State of Minnesota Agency Minnesota State Retirement System (MSRS) Request for Proposals (RFP) for Infrastructure-as-a-Service Hosting
Project Overview Minnesota State Retirement System (MSRS) requests proposals from vendors for hosting its participant-account system referred to as “Aurora.” Aurora is a custom-built Java application which leverages IBM DB2 to store its data and the IBM Websphere application stack to perform business-critical MSRS functions. Aurora is developed onsite at MSRS, and is currently hosted at the State of Minnesota’s IT agency, MN.IT Services (MN.IT). The goal of this Request for Proposal (RFP) is to find a new vendor to provide third-party Infrastructure-as-a-Service (IaaS) hosting and provide managed services to support that solution. Responders should read the following sections closely. There are multiple RFP exhibits for the responder to complete and complementary information to provide for a complete proposal submission. In addition, there is an RFP schedule to adhere to. Failure to meet schedule dates may result in the respondent being disqualified. This RFP does not obligate the State to award a contract or complete the project, and the State reserves the right to cancel the RFP if it is considered to be in its best interest. Proposals for this RFP are due by July 31, 2015 at 3:00 p.m. Central Time (CT). The project implementation period, including final planning, configuration, testing, and migration to the new host is expected to take fewer than six (6) months, after which with hosting service to continue for the remainder of up to three (3) years, with options to extend an additional two (2) years in increments determined by the State. The total maximum length of a contract under this RFP, including the implementation and hosting period will be a maximum of five (5) years.
MSRS & Aurora Overview MSRS’ mission is to administer financially secure retirement plans, a tax-free health care savings plan, and a low-cost deferred compensation plan. MSRS is responsible for administering ten retirement plans which provide retirement, survivor, and disability benefit coverage for Minnesota state employees as well as employees of the Metropolitan Council and many non-faculty employees at the University of Minnesota. MSRS retirement plans cover over 60,000 active employees and currently pays monthly benefits to over 37,000 retirees, survivors, and disabled employees. MSRS also administers the Minnesota Deferred Compensation Plan (80,000 participants) and the Health Care Savings Plan (100,000 participants). Aurora provides a business-critical function at MSRS because it: • Manages all participant (member) account data, including demographic info on each member, all contributions history that each member made, all monthly retirement payment or refund payment history for each member, all 1099-R documents sent to the member, and retirement estimates • Receives contributions from employers, calculates estimates of future payments, and disburses payments • Manages processes that make employer retirement contribution payrolls, benefit estimates to members, annuity payments, refund payments, and documents pertaining to divorce and member deaths • Serves as the MSRS financial accounting and reporting system (serves as general ledger)
RFP Goal At completion of the implementation stage of the proposed Contract, the MSRS application, Aurora, will be successfully migrated from its current hosting provider, MN.IT, to a new third-party Infrastructure-as-a-Service (IaaS) provider. In its new hosting environment, the application will have the same functionality as it does pre-implementation, but new RFP22 - Infrastructure-as-a-Service Hosting for Aurora Rev. 02/15
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accessibility and security structures will be in place, as specified in this RFP. Vendor will also provide certain managed services to support the application. MSRS is specifically requesting and will require IBM DB2 and IBM Websphere expertise. In the post-implementation phase of the proposed Contract, the Contractor will provide IaaS hosting and managed services that provide MSRS with:
Industry-standard security Industry-standard uptime/redundancy Enforceable Service Level Agreements (SLAs) Client developer access to production and non-production versions of its Aurora application for maintenance, upgrades, and fixes Priority-level access with host technicians and relationship managers Predictable, monthly, itemized cost statements
Solution Overview Application future-state plans are included in Exhibit A. Please review this to obtain a better understanding of the application stack and the MSRS vision for future state. This information should assist in setting the baseline for the third-party hosting solution and the pricing framework you will provide in your response.
Summary of Contractor Tasks The Contractor will work closely, and be directed by MSRS technical teams, in coordination with its consultants, and in cooperation with the current Aurora host (MN.IT) to facilitate the migration to the new vendor location. High-level tasks are anticipated to be the following, but will be confirmed by the conclusion of the contract negotiations:
Validate and finalize draft migration plan Articulate and account for necessary procurement timelines and process Complete setup for application and database environment, monitoring, and security Assist in move-group execution Assist in test execution, as requested Provide ongoing off-site application/database hosting and managed services as requested
Responders must propose a migration workplan that they believe would work best for this effort, making sure to articulate why this plan is the best fit/match for MSRS. Please attach this draft workplan to the RFP response.
Proposal Content & Process Responders must submit the following information before the end of the RFP proposal submission period: 1. A statement of the objectives, goals, and tasks to show or demonstrate the responder's view and understanding of the nature of the contract. Provide any exceptions you take to any of the terms, conditions or language in the Sample Contract (Exhibit L). You must indicate those exceptions in your response; certain exceptions may result in your proposal being disqualified from further review and evaluation. Only those exceptions indicated in your response to the RFP will be available for discussion or negotiation. 2. An outline of the responder's background and experience with examples of similar work done by the responder and a list of personnel who will conduct the project, detailing their training, work experience, and work relationship with the responder (employee/contractor). Resumes or other information about project personnel should not, if possible, contain personal telephone numbers, home addresses or home email
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addresses. If it is necessary to include personal contact information, please clearly indicate in the proposal that personal contact information is being provided. 3. A completed Exhibit B, MSRS IaaS Requirements template. This template contains multiple worksheets with requirement questions and statements. Each requirement must have a Yes/No/NA answer, and MSRS recommends that as much detail is provided to support that initial answer. Vendor must attach a complete version of this document to their response. 4. Proposed migration workplan. 5. Diagrams and technical descriptions of the proposed implementation of Aurora at your site. 6. Description of managed services you will provide, to meet the requirements of this RFP (see Exhibit B). 7. A completed Exhibit C, “Cost Proposal.” This exhibit must be used to submit pricing for this RFP. We encourage vendors to refrain from modifying the pricing template if possible. Be sure to identify the level of the MSRS's participation in the implementation/migration. Note that for purposes of completing the Cost Proposal, the State does not make regular payments based upon the passage of time, it only pays for services performed or work delivered after it is accomplished. 8. Responders are encouraged to propose additional tasks, solutions, managed services, or activities if they will substantially improve the results of this project (optional). These alternative items should be separated from the required items in the Response/Cost Proposal. The State reserves the right to determine if further information is needed to better understand the alternative information presented. This may include a request for a vendor presentation and/or an interview. 9. Provide up to three (3) current professional references which can speak to your ability to provide services similar to those contemplated in this RFP. 10. Complete and Submit the following forms, as applicable: 1. 2. 3. 4. 5. 6. 7.
Certificate Regarding Lobbying (Exhibit E) Affirmative Action Certification (Exhibit F) Equal Pay Certificate Form (Exhibit G) (if applicable) Affidavit of Noncollusion (Exhibit H) Veterans Preference Form (Exhibit I) (if applicable) Resident Vendor Form (Exhibit J) (if applicable) E-Verify Certification (Exhibit K) (if applicable)
Note: The Responder’s proposal and draft schedules should be separated from the Cost Proposal, so they can be evaluated separately. The Cost Proposal will not be reviewed by the RFP review committee until after the qualifications points are awarded.
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RFP Schedule EVENT RFP Distribution RFP Question Deadline RFP Answer Distribution Period RFP Submission Deadline RFP Evaluation Period RFP Vendor Site Visits & Presentations (if needed) RFP Negotiation Contract Signed
DEADLINE June 29, 2015 July 9, 2015 On or about July 16, 2015 July 31, 2015 Completed on or about August 12, 2015 Completed on or about September 2, 2015 Completed on or about September 9, 2015 Before September 16, 2015
Question & Answers Once the RFP has been distributed, the Question & Answer period will begin. All questions must be emailed to Daniel McLean before the RFP Question Deadline listed in the RFP Schedule table, above. Vendors must use the Q & A template, which is provided as Exhibit D. Send Q & A submissions to: Daniel McLean, MSRS Contract Administrator
[email protected] (indicate “RFP22” in the subject line) Answers to specific responder questions will be distributed to all parties who requested a copy of the RFP, and not just to the party that submitted to the question. Other personnel at MSRS are NOT authorized to discuss this request for proposal with responders, before the proposal submission deadline. Contact regarding this RFP with any personnel not listed above could result in disqualification.
Proposal Submission Instructions Send proposals by email to: Daniel McLean, MSRS Contract Administrator
[email protected] (indicate “RFP22” in the subject line) All proposals must be received no later than the RFP Submission Deadline listed in the RFP Schedule table, above. Late proposals will not be considered. All costs incurred in responding to this RFP will be borne by the Responder. The Responder’s proposal documents should be separated from the Cost Proposal, so they can be evaluated separately. Proposals will be evaluated on “best value” as specified below. The Cost Proposal will not be opened by the review committee until after the qualifications points are awarded. Price will be a significant factor in the evaluation of proposals.
Proposal Evaluation All Responses received by the deadline will be evaluated by the MSRS RFP team. Responses will first be reviewed for responsiveness to determine if the Mandatory Requirements, see below, have been met. Proposals that fail to meet Mandatory Requirements will not advance to the next phase of the evaluation.
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Mandatory Requirements (Scored as Pass/Fail) The following will be considered on a pass/fail basis: 1. Proposals must be received on or before the due date and time specified in this RFP. 2. Requirements template is submitted as part of the RFP response. 3. Pricing Exhibit (“Cost Proposal”) is filled out and submitted. 4. References are provided. Evaluation Factors (Scored based on percentage as indicated) The factors and weighting on which proposals will be judged are: FACTOR Expressed understanding of project objectives Requirement and Manage Services alignment Responder qualifications, experience, and references Cost detail
WEIGHT 10% 35% 25% 30%
Pursuant to State of Minnesota statutes, MSRS shall award up to a six percent preference on state procurement to certified small businesses that are majority-owned and operated by veterans, or which are “Targeted Group and Economically Disadvantaged Business and Individuals.” The maximum preference percentage for a single vendor will be six percent if it meets one or both of these classifications, as detailed in the General Requirements, below. The State reserves the right, based on the scores of the Responses, to create a short-listing of vendors who have received the highest scores to interview, or conduct demonstrations and/or presentations. The State reserves the right to seek best and final offers from one or more responders. It is anticipated that the evaluation and selection will be completed by the RFP Evaluation Period completion date listed in the RFP Schedule table, above.
General Requirements Affidavit of Noncollusion Each responder must complete the attached Affidavit of Noncollusion (Exhibit H) and include it with the response. Conflicts of Interest Responder must provide a list of all entities with which it has relationships that create, or appear to create, a conflict of interest with the work that is contemplated in this request for proposals. The list should indicate the name of the entity, the relationship, and a discussion of the conflict. Proposal Contents By submission of a proposal, Responder warrants that the information provided is true, correct and reliable for purposes of evaluation for potential contract award. The submission of inaccurate or misleading information may be grounds for disqualification from the award as well as subject the responder to suspension or debarment proceedings as well as other remedies available by law. Disposition of Responses All materials submitted in response to this RFP will become property of the State and will become public record in accordance with Minnesota Statutes, section 13.591, after the evaluation process is completed. Pursuant to the statute, completion of the evaluation process occurs when the government entity has completed negotiating the contract with the selected vendor. If the Responder submits information in response to this RFP that it believes to be trade secret materials, as defined by the Minnesota Government Data Practices Act, Minnesota Statute § 13.37, the Responder must: Clearly mark all trade secret materials in its response at the time the response is submitted, Include a statement with its response justifying the trade secret designation for each item, and
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Defend any action seeking release of the materials it believes to be trade secret, and indemnify and hold harmless the State, its agents and employees, from any judgments or damages awarded against the State in favor of the party requesting the materials, and any and all costs connected with that defense. This indemnification survives the State’s award of a contract. In submitting a response to this RFP, the Responder agrees that this indemnification survives as long as the trade secret materials are in possession of the State. The State will not consider the prices submitted by the Responder to be proprietary or trade secret materials. Contingency Fees Prohibited Pursuant to Minnesota Statutes Section 10A.06, no person may act as or employ a lobbyist for compensation that is dependent upon the result or outcome of any legislation or administrative action. Sample Contract You should be aware of the State’s standard contract terms and conditions in preparing your response. A sample State of Minnesota Professional/Technical Services Contract is attached for your reference (Exhibit L). Much of the language reflected in the contract is required by statute. If you take exception to any of the terms, conditions or language in the contract, you must indicate those exceptions in your response to the RFP; certain exceptions may result in your proposal being disqualified from further review and evaluation. Only those exceptions indicated in your response to the RFP will be available for discussion or negotiation.
Reimbursements Reimbursement for travel and subsistence expenses actually and necessarily incurred by the contractor as a result of the contract will be in no greater amount than provided in the current "Commissioner’s Plan” promulgated by the commissioner of Employee Relations. Reimbursements will not be made for travel and subsistence expenses incurred outside Minnesota unless it has received the State’s prior written approval for out of state travel. Minnesota will be considered the home state for determining whether travel is out of state. Organizational Conflicts of Interest The responder warrants that, to the best of its knowledge and belief, and except as otherwise disclosed, there are no relevant facts or circumstances which could give rise to organizational conflicts of interest. An organizational conflict of interest exists when, because of existing or planned activities or because of relationships with other persons, a vendor is unable or potentially unable to render impartial assistance or advice to the State, or the vendor’s objectivity in performing the contract work is or might be otherwise impaired, or the vendor has an unfair competitive advantage. The responder agrees that, if after award, an organizational conflict of interest is discovered, an immediate and full disclosure in writing must be made to the Assistant Director of the Department of Administration’s Materials Management Division (“MMD”) which must include a description of the action which the contractor has taken or proposes to take to avoid or mitigate such conflicts. If an organization conflict of interest is determined to exist, the State may, at its discretion, cancel the contract. In the event the responder was aware of an organizational conflict of interest prior to the award of the contract and did not disclose the conflict to MMD, the State may terminate the contract for default. The provisions of this clause must be included in all subcontracts for work to be performed similar to the service provided by the prime contractor, and the terms “contract,” “contractor,” and “contracting officer” modified appropriately to preserve the State’s rights. Preference to Targeted Group and Economically Disadvantaged Business and Individuals In accordance with Minnesota Rules, part 1230.1810, subpart B and Minnesota Rules, part 1230.1830, certified Targeted Group Businesses and individuals submitting proposals as prime contractors will receive a six percent preference in the evaluation of their proposal, and certified Economically Disadvantaged Businesses and individuals submitting proposals as prime contractors will receive a six percent preference in the evaluation of their proposal. Eligible TG businesses must be currently certified by the Materials Management Division prior to the solicitation opening date and time. For information regarding certification, contact the Materials Management Helpline at 651.296.2600, or you may reach the Helpline by email at
[email protected]. For TTY/TDD communications, contact the Helpline through the Minnesota Relay Services at 1.800.627.3529. RFP22 - Infrastructure-as-a-Service Hosting for Aurora Rev. 02/15
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Veteran-Owned Preference In accordance with Minn. Stat. § 16C.16, subd. 6a, (a) Except when mandated by the federal government as a condition of receiving federal funds, the commissioner shall award up to a six percent preference on state procurement to certified small businesses that are majority-owned and operated by veterans. In accordance with Minn. Stat. § 16C.19 (d), a veteran-owned small business, the principal place of business of which is in Minnesota, is certified if it has been verified by the United States Department of Veterans Affairs as being either a veteran-owned small business or a service disabled veteran-owned small business, in accordance with Public Law 109461 and Code of Federal Regulations, title 38, part 74. To receive a preference the veteran-owned small business must meet the statutory requirements above by the solicitation opening date and time. If you are claiming the veteran-owned preference, attach documentation, sign and return the Veteran-Owned Preference Form with your response to the solicitation. Only eligible veteran-owned small businesses that meet the statutory requirements and provide adequate documentation will be given the preference. Foreign Outsourcing of Work Prohibited All services under this contract shall be performed within the borders of the United States. All storage and processing of information shall be performed within the borders of the United States. This provision also applies to work performed by subcontractors at all tiers. Work Force Certification For all contracts estimated to be in excess of $100,000, responders are required to complete the attached Affirmative Action Data Page (Exhibit F) and return it with the response. As required by Minnesota Rule 5000.3600, “It is hereby agreed between the parties that Minnesota Statute § 363A.36 and Minnesota Rule 5000.3400 - 5000.3600 are incorporated into any contract between these parties based upon this specification or any modification of it. A copy of Minnesota Statute § 363A.36 and Minnesota Rule 5000.3400 - 5000.3600 are available upon request from the contracting agency.” Equal Pay Certification If the Response to this solicitation could be in excess of $500,000, the Responder must obtain an Equal Pay Certificate from the Minnesota Department of Human Rights (MDHR) or claim an exemption prior to contract execution (see Exhibit G). A responder is exempt if it has not employed more than 40 full-time employees on any single working day in one state during the previous 12 months. Please contact MDHR with questions at: 651-539-1095 (metro), 1-800-6573704 (toll free), 711 or 1-800-627-3529 (MN Relay) or at
[email protected]. Insurance Requirements A. Contractor shall not commence work under the contract until they have obtained all the insurance described below and the State of Minnesota has approved such insurance. Contractor shall maintain such insurance in force and effect throughout the term of the contract. B. Contractor is required to maintain and furnish satisfactory evidence of the following insurance policies: 1. Workers’ Compensation Insurance: Except as provided below, Contractor must provide Workers’ Compensation insurance for all its employees and, in case any work is subcontracted, Contractor will require the subcontractor to provide Workers’ Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Coverage B, Employer’s Liability. Insurance minimum limits are as follows: $100,000 – Bodily Injury by Disease per employee $500,000 – Bodily Injury by Disease aggregate $100,000 – Bodily Injury by Accident RFP22 - Infrastructure-as-a-Service Hosting for Aurora Rev. 02/15
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If Minnesota Statute 176.041 exempts Contractor from Workers’ Compensation insurance or if the Contractor has no employees in the State of Minnesota, Contractor must provide a written statement, signed by an authorized representative, indicating the qualifying exemption that excludes Contractor from the Minnesota Workers’ Compensation requirements. If during the course of the contract the Contractor becomes eligible for Workers’ Compensation, the Contractor must comply with the Workers’ Compensation Insurance requirements herein and provide the State of Minnesota with a certificate of insurance. 2. Commercial General Liability Insurance: Contractor is required to maintain insurance protecting it from claims for damages for bodily injury, including sickness or disease, death, and for care and loss of services as well as from claims for property damage, including loss of use which may arise from operations under the Contract whether the operations are by the Contractor or by a subcontractor or by anyone directly or indirectly employed by the Contractor under the contract. Insurance minimum limits are as follows: $2,000,000 – per occurrence $2,000,000 – annual aggregate $2,000,000 – annual aggregate – Products/Completed Operations The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability State of Minnesota named as an Additional Insured, to the extent permitted by law 3. Commercial Automobile Liability Insurance: Contractor is required to maintain insurance protecting it from claims for damages for bodily injury as well as from claims for property damage resulting from the ownership, operation, maintenance or use of all owned, hired, and non-owned autos which may arise from operations under this contract, and in case any work is subcontracted the contractor will require the subcontractor to maintain Commercial Automobile Liability insurance. Insurance minimum limits are as follows: $2,000,000 – per occurrence Combined Single limit for Bodily Injury and Property Damage In addition, the following coverages should be included: Owned, Hired, and Non-owned Automobile 4. Professional/Technical, Errors and Omissions, and/or Miscellaneous Liability Insurance This policy will provide coverage for all claims the contractor may become legally obligated to pay resulting from any actual or alleged negligent act, error, or omission related to Contractor’s professional services required under the contract. Contractor is required to carry the following minimum limits: $2,000,000 – per claim or event $2,000,000 – annual aggregate Any deductible will be the sole responsibility of the Contractor and may not exceed $50,000 without the written approval of the State. If the Contractor desires authority from the State to have a deductible in a RFP22 - Infrastructure-as-a-Service Hosting for Aurora Rev. 02/15
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higher amount, the Contractor shall so request in writing, specifying the amount of the desired deductible and providing financial documentation by submitting the most current audited financial statements so that the State can ascertain the ability of the Contractor to cover the deductible from its own resources. The retroactive or prior acts date of such coverage shall not be after the effective date of this Contract and Contractor shall maintain such insurance for a period of at least three (3) years, following completion of the work. If such insurance is discontinued, extended reporting period coverage must be obtained by Contractor to fulfill this requirement. C. Additional Insurance Conditions: Contractor’s policy(ies) shall be primary insurance to any other valid and collectible insurance available to the State of Minnesota with respect to any claim arising out of Contractor’s performance under this contract; If Contractor receives a cancellation notice from an insurance carrier affording coverage herein, Contractor agrees to notify the State of Minnesota within five (5) business days with a copy of the cancellation notice, unless Contractor’s policy(ies) contain a provision that coverage afforded under the policy(ies) will not be cancelled without at least thirty (30) days advance written notice to the State of Minnesota; Contractor is responsible for payment of Contract related insurance premiums and deductibles; If Contractor is self-insured, a Certificate of Self-Insurance must be attached; Contractor’s policy(ies) shall include legal defense fees in addition to its liability policy limits, with the exception of B.4 above; Contractor shall obtain insurance policy(ies) from insurance company(ies) having an “AM BEST” rating of A- (minus); Financial Size Category (FSC) VII or better, and authorized to do business in the State of Minnesota; and An Umbrella or Excess Liability insurance policy may be used to supplement the Contractor’s policy limits to satisfy the full policy limits required by the Contract. D. The State reserves the right to immediately terminate the contract if the contractor is not in compliance with the insurance requirements and retains all rights to pursue any legal remedies against the contractor. All insurance policies must be open to inspection by the State, and copies of policies must be submitted to the State’s authorized representative upon written request. E. The successful responder is required to submit Certificates of Insurance acceptable to the State of Minnesota as evidence of insurance coverage requirements prior to commencing work under the contract. E-Verify Certification (In accordance with Minn. Stat. §16C.075) By submission of a proposal for services in excess of $50,000, Contractor certifies that as of the date of services performed on behalf of the State, Contractor and all its subcontractors will have implemented or be in the process of implementing the federal E-Verify program for all newly hired employees in the United States who will perform work on behalf of the State. In the event of contract award, Contractor shall be responsible for collecting all subcontractor certifications and may do so utilizing the E-Verify Subcontractor Certification Form available as Exhibit K. All subcontractor certifications must be kept on file with Contractor and made available to the State upon request.
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