STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES DIVISION OF STATE GROUP INSURANCE INVITATION TO NEGOTIATE

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1 4050 Esplanade Way Tallahassee, Florida Tel: Fax: Rick Scott, Governor Chad Poppell, Secretary STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES DIVISION OF STATE GROUP INSURANCE INVITATION TO NEGOTIATE INSURED HEALTH MAINTENANCE ORGANIZATION BENEFITS and SELF-INSURED HEALTH PLAN SERVICES ITN NO.: DMS 15/ Replies DUE: October 23, 2015 Refer ALL Inquiries to: Maureen Livings, Procurement Officer Departmental Purchasing Department of Management Services 4050 Esplanade Way, Suite 335.2Y Tallahassee, FL

2 Table of Contents Section 1 Introduction Purpose Overview of the Program Questions Being Explored Specific Goals of the ITN Contact Person Anticipated Contract Term Schedule of Events and Deadlines Notice of Intent to Submit a Reply and Non-Disclosure Agreement Section 2 General Instructions to Vendors General Overview Contacting Department Personnel Contact Other than During the Negotiation Phase Violation of Contact Limitations Order of Precedence Vendor Questions Florida Substitute Form W-9 Process MFMP Registration Special Accommodation Receipt of Replies Reply Deadline Changes to Replies after Submission Prohibited Receipt Statement Cost of Preparation Electronic Posting of Department Decisions Firm Reply Use of Reply Content Page 2

3 2.13 Public Records and Vendor s Confidential Information Public Records Replies are Public Records Replies will be Subject to Public Inspection How to Claim Trade Secret or Other Exemptions Public Records Request Department Not Obligated to Defend Vendor s Claims General Instructions to Vendors PUR 1001 Form and General Contract Conditions PUR Section (5), Florida Statutes Subcontracting Protests Time Limits for Filing Protests Bond Must Accompany Protest Filing a Protest Department s Reserved Rights Waiver of Minor Irregularities Right to Inspect, Investigate and Rely on Information Rejection of All Replies Withdrawal of ITN Reserved Rights after Notice of Award No Contract until Execution Section 3 Responding to the ITN Overview Submittal of Replies Format of Reply Draft Contract Section 4 Evaluation and Negotiation Methodology Selection Criteria Evaluation and Negotiation Process Page 3

4 4.2.1 Phase One Evaluation General Overview Phase Two Negotiations General Overview Evaluation Phase Scoring of Technical Information Scoring of Financial Replies Negotiation Phase Determination of Vendors Advancing to Negotiations Goal of Negotiations Vendor Attendance at Negotiations Revised Replies and Best and Final Offers Other Department Rights during Negotiations Negotiation Meetings Not Open to Public Final Selection and Notice of Intent to Award Contract Award Selection Department s Negotiation Team Recommendation Secretary of the Department s Approval Posting Notice of Intent to Award Section 5 Minimum Qualifications Section 6 Minimum Service Requirements Section 7 Corporate Information Section 8 Vendor and Subcontractor Information Section 9 Technical Information Section 10 Service and Program Information Section 11 Recommended Solutions and Alternatives Section 12 Network Information Section 13 Financial Reply Section 14 Purchasing Forms Section 15 Attachments Page 4

5 Section 1 Introduction 1.1 Purpose The Florida Department of Management Services invites interested vendors to submit replies to this Invitation to Negotiate ( ITN ). The purpose of this ITN is to explore the various questions identified in this ITN and to determine, through the negotiation process, the preferred set of solutions to achieve the goals of the ITN. 1.2 Overview of the Program Pursuant to section , Florida Statutes, the Department s Division of State Group Insurance ( Division ) administers the State Group Insurance Program ( Program ). The Program is comprised of a package of insurance benefits, including health insurance options, flexible spending and health savings accounts, life insurance, dental insurance, and other supplemental insurance products for State of Florida employees and retirees, COBRA participants, and covered spouses and/or children. Each employee, retiree or COBRA participant that is the primary insured is an Enrollee. Covered spouses and/or children are Dependents. Each individual covered under the Program is a Member. Through the Program, the Department currently offers four (4) medical benefit plan designs option. Two (2) of these are Preferred Provider Organization ( PPO ) plans, while the other two (2) plans are either Health Maintenance Organizations ( HMO ) or HMO-style plans. The PPO options, available statewide, are currently self-funded, with medical benefits administered by a single third party administrator ( TPA ). The insured HMO and self-insured HMO-style options are currently provided by six (6) separate HMOs and TPAs, with a mix of fully insured and self-insured funding arrangements. A single pharmacy benefits manager, currently CVS/Caremark, administers the pharmacy benefits for all plans with the exception of Medicare Advantage HMO Enrollees, whose pharmacy benefits are administered by their respective HMOs. The PPO options are as follows: The Standard PPO Plan The Health Investor PPO Plan (high deductible with a health savings account ( HSA )) The HMO and HMO-style options are as follows: The Standard HMO Plan The Health Investor HMO Plan (high deductible with an HSA) The benefits to be provided by the successful vendor(s) are described in Attachment H: Covered Benefits and Services. Page 5

6 The Plan Year runs from January 1 to December 31 of each calendar year. The State provides two (2) primary enrollment opportunities outside of qualifying status change events: 1) when a person begins employment with the State, and 2) annually during an open enrollment period. Open enrollment changes are effective January 1 of the following year. The State s outsourced human resource administrator, People First, handles all enrollment activity and its system is the system of record for eligibility determinations. Presently, Enrollees are eligible to enroll in any HMO or HMO-style plan with a service area that includes their home or work address within the state of Florida. Currently a single HMO or TPA in each county is available to Enrollees within the State, except for six (6) counties (Flagler, Volusia, St. Lucie, Palm Beach, Broward and Miami-Dade) where two (2) are available to Enrollees. Health insurance premiums for active employees are funded primarily through employer contributions and include a fixed employee payroll deduction. The Department collects employer and employee contributions from which fully-insured premiums, self-insured claims costs, and fees are paid. Enrollee and employer contributions are established annually through the State s General Appropriations Act. Currently, Enrollees pay a premium based on coverage tier (i.e., single or family) and whether they enroll in a Standard Plan or Health Investor Plan. The employee and employer contributions are the same for all standard plan options and for all health investor plan options regardless of vendor or plan type (i.e., PPO or HMO). Non- Medicare eligible retirees pay the full premium; COBRA enrollees pay the full premium plus a two percent (2%) administrative fee. Contribution amounts and premiums for 2015 are provided on the following page. Page 6

7 Premium Rate Table Subscriber Category / Contribution Cycle Coverage Type PPO/HMO Standard PPO/HMO HIHP Employer Enrollee Total Employer Enrollee Total Single Single Active Employees Family Family 1, , , , Spouse Spouse 1, , , , COBRA Early Retirees Single Single Family Family , , , , Single Single Family Family , , , , Overage Dependents Single Medicare Monthly Premium Rates Plan Name Self-Insured PPO / HMO Capital Health Plan Florida Health Care Plan Plan Type Medicare I Medicare II Medicare III One Eligible One Under/Over Both Eligible Standard , HIHP Standard HIHP Standard HIHP To assist with this ITN process, the Department has engaged Foster & Foster as a technical and actuarial subject matter expert. Foster & Foster shall not receive override commissions or any other valuable consideration, in any form, from any issuer, insurance agent, insurance broker, or any involved party when such fee proceeds from or may be attributable to the award of the contract(s) with the Department. Fees earned by Foster & Foster relating to this procurement will be limited exclusively to those fees paid under the purchase order for these services between Foster & Foster and the Department. Page 7

8 1.3 Questions Being Explored Vendors are not to respond directly to these questions. The Department will use the information obtained throughout this ITN process to assist it in developing opinions and positions regarding the following questions: a. How can the Department most efficiently provide health care benefits to Program Members? b. Is a fully-insured program, a self-insured program, or a combination of both in the best interest of the State? c. Is a single vendor or multiple vendor platform in the best interest of the State? d. Should the Department establish a county-by-county program or are there other geographic distributions that may be in the best interest of the State, and which approach provides the best value? e. What levels of network discount guarantees and risk corridor guarantees or medical loss ratio reimbursements are available to provide the best value? f. Can the State achieve greater value by carving out or including pharmacy benefits with the insured HMO benefits provider? g. Can the State achieve greater value by including an insured Medicare Advantage Plan with prescription drug coverage with the insured HMO benefits provider? h. How can the Department ensure pricing remains competitive throughout the entire term of the contract? i. How can the Department best ensure flexibility for future program changes (e.g., benefit design, moving to a defined contribution structure, implementing employee or Member wellness initiatives)? j. Can greater value be attained by pricing certain programs separately on a per Member per month utilization basis (e.g., disease management)? k. What value propositions can vendors offer that are in the best interest of the State? l. The remaining questions and issues being explored are provided in sections Specific Goals of the ITN a. To establish a contract(s) promoting the cost efficient and prudent administration of the HMO and HMO-style benefit plans. Page 8

9 b. To establish a flexible contract(s) that provides the ability to effectuate future policy and program changes. Future changes may include, but are not limited to benefit design, changing contribution structures, and implementing employee or Member wellness initiatives. c. To determine the combination of services, service areas, service levels, and pricing terms preferred by the Department and that will provide the best overall value in executing preferred solutions. d. To ensure continued price competition throughout the initial term and any renewal years of the contract. e. To ensure the best value for the State. 1.5 Contact Person All contact with the Department regarding the ITN shall be directed to the procurement officer in writing by only and must contain the ITN number in the subject line of the . No facsimiles or telephone calls will be accepted for any reason. The exclusive point of contact for all communications regarding this ITN is: Maureen Livings, Procurement Officer Departmental Purchasing Department of Management Services 4050 Esplanade Way, Suite 335.2Y Tallahassee, FL dms.purchasing@dms.myflorida.com 1.6 Anticipated Contract Term The Department anticipates that the contract will be entered into by June 1, 2016, allowing the successful vendor(s) up to seven (7) months to provide transition services before providing services under the contract resulting from this ITN. The anticipated length of the initial term of the contract is three (3) years; however, negotiations may lead to a shorter or longer period in the resulting contract. The contract may be renewed for a period not to exceed three (3) years or for the term of the original contract, whichever period is longer. Such renewal shall be made at the Department s sole discretion and shall be contingent upon satisfactory performance evaluations as determined by the Department and shall be subject to the availability of funds. Page 9

10 1.7 Schedule of Events and Deadlines Anticipated Date Time (Eastern) Activity 9/22/15 Release of this ITN 9/25/15 3:00 p.m. Vendor deadline to submit the Confidentiality & Non- Disclosure Agreement (Attachment E) and the Notice of Intent to Submit a Reply (Attachment F) to the procurement officer 9/25/15 Census file (Attachment D) and claims utilization file (Attachment G) shipped via overnight delivery on CD-ROM to vendors who submitted the Notice of Intent to Submit a Reply (Attachment F) along with the Confidentiality and Non- Disclosure Agreement (Attachment E) in accordance with subsection 1.8 of this ITN 10/2/15 3:00 p.m. Vendor deadline to submit questions via to the procurement officer 10/12/15 Department posts answers to vendor questions on Vendor Bid System 10/23/15 3:00 p.m. Vendor replies due to Department: Department of Management Services 4050 Esplanade Way, Suite 335.2Y Tallahassee, FL /26/15 - Phase one evaluation 11/25/15 11/30/15 - Phase two negotiations 4/21/16 5/16/16 Department posts Notice of Intent to Award on Vendor Bid System 6/1/16 Contract implementation date 1/1/17 Contract effective date Dates are subject to change. All updates or revisions to any of the dates/times noted will be accomplished by an addendum to the solicitation or other notice posted on the Vendor Bid System. All times listed are local time in Tallahassee, Florida (Eastern Time, both E.S.T. and E.D.T. when applicable). Page 10

11 1.8 Notice of Intent to Submit a Reply and Non-Disclosure Agreement To be eligible to reply to this ITN, vendors must obtain the claims utilization file (Attachment G) and the census file (Attachment D) directly from the Department procurement officer. These files contain certain confidential/hipaa protected information and data. To obtain these files and data, vendors must submit a fully completed copy of the Confidentiality and Non-Disclosure Agreement (Attachment E) and the Notice of Intent to Submit a Reply (Attachment F) to the procurement officer, by at dms.purchasing@dms.myflorida.com, by the time and date indicated in subsection 1.7, Schedule of Events and Deadlines. Upon receipt of the forms, the Department will send the claims utilization file (Attachment G) and the census file (Attachment D) on CD-ROM by Federal Express overnight delivery. The census file (Attachment D) includes the following information for current HMO Enrollees: Year of birth Gender Home ZIP code Plan name (Standard or HDHP) Plan coverage tier (Active Single, Active Family, Non-Medicare Single, Non-Medicare Family, Medicare I, Medicare II or Medicare III) Number of dependents The claims utilization file (Attachment G) includes: System-generated claim number Patient home county Total charge amount DRG code Primary diagnosis code Diagnosis code 2 Diagnosis code 3 Diagnosis code 4 Diagnosis code 5 Procedure code Procedure code modifier Place of service Provider Federal Tax ID Page 11

12 Provider name Provider specialty Provider sub-code Medicare eligibility indicator Vendors who submitted a Notice of Intent to Submit a Reply (Attachment F) and the Confidentiality and Non-Disclosure Agreement and received the data included in Attachments D and G but failed to submit a reply to the ITN shall destroy the confidential information, including any copies, by the time replies are due and shall provide a certification and complete access list (page 3 of Attachment E: Confidentiality and Non-Disclosure Agreement) to the procurement officer that vendor has complied with this requirement on or before the due date of replies. Page 12

13 Section 2 General Instructions to Vendors 2.1 General Overview The ITN process is divided into two (2) phases. The evaluation phase involves the Department s initial evaluation of replies. During the evaluation phase, all responsive replies will be evaluated to establish a competitive range of replies reasonably susceptible of award. The Department will then select one (1) or more vendors within the competitive range with which to commence negotiations. The negotiation phase involves negotiations with the vendors. During the negotiation phase, the Department may request revised replies and/or best and final offers based on the negotiations. After negotiations, the Department intends to post a notice of intent to award a contract(s), identifying the responsive and responsible vendor(s) that provides the best value. Responsive vendors who are not selected for negotiations will not be formally eliminated from the ITN process until the posting of the notice of intent to award. Final contract terms will be established with the selected vendor(s) during the negotiation phase. 2.2 Contacting Department Personnel Contact Other than During the Negotiation Phase Prospective vendors or persons acting on their behalf may not contact, between the release of this ITN and the end of the seventy-two (72) hour period (Saturdays, Sundays and State holidays excluded) following the Department's posting of the notice of intent to award a contract, any Department personnel or consultants, or any employee or officer of the executive or legislative branch concerning any aspect of this solicitation, except in writing to the procurement officer in accordance with subsection 1.5 above or as otherwise provided in this solicitation. Any such contact by an affiliate, a person with a relevant business relationship with a prospective vendor, or an existing or prospective subcontractor to a prospective vendor is assumed to be on behalf of a prospective vendor unless otherwise shown. During the negotiation phase of this ITN: (i) any contact and communication between the members of the negotiation team for the prospective vendor(s) with whom the Department is negotiating and the negotiation team for the Department is permissible, but only "on the record" (as required by subsection (2), Florida Statutes) during the negotiations meetings; and (ii) communication between the lead negotiator for the prospective vendor with whom the Department is negotiating and the procurement officer outside of the negotiation meetings is permissible so long as it is by only. Page 13

14 2.2.2 Violation of Contact Limitations Violation of the provisions of subsection of this ITN may be grounds for rejecting a reply, if determined by the Department to be material. 2.3 Order of Precedence In the event of conflict in terms among the foregoing during this ITN, the following order of precedence shall apply. Addenda to the ITN, if any This ITN All attachments and exhibits to this ITN The Department s draft contract 2.4 Vendor Questions Vendors will submit all questions during the question and answer period in writing to the procurement officer by . The deadlines for submission of questions are reflected in subsection 1.7 of this ITN. Each vendor s submission of questions must be clearly labeled with the title of this ITN and the ITN number. Questions must be submitted in the following format to be considered: Vendor Question # Vendor Name ITN Section ITN Page # Question Responses to all written questions, and any resulting revisions to the ITN, will be posted through the Vendor Bid System. Questions will not constitute formal protest of the specifications or of the ITN. Page 14

15 2.5 Florida Substitute Form W-9 Process State of Florida vendors must register and complete an electronic Florida Substitute Form W-9. The Internal Revenue Service (IRS) receives and validates the information vendors provide on the Form W-9. For instructions on how to complete the Florida Substitute Form W-9, please visit: The awarded vendor(s) if any must have completed this process prior to contract execution. This form is not required to be submitted with the reply to the ITN. 2.6 MFMP Registration The awarded vendor(s) providing self-insured health plan services shall pay the required MFMP transaction fee(s) as specified by statute, unless an exemption has been requested and approved prior to the award of the contract pursuant to Rule 60A of the Florida Administrative Code. The awarded vendor(s), if any, must have completed this process prior to contract execution. For additional information, please visit: Special Accommodation Any person requiring a special accommodation because of a disability should call Departmental Purchasing at (850) at least five (5) business days prior to the scheduled event. Persons with hearing or speech impairments should call Departmental Purchasing by using the Florida Relay Service at (800) (TDD). 2.8 Receipt of Replies Reply Deadline Replies must be received by the Department no later than the date and time provided in subsection 1.7 of this ITN and addressed to the procurement officer at: Department of Management Services 4050 Esplanade Way, Suite 335.2Y Tallahassee, FL All methods of delivery or transmittal to the procurement officer are exclusively the responsibility of vendors and the risk of non-receipt or delayed receipt shall be borne exclusively by the vendors. Page 15

16 2.8.2 Changes to Replies after Submission Prohibited During the evaluation phase, no changes, modifications, or additions to the reply will be allowed after the replies have been opened. However, the Department reserves the right to seek clarifications or additional information Receipt Statement Replies not received at the specified address by the deadline will be rejected, remain unopened and retained for use in the event of a dispute. After the contract award, the Department will return the originals to the vendor. 2.9 Cost of Preparation Neither the Department nor the State is liable for any costs incurred by a vendor in responding to this ITN Electronic Posting of Department Decisions On the dates indicated on the Schedule of Events and Deadlines in subsection 1.7, as amended or updated, the Department shall electronically post a notice of the Department s decisions at the following Vendor Bid System website: IT IS THE SOLE RESPONSIBILITY OF VENDORS TO CHECK THE VENDOR BID SYSTEM FOR INFORMATION AND UPDATES Firm Reply The Department may make an award within two-hundred-forty (240) calendar days after the date the final replies are due. By submitting a reply, vendors acknowledge and agree that their replies shall remain firm for (and shall not be withdrawn) for at least two-hundred-forty (240) calendar days after the final replies have been submitted. If an award is not made within the two-hundred-forty (240) day period, the final reply shall remain firm until either the Department awards the contract or the Department receives from the vendor written notice that the reply is withdrawn. Vendors may request to withdraw replies within seventy-two (72) hours (excluding state holidays, Saturdays and Sundays) after the due date for replies provided in the Schedule of Events and Deadlines, subsection 1.7 of this ITN. Requests received in accordance with this provision may be granted by the Department upon proof of the impossibility to perform based upon an obvious error as determined solely by the Department. Page 16

17 2.12 Use of Reply Content All materials produced to the Department through this ITN become the exclusive property of the Department and may not be removed by vendors. Further, all replies become the property of the Department and will not be returned to the vendor. The Department will have the right to use any or all ideas or adaptations of the ideas presented in the reply. Selection or rejection of a reply of award will not affect this right Public Records and Vendor s Confidential Information Public Records All electronic and written communications pertaining to this ITN, whether sent from or received by the Department, are subject to Florida s public records law, chapter 119, Florida Statutes. Subsection below addresses the submission of trade secret and other information exempted from public inspection Replies are Public Records All materials submitted in reply to this ITN will be a public record subject to the provisions of chapter 119, Florida Statutes. Selection or rejection of a reply does not affect the public record status of the materials Replies will be Subject to Public Inspection Unless exempted by law, all public records are subject to public inspection and copying under Florida s public records law, chapter 119, Florida Statutes. A time-limited exemption from public inspection is provided for the contents of replies pursuant to subsection (1)(b), Florida Statutes. Once that exemption expires, all contents of replies become subject to public inspection unless another exemption applies. Any claim of trade secret exemption for any information contained in vendor s reply to this solicitation will be waived upon submission of the reply to the Department, unless the claimed trade secret information is submitted in accordance with subsection This waiver includes any information included in the vendor s reply outside of the separately bound document described below How to Claim Trade Secret or Other Exemptions If a vendor considers any portion of the documents, data, or records submitted in its reply to be trade secret or otherwise exempt from public inspection or disclosure pursuant to Florida s Public Records Law, the vendor must submit all such information as a separately bound, unredacted document clearly labeled Attachment to Invitation to Negotiate, Number DMS 15/ Exempt Material, together with a brief written description of the grounds for Page 17

18 claiming exemption from the public records law, including the specific statutory citation for such exemption. Vendor must also simultaneously provide the Department with a separate, electronic redacted copy of its reply. The file name of the electronic redacted copy shall contain the name of vendor, the ITN number, and redacted copy (e.g., Vendor Name_DMS ITN 15/16-005_redacted copy.pdf). The first page of the electronic redacted copy and each page on which information is redacted shall prominently display the phrase Redacted Copy. This submission must be made no later than the reply submittal deadline. Where such information is part of material already required to be submitted as a separately bound or enclosed portion of the reply, it shall be further segregated and separately bound or enclosed and clearly labeled as set forth above in addition to any other labeling required for the material Public Records Request If a vendor fails to mark any materials submitted to the Department as exempt and failed to submit a redacted copy as provided in this section, the vendor waives the exemption, and the Department will produce all of vendor s documents, data or records to any person requesting a copy under chapter 119, Florida Statutes. The vendor exclusively bears the burden of complying with subsection to ensure its exempt information is appropriately marked Department Not Obligated to Defend Vendor s Claims The Department is not obligated to agree with a vendor s claim of exemption and, by submitting a reply, the vendor agrees to defend its claim that each and every portion of the redactions is exempt from inspection and copying under Florida s Public Records Law. Further, by submitting a reply, the vendor agrees to protect, defend, indemnify and hold harmless the Department for any and all claims and litigation (including litigation initiated by the Department), including attorney s fees and costs, arising from or in any way relating to vendor s assertion that the redacted portions of its reply are trade secrets or otherwise exempt from public disclosure under chapter 119, Florida Statutes General Instructions to Vendors PUR 1001 Form and General Contract Conditions PUR 1000 The Florida Administrative Code requires that the Department include the standard PUR 1001 Form General Instructions to Vendors and the PUR 1000 General Contract Conditions with this solicitation. The PUR 1001 and the PUR 1000 forms can be found at: erences_resources/purchasing_forms. Page 18

19 The Department is permitted by the Florida Administrative Code, however, to override the provisions of both forms. Accordingly, the terms and conditions of PUR 1001 FORM do not apply to this solicitation and are instead modified and superseded by the instructions, specifications, and other terms contained throughout this ITN. The terms and conditions of PUR 1000 do not apply to this solicitation and are instead modified and superseded by the draft contract included as Attachment A to this ITN Section (5), Florida Statutes Vendor and any subcontractor understand and will comply with subsection (5), Florida Statutes, which places a legal duty on the vendor and any subcontractor to cooperate with the inspector general in any investigation, audit, inspection, review, or hearing Subcontracting The successful vendor(s) is fully responsible for all work performed under the resultant contract of this solicitation. If vendor intends to use any subcontractors to perform the work, such subcontractors shall be identified as required by ITN section 8. If a vendor should need to replace a subcontractor prior to the Department s notice of intent to award, the vendor shall provide to the procurement officer a request to substitute the subcontractor, explaining why the vendor seeks to substitute the subcontractor. The substitution will be subject to Department approval. The successful vendor(s) acknowledges that it will not be released of its contractual obligation to the Department because of any subcontract. The Department may treat vendor s use of a subcontractor not disclosed during the ITN process or approved by the Department as a breach of contract. Health care providers are not considered subcontractors. Rented networks are also not considered subcontractors and the successful vendor(s) using rented networks will not be excused from performance should the rented network become unavailable to the vendor at any time. Any processes, services, and deliverables that are subcontracted or provided by a subsidiary or third party (e.g., via a rental network), including but not limited to, the provider network, clinical management, customer service, disease management vendors, printing services, and so forth, shall be managed through vendor and be seamless and transparent to both the members and the Department. Page 19

20 2.17 Protests Section , Florida Statutes, applies to this solicitation, as modified by subsection (3)(d)4, Florida Statutes Time Limits for Filing Protests Any person whose substantial interests are adversely affected by the decision or intended decision made by the Department pursuant to this solicitation shall file with the Department a formal written protest petition in writing within seventy-two (72) hours after the posting of the Department s notice of decision or intended decision in accordance with subsection (3)(d)4, Florida Statutes Bond Must Accompany Protest When protesting a decision or intended decision (including a protest of the terms, conditions, and specifications of the solicitation), the protestor must post a bond equal to one percent (1%) of the Department s estimated contract amount. The estimated contract amount for any protest of this procurement is $310,000,000. The estimated contract amount is not subject to protest. The bond must be conditioned upon the payment of all costs and charges that are adjudged against the protestor in the administrative hearing in which action is brought and in any subsequent appellate court proceeding. In lieu of a bond, the Department will accept a cashier s check, official bank check, or money order. An original cashier s check, official bank check, or money order must be posted in the same fashion as a protest bond. FAILURE TO POST AN ORIGINAL BOND OR OTHER SECURITY REQUIRED BY LAW AT THE TIME OF FILING THE FORMAL WRITTEN PROTEST WILL RESULT IN A REJECTION OF THE PROTEST Filing a Protest A formal written protest is filed when actually received by the procurement officer listed in subsection 1.5 or by the Department s agency clerk. Filing of a formal written protest may be achieved by hand-delivery, courier, mail, facsimile, or . Actual delivery by the deadline shall remain the sole responsibility of the protestor, and the risk of non-receipt or delayed receipt shall be borne exclusively by the protestor. A protest bond must be posted together with the formal written protest. A protest bond is posted when the original bond is physically tendered to the procurement officer or agency clerk. Bonds (and cashier s checks, official bank checks, or money orders) cannot be posted by facsimile, , or other transmission that does not result in the original being physically Page 20

21 tendered to the Department. Actual posting of a bond by the deadline shall remain the sole responsibility of the protestor, and the risk of non-receipt or delayed receipt shall be borne exclusively by the protestor. FAILURE TO FILE A PROTEST WITHIN THE TIME PRESCRIBED IN SUBSECTION (3), FLORIDA STATUTES (as altered by subsection (3)(d)4, OR FAILURE TO POST THE BOND OR OTHER SECURITY REQUIRED BY LAW WITHIN THE TIME ALLOWED FOR FILING A BOND SHALL CONSTITUTE A WAIVER OF PROCEEDINGS UNDER CHAPTER 120, FLORIDA STATUTES Department s Reserved Rights Waiver of Minor Irregularities The Department reserves the right to waive minor irregularities when to do so would be in the best interest of the State of Florida. A minor irregularity is a variation from the terms and conditions of this ITN that does not affect the price of the reply or give the vendor a substantial advantage over other vendors and thereby restrict or stifle competition and does not adversely impact the interests of the Department. At its option, the Department may allow a vendor to correct minor irregularities but is under no obligation to do so. In doing so, the Department may request a vendor to provide clarifying information or additional materials to correct the irregularity. However, the Department will not request and a vendor may not provide the Department with additional materials that affect the price of the reply, or give the vendor an advantage or benefit not enjoyed by other vendors Right to Inspect, Investigate and Rely on Information The Department reserves the right to inspect vendor s facilities and operations, to investigate any vendor representations and to rely on information about a vendor in the Department s records or known to its personnel in making its best value determination Rejection of All Replies The Department reserves the right to reject all replies at any time, including after an award is made, when to do so would be in the best interest of the state of Florida, and by doing so the Department will have no liability to any vendor Withdrawal of ITN The Department reserves the right to withdraw the ITN at any time, including after an award is made, when to do so would be in the best interest of the state of Florida, and by doing so the Department will have no liability to any vendor. Page 21

22 Reserved Rights after Notice of Award The Department reserves the right, after posting notice thereof, to withdraw or amend its notice of intent to award and re-open negotiations with any vendor at any time prior to execution of a contract No Contract until Execution A notice of intent to award under this ITN shall not constitute or form any contract between the Department and a vendor. No contract shall be formed until such time as a vendor and the Department formally execute a contract with requisite written signatures. Page 22

23 Section 3 Responding to the ITN 3.1 Overview Replies should provide a straightforward, concise description of the vendor s ability to provide the solution sought by the solicitation. Excessive information distracts readers from focusing on essentials. Properly referenced replies may be in the form of informational materials and brochures, but must be specific to the issue raised or question asked. When responding to specific questions, vendors must reprint each question in its entirety in the reply. The vendor s reply may not apply any conditions or exceptions to any mandatory requirements of the solicitation. The reply text must be at least 11 pt Calibri, Arial or Times New Roman in legible font. 3.2 Submittal of Replies Each vendor is responsible for ensuring that its reply is delivered at the proper time and to the proper place. REPLIES MUST BE RECEIVED AT OR BEFORE THE TIME AND DATE reflected on the schedule included in subsection 1.7 ( Schedule of Events and Deadlines ) of this ITN. The Department will reject replies received after this deadline. Each submission must be in a sealed box(es) and addressed to the attention of the procurement officer and indicate the Departmental Purchasing address, the ITN number, and date and time the reply is submitted. Any submitted documents claimed to be exempt from Florida s Public Records Law must comply with the provisions of subsection ( How to Claim Protection for Exempt Materials ) at the time of the reply submission. The reply must be submitted in a properly marked, sealed box(es) containing the following: a. One (1) original unredacted and 10 (ten) separate unredacted, bound paper copies; b. Ten (10) electronic copies on ten (10) separate CD-ROMs or thumb drives ; and c. One (1) electronic redacted copy of entire reply on CD-ROM or thumb drive (if applicable, as described in subsection ( How to Claim Protection for Exempt Materials ) of this ITN). 3.3 Format of Reply THE VENDORS MUST SUBMIT REPLIES IN THE FOLLOWING FORMAT AND ORDER IN ACCORDANCE WITH THE INSTRUCTIONS PROVIDED IN EACH CORRESPONDING SECTION OF THIS ITN. EACH REPLY MUST BE TABBED AS FOLLOWS: Page 23

24 TAB 1: Transmittal Letter The purpose of this letter is to transmit the reply and acknowledge the receipt of any addenda. The transmittal letter should be brief and signed by an individual who is authorized to commit the vendor to the services and requirements as stated in this ITN. The transmittal letter must also include the name and contact information for the vendor s primary contact person for this solicitation. The transmittal letter must not exceed one (1) page. TAB 2: Title Page and Table of Contents The title page should bear the name and address of vendor and the name and number of this ITN. This should be followed by a table of contents for the entire reply. TAB 3: Exempt Information A listing of information that is declared proprietary, trade secret or confidential and claimed to be exempt from public disclosure is to be provided immediately following the table of contents. This listing must identify each section of the reply that has been marked as exempt and excluded from the redacted copy provided with the reply as described in subsection 2.13 ( Public Records and Vendor s Confidential Information ) of this ITN. TAB 4: Executive Summary Vendor must condense and highlight the contents of the reply to the ITN in a separate, section titled Executive Summary including a general description of how the vendor intends to offer the services sought by this ITN. TAB 5: Minimum Qualifications (ITN Section 5) Vendors must provide a response to each of the minimum qualifications identified in section 5 of this ITN. A response of No or failure to submit a response to any of the minimum qualifications in section 5 of this ITN will disqualify the vendor from further consideration. TAB 6: Minimum Service Requirements (ITN Section 6) Vendors must provide a response acknowledging the ability and agreement to provide the minimum service requirements as required in section 6 of this ITN. A response of No or failure to submit a response to section 6 of this ITN will disqualify the vendor from further consideration. Page 24

25 TAB 7: Corporate Information (ITN Section 7) Vendors must provide responses to the questions and requests for information in section 7 ( Corporate Information ) of this ITN. Failure to provide a response to any item in section 7 may disqualify the vendor from further consideration. TAB 8: Vendor and Subcontractor Information (ITN Section 8) Vendors must provide a response to each requested item in section 8 ( Vendor and Subcontractor Information ) of this ITN. Additional tables may be added by the vendor as needed for the response to any item in section 8. TAB 9: Technical Information (ITN Section 9) Vendors must respond to each question and request for information in section 9 of this ITN. Vendors must restate each item and provide a response to the item in at least 11 pt Calibri, Arial or Times New Roman, blue font. Vendors must respond to all parts of each question or request for information. Failure to submit a response to a question or request for information may disqualify the vendor from further consideration. See subsection ( Scoring of Technical Information ) of this ITN for scoring. Tab 9 must be limited to fifty (50) singled sided or twenty-five (25) double sided pages in font indicated above. TAB 10: Service and Program Information (ITN Section 10) Vendors must provide a response to each requested item in section 10 of this ITN. Failure to provide a response to any item in section 10 may disqualify the vendor from further consideration. TAB 11: Recommended Solutions and Alternatives (ITN Section 11) Vendors must provide a response to each requested item in section 11 of this ITN. TAB 12: Network Information (ITN Section 12) Vendors must complete and submit Attachment B: Network Information as instructed in section 12 of this ITN. Failure to provide a GeoAccess and disruption analysis using an intact workbook with complete information for any item in Attachment B may disqualify the vendor from further consideration. Page 25

26 TAB 13: Financial Reply (ITN Section 13) Vendors must provide a financial reply by completing and submitting the Microsoft Excel document labeled Attachment C: Financial Reply. Vendors must complete the financial reply according to the instructions in Attachment C. Vendors must submit the final electronic version (on CD-ROM or thumb drive) of the financial reply in original file format (Excel.xls) with the Excel workbook intact (see subsection for scoring information). Vendors may not add additional tabs to the workbook or break apart the tabs of the workbook and submit as separate attachments. Failure to provide a financial reply using an intact workbook with complete pricing information for any item in Attachment C will disqualify the vendor from further consideration. TAB 14: Purchasing Forms (ITN Section 14). Vendors must complete and submit the following forms listed below in the following order displayed: a. Form 1 Vendor Certification b. Form 2 Notice of Conflict of Interest c. Attachment E: Confidentiality and Non-Disclosure Agreement Page 3, Vendor s Employees Who Will Be Given Access to the Confidential Information Note: this form is required even if there are no updates from the initial submittal. 3.4 Draft Contract Attachment A is the Department s draft contract. Any attempts to red-line or modify the terms of the Department s draft contract will be disregarded and ignored by the Department during the evaluation phase. Therefore, vendors should not make alterations or edits to the Department s draft contract. (The Department may negotiate and consider red-line edits or modification during the negotiation phase.) The draft contract contains the following documents as attachments. These attachments do not need to be returned with the ITN reply. a. Affidavit of Best Pricing b. Affidavit of Warranty of Security c. Affidavit of No Offshoring Page 26

27 Section 4 Evaluation and Negotiation Methodology The Department intends to award a contract(s) to the responsible and responsive vendor(s) that presents the best value. The Department may award multiple contracts. 4.1 Selection Criteria The following award selection criteria shall apply for this ITN: Criteria Vendor s articulation of its approach and solution; and the ability of the approach and solution to meet the Department s needs, the requirements of this ITN, and ITN sections 6 through 13. The vendor s approach and solution and any value enhancements at no additional cost to the State. Vendor references, track record implementing similar solutions to the one specified in this ITN, and overall experience. Vendor s pricing, overall costs to the Department, and financial guarantees. 4.2 Evaluation and Negotiation Process Phase One Evaluation General Overview The Department will appoint an evaluation team for the initial evaluation and scoring of the replies for the evaluation phase (phase one). Each evaluator will be provided a copy of each vendor s reply. Foster & Foster will independently review Attachment B: Network Information and Attachment C: Financial Reply and will provide the Department with a summary of these replies. The Department will score replies consistent with subsection 4.3 below Phase Two Negotiations General Overview The Department will establish a negotiation team to conduct the negotiations, assess the final value proposition of each vendor, and make an award recommendation to the Department. The negotiation team will not be bound by phase one scoring and has full authority to reassess any of the phase one evaluation determinations and may consider any additional information that Page 27

28 comes to its attention during the negotiations phase. The negotiation team will not engage in any scoring. Vendors may be provided an opportunity to recommend enhanced value alternatives, offer alternative solutions and deliverables, provide additional information, and other options during the negotiation phase that would present the best value to the State. The Department reserves the right to negotiate different terms and related price adjustments if the Department determines that such changes would provide the best value to the State. The negotiation team may address proposed alternative terms or deliverables during negotiations but it is under no obligation to accept proposed alternative terms or deliverables. If the negotiation team determines that a proposed alternative is not acceptable and the vendor fails to offer another alternative that is acceptable to the negotiation team, the vendor may be removed from further consideration. 4.3 Evaluation Phase The Department s initial evaluation of replies will determine which vendors are considered to fall within the competitive range of vendors reasonably susceptible of award and eligible for inclusion in the negotiation phase (phase two). All replies that meet the pass/fail requirements in section 5: Minimum Qualifications and are determined to be otherwise responsive will be evaluated using the following process: The evaluation phase (phase one) begins with the scoring of technical replies based on the methodology described in subsection Technical Information will be allocated a maximum of 350 points. Financial Replies will be allocated a maximum of 650 points. The maximum points any vendor can achieve is 1,000 points Scoring of Technical Information The technical information sections count as thirty-five percent (35%) of the overall score and are comprised of the following ITN sections: section 9: Technical Information and section 12: Network Information. The scoring analysis will be conducted for each county for which a vendor submits a reply. Page 28

29 Scoring of Section 9 (Technical Information) Evaluators will score section 9: Technical Information, worth a total of eighty (80) points. Each vendor response to the eight (8) questions will be scored and may earn a maximum of five (5) points. After the responses have been scored on the five (5) point scale, the scores will be multiplied by two (2) for a maximum possible score of eighty (80) points. For example: Vendor A receives a total score of thirty-five (35) points based on the five (5) point scale. Vendor A will earn seventy (70) points for section 9. The five point scale that will evaluators will use is below. SCORING SCALE 5 = Superior. The response exhaustively addresses the question and demonstrates vendor has extraordinary experience in performing the required services related to the question. The response indicates vendor would provide exceptionally enhanced value to the State and/or to Members. The response demonstrates the ability of the vendor to exceed the State s requirement, provide outstanding quality of service levels, provide cost savings or cost avoidance to the State, and/or implement innovative ideas. 4 = Good. The response extensively addresses the question and demonstrates exceptional experience in performing the required services related to the question. The response indicates vendor would provide enhanced value to the State and/or to Members. 3 = Adequate. The response adequately addresses the question and demonstrates vendor has sufficient experience in performing the required services related to the question. 2 = Poor. The response minimally addresses the question or demonstrates vendor has nominal experience in performing the required services related to the question. 1 = Unsatisfactory. The response inadequately addresses the question or demonstrates vendor has very limited experience in performing the required services related to the question. 0 = Inadequate. The response is blank, does not address the question, or demonstrates vendor has no experience in performing the required services related to the question. Page 29