REQUEST FOR PROPOSALS Service Contract Act Administration February 21, 2012 Jason Carlin 918-384-7636 CNB Purchasing Jason.carlin@cnent.com Cherokee Nation Businesses 777 West Cherokee St. Catoosa, OK 74015 1
TABLE OF CONTENTS I II III IV V VI A Introduction Summary Background Subcontractor s Acknowledgments General Information and Conditions Instructions for Preparation of Proposal Attachments General Requirement Information 2
INTRODUCTION Cherokee Nation Businesses, LLC (CNB) is a tribal limited liability company of the Cherokee Nation, a federally recognized government. It was created in June 2004 to provide shared services and strategic coordination and to act as a holding company for certain business ventures. CNB and the companies it owns are managed by a common CEO and Board of Directors. CNB s corporate headquarters is located in Catoosa, OK. CNB and its entities employ over 5,000 employees across multiple businesses and industries. Consolidated CNB revenues are approximately $600 million annually. Several of these entities are engaged in government contracting. Eight of our entities are working on contracts which require compliance with Service Contract Act (SCA) requirements with about 260 employees subject to these requirements. Currently administration is performed in-house. SUMMARY Cherokee Nation Businesses is receiving proposals from well-qualified firms to perform SCA administration services. The subcontract award will be for three (3) years with an option for the Cherokee Nation Businesses to renew the subcontract annually for up to two (2) additional years. Subcontract award and renewals will be subject to satisfactory delivery of services. The subcontract will contain a cancellation clause in favor of the Cherokee Nation Businesses. SCA administration services to CNB and its subsidiaries will consist of and be limited to: 1. Administration of a bona-fide benefit trust covering only SCA eligible employees 2. Consistent and accurate calculation of SCA benefit owed per pay period based on employee benefit elections 3. Interface activity to include acceptance of benefit election and employee data and return of Cash in lieu of rate by employee each pay period 4. Compliance consulting related to industry trends and governmental regulation changes 5. Report preparation 6. Recalculation of benefit received as requested by CNB 7. Regulatory audit support Copies of the Request for Proposal may be downloaded from the Cherokee Nation bid website at www.cherokeebids.org under the Cherokee Nation Businesses procurement icon. Copies may be requested from Jason Carlin, Senior Procurement Manager at Jason.carlin@cnent.com. CNB reserves the right to determine a proposal in terms of meeting RFP requirements and to accept or reject any and all proposals received. CNB reserves the right to negotiate with offerors regarding the terms of their proposal or parts thereof. CNB will award the subcontract in the best interest of the company and its subsidiaries. All questions, correspondence and communication regarding this RFP must be directed to Jason Carlin at Jason.carlin@cnent.com or Susie Scott at Susie.scott@cn-bus.com. Contact with other employees of CNB or its subsidiaries in relation to this RFP are prohibited and may result in disqualification of the offerors proposal. 3
BACKGROUND The Cherokee Nation Businesses fiscal year begins on October 1 and ends on September 30. Medical, dental and vision benefits are offered through a self-insured plan. CNB is currently establishing a trust to ensure this plan qualifies as a bona-fide benefit plan. This plan is a 3 tiered plan with employer and employee cost being split approximately 80-20. Employees also receive company paid life, LTD and STD coverage and a company paid EAP benefit. Life insurance coverage is based on salary. All employees have the option to buy additional life coverage. In some instances vacation benefits exceed contractual requirements and can be subtracted from CILOB rates. Most companies have a 401K plan that is also offered to employees. Most companies offer a safe harbor plan with immediate eligibility and matching contribution dollar for dollar up to 6%. Employees are enrolled at 3% unless they decline participation. Two subsidiaries have a 401K plan without an employer match. A summary of the entities requiring SCA services and their current benefit plan structure can be found in Attachment A. All entities currently pay the balance of CILOB owed to the employee on paychecks each pay period. Employee data storage, management and payroll are performed by CNB using the Peoplesoft HRMS and Financial System. Consideration is being given to changing to a 401k contribution methodology but no final decision has been made at this time. Medical plan year is from May 1 st April 30 th. The 401K plan year is from Jan 1 st December 31 st. CNB s fiscal year runs from October 1 st thru September 30 th. The following entities are included in this Request for Proposals: Cherokee Nation Businesses is the parent company. The parent provides shared services to all subsidiaries including employee services and benefit administration. The offeror chosen will work closely with the Employee Services team related to employee data, benefit elections, interfaces and other information as may be identified. Cherokee Medical Services LLC and Cherokee Nation Healthcare Services LLC are 100% owned CNB subsidiaries active in the medical staffing government contract space. Currently, these 2 companies have 153 employees subject to SCA requirements. Cherokee Services Group LLC, Cherokee Nation Technologies LLC, Cherokee Nation Technology Solutions LLC, and Cherokee Nation Government Solutions LLC, are 100% owned CNB subsidiaries active in the professional and information technology services area of government contracting. Currently these 4 companies have 223 employees subject to SCA requirements. Cherokee Nation Defense Solutions LLC, Cherokee Nation Redwing LLC, and Cherokee Nation Security and Defense LLC are 100% owned CNB subsidiaries active in defense, logistic, security and procurement services area of government contracting. Currently these 3 companies have 1 employee subject to SCA requirements. Cherokee CRC LLC is a 51% owned subsidiary in environmental and aviation government services. Currently this company has 2 employees subject to SCA requirements. 4
CNB s government business continues to grow and active proposals could substantially increase administration of SCA regulations. SUBCONTRACTOR S ACKNOWLEDGEMENTS By submitting a proposal in response to this RFP, the subcontractor will be required to sign and comply with the attached Non-Collusion, Business Relationship Affidavits and Non-disclosure Agreement. In addition, the Subcontractor understands, represents and acknowledges that: All information provided by, and representations made by, the Subcontractor in the proposal are material and important and will be relied upon by CNB in awarding any Subcontract; The proposal is made in good faith and not pursuant to any agreement or discussion with, or inducement from, any firm or person to submit a complementary or other noncompetitive proposal; To the best knowledge of the person signing the proposal for the Subcontractor, the Subcontractor, its affiliates, subsidiaries, officers, directors, and employees are not currently under investigation by any governmental agency and have not in the last four (4) years been convicted or found liable for any act prohibited by federal, state, local or tribal law in any jurisdiction, involving conspiracy or collusion with respect to bidding or proposing on any public contract; To the best of the knowledge of the person signing the proposal for the Subcontractor and except as otherwise disclosed by the Subcontractor in its proposal, the Subcontractor has no outstanding, delinquent obligations to any federal, state, local or tribal entity, including but not limited to, any tax liability. GENERAL INFORMATION AND CONDITIONS CNB will receive proposals from well-qualified firms to perform Service Contract Act administration for the benefit of CNB and its subsidiaries as per the scope of work and terms and conditions contained in this Request for Proposal. The CNB reserves the right to award to more than one firm. CNB will make this Request for Proposal and the successful bidder s proposal a part of the subcontract. All correspondence and questions regarding this Request for Proposal and requests for additional information must be directed to Jason Carlin, CNB Sr. Procurement Manager, at jason.carlin@cnent.com or Susie Scott, CNB Benefits Director at Susie.scott@cn-bus.com. No interpretation of the meaning of the Request for Proposal will be made to any Subcontractor orally. No telephone inquiries please. A copy of this Request for Proposal will be posted on the CNB bid website www.cherokeebids.org under CNB procurements icon. All questions regarding this RFP must be directed to CNB no later than 5:00 p.m., Monday, February 27, 2012. CNB anticipates responding to any questions submitted on or before 5:00 p.m., Monday, March 5, 2012. Responses to any questions that may be posed or updates and/or addendums issued during the RFP process will be posted on the CNB bid website www.cherokeebids.org under CNB procurements. It is the responsibility of each bidder to monitor the website www.cherokeebids.org for information posted regarding this Request for Proposal. 5
Failure of any Subcontractor to receive any such addendum or interpretation shall not relieve such Subcontractor from any obligation under their proposal as submitted. All addenda so issued shall become part of the subcontract documents. No contact should be made with any CNB or subsidiary personnel regarding this RFP other than to the individuals named above. Each proposal must be submitted in a sealed envelope bearing on the outside the name of the proposing firm and the name of the project for which the proposal is submitted as well as one electronic copy on cd or USB drive. If forwarded by mail, the sealed envelope containing the proposal must be enclosed in another envelope addressed as specified above. Proposals will be accepted until 5:00 p.m., Friday, March 9, 2012. Three copies of the proposal should be submitted as well as one electronic copy on either a disc or usb drive. Proposals must be sealed and designated as RFP SCA Administration DO NOT OPEN. Proposals may be mailed to the attention of Jason Carlin, Procurement, Cherokee Nation Businesses, 777 West Cherokee St., Catoosa, Oklahoma, 74015, or may be hand delivered to Mr. Carlin at the Cherokee Nation Businesses offices at the same address. Any proposal received after the time stated above will not be considered. Term: The subcontract award will be for three (3) years with an option for the CNB to renew the subcontract annually for up to two (2) additional years. Subcontract award and renewals will be subject to satisfactory delivery of services. The subcontract will contain a cancellation clause in favor of the CNB. Indian Preference: CNB shall to the greatest extent feasible give preference in the award of contracts to Indian organizations and Indian-owned economic enterprises. Tribal Employment Rights Office - Tribal Employment Rights Office, TERO, requirements apply including fee of ½ of 1% of contract award. If applicable, the successful bidder may be required by TERO to complete a TERO Labor Agreement and pay all applicable fees, including $25 per non-indian employee working on CNB premises. The successful bidders performance will be measured, recorded and reported to the Cherokee Nation. Please refer to Cherokee Nation Legislative Act 38-05 dated 11/14/06 repealing and superseding Cherokee Nation law regarding Labor and Employment Rights Ordinance and Declaring an Emergency. The complete Act is available by contacting the TERO office at Tahlequah, 918-453-5000. TERO bidders are required to provide a copy, front and back, of their TERO certificate with return bid(s). Modification of Proposals: Any offeror may modify his proposal at any time prior to the scheduled closing time for receipt of proposals, provided such communication is received in writing by CNB prior to the closing time. Withdrawal of Proposals: Any proposal may be withdrawn prior to the above scheduled due date. Any proposals received after the date and time specified shall not be considered. No Subcontractor may withdraw a proposal within 30 days after the actual due date No public bid/proposal opening will be held. All proposals will be submitted based on the information contained in this Request for Proposal. Unless a specific note is made to the contrary, we will assume each Subcontractor s proposal conforms to the specifications contained herein. All deviations to any part of these specifications must be submitted in writing and clearly identified. Any deviation deemed to be significant by CNB will disqualify the proposal. Failure by 6
Subcontractors to identify any such deviation(s) will not in the future accrue to the disadvantage of CNB in any manner. Subcontractors or Joint Ventures: Where two or more offerors desire to submit a single response to this RFP, they should do so on a formal teaming basis rather than as a joint venture or informal team. CNB will contract only with the Subcontractor and expects the Subcontractor to perform the work. Should the Subcontractor propose to employ a second tier Subcontractor, the request must be made in writing to CNB. CNB must approve in writing any person, firm or party proposed by the bidder to award a subcontract. CNB, in giving such acceptance, assumes no responsibility in connection with the terms of the Subcontractor and their performance will be the responsibility of the Subcontractor. All Subcontractors who determine a need for subcontracting must state so in the initial proposal. Cost of Submitting Proposal: All costs in connection with the preparation and submission of this proposal will be paid by the Subcontractor. All proposals submitted in response to this RFP become the property of CNB. Confidentiality: It is understood any information submitted to the Subcontractor by CNB in respect to this Request for Proposal embodies certain proprietary information and is loaned to the Subcontractor on a confidential basis. Any information acquired at CNB or otherwise relating to processes belonging to CNB incorporated into this Request for Proposal shall be kept confidential. The Subcontractor agrees not to use in any unauthorized manner or communicate to others any such confidential items without the prior written consent of CNB and will undertake such measures as are necessary to require its employees and all approved teammates, second tier Subcontractors or Joint Ventures to maintain complete confidentiality. Debarment: By submitting a response to this Request for Proposal, the Contractor certifies to the best of their knowledge and belief that the Subcontractor, the firm, or any of its principals are not presently debarred, suspended, or proposed for debarment by any federal, state, local or tribal entity. This certification is a material representation of fact upon which reliance was placed when making award. If it is later determined the Subcontractor rendered an erroneous certification, in addition to other remedies available to CNB or its entities, CNB may terminate the contract resulting from this Request for Proposal for default. Verification of Scope of Work: Each Subcontractor must inform themselves fully of the Scope of Work and all terms and conditions in this Request for Proposal. Failure to do so will not relieve a successful Subcontractor of his obligation to carry out the provisions of this subcontract. All applicable laws and ordinances, and the rules and regulations of all authorities having jurisdiction over this project shall apply to the subcontract throughout, and they will be deemed to be included in the contract the same as though written out in full. Insofar as possible, the offeror, in performing work under this contract, will employ such methods or means as will not cause any interruption of or interference with the work of CNB Insurance Requirements: 7
The Subcontractor shall purchase and maintain such insurance as will protect CNB and its entities against any and all claims and demands arising from the execution of the contract. The Subcontractor shall maintain the following types of insurance and limits: Before performing contractual services on the behalf of or for CNB, compliance with the following insurance requirements must be verified: ** Provide an original Certificate of insurance naming CNB as a certificate holder and additional insured with respect to general liability, and automobile liability, as their interest may appear with respect to the operations defined in this proposal packet. The certificate shall reflect that coverage has been placed with an AM Best Rated Carrier of at least A IX and will contain the following information for each required coverage: 1) Type of insurance 2) Policy number 3) Effective date 4) Expiration date 5) Limits of Liability (this amount is usually stated in thousands) 6) Thirty day notice of cancellation, except ten-day cancellation clause will apply for nonpayment of premium. ** Required Coverages: 1) Worker's Compensation and Employer's Liability: Limits of Liability: Bodily Injury by Accident: $100,000 each accident Bodily Injury by Disease: $500,000 policy limit Bodily Injury by Disease: $100,000 each employee Oklahoma Statute requires Worker's Compensation coverage for anyone with one (1) or more employees. Subcontractor s worker s compensation policy shall include a waiver of subrogation in favor of CNB. 2) General Liability: Coverages: Commercial General Liability. In addition to the additional insured endorsement, the commercial general liability policy shall also include a waiver of subrogation in favor of CNB. Limits of Liability: Bodily Injury and Property Damage Combined: $1,000,000 (each occurrence) 3) Automobile Coverage: Vehicles Covered: All Autos Hired Autos Non-owned Autos Limits of Liability: Bodily Injury and Property Damage Combined: $1,000,000 8
4) Errors and Omissions: A Certificate of Insurance indicating coverage with the minimum qualifications of Errors and Omissions coverage of $3,000,000 per occurrence or $5,000,000 aggregate limit. The certificate of insurance must provide the named insured, carrier, coverage name, policy number, policy limit, effective dates of coverage, and the coverage limits. NOTE: The Subcontractor shall either: (1) require each of his second tier subcontractors to procure and to maintain during the life of his subcontract, identical insurance for the type and in the same amounts as specified above, or (2) insure the activities of all subcontractors in his own policy. Each subcontractor policy must also name CNB as an additional insured with respect to general liability and auto liability. Governing Laws and Contract: CNB will make this Request for Proposal and the successful Subcontractor s proposal a part of the contract. This Request for Proposal and any subsequent contract shall be construed under the laws of the United States and where applicable, the Cherokee Nation. Nothing in this Request for Proposal, any subsequent documents or contract shall be construed as a waiver of limitation upon the Cherokee Nation s sovereign immunity. To the extent this statement is found to be inconsistent with any other language in this Request for Proposal or any subsequent document or contract, this statement shall control. This statement shall survive the completion or termination of any subsequent contract. By submitting a proposal in response to this Request for Proposal, the Subcontractor agrees to these terms and conditions. In the event of any dispute which may affect this Agreement, the Subcontractor agrees the Agreement shall be governed by the laws of the United States, and where applicable, the laws of the Cherokee Nation. Service contract will be negotiated between the parties and subject to CNB s approval. Right to Inspect: CNB reserves the right to inspect and investigate thoroughly the establishment, facilities, equipment, business reputation and other qualifications of the Subcontractor and any proposed second tier Subcontractors and to reject any proposal irrespective of price if it shall be administratively determined that the Subcontractor is deficient in any of the essentials necessary to assure acceptable standards of performance. CNB reserves the right to continue this inspection procedure throughout the life of the subcontract that may arise from this RFP. Evaluation Process: An Evaluation Committee of qualified persons will evaluate each proposal received. As part of the evaluation process, the Committee reserves the right to direct CNB s Procurement or Benefit s Departments to contact responding parties with questions regarding the proposal. The Committee reserves the right to schedule presentations with prospective Subcontractors. Subcontractors may be asked to provide additional data or oral discussion for the purpose of addressing identified concerns or questions in the proposal, clarify any ambiguities, and discuss aspects of the cost and/or delivery of services. The Committee may make such investigations as they deem necessary to determine the ability of the Subcontractor to perform the work, and the Subcontractor shall furnish to the Committee all such information and data for this purpose as may be requested. 9
Technical Evaluation: Each technical proposal that is timely received will be independently evaluated in accordance with the Evaluation Criteria in this Request for Proposal. Cost/Price Evaluation: After review of all technical proposals, cost/price proposals shall be reviewed primarily in terms of relation to technical proposals. The technical appraisal of proposed prices should focus on the level of system services and the necessary support resources under the contract requirements. Pre-Award On-Site Visit: Prior to award of a contract, CNB reserves the right to conduct a pre-award survey of any offeror under consideration to confirm any part of the information furnished by the offeror, or to require other evidence of interim system managerial, financial, technical, and other capabilities which is determined by CNB to be necessary for the successful performance of the contract. CNB may solicit from all available sources additional experience data concerning an offeror s past performance and will consider such information in its evaluation. Offerors should refer also to section regarding Qualifications of Offerors. Award Without Discussion: Negotiations may be conducted with offerors whose proposals are in the competitive range; however, CNB reserves the right to award a contract on the basis of initial proposals submitted without negotiation and without a call for best and final offers. Award of an initial contract will not obligate CNB to exercise any contractual option. Prior to exercising any option, CNB will make a determination that: Funds are available The requirement covered by the option fulfills an existing need of the CNB and its subsidiaries The exercise of the option is the most advantageous method of fulfilling CNB s need, price and other factors considered. Failure to exercise an option(s) shall not obligate CNB to pay any charges other than the contract price including exercised options. Oral or Written Presentation: Oral or written presentations supporting the written proposal for this effort may be requested during the selection process. Offerors may be asked to provide additional data or oral discussion for the purpose of addressing identified deficiencies in the technical proposal, clarify any ambiguities, and discuss aspects of the cost proposal. After these presentations, offerors may be requested to submit revisions or a best and final offer. The date of final receipt of such offer will be common to all offerors. Notification of Award - All offerors will be notified by letter when their proposal is no longer considered for award. CNB is not obligated to award the contract based on cost alone. Term of Contract - The subcontract period shall begin from the date of award through April 30, 2015, with options for renewal as follows: Year 1 May 1, 2012 to April 30, 2013 Year 2 May 1, 2013 to April 30, 2014 Year 3 May 1, 2014 to April 30, 2015 Option Year 4 May 1, 2015 to April 30, 2016 Option Year 5 May 1, 2016 to April 30, 2017 10
Evaluation Criteria - A description of each of the evaluation factors, together with the method of evaluation, is set forth below. Mandatory requirements and experience factors will be scored. Offerors are cautioned not to minimize the importance of adequate responses in any area. I. Technical Evaluation 1) Work Plan and Staffing Plan 2) Experience A) Corporate a) The offeror meets specific qualification requirements imposed by Tribal, Federal, State or Local law to perform SCA administration services. b) A copy of the most recent SAS70 report should be submitted with the proposal B) Team Member Experience a) Resumes b) Similar Project Participation Over the Past 5 Years C) Past Experience (in last 5 years) a) Engagements that match the scope of work required under the Request for Proposal will be evaluated higher than services that do not match the required work. Offerors who have performed the same type of services as that required under the Request for Proposal will be evaluated higher than offerors who have not performed the same services. b) Offerors who have performed services that correspond closely or exceed the complexity of the required services will receive higher evaluation than offerors whose past experience is limited to less complex tasks. c) Offerors who have performed services that cover multiple SCA methodologies will be evaluated higher than offerors whose experience is limited to one methodology per client d) Offerors who have experience with interfaces to and from Peoplesoft s HRMS and Financial Payroll System will be evaluated higher than offerors who has not work with the Peoplesoft system 3) References (clients within last 5 years) A) A minimum of five (5) corporate references, including name of principle, title and phone number, are to be provided for these line of businesses. a) Tribal Governments b) Governmental Services c) Parent/Subsidiary organizations d) Client on Peoplesoft platform II. Cost Evaluation 1) Total proposal price for 3 years ensuring a detailed description of services included 2) Price rate outlined for annual administration 3) Rates for additional/optional services or consulting 4) Rates for any travel or incidental expenses 11
5) Rates/price for initial implementation III. Other Audit/Examination/Retention of Records: The Subcontractor, any second tier subcontractors, teaming partners or joint ventures shall maintain books and records related to the performance of this contract in accordance with applicable law, terms and conditions of any contract with CNB, and generally accepted accounting standards. Subcontractor shall maintain books and records for a minimum of three (3) years after the completion of the contract, final payment, or completion of any contract, audit, or litigation, whichever is later. All books and records shall be available for review or audit by CNB, its representatives, and other governmental entities with monitoring authority upon reasonable notice and during normal business hours. Subcontractor agrees to cooperate fully with any such review or audit. 12
INSTRUCTIONS FOR PREPARATION OF PROPOSAL Each proposal submission must be submitted in two sections. The first section shall contain a Technical Proposal and the second section shall contain the Cost Proposal. The following considerations shall be addressed in the proposal; Technical Proposal 1. Work Plan The work plan includes administration services for CNB and applicable subsidiaries with employees subject to SCA requirements. CNB may add or remove subsidiaries as needed based on government contract activity. Administrative Services should include the following: Administration of the trust covering only SCA employees as outlined in the trust agreement and as requested by CNB management Administration of multiple CILOB rates based on contract requirements. Timely and accurate SCA rate adjustments based on regulation or contract modification. Actuarial calculation of medical and dental plan benefit rates will be performed by an external party of CNB s choice and appropriate rates will be provided to the chosen firm annually Accept open enrollment, new hire elections and election changes for applicable employees for medical benefits Accept 401K enrollment and status changes Interface with Peoplesoft HRMS and Financials. Employee data will be sent from Peoplesoft. The chosen firm will send the CILOB rate for each employee back to Peoplesoft Financials each pay period within the established deadline to allow for payroll processing. Administer rates for multiple methodologies and across multiple pay periods Provide at least quarterly employee statements Calculate remaining CILOB rate by employee based on medical plan tier election, salary, 401K elections and leave in excess of requirements Advisory services on legal and procedural requirements such as SCA rate increases, reporting requirements, and regulatory changes. Other services may be outlined in the proposal but must be separately stated and priced and must be agreed to by both parties to the contract. 2. Requirements for Completion of Deliverables In addition to the above services, the technical proposal should include: A copy of the most recent SAS 70 report Examples of standard employer reports Overview of recommended procedures Description of internal controls to protect confidential data Proposed service level metrics 3. References 13
The offeror shall provide a minimum of five (5) corporate references preferably for line of business as follows: tribal government, government services, entities with multiple subsidiaries potentially with different SCA methodologies and clients using a Peoplesoft platform with working interfaces. Each reference shall include the name of the principle, the title and the phone number. The references should be relative to the last five years of business. Cost Proposal The cost proposal will consist of professional fees and out-of-pocket expenses identified for services outlined in the proposal. The annual fee should give a detailed description of the services included. A separate rate/price should be outlined for initial implementation. Any hourly professional fees should be stated for a Partner, Senior Manager, Manager and other staff separately. If a blended rate is used, an explanation of how the rate is calculated should be included. Rates for any services outside of the annual fee should be specifically given with estimates of additional annual costs. Rates for any travel or incidental expenses should be discussed. 14