STATE OF FLORIDA DEPARTMENT OF CHILDREN AND FAMILIES ECONOMIC SELF-SUFFICIENCY PROGRAM OFFICE INVITATION TO NEGOTIATE

STATE OF FLORIDA DEPARTMENT OF CHILDREN AND FAMILIES ECONOMIC SELF-SUFFICIENCY PROGRAM OFFICE INVITATION TO NEGOTIATE ELECTRONIC BENEFITS TRANSFER/ELECTRONIC FUNDS TRANSFER (EBT/EFT) ITN# - 02F12GC1 COMMODITY CODE 973-120

Contents SECTION 1. INTRODUCTION... 1 1.1 INTRODUCTION TO THE PROCUREMENT... 1 1.2 STATEMENT OF PURPOSE... 1 1.3 CURRENT PROGRAMS... 1 1.4 TERMS OF THE AGREEMENT... 2 1.5 CONTACT PERSON AND PROCUREMENT MANAGER... 2 1.6 DEFINITIONS... 2 1.7 SUPPORTING DOCUMENTATION... 3 SECTION 2. ITN PROCESS... 4 2.1 GENERAL OVERVIEW OF THE PROCESS... 4 2.2 OFFICIAL NOTICES AND PUBLIC RECORDS... 4 2.2.1 Official Notices... 4 2.2.2 Public Records... 4 2.3 PROTESTS AND DISPUTES... 4 2.3.1 Time Limits for Filing Protests... 4 2.3.2 Protest of Terms, Conditions and Specifications... 5 2.3.3 Bond Must Accompany Protest... 5 2.3.4 Filing a Protest... 5 2.4 LIMITATIONS ON CONTACTING DEPARTMENT PERSONNEL... 5 2.4.1 Contact Other than During the Negotiation Phase... 5 2.4.2 Contact During the Negotiation Phase... 6 2.4.3 Violation of Contact Limitations... 6 2.5 SCHEDULE OF EVENTS AND DEADLINES... 7 2.6 SOLICITATION CONFERENCE... 8 2.6.1 Small, Minority, Woman -Owned and Service-Disabled Veteran-Owned Businesses Participation... 9 2.6.2 Official Department Responses... 9 2.7 WRITTEN INQUIRIES... 9 2.8 NOTICE OF INTENT TO SUBMIT A REPLY... 9 2.9 RECEIPT OF REPLIES... 9 2.9.1 Reply Deadline... 9 2.9.2 Binding Replies... 10 2.9.3 Changes to Replies After Submission Prohibited... 10 2.9.4 Receipt Statement... 10 2.10 APPLICATION OF MANDATORY REQUIREMENTS... 10 2.11 REQUEST TO WITHDRAW REPLY... 10 2.12 COST OF PREPARATION OF REPLY... 10 2.13 GENERAL INSTRUCTIONS TO RESPONDENTS FORM PUR 1001 (10/06)... 11 2.14 DEPARTMENT S RESERVED RIGHTS... 11 2.14.1 Waiver of Minor Irregularities... 11 2.14.2 Right to Inspect, Investigate and Rely on Information... 11 2.14.3 Rejection of All Replies... 11 2.14.4 Withdrawal of ITN... 11 2.14.5 Reserved Rights After Notice of Award... 12 2.14.6 Other Reserved Rights.... 12 SECTION 3. MINIMUM SPECIFICATIONS...13 3.1 VENDOR QUALIFICATIONS... 13 i

3.1.1 Mandatory Requirements... 13 3.1.2 Vendor Disqualification Under PUR 1001... 13 3.1.3 Vendor Disqualification for Previous Failure to Perform... 13 3.2 MINIMUM PROGRAMMATIC SPECIFICATIONS... 13 3.3 VENDOR REGISTRATION IN MYFLORIDAMARKETPLACE... 13 3.4 COMPOSITION OF THE CONTRACT... 14 3.4.1 Standard Contract... 14 3.4.2 Appendix I (Attachment I )... 14 3.4.3 PUR Form 1000... 14 3.4.4 Other Attachments or Exhibits... 14 3.5 ORDER OF PRECEDENCE... 14 3.5.1 Appendix I, Attachment I... 14 3.5.2 All attachments and exhibits to Attachment... 14 3.5.3 Appendix I, The Department s Standard Contract... 14 3.5.4 PUR Form 1000... 14 3.5.5 The Vendor s reply (including updates from Negotiations)... 14 SECTION 4. INSTRUCTIONS FOR RESPONDING TO THE ITN...15 4.1 HOW TO SUBMIT A REPLY... 15 4.1.1 Mandatory Reply Deadline... 15 4.1.2 Electronic Transmittal of Replies Not Acceptable... 15 4.1.3 Reply Amendments... 15 4.1.4 Number of Copies Required... 15 4.1.5 Replies to be in Sealed Packages... 15 4.2 CONTENT OF PROGRAMMATIC REPLY... 16 4.2.1 Title Page... 16 4.2.2 TAB 1: Required Vendor s Statements and Certifications Mandatory Requirements... 16 4.2.3 TAB 2: Vendor s Cross Reference Table... 18 4.2.4 TAB 3: Table of Contents... 18 4.2.5 TAB 4: Executive Overview... 18 4.2.6 TAB 5: Company Profile and Experience... 19 4.2.7 TAB 6: Description of Project Staffing... 23 4.2.8 TAB 7: Description of Respondent s Technical Capability and Approach... 25 4.2.9 TAB 8: WIC Services... 25 4.2.10 TAB 9: Innovations... 27 4.2.11 TAB 10: Description of Project Management... 30 4.3 CONTENT OF COST REPLY... 32 4.3.1 Title Page... 32 4.3.2 Cost Reply... 32 4.3.3 Core Services Cost Per Case Month (CPCM)... 33 4.3.4 Professional Services Fees... 34 4.3.5 Cardholder Paid Transaction Fees... 34 4.3.6 Department Subsidized Cash-only Transactions... 35 4.3.7 EBT Only Point of Sale Equipment... 35 4.3.8 Optional Services... 36 4.3.9 Innovations Voluntary Pricing... 38 4.4 REPLY GUIDELINES... 39 4.4.1 Replies to be Thorough... 39 4.4.2 Reply Clarity Essential... 39 4.4.3 Replies to be Concise... 39 4.4.4 Hard-copy Reply Format... 40 4.4.5 Electronic Copy Format... 40 4.4.6 Public Records and Trade Secrets... 40 ii

SECTION 5. THE SELECTION METHODOLOGY...42 5.1 SELECTION CRITERIA... 42 5.2 EVALUATION PHASE METHODOLOGY... 42 5.2.1 Programmatic Scoring by Evaluators... 42 5.2.2 Cost Scoring... 43 5.2.3 Total Score, Recommended Ranking and Competitive Range of Replies... 44 5.2.4 Recommendation of the Procurement Manager... 45 5.2.5 Determination of Shortlist... 45 5.2.6 Posting of Qualified Vendors for Negotiations ( Short List )... 45 5.3 NEGOTIATION PHASE PROCESS FOR FINAL SELECTION... 45 5.3.1 Goal of Negotiations... 45 5.3.2 Department Retains Discretion... 46 5.3.3 Other Department Rights During Negotiations... 46 5.4 FINAL SELECTION AND NOTICE OF INTENT TO AWARD CONTRACT... 47 5.4.1 Award Selection... 47 5.4.2 Department s Right to Rely on Replies and Evaluations... 47 5.4.3 Department s Negotiation Team Recommendation... 47 5.4.4 Secretary s Approval... 47 5.4.5 Department s Reserved Rights... 48 5.4.6 Posting Notice of Award... 48 APPENDIX I DEPARTMENT OF CHILDREN AND FAMILIES CONTRACT...49 ATTACHMENT I...59 SECTION 1. INTRODUCTION...59 1.1. DEFINITION OF TERMS... 59 1.1.1. Contract Terms... 59 1.1.2. Program or Service Specific Terms... 59 1.2. GENERAL DESCRIPTION... 64 1.2.1. General Statement... 64 1.2.2. Authority... 65 1.2.3. Scope of Service... 65 SECTION 2. SERVICES TO BE PROVIDED...65 2.1. SERVICE REQUIREMENTS... 65 2.1.1. Task List... 65 2.1.2. EBT Administrative System... 66 2.1.3. EBT Cards and PINS... 68 2.1.4. Disaster Support and Recovery Services... 71 2.1.5. Customer Service... 76 2.1.6. Training... 80 2.1.7. EBT Account Set-up and Benefit Authorization... 82 2.1.8. Transaction Processing... 83 2.1.9. Retailer Management... 92 2.1.10. Fraud Detection/Prevention Management/Investigations Support... 94 2.1.11. Settlement and Reconciliation... 96 2.1.12. Data Warehouse... 99 2.1.13. EBT Reporting... 99 2.1.14. System Interfaces (State and Federal)... 102 2.1.15. EBT Account Structure and Benefit Delivery Model... 103 2.1.16. Direct Deposit from the EBT Cash Benefit Account... 105 2.1.17. Optional Services:... 105 2.1.18. Task Limits... 108 iii

2.2. STAFFING REQUIREMENTS... 108 2.2.1. Staffing Levels... 108 2.2.2. Professional Qualifications... 109 2.2.3. Staffing Changes... 110 2.2.4. Requirement to Replace Detrimental Provider Staff... 111 2.3. SERVICE DELIVERY & EQUIPMENT... 112 2.3.1. Service Delivery Location... 112 2.3.2. Service Times... 112 2.3.3. Changes in Location... 112 2.4. DELIVERABLES... 112 2.4.1. Employment Screening Results... 112 2.4.2. Reports... 113 2.5. PERFORMANCE SPECIFICATIONS... 113 2.5.1. Operations Phase Performance Standards... 113 2.5.3. Performance Standards Statement:... 113 2.6. PROVIDER RESPONSIBILITIES... 114 2.6.1. Coordination with Other Providers/Entities... 114 2.6.2. Coordination with Subsequent Supplier Upon Completion of this Contract... 114 2.7. DEPARTMENT RESPONSIBILITIES... 114 2.7.1. Department Obligations... 114 2.7.2. Department Determinations... 114 2.7.3. Monitoring Requirements... 115 SECTION 3. METHOD OF PAYMENT... 115 3.1. PAYMENT CLAUSE... 115 3.2. PROVIDER FINANCIAL LIABILITIES... 115 3.3. FINANCIAL REMEDIES FOR PERFORMANCE DEFICIENCIES... 116 3.4. MYFLORIDAMARKETPLACE TRANSACTION FEE... 116 3.5. PROVISIONS FOR TRAVEL, EXPENSES, POSTAGE, ETC.... 117 3.6. INVOICE REQUIREMENTS... 117 3.6.1. Fee per Service invoice shall include:... 118 3.6.2. Optional Services Fee per Service invoice shall include:... 118 3.6.3. Professional Service (Basis: Amendment/Change Request, as applicable) invoice shall include:... 118 3.6.4. Recipient-paid Fees invoices shall include:... 118 3.6.5. Payments for up to Two (2) State Subsidized Cash-only Withdrawals Invoices shall include:... 118 SECTION 4. SPECIAL PROVISIONS... 119 4.1. EFFECT OF DEPARTMENT S FAILURE TO PERFORM DEPARTMENT OBLIGATIONS ON A TIMELY BASIS... 119 4.2. WARRANTY... 119 4.2.1. Quality of Deliverables and Department Review... 119 4.2.2. Timeliness... 119 4.3. SOFTWARE... 119 4.4. PROVIDER REPRESENTATIVE... 120 4.5. BACKUP STAFF REQUIRED TO ENSURE ADEQUATE PERFORMANCE... 120 4.6. MYFLORIDAMARKETPLACE REGISTRATION... 120 4.7. EMPLOYMENT ELIGIBILITY VERIFICATION... 120 4.7.1. Definitions used in this clause are defined below:... 120 4.7.2. Enrollment and verification requirements:... 120 4.7.3 E-Verify Web Site... 121 4.7.4 Individuals Previously Verified... 121 4.7.5 Individuals performing work prior to the E-Verify requirement... 121 4.7.6 Evidence of E-Verify Registration... 121 4.7.7 Subcontracts... 121 iv

4.8. CONTRACT RENEWAL... 122 4.9. END OF CONTRACT TRANSITION AND CONVERSION SUPPORT... 122 SECTION 5. EXHIBITS... 122 5.1. EXHIBIT A PROJECT DELIVERABLES AND DOCUMENTATION... 122 5.1.1 Status Reports... 123 5.1.2 Project Work Plan... 124 5.1.3 Transition Plan... 124 5.1.4 System Design Documents and Manuals... 124 5.1.5 System Testing... 124 5.1.6 Security Plans... 124 5.1.7 Training Plans and Materials... 126 5.1.8 Reports Manual... 126 5.1.9 Data Warehouse Manual... 126 5.1.10 Retailer Management Plan... 126 5.1.11 Cash Access Management Plan... 126 5.1.12 Settlement and Reconciliation Manual... 127 5.1.13 Administrative System Manual... 127 5.1.14 Change Management Plan... 127 5.2. EXHIBIT B DATA WAREHOUSE DATA ELEMENTS... 127 5.3. EXHIBIT C - REPORTS... 129 5.3.1. Disaster Reports... 135 5.4. EXHIBIT D PERFORMANCE MEASURES... 137 5.4.1. Transition Phase Performance Standards... 137 5.4.2. Operation Phase Performance Standards... 137 APPENDIX II - NOTICE OF INTENT TO SUBMIT A REPLY... 150 APPENDIX III CERTIFICATE OF SIGNATURE AUTHORITY... 151 APPENDIX IV VENDOR S STATEMENTS AND CERTIFICATIONS... 152 APPENDIX V - MANDATORY REQUIREMENTS AND TIE BREAKER CERTIFICATIONS... 158 APPENDIX VI PAST PERFORMANCE REFERENCES... 159 APPENDIX VII COST SHEET FORM... 160 APPENDIX VIII TRANSITION... 165 APPENDIX IX WIC EBT SERVICES... 167 v

SECTION 1. INTRODUCTION 1.1 INTRODUCTION TO THE PROCUREMENT The Florida Department of Children and Families (DCF or Department) Economic Self- Sufficiency Services Program Office is issuing this solicitation to interested parties for the purpose of obtaining Electronic Benefits Transfer/Electronic Funds Transfer (EBT/EFT) services to issue program benefits to eligible recipients in Florida. Any person interested in submitting a reply must comply with any and all of the terms and conditions described in this Invitation to Negotiate. 1.2 STATEMENT OF PURPOSE The Department seeks EBT/EFT services for the State of Florida. Florida EBT/EFT services currently include electronic payments and services (as defined in Appendix I, Attachment I of this ITN) for programs administered by the Department, as well as other State agencies. The successful Respondent will support the electronic delivery of benefits and services for these programs and, in the future, the electronic delivery of benefits and services for other programs. The objectives of the Department for benefit delivery are to: 1.3 CURRENT PROGRAMS Improve customer service and timely and accurate delivery of cash, food, and other benefits to eligible recipients Enhance the efficiency and effectiveness of program administration and accountability Improve service delivery and decrease costs of the Disaster Services program Reduce program fraud and abuse Reduce overall benefit delivery costs Currently, the State of Florida uses EBT/EFT services to issue Food Assistance Program benefits (FAP, formerly known as the Food Stamp Program), Temporary Cash Assistance, Refugee Assistance, Optional State Supplementation, Personal Needs Allowance Supplementation and Food Assistance Employment & Training benefits. A description of these programs along with payment and caseload data can be found in the supporting documents listed in Section 1.7. The Department reserves the right to add additional programs and services during the contract time period. The Respondent must provide the flexibility to add additional programs and services as mandated by law or as requested by the Department. The Respondent will assist the Department in evaluating and developing technical solutions and plans for expanded service delivery and will work cooperatively with the State and others, as appropriate, to ensure the responsive and successful addition of programs and services. The programs listed below are those under consideration for conversion to either EBT or EFT, in the future: 1

The Special Supplemental Nutrition Program for Women, Infants and Children (WIC). The WIC program provides supplemental nutritious foods, nutrition education and counseling, breastfeeding support, and referrals to health and social services to eligible pregnant, breastfeeding, and postpartum women, infants and children under age five. The supplemental WIC food received by clients are prescribed to meet the nutritional needs of that client and are specific in terms of food items allowed and quantities to be purchased. WIC benefits, when delivered via EBT, would be segregated from other benefits within a WIC benefit account or on a separate card. Additional information about the WIC Program is included in Appendix IX. Programs administered by the Agency for Persons with Disabilities Other Department programs, as identified This solicitation is for the current programs listed above and the addition of any other FNS programs, such as WIC, would require federal approval. 1.4 TERMS OF THE AGREEMENT The contract term is expected to be three (3) years with an anticipated start date of July 1, 2013. The contract shall end on June 30, 2016. The contract may be renewed for a period not to exceed three (3) years, one (1) three year period, or for the term of the original contract, whichever period is longer. Such renewal shall be made by mutual agreement and shall be contingent upon satisfactory performance evaluations as determined by the Department and shall be subject to the availability of funds. Any renewal shall be in writing and shall be subject to the same terms and conditions as set forth in the initial contract, including any amendments. 1.5 CONTACT PERSON AND PROCUREMENT MANAGER This ITN is issued by DCF. The contact point for all communication regarding this ITN is: Jane Wise, Procurement Manager Florida Department of Children and Families Economic Self Sufficiency Services Program Office 1317 Winewood Blvd., BL. 3, RM. 473 Tallahassee, FL 32399-0700 Email: Jane_Wise@dcf.state.fl.us All contact with the Procurement Manager shall be in writing via electronic mail, U.S. mail, or other common courier. No facsimiles or telephone calls will be accepted for any reason. 1.6 DEFINITIONS Contract terms and program or service specific terms can be found in Appendix I, Attachment I of this ITN, and is herein incorporated by reference. 2

1.7 SUPPORTING DOCUMENTATION The table below lists the supporting documentation, filename(s) of the supporting documentation, and the associated link to download the supporting documentation. Description Filename Link Cross Reference Card Status Codes Food For Florida Disaster plan (approved by USDA-FNS) Federal Waivers EBT Retailer Data (#, type) IVR Call Volume Data Card Issuance Volume Data Program Descriptions and Caseload Data Recurring Benefit File Volume Data Retailer Customer Service Data Transaction Volume Data State Interface File Layouts & Protocols Federal Interface File Layouts Card_Status_Codes.pdf FNS_ Approved_ FFF_ Plan_ Fy_ 2011.pdf Federal_ Waivers.pdf Commercial_ and_ EBTonly_ Data.pdf ARU_ Call_ Volumes.pdf Card_ Issuance_ Volumes.pdf Program_Description_a nd_caseload_2011.pdf RECURRING_ BENEFIT_ FILE_ DATA.pdf Retailer_ Customer_ Service.pdf Transaction_ Volumes.pdf State_File_ Layouts_ 2011.pdf Federal_ File_ Layouts.pdf http://www.dcf.state.fl.us/ admin/contracts/ebt http://www.dcf.state.fl.us/ admin/contracts/ebt http://www.dcf.state.fl.us/ admin/contracts/ebt http://www.dcf.state.fl.us/ admin/contracts/ebt http://www.dcf.state.fl.us/ admin/contracts/ebt http://www.dcf.state.fl.us/ admin/contracts/ebt http://www.dcf.state.fl.us/ admin/contracts/ebt http://www.dcf.state.fl.us/ admin/contracts/ebt http://www.dcf.state.fl.us/ admin/contracts/ebt http://www.dcf.state.fl.us/ admin/contracts/ebt http://www.dcf.state.fl.us/ admin/contracts/ebt http://www.dcf.state.fl.us/ admin/contracts/ebt Appendix I, Attachment I 2.1.2.1 Appendix I, Attachment I 2.1.4 ITN Appendix IV, k. Appendix I, Attachment I 2.1.9.1 Appendix I, Attachment I 2.1.5 Appendix I, Attachment I 2.1.3.3 ITN 1.3 Referenced in State File Interface and Protocols Appendix I, Attachment I 2.1.5.2 Appendix I, Attachment I 2.1.8 Appendix I, Attachment I 2.1.14 Appendix I, Attachment I 2.1.11.16 and 2.1.14 These documents will be discussed further in the Sections noted in the above table. 3

SECTION 2. ITN PROCESS 2.1 GENERAL OVERVIEW OF THE PROCESS The ITN process is divided into two phases. The Evaluation Phase involves the Department s initial evaluation of replies. During the Evaluation Phase, all responsive replies will be evaluated against the evaluation criteria set forth in this ITN to establish a competitive range of replies reasonably susceptible of award. The Department will then select one or more vendors within the competitive range with which to commence negotiations (short list). 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. Following negotiations, the Department will post a notice of intended contract award, identifying the responsive and responsible vendor(s) that provides the best value. Responsive vendors who are not short listed 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). 2.2 OFFICIAL NOTICES AND PUBLIC RECORDS 2.2.1 OFFICIAL NOTICES All notices, decisions, intended decisions, addenda and other matters relating to this procurement will be electronically posted on the DMS VBS website located at: http://myflorida.com/apps/vbs/vbs_www.main_menu. In order to find postings at such location: 1. Click on Search Advertisements 2. Under Agency select Department of Children and Families 3. Scroll down to the bottom of the screen and click on Initiate Search It is the sole responsibility of Respondents to check the VBS for information and updates. 2.2.2 PUBLIC RECORDS All electronic and written communications pertaining to this ITN, whether sent from or received by the Department, are subject to Florida public records laws. Section 4.4.6 addresses the submission of trade secret and other information exempted from public inspection. 2.3 PROTESTS AND DISPUTES 2.3.1 TIME LIMITS FOR FILING PROTESTS Any person who is adversely affected by the decision or intended decision made by the Department pursuant to this solicitation shall file with the Department a notice of protest in writing within 72 hours (Saturdays, Sundays, and state holidays excluded) after the posting of the notice of decision, or intended decision. The formal written protest shall be filed within ten (10) days after the date the notice of protest is filed. 4

2.3.2 PROTEST OF TERMS, CONDITIONS AND SPECIFICATIONS With respect to a protest of the terms, conditions and specifications contained in this solicitation, including any provisions governing the methods for ranking replies, awarding contracts, or modifying or amending any contract, the notice of protest shall be filed in writing within 72 hours (Saturdays, Sundays and state holidays excluded) after the posting of the solicitation. For purposes of this provision, the term the solicitation includes any addendum, response to written questions, clarification or other document concerning the terms, conditions, or specifications of the solicitation. The formal written protest shall be filed within ten (10) days after the date the notice of protest is filed. 2.3.3 BOND MUST ACCOMPANY PROTEST When protesting a decision or intended decision (including a protest of the terms, conditions and specifications contained in the solicitation), the protestor must post a bond equal to one percent (1%) of the Department s estimated contract amount. The estimated contract amount shall be based upon the contract price submitted by the protestor. If no contract price was submitted, the Department shall provide the estimated contract amount to the protestor within 72 hours (excluding Saturdays, Sundays, and state holidays) after the notice of protest has been filed. The estimated contract amount is not subject to protest pursuant to S. 120.57(3), Florida Statutes. The bond shall 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. FAILURE TO FILE THE PROPER BOND AT THE TIME OF FILING THE FORMAL PROTEST WILL RESULT IN A REJECTION OF THE PROTEST. In lieu of a bond, the Department may accept a cashier s check, official bank check, or money order in the amount of the bond. 2.3.4 FILING A PROTEST A notice of protest, formal protest, and bond are filed when received by the Procurement Manager listed in Section 1.5 above. Filing may be achieved by handdelivery, courier, US Mail or facsimile transfer. Filing by email will not be accepted. All methods of delivery or transmittal to the Department s contact person shall remain the responsibility of the protestor and the risk of non-receipt or delayed receipt shall be upon the protestor. FAILURE TO FILE A PROTEST WITHIN THE TIME PRESCRIBED IN S. 120.57(3), FLORIDA STATUTES, OR FAILURE TO POST THE BOND OR OTHER SECURITY REQUIRED BY LAW WITHIN THE TIME ALLOWED FOR A FILING A BOND SHALL CONSTITUTE A WAIVER OF PROCEEDINGS UNDER CHAPTER FILING 120, FLORIDA STATUTES. 2.4 LIMITATIONS ON CONTACTING DEPARTMENT PERSONNEL 2.4.1 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 72-hour period (Saturdays, Sundays and State holidays excluded), following the Department's posting of the notice of intended award, Department personnel or any employee or officer of the executive or legislative branch 5

concerning any aspect of this solicitation, except in writing to the Procurement Manager identified in Section 1.5 above or as 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. 2.4.2 CONTACT DURING THE NEGOTIATION PHASE During the negotiations 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 s. 286.0113(2), Florida Statutes) during the negotiations meetings; and (ii) communication between the lead negotiator for the prospective vendor(s) with whom the Department is negotiating and the lead negotiator for the Department outside of the negotiation meetings is permissible so long as it is in writing. 2.4.3 VIOLATION OF CONTACT LIMITATIONS Violation of the provisions of Section 2.4 of this ITN will be grounds for rejecting a reply, if determined by the Department to be material in nature. Violation of Section 2.4 is material in nature if the contact (oral, electronic, or written): is heard or read by a person, prior to the completion of that person's final duties under this ITN, which person is responsible for reviewing, evaluating, scoring, ranking, or selecting vendors under this ITN, or for advising any such person advocates for the selection of the prospective vendor, the disqualification of any other prospective vendor, or the rejection of all replies comments on the qualifications of any vendor or the responsiveness of any reply presents additional information favorable to the prospective vendor or adverse to another prospective vendor otherwise seeks to influence the outcome of this ITN, and may not be waived as a minor irregularity by virtue of the nature, intent, and extent of the information conveyed The foregoing does not preclude a determination by the Department that other forms of contact are material violations of the provisions of this ITN. 6

2.5 SCHEDULE OF EVENTS AND DEADLINES Activity ITN advertised and released on VBS * Solicitation Conference Technical Questions Due from Prospective Respondents Anticipated Date for Question and Answers to be Posted to VBS Notice of Intent to Submit Reply Form Due ITN Technical Reply Due * Public Reply Opening * Initial Evaluator Meeting Date Time (Eastern) Address 5/2/12 5 pm VBS Electronic Posting site: http://myflorida.com/apps/vb s/vbs_www.main_menu 5/14/12 10 a.m. Dept. of Children & Families. A room location will be 12 p.m. determined and posted on VBS. 5/21/12 3 pm Attn: Jane Wise Procurement Manager Dept. of Children & Families Economic Self Sufficiency Services Program Office 1317 Winewood Blvd., BL. 3, RM.473 Tallahassee, FL 32399-0700 Jane_Wise@dcf.state.fl.us 6/1/12 3 pm VBS Electronic Posting site: http://myflorida.com/apps/vb s/vbs_www.main_menu 6/6/12 3 pm Attn: Jane Wise Procurement Manager Dept. of Children & Families Economic Self Sufficiency Services Program Office 1317 Winewood Blvd., BL. 3, RM. 473 Tallahassee, FL 32399-0700 Jane_Wise@dcf.state.fl.us 6/12/12 2:30 pm Attn: Jane Wise Procurement Manager Dept. of Children & Families Economic Self Sufficiency Services Program Office 1317 Winewood Blvd., BL. 3, RM. 473 6/12/12 3 pm 5 pm 6/13/12 10 am 12 pm Tallahassee, FL 32399-0700 Dept. of Children & Families To be determined and posted on VBS Dept. of Children & Families To be determined and posted on VBS Section Reference 2.2.1 2.6 2.7 2.7 2.8 2.9 2.9, 2.10 5.1 7

Activity * Meeting for Validation of Evaluator Scoring Notice of Shortlist Posting Negotiation Meetings/Oral Demonstrations Begin * Meeting of Negotiation Team to Discuss Moving Forward * Meeting of Negotiation Team to Develop Recommendation for Award: Anticipated posting of Intended Contract Award: Anticipated Effective Date of Award: Date Time (Eastern) Address 6/29/12 10 am Dept. of Children & Families To be determined and posted 12 pm on VBS 7/6/12 3 pm VBS Electronic Posting site: http://myflorida.com/apps/vb s/vbs_www.main_menu 7/7/12-9/13/12 n/a 8/7/12 10 am 12 pm 9/13/12 10 am 12 pm To be determined and provided to Respondents individually Dept. of Children & Families To be determined and posted on VBS Dept. of Children & Families To be determined and posted on VBS 9/18/12 3 pm VBS Electronic Posting site: http://myflorida.com/apps/vb s/vbs_www.main_menu Section Reference 5.2.3 5.1.7 11/20/12 n/a N/A *All vendors are hereby notified that the meetings noted with an asterisk above (*) are public meetings open to the public and may be electronically recorded by any member of the audience. Although the public is invited, no comments or questions will be taken from vendors or other members of the public (except for the Solicitation Conference, in which comments and questions will be taken from vendors). Note: All times in the event schedule are local times for the Eastern Time Zone. Although the Department may choose to use additional means of publicizing the results of this procurement, posting on the VBS is the only official notice recognized for the purpose of determining timeliness in the event of protest. 2.6 SOLICITATION CONFERENCE The purpose of the Solicitation Conference is to review the ITN with interested Respondents so that areas of misunderstanding or ambiguity are clarified. The Department encourages all prospective vendors to participate in the Solicitation Conference, during which vendors may pose questions. The Solicitation Conference for this ITN will be held at the time and date specified in the Schedule of Events and Deadlines (Section 2.5). The Department shall not be bound by oral information or written information that is not contained within the solicitation documents or formally posted as an addendum or a response to questions. 5.2 5.2 5.3 5.3 8

Participation is not a Pre-requisite. Participation in the solicitation conference is not a prerequisite for acceptance of replies from prospective vendors. 2.6.1 SMALL, MINORITY, WOMAN -OWNED AND SERVICE-DISABLED VETERAN-OWNED BUSINESSES PARTICIPATION Small Businesses, Certified Minority and Women -Owned Businesses and Service- Disabled Veteran-Owned Businesses are encouraged to participate in conferences, conference calls, pre-solicitation, or pre-proposal meetings. All Respondents shall be accorded fair and equal treatment. 2.6.2 OFFICIAL DEPARTMENT RESPONSES 2.7 WRITTEN INQUIRIES Only responses posted on the VBS website are to be considered official Department responses to questions, whether the question is presented during the Solicitation Conference or submitted in accordance with Section 2.7 below. Prospective vendor questions will only be accepted if submitted in writing to the Procurement Manager specified in Section 1.5, via electronic mail, U.S. mail, or other delivery service and clearly labeled Electronic Benefits Transfer/Electronic Transfer Funds and received on or before the date and time specified in Section 2.5. No questions will be accepted by facsimile or telephone. Questions must be submitted in the following format to be considered: Question # Vendor ITN Section ITN Page # Question Responses to all written inquiries, and clarifications or addenda if made to the ITN, will be made through the VBS. 2.8 NOTICE OF INTENT TO SUBMIT A REPLY Respondents who are interested in responding to this ITN are required to send a Notice of Intent to Submit a Reply (Appendix II) to the Procurement Manager specified in Section 1.5, on or before the date and time specified in the Schedule of Events and Deadlines (Section 2.5). Submission of a Notice of Intent is mandatory and is a pre-requisite for acceptance of replies from prospective vendors. 2.9 RECEIPT OF REPLIES 2.9.1 REPLY DEADLINE Replies must be received by the Department no later than the date and time provided in Section 2.5, at the address listed in the Schedule of Events and Deadlines. All methods of delivery or transmittal to the Department s contact person shall remain the responsibility of the prospective vendor and the risk of non-receipt or delayed receipt shall be upon the prospective vendor. 9

2.9.2 BINDING REPLIES By submitting a reply, each vendor agrees that its reply shall remain a valid offer for at least 120 calendar days after the reply opening date and that, in the event the contract award is delayed by appeal or protest, such 120-day period is extended until entry of a final order in response to such appeal or protest. 2.9.3 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. 2.9.4 RECEIPT STATEMENT Replies not received at the specified address, date and time, or both, will be rejected and returned unopened to the vendor by the Department. The Department will retain one unopened original for use in the event of a dispute. 2.10 APPLICATION OF MANDATORY REQUIREMENTS A vendor must comply with all Mandatory Requirements in order to be considered for selection under this ITN. The mandatory requirements for this ITN are set forth in Appendix V. The Procurement Manager will examine each reply to determine whether the reply meets the Mandatory Requirements specified in Appendix V. A reply that fails to meet the Mandatory Requirements will be deemed nonresponsive and will not be evaluated. Meeting the Mandatory Requirements alone will not impact any ranking in the short listing process. An initial determination that a reply meets the Mandatory Requirements does not preclude a subsequent determination of non-responsiveness. 2.11 REQUEST TO WITHDRAW REPLY A written request to withdraw a reply, signed by the vendor, may be considered if received by the Department within 72 hours after the reply opening time and date as specified in Section 2.5 above. A request received in accordance with this provision may be granted by the Department upon proof of the impossibility to perform based upon an obvious error on the part of the vendor. 2.12 COST OF PREPARATION OF REPLY By submitting a reply, a vendor agrees that the Department is not liable for any costs incurred by the vendor in responding to this ITN. 10

2.13 GENERAL INSTRUCTIONS TO RESPONDENTS FORM PUR 1001 (10/06) The standard General Instructions to Respondents Form PUR 1001 (10/06) is hereby incorporated into this solicitation by reference as if fully recited herein. Sections 3, 4, 5, 14, and 17 of the PUR 1001 Form are not applicable to this solicitation. In the event of any conflict between Form PUR 1001 and this solicitation, the terms of this solicitation shall take precedence over the Form PUR 1001 unless the conflicting term is required by any section of the Florida Statutes, in which case the term contained in PUR 1001 shall take precedence. The form can also be found at the following link: http://www.dms.myflorida.com/index.php/content/download/2934/11780/version/6/file/1 001.pdf 2.14 DEPARTMENT S RESERVED RIGHTS 2.14.1 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 which 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 interest of the Department. At its option, the Department may correct minor irregularities but is under no obligation to do so. In doing so the Department may request a vendor to provide, and at the request of the Department the vendor may provide to the Department, 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. 2.14.2 RIGHT TO INSPECT, INVESTIGATE AND RELY ON INFORMATION In ranking replies for negotiation and in making a final selection, the Department reserves the right to inspect a 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. 2.14.3 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 assumes no liability to any vendor. 2.14.4 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 assumes no liability to any vendor. 11

2.14.5 RESERVED RIGHTS AFTER NOTICE OF AWARD 2.14.5.1 The Department reserves the right, after posting notice thereof, to withdraw or amend its Notice of Award and reopen negotiations with any vendor at any time prior to execution of a contract. 2.14.6 OTHER RESERVED RIGHTS. The Department reserves all rights described elsewhere in this ITN. (This space intentionally left blank) 12

SECTION 3. MINIMUM SPECIFICATIONS 3.1 VENDOR QUALIFICATIONS The Vendor must meet the Minimum Specifications identified below. A reply that fails to meet the Minimum Specifications will be deemed nonresponsive and will not be evaluated. 3.1.1 MANDATORY REQUIREMENTS The vendor must meet the requirements of Section 4.2.2. 3.1.2 VENDOR DISQUALIFICATION UNDER PUR 1001 Persons or affiliates placed on the Convicted Vendor List or the Discriminatory Vendor List are disqualified pursuant to Sections 7 and 8 of PUR 1001. 3.1.3 VENDOR DISQUALIFICATION FOR PREVIOUS FAILURE TO PERFORM In addition to other criteria set forth herein, failure to have performed any previous contractual obligations with the Department in a manner satisfactory to the Department will be a sufficient cause for disqualification. To be disqualified as a vendor under this provision, the vendor must have: 3.1.3.1 Previously failed to satisfactorily perform in a contract with the Department, been notified by the Department of the unsatisfactory performance, and failed to correct the unsatisfactory performance to the satisfaction of the Department; 3.1.3.2 Had a contract terminated by the Department for cause; or 3.1.3.3 Failed to sign a certification regarding debarment, suspension, ineligibility and voluntary exclusion contract/subcontracts (Appendix IV) prior to contract execution. 3.2 MINIMUM PROGRAMMATIC SPECIFICATIONS The selected Respondent shall perform, at a minimum, the tasks outlined in Appendix I, Attachment I in accordance with all terms thereof, which is being posted on the VBS along with this ITN, and is herein incorporated by reference. 3.3 VENDOR REGISTRATION IN MYFLORIDAMARKETPLACE To comply with Rule 60A-1.030, Florida Administrative Code (F.A.C.), each successful vendor doing business with the State of Florida for the sale of commodities or contractual services as defined in section 287.012 F.S., shall register in the MyFloridaMarketPlace system, unless exempted under Rule 60A-1030(3), F.A.C., in order to be paid. Vendors who are not subject to registration requirements should include proof of exemption by Rule from registration. Failure to include either proof of registration or exemption will not prevent the evaluation of the reply; however, such failure must be remedied prior to execution of a contract, if any. 13

3.4 COMPOSITION OF THE CONTRACT The contract awarded as a result of this solicitation will be composed of: 3.4.1 STANDARD CONTRACT The Department s Standard Contract (Appendix I) contains additional general contract terms and conditions required by the Department for all vendors. The Department s Standard Contract is available as a separate document on the Vendor Bid System along with the advertisement for this ITN. 3.4.2 APPENDIX I (ATTACHMENT I ) The Department s Appendix I (Attachment I) contains contract terms and conditions governing the performance of the work, the clients to be served, required deliverables and performance standards, and compensation. Appendix I (Attachment I) will be part of the contract resulting from the ITN and its terms and conditions are binding upon all vendors. 3.4.3 PUR FORM 1000 The PUR Form 1000 is incorporated by reference into the Department s Standard Contract. PUR Form 1000 can be found at the following link: http://www.dms.myflorida.com/index.php/content/download/2933/11777/version/ 6/file/1000.pdf 3.4.4 OTHER ATTACHMENTS OR EXHIBITS 3.5 ORDER OF PRECEDENCE All other attachments and exhibits to the contract referenced in this solicitation or the above documents will also be part of the resulting contract, if any. In the event of conflict in terms among the foregoing, the following order of precedence will apply. The reply submitted in response to this solicitation may be incorporated into or attached to the contract but will not change the provisions of the below documents. 3.5.1 APPENDIX I, ATTACHMENT I 3.5.2 ALL ATTACHMENTS AND EXHIBITS TO ATTACHMENT 3.5.3 APPENDIX I, THE DEPARTMENT S STANDARD CONTRACT 3.5.4 PUR FORM 1000 3.5.5 THE VENDOR S REPLY (INCLUDING UPDATES FROM NEGOTIATIONS) 14

SECTION 4. INSTRUCTIONS FOR RESPONDING TO THE ITN The Respondent shall submit its reply in the format prescribed. The prescribed format and instructions for this solicitation have been designed to help ensure that all replies are reviewed and evaluated in a consistent manner, as well as to minimize costs and response time. The reply shall consist of two independent parts, a Programmatic Reply and a Cost Reply which are specified in Sections 4.2 and 4.3, respectively. 4.1 HOW TO SUBMIT A REPLY 4.1.1 MANDATORY REPLY DEADLINE All replies must be received by the Procurement Manager by the deadline, and at the location set forth in Section 2.5, Schedule of Events and Deadlines. 4.1.2 ELECTRONIC TRANSMITTAL OF REPLIES NOT ACCEPTABLE Facsimile or electronic transmissions of replies will not be accepted. The vendor may choose the appropriate means for delivery, and is responsible for receipt of the reply by the Procurement Manager at the address listed in Section 1.5 by the date and time indicated in Section 2.5. Late replies will be rejected. 4.1.3 REPLY AMENDMENTS Any amendments to the reply as originally submitted by the vendor, not required by the Department, must comply with the requirements of this section and must be received on or before the due date as specified in Section 2.5. 4.1.4 NUMBER OF COPIES REQUIRED Vendors shall submit: One (1) original and ten (10) hard copies of the Programmatic Reply One (1) original and four (4) hard copies of the Cost Reply Two (2) electronic copies of both the Programmatic Reply and the Cost Reply The original copies of both the Programmatic Reply and the Cost Reply contain an original signature of an official who is authorized to bind the vendor to their reply. 4.1.5 REPLIES TO BE IN SEALED PACKAGES Each set of hard and electronic copies and their original must be sealed in separate packages by Reply type. For example, all Programmatic replies must be sealed in one package and all Cost Replies must be sealed in one package. See Section 4.2 and Section 4.3 for formatting instructions. The outside of each package must be clearly marked with the title of the reply, the ITN number, the vendor's name, and identification of enclosed documents (e.g. Programmatic Reply for Electronic Benefits 15

Transfer/Electronic Funds Transfer (EBT/EFT) services; Cost Reply for Electronic Benefits Transfer/Electronic Funds Transfer (EBT/EFT) services). The original reply must be clearly marked as such, and the copies identified and numbered (i.e., original, copy #1 of 10, etc.). All individually sealed packages must be placed in an appropriately sealed mailing container, e.g. box. Clearly mark the exterior of the mailing container Reply to DCF Competitive Solicitation Number 02F12GC1; for Electronic Benefits Transfer/Electronic Funds Transfer (EBT/EFT). 4.2 CONTENT OF PROGRAMMATIC REPLY 4.2.1 TITLE PAGE The first page of the reply shall be a Title Page that contains the following information: 4.2.1.1 Department of Children and Families 4.2.1.2 Title of reply; including the words PROGRAMMATIC REPLY 4.2.1.3 ITN number 4.2.1.4 Identification of enclosed documents 4.2.1.5 Prospective vendor s name and federal tax identification number 4.2.1.6 Name, title, telephone number, e-mail, and address of person who can respond to inquiries regarding the reply 4.2.2 TAB 1: REQUIRED VENDOR S STATEMENTS AND CERTIFICATIONS MANDATORY REQUIREMENTS The reply must include all of the mandatory requirements in Appendix V; the requirements described below, and must be received by the date and time and at the address specified in Section 2.5. A reply that fails to meet the Mandatory Requirements will be deemed nonresponsive and will not be evaluated. 4.2.2.1 Certificate of Signature Authority The reply must include a completed and signed copy of the Certificate of Signature Authority. (Appendix III) 4.2.2.2 Acceptance of Contract Terms and Conditions The reply must include a completed and signed copy of the Acceptance of Contract Terms and Conditions. (Appendix IV.a.) 4.2.2.3 Statement of No Involvement The reply must include a completed and signed copy of the Statement of No Involvement. (Appendix IV.b.) 16

4.2.2.4 Conflict of Interest Statement (Non-Collusion) The reply must include a completed and signed copy of the Conflict of Interest Statement (Non-Collusion). (Appendix IV.c.) 4.2.2.5 Certification Regarding Lobbying The reply must include a completed and signed copy of the Certification Regarding Lobbying. (Appendix IV.d.) 4.2.2.6 Certification relating to Scrutinized Companies with Activities in Sudan List or the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List The reply must include a completed and signed copy of the Certification relating to Scrutinized Companies with Activities in Sudan List or the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List. (Appendix IV.e.) 4.2.2.7 Certification Regarding Debarment The reply must include a completed and signed copy of the Certification Regarding Debarment. (Appendix IV.f.) 4.2.2.8 Certification of a Drug Free Workplace The reply must include a completed and signed copy of the Certification of a Drug Free Workplace. (Appendix IV.g.) 4.2.2.9 Certificate of Dun & Bradstreet Financial Stress Score The reply must include a completed and signed copy of the Dun & Bradstreet Financial Stress Score Certification (Appendix IV. h.) 4.2.2.10 Certification of Representations per Section 9 of PUR 1001 The reply must include a completed and signed copy of the Certification of Representations per Section 9 of PUR 1001. (Appendix IV.i.) 4.2.2.11 Cost Proposal Certification Statement 1 and 2 The reply must include a completed and signed copy of the Cost Proposal Certification, Statement 1 and 2. (Appendix IV. j. and k.) 4.2.2.12 EBT Regulatory Compliance Requirements The reply must include a completed and signed copy of the EBT Regulatory Compliance Requirements. (Appendix IV. l.) 4.2.2.13 Tie Breaking Certifications 17

The reply may include and or all Tie Breaking Certifications identified in Appendix IV m. thru p. for which it qualifies. Completion of the Tie Breaking Certifications is optional for qualifying vendors, however, a vendor waives all rights to consideration of a tie breaker if it fails to submit the certification for the tie breaker. 4.2.3 TAB 2: VENDOR S CROSS REFERENCE TABLE Vendor replies must include a cross-reference between the reply and the ITN requirements in Section 4.2 and 4.3. Separate cross-reference tables must be developed for the Programmatic and Cost Replies. The Programmatic cross-reference table must be directly behind the title page in the Programmatic Reply. The Cost Proposal cross-reference table must be directly behind the title page in the Cost Reply. Both cross-reference tables must be formatted as follows: ITN REPLY Page(s) Sect/Part Subject Subject Page(s) Sect/ Part Title Page Title Page Required Vendor s Statements and Certifications Mandatory Requirements Response to Understanding the Statement of Purpose Description of the Vendor s Organizational Qualifications Required Vendor s Statements and Certifications Mandatory Requirements Response to Understanding the Statement of Purpose Description of the Vendor s Organizational Qualifications 4.2.4 TAB 3: TABLE OF CONTENTS The vendor s reply shall include a Table of Contents. 4.2.5 TAB 4: EXECUTIVE OVERVIEW This section of the ITN requires the Respondent to describe and provide evidence of their capabilities to perform the scope and types of tasks required by DCF. DCF will allow the Respondent s to subcontract one (1) or more required services to another vendor therefore a prospective Respondent s experience, combined with that of any subcontractor(s), must demonstrate the capability to successfully meet the requirements of this ITN. A Respondent s Executive Overview must include its understanding of the statement of need and EBT Regulatory Compliance requirements (Appendix IV.l.). 18

4.2.5.1 Understanding of Statement of Need: Respondents will include information showing their understanding of the needs specific in this ITN. 4.2.6 TAB 5: COMPANY PROFILE AND EXPERIENCE 4.2.6.1 Corporate and Organization Structure: The Respondent shall provide a description of its corporate organization. In addition, the Respondent shall confirm that all customer service call center staff performing services under the terms and conditions of this award will be located within the United States. 4.2.6.2 Description of the Respondent s and Subcontractors (if any) Organizational Qualifications: Respondent s shall demonstrate their experience (and subcontractors, if any) in providing the same type(s) and scope of services which it will be responsible for as specified in Appendix I, Attachment I. Preference will be given to Respondents who have performed, managed and/or delivered the scope and types of EBT/EFT services identified in this ITN subsection as either a prime or subcontractor within the past five (5) years to a customer(s) with a similar scope of services as specified in Appendix I, Attachment I. Respondents should also demonstrate experience in processing large volumes of automated transactions. The experience shall be demonstrated as well for subcontractors (if any). For each of the following services experience requirements, Respondent s must identify: The total number years of experience for the service Description of the project(s) for which the service was provided Whether the specified service was performed as a prime contractor or subcontractor A clear indication of the Respondent s ability to perform the specified services to meet the requirements of this ITN 4.2.6.3 Financial Systems Development, Implementation, Operations and Management: Respondents shall describe their experience and that of the subcontractor (if any) in the development, implementation, operations, and ongoing management of large scale, complex financial systems, such as EBT and EFT. 19