SOLICITATION OVERVIEW

Transcription

1 Professional Auditing Services DUE: 6/19/15 SOLICITATION OVERVIEW The City of Irving is soliciting proposals for: TITLE: Professional Auditing Services RFP Number: 162D-15F Commodity: 2320 Auditing Services 2340 CPA Services Due Date/Time: 3:00 p.m., Friday, June 19, 2015 Location: City of Irving, Purchasing Division 835 W. Irving Blvd. Irving, Texas Pre-Proposal Conference: Date: Monday, June 8, 2015 Time: 9:00 a.m. Location: Council Conference Room Irving City Hall 825 W. Irving Blvd. Irving, Texas This conference is recommended, but not mandatory Public Opening of Proposals: There will be a public opening of proposals in the Purchasing Division conference room immediately following the proposal due date/time. Only the names of proposers will be read aloud. Interested parties are invited to attend. Written Questions: Submit to: Darlene Humphries, Purchasing Supervisor, at dhumphries@cityofirving.org Questions may be submitted through 3:00 p.m. June 9, No verbal questions will be accepted Questions of a substantial nature will be addressed in an addendum and posted on the City s Purchasing Web page for all interested parties. 1

2 TABLE OF CONTENTS for RFP #162D-15F Solicitation Overview... 1 Table of Contents... 2 Specifications Attachment A-2, Standard Terms and Conditions Attachment B-6, General Instructions to Proposers Attachment B-7, Special Instructions to Proposers Attachment B-3, Checklist for Proposers Attachment B-5, Map Locating Purchasing Division Summary Response Page Attachment C-1, Conflict of Interest Instructions Attachment C-2, Conflict of Interest Statement Attachment C-3, Federal Debarment Certification Attachment C-6, Discretionary Contract Disclosure Form Attachment D-9, Insurance Requirements Attachment D-4, Insurance Affidavit Attachment D-6, Indemnification by Contractor Attachment E-1, Environmental Commitment Attachment E-2, Environmental Stewardship Attachment F-1, Good Faith Effort Program Overview Attachment F-2, Good Faith Effort Affidavit Attachment G-9, Bonding Requirements Attachment H-3, Professional Service Agreement Appendix A, City of Irving Grants Appendix B, Proposer Guarantees Appendix C, Proposer Warranties Appendix D, Schedule of Professional Fees & Expenses Appendix E, Single Audit Appendix F, TCEQ Report

3 CITY OF IRVING, TEXAS REQUEST FOR PROPOSALS #162D-15F PROFESSIONAL AUDITING SERVICES I. INTRODUCTION A. GENERAL INFORMATION The City of Irving, Texas (the City ) is requesting proposals from qualified firms of certified public accountants to audit its financial statements for the fiscal years ending September 30, These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in the U.S. Government Accountability Office s (GAO) Government Auditing Standards, the provisions of the federal Single Audit Act Amendments of 1996, U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, as well as the following additional requirements: examination for compliance with procedures established by Charter, City Ordinance or, where applicable, State and Federal Laws or regulations, including the Texas Code of Criminal Procedures, and the Governmental Accounting Standards Board. The City reserves the right to reject any or all proposals submitted. Proposals submitted will be evaluated by a five (5) member Evaluation Committee. During the evaluation process, the Evaluation Committee and the City reserve the right, where it may serve the City s best interest, to request additional information or clarification from proposers, or to allow corrections of errors or omissions. At the discretion of the City, firms submitting proposals may be requested to make oral presentations as part of the evaluation process. The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in the request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. It is anticipated the selection of a firm will be completed no later than August 6, Following the notification of the selected firm it is expected a contract will be executed between both parties within one week of formal award by the Irving City Council. B. TERM OF ENGAGEMENT A three-year contract with two one-year renewals under the same terms and conditions is contemplated, subject to the satisfactory negotiation of terms (including price acceptable to 3

4 both the City and the selected firm), concurrence of the City Council with award recommendation, satisfactory performance, and the annual availability of an appropriation. II. DESCRIPTION OF THE GOVERNMENT A. NAME AND TELEPHONE NUMBER OF CONTACT PERSON Regina H. Givens, Controller will be the auditor s principal contact and can be reached at (972) or rgivens@cityofirving.org. The auditor s principal contact with the City will be Regina H. Givens, Controller who will coordinate the assistance to be provided by the City to the auditor can be reached at (972) B. BACKGROUND INFORMATION The City of Irving is the twelfth largest city in the State of Texas with a population of more than 216,000 people and an area of 69.3 square miles. It enjoys a robust economy driven by D/FW Airport and the Las Colinas business community. It is headquarters to over thirty Fortune 500 companies including ExxonMobil, Kimberly-Clark and Fluor Corporation. It is crossed by 5 major highways and is currently served by the Trinity Railway Express East-West Commuter Rail Line connecting it with the cities of Dallas and Fort Worth, and the DART light rail line from downtown Dallas to the D/FW Airport. The City operates under the Council-Manager form of government as established by its charter. There is a Deputy and two Assistant City Managers as well as various department directors and division managers. The City s fiscal year begins on October 1 and ends on September 30. The City provides the following services to its citizens: public safety (police and fire), public works, parks and recreation, libraries, public health and solid waste disposal, water and sewer utilities and general administrative services. The accounting and financial reporting functions of the City are centralized. More detailed information on the government and its finances can be found in the Comprehensive Annual Financial Report (CAFR) and Annual Operating Budget which are both on the City s website. 4

5 C. FUND STRUCTURE The City used the following fund types and account groups in its financial reporting for the fiscal year ended September 30, 2014: Number of Number with Individual Legally Adopted Fund Type/Account Group Funds Annual Budgets General Fund 1 1 Special Revenue Funds Debt Service Funds 1 1 Capital Project Funds 14 0 Enterprise Funds 3 0 Internal Service Funds 3 0 Expendable Trust Funds 0 0 Non-expendable Trust Funds 0 0 Pension Trust Funds 2 0 Agency Funds 1 0 D. FEDERAL AND STATE FINANCIAL ASSISTANCE During the fiscal years to be audited, the City will receive financial assistance from several federal and state agencies as identified in Appendix A. E. PENSION PLANS The City participates in the following pension plans: Multiple-Employer Single-Employer Cost Defined Defined Plan Sharing Agent Benefit Contrib. Texas Municipal Retirement System IRC 457 Deferred Comp. Plan Firemen s Relief and Retirement Fund Supplemental Benefit Plan X X X X Actuarial services for the pension plans are provided as follows: Texas Municipal Retirement System by Gabriel, Roeder, Smith and Company, Firemen s Fund by John M. Crider, Jr., and Supplemental Benefit Plan by Gabriel, Roeder, Smith and Company. 5

6 F. COMPONENT UNITS The City has no discretely presented component units. G. JOINT VENTURES The City does not participate in joint ventures with other governments. H. MAGNITUDE OF FINANCE OPERATIONS The Financial Services Department is directed by Jeff Litchfield, Finance Director. Accounting Staff Controller Accounting Manager Senior Accountant Senior Compliance Auditor Accountants (2) Fixed Asset Analyst Accounting Supervisor Senior Accounting Clerks (3) Accounting Clerk II (4) Payroll Specialist Budget Staff Budget Administrator Budget Coordinator Senior Budget Analyst Treasury Treasury Manager Senior Management Analyst Administrative Assistant Accounting Clerk II Purchasing Purchasing Supervisor Purchasing Agents (2) Purchasing Assistant MWBE Program Administrator Administrative Assistant 6

7 I. COMPUTER SYSTEMS The City s financial, human resources, and budgeting software is Ellucian s Banner software. The backend C and Cobol processing runs on a Windows 2008 physical server with a failover Windows 2008 physical server standing by. The database tier runs on two redundant Windows 2008 virtual servers (One primary and one hot-standby) with Oracle 11g as the database. The front end is provided by Oracle Application Server using Oracle Forms, which runs on two redundant Windows 2008 virtual servers. For the app layer and database layer, the primary servers are housed at City Hall and the redundant servers are housed at the Criminal Justice Center for disaster recovery purposes. J. AVAILABILITY OF PRIOR AUDIT REPORTS AND WORKING PAPERS Interested proposers who wish to review prior years audit reports and management letters should contact Dan Barron at Grant Thornton LLP (214) The City will use its best efforts to make prior audit reports and supporting working papers available to proposers to aid their response to this request for proposals. III. NATURE OF SERVICES REQUIRED A. GENERAL The City is soliciting the services of qualified firms of certified public accountants to audit its financial statements for the fiscal years ending September 30, 2015,2016, 2017, 2018 and These audits are to be performed in accordance with the provisions contained in this request for proposals. SCOPE OF WORK TO BE PERFORMED The City desires the auditor to express an opinion on the fair presentation of its general purpose financial statements in conformity with generally accepted accounting principles. The City also desires the auditor to express an opinion on the fair presentation of its basic financial statements including Government-wide Financial Statements, Fund Financial Statements, Proprietary Fund Financial Statements and Fiduciary Fund Financial Statements in conformity with generally accepted accounting principles. The auditor is not required to audit the combining and individual non-major fund financial statements and supporting schedules. 7

8 However, the auditor is to provide an in-relation-to report on the combining and individual non-major fund financial statements and supporting schedules based on the auditing procedures applied during the audit of the general purpose financial statements. The auditor is not required to audit the statistical section of the report. The auditor shall also be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards. The auditor is not required to audit the schedule of federal financial assistance. However, the auditor is to provide an in-relation-to report on that schedule based on the auditing procedures applied during the audit of the financial statements. From time to time, the City may request the auditor to perform other audits and reviews not specifically provided for under this section. If such a request is made, the auditor shall submit, at the City s request, a separate proposal for completing the engagement, along with a proposed fee schedule. The City reserves the right to contract any additional audits or reviews with whomever it chooses. C. AUDITING STANDARDS TO BE FOLLOWED To meet the requirements of this request for proposals, the audit shall be performed in accordance with: Generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants, the standards for financial audits set forth in the U.S. Government Accountability Office s (GAO) Government Auditing Standards, the provisions of the federal Single Audit Act Amendments of 1996, the provisions of U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, as well as the following additional requirements: examination for compliance with procedures established by City Charter, City Ordinance or, where applicable, State and Federal Laws or regulations, including the Texas Code of Criminal Procedures and the Governmental Accounting Standards Board. D. REPORTS TO BE ISSUED Following the completion of the audit of the fiscal year s financial statements the auditor shall issue: 1. A report on the fair presentation of the financial statements in conformity with generally accepted accounting principles. 2. A report on the internal control structure based on the auditor s understanding of the control structure and assessment of control risk. 8

9 3. A report on compliance with applicable laws and regulations. 4. Under the Single Audit Act, the following shall also be issued: a. internal control related to the financial statements and compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards; and b. internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. 5. The reports on internal control and compliance will each include a statement that the report is intended for the information and use of the audit committee, management, specific legislative or regulatory bodies, federal awarding agencies, and if applicable, passthrough entities and is not intended to be and should not be used by anyone other than these specified parties. a. In the required reports on internal controls, the auditor shall communicate to the Audit & Finance Committee any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organizations ability to record, process, summarize, and report financial data consistent with the assertion of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report. Non-reportable conditions discovered by the auditors shall be reported in a separate letter to management, which shall be referred to in the reports on internal controls. b. The reports on compliance shall include all material instances of noncompliance. All non-material instances of noncompliance shall be reported in a separate management letter, which shall be referred to in the report on compliance. 6. A letter in connection with issuance of a report required by Texas Commission on Environmental Quality related to financial assurance requirements under Subtitle D. 7. An agreed upon procedure letter pertaining to Increased Revenues generated as a result of the Dallas Fort Worth Revenue Sharing Agreement (City of Irving, Dallas and Fort Worth). 9

10 Irregularities and illegal acts. Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the Finance Director and the Audit & Finance Committee. Reporting to the Audit & Finance Committee. The auditors shall inform the City s Audit & Finance Committee of each of the following: 1. The auditor s responsibility under generally accepted auditing standards 2. Disagreements with management 3. Major issues discussed with management prior to retention Reporting to the Finance Director. The auditors shall inform the Finance Director of each of the following: 1. Significant accounting policies 2. Management judgments and accounting estimates 3. Significant audit adjustments 4. Other information in documents containing audited financial statements 5. Management consultation with other accountants 6. Difficulties encountered in performing the audit E. SPECIAL CONSIDERATIONS 1. The City will send its comprehensive annual financial report to the Government Finance Officers Association of the United States and Canada for review in its Certificate of Achievement for Excellence in Financial Reporting program. It is anticipated that the auditor will be required to provide special assistance to the City to meet the requirements of that program. 2. The City currently anticipates it will prepare one or more official statements in connection with the sale of debt securities which will contain the general purpose financial statements and the auditor s report thereon. The auditor shall be required, if requested by the City, to issue a consent and citation of expertise as the auditor and any necessary comfort letters. 3. The Department of Housing and Urban Development is the City s cognizant agency in accordance with the provisions of the Single Audit Act and U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Government and Non-Profit Organizations. 4. The schedule of federal and state financial assistance and related auditor s report, as well as the reports on the internal control structure and compliance are not to be included in 10

11 the CAFR, but are to be issued separately. 15 copies of the grant report are to be typed and printed by the selected auditor and provided to the City. 5. The City requires the auditor to prepare and print 15 copies of the Single Audit and management letter regardless of whether said audits are required to be filed for 2015, 2016, 2017, 2018 and Auditor will make available at least two days of local government training for up to ten (10) people each year. 7. Auditor will be available through the five (5) years as accounting and financial reporting advisor to City officials, management and Financial Services staff to answer questions that may arise during the course of the City s operations without additional cost to the City. Should such issues require significant additional effort, City staff will discuss the need for special arrangements prior to commencing the requested services. 8. Auditor will be available to review data being maintained by the City for arbitrage rebate calculations and the City s calculation of related arbitrage rebate, if any. 9. Auditor will give the City written notice of any professional relationships entered into during the period of the agreement. F. WORKING PAPER RETENTION AND ACCESS TO WORKING PAPERS All working papers and reports shall be retained, at the auditor s expense, for a minimum of five (5) years, unless the firm is notified in writing by the City of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the following parties or their designees: City of Irving Federal Grant Agencies and Other Federal Agencies State of Texas Grant Agencies and Other State of Texas Agencies Auditors of entities of which the City is a sub-recipient of grant funds In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. 11

12 IV. TIME REQUIREMENTS A. PROPOSAL CALENDAR The following is a list of key dates up to and including the date proposals are due to be submitted: June 1, 2015 June 8, 2015 June 19, 2015 Request for proposals issued Pre-proposal conference at 9:00 a.m. Due date for proposals 3:00 p.m. Week of June 29 Interviews with proposers (if needed) Exact dates and times to be determined B. NOTIFICATION AND CONTRACT DATES No later than July 3, 2015 No later than August 6 Recommended firm notified Formal approval by City council C. SCHEDULE FOR THE AUDITS Following is a proposed schedule for the 2015 fiscal year audit. A similar schedule will be developed for audits of future fiscal years if the City exercises its option for additional audits. 1. Detailed Audit Plan By August 20, the auditor shall provide to the City both a detailed audit plan and a list of all schedules to be prepared by the City. 2. Interim Work The auditor shall complete all interim work by September Fieldwork The auditor shall complete all fieldwork by January Draft Reports The auditor shall have drafts of the audit reports and recommendations to management available for review by the Finance Director by January

13 D. ENTRANCE CONFERENCES, PROGRESS REPORTING AND EXIT CONFERENCES Following is a list of meetings to be schedule for the 2015 fiscal year audit. A similar time schedule will be developed for audits of future fiscal years if the City exercises its option of additional audits. 1. Entrance conference with the Audit and Finance Committee. The purpose of this meeting is for the auditors to meet with the Audit and Finance Committee to discuss audit plan and the interim work to be performed. 2. Entrance conference with the Finance Director and all appropriate Financial Services Department personnel The purpose of this meeting will be to discuss any audit issues and the interim work to be performed. This meeting will also be used to establish the overall liaison for the audit and to make arrangements for workspace and other needs of the auditor. 3. Progress conference with the Finance Director and appropriate Financial Services Department personnel and appropriate department directors The purpose of this meeting will be to summarize the results of the preliminary review and to identify the key internal controls or other matters to be tested and discuss the year-end audit work to be performed. 4. Entrance conference with the Finance Director to commence year-end audit work 5. Exit conference with the Finance Director and appropriate Financial Services Department personnel The purpose of this meeting will be to summarize the results of the fieldwork and to review significant findings. Draft of Management Letter. 6. Exit conference with the Finance Director and Audit & Finance Committee to present CAFR and Management Letter E. FINAL REPORT DUE DATES Date for submission of the management letter shall be no later than January 30. The final reports are due to Council on or before February

14 V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION A. FINANCIAL SERVICES DEPARTMENT ASSISTANCE The Financial Services Department staff and responsible management personnel will be available during the audit to assist the firm by providing information, documentation and explanations. The preparation of confirmations will be the responsibility of the City. B ELECTRONIC DATA PROCESSING (EDP) ASSISTANCE Basic data processing support and staff assistance will be available to the auditor. C STATEMENTS AND SCHEDULES TO BE PREPARED BY CITY STAFF The accounting staff will prepare necessary prepared by client (PBC s) working papers normally required for the annual audit. All working papers to be prepared by the City must be submitted, by written list, to the City on or before August 1, of each year together with adequate explanatory detail as to the purpose of the working papers as well as method of preparing the working papers. Sufficiency and adequacy of detail will be determined by the City. Most working papers and all lead schedules are prepared on EXCEL by the Financial Services Department. D. WORK AREA, TELEPHONE, PHOTOCOPYING, AND FAX MACHINE The City will provide the auditor with reasonable workspace, desks/tables and chairs. The auditor will also be provided with access to one telephone line, photocopying facilities and Fax machine. E. REPORT PREPARATION Audit reports are to be addressed to the Honorable Mayor, City Council and City Manager, City of Irving, Texas. Fifteen (15) copies of The Single Audit Reports shall be typed and printed by the auditor and provided to the City. Fifteen (15) copies of the Independent Auditor s Report on the Internal Control Structure of the City shall be typed and printed by the auditor and provided to the City. One (1) copy of all reports in electronic (PDF) format shall be submitted. 14

15 VI. PROPOSAL REQUIREMENTS A. GENERAL REQUIREMENTS 1. Pre-proposal Conference A conference for firms interested in submitting a proposal will be held on June 8, 2015 at 9:00 a.m. at 825 West Irving Boulevard in the First Floor City Council Conference Room. Both verbal and written questions will be accepted during the conference. Written questions in advance are encouraged and may be sent to: Darlene Humphries, Purchasing Supervisor 835 West Irving Boulevard Irving, Texas dhumphries@cityofiving.org Attendance at the conference is not mandatory, but is highly recommended. 2. Inquiries Inquiries concerning the request for proposals and the subject of the request for proposals must be made to: Darlene Humphries, Purchasing Supervisor 835 West Irving Boulevard Irving, Texas dhumphries@cityofiving.org CONTACT WITH PERSONNEL OF THE CITY OTHER THAN THE PURCHASING SUPERVISOR REGARDING THIS REQUEST FOR PROPOSALS MAY BE GROUNDS FOR ELIMINATION FROM THE SELECTION PROCESS. 15

16 3. Submission of Proposals The following material is required to be received in a sealed envelope by June 19, 2015 at 3:00 p.m. for a proposing firm to be considered: a. A master copy (so marked) of the Technical Proposal and Fifteen (15) copies plus one electronic copy in PDF format on CD Rom to include the following: i. Title Page Title page Technical Proposal for the City of Irving for Professional Auditing Services the firm s name; the name, address and telephone number of a contact person; and the date of the proposal. ii. Table of Contents Include a clear identification of the material by section and by page number. iii. Transmittal Letter A signed letter (limit to two pages) of transmittal briefly stating the proposer s understanding of the work to be done, the commitment to perform the work within the time period, a statement why the firm believes itself to be best qualified to perform the engagement and a statement that the proposal is a firm and irrevocable offer for 90 days. iv. Detailed Proposal The detailed proposal should follow the order set forth in Section VI. B. of this request for proposals. v. Executed copies of Proposer Guarantees and Proposer Warranties, attached to this request for proposals (Appendix B and Appendix C) 16

17 b. The proposer shall submit an original and fifteen (15) copies plus one electronic copy in PDF format on CD Rom of a dollar cost bid in a separate sealed envelope marked as follows: SEALED DOLLAR COST BID RFP # 162D-15F FOR THE CITY OF IRVING FOR PROFESSIONAL AUDITING SERVICES c. Proposers should send the completed proposal in a sealed envelope clearly marked with the proposing firm s name and RFP #162D-15F Professional Auditing Services to the following address: B. TECHNICAL PROPOSAL 1. General Requirements Darlene Humphries, Purchasing Supervisor City of Irving Purchasing Division 835 West Irving Boulevard Irving, Texas No later than 3:00 p.m. on June 19, 2015 LATE SUBMISSIONS WILL BE RETURNED UNOPENED The purpose of the technical proposal is to demonstrate the qualifications, competence and capacity of the firms seeking to undertake an independent audit of the City in conformity with the requirements of this request for proposals. As such, the substance of proposals will carry more weight than their form or manner of presentation. The technical proposal should demonstrate the qualifications of the firms and of the particular staff to be assigned to this engagement. It should also specify an audit approach that will meet the request for proposals requirements. THERE SHOULD BE NO DOLLAR UNITS OR TOTAL COSTS INCLUDED IN THE TECHNICAL PROPOSAL DOCUMENT. The technical proposal should address all the points outlined in the request for proposals. The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer s capabilities to satisfy the requirements of the request 17

18 for proposals. While additional data may be presented, the following subjects, items Nos. 2 through 9, must be addressed in the given order. 2. Independence The firm should provide an affirmative statement that it is independent of the City as defined by generally accepted auditing standards and the U.S. General Accounting Office s Government Auditing Standards (1994). The firm should also list and describe the firm s professional relationships involving the City for the past five (5) years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit. 3. License to Practice in Texas An affirmative statement should be included indicating that the firm and all assigned key professional staff are properly licensed to practice in Texas. 4. Firm Qualifications and Experience The proposal should state the size of the firm, the size of the firm s governmental audit staff, the location of the office from which the work on this engagement is to be performed and the number and nature of the professional staff to be employed in this engagement on a full-time basis and the number and nature of the staff to be so employed on a part-time basis. The firm is also required to submit a copy of the report on its most recent external quality or peer review, with a statement whether that quality control review included a review of specific government engagements. The firm shall also provide information on the results of any federal or state desk reviews or field reviews of its audits during the past three (3) years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations. 5. Partner, Supervisory and Staff Qualifications and Experience The firm should identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement and indicate whether each such person is licensed to practice as a certified public accountant in Texas. The firm also should provide information on the government auditing experience of each person, including information on relevant 18

19 continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit. The firm should provide as much information as possible regarding the number, qualifications, experience and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement. The firm also should indicate how the quality of staff over the term of the agreement will be assured. Audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience. 6. Prior Engagements with the City of Irving The firm should list separately all engagements within the last five years, ranked on the basis of total staff hours, for the City by type of engagement (i.e., audit, management advisory services, other). For each engagement, the firm should indicate the scope of the work, date, engagement partners, total hours, the location of the firm s office from which the engagement was performed, and the name and telephone number of the principal client contact. 7. Similar Engagements with Other Government Entities For the firm s office that will be assigned responsibility for the audit, list the most significant engagements (maximum of 5) performed in the last five years that are similar to the engagement described in this request for proposals. These engagements should be ranked on the basis of total staff hours. Indicate the scope of work, date, engagement partners, total hours, and the name, telephone number, and address of the principal client contact. 8. Specific Audit Approach The proposal should set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required in Section II of this request for proposals. Proposers will be required to provide the following information on their audit approach. Proposers should give special attention to c, d, e and g providing as much detail as necessary for the Evaluation Committee to evaluate the proposal a. Proposed segmentation of the engagement b. Level of staff and number of hours to be assigned to each proposed segment of the engagement 19

20 C. Sample sizes and the extent to which statistical sampling is to be used in the engagement d. Extent of use of EDP software in the engagement e. Type and extent of analytical procedures to be used in the engagement f. Approach to be taken in determining laws and regulations that will be subject to audit test work g. Statistical sampling technique to be used for audit samplings for purposes of test of compliance 9. Identification of Anticipated Potential Audit Problems The proposal should identify and describe any anticipated potential audit problems, the firm s approach to resolving these problems and any special assistance that will be requested from the City. C. SEALED DOLLAR COST BID 1. Total All-Inclusive Maximum Price The sealed dollar cost bid should contain all pricing information relative to performing the audit engagement as described in this request for proposals. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of pocket expenses stated separately. The City will not be responsible for expenses incurred in preparing and submitting the technical proposal or the sealed dollar cost bid. Such costs should not be included in the proposal. The sealed dollar cost bid should include the following information in the format shown as Appendix D: a. Name of Firm. b. Certification that the person signing the proposal is entitled to represent the firm, empowered to submit the bid and authorized to sign a contract with the City of Irving. 20

21 c. A total all-inclusive maximum price for each of the fiscal years ending September 30, 2015, 2016, 2017, 2018 and Identify the fee for out-of pocket expenses, if any, separately from the fee for audit services. d. A total all-inclusive price for review and letter regarding TCEQ Financial Assurance. e. A total all-inclusive price for a Single Audit. f. A total all-inclusive price for review of the Dallas-Fort Worth Revenue Sharing. 2. Partner, Specialist, Supervisory and Staff Level Rates and the Hours Anticipated for Each Staffing Level On Appendix D, please state hourly rates for each staffing level and anticipated estimate of hours. 3. Out-of-Pocket Expenses Included in the Total All-Inclusive Maximum Price and Reimbursement Rates All estimated out-of-pocket expenses to be reimbursed should be presented in the sealed dollar cost bid in the format provided in the attachment (Appendix D). All expense reimbursements should be in the total all-inclusive maximum price submitted by the firm. 4. Rates for Additional Professional Services Should it become necessary for the City to request the auditor to render any additional services to either supplement the services requested in this request for proposals or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, such additional work shall be performed only if set forth in an addendum to the contract between the City and the firm. Any such additional work agreed to between the City and the firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the sealed dollar cost bid. 5. Manner of Payment Progress payments will be made on the basis of hours of work completed during the course of the engagement and out-of-pocket expenses incurred in accordance with the firm s dollar cost bid proposal. Interim billings shall cover a period of not less than a calendar quarter. Ten percent (10%) will be withheld from each billing pending delivery of the firm s final reports. 21

22 6. Sample Contract The selected proposer, after negotiations with the City, will be asked to enter into an agreement, using the City s format. Attachment E to this request for proposals is a sample format for this contract. Terms are negotiable, but the basic requirements contained in the sample contract will be required. The proposer should return the sample contract with the proposal, indicating any changes. VII. EVALUATION PROCEDURES A. EVALUATION COMMITTEE Proposals submitted will be evaluated by a five (5) member evaluation committee. B. REVIEW OF PROPOSALS The Evaluation Committee will use a point formula during the review process to score proposals. Each member of the Audit & Finance Committee will first score each technical proposal by each of the criteria described in Section VII.C. below. Individual scores will be combined to arrive at a composite technical score for each firm. At this point, firms with an unacceptably low technical score will be eliminated from further consideration. After the composite technical score for each firm has been established, the sealed dollar cost bid will be opened and additional points will be added to the technical score based on the price bid. The maximum score for price will be assigned to the firm offering the lowest total allinclusive maximum price. Appropriate pro-rated scores will be assigned to other proposers. C. EVALUATION CRITERIA Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory criteria in its entirety will have their proposals evaluated and scored for both technical qualifications and price. The following represent the principal selection criteria, which will be considered during the evaluation process. 1. Mandatory Elements a. The audit firm is independent and licensed to practice in Texas. b. The audit firm s professional personnel have received adequate continuing professional education within the preceding two years. c. The firm has no conflict of interest with regard to any other work performed by the firm for the City. 22

23 d. The firm submits a copy of its most recent external quality control review report and the firm has a record of quality audit work. e. The firm adheres to the instructions in this request for proposals on preparing and submitting the proposal. 2. Technical Qualifications a. Expertise and Experience (maximum 40 points) (1) The firm s past experience and performance on comparable government engagements (10 points) (2) The quality of the firm s professional personnel to be assigned to the engagement (experience in municipal auditing) and the quality of the firm s management support personnel to be available for technical consultation (20 points) (3) The firm s past experience and performance auditing similar federal or state financial assistance programs (Single Audit) (2.5 points) (4) The firm s past experience with issuance of debt (2.5 points) (5) The firm s past experience with Government Finance Officers Association (GFOA) Certificate for Excellence in Financial Reporting Program (5 points) b. Audit Approach (maximum 35 points) (1) Adequacy of proposed staffing plan for various segments of the engagement (10 points) (2) Adequacy of sampling techniques (10 points) (3) Adequacy of analytical procedures (10 points) (4) Adequacy of audit plan for electronic data processing function (5 points) 3. Price (maximum 25 points) COST WILL NOT BE THE PRIMARY FACTOR IN THE SELECTION OF AN AUDIT FIRM. 23

24 D. ORAL PRESENTATIONS During the evaluation process, the Evaluation Committee may, at its discretion, request any one or all firms to make oral presentations. Such presentations will provide firms with an opportunity to answer any questions and requests for clarifications that the Evaluation Committee may have on a firm s proposal. Not all firms may be asked to make such oral presentations, and the Committee reserves the right to award without discussion with the respondents should they feel that oral presentations are not necessary E. FINAL SELECTION The City will select a firm based upon the recommendation of the Evaluation Committee and approval of the Irving City Council. It is anticipated that a firm will be no later than August 6, Following notification of the firm selected it is expected a contract will be executed between both parties within one week. F. RIGHT TO REJECT PROPOSALS Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. The City reserves the right without prejudice to reject any or all proposals. 24

25 STANDARD TERMS AND CONDITIONS Attachment A-2 1. Application These standard terms and conditions shall apply to all City of Irving (hereafter City ) solicitations and procurements, unless specifically excepted in the solicitation specifications or additional documents negotiated by the parties prior to formal award. 2. Requirements By submitting a proposal, the respondent agrees to provide the City with the agreed-upon services described in the solicitation in accordance with these standard terms and conditions, at the agreed upon price and in compliance with the stated specifications, any subsequent addendums issued prior to the date of the opening, and any negotiated terms subsequent to the acceptance of proposals. 3. Legal Compliance Proposer must comply with all Federal, State and Local laws, statutes, ordinances, regulations and standards in effect at the time of delivery of goods and services, and must maintain any and all required licenses and certificates required under the same laws, statutes, ordinances, regulations and standards for services and/or goods provided in response to this solicitation. 4. Estimated Quantities If the solicitation indicates estimated quantities, such quantities are estimates only and not guaranteed amounts. The actual amount ordered over the contract period may be more or less than the estimate. Quantities represent the City s best estimate, based on past history and anticipated purchases. 5. Modifications and Addendums The City shall have the right to modify any of the solicitation documents prior to submission deadline and will endeavor to notify potential bidders, but failure to notify shall impose no liability or obligation on the City. All modifications and addendums must be in written form prepared by the City department issuing the solicitation. Proposers are responsible for incorporating any and all modifications and addendums into their submissions. 25

26 6. Interpretation of Solicitation Documents The City is the final judge of the meaning of any word(s) sentences, paragraphs or other parts of the solicitation documents. Proposers are encouraged to seek clarification, before submitting a proposal, of any portion of the bid documents that appears to be ambiguous, unclear, inconsistent, or otherwise in error. Clarifications will be in writing. 7. Late Proposals Proposals must be received in the Purchasing Office by the time specified in the solicitation. The City will not accept late submissions and is not responsible for the lateness or nondelivery of proposals by the Postal Service or any private delivery firm. The time/date stamp in the Purchasing Office shall be the official time of receipt. 8. Minor Irregularities The City reserves the right to waive any minor irregularities that do not materially affect the scope or pricing of submitted proposals 9. Responsiveness of Proposals The City wants to receive competitive proposals, but will declare non-responsive submissions that fail to meet significant requirements outlined in the solicitation documents. 10. Withdrawal of Proposals Proposers may withdraw any submitted proposals prior to the submission deadline. Proposers may not withdraw once the proposals have been publicly opened, without the approval of the City s purchasing manager. Proposers who no longer wish to negotiate with City will be allowed to withdraw proposals. However, once a proposal has been withdrawn, it can no longer be considered. 11. Disqualification of Proposer The City may disqualify proposers, and their proposals not be considered, for any of the following reasons: Collusion among proposers; Proposer s default on an existing or previous contract with the City, including failure to deliver goods and/or services of the quality and price bid or agreed upon; Proposer s lack of financial stability; any factor concerning the proposer s inability to provide the quantity, quality, and timeliness of services specified in the solicitation; proposer involved in a current or pending lawsuit with City; proposer s attempt to influence the outcome of the solicitation through unauthorized contact with City officials outside of those listed in the solicitation documents; and proposer s attempt to offer gifts, gratuities, or bribes to any City employee or elected official in connection with a solicitation. 12. Cost of Submission The cost of submitting proposals shall be borne by the proposers, and the City will not be liable for any costs incurred by a bidder responding to this solicitation. 26

27 13. Failure to Deliver Services If a proposer is unable to deliver the quantity or quality of specified services, or is unable to deliver within a time period agreed upon prior to award, the City shall be authorized to purchase from any other available source, consistent with State of Texas procurement statutes. 14. Taxpayer Identification Proposers must provide the City a current W-9 Request for Taxpayer Identification and Certification before services can be procured from the proposer. 15. Taxes The City is exempt from all federal excise taxes and all state and local sales and use taxes. If such taxes are listed on a proposer s invoice, they will not be paid. Additionally, proposers cannot use the City s tax exemption status to purchase goods or services related to this solicitation. 16. Payment Payment will be made as agreed upon in the deliverables section of the final proposal. Proposer is entitled to interest, at a rate stipulated by state law, if payment is not made within thirty days. 17. Outstanding Liabilities Proposers shall not have outstanding, unpaid liabilities owed to the City. Liabilities may include, but are not limited to, property taxes, hotel occupancy taxes, license or permit fees, and water bills. Proposals will be considered non-responsible and not given further consideration if submitted by a proposer with such outstanding liabilities. 18. Offset The City may, at its option, offset any amounts due and payable under a contract award under this solicitation against any debt lawfully due the City from a vendor, whether or not the amount due arises pursuant to the terms of the contract and whether or not the debt has been reduced to judgment by a court. 19. Independent Contractors It is expressly agreed and understood by both parties that the City is contracting with the successful proposer as an independent contractor. The City shall not be liable for any claims which may be asserted by any third party occurring in connection with services performed by the successful bidder, and the successful bidder has no authority to bind the City. 20. Governing Law All proposals submitted in response to this solicitation and any resulting contract shall be governed by, and construed in accordance with, the charter and ordinances of the City, and the laws and court decisions of the State of Texas. 27

28 21. Controlling Document In the case of a discrepancy between this solicitation and the formal contract, the formal contract will prevail and control. 22. Assignment Proposer shall not assign, transfer, or pledge a contract awarded under this solicitation, in whole or in part, with the prior written consent of the City s purchasing manager. Assignment of this contract, if approved by the City, shall not relieve the proposer s obligations under the contract. Approval by the City of one assignment shall not constitute approval of any future assignment of the contract. 23. Termination If an awarded proposer fails in any manner to fully perform each and all of the terms, conditions and covenants of a contract awarded by this solicitation, he shall be in default and notice of default shall be given to the bidder by the City s purchasing manager. In the event that Vendor continues in default for a period of thirty (30) days after receipt of the above-mentioned notice of default, City may terminate or cancel the contract. The City may also cancel a contract for convenience and without cause with thirty days notice. In any cancellation of contract, the City will pay the bidder for any and all services provided and accepted up to and including the date of termination. 24. Indemnification Proposer shall defend, indemnify, and hold harmless the City, its officers, agents, employees, appointees and volunteers against any and all claims, lawsuits, judgments, costs and expenses for personal injury (including death), property damage or other harm for which recovery of damages is sought, suffered by any person or persons, that may arise out of or be occasioned by bidder s breach of any of the terms or provisions of any contract awarded as a result of this solicitation, or by any negligent or strictly liable act or omission of the bidder, its officers, agents, employees, or subcontractors, in the performance of an awarded contract; except that the indemnity provided for in this paragraph shall not apply to any liability resulting from the sole negligence or fault of the City, its officers, agents or employees, and in the event of joint and concurrent negligence or fault of the bidder and City, responsibility and indemnity, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without waiving any governmental immunity available to the City under Texas law and without waiving any defenses of the parties under Texas law. The provisions of this paragraph are solely for the benefit of the parties hereto and are not intended to create or grant any rights, contractual or otherwise, to any other person or entity. 25. Venue The obligations of the parties under a contract awarded through this solicitation are performed in Dallas County, Texas, and if legal action is necessary to enforce same, exclusive venue shall be within Dallas County, Texas. 28

29 26. Funding State of Texas statutes prohibit the obligation and expenditure of public funds beyond the fiscal year for which a budget has been approved. Orders or other obligations that may arise beyond the end of the current fiscal year shall be subject to approval of budget funds. 27. Solicitation Results The City normally posts solicitation results on-line by the end of the next business day after submissions are received. The City s website is Results are on the Purchasing Solicitation page, in the same place as the original solicitation documents. In the case of RFP s, only the names of the proposers are listed. Results are for informational purposes only, and is not a notice of award. 28. Open Records Proposals do not become public record until an award is made. Trade secrets and other material considered confidential by the bidder should be clearly marked as such. If a request is made under the Texas Open Records Act to inspect information designated as trade secret or confidential in a bid, the City will forward the appropriate documents to the Attorney General of Texas who will contact the bidder to request sufficient written reasons and information as to why the information should be protected from disclosure. Upon review of the proposer s response, the Attorney General will make a determination as to the confidentiality of the requested material(s), or lack thereof, and the City will respond accordingly. 29

30 GENERAL INSTRUCTIONS TO PROPOSERS Attachment B-6 1. Securing Request for Proposals Request for Proposals may be downloaded at no cost from the Purchasing page of the City s website, The City does not charge for solicitation documents. If thirdparties offer specifications or solicitation information for a fee, they do not represent the City. The City may charge for plans and drawings for construction solicitations. 2. Submission of Sealed Proposals/Late Proposals Proposals are to be submitted in a sealed envelope or package and labeled with the proposer s name and the solicitation name & number. All proposals must be submitted to the City Purchasing Division no later than the date and time indicated in the solicitation. All times listed are local times. It is the proposer s responsibility to ensure that proposals are delivered/received by the specified time. Late proposals will not be accepted and will be returned unopened. If pricing is submitted, it must be in US dollars and cents. 3. Legal Name of Proposer In completing the Summary Response Page, the proposer must list the legal name of the proposer s company. This is the name that will be on all contracts, awards, and purchase orders. The Summary Response Page also requires a statement as to the legal status of the proposer (corporation, partnership, sole proprietorship, etc.). The Summary Response Page should be the first document in the proposer s response. 4. Signature The signature on the Summary Response Page must be in ink and from an individual with the authority to commit the company to the delivery of the goods or services at the prices and terms stated. 5. Altered Proposals Any alterations, erasures or strikethroughs made by the proposer prior to submission of the proposals must be initialed by the proposer to guarantee authenticity. 6. Payment Terms, Discount & Type of Payment TBD 7. References When references are requested, the Summary Response Page will indicate how many references and will state what other conditions may apply to the references. Proposer will attach a separate page with the requested references. 30

31 8. Conflict of Interest Proposers should review the instructions on conflict of interest (Attachment C-1). Proposers are to complete and submit the Conflict of Interest form (Attachment C-2), when a conflict of interest exists. 9. Environmental Stewardship Proposers are encouraged to review the City s commitment to the environment (Attachment E-1). Proposers are to complete and submit the Environmental Stewardship form (Attachment E-2). 10. Good Faith Effort Proposers are encouraged to review information on the City s Good Faith Effort program (Attachment G-1). Proposers are to complete and submit the Good Faith Effort Affidavit (Attachment G-2). Recommended proposer(s) will be required to complete the additional GFE forms as part of the award process. 11. Addendums It is the proposer s responsibility to alter his proposal response based on information updated in one or more addendums to this solicitation. Addendums will be posted on the Purchasing solicitation page of the City s website at least four days before the proposal due date. Efforts will be made to ensure that proposers receive notice of addendums, but the ultimate responsibility rests with the proposer. 12. Checklist A Proposer s Checklist (Attachment B-4) is included with the solicitation package. checklist is an aid to the proposer in knowing which documents to submit. The 13. Hot Line Vendors may call to anonymously report instances of fraud, waste or abuse. Please provide as many details as possible. 31

32 SPECIAL INSTRUCTIONS TO PROPOSERS Attachment B-7 1. Proposal Process/Contact Information The City is aware of the time and effort proposers spend in preparing and submitting proposals. We will work with you to make the process as easy as possible. If you have questions or concerns about the proposal process, please contact: Darlene Humphries, Purchasing Supervisor Method of Award Award will be made in its entirety to the responsive, responsible respondent(s) providing the best overall value to the City, as determined by the City s evaluation team and based on the evaluation criteria specified in this solicitation. Awards totaling $50,000 or more will be made by the Irving City Council. 3. Public Opening of Proposals A public opening of proposals will be held at 3:00 p.m. on June 19, 2015 in the Purchasing Conference Room, 835 W. Irving Blvd., Irving, TX The only information required to be made public in this opening is a list of who responded. Following negotiations with one or more proposers and the subsequent award, proposals become open to public review, within the guidelines of the State Attorney General. 4. Presentations & Interviews The City may choice to interview and/or receive oral presentations from selected finalists. However, award may be made without discussion with the respondents, so proposers are cautioned that proposals should be submitted initially on the most favorable terms. 5. Organization of Proposal Responses The response should be organized in the same reference sequence as the specifications. Proposals may be submitted in loose-leaf binders, but not spiral-bound or perfect-bound. 6. Required Contracts This solicitation requires a specialized contract to be negotiated and signed prior to award. A sample contract, Attachment H-3, has been provided as part of this solicitation. 32

33 7. Insurance Requirements This solicitation has insurance requirements. They are listed as Attachment D-1, D-4, and D- 6. Please review the requirements with your insurance agent and submit insurance affidavit (Attachment D-4) with your proposal. 8. Background Check The City reserves the right to run background checks on employees of the proposers and will determine if background is acceptable for award of the contract. 33

34 CITY OF IRVING RFP # 162D-15F CHECKLIST FOR PROPOSERS Attachment B-4 PROPOSERS CHECKLIST: (Documents to be submitted in response to this RFP) PROPOSAL (including all requested information) PROPOSAL COVER PAGE: Completed Summary Response Page DUE DATE (Proposal must be received & stamped in Purchasing no later than 3:00 pm on June 19, 2015) Proposals failing to comply with the above will be deemed non-responsive. These items are also to be turned in with your proposal. FIFTEEN COMPLETE PRINTED COPIES AND ONE CD or FLASH DRIVE COPY OF PROPOSAL (in addition to the original) CONFLICT OF INTEREST STATEMENT (If applicable) (Attachment C-2) FEDERAL DEBARMENT CERTIFICATION (If applicable) (Attachment C-3) DISCRETIONARY CONTRACT DISCLOSURE FORM (Attachment C-6) INSURANCE AFFIDAVIT (Attachment D-4) INDEMNIFICATION BY CONTRACTOR (Attachment D-6) ENVIRONMENTAL STEWARDSHIP (Attachment E-2) GOOD FAITH EFFORT AFFIDAVIT (Attachment F-2) IRS FORM W-9 34

35 Location of City of Irving Purchasing Division Attachment B-5 (rev. 2/19/14) 35