Transactions (Sales) and Use Tax Audit Services

County of Alameda, General Services Agency – Purchasing

RFP No. 900977, Addendum No. 2

COUNTY OF ALAMEDA

ADDENDUM No. 2

to

RFP No. 901143

for

Transactions (Sales) and Use Tax Audit Services

Specification Clarification/Modification and Recap of the Networking/Bidders Conferences

Held on September 16, 2013 and September 17, 2013

**REVISED BID RESPONSE PACKET AND BID FORM**

Attached to this Addendum is a REVISED Exhibit A – Bid Response Packet, including a REVISED Bid Form. Bidders must use the REVISED Bid Response Packet and REVISED Bid Form when submitting their bid response.

**REVISED BID DUE DATE**

Please note that Bid Responses are now due on November 8, 2013.

Alameda County is committed to reducing environmental impacts across our entire supply chain.

If printing this document, please print only what you need, print double-sided, and use recycled-content paper.

RFP No. 900977, Addendum No. 2

Page 1

The following Sections have been modified to read as shown below. Changes made to the original RFP document are in bold print and highlighted, and deletions made have a strike through.

Page 8 of the RFP, Section II. CALENDAR OF EVENTS, has been modified as follows:

II.CALENDAR OF EVENTS

Note:Award and start dates are approximate.

Page 14 of the RFP, Section G (EVALUATION CRITERIA/SELECTION COMMITTEE), Item J.11., has been modified to read as follows:

Has proposer Bidder provided a recent satisfactory/compliant external control review audit report?

Page 8 of the REVISED Exhibit A – Bid Response Packet, Item 5(k) has been modified to read as follows:

(k)Quality Control: Bid response shall include a copy of Bidder’s most recent external quality control review audit report.

Responses to Written Questions

Q1) Due to confidentiality restrictions, it may be difficult for Bidders to subcontract services. Does the County have a process for Bidders to request a SLEB waiver?

A) The County does not have a process for Bidders to request a SLEB waiver. However, Bidders can take an exception to the SLEB requirement and document this on Page 14 of REVISED Exhibit A – Bid Response Packet on the Exceptions, Clarifications and Amendments page. All exceptions will be reviewed by the County. However, the County is under no obligation to accept any exceptions and such exceptions may be a basis for bid disqualification.

There is a confidentiality requirement under Revenue and Taxation Code section 7056. The Contractor and any SLEB subcontractor (or business partners) will be identified and held subject to the conditions imposed by any Board resolution adopted as a result of this project pursuant to Revenue and Taxation Code section 7056.

Q2) Page 5 of the RFP, Section D (SPECIFIC REQUIREMENTS), Item 3, states:

Contractor will calculate the correct billable tax rate for the entire scope of County taxpayers.

Can the County clarify what is meant by calculate the correct billable tax rate for the entire scope of County taxpayers?

A) This statement refers to the need to include all Transactions (Sales) and Use Taxes that apply to Alameda County, including but not limited to the local Essential Health Care Services Tax (Measure A). The County will rely on the Contractor’s expertise in identifying applicable entities and calculating correct billable tax rates for services under this project.

Q3) Page 6 of the RFP, Sections D (SPECIFIC REQUIREMENTS), Item 9, states:

Contractor accountants shall use sound professional judgment in determining the standards that apply to each specific audit. Any determination that standard guidelines do not apply to an audit shall be reported in supporting documents. Situations may occur in which government auditors are not able to follow an applicable standard and are not able to withdraw from the audit.

Does the County have a specific set of audit standards in mind?

A) The County is looking for the Contractor’s expertise in applying appropriate standards to a specific audit type.

Q4) Page 7 of the RFP, Section D (SPECIFIC REQUIREMENTS), Item 11, states:

Contractor shall make supporting documents available to auditors using their work, to appropriate oversight bodies, and to the public within the parameters of confidentiality requirements of the California Revenue and Taxation Code.

What Auditors will be using the work, and how will they be using it?

A) The work will be used by County audit staff who may be assigned to determine the validity of claims for payment.

Q5) Page 8 of the RFP, Section E (DELIVERABLES/REPORTS), Item 2, states:

All written reports submitted to the County shall begin with a Scope section which includes a title, brief description, and notes any unusual properties or exceptions that pertain to that specific report.

Can the County clarify the purpose of the Scope requirement for written reports?

A) The Scope section is only required for narrative written reports so that the County may understand what is included in or excluded from the report. It is not required for quarterly reports consisting of charts that illustrate Transactions (Sales) and Use Tax performance or projections. However, the latter should be clearly titled and labeled, with any exceptions noted.

Q6) Page 8 of the RFP, Section E (DELIVERABLES/REPORTS), Item 3, states:

Quarterly reports shall demonstrate that any new Transactions (Sales) and Use Tax is based upon a business that has been in operation for at least four (4) months without paying the required Transactions (sales) and Use Tax.

Does this section refer to Petition for Corrections forms submitted to the SBOE as part of the Audit Program?

A) Yes. This is referring to the Petition for Corrections forms submitted to the SBOE as part of the Audit Program.

Q7) Page 13 of the RFP, Section G (EVALUATION CRITERIA/SELECTION COMMITTEE), Item J (3), states:

Has proposer provided a mathematical model and explanation for the transactions (sales) and use tax that demonstrates accuracy in calculating interest and penalties?

The State sales tax data does not break out the amount of penalties and interest that have been levied on a taxpayer. Would an explanation of the State’s current interest ratio or underpayments and policies regarding the penalties be sufficient to satisfy this requirement?

A) Yes. An explanation of the State’s current interest ratio or underpayments and policies regarding the penalties would be sufficient to satisfy this requirement.

Q8) Page 14 of the RFP, Section G (EVALUATION CRITERIA/SELECTION COMMITTEE), Item J.11, states:

Has proposer provided a recent satisfactory/compliant external control review report?

Can the County clarify what is meant by a recent satisfactory/compliant external control review report?

A) This specification and its corresponding bid submittal requirement have been modified. Please see the revised language on page 1 of this Addendum. The County is now asking for Bidders to provide a recent external audit report. The County will review the audit report and score it appropriately.

Q9) Does the County require the Prime Bidder to meet the minimum qualifications, or can the minimum qualifications be met through an employee or partner?

A) The County requires the Prime Bidder itself to meet the minimum qualifications. The minimum qualification cannot be met by a partner or subcontractor, nor can it be met by an employee. The company that is bidding as prime must meet the minimum qualifications.

Q10) Who is the current Contractor for these services?

A) Hinderliter, de Llamas & Associates (HdL) is the current Contractor.

Q11) What is the size of the current contract?

A) To date, $453,981.84 has been paid to the current Contractor. A copy of the current contract can be provided upon request. Please send, by e-mail, your public records request for the current contract to: Lovell Laurente, Contracts Assistant @ .

Q12) What additional deliverables/reports services does the County require above and beyond what is currently provided?

A) Occasionally, the County will ask the Contractor to provide a report that analyzes and projects the performance of a certain Transaction (Sales) and Use Tax, in addition to the usual reports provided quarterly.

Q13) What type of tax collection will the County have Contractors perform?

A) The Contractor will not collect taxes directly from individuals or businesses. Rather, Contractors will perform audit services and report errors to the State Board of Equalization in order to recover Transactions/Sales and Use Tax.

Q14) If SLEB requirement will be a contingency fee contract, how does the County want Bidders to calculate the 20% SLEB requirement?

A) The twenty percent (20%) is calculated off of actual payments to the Contractor for services rendered.

Q15) Page 19 of the RFP, Section P (ACCOUNT MANAGER/SUPPORT STAFF), Item 3, states:

Contractor account manager shall be familiar with County requirements and standards and work with the County Administrator’s Office to ensure that established standards are adhered to.

Can the County elaborate where Bidders can find these requirements and standards?

A) These requirements can be found in the RFP, as well as in the Standard Services Agreement (SSA) template. As stated on page 18 of the RFP, Section M (AWARD), Item 9:

Final Standard Agreement terms and conditions will be negotiated with the selected bidder. Bidder may access a copy of the Standard Services Agreement template that can be found online at:

The template contains minimal Agreement boilerplate language only.

Q16) Page 21 of the RFP, Section R (SUBMITTAL OF BIDS), Item 4, states:

BIDDERS SHALL NOT MODIFY BID FORM(S) OR QUALIFY THEIR BIDS. BIDDERS SHALL NOT SUBMIT TO THE COUNTY A SCANNED, RE-TYPED, WORD-PROCESSED, OR OTHERWISE RECREATED VERSION OF THE BID FORM(S) OR ANY OTHER COUNTY-PROVIDED DOCUMENT.

Are exceptions considered to be a qualification of the bid?

A) Exceptions may be considered a “qualification of the bid.” The County does, however, allow Bidders to list exceptions on the EXCEPTIONS, CLARIFICATIONS, AMENDMENTS page of REVISED Exhibit A – Bid Response Packet.

Each exception listed will be reviewed and a determination made as to its acceptance. The County, however, is under no obligation to accept any exceptions and such exceptions may be a basis for bid disqualification.

Q17) Page 23 of the RFP, Section R (SUBMITTAL OF BIDS), Item 12 states:

The undersigned Bidder certifies that it is, at the time of bidding, and shall be throughout the period of the contract, licensed by the State of California to do the type of work required under the terms of the Contract Documents. Bidder further certifies that it is regularly engaged in the general class and type of work called for in the Bid Documents.

If a company’s work does not require a license from the State, may the Bidder strike this provision in their response?

A) Bidders may not strike out provisions. Bidder should, however, list this as an exception in their bid response on the EXCEPTIONS, CLARIFICATIONS, AMENDMENTS page of REVISED Exhibit A – Bid Response Packet.

The following participants attended the Bidders Conferences:

RFP No. 901143, Addendum No. 2

Page 1

REVISED EXHIBIT A

BID RESPONSE PACKET

RFP No. 901143 – Transactions (Sales) and Use Tax Audit Services

To:The County of Alameda

From:

(Official Name of Bidder)

• AS DESCRIBED IN THE SUBMITTAL OF BIDS SECTION OF THIS RFP, BIDDERS ARE TO SUBMIT ONE (1) ORIGINAL HARDCOPY BID (REVISED EXHIBIT A – BID RESPONSE PACKET), INCLUDING ADDITIONAL REQUIRED DOCUMENTATION), WITH ORIGINAL INK SIGNATURES, PLUS Five (5) Copies AND ONE (1) ELECTRONIC COPY OF THE BID IN PDF (with OCR preferred)

• ALL PAGES OF THE BID RESPONSE PACKET (REVISED EXHIBIT A) MUST BE SUBMITTED IN TOTAL WITH ALL REQUIRED DOCUMENTS ATTACHED THERETO; ALL INFORMATION REQUESTED MUST BE SUPPLIED; ANY PAGES OF REVISED EXHIBIT A (OR ITEMS THEREIN) NOT APPLICABLE TO THE BIDDER MUST STILL BE SUBMITTED AS PART OF A COMPLETE BID RESPONSE, WITH SUCH PAGES OR ITEMS CLEARLY MARKED “N/A”

• BIDDERS SHALL NOT SUBMIT TO THE COUNTY A RE-TYPED, WORD-PROCESSED, OR OTHERWISE RECREATED VERSION OF REVISED EXHIBIT A – BID RESPONSE PACKET OR ANY OTHER COUNTY-PROVIDED DOCUMENT

• ALL PRICES AND NOTATIONS MUST BE PRINTED IN INK OR TYPEWRITTEN; NO ERASURES ARE PERMITTED; ERRORS MAY BE CROSSED OUT AND CORRECTIONS PRINTED IN INK OR TYPEWRITTEN ADJACENT, AND MUST BE INITIALED IN INK BY PERSON SIGNING BID

• BIDDER MUST QUOTE PRICE(S) AS SPECIFIED IN RFP

• BIDDERS THAT DO NOT COMPLY WITH THE REQUIREMENTS, AND/OR SUBMIT INCOMPLETE BID PACKAGES, SHALL BE SUBJECT TO DISQUALIFICATION AND THEIR BIDS REJECTED IN TOTAL

• IF BIDDERS ARE MAKING ANY CLARIFICATIONS AND/OR AMENDMENTS, OR TAKING EXCEPTION TO POLICIES OR SPECIFICATIONS OF THIS RFP, INCLUDING THOSE TO THE COUNTY SLEB POLICY, THESE MUST BE SUBMITTED IN THE EXCEPTIONS, CLARIFICATIONS, AMENDMENTS SECTION OF THIS REVISED EXHIBIT A – BID RESPONSE PACKET IN ORDER FOR THE BID RESPONSE TO BE CONSIDERED COMPLETE
  

BIDDER INFORMATION AND ACCEPTANCE

1. The undersigned declares that the Bid Documents, including, without limitation, the RFI, RFP, Addenda, and Exhibits have been read.
2. The undersigned is authorized, offers, and agrees to furnish the articles and/or services specified in accordance with the Specifications, Terms & Conditions of the Bid Documents of RFP No. 901143 – Transactions (Sales) and User Tax Audit Services.
3. The undersigned has reviewed the Bid Documents and fully understands the requirements in this Bid including, but not limited to, the requirements under the County Provisions, and that each Bidder who is awarded a contract shall be, in fact, a prime Contractor, not a subcontractor, to County, and agrees that its Bid, if accepted by County, will be the basis for the Bidder to enter into a contract with County in accordance with the intent of the Bid Documents.
4. The undersigned acknowledges receipt and acceptance of all addenda.
5. The undersigned agrees to the following terms, conditions, certifications, and requirements found on the County’s website:

• Bid Protests / Appeals Process [

• Debarment / Suspension Policy

[

• Iran Contracting Act (ICA) of 2010

[

• General Environmental Requirements

[

• Small Local Emerging Business Program

[

• First Source

[

• Online Contract Compliance System

[

• General Requirements

[

• Proprietary and Confidential Information

[

1. The undersigned acknowledges that Bidder will be in good standing in the State of California, with all the necessary licenses, permits, certifications, approvals, and authorizations necessary to perform all obligations in connection with this RFP and associated Bid Documents.
2. It is the responsibility of each bidder to be familiar with all of the specifications, terms and conditions and, if applicable, the site condition. By the submission of a Bid, the Bidder certifies that if awarded a contract they will make no claim against the County based upon ignorance of conditions or misunderstanding of the specifications.
3. Patent indemnity: Vendors who do business with the County shall hold the County of Alameda, its officers, agents and employees, harmless from liability of an nature or kind, including cost and expenses, for infringement or use of any patent, copyright or other proprietary right, secret process, patented or unpatented invention, article or appliance furnished or used in connection with the contract or purchase order.
4. Insurance certificates are not required at the time of submission. However, by signing REVISED Exhibit A – Bid Response Packet, the Contractor agrees to meet the minimum insurance requirements stated in the RFP. This documentation must be provided to the County, prior to award, and shall include an insurance certificate and additional insured certificate, naming the County of Alameda, which meets the minimum insurance requirements, as stated in the RFP.
5. The undersigned acknowledges ONE of the following (please check only one box):

Bidder is not local to Alameda County and is ineligible for any bid preference; or

Bidder is a certified SLEB and is requesting 10% bid preference; (Bidder must check the first box and provide its SLEB Certification Number in the SLEB PARTNERING INFORMATION SHEET); or

Bidder is LOCAL to Alameda County and is requesting 5% bid preference, and has attached the following documentation to this Exhibit:

• Copy of a verifiable business license, issued by the County of Alameda or a City within the County; and
• Proof of six (6) months business residency, identifying the name of the vendor and the local address. Utility bills, deed of trusts or lease agreements, etc., are acceptable verification documents to prove residency.
  

Official Name of Bidder: