Pennsylvania Universal Service Fund Administrator RFP

Pennsylvania Universal Service Fund Administrator RFP

Pre-proposal Conference held on September 27, 2011

Questions & Answers

October 7, 2011

In attendance:

Rolka, Loube & Saltzer: David

Solix: Rich

Jeff

Jennifer

Dasher WBE: Sharon

Manufacturers and Traders Trust Co.: Jim Deitrick (via phone)

DGS/BMWBO: Cassie Nevel

PUC: Steve Bainbridge, Heidi Wushinske, Kathryn Sophy

1. Does the RFP address transition issues between the existing contractor and a new contractor, if there is change in administrators? If not, please address how the transition will work.

The current contract addresses the transition, should a new administrator be chosen, by requiring the current administrator to “maintain all books, documents, payrolls, papers,accounting records and other evidence pertaining to costs incurred under this agreementand make them available at reasonable times during the period of this contract and for threeyears thereafter for inspection by any authorized representatives of the State orFederalgovernment.”

The current contract also states that the administrator will cooperate with the PUC to transition the administrative responsibilities and records to the new entity, should one be chosen.

Should a new administrator be chosen, it is likely that the PUC would opt to have the current administrator cooperate throughout a to-be-determined transition period.

1. The Fund is audited annually but the annual audit is not filed with the Commission until months later. Similarly, the 2011 annual Fund Report is filed in 2012. If there is a new administrator, the new administrator will not be able to make certain representations regarding some of the previous administrator’s actions in these reports. How will these issues be addressed?

The existing contract states that the current administrator must “maintain all books, documents, payrolls, papers, accounting records and other evidence pertaining to costsincurred under this agreement and make them available at reasonable times during the period of this contract and for three years thereafter for inspection by any authorized representatives of the State or Federal government.”

As the Commonwealth’s representative, the independent auditor should be able to obtain the records held by the current administrator for a period of three years following expiration of the contract, should a new administrator be chosen.

Similarly, should a new administrator be chosen, the current administrator would have to make all of its records available to the new administrator for preparation of the annual Fund Report.

1. Are there services in the RFP that the Commission would prefer not be subcontracted?

No. The PUC will evaluate the overall bid as presented. There must be a definedinternal chain of command and one point of contact with the Commission must be provided, someone who has authority to represent the lead contractor(s) (and all subcontractors) to the Commission.

1. Do the fiduciary responsibilities need to remain with the prime contractor?

No. Separation of work amongst the bidder’s team is up to the bidder.

1. The RFP provides for the Administrator testimony on page 30, Section IV-4. Would the Administrator have to provide its own counsel for such testimony or does the Commission provide legal representation?

The Commission will provide its own attorneys with regard to its own activities, such as defending a Commission order (and by extension the supporting documentation), but Commission attorneys would not be representing the Administrator. Commission attorneys cannot represent the Administrator as such representation could present a conflict. The Administratormay provide its own attorney, at its own expense, if it so chooses.

1. If bidder is willing to accept less than the 150% of the hourly rate for testimony, would that have a positive impact on the cost factor of the bid?

Cost is 30% of the overall score for this RFP. These points are awarded based upon the total contract cost. Because the testimony aspect is uncertain and difficult to quantify, there would be a problem giving any sort of credit for a lower price for testimony, and therefore we cannot do so.

1. For the cost analysis in II-8, should we provide experts’ rates even if they are not operational personnel which will work on the contract and the expert would only be used for testimony if need be?

Providing the information would be helpful so that the rates for such personnel will be known if they are needed to provide testimony. If personnel change, the rate utilized would be the rate provided in the contract for employees doing similar work.

1. When will the Commission make a decision to award the contract?

The soonest we can likely expect a decision would be December.

1. Will a transition period be a point of negotiation?

The existing administrator’s contract states that in the event the PUC chooses not to renew the contract, the administrator “will cooperate with the PUC to transition the administrative responsibilities and records to the entity selected by the PUC.” The contract further states that, in this situation, the PUC can request the current administrator to continue in its capacity after the expiration of its contract during a transition period, charging all costs of such activities as negotiated between the current administrator and the PUC.

1. On page sixteen, Section II-5, is the reference to “electric utilities” experience a typo?

Yes.

1. In providing electronic copies, is this only for the technical portion?

Yes. The Disadvantaged Business Office expects their submission to only be on paper. The cost submission can just be submitted in paper format as well.

1. Is Adobe pdf an acceptable electronic format?

Yes.

1. For the 300 contributions made monthly into the bank that the administrator uses, on average how many of those are wire deposits, ACH deposits and check deposits?

The manner in which the monthly contributions are made can vary. Data for the past three months is below:

July 2011 August 2011 September 2011

13 ACH12 ACH 12 ACH

130 Check 141 Check 127 Check

143 Total 153 Total 139 Total

1. For the 33 disbursements made monthly, are they made via wire, ACH or check?

21 disbursements are made via ACH and 11are made via check.

1. Will the questions and answers include a list of attendees to the pre-proposal conference?

Yes. See the list of attendees above.

1. Does the work involve securities litigation or class actions?

No.

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