COMPETITIVE PROCUREMENT: RFP C000468 ENTERPRISE MULTI-CHANNEL PAYMENT SOLUTION

PROCUREMENT WEBSITE: HTTPS://ITS.NY.GOV/COMPETITIVE-PROCUREMENT-OPPORTUNITIES

DESIGNATED CONTACT FOR INQUIRIES AND SUBMISSIONS

Kelly HerbaContract Management Specialists

Enterprise Multi-Channel Payment Solution

RFP related questions Must be submitted via electronic mail using the Vendor Questions Form (Attachment 4) to the designated contact for this RFP at its.sm.bestvalue@its.ny.gov

No other method of inquires Will be accepted. Administrative issues pertaining to sending/receiving email through the designated mailbox may be reported at (518) 408-2725.

ITS ADDRESS FOR PROPOSAL DELIVERIES

Address to:Kelly HerbaContract Management SpecialistNYS Office of Information Technology Services Procurement and Contract Support Unit

If US Post Office standard and US Post Office overnight mail, use:ATTENTION: Kelly Herba, Contract Management Specialist, PO BOX 2062, ALBANY, NY 12220

If UPS and FedEx express delivery overnight and ground Service, use:ATTENTION: : Kelly Herba, Contract Management Specialist, EMPIRE STATE PLAZA, SWAN STREET BUILDING, CORE 4, ALBANY, NY 12223

If Hand Delivery to front desk:ATTENTION: : Kelly Herba, Contract Management Specialist, EMPIRE STATE PLAZA, SWAN STREET BUILDING, CORE 4, 1ST FLOOR LOBBY, ALBANY, NY 12223

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Calendar of Events

Event Date

1. RFP Release Date February 21, 2017

2. Deadline for Submission of Vendor Questions - Round 1March 14, 2017

3. Issuance of Response to Submitted Questions - Round 1 On or about March 21, 2017

4. Filing of Mandatory Intent to Bid March 28, 2017

5. Deadline for Submission of Vendor Questions - Round 2March 28, 2017

6. Issuance of Response to Submitted Questions - Round 2 On or about April 7, 2017

7. PROPOSAL DUE DATE April 20, 2017 at 4:00 PM EST

8. Vendor Interview w/ Solution Demonstration - vendors susceptible to award as determined by cost and technical evaluations

On or about Week of May 22, 2017

9. Anticipated Notification of Award On or about June 13, 2017

10. Debriefing Request Deadline No later than 10 Business Days from date of award announcement

11. Proposal Protest Deadline See Bid Protest Policy located at:http://www.its.ny.gov/document/bid-protest-policy

12. Timeframe for Contract Negotiations 20 Business Days from date of award announcement

13. Timeframe for Contract Approval; Contract to Begin Approximately 90 days

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TABLE OF CONTENTS

Right click on the Table of Contents to Update Fields as needed)

COMPETITIVE PROCUREMENT: RFP C000468 ENTERPRISE MULTI-CHANNEL PAYMENT SOLUTION.......................................................................................................................................

SECTION 1 - OVERVIEW.................................................................................................................7

1.1 PURPOSE OF REQUEST FOR PROPOSALS (RFP)..................................................................................1.2 AUTHORIZED USER.........................................................................................................................................1.3 DEFINITIONS......................................................................................................................................................1.4 THE OFFICE OF INFORMATION TECHNOLOGY SERVICES..................................................................

1.4.1 1.3.1 Mission, Vision, and Values Statement..........................................................................81.4.2 1.3.2 Formation of ITS............................................................................................................8

SECTION 2 - PROJECT SUMMARY...............................................................................................8

2.1 MINIMUM BIDDER QUALIFICATIONS............................................................................................................2.2 PROJECT BACKGROUND (CURRENT STATE)...........................................................................................................2.3 BUSINESS GOALS – FUTURE STATE........................................................................................................................2.4 FUTURE STATE.....................................................................................................................................................2.5 EXHIBITS – FOR INFORMATIONAL PURPOSES ONLY............................................................................................

SECTION 3 - SOLUTION REQUIREMENTS.................................................................................11

3.1 DESCRIPTION OF SCOPE OF WORK.........................................................................................................

3.1.1 Functional Requirements......................................................................................................113.1.2 Security Requirements.........................................................................................................113.1.3 Training Requirements.........................................................................................................113.1.4 Support Requirements..........................................................................................................113.1.5 System Maintenance Services..............................................................................................123.1.6 Customer Experience Requirements....................................................................................123.1.7 Implementation Requirements.............................................................................................133.1.8 Contractor Personnel Roles and Responsibilities..................................................................143.1.9 Change Management...........................................................................................................16

3.2 IMPLEMENTATION DELIVERABLES...........................................................................................................

3.2.1 Deliverable Acceptance Process...........................................................................................163.2.2 Table of Deliverables............................................................................................................16

3.3 BIDDER EXPERIENCE AND QUALIFICATIONS REQUIREMENTS.......................................................3.4 PAYMENT METHODS.....................................................................................................................................3.5 STATEMENT OF CHARGES..........................................................................................................................3.6 TASK ORDER...................................................................................................................................................

SECTION 4 - PROCUREMENT PROCESS...................................................................................18

4.1 METHOD OF AWARD.....................................................................................................................................4.2 ADMINISTRATIVE REQUIREMENTS AND INFORMATION.....................................................................

4.2.1 Inquiries from Bidders..........................................................................................................184.2.2 Filing by Bidders of Mandatory Intent to Bid........................................................................18

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4.2.3 Communications from NYS to Vendors.................................................................................184.2.4 Procurement Record.............................................................................................................184.2.5 Building Access Procedures for Visitors and Hand Deliveries...............................................18

4.3 NO LATE SUBMISSIONS...............................................................................................................................

SECTION 5 - PROPOSAL REQUIREMENTS...............................................................................19

5.1 PACKAGE LABEL............................................................................................................................................5.2 MULTIPLE SUBMISSIONS.............................................................................................................................5.3 GENERAL REQUIREMENTS FOR PROPOSALS......................................................................................5.4 TECHNICAL, FINANCIAL AND ADMINISTRATIVE PROPOSAL REQUIREMENTS.............................

5.4.1 Please see Attachment 22 Proposal Checklist for the technical, financial and administrative Proposal requirements.........................................................................................................19

5.4.2 Financial Proposal.................................................................................................................195.4.3 Tiered Pricing........................................................................................................................195.4.4 Device Hardware, Software and Maintenance.....................................................................205.4.5 Professional Services............................................................................................................205.4.6 Inventory System..................................................................................................................205.4.7 Technical Proposal................................................................................................................205.4.8 Administrative Proposal.......................................................................................................20

5.5 EVALUATION METHODOLOGY....................................................................................................................

5.5.1 Proposal Completeness Review............................................................................................215.5.2 Minimum Qualifications Evaluation......................................................................................215.5.3 Technical Proposal Evaluation (60 points)............................................................................215.5.4 Financial Proposal Evaluation (30 points).............................................................................215.5.5 Bidder Interview and Product Demonstration (Technical Proposal Evaluation) (10 points). 215.5.6 Final Composite Score..........................................................................................................21

Appendices

Appendix A – Standard Clauses for New York State Contracts

Appendix B – ITS Standard Contract Clauses

Appendix C – Proposed Contract Terms

Appendix D – Reserved

Appendix E – EEO 101, Workforce Employment Utilization/Diversity Compliance Report

Appendix F – MWBE 102, Quarterly MWBE Compliance Report

Appendix G – Deliverable Acceptance Form

Appendix H – Change Request Form

Appendix I – RFP Specific Terms

Appendix J – Glossary of Terms

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Appendix K – Service Level Requirements

Appendix L – Reserved

Appendix M – Task Order Template

Attachments

Attachment 1 – Financial Proposal

Attachment 2 – Non Collusive Bidding Certification

Attachment 3 – Workforce Utilization Plan - EEO101

Attachment 4 – Vendor Questions Form

Attachment 5 – NYS Required Certifications

Attachment 6 – Consultant Confidentiality and Non-Disclosure Agreement

Attachment 7 – Firm Offer Letter and Conflict of Interest Disclosure

Attachment 8 – Lobbying Forms All-in-One

Attachment 9 – Equal Employment Opportunity Staffing Plan – EEO 100

Attachment 10 – Minority/Women Owned Business Utilization Plan – MWBE-100

Attachment 11 – MWBE and EEO Policy Statement

Attachment 12 – Consultant Disclosure Form A

Attachment 13 – Extraneous Terms and Conditions Form

Attachment 14 – Encouraging Use of NYS Business in Contract Performance

Attachment 15 - Contractor Certification to Covered Agency, ST-220-CA

Attachment 16 – Bidder Information Form

Attachment 17 - Workers Compensation and Disability Insurance Requirements

Attachment 18 – Minimum Bidder Qualifications

Attachment 19- Technical Proposal Forms

Attachment 20 - Bidder Experience and Qualifications

Attachment 21 – Requirements Traceability Matrix

Attachment 22 – Proposal Checklist

Attachment 23 –Key Personnel Forms

Attachment 24 – Vendor Assurance of No Conflict of Interest

Attachment 25 – Compliance with HIPAA and HITECH

Attachment 26 – Vendor Responsibility Questionnaire

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Attachment 27 – Use of SDVOB Certification

Attachment 28 – Affirmative Statements

Attachment 29 – FOIL and Litigation Disclosure

Exhibits

Exhibit 1 – Reserved

Exhibit 2 – Estimated Annual POS/Payment Processing Volume

Exhibit 3 – New York Business Express Use Case

Exhibit 4 – New York Business Express Process Flow

Exhibit 5 – Department of Motor Vehicle Use CaseExhibit 6 - Implementation Deliverables

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SECTION 1 - OVERVIEW

1.1 PURPOSE OF REQUEST FOR PROPOSALS (RFP)The New York State (NYS) Office of Information Technology Services (ITS) is issuing this RFP to solicit proposals from responsive and responsible Contractors for an Enterprise-level, multi-channel payment solution. ITS seeks a fully Integrated solution with the following components:

A payment gateway to connect the State’s web and mobile digital stores to payment authorization. Such gateway Should ensure that no Data subject to the Payment Card Industry Data Security Standard (PCI DSS) touches or is stored in State systems.

A payment processor to facilitate payment approval and settlement of funds between the State and the Party responsible for authorizing payment.

A Point-of-Sale (POS) system broadly defined to include, but not be limited to, Hardware and Software to calculate the amount owed by a customer, take customer payment, produce a customer receipt, and refund customer payment.

POS terminals with the ability to collect and/or verify Data fields in addition to those required for the financial transaction and send the Data to NYS as part of the payment record. For example, the NYS Department of Motor Vehicles (DMV) may offer the agency’s customers the opportunity to register to vote or become an organ donor during their DMV transaction.

An inventory system to track and manage commodities (e.g., t-shirts sold at concession stands in NYS Office of Parks, Recreation, and Historic Preservation (OPRHP)) owned by a State Agency and designated for resale.

Robust payment reconciliation capabilities for single customer financial transactions that may include payments to one or many State Agencies.

Robust business intelligence and reporting capabilities for all components of the solution.

Implementation Services to assist the State with converting existing systems and processes to the new solution, and training State Agency staff on use of select components.

A uniform and robust customer experience across the State Agency Enterprise that is state-of-the art and comparable to leading practices in the private sector.

The preferred solution supports the following payment types: major credit and debit cards with Mag Strip Swipe and Europay, MasterCard and Visa (EMV) chip; ACH; Mobile Wallet (e.g., PayPal, Apple Pay, Samsung Pay, Android Pay, Google Wallet); and Checks, including money orders, gift cards, and cash. The preferred vendor demonstrates the ability to develop, extend or expand payment methods to accommodate other programs or State needs not currently identified. The preferred solution must be able to meet the State’s growing need and, at a minimum, support transaction volumes estimated at over 8 million annually and totaling over $1 billion (see Exhibit 2: Estimated POS/Payment Processing Volume).

ITS is issuing this RFP on behalf of its over 50 customer State Agencies who have diverse needs that range from requiring online system access to a payment gateway and payment processor, to full use of all of the aforementioned solution components. There Will be no guarantees as to the volume of business the awarded Contractor Will receive as a result of this RFP. All purchases from the awarded Contractor Will be on an Indefinite Delivery/Indefinite Quantity (IDIQ) basis at NYS’ discretion.

ITS prefers a vendor with substantial experience and expertise. The Offeror Must demonstrate that experience in their bid submission. The experience Must be relevant, and Must be for Services comparable in scale and scope as specified within this RFP. ITS understands that there may be a need

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for potential Contractors to use one or more Subcontractors to satisfy certain requirements. If subcontracting is required, all provisions contained within Section 1.36 of Appendix B- ITS Standard Contract Clauses, of this RFP Must be met.

1.2 AUTHORIZED USERAn Authorized User is defined as the State of New York acting by and through the Office of Information Technology Services (ITS), on behalf of: offices, departments, and Agencies of the State of New York, certain political subdivisions and Authorized User of the Enterprise Multi-Channel Payment Solution.

1.3 DEFINITIONSDefinitions for certain terms in this document can be found in Appendix J – Glossary of Terms

1.4 THE OFFICE OF INFORMATION TECHNOLOGY SERVICES

1.4.1 1.3.1 Mission, Vision, and Values Statement

MISSION

To create and deliver innovative solutions that foster a technology-enabled government to best serve New Yorkers

VISION To lead the nation in serving citizens, businesses, and visitors through world-class technology

VALUES Accountability, Citizens, Innovation, Integrity, People, Transformation

1.4.2 1.3.2 Formation of ITSIn 2012, New York State consolidated Information Technology (IT) functions and Service delivery from over 52 State Agencies into a single agency in the largest IT consolidation in State government history. The ITS workforce of approximately 4,000 professionals serves over 120,000 end users. Historically, IT systems and applications were primarily decentralized within individual State Agencies supported by internal agency teams working with disparate IT tools, methods, and varied technical platforms. Now, ITS is transforming IT across the State to offer world-class Service that provides a consistent and high-quality experience for end users and citizens using an IT environment that:

Maximizes existing resources,

Meets agency business needs with world-class customer Service,

Creates a talented, innovative IT workforce,

Increases accountability, and

Provides cost savings.

SECTION 2 - PROJECT SUMMARY

2.1 MINIMUM BIDDER QUALIFICATIONSBidders Must meet the minimum qualifications set forth in Attachment 18. Failure to meet all of the requirements in this attachment Will result in the Proposal being deemed non-responsive and eliminated from consideration.

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2.2 PROJECT BACKGROUND (CURRENT STATE)

NYS Agencies conduct a wide spectrum of transactions with citizens and businesses that require payment to the State. For example, a number of State Agencies issue licenses and permits, and collect fees via online systems and in-person transactions. As another example, the NYS Office of Parks, Recreation, and Historic Preservation (OPRHP) operates approximately 180 parks across the State that collect admission and parking fees; rent cabins, boats, umbrellas and other items; and sell food and other commodities at park concession stands.

The State’s current implementation of POS Systems and payment processing Services does not maximize business process efficiencies and creates an inconsistent user experience for customers.

Agencies use different POS Systems with varied inventory management capabilities. This requires the State to manage multiple integrations, Device types, and Vendor relationships. In certain cases, front line agency staff use multiple Systems and Devices to execute a single purchase and update inventory.

ITS is responsible for integrations to a number of different payment processing solutions rather than one Enterprise standard. This increases implementation and operating costs, and speed to “Go Live” for new capabilities.

State Systems currently do not universally accept Mobile Wallet (e.g., PayPal, Apple Pay, Samsung Pay, Android Pay, Google Wallet) transactions, and are not able to maximize use of Automated Clearing House (ACH) network transactions.

State Agencies continue to have large pockets of manual, paper-based payment processes. This in large part is due to the lack of a robust Enterprise solution that meets business needs.

Financial reconciliation is cumbersome and labor intensive, particularly for State Enterprise Systems that process payments for multiple Agencies in one financial transaction.

The customer payment experience across the State Enterprise is inconsistent, cumbersome in spots and is not robust compared to leading practices in the private sector.

State Systems have limited ability to allow customers to set up payment plans or schedule a future payment to the State.

2.3 BUSINESS GOALS – FUTURE STATEThe business goals for this procurement include:

Securing a fully Integrated, multi-channel payment solution that includes, but may not be limited to, the following functionalities: online payment gateway and payment processing; POS Hardware and Software; and inventory tracking and management.

Streamlining the State’s POS and payment processing portfolio to a robust Enterprise solution to capture both Implementation and operational efficiencies for ITS and its Authorized Users Agencies.

Expanding the payment options that the State currently offers to its customers to include for example Mobile Wallet options and ACH.

Expanding the State’s offerings to customers to include more prevalent use of mobile or in-app payment options.

Transitioning agency payment processes that are manual and paper-based to electronic payments to capture operational efficiencies and improve customer experience.

Streamlining the reconciliation process for State Agencies, particularly those that have transactions in Enterprise Systems that take payments for multiple Agencies in one customer transaction.

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Providing a uniform and robust customer experience across the State Agency Enterprise that is state-of-the art and comparable to leading practices in the private sector.

2.4 FUTURE STATE ITS anticipates that the following MCPS implementations will be initiated via executed task orders in the first 12 months of the awarded contract and may require Contractor provided implementation services.

NY Business Express (NYBE) – NYBE will be a public facing web portal for citizens and businesses to apply and pay for NYS licenses and permits. The scope of the NYBE implementation includes three interface scenarios: 1) Public pacing portal interface for credit card payments, 2) Public facing portal interface for e-checks / ACH, and 3) NYS agency staff interface for electronic depositing of paper checks.

Jones Beach State Park, Wantagh, NY (OPRHP) – The main focus of this implementation is deployment of approximately 30 point-of-sale units at the Park’s administrative buildings and at the entrances to the parking fields, so that Park staff can sell vehicle entry fees and season passes. Ideally, the MCPS implementation would allow Parks staff to accept cash, credit cards, and debit cards at a minimum. This implementation also includes rolling out credit card payment processing features to unmanned entry automation terminals (purchased separately) at each parking lot entrance.

Central New York State Parks (OPRHP) - This implementation includes deploying the point-of-sale capability to eight locations in Central New York State: Green Lakes, Chenango Valley, Selkirk Shores, Delta Lake, Gilbert Lake, Glimmerglass, and Battle Island. The total number of devices is expected to be approximately 40.

Department of Motor Vehicles (DMV) – This implementation includes deploying point-of-sale capability to 154 DMV offices across New York State. The total number of devices is expected to be approximately 1,236. Such devices will accept customer payment and will be equipped with applications to collect non-payment related data from the customer.

2.5 EXHIBITS – FOR INFORMATIONAL PURPOSES ONLYFor Informational Purposes Only, use cases for New York Business Express and Department of Motor Vehicle are contained in the below Exhibits:

Exhibit 3 New York Business Express Use Case

Exhibit 4 New York Business Express Process Flow

Exhibit 5 Department of Motor Vehicle Use Case

SECTION 3 - SOLUTION REQUIREMENTS

3.1 DESCRIPTION OF SCOPE OF WORK

3.1.1 Functional Requirements Please see Attachment 21 Functional Requirements Matrix.

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3.1.2 Security Requirements All security terms contained in Appendix I – RFP Specific Terms are mandatory. Please see Attachment 18 Minimum Bidder Qualifications, and Attachment 19 Technical Proposal Forms for further information on security requirements.

3.1.3 Training Requirements The awarded Contractor Shall develop and implement a New York State specific training program covering implementation training, on-going training, enhancement training and all other types of training the Vendor proposes for each of the solution’s components. Implementation training and standard on-going training Shall be made available to all ITS Authorized User Agencies under the Contract resulting from this RFP.

3.1.3.1 Training Plan

NYS requires a training Proposal that may incorporate a variety of proposed training methods including but not limited to phone, web based training and hands on on-site training. Please include the proposed Training Plan in Attachment 19 – Technical Proposal Forms.

The Contractor Will provide ITS with electronic access to the necessary user manuals, training material and System Documentation related to Financial Services Processing and Transaction Interfaces. Such information Shall be presented in both technical and plain language to the extent necessary to meet the needs of the intended audience.

The Contractor Will provide training services to all ITS Authorized User Agencies that includes, but is not limited to:

Verification of Equipment receipt; Verification of deployment kit materials (cords, cables, training collateral); Implementation training on Services (Visa, MasterCard, eWallet payments, etc.); Terminal Downloads on existing Equipment (reprogramming); Terminal Downloads for adding additional Services; Terminal training on basic functions such as sales, credits, voids, forces, reports, and

settlement; Installing and training on PC Products; and Business Intelligence and Reporting capabilities.

Contractor provided training Will be governed by a Task Order executed by the State and Contractor (see Appendix M).

3.1.4 Support Requirements 3.1.4.1 Technical Support and Help Desk Services

The Contractor Must provide Help Desk support 24 hours a day, seven days a week.

The Contractor’s Help Desk support Must include the following:

Email, phone and chat support (via a toll-free #) 24 hours a day, seven days a week,

Remote diagnostics, and Access to the Contractor’s ticketing System

The Contractor Must support System required Hardware deployed to agency Sites. Support levels Shall be determined by the Authorized User, and such Services, if ordered, Shall be provided in accordance with the Service Level Requirements specified in Appendix K.

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The Contractor Must participate in on-going support status meetings with ITS personnel or the ITS agency designee, as needed, to troubleshoot problems with the Contractor System and its integration to State Systems.

The Contractor Shall not close a Defect Fix unless that Fix Shall have been demonstrated to either:

(a) Repair the functionality, performance and usability of the application to its pre-Defect level or(b) Improve the functionality, performance and usability of the application from its pre-

Defect level. Note: The State Will determine the level of severity of the defect.

3.1.5 System Maintenance Services The Contractor is responsible for all system maintenance necessary in order to meet all Service Level Requirements as specified in Appendix K – Service Level Requirements.

3.1.6 Customer Experience Requirements A measure of success is the “customer experience” of using the selected Multi-Channel Payment Solution – when Integrated with existing State Agency Systems – in the wider context of interacting with the State of New York. “Customer experiences” should be intentionally and excellently designed through a human-centric approach.

3.1.6.1 Customer Experience OverviewThe Products that comprise the selected solution and the Implementation efforts Shall be grounded in industry standard experience design methodologies. “Experience design” as an umbrella term includes many supporting sub-disciplines known by varying terms in the industry such as customer experience design, user research, user experience design, interaction design, human computer interaction (HCI), user interface design, Service design, etc.

3.1.6.2 Experience Design DocumentationThe Bidder Shall include, as a component of the response to this RFP, information describing the experience design process/activities that have been used to design, develop, and test the products, interfaces, systems, and devices to be delivered through the Contract. This includes, but is not limited to, customer/citizen facing, state employee facing, and developer facing components of the solution, including Hardware Devices, Software interfaces, and Implementation/Configuration frameworks.

If the Bidder is not the original creator of the components of the solution, the Bidder Will seek out and supply this information for each component group included in their Proposal.

For example, if a Proposal includes a hand-held POS Device, the Bidder should seek out information from the Hardware/Software Manufacturer about their internal Product design process/activities that have been used to ensure that interaction with the Product provides an optimal user experience.

3.1.6.3 ITS Enterprise Experience Design Team Implementation CoordinationTo ensure Enterprise experience alignment during each Implementation effort (both the main MCPS System Implementation and subsequent professional Service Implementations) an experience design plan Shall be created by an “Experience Design Lead” in coordination with the ITS Enterprise Experience Design Team and agency experience design teams.

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After each Implementation is complete, a retrospective meeting Shall be scheduled between the Experience Design Lead with ITS Enterprise Experience Design and agency experience design teams to identify how to improve design efforts/outcomes of future Implementations based on lessons learned. All experience design artifacts (research Data, personas, journey maps, prototypes, etc) created during the Implementation Shall be compiled and delivered to the ITS Project Manager, ITS Enterprise Experience Design and agency experience design teams. All source files Shall also be included (e.g. Photoshop, Illustrator, prototype source files, etc.).

3.1.7 Implementation Requirements 3.1.7.1 Project Management

ITS anticipates that the Implementation of certain components of the selected solution to certain ITS Authorized User Agencies may require Vendor provided project management Services.

The awarded Contractor Will provide, at the request of ITS and for a specific Implementation, a Project Manager to whom all communications Will be addressed and who has the authority to act for the Awarded Contractor in all aspects of the Services to be performed under the executed agreement. The Project Manager Will be responsible for directing the work of the awarded Contractor’s staff, and Will be responsible for the overall project delivery and coordinating the project timeline, resource alignment, and weekly status reports.

The Contractor Shall provide overarching management of the project using the State's project management methodology (http://www.cio.ny.gov/pmmp/guidebook2/index.htm). The Contractor Will work closely with the ITS Project Management Office (PMO), and produce project-management related Documentation as requested. The Contractor Shall use the NYS standard suite of desktop tools, (i.e. Microsoft Office 365 experience including MS-Word, MS-Excel, MS-PowerPoint, MS-Visio and MS-Project) in the preparation of all Contract correspondence and Deliverables.

In addition to the project-management related Deliverables detailed in RFP Section 3.2: Implementation Deliverables, the Contractor should be prepared to automatically generate various reports as requested by the NYS Project Director to reflect the project's status at any point in time including: Gantt charts depicting start date, end date, and duration of individual tasks;

Graphical display of the project's critical path; Percent complete status of individual tasks; Calendar driven, manpower loading charts, by individual task, for both Contractor and

NYS staff including variable man-hours per work day; and Calendar driven manpower loading charts, by month/week, for both Contractor and NYS

staff including variable man-hours per work day.

Contractor provided project management Services Will be governed by a Task Order executed by the State and Contractor (see Appendix M).

3.1.7.2 Professional ServicesITS anticipates that the Implementation of certain components or capabilities of the selected solution to certain ITS Authorized User Agencies may require professional Services provided by the awarded Contractor. The awarded Contractor Will provide, at the request of ITS and for a specific Implementation, professional Services to assist ITS with:

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Architectural direction to ensure final payment process flow is in accordance with industry best practices;

Development and/or deployment of customer self-Service applications; Installation, including networking and power drops; Integration of agency cashiering station Hardware including existing agency Hardware

and Hardware purchased from the selected Vendor; Implementation of best practices when establishing reconciliation processes; Experience Design assistance to create Implementations that achieve seamless user

interaction with NYS agency websites/applications/Systems; follow NYS Brand Guidelines; and provide an excellent and intentional user experience; and

Other tasks/Deliverables as agreed to by the State and Contractor, and documented in an executed Task Order.

Contractor provided professional Services Will be governed by a Task Order executed by the State and Contractor (see Appendix M).

3.1.7.3 Device Installation

Device Installation: ITS has also determined that certain solution Implementation Will require installation Services such as the following: Accept and account for Installation location or return of all inventory entrusted to them, Provide evidence of Installation of each Device (e.g., office signoff that 'x' units were

installed), Installation of Hardware (including drilling necessary holes), Connect Hardware to power, network and/or other Devices, Execute Configuration scripts, Troubleshoot Installation issues, and Validate the final Installation (e.g., run test script).

Contractor provided Device Installation Services Will be governed by a Task Order executed by the State and Contractor (see Appendix M).

3.1.7.4 Contractor Personnel Roles and RequirementsListed below are the titles / categories that Will be used for all work efforts under the Awarded Contract. Each title is followed by a brief description of the tasks generally associated with that title. As described below, the Specialist title series Will be used for any work effort where it is determined that one of the other listed titles is not sufficient.

3.1.8 Contractor Personnel Roles and Responsibilities 3.1.8.1 Key Personnel

Engagement Manager – A senior Project Manager Will be deployed in the role of Engagement Manager. The Engagement Manager Will assist with a variety of project management activities including, but not limited to, mentoring Project Managers, assisting with business case and scope statement development, conducting project performance health checks, assisting with project communication, and risk management. The engagement manager Will also be responsible for assisting ITS in coordinating the activities of all personnel deployed on the project.

Project Manager – A Project Manager is responsible for execution and coordination of certain aspects of the project and schedule requiring substantial experience in project management.

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Business Analyst – The Business Analyst is the lead analyst responsible for the execution and coordination of all analytical and writing Deliverables contained in this RFP and related executed task orders.

Technical Architect – The Technical Architect has expertise in the selected solution’s technology, technologies or portfolio of applications and is responsible for designing and implementing final payment solutions for State Authorized User. Experience Will be required in the following areas: developing debit/credit card payment Systems, knowledge of PCI-DSS and other card industry standards, integration with existing point of sale Systems and back office Systems, experience with payment gateways, using Merchant provider reconciliation mechanisms and Implementation of best practices.

3.1.8.2 Other Personnel

Programmer – A programmer provides analysis, design, coding, component and assembly testing of all application code owned by the Application Team. He/she is also responsible for Maintenance (including Production support), enhancement and development work, as well as writing application Software, Data analysis, Data access, Data structures, Data manipulation, Databases, design, programming, testing and Implementation, technical and user Documentation, and Software conversions. Experience Will be required in the following areas: payment card terminal programming, mobile tablet programming, application development for tablets, payment processing development for tablets and Implementation of best practices.

Data Base Administrator – A Data Base Administrator is responsible for Data analysis and Database management, as well as Maintenance, enhancement, designing of Data dictionaries, physical and logical Database models, and performance tuning. Experience Will be required in the following areas: Data requirements gathering, Data modeling, high volume Database architecture to support payment processing, Data integration for payment scenarios, PCI (e.g. Encryption) compliance integration.

Experience Design Lead – An Experience Design Lead is responsible for the overall customer experience strategy informed by overseeing human centered design activities and developing an experience design plan. An appropriate experience design plan would contain activities and guidance on best practices to ensure a consistent experience across Implementations by different NYS Agencies and would guide experience design practitioners through appropriate analysis and design activities. Their strategy should also contribute to the broader customer experience of future payment Implementations efforts by providing reusable patterns and resources. The Experience Design Lead would guide user research and ensure user and scenario modeling fits the context of the Implementation. Specific activities would include, but not be limited to, user research, user and scenario modeling, journey mapping, prototyping, and usability testing.

Experience Design Practitioner – An Experience Design Practitioner is responsible for following the guidance and plan provided by the Experience Design Lead in conducting experience design activities within the context of specific Implementations of the multi-channel payment solution. They would conduct the appropriate user research and modeling to understand the user needs of specific Implementations, recommend approaches that fit user tasks/contexts, and assist in design and development of user interfaces and interactions specific to the Implementation – all within the context of a consistent NYS experience. An Experience Design Practitioner should be skilled in the activities recommended by the Experience Design Lead, or be part of a team that includes the recommended skills across various practitioners.

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Training Analyst / Facilitator – The Training Analyst / Facilitator is responsible for the development of training materials and completing identified activities within the Contractor’s training plan. The Training Analyst / Facilitator will be required to assist the State with training agency front-line staff, supervisors, and executives. Training Analysts / Facilitators should possess direct knowledge of and experience working with the Contractor’s System, and have experience facilitating training sessions.

Specialist I –Any additional resource types bringing specialized skills with between 36-60 months experience, needed by the Contractor’s approach not described by the eight identified resource types.

Specialist II - Any additional resource types bringing specialized skills with between 61-84 months experience, needed by the proposer’s approach not described by the eight identified resource types.

Specialist III - Any additional resource types bringing specialized skills with 84+ months experience, needed by the proposer’s approach not described by the eight identified resource types.

The qualifications for Key Personnel are specified in Attachment 23 – Key Personnel Forms. The Contractor’s personnel designated to perform Implementation work under the awarded Contract and resulting executed Task Orders are subject to State approval prior to commencement of the work. The State approval process may include review of the proposed staff member’s resume, an interview and reference checks. The State Shall approve replacements of Contractor personnel.

3.1.9 Change Management

At any time during the term of this Contract, the State may make changes, subtractions or additions in any of the Equipment, Software, Documentation, Services and/or other Deliverables within the general scope of work set forth in the Contract, consistent with pricing established under the terms of this agreement. All such changes must be made using the Change Request Form (Appendix H) executed by both Parties, and must otherwise be in accordance with the terms and conditions of this Contract. If any such change causes an increase or decrease in pricing or the time required for the performance of the Contract, an equitable adjustment of the Contract amount and/or time of performance will be made on mutual agreement of the parties, subject to the approval of the New York State Comptroller and any applicable control agency, if required.

3.2 IMPLEMENTATION DELIVERABLES

3.2.1 Deliverable Acceptance Process Contractor Will use Appendix G – Deliverable Acceptance Form to request written approval and acceptance by ITS of Contract Deliverables. Deliverables Must meet Contract requirements. There Shall be no verbal acceptance or acceptance by default of a Deliverable. 

3.2.2 Table of Deliverables Please see Exhibit 6 – Implementation Deliverables.

3.3 BIDDER EXPERIENCE AND QUALIFICATIONS REQUIREMENTSThe experience and qualifications requirements are specified in Attachment 20 – Bidder Experience and Qualifications.

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3.4 PAYMENT METHODSITS envisions Authorized Users Will choose from one of two payment methods for each task order resulting from this RFP.

Fees Paid in Arrears via Invoice . The selected Contractor Will calculate fees owed by the State once each month for the previous month’s activity. The selected Contractor Will send the State an invoice reflecting fees due.

Fees Debited to NYS Account(s) – The selected Contractor Will calculate fees owed by the State once each day for the previous day’s activity. Such fees Will be debited to the appropriate state account(s), as established in the executed Task Order.

3.5 STATEMENT OF CHARGES

The Contractor’s statement of charges must contain a summary report verifying the total revenue transferred to each State account(s) for the period being charged itemized by payment method, as well as the interchange percentage and interchange fee being passed to the State. The Contractor’s statement must also include a rolling 12 month grand total historical revenue report, supporting the total dollar amount and percent fee charged.

3.6 TASK ORDER Any Authorized User Agencies identified in this RFP as an agency authorized to use this contract shall procure any or all portions of goods, services and technology available through this contract on an as needed basis through the use of an agency specific Task Order. Such Task Order shall be issued in a manner as prescribed by the agency, and shall not materially diminish the rights of the agency afforded to it pursuant to this contract. The sample Task Order Template located in RFP Appendix M, or similar, will be mutually agreed to with Contractor and utilized during the course of this engagement.

Each Task Order shall be subject to the pricing for all goods, services, and technology, except the agency may negotiate greater discounts than those already provided in the contract.

Prior to Parties entering into a Task Order, 1) The Awarded Contractor Will draft a Task Order for the scope presented by the Authorized User Agency and 2) A reasonability determination Will be performed by Authorized User Agency. Such reasonability determination Shall include NYS’s review of the Awarded Contractor’s proposal. At NYS discretion, each Task Order May be established on an Hourly, Hourly not to exceed, or Deliverable basis using the titles and descriptions found in RFP Section 3.1.8: Contractor Personnel Roles and Responsibilities, and hourly rates in Attachment 1 - Financial Proposal, Optional Services.

The Contractor’s personnel designated to perform Implementation work under the awarded Contract and resulting executed Task Orders are subject to State approval prior to commencement of the work. The State approval process may include review of the proposed staff member’s resume, an interview, reference checks and background checks. The State Shall approve replacements of Contractor personnel.

Upon the Parties’ acceptance of the terms of the Task Order, and Approval by the NYS Office of the State Comptroller (OSC) for those Task Orders with a total value exceeding $50,000, the Awarded Contractor Shall perform the work outlined in such Task Order.

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SECTION 4 - PROCUREMENT PROCESS

4.1 METHOD OF AWARDITS Will make an award for the Services described in this RFP to a responsive and responsible Bidder on a “Best Value” basis. Best Value means that the Proposal that optimizes quality, cost, and efficiency among responsive and responsible Bidders Shall be selected for award (State Finance Law, Article 11, Section 163).

4.2 ADMINISTRATIVE REQUIREMENTS AND INFORMATION

4.2.1 Inquiries from Bidders New York State Finance Law §§139-j and 139-k imposes certain restrictions on communication between NYS and Bidders during a procurement. Bidders should submit all RFP inquiries, questions, or comments to its.sm.bestvalue@its.ny.gov using the Vendor Questions Form (Attachment 4) by the due date indicated on the Calendar of Events. No other method of inquires Will be accepted. Additional information is available at: http://ogs.ny.gov/Aboutogs/regulations/defaultAdvisoryCouncil.html

Administrative issues pertaining to sending/receiving email through the designated mailbox may be reported at (518) 402-2725.

4.2.2 Filing by Bidders of Mandatory Intent to Bid Bidders Must file a notice of Intent to Bid by the due date indicated on the Calendar of Events. Proposers who wish to bid must register their Intent to Bid with ITS by sending an email to Kelly Herba, Contract Manager via e-mail at its.sm.bestvalue.its.ny.gov. Vendors shall include their company name, address, phone,  contact name, title, and email address. Vendors must register no later than 03/24/2017 by 4:00 PM EST. Only registered vendors will be allowed to submit proposals for this RFP. By registering an Intent to Bid, the vendor is not obligated to submit a proposal. Failure to submit an Intent to Bid Will disqualify a Vendor from submitting a Proposal.

4.2.3 Communications from NYS to Vendors ITS has established a procurement website for the purpose of disseminating information relating to this procurement, and Vendors are encouraged to monitor the Site. The website URL is provided on the cover page of this RFP.

4.2.4 Procurement Record ITS Shall maintain a Procurement Record that documents the procurement process.

4.2.5 Building Access Procedures for Visitors and Hand Deliveries To access the ITS office building, all visitors Must present photo identification at the Security Desk and comply with other requirements. Bidders who intend to hand-deliver Proposals or utilize independent courier Services should allow extra time to comply with these procedures. Bidders hand-delivering their Proposals should ask the security personnel at the security desk to call the Designated Contact(s) indicated in this RFP or the Procurement and Contracts Support Unit. Building Access procedures may change or be modified at any time. Bidders assume all risks for timely, properly submitted hand deliveries.

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4.3 NO LATE SUBMISSIONSAll Proposals Must be submitted and received by the Proposal submission dates and times specified in this RFP. Proposals received after the Proposal Submission Deadline Shall be rejected.Faxed Proposals and electronic submission Will not be accepted. If Proposal packaging labels are not sufficient to identify the contents, ITS reserves the right to open packages for the purpose of identifying the source and contents of the package. All materials submitted by the Bidder become the property of the State of New York Office of Information Technology Services and may be returned only at the sole discretion of ITS.

SECTION 5 - PROPOSAL REQUIREMENTS

5.1 PACKAGE LABELAll Proposals Must have a label on the outside of the package or shipping container with the following information:

RFP C000468 Enterprise Multi-Channel Payment Solution - PROPOSAL ENCLOSED

NOT TO BE OPENED EXCEPT BY AUTHORIZED PERSONNEL

5.2 MULTIPLE SUBMISSIONSBidders may submit more than one Proposal for the purpose of offering alternative solutions but each Proposal Must meet all of the Mandatory requirements of the RFP, be complete in itself, and Must not reference or incorporate portions of another Proposal submitted by Bidder. Multiple Proposals received from the same Bidder Will be separately evaluated by ITS as if each Proposal were the sole submission of the Bidder.

5.3 GENERAL REQUIREMENTS FOR PROPOSALSBidders Must submit a complete response to this RFP that satisfies the requirements set forth below. The RFP should be submitted in three separately sealed and labeled parts (Technical Proposal, Financial Proposal, and Administrative Proposal). The technical Proposal Shall contain 9 separate original signed hard copies and the corresponding electronic media (flash drive). The administrative and financial Proposals Shall contain 4 separate original signed hard copies and the corresponding electronic media (flash drive). Failure to do so may render the Bidder’s Proposal non responsive. A Proposal check list is included in this RFP as Attachment 22.

Proposals that make extensive use of color photographs or illustrations, or that include separate brochures or marketing materials and overly elaborate embellishments, are discouraged.

All Proposals submitted in response to this RFP, Must be written in the English language with quantities expressed using Arabic numerals and United States Dollars ($ USD), as applicable.

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5.4 TECHNICAL, FINANCIAL AND ADMINISTRATIVE PROPOSAL REQUIREMENTS

5.4.1 Please see Attachment 22 Proposal Checklist for the technical, financial and administrative Proposal requirements.

5.4.2 Financial Proposal

There are different types of fees associated with the selected Multi-channel Payment Solution, as reflected in Attachment 1 as follows:

5.4.3 Tiered Pricing Tiered pricing payment processing fees will be paid on a monthly basis and such fees will be based on an interchange plus model. Under this model, the Contractor will pass through, at no additional cost to the State, network interchange fees associated with the payment methods. Additionally, the Contractor’s fee is a percentage of total revenue deposited in the State’s account.

The Contractor’s percent fee is as noted in Attachment 1 – Financial Proposal, Tab 3 - Tiered Pricing. Pricing tiers shall be determined by the aggregate value of all transactions conducted through this RFP for the 12 prior months for which transactions have been conducted. For the initial period of transactions prior to the first 12 month period, tiers shall be determined by aggregating months 1 through 11, successively.

5.4.4 Device Hardware, Software and Maintenance

NYS seeks to either purchase or lease the required hardware and software necessary to process in-person transactions.

In Attachment 1 – Financial Proposal, Tab 4 – Optional Hardware, Software and Maintenance/Support Costs for Purchased Hardware, Bidders should list the purchase price for all hardware and software, and related annual maintenance, necessary for in-person payment processing.

In Attachment 1 – Financial Proposal, Tab 5 - Optional Hardware, and Maintenance/Support Costs for Leased Hardware, Bidders should list all monthly fees associated with leasing hardware and software necessary for in-person payment processing. Such fees should be all inclusive and assume the Contractor is responsible for maintenance, regular updates and break/fix services.

5.4.5 Professional Services

In Attachment 1 – Financial Proposal, Tab 6 – Optional Professional Services, Bidders should list all fully loaded hourly rates for all titles that would be used to fulfill optional Task Orders. Fully loaded hourly rates must be provided, and must be inclusive of all direct and indirect costs, fees, profit and all overhead expenses, including, but not limited to, all training, travel costs, parking fees, and other ancillary fees and costs including permits, licenses, and insurance.

5.4.6 Inventory System

NYS seeks to purchase the inventory capabilities of the selected solution on a case by case basis, based on agency need. In Attachment 1 – Financial Proposal, Tab 7 – Inventory System, Bidders should provide the one-time implementation costs for the proposed solution’s inventory capability and any ongoing fees associated with its use.

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5.4.7 Technical Proposal Please see Attachment 22 Proposal Checklist for the technical Proposal requirements.

5.4.8 Administrative Proposal Please see Attachment 22 Proposal Checklist for the administrative Proposal requirements.

5.5 EVALUATION METHODOLOGYThe evaluation process Will be conducted in a comprehensive and impartial manner. The Technical Proposal Will be weighted at 70%, and the Financial Proposal Will be weighted at 30%. There Will be no points awarded to the Administrative Proposal.

5.5.1 Proposal Completeness Review After the Proposal opening, each Proposal Will be screened for completeness and conformance with the RFP requirements. Proposals that do not meet the RFP requirements may be deemed non-responsive, removed from further consideration, and the Bidder notified accordingly. Proposals that pass Will proceed to the Technical Evaluation.

5.5.2 Minimum Qualifications Evaluation Proposals submitted by Bidders Will be evaluated on a Pass/Fail basis to determine whether they satisfy the RFP’s minimum qualifications. Proposals that fail to meet the minimum qualifications Will be deemed non-responsive, Will not be further evaluated, and the Bidder Will be notified accordingly. Passing Proposals next proceed to the Technical and Financial Evaluations. Bidders may still be disqualified if it is later determined that the Bidder did not meet all of the RFP minimum qualifications and Should not have qualified to move on to the Technical and Financial Evaluations stage.

5.5.3 Technical Proposal Evaluation (60 points) The Technical Evaluators Will independently score each written Technical Proposal using a weighted average to calculate the Technical Score for each Responsive Bidder.

5.5.4 Financial Proposal Evaluation (30 points) The Financial Proposal evaluation Will be based on a maximum score of _30_ points which Will be allocated to the Proposal with the lowest price. All other responsive Proposals Will receive a proportionate score based on the relation of their Financial Proposal to the Proposal with the lowest price, using this formula:

Financial Proposal points awarded = _30_ points x (Lowest Price Financial Proposal/Price of Proposal Being Evaluated)

5.5.5 Bidder Interview and Product Demonstration (Technical Proposal Evaluation) (10 points)

ITS Will contact the Bidders susceptible to award with the highest combined score after 5.5.3 Technical Proposal Evaluation and 5.5.4 Financial Proposal Evaluation to schedule a Mandatory interview and Product demonstration. ITS Will score the interview and demonstration as part of the Technical Proposal Evaluation. Interviews and demonstrations Will be limited to two hours in length and may be conducted in-person in the Albany NY area.

5.5.6 Final Composite Score A final composite score Will be calculated by adding the Technical Proposal points to the Financial Proposal points. The Proposals Will be ranked based on the combined scores. The Bidder with the

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highest score may receive a tentative award, subject to successful Contract negotiations and approval by the Attorney General and Office of the State Comptroller.

Should more than one Bidder get the same total score, the tie Will be broken using the Financial Proposal score. When price and other factors are found to be substantially equivalent, ITS Will select the winning Bidder at its sole discretion.

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