Addendum No. 2 Q&A Responses ADDENDUM NO. 2. State of Florida Department of Management Services

Addendum No. 2 Q&A Responses ADDENDUM NO. 2 State of Florida Department of Management Services INVITATION TO Negotiate (ITN) No. 02 973 000 A Management Consulting and Auditing Services August 30, 2012 Contained herein are the responses to the questions submitted to the Department of Management Services. If you choose to print this document, please be advised that the print parameters for this document are set for legal size paper (8½ x 14). Please Note: This Addendum No. 2 does not need to be returned with the Response. FAILURE TO FILE A PROTEST WITHIN THE TIME PRESCRIBED IN 120.57(3), FLORIDA STATUTES, OR FAILURE TO FILE A BOND OR OTHER SECURITY WITHIN THE TIME ALLOWED FOR FILING A BOND SHALL CONSTITUTE A WAIVER OF PROCEEDINGS UNDER CHAPTER 120, FLORIDA STATUTES.

To be eligible for consideration, is a company that submits a response to ITN No. 02 973 Part 1: The purpose of question 4 in FORM 1.A is to determine if a company currently 000 A expected to be able to perform the services outlined in Section 6.3 (Category meets the requirement and generates annual revenues of $5 million performing the 1) AND generate an annual revenue of $5 million (Pass Fail Question 4 on Form 1.A)? scope of services identified in Section 6.3, whether or not under this Contract. Sat If so, is there/will there be an ITN for Management Consulting Services similar those 1 08/18/2012 outlined under ITN No. 02 973 000 A issued now or in the near future for companies FORM 1.A has been revised. Please see Addendum 3. 12:26 PM that perform these services but have annual revenues less than $5 million? Part 2: No. 2 08/20/2012 12:42 PM Just to clarify my understanding, a firm must have $2.5M and $5M in annual sales to be able to respond to this ITN. Is there any way for small, established firms to do business with the State? FORM 1.A has been revised. Please see Addendum 3. Companies that do not generate the required annual revenue amounts may partner with awarded companies as subcontractors in accordance with ITN Section 4.3. 3 4 08/20/2012 1:06 PM Wed 08/22/2012 11:14 AM For Management Consulting Services, Category 1, will the State considering lowering the requirement of generating at least $5 million in annual revenues to $3 million? With regards to size the Pass/Fail Requirements tables in Section 1.A and 2.A, it appears to stipulate that the bidding firm must have revenues of 5,000,000 and 2,500,000 respectively. Does this mean that each management consulting opportunity is in excess of that amount and therefore small businesses are considered unqualified to provide management consulting services to the state, and therefore should not be given the opportunity for continued growth with the state? FORM 1.A has been revised. Please see Addendum 3. The annual revenue requirements in FORM 1.A and FORM 2.A do not mean that each opportunity is in excess of that amount. Please see the ITN Goals in ITN Section 1.4 and see revised FORM 1.A in Addendum 3. 5 6 7 Thur 08/23/2012 10:10 AM Thur 08/23/2012 10:10 AM Thur 08/23/2012 10:10 AM Form 3 References Is it a typo stating NO state employees can be used as a reference? To best demonstrate experience providing the scope of services it would be most applicable to be able to show state of Florida experience. Can we please use state of FL employee references? Form 3 References Can reference signatures be electronically scanned and submitted? Form 1.A Pass/Fail form What is the intent of having a $5 million dollar ($5,000,000) in annual revenues threshold for performing Management Consulting Services? FORM 3 has been revised. Please see Addendum 3. Yes. Please see the ITN Goals in ITN Section 1.4 and see revised FORM 1.A in Addendum 3.

Form 6 Subcontracting considering the broad scope of Category 1 of the ITN and the Please see ITN Section 4.3. Thur fact that any public agency within the State of FL may use this contract vehicle, we do FORM 6 has been revised. See Addendum 3. 8 08/23/2012 not know what scope(s) of work requested may require a subcontractor. If we do not 10:10 AM submit Form 6 completed with a subconsultant at this time, are we non responsive? 9 10 11 12 Thur 08/23/2012 10:10 AM Thur 08/23/2012 10:10 AM Thur 08/23/2012 4:23 PM Thur 08/23/2012 4:23 PM Please provide the list of all attendees who attended the pre proposal meeting in person and via conference call at 9 am Aug 23, 2012. Is there a list of consultants and dollar amounts received who have received work using the State Term, Management Consulting Contract? Regarding Section 1.7, Timeline, should the Contractor Start Date be December 1, 2012 instead of December 1, 2013? Regarding Section 4.26, Insurance Requirements: a. Can the $5,000,000 face amount requirement for Commercial General Liability insurance be met with a combination of Commercial General Liability insurance and Umbrella Liability insurance? b. In the past, we have not seen the requirement for a customer to be included as a loss payee on a contractor s Business Interruption Insurance policy. Can you explain why this is required? A list of Pre Response Conference attendees is posted in VBS. http://myflorida.com/apps/vbs/vbs_www.ad.view_ad?advertisement_key_num=10257 0 This information is not readily available. Yes. Please see Addendum 1. a. Yes. b. ITN Section 4.26 has been revised. Please see Addendum 3. 13 14 Thur 08/23/2012 4:23 PM Thur 08/23/2012 4:23 PM Regarding Forms 1B and 2B, Category Pricing Response Form, should bidders assume that the hourly rates will be held constant over the term of the contract, with no annual cost of living adjustments? Regarding Form 3: a. The instructions state Note: References shall not be given by: employees of the State of Florida, persons employed by the State within the past three (3) years, persons.. Is this statement correct for this ITN? Our preferred references may be employees or past employees of the State of Florida due to current and past projects with the State. b. If this form is subsequently modified or replaced, will references still be accepted on the current form? We have already sent this form to certain references for their use. Yes. The ITN assumes fixed pricing for the term of the contract. See ITN Section 4.13. a. FORM 3 has been revised. Please see Addendum 3. b. Yes.

Thur Regarding Form 6, please provide additional information about the Subcontractor FORM 6 has been revised. Please see Addendum 3. 15 08/23/2012 Acceptance Process. 4:23 PM 16 17 18 19 20 21 Fri 08/24/2012 9:50 AM Fri 08/24/2012 9:50 AM Fri 08/24/2012 9:50 AM Fri 08/24/2012 9:50 AM Fri 08/24/2012 9:50 AM Fri 08/24/2012 9:50 AM Does the ITN replace the current management consulting state contract? Does the ITN require a respondent to generate annual revenue of $5 million (Category 1) from management consulant services to be eligible for evaluation? If so, why was this dollar revenue threshold selected? Yes. Please see the ITN Goals in ITN Section 1.4 and see revised FORM 1.A in Addendum 3. What is the purpose of establishing a revenue threshold? Please see the ITN Goals in ITN Section 1.4 and see revised FORM 1.A in Addendum 3. Will DMS issue a similar ITN for companies that generate annual revenues of less than $5 million from management consultant services? Was there an annual revenue threshold amount included in the ITN that resulted in the management consultant state contract currently in force? If so, what was the threshold? Is this ITN designed for respondents who will supply management consulting services to state agencies only or is it similar to the existing management consulting services state contract that is often used by local governments for competitive procurement? No. No. Please see ITN Section 1.2. 22 Fri 08/24/2012 3:59 PM Will awards from ITN # 02 973 000 A result in award of new State Term contracts which will include environmental services (e.g., environmental planning services & documentation, environmental compliance services, environmental occupational training services, waste management services and software, remote advisory services, geographic information systems (GIS) services, remediation services). If environmental services are not included, do you know when those services will again be requested? The scope of services for this ITN are provided in Section 6. Plans for future ITNs have not been made at this time.

The ITN indicates in Section 2.7 Diversity that the State is dedicated to fostering economic growth of small, minority owned businesses. It further specifies that the State encourages these vendors to participate as prime vendors in this solicitation. However, the pass/fail requirement on Form 1.A (#4) for vendors to have at least $5 million in annual revenues performing Management Consulting Services will unfairly prohibit small, minority owned vendors from participating in this solicitation. Thus, this FORM 1.A has been revised. Please see Addendum 3. 23 pass/fail requirement is not only contrary to the State s stated goal to foster economic Sun growth for small, minority owned businesses, but the requirement serves to 08/26/2012 unreasonably limit competition. There are at least two other specifications in the 7:46 PM solicitation that afford the State an opportunity to ensure vendors are financial responsible and have the needed skills, without imposing arbitrary and artificial revenue benchmarks. We refer to pass/fail requirements #3 and #5 on Form 1.A. Therefore, will DMS eliminate the $5 million in Management Consulting pass/fail requirement? 24 Sun 08/26/2012 7:46 PM Section 1.2 Overview indicates that, The Department reserves the right to award to one or multiple Respondents, statewide or by region. However, Section 2.12 Technical Evaluation Criteria, Capacity, Office Locations, #1 indicates that vendors will be evaluated Based on the physical location and listing of offices in and around Florida. According to the scoring criteria, vendors that do not have multiple locations will be scored lower than vendors that have offices throughout the State. Thus, DMS s option to potentially award contracts by Regions is not supported by the corresponding scoring methodology. Will DMS revise the scoring methodology to address regional awards? The Department does not intend to make a regional award. However, if it is found to be in the best interest of the state, the Department reserves the right to award statewide or by region. 25 Sun 08/26/2012 7:46 PM How many firms does DMS intend to award contracts to as a result of ITN No. 02 973 000 A? The Department will not be able to determine the optimum number of contract awards until after negotiations have been conducted.

Sun Form 3, References indicates that, References shall not be given by: employees of the State of Florida, persons employed by the State within the past three (3) years a. Will DMS remove the restriction from using State of Florida employees as references to allow Florida firms to demonstrate their governmental strengths and capabilities? b. If DMS does not remove this requirement, how will DMS provide the evaluation team a. FORM 3 has been revised. Please see Addendum 3. b. FORM 3 has been revised. Please see Addendum 3. 26 08/26/2012 with information regarding the quality of the consulting firm s work within the State of 7:46 PM Florida under the current Management Consulting contract? 27 Sun 08/26/2012 7:46 PM Form 3, References indicates that, References shall not be given by: employees of FORM 3 has been revised. Please see Addendum 3. the State of Florida, persons employed by the State within the past three (3) years Does DMS consider staff employed by Florida state colleges and universities as State of Florida employees? 28 29 30 31 32 Sun 08/26/2012 7:46 PM Sun 08/26/2012 7:46 PM Sun 08/26/2012 7:46 PM Sun 08/26/2012 7:46 PM 11:23 AM Form 3, References indicates that, References shall not be given by: employees of the State of Florida, persons employed by the State within the past three (3) years Does DMS consider other vendors project managers who are contracted by the State of Florida as State of Florida employees? Form 3, References indicates that, Upon completion of this form, please return original to Respondent. Is an electronic version with a scanned signature acceptable to submit with all copies of the respondent s proposal? Form 3, References indicates, Please describe the strategic sourcing service(s) the Respondent provided. Is it DMS s desire to receive reference information on Management Consulting services or Strategic Sourcing services? Section 2.10 Reply Submittal, Form 3 References indicates Respondent must submit at least three references with their Reply from government agencies. What is DMS s desire for the maximum number of references to be provided by respondents? Which State Agencies prepare financial statements using the Statements of Federal Financial Accounting Standards issued by the SFFAS? Thank you. The Department does not consider other vendor's project managers employees of the State of Florida. Yes. FORM 3 has been revised. Please see Addendum 3. ITN Section 2.10 B has been revised. Please see Addendum 3. This information is not readily available.

Form 3: References, question #5 states strategic sourcing services. Is this a mistake? Yes. FORM 3 has been revised. Please see Addendum 3. 33 Should strategic sourcing be removed since this ITN includes more services than just 11:25 AM strategic sourcing? Is there a certain amount of firms that you plan on qualifying for the award? If so, how The Department will not be able to determine the optimum number of contract awards 34 many firms do you have in mind? 11:25 AM until after negotiations have been conducted. 35 11:29 AM On Form 1 and Form 2, Section File B, under Personnel Qualifications, the Department asks for the the completed projects to which the employee was recently assigned, for each key personnel. a. Is DMS requesting a list of all completed projects or a list of all completed projects for the state of Florida? b. Please clarify amount of time for which such experience should be provided (i.e. Six months, one year, etc.). a. The Department believes the information requested was adequately stated in the ITN. b. The Department believes the information requested was adequately stated in the ITN. 36 37 38 39 11:29 AM 11:29 AM 11:29 AM 11:44 AM On Form 1 and Form 2, Section File C, under Project Workload, the Department asks the Respondent to provide details on the number and size of requests you received over the last year, locations of requests, project requirements, length of projects, and turn around time for each project. Is DMS requesting a list of projects for which an agency directly contracted with us without going through a formal bid process because we were a state term vendor? On Form 6: Why is DMS requesting information regarding subcontractors at this time? Our determination to use subcontractors is dependent upon the specific solicitation issued by individual agencies, the scope of work, and the specific expertise needed to supplement our core services. We request that this requirement be removed from the ITN. If DMS is not agreeable to removing this requirement, please indicate if we would be prohibited from adding subcontractors in the future in response to specific projects from specific agencies? Regarding the revenue thresholds listed as prerequisites to qualify for the category 1 and category 2 services. Please provide the motivation for the state to use such thresholds. In order to be eligible to bid Category 1: Management and Consulting Services, must the contractor have generated at least $5 million in annual revenue in order to bid this category? If so, does the firm need to submit proof of generating such income? By requests, the Department means projects accepted by the Respondent. Part 1: FORM 6 has been revised. See Addendum 3. Part 2: Please see ITN Section 4.3. Please see the ITN Goals in ITN Section 1.4 and see revised FORM 1.A in Addendum 3. Part 1: FORM 1.A has been revised. Please see Addendum 3. Part 2: In accordance with Section 2.14 of the ITN, the Department may require the Respondent to show proof of annual revenues.

To qualify to bid Category 1, must the contractor include projects conducted within the past three years that address each bulleted item in Section 6.3 of the ITN? For Part 1: Please see the evaluation instructions in ITN Sections 2.11 and 2.12. 40 example, if a contractor has not provided expert witness services in support of Part 2: Yes. 11:44 AM litigation, etc, can that contractor still be eligible to submit a response to this category? 41 42 43 11:44 AM 11:44 AM 11:44 AM Can a non CPA firm submit a response to Category 2: Financial and Performance Audits? In order to be eligible to submit a response to Category 2, does the contractor have to show that they have performed work in each of the bulleted areas identified in Section 6.4 of the ITN? To clarify the requirements listed in Section 4.26 pertaining to insurance coverage, must the contractor provide the department with an insurance certificate to include the required coverage within 5 calendar days of being awarded the contract? Please see ITN Section 1.5. Please see the evaluation instructions in ITN Sections 2.11 and 2.12. Please see ITN Section 4.26. 44 45 46 47 48 49 11:44 AM 11:58 AM 12:03 PM 12:03 PM 12:03 PM 12:03 PM Does each member of the contractor s project team have to have at least 6 years of the required experience for each category or just the contractor (i.e., firm)? Will the Division of State Purchasing reconsider the pass/fail requirements for the above reference ITN, provided on pages 34 and 38 of the ITN, by allowing the individual state agencies and local governments to set those requirements? For the submission, can proposed team members on both Management Consulting and Financial & Performance Auditing be the same if particular personnel have the necessary experience in both areas? Can a list of attendees at the pre bidders conference both in person and via teleconference be provided? Can examples of previous projects be provided, by category: a. Management consulting b. Financial auditing c. Performance auditing What types of projects are anticipated in the future? Please see ITN FORM 1.A Question 3 and FORM 2.1 Question 3. No. FORM 1.A has been revised. Please see Addendum 3. Yes. A list of Pre Response Conference attendees is posted in VBS. http://myflorida.com/apps/vbs/vbs_www.ad.view_ad?advertisement_key_num=10257 0 This information is not readily available. This information is not readily available.

Can the Department provide the number of hours of services that were performed This information is not readily available. 50 under the previous contract? 12:03 PM Are the Terms and Conditions negotiable? Some terms and conditions may be negotiated during the negotiation stage of the 51 12:03 PM solicitation. Is there a particular project that requires the use of a subcontractor? None that we are aware of at this time. 52 12:03 PM Can a subcontractor be proposed at the time of a project proposal? Yes. 53 12:03 PM On pg. 5 of the ITN, the last row of Timeline table in Section 1.7 lists the anticipated Yes. Please see Addendum 1. 54 contractor start date as December 1, 2013. Should this be December 1, 2012, or is the 12:13 PM date listed correct? 55 On pg. 5 of the ITN, the Timeline table in Section 1.7 lists the anticipated date to post No, but all amendments to the ITN Timeline will be posted in VBS. answers to questions on the VBS as August 28. Can we assume that if the release date for the answers is delayed, the due date will be adjusted accordingly? 12:13 PM 56 57 12:13 PM 12:13 PM On pg. 32 of the ITN, Form 1, Category 1 Reply Submittal Instructions and Materials, File C requests a number of details related to Project Workload. Should Respondents include subcontractor projects and requests under File C, Project Workload, or only projects and requests of the prime contractor? On pg. 32 of the ITN, Form 1, Category 1 Reply Submittal Instructions and Materials, File C, the instructions for the Project Workload section asks bidders to provide the number of contractual agreements the Respondent has in place, as well as in the last 12 months... Does this refer to ALL contracts the company has, including those that are not related to the services being offered in Florida? Providing significant details on every project performed in the past year could be lengthy and potentially impossible to accomplish in the time provided. Would DMS consider limiting its request to a more specific subset of all the work the Respondent has accomplished in the past year? The Department believes the information requested was adequately stated in the ITN. The Department believes the information requested was adequately stated in the ITN.

On pg. 32 of the ITN, Form 1, Category 1 Reply Submittal Instructions and Materials, File By requests, the Department means projects accepted by the Respondent. C, the instructions for the Project Workload section asks Respondents to provide details on the number and size of requests you received over the last year. Please 58 define requests in respect to this requirement description. For example, does this 12:13 PM correspond to projects, contracts, or task orders? 59 60 61 62 63 64 65 66 12:13 PM 12:13 PM 12:13 PM 12:13 PM 12:13 PM 12:14 PM 12:14 PM 12:14 PM On pg. 32 of the ITN, Form 1, Category 1 Reply Submittal Instructions and Materials, File C, the instructions for the Project Workload section asks Respondents to provide details on the number and size of requests you received over the last year. Should these details be provided only for specific types of requests, such as projects in the area of disaster management, or projects performed within the state of Florida? When providing rates using Form 1 B, should the bidders provide rates only for the base years, or should they provide rates for multiple years, spanning the potential duration of the contract? On Form 3, References, it states that References shall not be given by: employees of the State of Florida, persons employed by the State within the past three (3) years. This would seem to prevent the use of references from work done for the State of Florida. Are State employees permitted to provide references for work done for the State of Florida? Regarding Form 3, References, are we required to provide the signed originals of the reference forms? Or will a scan or faxed copy of the signed original be acceptable? On Form 6, Subcontracting, the prime contractor is required to certify that this subcontractor has successfully complied with the "Subcontractor Acceptance Process." Can you direct us to this process, or define it? It does not seem to be discussed in the ITN or PUR 1001. 4.3 Subcontracting Page 15 of 45 What is the subcontractor approval process and where will the documentation be located? 4.26 Insurance Requirements Page 23 of 45 Workers compensation and auto insurance requirements appear to be a Prime only requirement. Are subcontractors required to have workers compensation insurance if they have no employees and auto insurance if they are using their personal vehicles The Department believes the information requested was adequately stated in the ITN. The ITN assumes fixed pricing for the term of the contract. See ITN Section 4.13. FORM 3 has been revised. Please see Addendum 3. Part 1: No. Part 2: Yes. Please see ITN Section 4.3. FORM 6 has been revised. Please see Addendum 3. Per ITN Section 4.3, before any work is performed under a Statement of Work, the Customer must approve all subcontractors in writing. FORM 6 has been revised. Please see Addendum 3. The Department believes the requirement was adequately stated in the ITN. 4.26 Insurance Requirements Page 23 of 45 ITN Section 4.26 and FORM 6 have been revised. Please see Addendum 3. If subcontractors are required to have workers compensation and auto Insurance may it be obtained post award?

Will subcontractor experience be considered in scoring of the respondent? Yes. 67 12:24 PM Will contracted pricing be negotiable for each task? Yes. Please see ITN Sections 4.13 and 4.19. 68 12:24 PM Will rate increases be considered during the term of the contract? If so, how often? No. 69 12:24 PM Will there be an opportunity to ask questions regarding any potential addendums to the There will not be another Question and Answer period during this solicitation. ITN? 70 12:24 PM 71 72 73 12:24 PM 12:24 PM 12:39 PM Would submitting more than 3 references be beneficial to the respondent? ITN Section 2.10 B has been revised. Please see Addendum 3. Form 3 states that references may not be obtained from state employees is this correct? Is it the intent of the ITN to exclude respondent s State project experience? Section 7 Regarding the listing of all contracts as described in the Experience section of File B, is it acceptable to provide a representative sample of the types of projects we are engaged in that meet your requirements? FORM 3 has been revised. Please see Addendum 3. The Department believes the information requested was adequately stated in the ITN. 74 75 12:39 PM 12:39 PM Section 1.1.H Historically, what percentage of purchases off this contract are by State Government versus Other Eligible Users (OEUs)? Section 7 For clarification, #7 Quarterly Sales Report is an example only since it is not included on PAGE 33, FILE D as a completed form, and is not to be included in the response. Can you confirm? This information is not readily available. FORM 7 is provided as an example only and is not required to be submitted with Replies.

Section 2.11 If a company scores acceptable (2 points) on all technical criteria, they still will not meet the 122 point (approximately 80%) threshold. If we understand the scoring methodology correctly, a score of 2 points ( Acceptable ) on all 17 questions across all 3 evaluators would result in 102 points and would not meet the 122 point cutoff. It would require an average score of approximately 2.4 points (i.e. above Average and approaching the midpoint to Excellent ) to achieve the required 122 points. Is it the intention to exclude Acceptable responses from the process and only In accordance with Section 1.4, a goal of the ITN is to establish a State Term Contract with a limited number of Contractors who have demonstrated their ability to meet the requirements of this ITN. 76 include companies that exceed this standard? If so, how will the Department ensure 12:39 PM that there is a fair definition of what is required for a company to exceed the Acceptable standard? Would you consider refining the definition of the evaluation scoring required to achieve the point scores, specifically for the 2 points ( Acceptable ) and 3 points ( Excellent ) levels, to clarify the requirement for the vendor community and provide guidance to the evaluators. 77 12:39 PM Section 4.11 Please describe the requirements to establish electronic invoicing with the Ariba Supplier Network, i.e.: 1. What is the cost to suppliers for enrollment, use and maintenance of an ASN account or does the payment of 1% transaction fee include the use and subscription to the ASN? 2. Are all agencies accepting electronic invoices at this time? 3. For a strictly services based contract or task order, has the state standardized the creation of a PO to accommodating the receiving process with MFMP? 4. If all invoices are submitted to the ASN, does this change the requirement to submit quarterly reports? 5. Will the Department assist in the training of implementing ASN for selected companies? 6. Do the invoices submitted through the pre audit and post audit requirements alluded to in section 4.15? These issues can be discussed during negotiations. 78 12:39 PM Section 4.15 Please describe the pre audit and post audit processes: 1. Has the information required with invoices been standardized and coordinated with DFS and the other state agencies and eligible users? 2. Please cite the statute or memorandum or rule references used in this process. These issues can be discussed during negotiations.

Section 4.19 Please confirm it is the intent of the requirement for an agency or other These issues can be discussed during negotiations. 79 eligible user (OEU) to release a RFQ to each company awarded in any category of this contract. Does the Department intend to expand the use of the Sourcing tool to implement this requirement for the State? If not, how will the Department assist the 12:39 PM agencies with compliance of this requirement? 80 81 82 83 84 12:39 PM 12:44 PM 12:44 PM 12:44 PM 12:44 PM Form 1.A, Dun & Bradstreet reports Please specify which Dun & Bradstreet Report the State may ask for during negotiations. Would the state consider an attestation of required scores? Will there be an annual fee escalation built into the contract to allow rates to keep pace with cost of living increases? Is it possible to add rates and additional labor categories not listed in the ITN? In Form 2 File B under experience, the ITN asks for vendors to "describe all contracts executed in the last 3 years that are of similar scope", this listing would be lengthy for larger size vendors. Would it be acceptable to submit a sample of similar projects? Is there a minimum number or fee amount that should be considered? Also, would it be acceptable to use State of Florida projects that qualify as examples? In Form 2 File C Project workload Is the Department asking for number of contracts in the last 12 months with the State of Florida or clients in general? If the latter, would a sampling be acceptable as this could be a lengthy list for larger vendors. These issues can be discussed during negotiations. The ITN assumes fixed pricing for the term of the contract. See ITN Section 4.13. No. The Department believes the information requested was adequately stated in the ITN. By requests, the Department means projects accepted by the Respondent. 85 86 Is there a page limit to the reply? Page 40, Form 3: References The Note for this form indicates that References shall not be given by employees of the State of Florida If the vendor currently holds a contract with an agency of the State for activities which may be included on this procurement, is it permissible to use a contact from that agency as one of the three required references? No. FORM 3 has been revised. Please see Addendum 3.

Page 6, Section 2.1 The Department believes the information requested was adequately stated in the ITN. Section 2.1 states All Replies are subject to the terms of the following sections a) ITN 87 Amendments or Addenda, b) Introduction, c) Statement of Work. Must the language from each of these sections be included in the respondents replies? 88 Page 9, Section 2.10, and Page 33, Form 1 Instructions Section 2.10, page 9, and Form 1 Instructions, page 33, do not reference Form 7 for inclusion in the reply, while Section 7, page 31, states that Form 7 is to be included. Should respondents include a completed Form 7 with their replies? FORM 7 is provided as an example only and is not required to be submitted with Replies. 89 90 91 92 93 94 95 96 97 Page 9, Section 2.10, Form 3 References No. Please see ITN Section 4.3. Must at least one subcontractor be named for respondents to be responsive to the ITN? FORM 6 has been revised. See Addendum 3. Pages 15 26, Section 4 Is it expected that respondents will address each Section 4 condition in their replies? Section 4.27, page 25, lists the Quarterly Sales Report fields, but they differ slightly from the Form 7, Contract Quarterly Report, on VBS. Could you please clarify the fields for Form 7? Section 4.28, page 26, states that the Preferred Price Affidavit must be submitted at least annually. Must a completed Preferred Price Affidavit be submitted with the reply? Section 7, page 31, refers to Form 7 as a Quarterly Sales Report, yet the document listed as Form 7 on VBS is the Contract Quarterly Report. Could you please clarify which document is Form 7? Page 32, Form 1, Category 1 Reply Submittal Instructions and Materials, File B, Personnel Qualifications May personnel other than those named in the submission be added at a later time? Page 34, Form 1.A. Is the Respondent required to name subcontractors now, or is it possible to name them at the time services are requested by an agency? Page 34, Form 1.A. Does the Respondent have to have a subcontractor in order to be compliant? Page 35, Form 1.B. Should respondents use a blended rate to account for escalation over 3 years or should rates be separated by each year? Any concerns with these terms and conditions can be addressed during negotiations. Any concerns with the reporting fields can be addressed during negotiations. No. This is the same form. Yes. Please see ITN Section 4.3. FORM 6 has been revised. See Addendum 3. No. Please see ITN Section 4.3. FORM 6 has been revised. See Addendum 3. No.

Page 35, Form 1.B. No. ITN Section 4.16 addresses travel expenses. 98 Are travel expenses expected to be included in the fully loaded rate build up? May respondents use references from employees of agencies of the State of Florida FORM 3 has been revised. Please see Addendum 3. 99 with which respondents have had contracts? Page 40, Form 3, References Yes. 100 Are scanned or faxed versions of references, rather than originals, acceptable for submission? 101 102 01:10 PM 01:10 PM Per section 2.7 of the ITN," The Department is dedicated to fostering the continued development and economic growth of small, minority owned, and women owned businesses." 1.a How does the department foster these relationships? 1.b Does the department have a program to help it achieve its objectives? 1.c How does the department measure its performance in this area? 1.d Do you use a Minority Business Enterprise utilization score or a Disadvantage Business Enterprise program and post DBE utilization grades of its prime contractors? The ITN also states that "Participation of a diverse group of Respondents doing business with the State is central to the Department's effort." 2.a Can you provide detail on the department's efforts to contract with small, minorityowned and women owned enterprises or disadvantaged business enterprises? 2.b Can you provide guidance as to how we may assist/participate in the department's efforts to contract with small, minority owned and women owned enterprises or disadvantaged business enterprises? Please contact the Office of Supplier Diversity for information about the State of Florida's small, minority, and women owned business initiatives. http://www.dms.myflorida.com/other_programs/office_of_supplier_diversity_osd Please contact the Office of Supplier Diversity for information about the State of Florida's small, minority, and women owned business initiatives. http://www.dms.myflorida.com/other_programs/office_of_supplier_diversity_osd

Last, per section 2.7 of the ITN, "To this end, it is important that small, minorityowned, and women owned business enterprises participate in the State's procurement process as both prime Respondents and subcontractors under prime contracts." 3.a As a minority owned firm how do we identify these opportunities for subcontracting? Please contact the Office of Supplier Diversity for information about the State of Florida's small, minority, and women owned business initiatives. http://www.dms.myflorida.com/other_programs/office_of_supplier_diversity_osd 103 3.b Does the department maintain a list of prime contractors who are looking opportunities to subcontract with small, minority owned, and women owned 01:10 PM business enterprises or disadvantaged business enterprises? 3.c Have any of the primes (current or in the past) expressed interest in subcontracting with small, minority owned, and women owned business enterprises or disadvantaged business enterprises? 104 105 106 107 108 109 01:14 PM 01:14 PM 01:14 PM 01:14 PM 01:14 PM 01:14 PM Section 7: Forms, File C, Project Workload (pages 32 and 34). The ITN states the Respondent is to provide details on the number and size of requests you received over the last year Please clarify requests. Is this requests for proposals under the current contract? Section 7: Forms, Form 3, References, page 41 Regarding the NOTE: Please confirm that References shall not be given by employees of the State of Florida, nor those employed within the past 3 years? Section 7: Forms, Form 3, References, page 41 Regarding the NOTE: Please clarify employees of the State of Florida. Would this include employees of the University system or Water Management Districts, or only employees of the primary state agencies? Section 7: Forms, Form 3, References, page 41 Item #5 states Please describe the strategic sourcing services the Respondent provided Should this reference management consulting and auditing services rather than strategic sourcing? Form 6: Subcontracting, page 44 The form requests the Respondent to acknowledge that the subcontractor has successfully complied with the Subcontractor Acceptance Process. Where is this process documented? Form 7 is not referenced in the response instructions. Is Form 7 included for reference purposes only? By requests, the Department means projects accepted by the Respondent. FORM 3 has been revised. Please see Addendum 3. FORM 3 has been revised. Please see Addendum 3. FORM 3 has been revised. Please see Addendum 3. Please see ITN Section 4.3. FORM 6 has been revised. See Addendum 3. FORM 7 is provided as an example only and is not required to be submitted with Replies.

PUR 1000, Section 21, Limitation of Liability. Certain audit or attestation services have Some terms and conditions may be negotiated during the negotiation stage of the 110 professional standards that prohibit limitation of liability. Can the terms of PUR 1000 solicitation. 01:14 PM be addressed during the negotiation process? 111 112 01:23 PM 01:23 PM Will vendors awarded a contract as a result of this ITN have an opportunity to adjust their awarded rates during the 3 year life of the contract? ITN Form 3 stipulates that references may not be provided by employees of the State of Florida or persons employed by the State within the past three (3) years. Given the importance of State opinion in determining the value of a vendor as a consultant, will the Department consider allowing State and other Florida public sector employees (past or present) to supply references? The ITN assumes fixed pricing for the term of the contract. See ITN Section 4.13. FORM 3 has been revised. Please see Addendum 3. 113 114 115 116 117 118 01:23 PM 01:23 PM ITN Form 6 requires respondents to include information on all subcontractors that will be providing services to the Respondent to meet the requirements of the resultant contract Since it is likely that unique project needs may arise at any time during the three year contract term and may therefore necessitate the addition of new and appropriate subcontractors, does the Department envision allowing vendors to supplement the initial subcontractor list provided as part of the ITN response? What is the desired number of vendors on the contract? Does DMS have a target number of vendors in mind? Regarding Section 1.4, 2nd bullet, how many contractors does the Department intend to select as a result of this ITN? Please provide information on the contracts that have been awarded under the current Management Consulting contract, including the customer, contractor name, scope of work, and contract amount. Regarding Section 1.7 (Timeline), please confirm, as stated during the pre response conference, that the Contractor Start date should be December 1, 2012 (not December 1, 2013). Given the compressed timeline for responses to the ITN, would the Department consider extending the timeline for submission of responses? Please see ITN Section 4.3. FORM 6 has been revised. See Addendum 3. The Department will not be able to determine the optimum number of contract awards until after negotiations have been conducted. The Department will not be able to determine the optimum number of contract awards until after negotiations have been conducted. This information is not readily available. Yes. Please see Addendum 1. No, but all amendments to the ITN Timeline will be posted in VBS.

The ITN notes in Section 2.14: By submitting a Reply a Respondent agrees to be bound Yes, the Respondent may withdraw their Reply at any time during the solicitation. to the terms of the General and Special Contract Conditions. We also see in this Section that the negotiation process will include negotiation of terms and conditions of 119 a contract and that the Department reserves the right to negotiate different terms and that. If the Respondent and the Department are unable to come to agreement on the terms and conditions of the contract during the negotiation process, can the 120 121 Is a Business Associate Agreement required? If yes, please provide a sample. Regarding Section 2.9.B.3 (Technical Reply Evaluation), does the process described mean that the low end of the competitive range will be at least at 122 points but might start higher than that? In other words, the Department might not score pricing responses for some bidders that have scored 122 points or more? No. The Department believes this section was adequately stated in the ITN. 122 123 124 125 126 127 Regarding, Section 2.10 (Reply Submittal), please clarify whether the Respondent can include one CD ROM/thumb drive with five electronic copies (each in a separate directory) or whether the Respondent should include five separate CD ROMs/thumb drives. Regarding Section 2.10 (Reply Submittal), please confirm, as stated during the preresponse conference, that the hard copy can be in a single binder with tabs between Files (A D). Regarding Section 2.10 (Reply Submittal), please confirm, as stated during the preresponse conference, that it is acceptable for the Respondent to include scanned (vs. original) references Regarding 2.11 (Technical Evaluation Scoring), would the Department please provide more information on how the points will be allocated by File and/or Section (e.g., Experience, Personnel Qualifications)? Regarding 2.11 (Technical Evaluation Scoring), will any points be allocated to References? If so, how many points? If not, how will References be considered in the evaluation? Regarding 2.11 (Technical Evaluation Scoring), will any points be allocated to Subcontractors? If so, how many points? If not, how will Subcontractors be considered in the evaluation? The Respondent shall submit copies of their Reply on five separate CD ROMs or thumb drives. Yes. Yes. No. The Department believes this section was adequately stated in the ITN. Part 1: Points will not be allocated to references. Part 2: Please see ITN Section 2.10 B. The Department believes this section was adequately stated in the ITN.

Regarding 2.12 (Technical Evaluation Criteria), under File C (Capacity), Project ITN Section 2.12 contains information that will assist the evaluators in assessing the 128 Workload, #1, please clarify the meaning of multiple locations. Is this assessing the Respondent's Reply in File C. ability of the Respondent to serve customers statewide? 129 130 131 Regarding 2.12 (Technical Evaluation Criteria), under File C (Capacity), Office Locations, #1, is there a preference for Respondents with offices in and around Florida? Regarding 2.12 (Technical Evaluation Criteria), under File C (Capacity), Office Locations, #3, please clarify this criteria. Should the Respondent specify which of its offices (whether or not they are located in and around Florida) provide services sought in the ITN? ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File C. ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File C. Regarding 2.14 (Reply Evaluation and Negotiation Process), please clarify what is meant The Department believes this question was adequately stated in the ITN. by the term information gathered by the Department regarding this solicitation. What information does the Department intend to collect and how will it be evaluated? 132 133 In Section 4 (top of page 15) of the ITN, it suggests Respondents should not submit a red lined version of special contract conditions or other requirements of the ITN. Can Respondents identify areas to the general or special terms and conditions in the ITN they would like to further discuss without penalty (i.e. rejection of proposal or lowered scores)? If so, where in the proposal should these items be noted? Since it is rare that general contracts meet all circumstances, whether or not exceptions are allowed in the Respondent s response, please confirm successful awardees can request appropriate changes to the terms and conditions for specific Request for Quotes (RFQs) released for specific scopes of work. Part 1: Issues with the general and special conditions of the ITN should not be noted in the Respondent's Reply. Part 2: Some terms and conditions may be negotiated during the negotiation stage of the solicitation. As we understand the question, no. 134 In Section 4.26, under the subsection entitled Subcontractor Provider Insurance Coverage, does the Department require that individual subcontractors provide insurance in the amounts specified in the ITN? Will the Department allow the contractor to provide such insurance for its subcontractors? Part 1: Yes. Part 2: Yes. 135 Section 4.29 (page 26) requires Contractors to e Verify employment. Our firm s parent corporation completes the e Verification process for our limited liability company (LLC). Please confirm this process is acceptable. Any concerns with these terms and conditions can be addressed during negotiations.

Regarding File B, Personnel Qualifications, may the Respondent include ongoing The Department believes the information requested was adequately stated in the ITN. 136 projects (not just those that have been completed)? Many of our projects are large in scale and span several years. 137 01:35 PM Based on the current contract (973 001 06 1), the vendors are divided into categories (1 through 5) and then into service areas (i.e., surveys, accounting, legal services, etc). Will the Department of Management Services release service area specific RFPs once the vendors are selected? Will the service areas remain the same? The scope of services for this ITN are provided in Section 6. Plans for future ITNs have not been made at this time. 138 139 140 141 142 143 01:35 PM 01:40 PM 01:40 PM 01:40 PM According to page 26 of the ITN, the Preferred Pricing Affidavit a required to be submitted to the Department at least annually. Is the form required as part of a response to the ITN? Is this ITN the rebid of Contract No. 973 001 06 1: Management Consulting Services? If so, will the other categories be bid on under separate ITNs (Complementary Audit Services, Recovery Audit Services, Accounting Services, Audit and Financial Training Services, etc.) or would these items now fall under this ITN? For File B in both categories, you request key personnel. Will the Principal and Senior Consultant levels suffice to demonstrate this requirement? For the Pricing Forms, will the proposed rates be in effect for all three years of the contract? Or is there an opportunity each year to allow for standard market increases? ITN Section 2.12 Office Locations Question #1 How will you evaluate physical coverage of the state? ITN Section 2.12 Office Locations Question #2 How will you evaluate vendors with the ability to provide the scope of services sought in this ITN based on resources within the US, but outside the State of Florida, versus vendors that source resources from within the State of Florida, recognizing that the ability to get the best resource available for an assignment may mean looking beyond State of Florida local resources? No. The scope of services for this ITN are provided in Section 6. Plans for future ITNs have not been made at this time. The Department believes the information requested was adequately stated in the ITN. The ITN assumes fixed pricing for the term of the contract. See ITN Section 4.13. ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File C. ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File C.

ITN Section 2.12 Office Locations Question #3 Please explain what you mean by are locations designated to provide services that are ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File C. 144 outside the scope of this ITN? Are you asking what other services outside the scope of the ITN are provided at vendor State of Florida locations? 145 146 147 148 149 150 151 152 ITN Section 2.12 Experience Question #2 When saying ability to meet a variety of client needs as opposed to specializing in a specific service area, are you asking to demonstrate ability in response to this question across all services listed in Section 6.3 and Section 6.4? ITN Section 2.12 Experience Question #2 How does the government domain (i.e., administration, health, human services, public safety, education, courts, etc.) in which these services are provided factor into the evaluation, if at all? ITN Section 2.12 Experience Question #5 Can you clarify what is meant by demonstrate the effectiveness of their methodology for determining the appropriate number of staff to assign to each project? ITN Section 2.12 Experience Question #6 How would you evaluate vendors that do not require subcontractors to complete their work versus vendors that do require subcontractors to complete their work? ITN Section 2.12 Experience Question #6 Are you asking about our ability to complete work as required by customers or about our ability to secure subcontractors? ITN Section 2.12 Personnel Qualifications Question #2 What specific certifications and credentials would you expect to see for Category 1 Management Consulting Services? ITN Section 2.12 Project Workload Question #2 Regarding File Project Workload Question #2, because workload is function of services delivered for customers simultaneously and workload is not yet known because this is a master contract, how do you distinguish an excellent, acceptable, and poor response for this question? Section 2.13 Pricing Response Evaluation In reviewing the Pricing evaluation model contained in section 2.13 of the solicitation it is the State s intent to divide pricing scores into quartiles and assign a point value by quartile. In the example provided, the highest quartile evaluated received a point value of zero. Would the state consider modifying the model to make the points per quadrant less graduated? ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File B. ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File B. ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File B. ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File B. ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File B. ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File B. ITN Section 2.12 contains information that will assist the evaluators in assessing the Respondent's Reply in File C. No.