NOTICES
Request for Proposals for Auditor of the Pennsylvania Universal Service Fund; RFP No. 172000017-2
[34 Pa.B. 2663] A. General Information for Contractors
1. Rejection of Proposals
The Commonwealth reserves the right to reject any and all proposals received as a result of this request or to negotiate separately with competing contractors.
2. Incurring Costs
The Commonwealth is not liable for any costs incurred by contractors prior to issuance of a contract.
B. Procurement Description
The Pennsylvania Public Utility Commission (Commission) requests written proposals to serve as a third-party auditor (Auditor) of the Pennsylvania Universal Service Fund (Fund). The Auditor is responsible for auditing the Fund from January 1, 2003, through, and including, December 31, 2003. Following the audit, the Commission requires the Auditor to prepare and submit a report to the Commission and the Fund Administrator, the National Exchange Carrier Association, by July 1, 2004. The audit report should make recommendations regarding the finances of the Fund and should identify undercollections or overcollections experienced by the Fund from January 1, 2003, through December 31, 2003. The role of the Auditor is described in 52 Pa. Code § 63.168 (relating to auditor's duties) as follows:
§ 63.168. Auditor's duties.
(a) An independent external auditor chosen by the Commission will audit the Fund records covering both collections and disbursements for the fiscal year. The costs for conducting audits will be included in the computation of Fund requirements. Thereafter, an audit of the Fund collections and disbursements will be done annually.(b) Following the audit, the Fund auditor will prepare and submit a report to the Commission and the administrator by July 1 of each year. The audit report should make recommendations regarding the finances of the Fund and should identify undercollections or overcollections experienced by the Fund in the previous year.The Commission is seeking to hire an Auditor who will audit the Fund records covering both collections and disbursements from January 1, 2003, through, and including, December 31, 2003.
C. Purpose of the Fund
The Fund is currently intended to reduce and restructure access charges and intraLATA toll rates, and to encourage greater toll competition while enabling carriers to continue to preserve the affordability of local service rates. Rulemaking Re Establishing Universal Service Fund Regulations at 52 Pa. Code §§ 63.161--171, Final Rulemaking Order at L-00000148 (November 29, 2000). The regulations governing administration of the Fund are in 52 Pa. Code Chapter 63, Subchapter L (relating to universal service). They may be accessed along with other Orders and pertinent information regarding the Fund at the Commission's website: www.puc.paonline.com (choose ''Competition and Choice,'' ''Local Telephone Competition,'' ''Universal Service Fund,'' ''Pennsylvania Universal Service Fund'').
D. The Fund and the Administrator
Commission regulations allow for an assessment which is computed annually under 52 Pa. Code § 63.165 (relating to calculation of contributions) at a rate calculated by dividing the contributing telecommunications provider's associated total intrastate end-user telecommunications retail revenues by Statewide total intrastate end-user telecommunications revenues. End-user revenues expressly do not include revenues received from access, resale (toll or local) of unbundled network elements or other services provided which are essentially wholesale in nature. Total end-user revenues shall include all revenues received from subscribers who actually consume the final service unadjusted for any expense or any other purpose.
Nearly 300 companies will contribute monthly to the Fund. These include 35 incumbent local exchange carriers. The rest of contributors are companies selling intrastate toll services and competitive local exchange carriers who are either offering local exchange services or are planning to do so in the near future. Wireless telecommunications carriers do not participate as either recipients or contributors in the Fund. Carriers are not allowed to pass through as a direct surcharge to their customers any contributions made to the Fund.
The Administrator functions as the ''financial hub'' of this system. The Administrator collects the contributions from the individual companies, manages the Fund's cash flow and disburses payments to 31 small rural companies and Sprint/United Fund recipients under the regulations. The Fund assessment rate is set annually by the Commission based on data submitted in annual reports by the Administrator. The Administrator also works with the Fund Auditor.
E. Contract for Services
The successful bidder will negotiate with the Commission a detailed contract that is generally consistent with the standard Commonwealth contract for personal services. The contract will be for a term beginning when the contract is fully executed and ending on September 1, 2004. The contract may be extended for subsequent years upon the written agreement of both parties and upon the same terms as set forth herein. Once selected, the Auditor will be terminated during this term only for good cause.
To the extent that any changes as a result of contract negotiations affect the cost of performing the contract, adjustments to the compensation described in the bid will be negotiated with the winning bidder.
F. Proposal Submissions
An original and five copies of the proposals should be submitted directly to the Evaluation Committee Chairperson, Frank B. Wilmarth, Deputy Chief Counsel, Pennsylvania Public Utility Commission, Law Bureau, P. O. Box 3265, Harrisburg, PA 17105-3265. Proposals should be received by 5 p.m. on May 28, 2004. No late proposals will be considered. The proposal should be broken into three separate parts, two of which should be in separate sealed envelopes marked ''price quotation'' and ''Disadvantaged Business Information,'' respectively.
Part 1--General Information
The first part of each proposal should include a general discussion of the approach the bidder will take and explain how the bidder will meet each requirement. In addition, this part of the bid should identify all individuals who will work on significant tasks and should explain the qualifications of each, as well as how many individuals will likely work on their respective tasks on a monthly basis. A single individual should be identified to serve as Auditor, and that individual's resume should be attached. Resumes for other identified persons with significant responsibility should also be attached.
If the bidder wishes to associate with another organization to provide the required services, the bid should include a separate statement from that organization describing its anticipated role.
In addition, if the bidder, or any of its associates, has an affiliate or representational relationship with a Commission-regulated telecommunications carrier, the bidder must disclose that relationship and explain, in detail, the measures that will be taken to avoid any conflict of interest that may arise as a consequence of this contract. Written documentation demonstrating, as deemed appropriate by the Commission, that measures have been taken to avoid any conflict of interest is required.
Part 2--Cost Information
The second part of the proposal document should be a price quotation, which should not be in the main text of the proposal but rather should be put in a sealed envelope marked ''price quotation'' and kept separate from the rest of the proposal. A cost data sheet should be submitted in this separate sealed envelope and it should include a breakdown of costs. Bidders are free to structure their price offerings in any way they choose.
Failure to submit the cost data sheet in a sealed envelope kept separate and apart from the rest of the proposal will result in automatic rejection of the proposal by the Evaluation Committee (Committee).
Part 3--Disadvantaged Business Information
The Commonwealth 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: (1) Department of General Services (Department), Bureau of Minority and Women Business Opportunities (BMWBO)-certified minority business enterprises (MBEs) and women business enterprises (WBEs) that qualify as small businesses; and (2) United States Small Business Administration-certified 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 businesses in the information technology sales or service business).
Socially disadvantaged businesses are businesses in the United States that the BMWBO determines are owned or controlled by a majority of persons, not limited to members of minority groups, who are subject to racial or ethnic prejudice or cultural bias, but which do not qualify as small businesses. 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 should be directed to the Department of General Services, Bureau of Minority and Women Business Opportunities, Room 502, North Office Building, Harrisburg, PA 17125, (717) 787-6708, fax: (717) 772-0021, Gs-cabdinternet@state.pa.us.
Program information and a database of BMWBO-certified minority and women-owned businesses can be accessed at the Department's website: www.dgs.state.pa.us (PA Keyword Search: BMWBO). The Federal vendor database can be accessed at www.ccr.gov (choose ''Dynamic Small Business Search'' (certified companies are as indicated)).
Information Concerning Small Business in Enterprise Zones. The Commonwealth encourages participation by small businesses, whose primary or headquarters facility are physically located in areas designated by the Commonwealth as designated enterprise zones, as prime contractors, joint ventures and subcontractors/suppliers.
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 businesses in the information technology sales or service business).
There is no database or directory of small business in designated enterprise zones. Information on the location of designated enterprise zones can be obtained by contacting Aldona M. Kartoire, Center for Community Building, Department of Community and Economic Development, 4th Floor Keystone Building, 400 North Front Street, Harrisburg, PA 17120, (717) 720-7409, fax: (717) 787-4088, akartoire@state.pa.us.
To receive credit for being a small disadvantaged business or a socially disadvantaged business, entering into a joint venture agreement with a small disadvantaged business or subcontracting with a small disadvantaged business (including purchasing supplies and/or services through a purchase agreement), a company must include proof of Disadvantaged Business qualification in the Disadvantaged Business portion of the proposal:
* Small disadvantaged business qualifying as a result of MBE/WBE certification from the BMWBO must provide a photocopy of their BMWBO certificate.
* Disadvantaged businesses qualifying as a result of 8(a) certification from the United States Small Business Administration must submit proof of Small Business Administration Certification. The owners of these businesses must also submit proof of United States citizenship.
* All companies claiming small disadvantaged business status, whether as a result of BMWBO certification or Small Business Administration certification as an 8(a) disadvantaged business, must attest to the fact that the business has 100 or fewer employees.
* All companies claiming small disadvantaged business status, whether as a result of BMWBO certification or Small Business Administration certification as an 8(a) disadvantaged business, must submit proof that their gross annual revenues are less than $20 million ($25 million for businesses in the information technology sales or service business). This can be accomplished by including a recent tax or audited financial statement.
Companies claiming status as a socially disadvantaged business must include in the Disadvantaged Business portion 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:
* Be rooted in treatment which the business person has experienced in American society, not in other countries.
* Show prejudice or bias that is chronic and substantial, not fleeting or insignificant.
* Indicate that the businessperson's experience with the racial or ethnic prejudice or cultural bias has negatively impacted on his entry into and/or advancement in the business world.
The BMWBO shall determine whether the contractor has established that a business is socially disadvantaged by clear and convincing evidence.
In addition to these verifications, to receive credit for being a small disadvantaged business or a socially disadvantaged business, this portion of the proposal must include the following:
(1) The name and telephone number of the project (contact) person for the small disadvantaged business or socially disadvantaged business.
(2) The company name, address and telephone number of the prime contact person for each specific small disadvantaged business or socially disadvantaged business included in the proposal. The contractor must specify the small disadvantaged business or socially disadvantaged business to which it is making commitments. The contractor will not receive credit by stating that it will find a small disadvantaged business after the contract is awarded or by listing several companies and stating it will select one later.
(3) The specific work, goods or services the small disadvantaged business or socially disadvantaged business will perform or provide.
(4) The location where the small disadvantaged business or socially disadvantaged business will perform these services.
(5) The timeframe for the small disadvantaged business or socially disadvantaged business to provide or deliver the goods or services.
(6) The amount of capital, if any, the small disadvantaged business or socially disadvantaged business will be expected to provide.
(7) The form and amount of compensation each small disadvantaged business or socially disadvantaged business will receive.
(8) The percent of the total value of services or products purchased/subcontracted under the proposal that will be provided by the small disadvantaged business or socially disadvantaged business.
(9) In the case of a joint venture agreement, a copy of the agreement, signed by all parties, must be included in the Disadvantaged Business portion of the proposal. If subcontracting, a signed subcontract or letter of intent must be included in the Disadvantaged Business portion of the proposal.
(10) Include in the Disadvantaged Business submittal, any and all information concerning the contractor's proposed utilization of small businesses located in a designated enterprise zone.
The Disadvantaged Business portion of the proposal must be clearly identified as Disadvantaged Business information and sealed in an envelope separately from the remainder of the proposal. Only one copy of the Disadvantaged Business section is needed. The dollar value of the commitment to each small disadvantaged business or socially disadvantaged business must be sealed in the same envelope with the Disadvantaged Business portion of the proposal. The selected contractor's Disadvantaged Business commitment amount, name of a Disadvantaged Business and services to be provided, including timeframe for performing services, will be included as a contractual obligation when the contract is executed.
Enterprise Zone Small Business Utilization Response. 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, a company must include the following information in the Disadvantaged Business submittal of the proposal:
* Proof of the location of the business' headquarters (such as a lease, deed or Department of State corporate registration).
* Confirmation of the enterprise zone in which it is located (obtained from the local enterprise zone office).
* Proof of United States citizenship of the owners of the business.
* Certification that the business employs 100 or fewer employees.
* Proof that the business' gross annual revenues are less than $20 million ($25 million for businesses in the information technology sales or service business). This can be accomplished by including a recent tax or audited financial statement.
In addition to these verifications, this portion of the submittal should include the following information:
* The company name, address, name and telephone number of the primary contact person for each enterprise zone small business included in the proposal. The contractor must specify the enterprise zone small business to which it is making commitments. The contractor will not receive credit by stating that it will find an enterprise zone small business after the contract is awarded or by listing several companies and stating it will select one later.
* The specific work, goods or services the enterprise zone small business will perform or provide.
* The location where the enterprise zone small business will perform these services.
* The timeframe of the enterprise zone small business to provide or deliver the goods or services.
* The amount of capital, if any, the enterprise zone small business will be expected to provide.
* The form and amount of compensation each enterprise zone small business will be expected to provide.
* The form and amount of compensation each enterprise zone small business will receive. In the Disadvantaged Business portion of the proposal, provide the estimated dollar value of the contract to each enterprise zone small business.
* The percent of the total value of services or products purchased/subcontracted under the proposal that will be provided by the enterprise zone small business.
* In the case of a joint venture agreement, a copy of the agreement, signed by all parties, must be included in the Disadvantaged Business submittal of the proposal. If subcontracting, a signed subcontract or letter of intent must be included in the Disadvantaged Business submittal of the proposal.
The dollar value of the commitment to each enterprise zone small business must be sealed in the same envelope with the Disadvantaged Business submittal of the proposal. The selected contractor's enterprise zone small business commitment amount, name of enterprise zone small business and services to be provided including timeframe for performing services will be included as a contractual obligation when the contract is executed.
Disadvantaged Business Participation. The following options will be considered as part of the final criteria for selection:
Priority Rank 1. Proposals submitted by small disadvantaged businesses.
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 disadvantaged businesses. Each approach will be evaluated with option number one receiving the greatest value and the succeeding options receiving values in accordance with the previously listed priority ranking.
To the extent that a proposal is submitted by a small disadvantaged business or a socially disadvantaged business and the small disadvantaged business or socially disadvantaged business cannot enter into subcontract arrangements for more than 40% of the total estimated dollar amount of the contract to other contractors, the Disadvantaged Business participation scoring shall be proportionally lower for that proposal.
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.
Priority Rank 4. Proposals with no enterprise zone small business utilization shall receive no points under this criterion.
To the extent that a proposal is submitted as a prime contractor by an enterprise zone small business, the enterprise zone small business cannot enter into contract or subcontract arrangements for more than 40% of the total estimated dollar amount of the contract.
Contracts containing disadvantaged business participation and/or enterprise zone small business participation must also include a provision requiring the contractor to meet and maintain those commitments made to disadvantaged businesses and/or enterprise zone small businesses at the time of the proposal submittal or contract negotiation, unless a change in the commitment is approved by the BMWBO. Contracts containing disadvantaged business 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% of the subcontract or small disadvantaged business/enterprise zone small business participation portion of the joint venture.
Commitments to disadvantaged businesses and/or enterprise zone small businesses made at the time of the proposal submittal or contract negotiation must be maintained throughout the term of the contract. A proposed change must be submitted to the BMWBO, which will make a recommendation as to a course of action to the contracting officer. 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 contractor shall complete the Prime Contractor's Quarterly Utilization Report (or similar type of document containing the same information) and submit it to the contracting officer of the agency that awarded the contract and the BMWBO within 10 working days at the end of each quarter the contract is in force. If there was no activity, the form must also be completed stating ''No activity in this quarter.'' This information will be used to determine the actual dollar amount paid to small disadvantaged business and/or enterprise zone small business subcontractors and suppliers and small disadvantaged businesses and/or enterprise zone small businesses involved in joint ventures. Also, it is a record of fulfillment of the commitment the firm made and for which it received disadvantaged business and enterprise zone small business points.
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 business status or entitle a proposer to receive credit for disadvantaged business utilization.
G. Pre-Proposal Conference
There will not be a pre-proposal conference. However, potential bidders may seek answers to questions by submitting questions in writing to Frank B. Wilmarth, Deputy Chief Counsel, Pennsylvania Public Utility Commission, Commonwealth Keystone Building, P. O. Box 3265, Harrisburg, PA 17105, (717) 772-8841, fax: (717) 783-3458, fwilmarth@state.pa.us. Questions regarding this Request for Proposals (RFP) must be received before May 28, 2004. Bidders can access prior audit reports at the ''Pennsylvania Universal Service Fund'' portion of the Commission's website.
H. Proposal Review
1. Evaluation Procedure
The Committee (which consists of at least five individuals with appropriate technical and managerial experience) will perform a preliminary evaluation based upon the criteria in this RFP and will score the technical portion of the proposals using an evaluation score sheet. Proposals that meet the RFP requirements are ranked in order of merit. A maximum point value for each criterion and a total point value for all criteria will have been established by the Committee before opening the proposals.
The Committee will review proposals according to four major criteria:
* Price
Price will be a principal consideration. Since bids may include one or more segments that are being bid at a monthly or otherwise variable price, bids may not be directly comparable in terms of a single dollar amount. However, the Commission will consider all of the fixed and variable prices contained in the bid in evaluating it. Compensation paid to the Auditor will be paid from the Fund, and the Commission will pay no compensation.
* Quality of Performance
The bidder's expected quality of performance will be the second principal consideration. Within this category, the Commission will consider the bidder's understanding of the duties of the Fund Auditor, the bidder's probable success in discharging the duties of Auditor and the bidder's prior experience with auditing other similar funds. The Commission will also consider the quality of each person expected to work, as well as the number of hours each person is expected to work, and on what specific tasks.
* Neutrality
The Commission is seeking a neutral, independent third-party. Independence from affiliated relationships with any telecommunications carriers is preferred. If the bidder, or any of its associates, has an affiliate or representational relationship with a Commission-regulated telecommunications carrier, the bidder must disclose that relationship and explain, in detail, the measures that will be taken to avoid any conflict of interest that may arise as a consequence of this contract.
* Disadvantaged Business Status
2. Best and Final Offers
The Commission will disqualify a bidder who the Commission believes cannot be expected to perform reliably as Auditor.
(a) Discussions and negotiations may be conducted with offerors for the purpose of obtaining best and final offers.
(1) Discussions are limited to responsible offerors. Responsible offerors are offerors that have submitted responsive proposals and possess the capability to fully perform the contract requirements in all respects and the integrity and reliability which assure good faith performance.
(2) In conducting these discussions and negotiations, there shall be no disclosure of any information derived from proposals submitted by competing offerors.
(3) Offerors may be given the opportunity to revise their proposals.
(4) It is imperative that offerors be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals.
(b) Procedure. The Committee chairperson will send a letter to each offeror inviting the offerors to discuss the technical and cost changes to the proposal desired by the agency. A list of the changes will be appended to each letter. The list should be based on the suggested changes by Committee members as documented during the tentative evaluation.
(1) The Committee chairperson or a designated member of the Committee will conduct the discussions and negotiations. All Committee members should be present and actively assist the negotiator. Discussions and negotiations involving Disadvantaged Business participation will be conducted by the BMWBO. The discussions/negotiations should be free, full and open. When appropriate, the offeror should be given an explanation of the agency's reason for a requested change. This is especially true when the offeror appears reluctant to accept the change. However, it is not expected that offerors will accept the agency's position on all issues. After discussions/negotiations of each issue, the Committee chairperson or designee should state the agreement reached on that issue. The agreement need not be precisely what either the agency or the offeror are willing to accept should a contract ensue. The discussions/negotiations should be tape recorded, if convenient. If not, a Committee member or a stenographer should record the substance of the agreement.
(2) At the conclusion of the discussions/negotiations, the contractor will be asked to confirm the agreements reached, in writing, in the form of formal amendments to its proposal.
3. Final Evaluation
The Committee will rank the offerors in descending order according to the total score assigned to each based upon the final Committee scores. The Committee recommendation and all working papers will then be forwarded to the Commission's Law Bureau and the Bureau of Administrative Services to ensure compliance with the Department's Contractor Responsibility Program (Management Directive 215.9) (66 Pa.C.S. § 501 et seq.).
J. Selection
The Commission will select for contract negotiation the offeror whose proposal is determined to be the most advantageous and notify that contractor in writing. The Commission will then notify the selected and nonselected offerors of the selection for contract negotiation. The Commission may hold a debriefing conference if it is requested by the nonselected offerors.
K. Negotiations with the Selected Offeror
Post-selection negotiations will be conducted by a negotiation team (consisting of individuals on the Committee or other individuals with technical, contracting, fiscal and legal expertise). The purpose of the negotiations is to ensure a clear understanding of the work statement, to reach an agreement on the inclusion of the contract provisions, to reach an agreement on the type of contract and to determine a fair and reasonable price or reasonable cost estimate.
JAMES J. MCNULTY,
Secretary
[Pa.B. Doc. No. 04-882. Filed for public inspection May 14, 2004, 9:00 a.m.]
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