OKLAHOMA UNIVERSAL SERVICES FUND
REQUEST FOR PROPOSALS
OKLAHOMA UNIVERSAL
SERVICE FUND MANAGER PROJECT
PLEASE MARK ALL PROPOSAL SUBMISSIONS
WITH THE FOLLOWING INFORMATION
RFP TITLE: Oklahoma Universal Service Fund Manager Project / OUSF RFP No. 2017-1
DATE ISSUED:June 30,2017
DATE DUE: August 31,2017 at 5:00 P.M., Central
TABLE OF CONTENTS
SECTION 1. PROPOSAL SUBMISSION INSTRUCTIONS...... 3
SECTION 2. TERMS AND CONDITIONS...... 6
SECTION 3. STATEMENT OF WORK...... 14
SECTION 4. EVALUATION CRITERIA...... 19
SECTION 5. REQUEST FOR PROPOSALS FOR FUND MANAGEMENT…...... 21
SECTION 6. PROPOSAL RESPONSE FORM...... 22
ATTACHMENT I. NON-COLLUSION AFFIDAVIT...... 23
ATTACHMENT II. RFP TRANSMITTAL LETTER...... 26
ATTACHMENT III. CONTRACT...... 27
APPENDIX I. QUESTIONS...... 43
SECTION 1. PROPOSAL SUBMISSION INSTRUCTIONS
1.1Offeror Response to RFP: Offerors must submit their proposals in the format, including heading descriptions, outlined below. To be considered, the proposal must respond to all requirements in this part of the RFP. Offerors should provide any other information thought to be relevant, but not applicable to the enumerated categories, as an appendix to the Proposal. All cost data relating to this proposal should be kept separate from and not included in the Technical Submittal. Each Proposal shall consist of the following two separately sealed submittals:
- Technical Submittal
- Cost Submittal
The Issuing Office reserves the right to request additional information, which in the Issuing Office’s opinion, is necessary to assure that the Offeror’s competence, number of qualified employees, business organization, and financial resources are adequate to perform according to the RFP.
The Issuing Office may make investigations as deemed necessary to determine the ability of the Offeror to perform the Project, and the Offeror shall furnish to the Issuing Office all requested information and data. The Issuing Office reserves the right to reject any proposal if the evidence submitted by, or investigation of, such Offeror fails to satisfy the Issuing Office that such Offeror is properly qualified to carry out the obligations of the RFP and to complete the Project as specified.
1.2Statement of the Service Being Requested: State in succinct terms your understanding of the service required by this RFP.
1.3Management Summary:Include a narrative description of the proposed effort and a list of the services to be provided.
1.4Work Plan: The first part of each proposal should include a general discussion of theapproach the Offeror will take and explain how the Offeror will meet each requirement. In addition, this part of the proposal should identify all individuals who will work on significant tasks, and should explain the qualifications of each, and how many hours the individual will likely work on their respective tasks on a monthly basis. A singleindividual should be identified to serve as OUSFManager, and that individual’s resume should be attached. Resumes for other identified persons with significant responsibility should also be attached.
If the Offeror desires to associate with another organization such as a bank to provide the required services, the bid should include a separate statement from that organization describing its anticipated role.
Describe in narrative form your technical plan for accomplishing the work. Use the task descriptions in Section 3 of this RFP as your reference point. Modifications of the task descriptions are permitted; however, reasons for changes should be fully explained. Indicate the number of person hours allocated to each task. Include a Program Evaluation and Review Technique (PERT) or similar type display, time related, showing each event. If more than one approach is apparent, comment on why you chose this approach.
1.5Prior Experience: Include experience in administering other state or federal USFs or other similar Funds. Accounting experience or legal experience should be stated. Experience shown should be work done by individuals who will be assigned to this project as well as that of your company. Studies or projects referred to must be identified and the name of the customer shown, including the name, address, and telephone number of the responsible official of the customer, company, or agency who may be contacted.
1.6Personnel: Include the names of executive and professional personnel, analysts, auditors, researchers, programmers, consultants, etc., who will be engaged in the work. Show where these personnel will be physically located during the time they are engaged in the Project. Key personnel includes those persons who would be handling collections and disbursements, issuing mailings to the carriers, treasury department personnel, supervisors, accountants, lawyers, and other people who may be involved in handling the Fund. Include resumes of personnel. In addition, if the Offeror or any of its associates has an affiliate or representational relationship with a Commission-regulated telecommunications carrier, the Offeror must disclose that relationship and explain, in detail, the measures that will be taken to avoid any conflict of interest that may arise because of this contract. Written documentation demonstrating, as deemed appropriate by the OCC, that measures have been taken to avoid any conflict of interest is required.
1.7Financial Capability:Describe your company’s financial stability and economic capability to perform the contract requirements. Financial documents such as audited financial statements or recent tax returns will be acceptable to the Commission.
1.8Objections and Additions to Standard Contract Terms and Conditions: The Issuing Office may, in its sole discretion, accept or reject any requested changes to the standard contract terms and conditions. The Offeror shall not request changes to the other provisions of the RFP, nor shall the Offeror request to completely substitute its own terms and conditions for Appendix A. All terms and conditions must appear in one integrated contract. The Issuing Office will not accept references to the Offeror’s or any other online guides or online terms and conditions contained in any proposal.
Regardless of any objections set out in its proposal, the Offeror must submit its proposal, including the cost proposal, on the basis of the terms and conditions set out in Appendix A. The Issuing Office will reject any proposal that is conditioned on the negotiation of terms and conditions other than those set out in Appendix A.
1.9Cost Submittal:The second part of the proposal document should be a price quotation, which should not be in the main text of the proposal but rather kept separate in a separate sealed envelope, marked "cost submittal." The price quotation should cover the contract period. A cost data sheet should be submitted in this separate sealed envelope and it should include a breakdown of costs. Offerors are free to structure their price offerings in any way they choose; however, the bid should specifically describe:
- One-time startup costs, presumably to be paid in the first year.
- Fixed annual costs for each of the contract years. This should cover most anticipated expenses, such as personnel, office costs, and overhead, and may include an allowance for travel. The amount may vary for each year based upon expected inflation and operation charges, efficiencies, etc.
- Any contingency costs. This might include functions like defense of lawsuits.
- If the winning Offeror actually begins work after July 1, 2018, how compensation will be proportionally adjusted.
Failure to submit the cost data sheet in a sealed envelope kept separate and apart from the rest of the proposal will result in automatic rejection of the proposal and the proposal will be considered nonresponsive.
The Issuing Office will reimburse the selected Offeror for work satisfactorily performed after execution of a written contract and the start of the contract term, in accordance with contract requirements, and only after the Issuing Office has issued a notice to proceed.
SECTION 2. TERMS AND CONDITIONS
2.1Purpose: This Request for proposals (“RFP”) provides interested contractors with sufficient information to enable them to prepare and submit proposals for consideration by the Oklahoma Corporation Commission (“Commission” or “OCC”) to administer the Oklahoma Universal Service Fund (“OUSF” or “Fund”)beginning July 1, 2018,and which may be extended annually, pursuant to the 17 O.S.§139.106 - Oklahoma Universal Service Fund and the Oklahoma Administrative Code (OAC) 165:59.
2.2Issuing Office: This RFP is issued by the Oklahoma Corporation Commission. The Commission regulates and/or approves rates and tariffs for common and contract carriers and power, water, gas and telecommunications utilities operating within the State of Oklahoma(“State”) for this RFP. Although compensation for services will be made from OUSF monies as opposed to State general fund monies, the final selection, control and approval for payment of any contract is made by the Commission’s Public Utility Division.
The sole point of contact for this RFP shall be the Regulatory Manager Public Utility Division, Jim Jones, Jim Thorpe Building, Room 580, 2101 North Lincoln Boulevard, Oklahoma City, OK, 73105, phone number (405) 521-6737, email .
2.3Scope: This RFP contains instructions governing the requested proposals, including the requirements for the information and material to be included; a description of the service to be provided; requirements which must be met to be eligible for consideration; general evaluation criteria; and other requirements to be met by each proposal.
2.4Problem Statement: The OCC hereby requests written proposals to serve as the third-party manager (“Manager”) of the OUSF. The Manager is responsible for managing the OUSFbeginningJuly 1, 2018, and which may be extended on an annual basis. The Manager is responsible for collecting pro rata contributions based on telecommunications service providers’ intrastate end-user telecommunications retail revenues, at a rate set by the OCC, and depositing these revenues into the OUSF. The Manager will also distribute money from the OUSF on the first of each month to telecommunications carriers certificated in the State of Oklahoma.
The Commission rules allow for an assessment that is computed annually pursuant to OAC 165:59-3-13(a) (relating to the adjustment of the funding level, as necessary, on an annual basis, and billing the telecommunications carriers required to contribute to the fund) at a rate calculated by multiplying each contributing telecommunications provider’s associated total intrastate regulated and unregulated telecommunications retail revenues by the contribution factor. End-user revenues expressly do not include revenues received from access, resale (toll or local) of unbundled network elements, or other services provided that are essentially wholesale in nature. Total end-user revenues shall include all revenues received from subscribers who actually consume the final service unadjusted for any expense or any other purpose.
Every telecommunications carrier shall contribute, on a nondiscriminatory basis, intothe OUSF.
The Manager functions as the “financial hub” of this system. The Manager collects the contributions from the individual companies, manages the Fund’s cash flow, and disburses payments to the eligible companies. The Commission sets the OUSFcontribution factor annually based on data the Managersubmitted in annual reports.
The Manager may be an individual or an organization. An organizational Offeror may have sufficient resources on Staff. An individual Offeror probably would need to have formal or informal relationships with other organizations such as banks. For example, an individual Offerorwould probably want to develop a "lock box" system at a bank to collect receiptsand possibly use a bank's commercial or trust operations for making short-term liquid investments.
2.5Manager Criteria: The Manager shall meet the following criteria:
2.5.1The Manager shall be neutral, impartial, and independent from telecommunications service providers operating in the State of Oklahoma;
2.5.2The Manager shall not advocate specific positions before the Commission in non-universal service administrative proceedings related to common carrier issues;
2.5.3The Manager shall not be an affiliate of any provider of telecommunications services; and
2.5.4If the Manager has a board of directors that includes members with direct financial interests in entities that contribute to or receive support from the Fund, no more than a third of the board members may represent any one category (e.g., local exchange carriers or interexchange carriers) of contributing carriers or support recipients, and the Board’s composition must reflect the broad base of contributors to and recipients of Fund assets. For purposes of this restriction, a direct financial interest exists where the Manager or Board member:
2.5.4.1is an employee of a telecommunications carrier,
2.5.4.2owns equity interests in bonds or equity instruments issued by any telecommunications carrier, or
2.5.4.3owns mutual funds that invest more than 50% of its assets in telecommunications securities.
2.5.5If the Manager’s board composition changes during its contractual period, the Manager shall notify the Commission immediately.
2.6Type of Contract: It is proposed that if the Issuing Office enters into a contract as a result of this RFP, it will be a firm fixed price contract. Payments to the Manager will be based on a monthly payment schedule and should not be a percentage of the total size of the Fund monies managed. The successful Offeror will negotiate with the Commission a detailed contract that is consistent with the standard State of Oklahoma contract for services. The contract will be for a term beginning on July 1, 2018, or as soon thereafter as an effective date can be placed on the contract. Once selected, the Manager will be terminated during this term only for good cause or a lack of funds.
The contract:
2.6.1will cover one year and may be extended annually, with four one year extensions;
2.6.2may need to be amended later if the Oklahoma legislature authorizes or mandates changes to the OUSF; and
2.6.3may elaborate further on the Manager’s duties, including:
2.6.3.1clarifying reporting requirements for the Manager, and inparticular concerning compliance with Generally Accepted Government Auditing Standards;
2.6.3.2periodic financial reporting and revenue estimating requirements;and
2.6.3.3cooperating with a new Manager following termination of the contract so that there will be a smooth transition to the new administration of the OUSF.
2.6.4may be amended later if the Commission modifies any administrative processes associated with the Fund.
2.7Rejection of Proposals: The OCC reserves the right to reject any and all proposals received as a result of this request, or to negotiate separately with competing contractors.
2.8Incurring Costs: The OCC is not liable for any costs incurred by contractors prior to issuance of a contract.
2.9Pre-Proposal Conference: There will be no pre-proposal conference. However, potential Offerors may seek answers to questions by submitting such questions in writingtothe Regulatory Manager Public Utility Division,Jim Jones, Jim Thorpe Building, Room 580, 2101 North Lincoln Boulevard, Oklahoma City, OK, 73105, phone number (405) 521-6737, email ,written e-mailed questions are permissible. All questions regarding this Request for Proposals must be received before July 31, 2017.
2.10Questions & Answers: If an Offeror has any questions regarding this RFP, the Offeror must submit the questions by email with the subject line “OUSF RFP No. 2017-1 Question” to the Issuing Officer named in Paragraph 2.2 above of this RFP. If the Offeror has questions, they must be submitted via email by5:00 p.m. Central Standard Time on July 31, 2017. The Issuing Officer shall post the answers to the questions on the OCC website.
All questions and responses as posted on the OCC website are considered as an addendum to, and part of, this RFP. Each Offeror shall be responsible to monitor the OCC website for new or revised RFP information. The Issuing Office shall not be bound by any verbal information nor shall it be bound by any written information that is not either contained with the RFP or formally issued as an addendum by the Issuing Office.
The Issuing Office does not consider questions to be a protest of the specifications or of the solicitation.
2.11Response Date: To be considered, the original proposal or any addendum thereto and five copies must arrive at the Issuing Office on or before 5:00 p.m. Central Standard Time onAugust 31,2017 via the appropriate address listed below.
Electronic Submission
Email:
Subject Line:OUSF RFP No. 2017-1 BID RESPONSE
First Class Mail Address
Jim Jones-Regulatory Manager-Public Utility Division
Oklahoma Corporation Commission
P.O. Box 52000
Oklahoma City, OK 73105-2000
Overnight Delivery Address
Jim Jones-Regulatory Manager-Public Utility Division
Oklahoma Corporation Commission
Room 580, Jim Thorpe Building
2101 North Lincoln Boulevard
Oklahoma City, OK 73105
Offerors mailing proposals should allow normal mail delivery time to insure timely receipt of their proposals. Proposals received after 5:00 p.m. Central Standard Time on August 31,2017, will not be considered regardless of the reason for the late submission.
2.12Addenda to the RFP: If the Issuing Office deems it necessary to revise any part of this RFP before the proposal response date, the Issuing Office will post an addendum to the OCC website at It is the Offeror’s responsibility to check periodically the website for any new information or addenda to the RFP.
2.13Proposals: To be considered, Offerors must submit a complete response to this RFP, using the format provided in Section 6. Proposals must be signed by an official authorized to bind the contractor to its provision. For this RFP the proposal must remain valid for at least 120 days.
2.14Economy of Preparation: Offerors should prepare proposals timely and economically, providing a straightforward, concise description of the Offeror’s ability to meet the requirements of the RFP.
2.15Proposal Contents: Offerors should not label proposal submissions as confidential or proprietary.
The Issuing Office will hold all proposals in confidence and will not reveal or discuss any proposal with competitors for the contract, unless disclosure is required:
2.15.1 Under the provisions of any Oklahoma or United States statute or regulation;
2.15.2By rule or order of any court of competent jurisdiction.
After a contract is executed, however, the successful proposal is considered a public record under theOklahoma Open Records Act and therefore subject to disclosure. The financial capability information shall not be disclosed in the final contract. All material submitted with the proposal becomes the property of the Oklahoma Corporation Commission and may be returned only at the Issuing Office’s option. The Issuing Office, in its sole discretion, may include any person other than competing Offerors on its proposal evaluation committee. The Issuing Office has the right to use any or all ideas presented in any proposal regardless of whether the proposal becomes part of a contract.