no later than - dgsweb.state.pa.us · submitted via email and must be received no later than 1:30...

BUREAU OF ADMINISTRATIVE SERVICES

PROCUREMENT DIVISION LABOR AND INDUSTRY BUILDING

SEVENTH AND FORSTER STREETS, ROOM 208 HARRISBURG, PA 17120

717-783-0326 Fax: 717-787-0688 www.dli.state.pa.us

Date: November 29, 2006 Subject: RFP BUCBA/SWIF-2006-1 Electronic Payment Card Services For Unemployment Compensation Benefit Payments And State Workers’ Insurance Fund Indemnity Payments From: Cheryl Kleeman Procurement Manager To: Interested Service Providers

You are invited to submit a proposal to the Department of Labor and Industry (L&I) in accordance with the subject request for proposal (RFP). For your convenience, all portions of this RFP will be available on the DGS website (http://www.dgs.state.pa.us) by selecting Procurement and Bid Opportunities Search or by using the following link www.dgsweb.state.pa.us/comod/main.asp.

Interested Service Providers must submit 10 hard copies and 1 electronic copy

(on compact disc) of their proposal to the L&I Procurement Office. Proposals must be received at the above address No Later Than 1:30 P.M. EDT, on January 25, 2007. Late proposals will not be considered regardless of the reason.

All questions regarding this RFP should be submitted to my attention in writing, via email. Entitle the subject line of email “RFP BUCBA/SWIF-2006-1” and send to [email protected]. Do not contact this office via phone. Questions must be submitted via email and must be received No Later Than 1:30 P.M. EDT, on December 11, 2006. Answers to all questions will be incorporated into this RFP and posted with this document on the DGS website.

Thank you.

i

REQUEST FOR PROPOSALS

FOR

ELECTRONIC PAYMENT CARD SERVICES FOR UNEMPLOYMENT COMPENSATION BENEFIT PAYMENTS

AND STATE WORKERS’ INSURANCE FUND INDEMNITY PAYMENTS

ISSUING OFFICE

COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF LABOR & INDUSTRY

BUREAU OF UNEMPLOYMENT COMPENSATION BENEFITS AND ALLOWANCES 7TH AND FORSTER STREETS

HARRISBURG, PA 17121

BUCBA/SWIF-2006-1

DATE OF ISSUANCE

NOVEMBER 29, 2006

ii

REQUEST FOR PROPOSALS FOR

ELECTRONIC PAYMENT CARD SERVICES FOR UNEMPLOYMENT COMPENSATION BENEFIT PAYMENTS

AND STATE WORKERS’ INSURANCE FUND INDEMNITY PAYMENTS

RFP NUMBER: BUCBA/SWIF-2006-1

TABLE OF CONTENTS CALENDAR OF EVENTS page iii Part I—GENERAL INFORMATION page 1 Part II—PROPOSAL REQUIREMENTS page 11 Part III—CRITERIA FOR SELECTION page 19 Part IV—WORK STATEMENT page 23 APPENDIX A, STANDARD CONTRACT TERMS AND CONDITIONS APPENDIX B, DOMESTIC WORKFORCE UTILIZATION CERTIFICATION APPENDIX C, PROPOSAL COVER SHEET APPENDIX D, REQUIREMENTS FOR CONSIDERATION APPENDIX E, CONFIDENTIALITY AGREEMENT APPENDIX F, LETTER OF CREDIT WITH ACKNOWLEDGEMENT OF TERMS

iii

CALENDAR OF EVENTS The Commonwealth will make every effort to adhere to the following schedule:

Activity Responsibility Date

Publication date Issuing Office November 29, 2006

Deadline to submit Questions via email to: [email protected].

Potential Offerors December 11, 2006 1:30 P.M.

Answers to Potential Offeror questions posted to the DGS Web site (http://www.dgsweb.state.pa.us/comod/main.asp) no later than this date.

Issuing Office December 20, 2006

Sealed proposal must be received by the Issuing Office at: Commonwealth of Pennsylvania Department of Labor & Industry Bureau of Administrative Services Procurement Section Room 208 Labor & Industry Building 7th and Forster Streets Harrisburg, PA 17121

Offerors January 25, 2007

1:30 PM EST

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PART I

GENERAL INFORMATION

I-1. Purpose. This request for proposals (RFP) provides to those interested in submitting proposals for the subject procurement (“Offerors”) sufficient information to enable them to prepare and submit proposals for the Department of Labor & Industry’s (L&I) consideration on behalf of the Commonwealth of Pennsylvania (“Commonwealth”) to satisfy a need for Electronic Payment Card (EPC) Services for Unemployment Compensation (UC) Benefit Payments and State Workers’ Insurance Fund (SWIF) Indemnity Payments (“Project”) at no cost to L&I. I-2. Issuing Office. L&I’s Bureau of UC Benefits and Allowances and SWIF (“Issuing Office”) have issued this RFP on behalf of the Commonwealth. The sole point of contact in the Commonwealth for this RFP shall be Cheryl Kleeman, Procurement Manager, Commonwealth of Pennsylvania, Department of Labor & Industry, Bureau of Administrative Services, Procurement Section, Room 208 Labor & Industry Building, 7th and Forster Streets, Harrisburg, PA 17121, Email: [email protected], the Issuing Office for this RFP. (Please refer all inquiries to the Issuing Office.) I-3. Scope. 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 Offerors must meet to be eligible for consideration; general evaluation criteria; and other requirements specific to this RFP. I-4. Problem Statement. L&I is seeking offers to implement an electronic payment solution at no cost to L&I for the disbursement of UC benefit payments and SWIF indemnity payments using an EPC that is either VISA or MasterCard branded. For planning purposes, L&I anticipates implementation in mid-2007, although this time frame is subject to change. L&I requires the services specified in this RFP and any resulting Contract to be at no cost to L&I. Costs and fees to the Cardholder are negotiable as part of this Contract and will be evaluated as part of the Criteria for Selection (refer to Part III, Section III-4 of this RFP). Additional detail is provided in Part IV of this RFP. I-5. Type of Contract. It is proposed that if the Issuing Office enters into a Contract as a result of this RFP, it will be a no fee Contract containing the Standard Contract Terms and Conditions as referenced in Appendix A of this RFP and available at http://www.dgs.state.pa.us/dgs/lib/dgs/forms/comod/procurementforms/std274_sap.doc. The Issuing Office, in its sole discretion, may undertake negotiations with Offerors whose proposals, in the judgment of the Issuing Office, show them to be qualified, responsible and capable of performing the Project.

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I-6. Rejection of Proposals. The Issuing Office reserves the right, in its sole and complete discretion, to reject any proposal received as a result of this RFP. I-7. Incurring Costs. The Issuing Office is not liable for any costs the Offeror incurs in preparation and submission of its proposal, in participating in the RFP process or in anticipation of award of the Contract. I-8. Preproposal Conference. There will be no preproposal conference for this RFP. If there are any questions, please forward them to the Issuing Office in accordance with Part I, Section I-9. I-9. Questions & Answers. If an Offeror has any questions regarding this RFP, the Offeror must submit the questions by email (with the subject line “RFP BUCBA/SWIF-2006-1 Question”) to the Issuing Office named in Part I, Section I-2 of the RFP. If the Offeror has questions, they must be submitted via email no later than the date indicated on the Calendar of Events. The Offeror shall not attempt to contact the Issuing Office by any other means. The Issuing Office shall post the answers to the questions on the DGS Web site by the date stated on the Calendar of Events. All questions and responses as posted on the DGS Web site are considered as an addendum to, and part of, this RFP in accordance with RFP Part I, Section I-10. Each Offeror shall be responsible to monitor the DGS Web site 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 within 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. The required protest process for Commonwealth procurements is described on the DGS Web site. I-10. Addenda 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 DGS Web site at www.dgsweb.state.pa.us/comod/main.asp. It is the Offeror’s responsibility to periodically check the Web site for any new information or addenda to the RFP. Answers to the questions asked during the Questions & Answers period also will be posted to the Web site as an addendum to the RFP. I-11. Response Date. To be considered for selection, hard copies of proposals must arrive at the Issuing Office on or before the time and date specified in the RFP Calendar of Events. The Issuing Office will not accept proposals via email or facsimile transmission. Offerors who send proposals by mail or other delivery service should allow sufficient delivery time to ensure timely receipt of their proposals. If, due to inclement weather, natural disaster, or any other cause, the Commonwealth office location to which proposals are to be returned is closed on the proposal response date, the deadline for submission will be automatically extended until the next Commonwealth business day on which the office is open, unless the Issuing Office otherwise notifies Offerors. The hour for submission of proposals shall remain the same. The Issuing Office will reject, unopened, any late proposals.

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I-12. Proposals. To be considered, Offerors should submit a complete response to this RFP, using the format provided in Part II, providing ten (10) paper copies of the proposal to the Issuing Office. In addition to the paper copies of the proposal, Offerors shall submit one (1) complete and exact copy of the technical proposal on CD-ROM in Microsoft Office or Microsoft Office-compatible format. The Offeror shall make no other distribution of its proposal to any other Offeror or Commonwealth official or Commonwealth consultant. Each proposal page should be numbered for ease of reference. An official authorized to bind the Offeror to its provisions must sign the proposal. For this RFP, the proposal must remain valid for 120 days or until a Contract is fully executed. If the Issuing Office selects the Offeror’s proposal for award, the contents of the selected Offeror’s proposal will become, except to the extent the contents are changed through Best and Final Offers or negotiations, contractual obligations. The information in the proposal will become a public record upon Contract execution, except as limited by Section 106 (b)(1) of the Commonwealth Procurement Code, 62 Pa. C.S. § 106 (b)(1). Each Offeror submitting a proposal specifically waives any right to withdraw or modify it, except that the Offeror may withdraw its proposal by written notice received at the Issuing Office’s address for proposal delivery prior to the exact hour and date specified for proposal receipt. An Offeror or its authorized representative may withdraw its proposal in person prior to the exact hour and date set for proposal receipt, provided the withdrawing person provides appropriate identification and signs a receipt for the proposal. An Offeror may modify its submitted proposal prior to the exact hour and date set for proposal receipt only by submitting a new sealed proposal or sealed modification which complies with the RFP requirements. I-13. Disadvantaged Business Information. The Issuing Office encourages participation by small disadvantaged businesses as prime contractors, joint ventures and subcontractors/suppliers and by socially disadvantaged businesses as prime contractors. Small Disadvantaged Businesses are small businesses that are owned or controlled by a majority of persons, not limited to members of minority groups, who have been deprived of the opportunity to develop and maintain a competitive position in the economy because of social disadvantages. The term includes:

a. Department of General Services Bureau of Minority and Women Business Opportunities (BMWBO)-certified minority business enterprises (MBEs) and women business enterprises (WBEs) that qualify as small businesses; and

b. United States Small Business Administration-certified small disadvantaged

businesses or 8(a) small disadvantaged business concerns. Small businesses are businesses in the United States that are independently owned, are not dominant in their field of operation, employ no more than 100 persons and earn less than $20 million in gross annual revenues ($25 million in gross annual revenues for those businesses in the information technology sales or service business). Socially disadvantaged businesses are businesses in the United States that BMWBO determines are owned or controlled by a majority of persons, not limited to members of minority groups,

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who are subject to racial or ethnic prejudice or cultural bias, but which do not qualify as small businesses. In order for a business to qualify as “socially disadvantaged,” the Offeror must include in its proposal clear and convincing evidence to establish that the business has personally suffered racial or ethnic prejudice or cultural bias stemming from the business person’s color, ethnic origin or gender. Questions regarding this Program can be directed to:

Department of General Services Bureau of Minority and Women Business Opportunities Room 611, North Office Building Harrisburg, PA 17125 Phone: (717) 787-6708 Fax: (717) 772-0021 Email: [email protected]

Program information and a database of BMWBO-certified minority- and women-owned businesses can be accessed at www.dgs.state.pa.us, DGS Keyword: BMWBO. The federal vendor database can be accessed at http://www.ccr.gov by clicking on Dynamic Small Business Search (certified companies are so indicated). I-14. Information Concerning Small Businesses in Enterprise Zones. The Issuing Office encourages participation by small businesses, whose primary or headquarters facility is physically located in areas the Commonwealth has identified as Designated Enterprise Zones, as prime contractors, joint ventures and subcontractors/suppliers. The definition of headquarters includes, but is not limited to, an office or location that is the administrative center of a business or enterprise where most of the important functions of the business are conducted or concentrated and location where employees are conducting the business of the company on a regular and routine basis so as to contribute to the economic development of the geographical area in which the office or business is geographically located. Small businesses are businesses in the United States that are independently owned, are not dominant in their field of operation, employ no more than 100 persons and earn less than $20 million in gross annual revenues ($25 million in gross annual revenues for those businesses in the information technology sales or service business). There is no database or directory of small businesses located in Designated Enterprise Zones. Information on the location of Designated Enterprise Zones can be obtained by contacting:

Aldona M. Kartorie Center for Community Building PA Department of Community and Economic Development 4th Floor, Commonwealth Keystone Building 400 North Street Harrisburg, PA 17120-0225

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Phone: (717) 720-7409 Fax: (717) 787-4088 Email: [email protected]

I-15. Economy of Preparation. Offerors should prepare proposals simply and economically, providing a straightforward, concise description of the Offeror’s ability to meet the requirements of the RFP. I-16. Alternate Proposals. The Issuing Office has identified the basic approach to meeting its requirements, allowing Offerors to be creative and propose their best solution to meeting these requirements. The Issuing Office will not accept alternate proposals. I-17. Discussions for Clarification. Offerors may be required to make an oral or written clarification of their proposals to the Issuing Office to ensure thorough mutual understanding and Offeror responsiveness to the solicitation requirements. The Issuing Office will initiate requests for clarification. I-18. Prime Contractor Responsibilities. The Contract will require the Selected Offeror to assume responsibility for all services offered in its proposal whether it produces them itself or by subcontract. The Issuing Office will consider the Selected Offeror to be the sole point of contact with regard to contractual matters. I-19. Proposal 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:

i) Under the provisions of any Commonwealth or United States statute or regulation; or

ii) By rule or order of any court of competent jurisdiction.

After a Contract is executed, however, the successful proposal is considered a public record under the Right-to Know Law, 65 P.S. § 66.1—66.9, and therefore subject to disclosure. The financial capability information submitted under Part II, Section II-7 shall not be disclosed in the final Contract. All material submitted with the proposal becomes the property of the Commonwealth of Pennsylvania 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. I-20. Best and Final Offers. The Issuing Office reserves the right to conduct discussions with Offerors for the purpose of obtaining “best and final offers.” To obtain best and final offers from Offerors, the Issuing Office may do one or more of the following:

i) Schedule oral presentations; and

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ii) Request revised proposals. The Issuing Office will limit any discussions to responsible Offerors (those that have submitted responsive proposals and possess the capability to fully perform the Contract requirements in all respects and the integrity and reliability to assure good faith performance) whose proposals the Issuing Office has determined to be reasonably susceptible of being selected for award. The Criteria for Selection found in Part III, Section III-4, shall also be used to evaluate the best and final offers. Dollar commitments to Disadvantaged Businesses and Enterprise Zone Small Businesses can be reduced only in the same percentage as the percent reduction in the total price offered through negotiations, including the online auction. I-21. News Releases. Offerors shall not issue news releases, Internet postings, advertisements or any other public communications pertaining to this Project without prior written approval of the Issuing Office, and then only in coordination with the Issuing Office. I-22. Restriction of Contact. From the issue date of this RFP until the Issuing Office selects a proposal for award, the Issuing Officer is the sole point of contact concerning this RFP. Any violation of this condition may be cause for the Issuing Office to reject the offending Offeror’s proposal. If the Issuing Office later discovers that the Offeror has engaged in any violations of this condition, the Issuing Office may reject the offending Offeror’s proposal or rescind its Contract award. Offerors must agree not to distribute any part of their proposals beyond the Issuing Office. An Offeror who shares information contained in its proposal with other Commonwealth personnel and/or competing Offeror personnel may be disqualified. I-23. Debriefing Conferences. Offerors whose proposals are not selected will be notified of the name of the selected Offeror and given the opportunity to be debriefed. The Issuing Office will schedule the time and location of the debriefing. The debriefing will not compare the Offeror with other Offerors, other than the position of the Offeror’s proposal in relation to all other Offeror proposals. An Offeror’s exercise of the opportunity to be debriefed does not constitute the filing of a protest. I-24. Issuing Office Participation. Offerors shall provide all services, supplies, facilities, and other support necessary to complete the identified work. I-25. Term of Contract. The term of the Contract will commence on the Effective Date and will end three (3) years after the Effective Date. The Contract may be renewed or extended for two (2) additional one (1) year periods. The Issuing Office will fix the Effective Date after the Contract has been fully executed by the Selected Offeror and by the Commonwealth and all approvals required by Commonwealth contracting procedures have been obtained. The Selected Offeror shall not start the performance of any work prior to the Effective Date of the Contract and the Commonwealth shall not be liable to pay the Selected Offeror for any service or work performed or expenses incurred before the Effective Date of the Contract. I-26. Offeror’s Representations and Authorizations. By submitting its proposal, each Offeror understands, represents, and acknowledges that:

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a. All of the Offeror’s information and representations in the proposal are material and important, and the Issuing Office may rely upon the contents of the proposal in awarding the Contract(s). The Commonwealth shall treat any misstatement, omission or misrepresentation as fraudulent concealment of the true facts relating to the Proposal submission, punishable pursuant to 18 Pa. C.S. § 4904.

b. The Offeror has not attempted, nor will it attempt, to induce any firm or person to

refrain from submitting a proposal on this Contract, or to submit a proposal higher than this proposal, or to submit any intentionally high or noncompetitive proposal or other form of complementary proposal.

c. The Offeror makes its proposal in good faith and not pursuant to any agreement or

discussion with, or inducement from, any firm or person to submit a complementary or other noncompetitive proposal.

d. To the best knowledge of the person signing the proposal for the Offeror, the Offeror,

its affiliates, subsidiaries, officers, directors, and employees are not currently under investigation by any government agency and have not in the last four (4) years been convicted or found liable for any act prohibited by State or Federal law in any jurisdiction, involving conspiracy or collusion with respect to bidding or proposing on any public Contract, except as the Offeror has disclosed in its proposal.

e. To the best of the knowledge of the person signing the proposal for the Offeror and

except as the Offeror has otherwise disclosed in its proposal, the Offeror has no outstanding, delinquent obligations to the Commonwealth including, but not limited to, any state tax liability not being contested on appeal or other obligation of the Offeror that is owed to the Commonwealth.

f. The Offeror is not currently under suspension or debarment by the Commonwealth,

any other state or the federal government, and if the Offeror cannot so certify, then it shall submit along with its proposal a written explanation of why it cannot make such certification.

g. The Offeror has not made, under separate contract with the Issuing Office, any

recommendations to the Issuing Office concerning the need for the services described in its proposal or the specifications for the services described in the proposal.

h. Each Offeror, by submitting its proposal, authorizes Commonwealth agencies to

release to the Commonwealth information concerning the Offeror's Pennsylvania taxes, unemployment compensation and workers’ compensation liabilities.

i. Until the Selected Offeror receives a fully executed and approved written Contract

from the Issuing Office, there is no legal and valid Contract, in law or in equity, and the Offeror shall not begin to perform.

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I-27. Notification of Selection. The Issuing Office will notify the Selected Offeror in writing of its selection for negotiation after the Issuing Office has determined, taking into consideration all of the evaluation factors, the proposal that is the most advantageous to the Issuing Office. I-28. RFP Protest Procedure. The RFP Protest Procedure is on the DGS Web site at http://www.dgs.state.pa.us. A protest by a party not submitting a proposal must be filed within seven (7) days after the protesting party knew or should have known of the facts giving rise to the protest, but no later than the proposal submission deadline specified in the Calendar of Events of the RFP. Offerors may file a protest within seven (7) days after the protesting Offeror knew or should have known of the facts giving rise to the protest, but in no event may an Offeror file a protest later than seven (7) days after the date the notice of award of the Contract is posted on the DGS Web site. The date of filing is the date of receipt of the protest. A protest must be filed in writing with the Issuing Office. I-29. Use of Electronic Versions of this RFP. This RFP is being made available by electronic means. If an Offeror electronically accepts the RFP, the Offeror acknowledges and accepts full responsibility to insure that no changes are made to the RFP. In the event of a conflict between a version of the RFP in the Offeror’s possession and the Issuing Office’s version of the RFP, the Issuing Office’s version shall govern. I-30. Definitions and Acronyms. Account: A compilation of all information regarding a Claimant’s receipt of UC benefits or SWIF indemnity payments by EPC, including the record of the amounts of money made available to the Claimant, the record of the Claimant’s transactions with his EPC and any other debits or credits charged to the Claimant, and the amount of money available to the Claimant through his EPC at any given time. APO: Army Post Office ATM: Automated Teller Machine – Device that accepts EPCs and, when activated by a Cardholder through use of a magnetic stripe on an EPC, is capable of dispensing currency directly from such device and responding to account inquiries. Benefit Year: The 52 consecutive calendar weeks beginning with the week for which an individual files a valid new claim for UC benefits. Cardholder: A UC Claimant or SWIF Claimant who has been issued an EPC. Claimant: Person filing an Unemployment Compensation or Workers’ Compensation claim. Contract: A written agreement between two or more parties creating obligations that are enforceable or otherwise recognizable at law, the performance of which the law recognizes to be a duty and for breach of which the law confers a remedy. Credit: UC or WC benefit payments deposited to a Cardholder’s account or a refund from a merchant. CSR: Customer Service Representative Days: All references to days shall be calendar days unless specified otherwise. DUA: Disaster Unemployment Assistance EFT: Electronic Fund Transfer EPC: Generally, an Electronic Payment Card – In relation to this RFP, an EPC is an electronic payment card that the Cardholder may use to electronically access his UC benefits or SWIF

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indemnity payments, which functions by directly or indirectly debiting an account established in a financial institution to receive electronic fund transfers from L&I. Extended Benefits: Special programs designed to address periods of high unemployment. FDIC: Federal Deposit Insurance Corporation FPO: Fleet Post Office IVR: Interactive Voice Response System - A transaction system allowing phone callers to use an ordinary telephone to interact with a computer through speech or dialed instructions. Each response by the caller triggers another recorded message until the transaction is completed. L&I: Pennsylvania Department of Labor & Industry. L&I also refers to the Pennsylvania Department of Treasury acting on behalf of L&I in the transfer of funds. Load: The dollar value transferred to, or credited, to a Cardholder’s account as determined by L&I. NACHA: National Automated Clearing House Association is a not-for-profit association that represents more than 11,000 financial institutions through direct memberships and a network of regional payments associations, and 650 organizations through its industry councils. NACHA develops operating rules and business practices for the Automated Clearing House (ACH) Network and for electronic payments in the areas of Internet commerce, electronic bill and invoice presentment and payment, e-checks, financial electronic data interchange, international payments, and electronic benefits services. The Web site for ACH Rules online is: http://www.achrulesonline.org/. NCUSIF: National Credit Union Administration – Share Insurance Fund New Claim: A claim for UC benefits or SWIF indemnity payments that establishes a monetary entitlement to benefits provided that the Claimant meets all other ongoing provisions for eligibility. Offeror: The vendor making an offer in response to this RFP. PIN: Personal Identification Number – A number associated with the EPC, that is known only to the Cardholder and the EPC issuer. This number is used for verification of Cardholder identity. POS: Point of Sale - A retail establishment or Internet location from which Cardholders can purchase goods or services using their EPCs. PPD: Pre-Authorized Payment and Deposit - A NACHA format for transmitting payment related data. Refund: When money is returned to the Cardholder’s account. An example would be when an item is returned to the merchant. Regulation E: 12 CFR Part 205 issued by the Board of Governors of the Federal Reserve System pursuant to the Electronic Fund Transfer Act (15 U.S.C. § 1693 et seq.) establishes the basic rights, liabilities, and responsibilities of consumers who use electronic fund transfer services and of financial institutions that offer these services. The primary objective is the protection of individual consumers engaging in electronic fund transfers. Regulation E may be accessed online at: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=e721e726042c8db3782569d9e7cf6eef&rgn=div5&view=text&node=12:2.0.1.1.5&idno=12 Reversal: Consistent with NACHA regulations, the process of removing money from a Cardholder’s account due to an error. Selected Offeror: The vendor awarded any Contract resulting from this solicitation. SWIF: State Workers’ Insurance Fund

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TRA: Trade Readjustment Allowance TTY: Teletypewriter as a common name for telecommunications device for the deaf. UC: Unemployment Compensation WC: Workers’ Compensation

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PART II

PROPOSAL REQUIREMENTS 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 Disadvantaged Business cost data should be kept separate from and not included in the Technical Submittal. Each Proposal shall consist of the following three (3) separately sealed submittals:

a. Technical Submittal, which shall be a response to RFP Part II, Sections II-1 through II-8;

b. Disadvantaged Business Submittal, in response to RFP Part II, Section II-9; and

c. Domestic Workforce Utilization Certification Submittal, in response to RFP

Part II, Section II-11. 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. II-1. Statement of the Problem. State in succinct terms your understanding of the problem presented or the service required by this RFP. II-2. Management Summary. Include a narrative description of the proposed effort and a list of the items to be delivered or services to be provided. II-3. Work Plan. Describe in narrative form your technical plan for accomplishing the work. Describe how your plan will address project management, acceptance testing, quality management, change management, and risk management. Specifically describe the initial conversion process from payment via checks to payment via EPCs. Describe the timeline to be ready to issue EPCs and accept deposits from L&I. L&I is interested in having this ready within 90 days of Contract signing. If your plan will take longer than 90 days, please explain the reason for that. If appropriate, indicate recommended training of L&I personnel (refer to Part II, Section II-6 of this RFP). Use the task descriptions in Part IV of this RFP as your reference point. Modifications of the task descriptions are permitted; however, reasons for changes should

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be fully explained. 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. II-4. Prior Experience. Describe the Offeror’s experience in providing EPC services in general, and in particular, related to UC and WC, either currently or in the past. Summarize and provide examples of the scope and services in the performance of these projects. Describe experience in working with government agencies. Specifically describe interaction with customers and the handling of customer inquiries. 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. Provide letters of reference from three (3) previous clients knowledgeable of the performance and telephone number for each reference. Preferably, at least one (1) reference will be knowledgeable of the specific performance in providing EPC services in general, and in particular, EPC services with respect to UC and WC. II-5. Personnel. Include the number 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. For key personnel (project manager, team lead, and assigned project team members), include the employee’s name and, through a resume or similar document, the Project personnel’s education and experience in providing EPC services, particularly for UC and WC benefit payments. Indicate the responsibilities each individual will have in this Project and how long each has been with your company. Identify by name any subcontractors you intend to use and the services they will perform. II-6. Training. If appropriate, indicate recommended training of L&I personnel. Include the type of L&I personnel to be trained, the number to be trained, duration of the program, place of training, curricula, training materials to be used, number and frequency of sessions, and number and level of instructors. II-7. Financial Responsibility and Disclosure of Ongoing Litigation. 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 Commonwealth. The Offeror must include the disclosure of any ongoing litigation or any adverse actions (e.g., Contract termination, damages, regulatory action) against them in Pennsylvania or in other state(s) within the past three (3) years. The disclosure must include the date of initiation and if resolved, the resolution, the nature of the litigation or adverse action, and the parties involved in the action.

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II-8. Objections and Additions to Standard Contract Terms and Conditions. The Offeror will identify which, if any, of the terms and conditions (referenced in Appendix A of this RFP) it would like to renegotiate and what additional terms and conditions the Offeror would like to add to the standard Contract terms and conditions. The Offeror’s failure to make a submission under this paragraph will result in its waiving its right to do so later, but the Issuing Office may consider late objections and requests for additions if to do so, in the Issuing Office’s sole discretion, would be in the best interest of the Commonwealth. 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, 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. The Issuing Office will not consider a proposal that objects to Paragraph 14 of the Standard Terms and Conditions attached hereto as Appendix A. II-9. Disadvantaged Business Submittal.

a. Disadvantaged Business Information.

i) To receive credit for being a Small Disadvantaged Business or a Socially Disadvantaged Business or for entering into a joint venture agreement with a Small Disadvantaged Business or for subcontracting with a Small Disadvantaged Business (including purchasing supplies and/or services through a purchase agreement), an Offeror must include proof of Disadvantaged Business qualification in the Disadvantaged Business Submittal of the proposal, as indicated below:

1) A Small Disadvantaged Businesses certified by BMWBO as an

MBE/WBE must provide a photocopy of their BMWBO certificate.

2) Small Disadvantaged Businesses certified by the U.S. Small

Business Administration pursuant to Section 8(a) of the Small Business Act (15 U.S.C. § 636(a)) as an 8(a) or small disadvantaged business must submit proof of U.S. Small Business Administration certification. The owners of such businesses must also submit proof of United States citizenship.

3) All businesses claiming Small Disadvantaged Business status,

whether as a result of BMWBO certification or U.S. Small

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Business Administration certification as an 8(a) or small disadvantaged business, must attest to the fact that the business has 100 or fewer employees.

4) All businesses claiming Small Disadvantaged Business status,

whether as a result of BMWBO certification or U.S. Small Business Administration certification as an 8(a) or small disadvantaged business, must submit proof that their gross annual revenues are less than $20,000,000 ($25,000,000 for those businesses in the information technology sales or service business). This can be accomplished by including a recent tax return or audited financial statement.

ii) All businesses claiming status as a Socially Disadvantaged Business must

include in the Disadvantaged Business Submittal of the proposal clear and convincing evidence to establish that the business has personally suffered racial or ethnic prejudice or cultural bias stemming from the business person’s color, ethnic origin or gender. The submitted evidence of prejudice or bias must:

1) Be rooted in treatment that the business person has experienced in

American society, not in other countries.

2) Show prejudice or bias that is chronic and substantial, not fleeting or insignificant.

3) Indicate that the business person’s experience with the racial or

ethnic prejudice or cultural bias has negatively impacted his entry into and/or advancement in the business world.

BMWBO shall determine whether the Offeror has established that a business is socially disadvantaged by clear and convincing evidence.

iii) In addition to the above verifications, the Offeror must include in the

Disadvantaged Business Submittal of the proposal the following information:

1) The name and telephone number of the Offeror’s (contact) person

for the Small Disadvantaged Business.

2) The business name, address, name and telephone number of the primary contact person for each Small Disadvantaged Business included in the proposal. The Offeror must specify each Small Disadvantaged Business to which it is making commitments. The Offeror will not receive credit for stating that it will find a Small

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Disadvantaged Business after the Contract is awarded or for listing several businesses and stating that one will be selected later.

3) The specific work, goods or services each Small Disadvantaged

Business will perform or provide.

4) The estimated dollar value of the Contract to each Small Disadvantaged Business.

5) Of the estimated dollar value of the Contract to each Small

Disadvantaged Business, the percent of the total value of services or products purchased or subcontracted that will be provided by the Small Disadvantaged Business directly.

6) The location where each Small Disadvantaged Business will

perform these services.

7) The timeframe for each Small Disadvantaged Business to provide or deliver the goods or services.

8) The amount of capital, if any, each Small Disadvantaged Business

will be expected to provide.

9) The form and amount of compensation each Small Disadvantaged Business will receive.

10) For a joint venture agreement, a copy of the agreement, signed by

all parties.

11) For a subcontract, a signed subcontract or letter of intent.

iv) The Offeror is required to submit only one (1) copy of its Disadvantaged Business Submittal. The submittal shall be clearly identified as Disadvantaged Business information and sealed in its own envelope, separate from the remainder of the proposal.

v) The Offeror must include the dollar value of the commitment to each

Small Disadvantaged Business in the same sealed envelope with its Disadvantaged Business Submittal. The following will become a contractual obligation once the Contract is fully executed:

1) The amount of the selected Offeror’s Disadvantaged Business

commitment;

2) The name of each Small Disadvantaged Business; and

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3) The services each Small Disadvantaged Business will provide, including the timeframe for performing the services.

vi) A Small Disadvantaged Business can be included as a subcontractor with

as many prime contractors as it chooses in separate proposals.

vii) An Offeror that qualifies as a Small Disadvantaged Business and submits a proposal as a prime contractor is not prohibited from being included as a subcontractor in separate proposals submitted by other Offerors.

b. Enterprise Zone Small Business Participation.

i) To receive credit for being an enterprise zone small business or entering

into a joint venture agreement with an enterprise zone small business or subcontracting with an enterprise zone small business, an Offeror must include the following information in the Disadvantaged Business Submittal of the proposal:

1) Proof of the location of the business’ headquarters (such as a lease

or deed or Department of State corporate registration), including a description of those activities that occur at the site to support the other businesses in the enterprise zone.

2) Confirmation of the enterprise zone in which it is located (obtained

from the local enterprise zone office).

3) Proof of United States citizenship of the owners of the business.

4) Certification that the business employs 100 or fewer employees.

5) Proof that the business’ gross annual revenues are less than $20,000,000 ($25,000,000 for those businesses in the information technology sales or service business). This can be accomplished by including a recent tax return or audited financial statement.

6) Documentation of business organization, if applicable, such as

articles of incorporation, partnership agreement or other documents of organization.

ii) In addition to the above verifications, the Offeror must include in the

Disadvantaged Business Submittal of the proposal the following information:

1) The name and telephone number of the Offeror’s project (contact)

person for the Enterprise Zone Small Business.

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2) The business name, address, name and telephone number of the primary contact person for each Enterprise Zone Small Business included in the proposal. The Offeror must specify each Enterprise Zone Small Business to which it is making commitments. The Offeror will not receive credit for stating that it will find an Enterprise Zone Small Business after the Contract is awarded or for listing several businesses and stating that one will be selected later.

3) The specific work, goods or services each Enterprise Zone Small

Business will perform or provide.

4) The estimated dollar value of the Contract to each Enterprise Zone Small Business.

5) Of the estimated dollar value of the Contract to each Enterprise

Zone Small Business, the percent of the total value of services or products purchased or subcontracted that each Enterprise Zone Small Business will provide.

6) The location where each Enterprise Zone Small Business will

perform these services.

7) The timeframe for each Enterprise Zone Small Business to provide or deliver the goods or services.

8) The amount of capital, if any, each Enterprise Zone Small Business

will be expected to provide.

9) The form and amount of compensation each Enterprise Zone Small Business will receive.

10) For a joint venture agreement, a copy of the agreement, signed by

all parties.

11) For a subcontract, a signed subcontract or letter of intent.

iii) The dollar value of the commitment to each Enterprise Zone Small Business must be included in the same sealed envelope with the Disadvantaged Business Submittal of the proposal. The following will become a contractual obligation once the Contract is fully executed:

1) The amount of the Selected Offeror’s Enterprise Zone Small

Business commitment;

2) The name of each Enterprise Zone Small Business; and

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3) The services each Enterprise Zone Small Business will provide,

including the timeframe for performing the services.

II-10. Cost Submittal. L&I is soliciting proposals from qualified vendors to implement an EPC solution at no cost to L&I for disbursement of UC and SWIF indemnity payments. Therefore, no cost submittal is required. II-11. Domestic Workforce Utilization Certification. Complete and sign the Domestic Workforce Utilization Certification contained in Appendix B of this RFP. Offerors who seek consideration for this criterion must submit in hardcopy the signed Domestic Workforce Utilization Certification Form in a separate sealed envelope.

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PART III

CRITERIA FOR SELECTION III-1. Mandatory Responsiveness Requirements. To be eligible for selection, a proposal must be:

a. Timely received from an Offeror; b. Properly signed by the Offeror.

III-2. Technical Nonconforming Proposals. The Issuing Office reserves the right, in its sole discretion, to waive technical or immaterial nonconformities in an Offeror’s proposal. III-3. Evaluation. The Issuing Office has selected a committee of qualified personnel to review and evaluate timely submitted proposals. Independent of the committee, BMWBO will evaluate the Disadvantaged Business Submittal and provide the Issuing Office with a rating for this component of each proposal. The Issuing Office will notify in writing of its selection for negotiation the responsible Offeror whose proposal is determined to be the most advantageous to the Commonwealth as determined by the Issuing Office after taking into consideration all of the evaluation factors. The Issuing Office will award a Contract only to an Offeror determined to be responsible in accordance with the most current version of Commonwealth Management Directive 215.9, Contractor Responsibility Program. III-4. Criteria for Selection. Requirements for Consideration must be addressed by indicating acceptance of each in order for a proposal to be considered. Offerors must complete Appendix D of this RFP indicating the proposal’s compliance with the Requirements for Consideration. The following criteria will be used, in order of relative importance from the highest to the lowest weighted factors, in evaluating each proposal:

a. Technical: Evaluation will be based upon the following in order of importance:

1) EPC Processes. This refers to the Offeror’s processes, procedures, and timelines relating to the EPC, including use of the EPC and account activation. Refer to Part IV, Sections IV-4.1, IV-4.2, and IV-4.3 of this RFP.

2) Cardholder Costs/Fees. This refers to costs and fees that may be charged to the

Cardholder and the timing and circumstances under which the costs and fees are assessed. Offerors with the overall lowest Cardholder costs and fees will receive maximum consideration. Refer to Part IV, Section IV-4.5 of this RFP.

3) Data Management. This refers to the Offeror’s processes, procedures, and

timelines relating to account and payment information data. Refer to Part IV, Section IV-4.6 of this RFP.

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Experience/Personnel/Financial Responsibility. This refers to: the Offeror’s experience in providing EPC services in general, and in particular, related to UC and WC; the qualifications of key personnel who the Offeror will assign to the project; and the Offeror’s financial stability and economic capability to perform the Contract requirements. Refer to Part II, Sections II-4, II-5 and II-7 of this RFP. Work Plan. This refers to the Offeror’s technical plan for accomplishing the tasks set forth in this RFP, including narrative explanation, charts and timelines. Refer to Part II, Section II-3 of this RFP.

4) Customer Service. This refers to how the Offeror will provide customer services to Cardholders and L&I staff. Refer to Part IV, Section IV-4.4 of this RFP.

5) Confidentiality/Security. This refers to the Offeror’s plans, policies and procedures to ensure confidentiality of Cardholder information and Cardholder account information, as well as security features associated with the EPC program. Refer to Part IV, Section IV-4.9 of this RFP. Disaster Recovery. This refers to the Offeror’s plans and procedures for disaster recovery and business continuation. Refer to Part IV, Section IV-4.7 of this RFP.

6) Reports. This refers to the Offeror’s ability to provide to L&I timely detailed reports, including fraud control activity, financial activity, Cardholder activity, and customer service activity. Refer to Part IV, Section IV-4.8 of this RFP.

7) Management Summary. This refers to a description of the services the Offeror proposes to provide, indicating a clear understanding of the nature and scope of the work involved. Refer to Part II, Section II-2 of this RFP. Problem Statement. This refers to the Offeror’s understanding of the Issuing Office’s needs that generated this RFP and the objectives of the requirements of this RFP. Refer to Part II, Section II-1 of this RFP. Value Added. This refers to services the Offeror may provide in addition to the services outlined in this RFP. Refer to Part IV, Section IV-4.12 of this RFP.

b. Cost. The proposal shall include no cost to L&I. Therefore, no cost submittal is

required.

c. Disadvantaged Business Participation: Evaluation will be based upon the following in order of priority:

Priority Rank 1 Proposals submitted by Small

Disadvantaged Businesses.

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Priority Rank 2 Proposals submitted from a joint venture with a Small Disadvantaged Business as a joint venture partner.

Priority Rank 3 Proposals submitted with

subcontracting commitments to Small Disadvantaged Businesses.

Priority Rank 4 Proposals submitted by Socially

Disadvantaged Businesses.

Each proposal will be rated for its approach to enhancing the utilization of Small Disadvantaged Businesses and/or Socially Disadvantaged Businesses. Each approach will be evaluated, with Priority Rank 1 receiving the highest score and the succeeding options receiving scores in accordance with the above-listed priority ranking

To the extent that an Offeror qualifies as a Small Disadvantaged Business or a Socially Disadvantaged Business, the Small Disadvantaged Business or Socially Disadvantaged Business cannot enter into subcontract arrangements for more than 40 percent of the total estimated dollar amount of the Contract. If a Small Disadvantaged Business or a Socially Disadvantaged Business subcontracts more than 40 percent of the total estimated dollar amount of the Contract to other contractors, the Disadvantaged Business Participation scoring shall be proportionally lower for that proposal.

d. Enterprise Zone Small Business Participation: The following options will be

considered as part of the final criteria for selection:

Priority Rank 1 Proposals submitted by an Enterprise Zone Small Business will receive the highest score.

Priority Rank 2 Proposals submitted by a joint

venture with an Enterprise Zone Small Business as a joint venture partner will receive the next highest score for this criterion.

Priority Rank 3 Proposals submitted with a

subcontracting commitment to an Enterprise Zone Small Business will receive the lowest score for this criterion.

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Priority Rank 4 Proposals with no Enterprise Zone Small Business Utilization shall receive no points under this criterion.

To the extent that an Offeror is an Enterprise Zone Small Business, the Offeror cannot enter into contract or subcontract arrangements for more than 40 percent of the total estimated dollar amount of the Contract in order to qualify as an Enterprise Zone Small Business for purposes of this RFP.

e. Domestic Workforce Utilization: Each proposal will be scored for its

commitment to use domestic workforce in the fulfillment of the Contract. Maximum consideration will be given to those Offerors who will perform the contracted direct labor exclusively within the geographical boundaries of the United States. Those who propose to perform a portion of the direct labor outside of the United States will receive a correspondingly smaller score for this criterion. Offerors who seek consideration for this criterion must submit in hardcopy the signed Domestic Workforce Utilization Certification Form in a separate sealed envelope. The certification will be included as a contractual obligation when the Contract is executed.

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PART IV

WORK STATEMENT IV-1. Objectives. IV-1.1 General. L&I is seeking proposals to implement an electronic payment solution at no cost to L&I for the disbursement of UC and SWIF indemnity payments using an EPC that is either VISA or MasterCard branded. IV-1.2 Specific. The Selected Offeror will be required to implement an electronic payment solution for the disbursement of UC and SWIF indemnity payments in order to:

IV-1.2.1 Ensure Cardholders receive the UC and SWIF benefits to which they are entitled, efficiently, timely and accurately.

IV-1.2.2 Reduce and/or eliminate the issuance of benefit payment checks. IV-1.2.3 Reduce costs. IV-1.2.4 Create efficiencies. IV-1.2.5 Maintain or increase the flexibility of accessing payments for recipients. IV-1.2.6 Reduce the potential for fraud inherent in use of paper checks.

IV-2. Nature and Scope of the Project. Following is a brief description of the programs involved in this initiative. In an effort to assist Offerors with their proposals, L&I has provided data in Table IV-2.1 and Table IV-2.2 to estimate the number of potential initial customers for the EPC program. L&I does not guarantee that this historical data will result in any particular number of customers for the EPC program. Unemployment Compensation Once an unemployed individual has filed a new application for UC benefits, been determined to be eligible for benefits, and the amount of benefits to be received determined, L&I issues a payment to the recipient on a biweekly basis for weeks of unemployment or reduced employment for which eligibility requirements are met until: the recipient is again fully employed; the maximum amount of benefits is exhausted; or the benefit year ends. All claims for unemployment benefits are in effect for a 52-week period called a benefit year. Full benefits are currently paid at 26 times the weekly benefit rate. The Claimant may file for partial weeks of unemployment benefits, which would extend the number of weeks filed beyond 26. If the maximum amount of benefits is paid before the expiration of the benefit year, the recipient is not eligible to file a new claim until that benefit year ends. The Pennsylvania Department of Treasury issues UC payments for L&I five (5) days a week by check and direct deposit. L&I’s intention is to issue UC payments as EPCs or direct deposit and eliminate checks. Currently, approximately 36 percent of payments are issued by direct deposit, and 64 percent of payments are issued by check. After the addition of EPCs and elimination of

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checks, it is anticipated, but not guaranteed, that direct deposit payments will increase and the remaining payments will be EPC. Table IV-2.1 shows the activity for UC claims averaged over the past three (3) years, as well as the activity for UC claims for the year 2005. The volume of UC payments is subject to change. The number of payments in 2005 was the lowest in several years. This number could increase significantly depending on economic circumstances. For example, in 1982, the number of payments was over 14 million. TABLE IV-2.1

UC Claims Activity Average over past three (3) years

Calendar year 2005

Number of New Claims 660,700 614,500Number of Payments Made 8,696,400 7,671,600Number of Claimants Receiving Benefits 634,800 576,500Net Benefit Amount $2,332,849,300 $2,039,147,700Average Payment Amount $269 $266Average Weeks of Benefits Received Per Claimant 17.2 16.6Number of Forms UC-1099G Issued 670,500 587,400 Along with the regular UC program, additional payments under programs such as state and federal extended benefits, Trade Readjustment Allowance (TRA), and Disaster Unemployment Assistance (DUA) may be issued. Workers’ Compensation and Benefits The State Workers' Insurance Fund (SWIF) operates as an enterprise fund within L&I and provides an assured source of workers' compensation insurance for the employers and workers of Pennsylvania. Today SWIF is one of the largest workers' compensation insurers in Pennsylvania, covering more than 50,000 policyholders. As of December 2005, SWIF had 50,969 policies. For year-end 2005, SWIF had premium writings of $410 million. This is the largest volume of premium since 1995 when $304 million was written. Coverage begins, for the employer, the day after SWIF receives a properly completed workers' compensation application accompanied by the premium check. SWIF pays indemnity payments to employees of an insured employer for wages lost as the result of a work injury. Most of SWIF’s workers’ compensation indemnity payments are paid on a biweekly basis by check or direct deposit. A limited number of monthly indemnity payments are made to those individuals who are beneficiaries of fatal claims. The Pennsylvania Department of Treasury issues SWIF indemnity payments for L&I by check and direct deposit. SWIF indemnity payments vary by pay cycle and pay date resulting in payments being issued zero (0) to two (2) days a week. Insofar as the payment method under SWIF will remain voluntary, L&I’s intention is to issue SWIF indemnity payments as EPCs or direct deposit and reduce the issuance of checks. Currently, approximately 20 percent of

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indemnity payments are issued by direct deposit, and 80 percent of indemnity payments are issued by check. After the addition of EPCs, it is anticipated, but not guaranteed, that the use of checks will decrease due to an increase in direct deposit and the use of EPCs. Table IV-2.2 shows the activity for SWIF claims averaged over the past three (3) years, as well as the activity for SWIF claims for the year 2005. The volume of SWIF indemnity payments is subject to change. TABLE IV-2.2

SWIF Claims Activity Average over past three (3) years Calendar year 2005

Number of Lost Time Injuries Received 8,300 9,900Number of Indemnity Payments Made 12,400 13,400Number of Claimants Receiving Benefits 6,500 7,000Total Indemnity Paid $133,117,500 $154,599,300Average Indemnity Payment Amount $413 $444Average Weeks of Benefits Received 442 weeks 442 weeks More information about L&I and its services can be found at http://www.state.pa.us/. Statistical information can be located by using PA Keyword: Labor Market Information. IV-3. Requirements. Offerors shall describe how they will meet the requirements as described in this section. As part of the proposal, Offerors shall submit a response to each numbered requirement below. Failure to do so may be considered nonresponsive, and the Offeror’s proposal may be withdrawn from consideration. IV-3.1 There shall be no cost to L&I. IV-3.2 Offerors shall provide evidence of certification and/or membership and compliance

with FDIC or NCUSIF rules and regulations. IV-3.3 Offerors must be affiliated with either VISA or MasterCard and be Electronic Funds

Transfer (EFT) capable using NACHA standards. IV-3.4 Offerors shall meet all Regulation E requirements, including those that may apply

specifically to government programs. IV-3.5 The EPC shall have no line of credit. The Cardholder, nor any other entities not

authorized by L&I, shall not be able to make deposits or add value to the EPC except merchants making refunds.

IV-3.6 All Cardholder information and Cardholder account information created as a result of

any Contract that results from this RFP must remain confidential and may not be sold

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or otherwise shared with any other entity not associated with the Contract or for any purpose other than the execution of the Contract, unless required by law. In addition, the Selected Offeror may not use Cardholder information or Cardholder account information to solicit other business and must ensure Cardholder information and Cardholder account information is protected and kept confidential. The Selected Offeror will be required to execute an agreement regarding the confidentiality of Cardholder information and Cardholder account information. Offerors must describe in detail all procedures for safeguarding confidential Cardholder information and Cardholder account information. Refer to Part IV, Section IV-4.9 of this RFP.

IV-3.7 The Selected Offeror must have a Pennsylvania address for mailing and receiving

EPCs and associated information. IV-3.8 Offeror call centers providing customer service as indicated in the RFP must be

located within the geographical boundaries of the United States. IV-3.9 Any material available to the public via the Internet must comply with

Commonwealth of Pennsylvania accessibility standards, ITB-ACC001 IT Accessibility Policy, which is available on the Internet at http://www.oit.state.pa.us/oaoit/cwp/view.asp?a=722&Q=202198&PM=1, and must be approved by L&I prior to release.

IV-3.10 The Offeror must provide customer support in English, Spanish, and other languages.

Refer to Part IV, Section IV-4.4.24 of this RFP. IV-3.11 The Offeror must include a plan for business continuation and/or recovery as a result

of disaster. Refer to Part IV, Section IV-4.7 of this RFP. IV-3.12 The Selected Offeror must procure and maintain at its expense and require its

subcontractors to procure and maintain, as appropriate, the following types of insurance, issued by companies acceptable to the Commonwealth and authorized to conduct such business under the laws of the Commonwealth of Pennsylvania:

(1) Workers’ Compensation insurance for all of the Selected Offeror’s employees and

those of any subcontractor engaged in performing services in accordance with the Workers’ Compensation Act (77 P.S. §1 et seq.).

(2) Public Liability and Property Damage insurance to protect the Commonwealth,

the Selected Offeror, and any and all subcontractors from claims for damages for personal injury (including bodily injury), sickness or disease, accidental death, and damage to property, including loss of use from property damage which may arise from its operations under this Contract, whether such operation be by the Selected Offeror, by any subcontractor, or by anyone directly or indirectly employed by either. The limits of such insurance shall be in an amount not less than $500,000 per person and $2,000,000 per occurrence, personal injury and property damage combined. Such policies shall be occurrence rather than claims-

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made policies and shall name the Commonwealth of Pennsylvania as an additional insured. The insurance shall not contain any endorsements or any other form designed to limit and restrict any action by the Commonwealth as an additional insured against the insurance coverages in regard to the work performed for the Commonwealth.

(3) Errors and Omissions insurance to protect the Commonwealth and the Selected

Offeror for direct loss that may be incurred due to human error, computer error, machine error, or equipment problems, whether caused by negligence, error, omission or mistake by the Selected Offeror, subcontractor, any employee, officer or agents thereof. Errors and Omissions insurance with limits of not less than fifty million dollars ($50,000,000) shall be in full force and effect at all times, which shall indemnify and pay on behalf of the Selected Offeror and shall name the Commonwealth of Pennsylvania as an additional insured. The insurance shall not contain any endorsements or any other form designed to limit and restrict any action by the Commonwealth as an additional insured against the insurance coverages in regard to the work performed for the Commonwealth.

(4) Fidelity/Commercial Crime insurance to protect the Commonwealth and the

Selected Offeror for loss that may be incurred due to loss of money, securities, or inventory resulting from crime, including burglary, robbery, theft, disappearance destruction or embezzlement by the Selected Offeror, subcontractor, any employee, officer or agents thereof. Fidelity/Commercial Crime insurance with limits of not less than fifty million dollars ($50,000,000) shall be in full force and effect at all times, which shall indemnify and pay on behalf of the Selected Offeror and shall name the Commonwealth of Pennsylvania as an additional insured. The insurance shall not contain any endorsements or any other form designed to limit and restrict any action by the Commonwealth as an additional insured against the insurance coverages in regard to the work performed for the Commonwealth.

IV-3.13 The Offeror must have the ability to secure a letter of credit in the amount of one

million dollars ($1,000,000) from an independent financial institution. Prior to execution of any Contract resulting from this RFP, the Selected Offeror will be required to secure a letter of credit and execute an acknowledgement of terms in a form substantially similar to Appendix F of this RFP. If at any point during the term of the Contract, L&I is required to take action to correct a deficiency of the Selected Offeror, L&I may exercise against the line of credit an amount sufficient to cover the costs to L&I.

IV-4. Tasks. Offerors shall detail how they will perform the tasks as described in this section. As part of the proposal, the Offeror shall submit a response to each numbered task below. Failure to do so may be considered nonresponsive, and the Offeror’s proposal may be withdrawn from consideration.

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IV-4.1 EPC

IV-4.1.1 Describe the EPC design process and the timeline for this process. IV-4.1.2 Describe how you will ensure that L&I has the right to approve the name, design,

content (including activation sticker), and graphics of the EPC. IV-4.1.3 Describe how you will ensure that the EPC design will become property of L&I. IV-4.1.4 Describe how you will ensure that the activation sticker on the EPC is in English

and Spanish; and indicates that receipt of the EPC does not guarantee that the Cardholder meets UC or SWIF eligibility criteria or that the Cardholder will receive payment.

IV-4.1.5 Describe the parameters for issuing EPCs to Claimants. Please note the claim

duration as referred to in Part IV, Section IV-2 of this RFP.

IV-4.1.6 Describe the expiration process, if any, for the EPC. Provide guidelines for EPC expiration dates and policies if more than one (1) EPC has been issued to the Cardholder.

IV-4.1.7 The Offeror shall not deny any Claimant referred by L&I participation in the EPC

program unless required by state or federal law or regulations, or required or requested by L&I. Describe how you will notify L&I within one (1) business day of any instances when a Claimant is denied participation.

IV-4.1.8 Describe how the EPC distribution process will work, including the maximum

time to process an EPC until receipt of the EPC and instructional materials by the Cardholder. Describe how the ongoing EPC issuance process will work and how you would handle a surge in demand due to, for example, a disaster or a significant increase in UC or SWIF indemnity payments.

IV-4.1.9 Describe the process for EPCs returned by the United States Postal Service as

undeliverable and how you will notify L&I within the negotiated timeframe. IV-4.1.10 The Selected Offeror shall be responsible for the replacement or reissuance of

EPCs when necessary. Describe what constitutes a replacement EPC (e.g., lost, stolen or damaged EPC) and what constitutes a reissuance (e.g., name change) and the policy and timeline for replacement and reissuance of EPCs. One (1) replacement and one (1) reissued EPC shall be issued by the Selected Offeror at no cost to L&I or the Cardholder for each 12-month period. Describe how you will handle additional replacement or reissued EPCs.

IV-4.1.11 Describe the procedures for expediting a replacement or reissued EPC at the

request of L&I.

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IV-4.1.12 Describe the procedures for lost, stolen or damaged EPCs, including how funds will be provided to the Cardholder whose EPC is lost, stolen or damaged. Describe how your customer support package will include the capability for Cardholders to report lost, stolen or damaged EPCs; and describe this reporting process.

IV-4.2 Use of EPC

IV-4.2.1 Describe how the EPC will be accepted by any participating merchant, including Point of Sale (POS).

IV-4.2.2 Describe how the EPC will allow for PIN-based and signature-based purchases. IV-4.2.3 Describe how the EPC will be compatible with the operating ATM network, and

allow for withdrawal of cash through a normal ATM transaction. IV-4.2.4 Describe the network(s) and how it will be accessible to the Cardholder, how the

technology used will be currently active and available, and indicate which of these networks will provide free services.

IV-4.2.5 Describe how you will offer ATM access. Individuals who receive UC benefits

or SWIF indemnity payments from Pennsylvania may reside either in state or out of state, with some potentially living in other countries.

IV-4.2.6 Provide a schematic of ATMs and direct teller sites located in Pennsylvania,

nationally and internationally; a schematic with locations of all ATMs where free services are available; and, outside the state, a method to locate an ATM or branch location via a toll-free customer service telephone service and a Web site.

IV-4.2.7 Describe any limitations placed on the Cardholder (if any), such as amounts

available to withdraw daily and number of transactions permitted daily. These limitations may not preclude the Cardholder from withdrawing an amount equal to two (2) weeks of UC benefits or two (2) weeks of SWIF indemnity payments at no cost. These withdrawals may be through one (1) or more daily ATM withdrawals and from a bank teller. The maximum weekly UC benefit amount for 2006 is $497 plus $8 dependents allowance and increases each January. The maximum weekly WC payment for 2006 is $745 and increases each January. There may be times when Cardholders receive large amounts of UC benefits or SWIF indemnity payments at one time. Describe how Cardholders would have access to these funds at no cost.

IV-4.2.8 Describe any transactions that will be disallowed, including transactions that

cause the Cardholder to exceed the amount available in the account. IV-4.2.9 Describe how you will prevent overdrafts from transactions that are verified

online.

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IV-4.2.10 Describe policies regarding asset freezing, including how you handle any holds

that may be placed on Cardholder accounts. IV-4.2.11 Describe the process for Cardholders to “cash-out” their EPC account balance.

For example, describe how Cardholders can withdraw amounts under the ATM minimum withdrawal amount, or the retailer minimum, or amounts less than one (1) dollar.

IV-4.2.12 Describe the procedure regarding monies remaining in accounts established under

the EPC program, differentiating between monies being held for accounts pending EPC activation and monies remaining in activated accounts. Monies deposited by L&I with the Selected Offeror on behalf of a Cardholder who fails to activate his EPC for the duration of his benefit year are to be returned to L&I. L&I is also interested in monies remaining for long periods of time in activated accounts being returned to L&I whenever permissible by law.

IV-4.2.13 Describe how monies remaining in accounts of deceased Cardholders are

processed, including: how the accounts are frozen, how and when the monies are made available to the deceased Cardholders’ estates or next of kin, and how you will notify L&I of the transactions.

IV-4.2.14 Describe how you will detect potential fraudulent payments as a result of multiple

EPC transactions by individual Cardholders in a specific geographical area, and the aggregate dollar amount.

IV-4.2.15 Describe any liability to Cardholders, L&I, and the Offeror for fraud, stolen

EPCs, lost EPCs, EPCs that are damaged or no longer work (for example, demagnetized), or unauthorized use of EPCs or EPC accounts.

IV-4.2.16 Describe any liability to Cardholders, L&I, and the Offeror for any transaction or

other associated costs that cause the Cardholder to exceed the amount available in his account. L&I will not have any responsibility or obligation for such overdrafts, nor for any other costs or liabilities incurred by the Offeror due to the actions of a Cardholder.

IV-4.3 Account Activation

IV-4.3.1 Describe the data required from a Cardholder to activate his EPC and the timeframe required for activation.

IV-4.3.2 Describe how the Cardholder will be able to choose or change his PIN under the

following circumstances: IV-4.3.2a After initial EPC issuance. IV-4.3.2b When an EPC is lost or stolen. IV-4.3.2c If a Cardholder forgets his PIN.

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IV-4.3.2d If the PIN is compromised. IV-4.3.2e In addition, explain alternative methods of PIN selection, if available.

IV-4.3.3 Describe how you will ensure that payments are not loaded to an EPC until the

Cardholder activates the EPC. IV-4.3.4 Describe how you will hold payments for a Cardholder until an EPC is activated.

Describe how you will make any payments immediately available to the Cardholder upon EPC activation by the Cardholder.

IV-4.3.5 Describe how you will deactivate accounts only as notified by L&I. Describe

circumstances under which you would otherwise want to deactivate an account. The Selected Offeror and L&I will jointly develop processes and procedures for deactivating and reactivating accounts.

IV-4.4 Customer Service

IV-4.4.1 Describe the customer communications and marketing information plan and the associated timelines. All marketing and instructional materials must be, at a minimum, in English and Spanish. Describe how you will provide specific information about Cardholder costs and fees. Proposed marketing and instructional materials and samples from previous clients should be included. L&I reserves the right to review and approve all marketing and instructional materials.

IV-4.4.2 Describe training and instructional materials for L&I staff on the use of the

system. Samples of such material should be included. L&I will have the right to review and approve all materials and approaches.

IV-4.4.3 Offerors must include samples of all Web pages, statements, dispute forms, and

any other forms related to the EPC process in its proposal response. IV-4.4.4 Describe how you will immediately notify Cardholders and L&I of changes in

policy that affect them or their accounts. No such changes can violate the terms of this RFP or resulting Contract.

IV-4.4.5 Describe how you will monitor calls to ensure quality customer service and to

address customer complaints. Describe how customer complaints are logged, categorized, resolved, and the timeframes associated with these processes. List the types of issues anticipated and explain how they will be resolved. Include information and reports that you will provide to L&I to enable L&I to monitor customer service and customer complaint resolution. (Refer to Part IV, Section IV-4.8 of this RFP.)

IV-4.4.6 Describe how you will respond to Cardholder inquiries regarding EPC

transactions within the negotiated timeframe.

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IV-4.4.7 Describe when Customer Service Representatives (CSR) are available as opposed

to Interactive Voice Response (IVR) technology. Continuous CSR availability is preferred. Include any alternative methods of accessing account information in your proposal.

IV-4.4.8 Describe wait times for callers in the queue, including the maximum wait time. IV-4.4.9 Describe your procedures for determining the identity of a caller prior to

providing any account information. IV-4.4.10 Describe how you will identify and transfer calls unrelated to your responsibilities

to L&I. IV-4.4.11 Describe how you will provide a toll-free direct telephone line to L&I that L&I’s

customer service staff may use to transfer a Cardholder to a CSR. IV-4.4.12 Describe how you will ensure that all services offered by the call center are

accessible by touch-tone, pulse and rotary dial telephones. IV-4.4.13 Describe how Cardholders who are unable to enter the EPC number through the

IVR will default to a CSR. IV-4.4.14 Describe how you will provide a secure Internet-based management tool that will

allow Cardholders to view financial transaction detail posted to their account. Specify the Web site and describe how it will work.

IV-4.4.15 Describe how you will provide a link to L&I’s Web site from the pages that

display account details. IV-4.4.16 Describe how L&I messages are delivered in both English and Spanish to

Cardholders through your secure Web site, IVR system and CSRs. IV-4.4.17 Describe the customer process for completing an account inquiry, including

various options such as IVR, ATM, customer support, online, etc. IV-4.4.18 Describe your procedures to resolve account discrepancies. IV-4.4.19 Describe how you will provide a monthly statement for each Cardholder.

Offerors shall supply a sample statement in the proposal response. IV-4.4.20 Describe how Cardholder address changes can be managed with L&I being the

custodian of the address records. IV-4.4.21 Describe how returned mail is handled and how it will be reported to L&I.

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IV-4.4.22 Describe services available to Cardholders outside of the United States including those with FPO and APO addresses.

IV-4.4.23 Describe how your customer support package will include TTY and

communications relay capability as described in the Americans with Disabilities Act.

IV-4.4.24 Describe how you will provide customer support in English and Spanish.

Describe how customer service is provided to other non-English speakers.

IV-4.4.25 Describe how you will make the call centers and operating/processing facilities accessible for visits from L&I staff.

IV-4.5 Cardholder Costs/Fees

IV-4.5.1 Describe in detail all EPC Cardholder costs and fees, including the timing and circumstances under which each Cardholder cost and fee is assessed. The Selected Offeror may not charge any cost or fee to Cardholders not included in its proposal. Cardholder costs and fees will be evaluated as part of the Criteria for Selection (refer to Part III, Section III-4 of this RFP), and are subject to negotiation prior to the formation of a Contract. Submit Cardholder costs and fees information in the same sealed envelope with the Technical Submittal.

IV-4.6 Data Management

IV-4.6.1 Describe how you will provide the required information and the file format(s) to be used by L&I and the Selected Offeror for transmitting account setup and payment information data, including errors or problems with data. Describe the data required from the Claimant or L&I to establish an EPC account (e.g., name, address, phone number, date of birth, and unique identification for Claimant) and propose a process for sharing this information.

IV-4.6.2 Describe how you will provide a procedure for using an industry standard

electronically secure data connection, which allows L&I and the Selected Offeror to transmit account information on a daily basis.

IV-4.6.3 Describe your ability to accept and process daily data from L&I. L&I shall

submit transactions to the Selected Offeror according to NACHA approved Preauthorized Payment and Deposit (PPD) format. The daily data includes:

IV-4.6.3a A new account file containing information necessary to set up new accounts and issue EPCs.

IV-4.6.3b A maintenance file containing name changes, address changes, etc. to update account information.

IV-4.6.3c A payment file containing deposits and other required identifying information, including L&I fund code under which the payment is made. L&I will provide

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the Selected Offeror with a listing of the fund code numbers and their definitions.

IV-4.6.3d A file containing the dollar amount equal to the total deposits for the payment file sent the same day.

IV-4.6.4 Describe the number of hours/days subsequent to receiving data from L&I that the

Offeror shall: IV-4.6.4a Establish an account for the Claimant. IV-4.6.4b Provide L&I with required identifying information necessary for L&I to begin

making payments. IV-4.6.4c Issue EPC to the Claimant by first class mail.

IV-4.6.5 Describe the number of hours subsequent to receiving data from L&I that the

Offeror shall process payments to the Cardholder's account so that funds are available to the Cardholder. Include the number of hours/days for periods involving weekends and holidays.

IV-4.6.6 Describe how you will ensure that on a daily basis L&I shall receive from the

Selected Offeror a report for UC and a report for SWIF containing: IV-4.6.6a New account numbers. IV-4.6.6b Reissued account numbers. IV-4.6.6c All other information necessary for L&I to properly make payments. IV-4.6.6d An error file containing payment records that could not be processed with a

description of the error. IV-4.6.7 Describe your reconciliation process, including a reporting timeline, for money

received from L&I versus money disbursed to Cardholders, including audit trail(s) for each transaction throughout the process.

IV-4.6.8 Describe how you will accept reversals from L&I for any credit entries made in

error to a Cardholder account consistent with NACHA regulations. IV-4.6.9 Describe your data archiving and retrieval procedures. The Selected Offeror shall

be required to retain records including but not limited to, financial records, supporting documents, statistical records, any other records, papers, logs, audit trails or books related to this RFP and any resulting Contract for a period of seven (7) years after the expiration of the Contract, or until L&I or interested government agencies are satisfied that all audit and litigation matters are resolved, whichever period is longer. The Selected Offeror may be requested to produce records or provide testimony as a keeper of record pursuant to a valid subpoena or court order. The Selected Offeror shall immediately notify L&I’s Office of Chief Counsel of any subpoena or court order directing the release of information and shall consult with L&I prior to releasing such information.

IV-4.7 Disaster Recovery/Business Continuation

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The disaster recovery plan is complementary to the Offeror’s normal security and emergency preparedness plans. A major disaster is defined as a loss of the facility or business processing due to a catastrophic event, which causes vital business processes to stop for an extended period of time (more than 24 hours). This includes: • An event resulting in the inability to meet important customer commitments and contractual

obligations or to protect the interests of L&I and the Offeror and its employees. • The catastrophic loss of system/service and/or degradation due to, but not limited to:

o Power outage; o Server crash; o Server failure; o Router failure; o Cable failure; o Power surge; o E-mail failure; o Internet failure; o Virtual private network (VPN) failure; and/or o Computer virus.

• A situation which may be catastrophic for the business.

IV-4.7.1 Describe your disaster recovery plan and continuation of business plan. Include backup procedures, alternate operating facilities, hardware and software replacement, and testing procedures and history. Specify whether you use a ‘hot-site’ or ‘cold-site’ strategy and your expected recovery time.

IV-4.7.2 Describe how you will notify L&I within 24 hours of any situation, which could

reasonably be expected to adversely affect the payment processing operation. Explain how you will describe the situation and include recommendations to resolve the situation.

IV-4.7.3 Describe how you will notify L&I within four (4) hours of any failure in the

payment processing operation lasting four (4) hours or more. This includes any failure of depositing funds into Cardholders’ accounts and the Cardholders’ ability to use funds in the accounts.

IV-4.7.4 Describe how your procedure manuals are maintained during a disaster. Include

how your procedures are available in an automated format. IV-4.7.5 Describe how you will ensure that in the event of a major disaster the following

occurs:

IV-4.7.5a The quick recovery of critical systems. • Telephone and fax lines are available for customer use within 24 hours,

and all business functions are returned to full service within five (5) business days.

IV-4.7.5b The transfer of business functions to an alternate processing facility.

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• Potential alternate facilities (hot-sites) must be identified in advance. The chosen alternate facility is identified at the time a disaster is declared. The hot-site location choice is based upon the scope and impact of the disaster.

IV-4.7.5c Effective communication efforts during disaster recovery.

• All L&I contacts, members of each of the disaster recovery plan teams, all call center site employees, and other appropriate Offeror staff must be kept up-to-date during the recovery. The Offeror must provide information about (1) how to contact Offeror staff during the recovery, (2) when services will be reestablished, and (3) any decision to locate to alternate facilities. L&I feels strongly that communication with staff, customers, and L&I contacts is crucial to the actual and perceived success of the recovery efforts.

IV-4.7.5d Use of backup tapes and restoration of both data and telephone connectivity.

• Hardware replacement or restoration needs are assessed at the time of the disaster and appropriate measures are taken to ensure that functional hardware is available and installed within the designated recovery time frame included in Offeror’s proposal response. Full volume backups of all servers are made daily. Full volume backups are securely transported and securely stored off-site. Backup tapes must be transferred daily to the Offeror’s off-site facility that has the appropriate environmental and security controls for media storage.

IV-4.8 Query and Reporting

IV-4.8.1 The Selected Offeror must provide L&I with detailed reporting to the extent permissible under Regulation E. Describe the regular reports you propose to provide and provide samples. The reports must be available in summary and detail. Reports must be delivered to L&I electronically in a format approved by L&I, preferably through a secure Internet connection. Reports shall be delivered monthly, no later than five (5) business days after the last day of the preceding month, for the preceding month's activities, unless otherwise stated by L&I. The reports should be provided separately for UC and for SWIF and include the following information:

IV-4.8.1a Fraud control activity/risk analysis (daily reports):

IV-4.8.1a1 Number of PIN changes IV-4.8.1a2 Number of reports of stolen/lost EPCs IV-4.8.1a3 Dollar amount stolen/lost IV-4.8.1a4 Number of reports of fraudulent activity IV-4.8.1a5 Dollar amount defrauded IV-4.8.1a6 Geographical location of fraudulent activity IV-4.8.1a7 Detailed listing of customers who have reported stolen/lost EPCs and/or

fraudulent activity and the resolution of each

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IV-4.8.1a8 Data to measure timeliness between the date of a reported stolen/lost EPC or other fraudulent activity and the date the reported issue is resolved

IV-4.8.1a9 Number of accounts deactivated due to fraud IV-4.8.1a10 Number of reissued EPCs and reasons for reissuance IV-4.8.1a11 Detailed listing of confidentiality and security breaches including steps

taken to contain the breach, follow-up reports, and a corrective action plan

IV-4.8.1a12 Detailed listing of any and all business disruptions of four (4) hours or longer

IV-4.8.1b Financial activity (monthly reports, broken down by day):

IV-4.8.1b1 Amount of funds disbursed to Cardholders by amount of time from receipt of all necessary payment information from L&I

IV-4.8.1b2 Amount of funds being held for accounts pending EPC activation IV-4.8.1b3 ATM withdrawals IV-4.8.1b4 PIN vs. signature-based merchant transactions IV-4.8.1b5 Number of free Cardholder transactions IV-4.8.1b6 Number of Cardholder cost and fee-based transactions IV-4.8.1b7 Count and amounts of deposits made to Cardholder accounts IV-4.8.1b8 Amount of funds remaining in all Cardholder accounts by length of

account inactivity IV-4.8.1b9 Number of payment records that had errors

IV-4.8.1c EPC/Cardholder activity:

IV-4.8.1c1 Number of accounts established by amount of time from receipt of all necessary account information from L&I

IV-4.8.1c2 Number of EPCs mailed via first class mail by amount of time from receipt of all necessary account information from L&I

IV-4.8.1c3 Number of EPCs issued IV-4.8.1c4 Number of EPCs activated IV-4.8.1c5 Amount of time from EPC issuance to activation IV-4.8.1c6 Number of EPCs not activated by first payment transaction IV-4.8.1c7 Active accounts IV-4.8.1c8 Inactive accounts IV-4.8.1c9 Closed accounts IV-4.8.1c10 Frozen accounts IV-4.8.1c11 Cancelled accounts

IV-4.8.1d Customer Service activity - IVR:

IV-4.8.1d1 Number of calls attempted IV-4.8.1d2 Number of calls getting a busy signal IV-4.8.1d3 Number of calls accepted in queue IV-4.8.1d4 Number of calls in queue abandoned by wait time IV-4.8.1d5 Number of calls answered by wait time IV-4.8.1d6 Average wait time

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IV-4.8.1d7 Number of calls answered by type of call IV-4.8.1d8 Number of calls answered by IVR with breakout of languages served IV-4.8.1d9 Number of calls answered by talk time (connect time less time in queue) IV-4.8.1d10 Average talk time IV-4.8.1d11 Time and duration of all IVR service interruptions, both scheduled and

unscheduled reported separately

IV-4.8.1e Customer Service activity - CSR: IV-4.8.1e1 Number of calls attempted by source (IVR, L&I transfer if available,

outside if available) IV-4.8.1e2 Number of calls getting a busy signal IV-4.8.1e3 Number of calls accepted in queue IV-4.8.1e4 Number of calls in queue abandoned by wait time IV-4.8.1e5 Number of calls answered by wait time IV-4.8.1e6 Average wait time IV-4.8.1e7 Number of calls answered by type of call IV-4.8.1e8 Number of calls answered by CSR with breakout of languages served IV-4.8.1e9 Number of calls answered by talk time (connect time less time in queue) IV-4.8.1e10 Average talk time IV-4.8.1e11 Number of calls answered and transferred to L&I IV-4.8.1e12 Number of calls answered as a result of a transfer from L&I IV-4.8.1e13 Time and duration of all CSR service interruptions, both scheduled and

unscheduled reported separately

IV-4.8.1f Customer Service activity - Internet (L&I related): IV-4.8.1f1 Number of Web site hits IV-4.8.1f2 Number of Cardholder account inquiries IV-4.8.1f3 Number of Cardholder account updates (e.g., PIN changes) IV-4.8.1f4 Time and duration of all Web site service interruptions, both scheduled

and unscheduled reported separately

IV-4.8.1g Customer Service activity - General: IV-4.8.1g1 Number of account protests by type of protest IV-4.8.1g2 Detailed listing of complaints by customers with difficulty accessing

services due to low English proficiency, including the steps taken by Selected Offeror to enable service

IV-4.8.1h All activity for an individual Cardholder. Describe how you will maintain this

data and make it available to L&I upon request.

IV-4.8.2 Describe the POS process, including data capture capabilities and how much information can be input and received from the POS. Include all reporting options available to L&I.

IV-4.9 Confidentiality/Security

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IV-4.9.1 Describe your processes and procedures used to ensure the confidentiality of Cardholder information and Cardholder account information is protected (refer to Part IV, Section IV-3.6 of this RFP), including but not limited to the following measures:

IV-4.9.1a Describe how access to data regarding Cardholder information and

Cardholder accounts will be restricted to those individuals whose access is essential to the administration of the program.

IV-4.9.1b Describe how individuals with access to Cardholder information or Cardholder accounts will be under the direction and control of the Selected Offeror.

IV-4.9.1c Describe how you will insure that each individual with access to Cardholder information or Cardholder accounts will have executed a confidentiality agreement before access to this information is permitted. All individuals with access to confidential information will be required to execute a confidentiality agreement substantially similar to the sample agreement at Appendix E of this RFP.

IV-4.9.1d Describe how you will monitor the use of the data by individuals with access to Cardholder information or Cardholder accounts to insure that such information is being used only for purposes consistent with the administration of this program.

IV-4.9.1e Describe how you will keep all information regarding Cardholders and Cardholder accounts secured in a manner which will ensure its confidentiality.

IV-4.9.1f Describe how you will develop and require anyone with access to data regarding Cardholder information or Cardholder accounts to use security procedures to keep the data confidential and to limit its access to those authorized to access such information.

IV-4.9.2 Describe the security features associated with the EPC for activation, counterfeit

prevention and fraud prevention. IV-4.9.3 Describe your procedures for preventing identity theft and responding to

fraudulent activities. IV-4.9.4 Describe your internal controls to help monitor, detect, record or log, prevent and

minimize unauthorized physical and information technology activity. IV-4.9.5 Describe your procedures to resolve (prosecute) fraud, how and when you will

notify L&I, and what information you will provide. IV-4.9.6 Describe how quickly and the manner by which you will notify L&I and

Cardholders of any data breaches that might expose Cardholders’ individual account information.

IV-4.9.7 Describe the assistance you will provide to the Cardholder in the event his

individual account information is compromised.

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IV-4.9.8 Describe how physical (including electronic) records are destroyed, the frequency

of destruction, and what logging and reporting of the record destruction activity is provided to L&I.

IV-4.9.9 Describe how you will ensure that any subcontractors will be bound by the same

confidentiality requirements as the Offeror. IV-4.9.10 In accordance with Paragraph 14 of the Commonwealth's Standard Terms and

Conditions, the Selected Offeror shall hold the Commonwealth harmless and indemnify the Commonwealth against any and all claims, demands or actions based upon or arising out of any activities performed by the Selected Offeror or its employees or agents, including subcontractors, under any Contract resulting from this RFP and shall, at the request of the Commonwealth, defend any and all actions brought against the Commonwealth based on any such claims or demands. The Commonwealth will not indemnify the Selected Offeror.

IV-4.10 Performance Standards The Selected Offeror shall meet or exceed the following minimum performance standards, which are intended to ensure that Claimants have access to their benefit payments via an EPC in a timely fashion. If the Selected Offeror fails to meet any of these standards or the standards as modified in a Contract resulting from this RFP, L&I may take one, all or any combination of the following actions: invoke the corrective procedure specified below, terminate the Contract, terminate the Contract and invoke the letter of credit in an amount necessary to cover the cost to L&I of issuing payments and/or procuring a new vendor, and any other action available to L&I for nonperformance of the Contract. L&I’s forbearance from taking action in response to one or more instances where the successful Selected Offeror fails to meet performance standards shall not constitute a waiver of its rights with respect to any subsequent failure by the Selected Offeror to meet performance standards.

IV-4.10.1 Account Set-up

IV-4.10.1a At least 95 percent of Cardholder accounts must be established within four (4) days of receiving all necessary Cardholder account information.

If the Selected Offeror fails to meet this standard for a period of one (1)

month, performance will be considered unsatisfactory which will result in a written warning being issued to the Selected Offeror. In addition, the Selected Offeror will be required to submit a corrective action plan. If within two (2) months of the initial failure, the Selected Offeror cannot demonstrate that its performance has improved, a second corrective action plan will be required and the Selected Offeror will be required to report daily to L&I the reasons that the standard is not being met and what is being done to address this issue. If the Selected Offeror fails to meet this standard for a period of six (6) months, L&I may take corrective action and invoke

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the Selected Offeror’s letter of credit in an amount sufficient to reimburse L&I for expenses incurred.

IV-4.10.2 EPC Issuance

IV-4.10.2a At least 95 percent of EPCs must be mailed by first class mail to individuals

identified to receive EPCs within four (4) days of receiving all necessary Cardholder account information.


month, performance will be considered unsatisfactory which will result in a written warning being issued to the Selected Offeror. In addition, the Selected Offeror will be required to submit a corrective action plan. If within two (2) months of the initial failure, the Selected Offeror cannot demonstrate that its performance has improved, a second corrective action plan will be required and the Selected Offeror will be required to report daily to L&I the reasons that the standard is not being met and what is being done to address this issue. If the Selected Offeror fails to meet this standard for a period of six (6) months, L&I may take corrective action and invoke the Selected Offeror’s letter of credit in an amount sufficient to reimburse L&I for expenses incurred.

IV-4.10.3 Payments

IV-4.10.3a At least 95 percent of all payments must be deposited to established

Cardholder accounts and be available to the Cardholder within six (6) hours of receiving the L&I payment file.


month, performance will be considered unsatisfactory which will result in a written warning being issued to the Selected Offeror. In addition, the Selected Offeror will be required to submit a corrective action plan. If within two (2) months of the initial failure, the Selected Offeror cannot demonstrate that its performance has improved, a second corrective action plan will be required and the Selected Offeror will be required to report daily to L&I the reasons that the standard is not being met and what is being done to address this issue. If the Selected Offeror fails to meet this standard for a period of six (6) months, L&I may take corrective action and invoke the Selected Offeror’s letter of credit in an amount sufficient to reimburse L&I for expenses incurred.

IV-4.10.4 Customer Service

IV-4.10.4a IVR system and Web site must be operational at least 98 percent of the

scheduled seven (7) days a week, 24 hours per day service, except for normal maintenance.

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IV-4.10.4b Customer service representatives must be available at least 95 percent of the

scheduled seven (7) days a week, ten (10) hours per day service, with an average wait time of five (5) minutes or less.

The Selected Offeror must provide “down time” reports. If services are not available as indicated above for one (1) month, performance will be considered unsatisfactory which will result in a written warning being issued to the Selected Offeror. In addition, the Selected Offeror will be required to submit a corrective action plan. If within two (2) months of the initial failure, the Selected Offeror cannot demonstrate that its performance has improved, a second corrective action plan will be required and the Selected Offeror will be required to report daily to L&I the reasons that the standard is not being met and what is being done to address this issue. If the Selected Offeror fails to meet this standard for a period of six (6) months, L&I may take corrective action and invoke the letter of credit in an amount necessary to cover any cost to L&I.

IV-4.10.4c Customers must never be denied service because of the inability to speak or

read English.

If, within a calendar quarter, there are more than five (5) complaints from customers being denied service, performance will be considered unsatisfactory which will result in a written warning being issued to the Selected Offeror. Regardless of the number of complaints, the Selected Offeror will be required to evaluate each complaint and provide a report. If five (5) complaints are received in the next calendar quarter, L&I may take corrective action and invoke the letter of credit in an amount necessary to cover any cost to L&I.

IV-4.10.5 Confidentiality/Security

IV-4.10.5a There must be zero (0) breaches of confidentiality during the life of the

Contract and all security measures as specified in the Contract will be maintained at all times.

Any breaches of confidentiality/security will be considered unsatisfactory which will result in a written warning being issued to the Selected Offeror. Any breach, which L&I, in its sole discretion, considers material, may result in termination of the Contract and L&I may invoke the letter of credit in an amount necessary to cover the cost to L&I of issuing payments and procuring a new vendor.

IV-4.10.6 Disaster Recovery/Business Continuation

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Business recovery after a disaster or other business interruption will be accomplished within the timeframes specified below:

IV-4.10.6a Payment system must be operational within 48 hours. IV-4.10.6b Telephone and fax services must be available within 48 hours. IV-4.10.6c All business functions must be returned to full service with five (5) business

days.

Disruption of service for other than widespread disaster will result in a written warning being issued to the Selected Offeror. In addition, the Selected Offeror will be required to submit a corrective action plan.

IV-4.11 Annual Audit Requirements

IV-4.11.1 The Selected Offeror shall ensure that an independent auditor perform audits of its

policies and procedures applicable to the processing of L&I's UC and SWIF indemnity electronic payments. These audits shall be performed in accordance with the American Institute of Certified Public Accounts (AICPA) Statement on Auditing Standards AU Section 324 – Service Organizations (commonly referred to as a SAS 70 audit [SAS 70], Reports on the Processing of Transactions by Service Organizations). The initial SAS 70 audit shall be completed for the year ending June 30, 2007, and conducted annually thereafter. The independent auditor shall issue reports on policy and procedure controls placed in operation and tests of operating effectiveness as defined in AU Section 324 and SAS 70. The Selected Offeror shall submit the SAS 70 audit reports to L&I within 60 days after the required period of audit has ended. When the SAS 70 audit reports are other than unqualified, the Selected Offeror shall submit to L&I, in addition to the audit reports, a plan describing what actions the Selected Offeror will implement to correct the situation that caused the auditor to issue a qualified report, a timetable for implementing the planned corrective actions and a process for monitoring compliance with the timetable.

IV-4.12 Value Added Services

IV-4.12.1 Describe any value added services the Offeror may provide beyond those services previously outlined to offer additional benefits to L&I or the Claimant/Cardholder. Examples may be:

• Providing direct deposit services. • Providing messages to Cardholders on behalf of L&I. • Including informational inserts designed by L&I with mailings to

Cardholders. • Providing the ability for the Cardholder to transfer money from the EPC to

his bank account. • Providing checks as an option for Cardholder to access funds from his

EPC account. • Providing a paper ledger for the Cardholder to record transactions.

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IV-5. Reports and Project Control. The Selected Offeror shall work directly with L&I, which is responsible for the UC and SWIF process in Pennsylvania. The Bureau of UC Benefits and Allowances (BUCBA) will be the primary point of contact to provide EPC payments to UC Cardholders. SWIF will be the primary point of contact to provide EPC payments to SWIF Cardholders. The Selected Offeror will be required to provide the following reports at negotiated time periods:

a. Status Report. A periodic progress report covering activities, problems and recommendations. This report should be keyed to the work plan the Offeror developed in its proposal, as amended or approved by the Issuing Office.

b. Problem Identification Report. An “as required” report, identifying problem

areas. The report should describe the problem and its impact on the overall project and on each affected task. It should list possible courses of action with advantages and disadvantages of each, and include Offeror recommendations with supporting rationale.

c. Final Report. Sign offs on project deliverables will serve as Final Reports.

IV-6. Contract Requirements—Disadvantaged Business Participation and Enterprise Zone Small Business Participation. All Contracts containing Disadvantaged Business participation and/or Enterprise Zone Small Business participation must also include a provision requiring the Selected Offeror to meet and maintain those commitments made to Disadvantaged Businesses and/or Enterprise Zone Small Businesses at the time of proposal submittal or Contract negotiation, unless a change in the commitment is approved by the BMWBO. All Contracts containing Disadvantaged Business participation and/or Enterprise Zone Small Business participation must include a provision requiring Small Disadvantaged Business subcontractors, Enterprise Zone Small Business subcontractors and Small Disadvantaged Businesses or Enterprise Zone Small Businesses in a joint venture to perform at least 50 percent of the subcontract or Small Disadvantaged Business/Enterprise Zone Small Business participation portion of the joint venture. The Selected Offeror’s commitments to Disadvantaged Businesses and/or Enterprise Zone Small Businesses made at the time of proposal submittal or Contract negotiation shall be maintained throughout the term of the Contract. Any proposed change must be submitted to BMWBO, which will make a recommendation to the Contracting Officer regarding a course of action. If a Contract is assigned to another contractor, the new contractor must maintain the Disadvantaged Business participation and/or Enterprise Zone Small Business participation of the original Contract. The Selected Offeror shall complete the Prime Contractor’s Quarterly Utilization Report (or similar type document containing the same information) and submit it to the Contracting Officer of the Issuing Office and BMWBO within ten (10) workdays at the end of each quarter the Contract is in force. This information will be used to determine the actual dollar amount paid to

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Small Disadvantaged Business and/or Enterprise Zone Small Business subcontractors and suppliers, and Small Disadvantaged Business and/or Enterprise Zone Small Business participants involved in joint ventures. Also, this information will serve as a record of fulfillment of the commitment the Selected Offeror made and for which it received Disadvantaged Business and Enterprise Zone Small Business points. If there was no activity during the quarter then the form must be completed by stating “No activity in this quarter.” NOTE: EQUAL EMPLOYMENT OPPORTUNITY AND CONTRACT COMPLIANCE STATEMENTS REFERRING TO COMPANY EQUAL EMPLOYMENT OPPORTUNITY POLICIES OR PAST CONTRACT COMPLIANCE PRACTICES DO NOT CONSTITUTE PROOF OF DISADVANTAGED BUSINESSES STATUS OR ENTITLE AN OFFEROR TO RECEIVE CREDIT FOR DISADVANTAGED BUSINESSES UTILIZATION.

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APPENDIX A

STANDARD CONTRACT TERMS AND CONDITIONS Commonwealth of Pennsylvania Standard Contract Terms and Conditions - SAP STD-274 Rev. 05/07/04 http://www.dgs.state.pa.us/dgs/lib/dgs/forms/comod/procurementforms/std274_sap.doc

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APPENDIX B DOMESTIC WORKFORCE UTILIZATION CERTIFICATION

Each proposal will be scored for its commitment to use the domestic workforce in the fulfillment of the Contract. Maximum consideration will be given to those Offerors who will perform the contracted direct labor exclusively within the geographical boundaries of the United States. Those who propose to perform a portion of the direct labor outside of the United States will receive a correspondingly smaller score for this criterion. In order to be eligible for any consideration for this criterion, Offerors must complete and sign the following certification. This certification will be included as a contractual obligation when the Contract is executed. Failure to complete and sign this certification will result in no consideration being given to the Offeror for this criterion. I, ______________________[title] of ____________________________________[name of Contractor] a _______________ [place of incorporation] corporation or other legal entity, (“Contractor”) located at ________________________________________________________________ ____________________________________________________________________________[address], having a Social Security or Federal Identification Number of ________________________, do hereby certify and represent to the Commonwealth of Pennsylvania ("Commonwealth") (Check one of the boxes below):

All of the direct labor performed within the scope of services under the Contract will be performed exclusively within the geographical boundaries of the United States.

OR

________________ percent (_____%) [Contractor must specify the percentage] of the direct labor performed within the scope of services under the Contract will be performed within the geographical boundaries of the United States. Please identify the direct labor performed under the Contract that will be performed outside the United States: __________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ [Use additional sheets if necessary]

The Department of General Services [or other purchasing agency] shall treat any misstatement as fraudulent concealment of the true facts punishable under Section 4904 of the Pennsylvania Crimes Code, Title 18, of Pa. Consolidated Statutes. Attest or Witness: ______________________________ Corporate or Legal Entity's Name _____________________________ ______________________________ Signature/Date Signature/Date _____________________________ ______________________________ Printed Name/Title Printed Name/Title

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APPENDIX C - PROPOSAL COVER SHEET COMMONWEALTH OF PENNSYLVANIA

Department of Labor & Industry RFP# BUCBA/SWIF 2006-1

Enclosed in three (3) separately sealed submittals is the proposal of the Offeror identified below for the above-referenced RFP:

Offeror Information:

Offeror Name Offeror Mailing Address

Offeror Website Offeror Contact Person Contact Person’s Phone Number Contact Person’s Facsimile Number Contact Person’s E-Mail Address Offeror Federal ID Number

Submittals Enclosed and Separately Sealed:

Technical Submittal

Disadvantaged Business Submittal

Domestic Workforce Utilization Certification Submittal

Signature

Signature of an official authorized to bind the Offeror to the provisions contained in the Offeror’s proposal:

Printed Name Title

FAILURE TO COMPLETE, SIGN AND RETURN THIS FORM WITH THE OFFEROR’S PROPOSAL MAY RESULT IN THE REJECTION OF THE OFFEROR’S PROPOSAL.

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APPENDIX D REQUIREMENTS FOR CONSIDERATION Non-acceptance of or noncompliance with any Requirement for Consideration, or modification of, or the placing of conditions on acceptance or compliance with any of the Requirements for Consideration, in whole or in part, will result in immediate disqualification, unless PA Department of Labor & Industry determines, in its own discretion, that a noncompliance is a waivable technicality and not a material defect. All the questions listed below must be answered. In the event of a “No” answer to any question, please accept our appreciation for your interest, and understand that, since PA Department of Labor & Industry requires a minimum level of qualification, your proposal will not be deemed responsive. Yes No Question � � a. Does your proposal include a Proposal Cover Sheet containing the signature of an

official authorized to bind the Offeror to its provisions? (Appendix C) � � b. Have you submitted your proposal as three separate packets:

• Technical Submittal (II-1 through II-8) • Disadvantaged Business Submittal (II-9) • Domestic Workforce Utilization Certification Submittal (II-11)

Note: Any assumptions made by the Offeror and included in your proposal must be explicitly stated and listed separately from all other content provided as part of the Technical submittal.

� � c. Does your proposal include a signed customized Domestic Workforce Utilization Certification form? (Appendix B)

� � d. Does your proposal indicate that any call center providing customer service will be located within the geographic boundaries of the United States? (IV-3.8)

� � e. Does your proposal indicate no cost to the Department of Labor & Industry? (IV-3.1)

� � f. Do you agree that your proposal will remain valid for the earlier of 120 days after the RFP due date or until a Contract is fully executed? (I-12)

� � g. Does your proposal indicate that the product is an EPC and has no line of credit? (IV-3.5)

� � h. Does your proposal indicate evidence of certification and/or membership and compliance with FDIC or NCUSIF rules and regulations? (IV-3.2)

� � i. Does your proposal indicate that you are affiliated with either VISA or MasterCard and Electronic Funds Transfer (EFT) capable using NACHA standards? (IV-3.3)

� � j. Does your proposal indicate that you will meet all Regulation E requirements, including those that may apply specifically to government programs? (IV-3.4)

� � k. Does your proposal indicate that you have a Pennsylvania address for mailing and receiving EPCs and associated information? (IV-3.7)

� � l. Does your proposal include providing customer service in English, Spanish and

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other languages? (IV-3.10) � � m. Does your proposal describe a plan for business continuation and/or recovery as a

result of disaster? (IV-3.11)� � n. Does your proposal indicate that: 1) all Cardholder information and Cardholder

account information created as a result of any Contract that results from this RFP will remain confidential and will not be sold or otherwise shared with any other entity not associated with the Contract or for any purpose other than the execution of the Contract, unless required by law, and 2) the Selected Offeror will not use Cardholder information or Cardholder account information to solicit other business and will ensure Cardholder information and Cardholder account information is protected and kept confidential? (IV-3.6)

� � o. Does your proposal indicate that any material available to the public via the Internet complies with Commonwealth of PA accessibility standards? (IV-3.9)

� � p. Does your proposal indicate a commitment to secure the insurance coverages and letter of credit that will be required of the Selected Offeror upon Contract execution? (IV-3.12, IV-3.13, Appendix F)

� � q. Do you agree that the contents of your proposal will become part of any Contract that may be entered into as a result of this RFP? (I-12)

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APPENDIX E

Sample Confidentiality Agreement I understand that I will or may be exposed to certain confidential data maintained by the Commonwealth of Pennsylvania, Department of Labor and Industry and which was released to my employer, or the following entity to which I have access to confidential records: __________________ This confidential data is described as any record relating to employers, unemployment compensation claimants, workers’ compensation claimants or employment services clients of the Department of Labor and Industry, or as more fully described below: Lists of unemployment compensation claimants and workers’ compensation claimants, addresses, contact information, benefit payments, social security numbers or any other personal data. I understand that I may use the data only in conjunction with certain duties with respect to my employment, as specifically described below: Creating and maintaining EPC accounts for and processing unemployment compensation payments and workers’ compensation indemnity payments to claimants. I understand that I may not discuss with or reveal to anyone, in any manner, any of the information I obtain from any data received from the Department of Labor and Industry, except to other persons also having authorization to this data, and only for purposes of performing my duties as set forth above. I understand that I may not reveal such information to my friends or family, nor use the information for any personal, commercial or political use. I understand that the data is confidential and protected by federal and state laws, and that if I improperly use or reveal this confidential information, I may be subject to any sanctions permissible under law. I understand and agree that I will be liable for any damages resulting from my release of confidential information. I have read this entire statement and understand that the confidential data must be used only for the specific purpose set forth above and that use of this information for any other purpose is strictly prohibited. ___________________________________ ________________________ (signature) (date) ___________________________________ (name – print or type)

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APPENDIX F

IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER ********

LETTER OF CREDIT AMOUNT

US$

ISSUE DATE

EXPIRY DATE

BENEFICIARY: APPLICANT: The Commonwealth of Pennsylvania Agency: Address: GENTLEMEN: WE HEREBY OPEN OUR IRREVOCABLE STANDBY LETTER OF CREDIT IN YOUR FAVOR FOR THE ACCOUNT OF THE ABOVE REFERENCED APPLICANT IN THE AGGREGATE AMOUNT OF US$____________ WHICH IS AVAILABLE BY PAYMENT OF YOUR DRAFT(S), AT SIGHT, DRAWN ON OURSELVES, WHEN ACCOMPANIED BY THE FOLLOWING DOCUMENTS:

1. THE ORIGINAL OF THIS LETTER OF CREDIT. 2. A STATEMENT PURPORTEDLY SIGNED BY AN AUTHORIZED

REPRESENTATIVE OF THE COMMONWEALTH OF PENNSYLVANIA STATING THAT: “THIS DRAW IN THE AMOUNT OF _________ U.S. DOLLARS ($______________) IS DUE TO THE FAILURE OF __________________________________ TO COMPLY WITH THE TERMS AND CONDITIONS OF THE _________________ CONTRACT BETWEEN THE COMMONWEALTH OF PENNSYLVANIA AND _______________________________.

EXCEPT AS STATED HEREIN, THIS UNDERTAKING IS NOT SUBJECT TO ANY CONDITION OR QUALIFICATION. THE OBLIGATION OF THE BANK UNDER THIS LETTER OF CREDIT SHALL BE THE INDIVIDUAL OBLIGATION OF THE BANK, IN NO WAY CONTINGENT UPON REIMBURSEMENT WITH RESPECT THERETO.

THIS IRREVOCABLE LETTER OF CREDIT SETS FORTH IN FULL THE TERMS OF OUR UNDERTAKING. THIS UNDERTAKING SHALL NOT IN ANY WAY BE MODIFIED, AMENDED, AMPLIFIED OR INCORPORATED BY REFERENCE TO ANY DOCUMENT OR CONTRACT REFERRED TO HEREIN.

IT IS A CONDITION OF THIS LETTER OF CREDIT THAT IT SHALL BE DEEMED AUTOMATICALLY EXTENDED WITHOUT WRITTEN AMENDMENT FOR ONE YEAR FROM THE PRESENT OR ANY FUTURE EXPIRY DATE UNLESS AT LEAST SIXTY (60) DAYS PRIOR TO SUCH EXPIRATION DATE, WE NOTIFY YOU IN WRITING AT THE ABOVE ADDRESS VIA OVERNIGHT COURIER THAT WE

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ELECT NOT TO RENEW THIS LETTER OF CREDIT FOR ANY SUCH ADDITIONAL PERIOD(S). NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE EXPIRY DATE SHALL NOT EXTEND BEYOND _______________________.

WE HEREBY AGREE WITH YOU THAT DRAFT(S) DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS CREDIT SHALL BE DULY HONORED IF PRESENTED TOGETHER WITH DOCUMENT(S) AS SPECIFIED ABOVE AND THE ORIGINAL OF THIS CREDIT, AT _________________________________________, ATTN: ________________________, ON OR BEFORE THE ABOVE STATED EXPIRY DATE. DRAFT(S) DRAWN UNDER THIS CREDIT MUST SPECIFICALLY REFERENCE OUR CREDIT NUMBER.

EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN, THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS, ESTABLISHED BY THE INTERNATIONAL CHAMBER OF COMMERCE, AS IN EFFECT ON THE DATE OF ISSUANCE OF THIS CREDIT.

SINCERELY,

_____ AUTHORIZED SIGNATURE

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(04-05) Reference Irrevocable Letter of Credit No.__________

ACKNOWLEDGMENT OF TERMS AND CONDITIONS ON POSTING

LETTER OF CREDIT _____________ (the "Contractor") must provide security to the Department of Labor and Industry of the Commonwealth of Pennsylvania (“L&I”) to cover any potential liability as a result of its selection to administer electronic payment card services for unemployment and workers’ compensation claimants. The Contractor wishes to meet this security requirement by posting an irrevocable letter of credit issued by ______________________ (the "Issuing Bank"). The Contractor hereby acknowledges that the following terms and conditions exist concerning the posting of the letter of credit: 1. The letter of credit must be issued and payable at a branch office of a commercial

bank located in the continental United States, Alaska or Hawaii. 2. The Issuing Bank or its holding company must currently possess a "B/C" or better

rating or a "2.5" or better credit evaluation score by Fitch Ratings or the Issuing Bank must currently possess a CD or long-term issuer credit rating of "BBB" or better by Standard & Poor's.

3. The Contractor must execute a standby trust agreement on a form prescribed by L&I

with a Commonwealth chartered bank and trust company or trust company as defined in § 102 of the Banking Code of 1965 (7 P.S. § 102) or a federally chartered bank or foreign bank with a branch office and trust powers in this Commonwealth.

4. L&I may draw on the letter of credit if it is notified that the letter of credit will not be

renewed and a new letter of credit or other form of security acceptable to L&I is not filed with L&I 15 days prior to the expiration of the letter of credit.

5. L&I may at any time draw on the letter of credit if the Contractor fails to perform its

obligations under its contract with L&I or if it files for bankruptcy or is declared bankrupt or insolvent.

6. L&I may draw on the letter of credit if it notifies the Contractor that the rating of the

issuing bank has fallen below one of the acceptable ratings outlined in Condition 2 and a new letter of credit or other form of security acceptable to L&I is not filed within 45 days after the issuance of the notice.

7. The terms and conditions of this document apply to any subsequent letter of credit

posted in place of the letter of credit which is the subject of this document. The terms and conditions of this document shall extend to and bind the Contractor and its successors and assigns.

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8. The letter of credit is not a valid security instrument until L&I has acknowledged its acceptance in writing.

The Contractor has caused this Acknowledgment to be executed and attested in its corporate name by its duly-constituted officers and its official seal affixed to the Acknowledgment this _____ day of _____________, _____. ______________________________ (Contractor) ATTEST: By: (Seal) Type or Print Name and Title Type or Print Name and Title

no later than - dgsweb.state.pa.us · submitted via email and must be received no later than 1:30...

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