texas health

Texas Health & Human Services Commission

Albert Hawkins, Executive Commissioner

Request for Proposals for

Actuarial Consulting Services

RFP No. 529-04-331

Date of Release: June 21, 2004

________________________________________________________________

Texas Health & Human Services

Commission RFP No. 529-04-331

Date of Release: July 9, 2004

Notice of Intent to Propose

Any vendor that intends to submit a proposal is required to submit this form.

Name of Respondent or Joint Respondents: ____________________________

________________________________________________________________

Contact Person: __________________________ Title: ___________________

Mailing Address: _________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

Telephone: _____________________________ Fax: ____________________

E-mail Address: ___________________________________________________

Please return no later than 4:00 PM CENTRAL TIME on July 30, 2004 to: Alice Newmann, Project Manager

Texas Health and Human Services Commission

1100 West 49th Street

Mail Code: Braker-H-340

Austin, Texas 78756

Fax: (512) 491-1972

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Section 1 – General Information HHSC RFP No. 529-04-331

Actuarial Consulting Services RFP

Notice of Intent to Propose ....................................................................... 2

1. GENERAL INFORMATION...........................................................................5 1.1 Mission Statement ................................................................................................. 5 1.2 Mission Objectives................................................................................................. 5 1.3 Background ........................................................................................................... 5 1.4 Strategic Elements ................................................................................................ 5 1.5 Basic Philosophy: Contracting for Results ........................................................... 6 1.6 External Factors .................................................................................................... 6 1.7 Legal and Regulatory Constraints ......................................................................... 7 1.8 HHSC Point of Contact.......................................................................................... 8 1.9 Project Timeline..................................................................................................... 9 1.10 Communications Regarding This Procurement..................................................... 9 1.11 RFP Cancellation/Non-Award.............................................................................. 10 1.12 Right to Reject Proposals or Portions of Proposals ............................................ 10 1.13 Vendor Protest Procedures ................................................................................. 10 2. MISSION RESULTS/SCOPE OF WORK....................................................12 2.1 Project Scope ...................................................................................................... 12 2.2 Performance Measures and Associated Remedies ............................................ 13 2.3 Project Schedule ................................................................................................. 15 3. GENERAL INSTRUCTIONS AND RESPONSE REQUIREMENTS ...........16 3.1 Notice of Intent to Propose.................................................................................. 16 3.2 Vendor Conference ............................................................................................. 16 3.3 Vendor Questions and Comments ...................................................................... 16 3.4 Modification or Withdrawal of Proposal ............................................................... 17 3.5 News Releases.................................................................................................... 18 3.6 Incomplete Proposals .......................................................................................... 18 3.7 State Use of Vendor Ideas .................................................................................. 18 3.8 Property of HHSC................................................................................................ 18 3.9 Additional Information.......................................................................................... 18 3.10 Instructions for Submitting Proposals.................................................................. 19 3.11 Format and Content............................................................................................. 19 3.12 Multiple Responses ............................................................................................. 25 3.13 Joint Proposals .................................................................................................... 25 3.14 Texas Public Information Act............................................................................... 25 4. Historically Underutilized Business Participation..................................27 4.1 Introduction.......................................................................................................... 27

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4.2 HUB Subcontracting Plan (HSP) Procedures ..................................................... 28 4.3 If the Respondent Intends to Subcontract ........................................................... 29 4.4 If the Respondent Does Not Intend to Subcontract............................................. 32 4.5 Evaluation of the HSP ......................................................................................... 32 5. Evaluation ..................................................................................................33 5.1 Evaluation of Proposals....................................................................................... 33 5.2 Evaluation Criteria ............................................................................................... 33 5.3 Initial Compliance Screening............................................................................... 34 5.4 Oral Presentations and Site Visits....................................................................... 34 5.5 Competitive Field Determinations ....................................................................... 34 5.6 Discussions with Respondents............................................................................ 35 5.7 Best and Final Offers........................................................................................... 35

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1. GENERAL INFORMATION

1.1 Mission Statement Texas Health and Human Services Commission’s (HHSC) mission in this procurement is

to obtain the services of a qualified vendor who can assist the State by producing quality

Actuarial Consulting Services to provide analysis, opinions, and fiscal calculations on

services provided by HHSC programs to Medicaid and CHIP clients.

1.2 Mission Objectives HHSC intends to contract with a vendor who will provide ongoing actuarial consulting

services (Services) as described in Section 2 of this RFP. The Services will be provided

on an as-needed basis.

1.3 Background 1.3.1 Overview of the Health and Human Services Commission

HHSC was created in 1991 to oversee and coordinate the planning and delivery of

health and human services programs in Texas. It is established pursuant to Chapter

531, Texas Government Code, and is responsible for oversight of Texas Health and

Human Services agencies (HHS agencies). The chief executive officer of the

Commission is Albert Hawkins, Executive Commissioner of Health and Human Services.

1.3.2 Project Overview The Center for Medicaid and Medicare Statistics requires an external actuary who is a

Member of the American Academy of Actuaries certify that HHSC’s HMO capitation

rates are actuarially sound. In addition, the external actuary is used to provide a second

opinion on forecasts and other budgetary matters. Actuaries are used for projects

involving specialized analyses and to provide additional resources as needed.

1.4 Strategic Elements

(a) Contract Term

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http://www.capitol.state.tx.us/statutes/go/go0053100toc.html

http://www.capitol.state.tx.us/statutes/go/go0053100toc.html



HHSC will award a contract for a period of two years. HHSC will have the option to

renew or extend the term of the contract for up to three one-year periods as necessary

to complete the mission of this procurement.

(b) Contract Price/Type HHSC will award a fixed hourly rate contract for the Services described in this RFP. The

Services shall be provided and invoiced on an hourly basis.

(c) HHSC’s Uniform Contract Terms and Conditions HHSC’s Uniform Contract Terms and Conditions, Version 1.3 (“Uniform Terms and

Conditions”) will apply to the contract(s) awarded as a result of this procurement. The

Uniform Terms and Conditions are located on HHSC’s website under the “Business

Opportunities” link.

One or more of the “Special Terms” located in Article 16 of the Uniform Contract Terms

and Conditions may apply to the contract awarded as a result of this procurement.

HHSC reserves the right to negotiate additional contract terms and conditions.

1.5 Basic Philosophy: Contracting for Results HHSC’s fundamental commitment is to contract for results. A successful result is

defined as the generation of defined, measurable, and beneficial outcomes that support

HHSC’s Missions and Objectives and satisfy the contract requirements. This RFP

describes what is required of the contractor in terms of performance measures and

outcomes, and places the responsibility for how it is accomplished on the contractor.

1.6 External Factors Respondents should be aware that external factors might affect the project, including

budgetary and resource constraints. Any contract resulting from this procurement is

subject to the availability of state and federal funds. As of the issuance of this RFP,

budgeted funds are available to reasonably fulfill the requirements of this RFP. If,

however, funds become unavailable, HHSC reserves the right to withdraw this RFP or

terminate the resulting contract without penalty.

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1.7 Legal and Regulatory Constraints

(a) Delegation of Authority Respondents should be aware that state and federal law generally limit HHSC’s ability to

delegate certain decisions to a contractor. Specifically, HHSC may not delegate certain

functions to a contractor, including but not limited to:

• Policy-making authority; and

• Final decision-making authority regarding acceptance of contracted services.

(b) Conflicts of Interest Respondents may not have personal or business interests that would present an actual,

potential, or apparent conflict of interest with respect to this procurement and the

performance of the resulting contract. For purposes of this RFP, a conflict of interest is

any set of facts or circumstances that, in HHSC ‘s determination, compromises, appears

to compromise, or may reasonably compromise the respondent’s fairness,

independence or objectivity.

Respondents must disclose any potential conflicts or provide a statement acknowledging

that no actual or potential conflicts of interest exist with respect to this procurement and

the resulting contract. If selected for contract award, the respondent will be under a

continuing duty to notify HHSC of any actual or potential conflicts of interest that may

develop during the course of the contract and may not engage in conduct that will create

a reasonable appearance of impropriety.

HHSC is obligated by state and federal law to ensure a level playing field in the award of

the contract. HHSC has implemented an aggressive policy concerning actual or

potential conflicts of interest to ensure fair and open competition, and has included

language concerning actual and potential conflicts of interest in Article 12 of its Uniform

Terms and Conditions. Respondents must carefully review and understand this

language when developing proposals.

(c) Former Employees of a State Agency Respondents must disclose any past employment of its employees or its subcontractors’

employees by HHSC or another Texas State agency, including a description of:

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• The nature of the previous employment with HHSC or the other state agency;

• The date the employment terminated; and

• The annual rate of compensation for the employment at the time of

termination.

(d) Interpretive Conventions Whenever the terms “shall,” “must,” “or “is required” are used in this RFP in conjunction

with a specification or performance requirement, the specification or requirement is

mandatory on the potential vendor. A respondent’s failure to address or meet any

mandatory requirement in its proposal will be cause for rejection of the proposal.

Whenever the terms “can,” “may,” or “should” are used in this RFP in conjunction with a

specification or performance requirement, the specification or performance requirement

is a desirable, but not mandatory, requirement. Accordingly, a respondent’s failure to

address or provide any items so referred to will not be the cause for rejection of the

proposal, but will likely result in a less favorable evaluation of the proposal.

1.8 HHSC Point of Contact

The sole point of contact for inquiries concerning this RFP is:

Alice Newmann, Project Manager


1100 West 49th Street

Austin, Texas 78756

Mail Code: Braker H-340

(512) 491-1315

Fax (512) 491-1972

mailto: [email protected]

The physical address for overnight, commercial and hand deliveries is:


c/o Alice Newmann, Project Manager

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mailto:[email protected]



11209 Metric Blvd.

Building H, Suite A

Austin, TX 78758

(512) 491-1315

All communications relating to this RFP must be directed to the HHSC contact person

named above. All other communications between a respondent and HHSC staff

concerning this RFP are prohibited. In no instance is a respondent to discuss cost

information contained in a proposal with the HHSC point of contact or any other staff

prior to proposal evaluation. Failure to comply with this section may result in HHSC’s

disqualification of the proposal.

1.9 Project Timeline

Procurement Schedule

RFP Release Date July 9, 2004

Vendor Conference July 20, 2004

Vendor Questions Due July 21, 2004

Notice of Intent to Propose Due July 30, 2004

HHSC Responses to Vendor Questions Posted August 3, 2004

Vendor Proposals Due August 12, 2004

Deadline for Withdrawal of Proposals August 12, 2004

Tentative Award Announcement August 31, 2004

Anticipated Contract Start Date September 1, 2004

1.10 Communications Regarding This Procurement

HHSC will post all official communications regarding this procurement on its website,

including the notice of tentative award. In addition, HHSC reserves the right to amend

this RFP at any time prior to the proposal submission deadline. Any changes,

amendments, or clarifications will be made in the form of responses to vendor questions,

amendments, or addendum issued by HHSC. Vendors should check HHSC’s website

frequently for notice of matters affecting the procurement.

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1.11 RFP Cancellation/Non-Award HHSC reserves the right to cancel this RFP, or to make no award of a contract pursuant

to this RFP, if HHSC determines that such action is in the best interest of the State of

Texas.

1.12 Right to Reject Proposals or Portions of Proposals HHSC may, in its discretion, reject any and all proposals, or portions of proposals,

submitted in response to this RFP.

1.13 Vendor Protest Procedures

Texas Administrative Code, Title 1, Chapter 392, Subchapter C outlines HHSC’s vendor

protest procedures. A respondent may protest HHSC’s tentative award of a contract.

Such protest must be in writing and signed by the protestant or the protestant’s

authorized representative.

The protest must state the protestant’s name and the specific award that is being

protested, the legal and factual basis for the protest with specific supporting information

and when applicable, how the protestant alleges the award or tentative award violated

HHSC’s rules, state or federal laws, or regulations governing the procurement. The

protest must state an explanation of the facts in disagreement and the subsequent

action the protestant is requesting.

The protest must be received by HHSC’s official point of contact no later than seven (7)

calendar days following the announcement of the tentative award of the contract on

HHSC’s website. Failure to comply with the foregoing timeframe will result in HHSC’s

dismissal of the protest. The protest must be delivered by hand, certified mail return

receipt requested, facsimile or other verifiable delivery service and be limited to matters

relating to the protestant’s qualifications, the suitability of the goods or services offered

by the protestant, or alleged irregularities in the procurement process.

The HHSC division that conducted the procurement will review the protest and the

Division Director will make an initial recommendation to the Executive Commissioner.

The Executive Commissioner will review the protest and Division Director’s

recommendations, and then issue a final determination regarding the protest. HHSC will

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provide the protestant with a written copy of the final determination within thirty days of

receiving the protest, or as soon thereafter as practicable. The Executive

Commissioner’s final determination will be HHSC’s final action on the protest, and the

protestant will have no further administrative recourse.

In the event a written protest to the Tentative Award of the Contract is filed, HHSC will

not proceed with the implementation of the applicable Contract unless the Executive

Commissioner determines that proceeding with the execution of the Contract is in the

best interest of the State of Texas due to a bona fide emergency, as determined by the

Executive Commissioner, or if state or federal law requires the award to be completed by

a particular date.

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Section 2 – Mission Results/Scope of Work HHSC RFP No. 529-04-331


2. MISSION RESULTS/SCOPE OF WORK 2.1 Project Scope 2.1.1 Actuarial Services

Contractor is required to provide actuarial services (Services) as requested by HHSC for

the Texas Medicaid and CHIP programs. The Services include, but are not limited to:

PSC-01 Provide analysis of program experience to produce estimates of

experience to date and projection of future experience based on

information provided by HHSC and its Medicaid and CHIP contractors.

PSC-02 Contractor must have the ability to guarantee and maintain confidentiality

of Medicaid recipient information and other documents provided by

HHSC.

PSC-03 Perform calculations of managed care capitation rates.

PSC-04 Perform cash flow analyses of program expenditures.

PSC-05 Assist with preparation of requests for proposals, evaluation of

competitive bids and contract negotiation.

PSC-06 Provide actuarial opinion and fiscal impact analysis of proposed program

changes.

PSC-07 Provide actuarial opinion and fiscal impact analysis for proposed provider

rate methodologies.

PSC-08 Perform special actuarial projects as assigned.

PSC-09 Must participate in meetings with HHSC and other agency staff, HHSC

contractors, Legislative committees and CMS representatives as needed.

Meetings are face-to-face and may be scheduled on very short notice.

PSC-10 Provide approximately 2,500 or more hours of actuarial services per year.

(HHSC does not guarantee any specific number of hours of work under

the RFP or any resulting contract.)

PSC-11 Provide within one-week, or longer if approved by HHSC, a subcontract

for actuarial expertise in specialty areas. Examples of recent HHSC

needs in specialty areas include disease management, preferred drug

lists and risk adjustment. Subcontractor selection will be subject to HHSC

approval. HHSC may elect at any time to separately procure services for

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specialty areas even if there is a subcontract in place.

PSC-12 Knowledge of Center for Medicare and Medicaid Services regulations for

determining rates including Medicaid capitation rates.

PSC-13 Provide complete explanations of all calculations and provide all formulas

to HHSC or its contractors.

PSC-14 Make effective presentations on analyses performed as requested.

PSC-15 Request for work on legislative fiscal notes must be completed within

timeframe negotiated with HHSC.

2.1.2 Actuarial Personnel The Contractor must provide at least four actuaries that are able to provide the following

services.

APC-01 The principle actuary must be a Fellow in the Society of Actuaries (FSA)

and a Member of the American Academy of Actuaries (MAAA) with

substantial experience with a Medicaid and/or CHIP program.

APC-02 One actuary must be both FSA and MAAA and have substantial

experience with a Medicaid and/or CHIP program.

APC-03 The other two actuaries must be either FSA or MAAA with at least a

working knowledge of a Medicaid and/or CHIP program.

APC-04 Non-actuaries must work under the supervision of the principle actuary to

perform actuarial work.

APC-05 At least one actuary must be available either on site in person or by

phone within two hours every Monday through Friday to discuss actuarial

matters and work on pressing issues.

APC-06 At least one actuary must be available on site in person within one hour

seven days a week during a Legislative Session to discuss and testify on

actuarial matters and work on pressing issues.

2.2 Performance Measures and Associated Remedies

PMAR-01 The Vendor must complete all requested analyses within the annual

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budget. The Vendor will judiciously assign tasks to allow for the

maximum hours of service per contract year while ensuring timeliness

and quality.

Action: The State may assess up to $100.00 per day for each day

services are not available because the contract budget has been

exceeded.

PMAR-02 The Vendor must complete the Services within the negotiated timeframes

for each project.

Action: The State may assess up to $100.00 per day for each calendar

day after the schedule date.

PMAR-03 The Vendor must provide sound analysis for actuarial opinions and fiscal

impact pertaining to program changes, proposed provider rate

methodologies and special projects.

Action: The State may assess up to $500 or more for unsound actuarial

opinions and fiscal impact.

PMAR-04 The Vendor must provide at least one actuary who is available in person

within two hours every Monday through Friday to discuss actuarial

matters and work on pressing issues.

Action: The State may assess up to $100.00 per calendar day for every

day an actuary is not available within this time frame.

PMAR-05 The Vendor must provide at least one actuary who is available in person

within one hour seven days a week during a Legislative Session to

discuss and testify on actuarial matters and work on pressing issues.


day an actuary is not available within this time frame.

PMAR-06 The Vendor must assist with preparation of requests for proposals,

evaluation of competitive bids and contract negotiation for HHSC


day an actuary is not available.

PMAR-07 The Vendor must provide subcontract for actuarial expertise in specialty

areas within negotiated time frames.

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day the Vendor does not retain a subcontractor for actuarial expertise in

specialty areas by the negotiated time frame.

2.3 Project Schedule HHSC will provide the Vendor with work requests on an as needed basis. The timelines

for the work requests will vary by project, depending on the nature of the request. The

Vendor must respond to each work request and its associated timelines.

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Section 3 – General Instructions and Response Requirements HHSC RFP No. 529-04-331


3. GENERAL INSTRUCTIONS AND RESPONSE REQUIREMENTS

3.1 Mandatory Notice of Intent to Propose A prospective vendor must submit a Notice of Intent to Propose (see page 2) to the

HHSC Point of Contact identified in Section 1.8 no later than July 30, 2004 at 4:00 pm

Central time. This is a mandatory requirement. A vendor that does not submit a notice

of intent to propose by the date and time prescribed may not submit a proposal;

however, a vendor that submits a notice of intent to propose is not required to submit a

proposal.

3.2 Vendor Conference HHSC will hold a vendor conference on July 20, 2004 from 1:30 to 4:00 PM in the Lone

Star Conference Room at the Braker Center located at 11209 Metric Blvd, Building H,

Suite A, in Austin, Texas. Attendance at the conference is strongly recommended, but is

not required.

Vendors may email questions for the conference to the HHSC Point of Contact (see

Section 1.8) no later than five (5) days before the conference. HHSC will also provide

vendors the opportunity to submit written questions at the conference. All questions

submitted by email or at the conference must reference the appropriate RFP page and

section number. Although HHSC may provide tentative responses to questions at the

conference, responses are not official until they are posted on the HHSC website.

HHSC reserves the right to amend answers on the website prior to the proposal

submission deadline.

3.3 Vendor Questions and Comments All questions and comments regarding this RFP must be submitted electronically to the

e-mail address contained in Section 1.8 (HHSC Point of Contact). All questions must

reference the appropriate RFP page and section number. In order to receive a

response, vendor questions and comments must be received no later than the deadline

set forth in Section 1.9 (Project Timeline). Inquiries received after the due date may be

reviewed by HHSC but will not receive a response. Any clarifications, addenda, or

amendments, whether made as a result of a potential vendor’s written question or

otherwise, will be posted on the HHSC website.

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A respondent must inquire in writing as to any ambiguity, conflict, discrepancy,

exclusionary specification, omission or other error in this RFP prior to submitting a

proposal. If a respondent fails to notify HHSC of any error, ambiguity, conflict,

discrepancy, exclusionary specification or omission, the respondent shall submit a

proposal at its own risk and, if awarded the contract, shall have waived any claim that

the RFP and contract were ambiguous and shall not contest HHSC’s interpretation. If no

error or ambiguity is reported by the deadline for submitting written questions, the

respondent shall not be entitled to additional compensation, relief or time by reason of

the error or its later correction.

HHSC will post answers on its website to all written questions received by the deadline

for submitting written questions. HHSC reserves the right to amend answers prior to the

proposal submission deadline.

3.4 Modification or Withdrawal of Proposal Proposals may be withdrawn from consideration at any time prior to the proposal

submission deadline. A written request for withdrawal must be made to the HHSC Point

of Contact (Section 1.8).

A respondent has the right to amend its proposal at any time and to any degree by

written amendment to the HHSC Point of Contact prior to the proposal submission

deadline. HHSC reserves the right to request an amendment to any part of the proposal

during negotiations.

HHSC reserves the right to waive minor informalities in a proposal and award a contract

that is in the best interests of the State of Texas. A minor informality may include, but is

not limited to, a minor irregularity or error such as a clerical error in the production of

copies of the proposal. When HHSC determines that a proposal contains a minor

informality, HHSC shall notify the respondent of the irregularity or error and shall provide

the respondent the opportunity to correct.

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3.5 News Releases A respondent may not issue press releases or provide any information for public

consumption regarding its participation in this procurement without specific, prior written

approval of HHSC.

3.6 Incomplete Proposals

HHSC will reject without further consideration a proposal that does not include a

complete, comprehensive, and total solution as requested by this RFP.

3.7 State Use of Vendor Ideas

HHSC reserves the right to use any and all ideas presented in any proposal unless the

respondent presents a legal case citing ownership of the respondent’s intellectual

property. A respondent may not object to the use of ideas that are not the respondent’s

proprietary information and so designated in the proposal that:

• Were known to the State before submission of the proposal;

• Were in the public domain through no fault of the State; or

• Became properly known to the State after submission of the proposal through

other sources or through acceptance of the proposal.

3.8 Property of HHSC All products produced by a respondent as a result of this RFP or a resulting contract,

including without limitation, plans, designs, software and other deliverables, will become

the sole property of HHSC.

3.9 Additional Information By submitting a proposal, the respondent grants HHSC the right to obtain information

from any lawful source regarding: (i) the past business history, practices, conduct and

ability of a respondent to supply goods, services and requirements; and (ii) the past

business history, practices, conduct and ability of the respondent’s directors, officers and

employees. By submitting a proposal, the respondent generally releases from liability

and waives all claims against any party providing information about the respondent at

HHSC’s request. HHSC may take such information into consideration in evaluating

proposals.

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3.10 Instructions for Submitting Proposals 3.10.1 Number of Copies

Submit one (1) original and 6 copies of the proposal. An authorized representative of

the respondent must sign the original in ink. In addition, submit one electronic copy of

the proposal on a floppy disk or compact disk compatible with MSOffice 97 or later. If

there are any disparities between the contents of the printed proposal and the electronic

proposal, the contents of the printed proposal will take precedence.

3.10.2 Submission

Submit all copies of the proposal to the HHSC Point of Contact (Section 1.8) no later

than 4:00 PM Central Time on August 12, 2004.

3.10.3 Additional Requirements

All proposals must be:

• Clearly legible;

• Sequentially page-numbered;

• Organized in the sequence outlined in Section 3.11;

• Bound in a notebook or cover;

• Responsive to the requirements of this RFP;

• Typed, double-spaced on 8½” x 11” paper;

• In Arial or Times New Roman font, size 12 for normal text, no less than size 10

for tables, graphs and appendices; and

• No more than 50 total pages, excluding required forms and resumes.

Proposals should not include non-requested materials or pamphlets.

3.11 Format and Content The proposal must consist of 2 parts:

• Part 1 – Business Proposal; and

• Part 2 – Cost Proposal.

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3.11.1 Part 1 -- Business Proposal

Part 1, Business Proposal, must include:

• Section 1 – Transmittal Letter;

• Section 2 – Executive Summary;

• Section 3 – Corporate Background and Experience;

• Section 4 – Assumptions;

• Section 5 – Appendices;

• Section 6 – HUB Subcontracting Plan;

• Section 7 – Certifications and Other Required Forms.

3.11.1.1 Section 1 -- Transmittal Letter

Respondents must include a transmittal letter printed on official company letterhead. An

individual authorized to legally bind the respondent must sign the letter in ink.

The transmittal letter must include:

• Disclosure of all pending, resolved, or completed litigation, mediation,

arbitration, or other alternate dispute resolution procedures involving the

respondent (including subcontractors, subsidiaries, or affiliates) within the

past 24 months.

• Disclosure of all affiliations or ownership relationships (at least 5%).

• A description of any personal or business interest that may present an actual,

potential or apparent conflict of interest with the performance of the contract

(see Section 1.7(b)), and an explanation of how the respondent can assure

HHSC that these relationships will not create a conflict of interest.

• A description of the past employment by HHSC or another Texas State

agency in accordance with the requirements of Section 1.7(c).

• A complete list of all exceptions, reservations and limitations to the terms

and conditions of the RFP, including HHSC’s Uniform Contract Terms and

Conditions.

• Identify the person who will be the primary point of contact between the

vendor and HHSC, including the individual’s name, address, telephone

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number(s) email address and fax number.

• Include a statement that all prices proposed have been arrived at

independently, without, for the purpose of restricting competition, any

consultant, communication, and/or agreement with any other vendor or

competitor relating to the cost proposal, the intention to submit a proposal or

the methods or factors used to calculate the price proposal.

• Identify any subcontractor(s) the contractor proposes to employ for the

duration of the contract.

• A certification that no attempt has been made or will be made by the Vendor

to induce any other company or individual to submit or not submit a proposal

for the purpose of restricting competition. As required by Texas Government

Code §2155.005

3.11.1.2 Section 2 -- Executive Summary

In this section, the respondent should condense and highlight the content of the

Business Proposal to provide HHSC with a broad understanding of the respondent’s

approach to meeting the RFP’s business requirements. The summary must

demonstrate an understanding of HHSC’s goals and objectives for this procurement.

3.11.1.3 Section 3 -- Corporate Background and Experience

This section details the respondent’s corporate background and experience. If the

respondent proposes to use subcontractor(s), it must describe any existing or ongoing

relationships with such subcontractor(s), including project descriptions. The section

should include the following information.

3.11.1.3.1 Contact Information.

• Respondent’s full organization, company or corporate name;

• Headquarter address;

• Type of ownership (e.g. partnership, corporation);

• If respondent is a subsidiary or affiliate, the name of parent organization;

• State where the respondent is incorporated or otherwise organized to do

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business;

• Federal taxpayer identification number;

• Name and title of person that will sign the contract; and

• Name and title of person responsible for responding to questions regarding

the proposal, with telephone number, facsimile number and email address.

3.11.1.3.2 Corporate Background and Experience.

Describe the respondent’s corporate background as it relates to projects similar

in scope and complexity to the project described in this RFP. If the proposal

includes the use of subcontractors, include a similar description of the

subcontractor’s corporate background.

Include a description and at least three (3) references related to projects

performed within the last five (5) years that demonstrate the respondent’s ability

to perform the required RFP services. Include contract dates and customer

points of contact, address, telephone number and e-mail, if available, so that

HHSC can obtain confirmation of respondent’s performance. The respondent

must explain whether work was performed as a prime contractor or

subcontractor. If the work was performed as a subcontractor, the respondent

must describe the scope of subcontracting activities.

3.11.1.3.3 Resumes.

Identify and describe the respondent’s proposed labor skill set and provide

resumes of all proposed Key Personnel (as defined by the respondent), including

FSA and MAAA memberships as required by this RFP. Resumes must

demonstrate experience germane to the position proposed. Resumes should

include work on projects cited under the respondent’s corporate experience, and

the specific functions performed on such projects. Each resume should include

at least three (3) references related to projects. References may not be

respondent’s employees.

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3.11.1.3.4 Financial Capacity Financial Statements The Vendor must submit a current financial statement plus the previous two

years of audited financial reports, including the United State Securities and

Exchange Commission, Form 10K, Annual Report pursuant to Section 13 or

15(d) of the Securities Exchange Act of 1934, if applicable. The vendor also

must submit the most recent annual statement filed including all supplements,

management, discussion and analysis and actuarial opinion. If a Vendor does

not have two years of audited financial statements, the Vendor may submit only

those audited financial statements that are available and indicate in the proposal

the reason for not submitting the required audited financial statements. If the

Vendor cannot submit financial statements, they must submit alternative

evidence of financial stability approved by HHSC.

If the Vendor is either substantially or wholly owned by another corporate or other

entity, the Vendor must also include the most recent audited detailed financial

report of the parent organization and a statement that the parent organization will

unconditionally guarantee performance by the Vendor in each and every term,

covenant, and condition of any contract as executed by the parties.

If any change of ownership of the company is anticipated during the 12 months

following the proposal due date, the Vendor must describe the circumstances of

such change and indicate when the change is likely to occur.

3.11.1.4 Section 4 -- Assumptions

State any business, economic, legal, programmatic, or practical assumptions that

underlie the respondent’s response to the Business Proposal.

3.11.1.5 Section 5 -- Appendices

Include any appendices to the respondent’s Business Proposal.

3.11.1.6 Section 6 -- HUB Subcontracting Plan

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Attach the respondent’s HUB Subcontracting Plan. Instructions for completing

this requirement are included in Article 4.

3.11.1.7 Section 7 – Certifications and Other Required Forms In addition to the HUB Subcontracting Plan described in Article 4, respondents

must complete the following required forms:

• Child Support Certification;

• Debarment, Suspension, Ineligibility, and Voluntary Exclusion for Covered

Contracts Certification;

• Federal Lobbying Certification;

• Nondisclosure Statement; and

• Proposer Information

The required forms are located on HHSC’s website, under the “Business

Opportunities” link HUB Required Forms. Proposals that do not include all

required forms and sections are subject to rejection. HHSC encourages

respondents to carefully review all of these forms and submit questions

concerning their completion prior to the deadline for submitting questions

relating to this RFP (see Section 1.9).

3.11.2 Part 2 -- Cost Proposal The Cost Proposal must be placed in a separate, sealed package, clearly marked with

the respondent’s name, the RFP number, and the RFP submission date. An individual

authorized to legally bind the respondent must sign the Cost Proposal in ink.

Respondents must base their Cost Proposals on the Scope of Work described in Article

2. This section should include any business, economic, legal, programmatic, or practical

assumptions that underlie the Cost Proposal.

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Respondents may separately identify cost saving and cost-avoidance methods and

measures and the effect of such methods and measures on the Cost Proposal and

Scope of Work.

3.12 Multiple Responses A respondent may submit only one proposal. This means that a respondent may submit

a proposal on its own behalf or submit a proposal with one or more respondents as a

joint proposal (see Section 3.13). If a respondent submits more than one proposal, all

proposals from that respondent may be rejected.

This requirement does not limit a subcontractor’s ability to collaborate with more than

one respondent.

3.13 Joint Proposals

Two or more companies may join together and submit a Joint Proposal in response to

this RFP. A Joint Proposal must completely define the responsibilities each company

proposes to undertake. Also, the Joint Proposal must designate a primary respondent

who will be responsible for the delivery of all goods, services and requirements as

specified in the RFP, and a single authorized official from the primary respondent to

serve as the sole point of contact between HHSC and the Joint Proposals. An

authorized agent or officer of each company must sign any contract resulting from a

Joint Proposal. Each company included in the submission of a Joint Proposal will be

jointly and severally liable during the term of the contract.

3.14 Texas Public Information Act A proposal submitted to HHSC in response to this RFP is subject to public disclosure

under the Texas Public Information Act (the Act), Texas Government Code, Chapter

552, unless the proposal, or any part of the proposal, can be shown to fall within one or

more of the exceptions to required public disclosure listed in the Act. If a respondent

believes that parts of a proposal are exceptions from required public disclosure under

the Act, the respondent must specify those parts and the exception(s) that it believes

apply, with specific detailed reasons. HHSC will process any request for information

comprising all or part of the respondent’s proposal in accordance with the procedures

prescribed by the Act. A respondent should consult the Attorney General’s website

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(www.oag.state.tx.us) for information concerning the application of the Act’s provisions

to proposals and potential proprietary information.

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Section 4 – Historically Underutilized Business Participation HHSC RFP No. 529-04-331


4. Historically Underutilized Business Participation

Note to All Respondents: Texas law provides that a proposal filed in response to this

RFP that does not contain a historically underutilized business (HUB) subcontracting

plan is non-responsive, in accordance with Texas Government Code § 2161.252.

4.1 Introduction 4.1.1 This section sets forth requirements that every proposal must meet in order to comply

with state laws and HHSC’s rules regarding HUBs. Respondents should read HHSC’s

Policy on the Utilization of Historically Underutilized Businesses (HUBs) and this article

carefully before preparing a proposal. HHSC is committed to promoting full and equal

business opportunities for all businesses in State contracting in accordance with the

goals specified in the State of Texas Disparity Study. HHSC has adopted administrative

rules and policies relating to HUBs and encourages the use of HUBs through race,

ethnic, and gender-neutral means. Pursuant to HHSC’s HUB rules, Texas Administrative

Code Title 1, Chapter 392, Subchapter J, and pursuant to §§2161.181-182, Texas

Government Code, HHSC is required to make a good faith effort to increase HUB

participation in contracts for construction, service (including professional and consulting

services), and commodity contracts. HHSC may accomplish the goal of increased HUB

participation by contracting directly with HUBs or indirectly through subcontracting

opportunities.

4.1.2 The statewide HUB participation goals, set by the Texas Building and

Procurement Commission (TBPC) as a result of the State of Texas Disparity Study are

classified under the following categories:

(1) Heavy construction other than building contracts 11.9%;

(2) Building construction 26.1%;

(3) Special trade construction contracts 57.2%;

(4) Professional services contracts 20%;

(5) All other services contracts 33%;

(6) Commodities contracts 12.6%.

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http://info.sos.state.tx.us/pls/pub/readtac$ext.ViewTAC?tac_view=5&ti=1&pt=15&ch=392&sch=J&rl=Y

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HHSC and its contractors shall make a good faith effort to meet or exceed the HUB

participation goals listed above for each fiscal year by maximizing the inclusion of

certified HUBs in the procurement process.

The goods and/or services requested under this RFP are classified under the

“professional services contracts” category; therefore the HUB participation goal is 20%

4.1.3 HHSC’s policy on the utilization of HUBs businesses is related to all contracts with an

expected value of $100,000 or more. HHSC may, at its discretion, require contractors to

report HUB utilization in contracts with an expected value of less than $100,000.

4.2 HUB Subcontracting Plan (HSP) Procedures 4.2.1 The following procedures are specified by HHSC’s administrative rules relating to HUBs,

which adopt the Texas Building and Procurement Commission’s (TBPC’s) HUB rules. If

there are any discrepancies between HHSC’s administrative rules and this RFP, the

rules shall take priority.

4.2.2 HHSC has determined that subcontracting opportunities are probable under this RFP.

Therefore, HHSC requires the submission of a HUB Subcontracting Plan (HSP) as a

part of each proposal. The HSP, if accepted by HHSC, will become a provision of any

contract awarded as a result of this RFP. Proposals that do not include a HSP, or

proposals that contain a HSP that HHSC determines was not developed in good faith,

shall be rejected as a material failure to comply with the specifications set forth in this

RFP.

4.2.3 To search for potential HUB vendors who may perform subcontracting opportunities,

respondents may refer to the Texas Building and Procurement Commission’s

Centralized Master Bidders List HUB Directory, which is found at

http://www.tbpc.state.tx.us/cmbl/cmblhub.html Class and item codes for potential

subcontracting opportunities under this RFP, include, but are not limited to:

Commodity Class 946 Financial Services

Item Number 12: Actuarial Services and Retirement Planning

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4.2.4 In order for HHSC to determine that a good faith effort was made, each respondent shall send notices to three (3) or more HUBs for each area that the respondent plans to subcontract. Respondents are not limited to the list of subcontracting

opportunities identified above, and may identify additional areas of subcontracting.

4.2.5 A list of HUB vendors from the TBPC’s Centralized Master Bidders List (CMBL) or other

related listings that may perform the subcontracting opportunities is located at

www.tbpc.tx.us/cmbl/cmblhub.html. The listing of potential subcontractors is for

informational purposes only. HHSC does not endorse, recommend nor attest to the

capabilities of any company or individual listed. This listing of certified HUBs is subject

to change, therefore respondents are encouraged to use the TBPC’s website to find the

most current listing of certified HUBs. A complete and more updated list of all TBPC

certified HUBs or registered bidders are electronically accessed through the Internet at

http://www.tbpc.state.tx.us. HHSC may provide additional information concerning

HUB certified vendors at the vendor conference.

4.2.6 Each respondent shall rely on the TBPC's CMBL, the HUB Directory, Internet resources,

and other directories as identified by the TBPC or HHSC when searching for HUB

subcontractors. Respondents shall effectively rely on the services of minority, women,

and community organizations, contractor groups, local, state, and federal business

assistance offices, and other organizations that provide assistance in identifying HUBs

or minority-owned businesses able to perform all or select elements of the HSP.

4.2.7 As part of the HSP, HHSC requires each respondent to state in writing whether the

respondent itself is a Texas certified HUB. This information is collected for the purpose

of reporting HHSC’s HUB utilization. However, being certified as a HUB does not exempt

any respondent from complying with the required HSP.

4.3 If the Respondent Intends to Subcontract 4.3.1 Because HHSC has determined that subcontracting opportunities are probable, a

respondent who intends to subcontract any part of the work must include a HSP with its

response. The respondent shall divide the contract work into reasonable lots to the

extent consistent with prudent industry practice. The respondent should identify each

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area of the contract work the respondent plans to subcontract. For each area identified,

the respondent should provide documentation of the notices sent to three or more HUBs

in each of the areas the respondent plans to subcontract.

4.3.2 HHSC’s review of a respondent’s HSP will include but is not limited to the following good

faith effort factors:

(a) Evidence that the respondent advertised subcontracting opportunities in general

circulation, trade association, and/or minority/woman focus media concerning

subcontracting opportunities. The respondent should provide copies of advertising

media used to solicit HUBs.

(b) Evidence that the respondent notified certified HUBs of the work that the

respondent intends to subcontract. The preferable method of notification shall be in

writing. The notice shall, in all instances, include 1) the scope of the work, 2)

information regarding the location to review plans and specifications, 3) information

about bonding and insurance requirements, 4) shall identify a contact person and

5) provide telephone/fax numbers.

(c) Evidence that the notice described above was provided to potential HUB

subcontractors prior to submission of the proposal. Respondent must

demonstrate that it provided potential HUB subcontractors reasonable time to

respond to the notice. “Reasonable time to respond” in this context is no less than

five working days from receipt of notice, unless circumstances require a different

time period, which is determined by HHSC and documented in the procurement

file.

(d) Evidence that, for each area the respondent plans to subcontract, the respondent

provided the notice described above to three or more HUBs that perform the type

of work. Evidence of notice should include official written documentation, (i.e.

phone logs, fax transmittals confirmations, e-mail correspondence confirmation,

certified mail receipts, etc) to demonstrate compliance with the notice required in

this subsection. If HHSC cannot determine good faith effort from the HSP, it may request additional documentation from the Respondent concerning responses received from HUBs and other subcontractors.

(e) Written justification of the selection process if a non-HUB subcontractor is selected

through means other than competitive bidding, or a HUB’s bid is the best value

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response but is not selected. The respondent should explain how it made the

selection.

(f) Evidence that the respondent encouraged a selected non-certified minority or

women-owned business subcontractor to apply for certification by the TBPC in

accordance with TBPC’s HUB procedures set forth in the Texas Administrative

Code, §111.17 (relating to “Certification Process”). The respondent should provide

documentation demonstrating the steps taken to assist non-certified minority or

woman-owned businesses become HUB certified. The respondent should include

the minority or woman-owned business’ name, address, and other related

information with its documentation.

4.3.3 In developing the HSP, respondents are encouraged to identify, as part of the HSP,

multiple subcontractors who are able to perform the work in each area that the

respondent is planning to subcontract. Selecting additional subcontractors for each area

may assist the awarded contractor in making changes to its original HSP, when needed,

and will allow HHSC to approve any necessary changes expeditiously.

4.3.4 The HSP shall include the responses to Section 4.3 and each of the Attachments D-1

and D-2.

4.3.5 Attachment D-1 is the Historically Underutilized Business Letter of Intent, identifying the

HUBs and/or potential contractors/vendors that the respondent will use for

subcontracting opportunities, the expected percentage of work to be subcontracted, and

the approximate dollar value of that percentage of work. (Respondents should use a

separate copy of Attachment D-1 for each subcontractor.) Attachment D-2 is the

Determination of Good Faith Effort document, in which the respondent identifies each

HUB it provided notice of subcontracting opportunities. Respondents must submit a copy of each notice with each D-2.

4.3.6 A respondent’s participation in a Mentor Protégé Program under the Texas Government

Code §2161.065, and the submission of a protégé as a subcontractor in the

Respondent’s HSP constitutes a good faith effort for the particular area(s) to be

subcontracted with the protégé. The respondent must attach a copy of its Mentor

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Protégé Agreement that has been approved by a sponsoring state agency and identify each protégé on Attachment D-1.

4.4 If the Respondent Does Not Intend to Subcontract 4.4.1 When HHSC determines that subcontracting opportunities are probable, but the

respondent intends to perform and complete all the subcontracting opportunities, as

identified by HHSC, with its own equipment, supplies, materials and/or employees, the

respondent must nonetheless include a HSP with its response. In this case, the

respondent’s HSP shall include: (1) Attachment E-1, Statement of Intent, attesting that

the respondent does not intend to subcontract any of the services identified by HHSC in

this RFP, and (2) Attachment E-2, Probable Subcontracting, explaining how the

respondent intends to perform the entire scope of work. Upon request, the respondent

shall provide supporting documentation to substantiate the statement/affidavit, which

includes, but is not limited to the following: The respondent shall:

(a) Agree to produce evidence of existing staffing to meet contract objectives.

(b) Agree to supply monthly payroll records showing company staff fully engaged in

the contract.

(c) Agree to periodic on-site reviews of company headquarters or work site where

services are to be performed.

4.5 Evaluation of the HSP 4.5.1 HHSC will review and evaluate the HSP and supporting documentation to determine if

the respondent has made a good faith effort in accordance with HHSC’s HUB rules. If

accepted, the HSP shall become a provision of any contract entered into as a result of

this RFP. No changes shall be made to an accepted subcontracting plan prior to its

incorporation into the contract. If HHSC determines the submitted HSP was not

developed in good faith, HHSC shall treat the lack of good faith as a material failure to

comply with RFP specifications, and HHSC shall reject the proposal and record the

reasons for rejection in the procurement file.

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Section 5 – Evaluation HHSC RFP No. 529-04-331


5. Evaluation

5.1 Evaluation of Proposals HHSC will select the successful vendor through a formal evaluation process. HHSC will

consider capabilities or advantages that are clearly described in the proposal, confirmed

by oral presentations, site visits or demonstrations if required, and verified by information

from reference sources contacted by HHSC. HHSC reserves the right to contact

individuals, entities, or organizations that have had dealings with the respondent or staff

proposed for this effort, whether or not identified in the proposal.

HHSC will more favorably evaluate proposals that offer no or few exceptions,

reservations, or limitations to the terms and conditions of the RFP, including HHSC’s

Uniform Contract Terms and Conditions.

5.2 Evaluation Criteria Selection Criteria: “Demonstrated Competence, Knowledge and Qualifications” HHSC will evaluate proposals for demonstrated competence, knowledge and

qualifications, considering the reasonableness of the proposed fee for services. To

evaluate these criteria, HHSC will consider the following factors, in order of precedence:

• Experience and knowledge providing actuarial analysis for Medicaid/CHIP

programs;

• Reasonableness of the proposed cost;

• Demonstrate knowledge of CMS regulations for determining rates including

Medicaid capitation rates;

• Demonstrate commitment to short time frames and ability to meet HHSC

deadlines;

• Ability to participate in face-to-face meetings with HHSC and other agency

staff, HHSC contractors, Legislative committees and CMS representatives;

• Make effective presentations on analyses performed as requested;

• Ability to comply with HHSC’s Mission Statement and Objectives, and

• Ability to guarantee and maintain confidentiality of Medicaid recipient

information and other documents provided by HHSC;

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If other considerations are equal, HHSC will give preference to an actuarial firm with a

principal place of business in the State of Texas, or a firm who will manage the contract

from an office in Texas.

5.3 Initial Compliance Screening HHSC will perform an initial screening of all proposals received. Proposals that do not

include all required forms and sections are subject to rejection. This is a pass/fail

evaluation.

Additionally, proposals that do not demonstrate a good faith effort to comply with the

HUB Subcontracting requirements, if applicable, will be rejected without further

consideration.

In accordance with Section 3.4, HHSC reserves the right to waive minor informalities in a

proposal and award a contract that is in the best interest of the State of Texas.

5.4 Oral Presentations and Site Visits HHSC may, at its sole discretion, request oral presentations, site visits, and/or

demonstrations from one or more respondents admitted to the field of competition.

HHSC will notify selected respondents of the time and location for these activities, and

may supply agendas or topics for discussion. HHSC reserves the right to ask additional

questions during oral presentations, site visits, and/or demonstrations to clarify the

scope and content of the written proposal, oral presentation, site visit, or demonstration.

The respondent’s oral presentation, site visit, and/or demonstration must substantially

represent material included in the written proposal, and should not introduce new

concepts or offers.

5.5 Competitive Field Determinations HHSC may determine that certain proposals are within the field of competition for

admission to discussions. The field of competition consists of the proposals that receive

the highest or most satisfactory ratings. HHSC may, in the interest of administrative

efficiency, place reasonable limits on the number of proposals admitted to the field of

competition.

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5.6 Discussions with Respondents

HHSC may, but is not required to, conduct discussions with all, some, or none of the

respondents admitted to the field of competition for the purpose of obtaining the best

value for HHSC. HHSC may conduct discussions for the purpose of:

• Obtaining clarification of ambiguities in a proposal;

• Requesting modifications to a proposal; or

• Obtaining a best and final offer.

HHSC may make an award prior to the completion of discussions with all respondents

admitted to the field of competition if HHSC reasonably determines that the award

represents best value.

5.7 Best and Final Offers

HHSC may, but is not required to, permit respondents admitted to the field of

competition to prepare best and final offers. For this reason, respondents are

encouraged to submit original proposals as best and final offers.

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texas health

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joint proposals

portions of proposals

incomplete proposals

project manager texas

proposeany vendor

vendor questions

vendor conference

general informationhhsc