public funding
         resources. Collaborations among service providers, local governments, and for
         profit and non-profit organizations have never been more important.

        Serve a larger number of persons or geographic area or integrate more services.
Revised: 04/14/2005                       8
             Replicate or expand successful demonstrations and evidence-based practices in
              gerontology, long-term care, disease management, or technology.
             Use non-public funding or resources (private pay, sliding-fee scales, individual
              and corporate donations, volunteer resources, cost-sharing, etc.) to reduce
              dependence on federal, state, and county funding.

             Use existing resources more effectively to improve consumer outcomes and
              increase services.
             Serve the needs of all consumers, including those with special cultural, language
              and other needs.

b.    The evaluation team will review the components of each responsive Proposal submitted.
      Each component will be evaluated on the Responder's understanding and the quality and
      completeness of the Responder's approach and solution to the problems or issues
      presented.

c.    After reviewing the Proposals, the members of the evaluation team will rate each
      proposal component using the following formula:

      Project Impact (maximum 125 points):

      The project addresses the objectives in the RFP and
      1. The project description is clear, concise and complete
      2. The determination of need is based on objective information
      3. Services, Systems Change or Construction plans, as appropriate, are clearly delineated
      4. The project is clearly linked to the need, the work plan and outcomes, and budget

      Meets the objectives of the RFP and all 4 standards -100%
      Meets the objectives of the RFP and 3 standards - at least 75%
      Meets 4 standards but does not address RFP objectives - at least 50%
      Meets less than 3 standards or does not address RFP objectives - no more than 50%

      Coordination and Collaboration (maximum 60 points)

      All 5 evaluation questions on each draft county evaluation form are answered “yes” by
      each county or AAA listed on application 30 points
      Four questions “yes”                         20 points
      Three “yes”                                  15 points
      Two “yes”                                    10 points
      One “yes “                                     5 points

      All 5 evaluation questions on each draft AAA evaluation form are answered “yes” by
      each AAA listed on application       30 points
      Four questions “yes”                  20 points
      Three “yes”                           15 points
     Revised: 04/14/2005                       9
 Two “yes”                               10 points
 One “yes “                               5 points

 (Multiple county or AAA evaluations are prorated)

 For CS/SD Systems Change Projects:
 Partners minimally meet RFP requirements: at least one each of the 4 required partners or
 a letter explaining its absence and:
 1. MOU lists each partner, their duties and resource commitments
 2. Partners are correct to accomplish project
 3. Resources from each partner are appropriate to further the goals of the project
 4. Resources appropriate to services and systems change

 All partners or letters and meets all four other criteria                            100 %
 Doesn’t have all partners or letters and meets all other criteria     no more than 60 %
 All partners or letters and meets all three other criteria            no more than 75 %
 Doesn’t have all partners or letters and meets three other criteria   no more than 45 %
 All partners or letters and meets all two other criteria              no more than 50 %
 Doesn’t have all partners or letters and meets two other criteria     no more than 25 %

 Work plan, personnel qualifications & outcomes (maximum100 points)

 The applicant is capable of fulfilling the contract and the application has:
 1. Clear achievable outcomes
 2. Activities outlined in the work plan clearly support achieving the outcomes
 3. Outcome indicators that are appropriate and quantifiable
 4. Partner’s roles, if required, reflected in the work plan
 5. Designated a highly qualified project manager and other qualified staff

 The applicant is capable of fulfilling the contract and all of the applicable standards
 above are appropriate and quantifiable - 100%

 The applicant is capable of fulfilling the contract and no fewer than three of the
 applicable standards above are appropriate and quantifiable - at least 50%

 Fewer than three of the standards above are not appropriate or quantifiable or the
 applicant is not capable of fulfilling the contract - no more than 50%

 Sustainability (maximum 60 points)

 The application must directly address sustainability, coordinate with existing services and
 programs, have a specific plan and timetable for transition from grant funds, and that plan
 is reasonable and relates to both services and systems change goals.

Revised: 04/14/2005                        10
      An application that provides:
          1. a reasonable plan for achieving sustainability
          2. a time table to move from grant support
          3. Plausible funding assumptions
          4. Maximizes other 3rd part payers
          5. Uses sliding fee/private pay
          6. Uses other community resources

      All six of the above, sooner rather than later - 100%
      Any four of the above, sooner rather than later - at least 50%
      Less than any four of the above, sooner rather than later - no more than 50%

      Budget (maximum 100 points)

      The budget must be coherent and arithmetically correct; appropriate to outcomes and
      activities in amount and utility. Services or construction is cost effective. There is an
      adequate description of budget items. The Match meets the minimum standard in amount
      and validity and is confirmed by letter from each source. Partners contributions appear in
      the budget.

      Budget shows:
          1. Appropriate resources to achieve the project goals and provides relatively more
             affordable services or construction at a relatively low unit price. Match is
             tangible, adequate and appropriate from each partner - 100%
          2. Appropriate resources to achieve project goals and some affordable services at
             relatively low unit cost; Adequate and Appropriate match - no more than 75%
          3. Inadequate resources to achieve project goals and few affordable services or
             housing and services units at a relatively higher unit cost - no more than 50%

      NF Closure Preference (maximum 25 points)

      The application includes the name and address of Nursing Facility in the
      project market area that has permanently closed or is closing beds after
      12/31/03.                                                                25 points

      Does not include name and address of Nursing Facility in the project
      market area that has permanently closed or is closing beds after 12/31/03. 0 points

      TGSB/EDSB Certification (maximum 30 points)

      Provides a qualifying Targeted Group Small Business/Economically Disadvantaged
      Small Business (TGSB/EDSB) Certificate.                        30 points
      Does not provide a qualifying TGSB/EDSB Certificate.                0 points

3.    Phase III – Selection of the Successful Responder(s)

     Revised: 04/14/2005                       11
            a.      Only the Proposals found to be responsive under Phases I and II will be
                    considered in Phase III.
            b.      The evaluation team will review the scoring in making its recommendations of the
                    Successful Responder(s).
            c.      The State may submit a list of detailed comments, questions, and concerns to one
                    or more Responders after the initial evaluation. The State may require said
                    response to be written, oral, or both. The State will only use written responses for
                    evaluation purposes. The total scores for those Responders selected to submit
                    additional information may be revised as a result of the new information.
            d.      The evaluation team will make its recommendation based on the above-described
                    evaluation process. The Successful Responder(s), if any, will be selected
                    approximately eight weeks after the Proposal submission due date. A proposed
                    procurement schedule is attached to this RFP. The State reserves the right to alter
                    the proposed procurement schedule if necessary.
            e.      The final award decision will be made by the Commissioner or authorized
                    designee. The Commissioner or authorized designee may accept or reject the
                    recommendation of the evaluation team.

      D.     CONTRACT NEGOTIATIONS AND UNSUCCESSFUL RESPONDER NOTICE

            Contract negotiations will begin upon selection of the Successful Responder(s). In the
            event contract negotiations are unsuccessful with the Responder(s) selected, the
            evaluation team may recommend another Responder(s). The final award decision will be
            made by the Commissioner or authorized designee. The Commissioner or authorized
            designee may accept or reject any subsequent recommendation of the evaluation team.

            After the State and chosen Responder(s) have successfully negotiated a contract, the State
            will notify the unsuccessful Responders in writing that their Proposals have not been
            accepted.

VI.   REQUIRED CONTRACT TERMS AND CONDITIONS

      A.   Cancellation. Upon execution of a contract with a Successful Responder, Minn. Stat.
           §16C.08 mandates that the State and the Commissioner of Administration have the right
           to terminate the contract for convenience at any time after the contract is executed.

      B.    Requirements. All Responders must be willing to comply with all state and federal legal
            requirements regarding the performance of the Contract. The requirements are set forth
            throughout this RFP and are contained in the Draft Contract.

      C.    Governing Law/Venue. This RFP and any subsequent contract must be governed by the
            laws of the State of Minnesota. Any and all legal proceedings arising from this RFP or
            any resulting contract in which the State is made a party must be brought in the State of
            Minnesota, District Court of Ramsey County. The venue of any federal action or
            proceeding arising here from in which the State is a party must be the United States
            District Court for the State of Minnesota.

      D.    Travel. Reimbursement for travel and subsistence expenses actually and necessarily
            incurred by the contractor as a result of the contract will be in no greater amount than
           Revised: 04/14/2005                       12
      provided in the current "Commissioner’s Plan” promulgated by the Commissioner of
      Employee Relations. Reimbursements will not be made for travel and subsistence
      expenses incurred outside Minnesota unless it has received the State’s prior written
      approval for out-of-state travel. Minnesota will be considered the home state for
      determining whether travel is out-of-state.

E.    Preparation Costs. The State is not liable for any cost incurred by Responders in the
      preparation and production of a Proposal. Any work preformed prior to the issuance of a
      fully executed contact will be done only to the extent the Responder voluntarily assumes
      risk of non-payment.

F.    Contingency Fees Prohibited. Pursuant to Minn. Stat. §10A.06, no person may act as or
      employ a lobbyist for compensation that is dependent upon the result or outcome of any
      legislation or administrative action.

G.    Insurance Requirements

      1. Contractor shall not commence work under the contract until they have obtained all
         the insurance described below and the State of Minnesota has approved such
         insurance. All policies and certificates shall provide that the policies shall remain in
         force and effect throughout the term of the Contract.

      2. Contractor is required to maintain and furnish satisfactory evidence of the following
         insurance policies:

              a. Workers’ Compensation Insurance: Contractor must provide Workers’
                 Compensation insurance for all its employees and, in case any work is
                 subcontracted, Contractor will require the subcontractor to provide Workers’
                 Compensation insurance in accordance with the statutory requirements of the
                 State of Minnesota, including Coverage B, Employer’s Liability. Insurance
                 minimum amounts are as follows:

                  $100,000 – Bodily Injury by Disease per employee
                  $500,000 – Bodily Injury by Disease aggregate
                  $100,000 – Bodily Injury by Accident

              b. Commercial General Liability: Contractor is required to maintain insurance
                 protecting it from claims for damages for bodily injury, including sickness or
                 disease, death, and for care and loss of services as well as from claims for
                 property damage, including loss of use which may arise from operations under
                 the Contract whether the operations are by the contractor or by a subcontractor
                 or by anyone directly or indirectly employed under the contract. Insurance
                 minimum amounts are as follows:

                  $1,000,000 – per occurrence
                  $2,000,000 – annual aggregate
                  $2,000,000 – annual aggregate – Products/Completed Operations

                  The following coverages shall be included:

                  Premises and Operations Bodily Injury and Property Damage
     Revised: 04/14/2005                       13
             Personal and Advertising Injury
             Blanket Contractual Liability
             Products and Completed Operations Liability
             State of Minnesota named as an Additional Insured

         c. Commercial Automobile Liability: Contractor is required to maintain
            insurance protecting the contractor from claims for damages for bodily injury,
            including sickness or disease, death, and for care and loss of services, as well
            as from claims for property damage including loss of use which may arise
            from operations under the Contract whether such operations were by the
            contractor or by a subcontractor or by anyone directly or indirectly employed
            under the contract. Insurance minimum amounts are as follows:

             $1,000,000 – per occurrence Combined Single limit for Bodily Injury and
             Property Damage

             In addition, the following coverages should be included:

             Owned, Hired, and Non-owned Automobile
             State of Minnesota named as an Additional Insured

         d. Professional/Technical, Errors and Omissions, and/or Miscellaneous
            Liability Insurance (if applicable)

             Contractor is required to carry the following minimum amounts:

             $1,000,000 – per claim or event
             $1,000,000 – annual aggregate

             Any deductible will be the sole responsibility of the Contractor and may not
             exceed $5,000 without the written approval of the State.

             The retroactive or prior acts date of such coverage shall not be after the
             effective date of this Contract.

             This policy will provide coverage for all claims the contractor may become
             legally obligated to pay resulting from any actual or alleged negligent act,
             error, or omission related to Contractor’s professional services required under
             the contract, and include an extended reporting period of a minimum of five
             (5) years following completion of the work.

 CONTRACTOR will be required to:

            Contractor’s policy(ies) shall be primary insurance to any other valid and
             collectible insurance available to the State of Minnesota with respect to any
             claim arising out of this contract;

            Contractor will provide the State of Minnesota with thirty (30) days advance
             notice of cancellation, nonrenewal, or reduction in limits of coverage or other
             material change;


Revised: 04/14/2005                       14
                         Contractor is responsible for payment of Contract related insurance premiums
                          and deductibles;

                         If Contractor is self-insured, a Certificate of Self-Insurance must be attached;

                         Include legal defense fees in addition to its liability policy limits, with the
                          exception of 2.d above; and

                         Obtain insurance policies from an insurance company having an “AM BEST”
                          rating of A- (minus); Financial Size Category (FSC) VII or better and must be
                          authorized to do business in the State of Minnesota.

              The State will reserve the right to immediately terminate the contract if the contractor is
              not in compliance with the insurance requirements and retains all rights to pursue any
              legal remedies against the contractor. All insurance policies must be open to inspection
              by the State, and copies of policies must be submitted to the State’s authorized
              representative upon written request.

              The successful responder is required to submit acceptable evidence of insurance coverage
              requirements prior to commencing work under the contract.

VII.   STATE'S RIGHTS RESERVED

       Notwithstanding anything to the contrary, the State reserves the right to:

       A.     Reject any and all Proposals received in response to this RFP;

       B.     Disqualify any Responder whose conduct or Proposal fails to conform to the
              requirements of this RFP;

       C.     Have unlimited rights to duplicate all materials submitted for purposes of RFP
              evaluation, and duplicate all public information in response to data requests regarding the
              Proposal;

       D.     Select for contract or for negotiations a Proposal other than that with the lowest cost or
              the highest evaluation score;

       E.     Consider a late modification of a Proposal if the Proposal itself was submitted on time
              and if the modifications were requested by the State and the modifications make the
              terms of the Proposal more favorable to the State, and accept such Proposal as modified.
              The State will allow all eligible Responders to submit late modifications, similar in
              scope, should the State choose to exercise this right with regard to any one Responder's
              Proposal;

       F.     At its sole discretion, reserve the right to waive any non-material deviations from the
              requirements and procedures of this RFP;

       G.     Negotiate as to any aspect of the Proposal with any Responder and negotiate with more
              than one Responder at the same time, including asking for Responders’ “Best and Final”
              offers on price or deliverables or both;


             Revised: 04/14/2005                        15
H.    Extend the contract, in increments determined by the State, not to exceed a total contract
      term of five years; and

I.    Cancel the Request for Proposal at any time and for any reason with no cost or penalty to
      the State.

                 REMAINDER OF PAGE INTENTIALLY LEFT BLANK




     Revised: 04/14/2005                      16

				
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